For several years a slow-moving queue of energy projects – roughly 540GW across transmission and distribution – have been waiting to connect to the UK's electricity grid. And of those projects, 84GW are unlikely to ever go ahead.
Outdated regulation has meant that unviable projects and speculative applications hold up the queue and leave shovel-ready energy projects, which would support the UK's transition to net zero, waiting several years for a viable grid connection. If unviable projects are removed from the queue more projects that require no upgrades could connect in 18–24 months rather than several years.
National Grid's connections reform initiative is overhauling the grid connection process allowing connection dates for viable projects to be accelerated and unviable projects to be removed from the queue. The reforms are extensive, encompassing short and longer-term timescales. Some of the more notable reforms include:
The old system allowed people to submit and secure grid connections for projects that did not have endorsement from landowners. This blocked and delayed legitimate projects. To unblock that grid capacity, developers had to pay for new infrastructure upgrades. This not only drove up costs but added significant delays to the grid connection queue.
With National Grid's reforms, this practice will come to an end. In 2024 all developers will be required to meet contractual milestones or risk having their contract terminated. Of course, some projects face genuine delays and there will be a process to support those projects. However, in the next 18–24 months we can expect to see tens of gigawatts of grid connection agreements being terminated, which may come as a shock to some landowners.
For landowners who have partnered with developers who work closely with National Grid and distribution network operators and who understand the grid network policies, these reforms could be positive. For projects that are not progressing through planning, or where a developer has not made the progress they suggested, their wind, solar or energy storage projects are likely to be removed from the queue.
This opens the connection for the next in line, potentially bringing their connection date to the grid forward by as much as six years. I expect this will be common across the UK going forward. Developers in this position can start getting their construction teams on site.
For landowners working with RES, the reforms are positive. They will mean more realistic connection timescales and increased project certainty. Our approach to grid connections has always been to submit applications for land on which we fully intend to develop a renewable energy project and where we already have the landowner's engagement.
Ultimately, this will allow well-managed projects to be connected earlier and for landowners to reap the benefit of their diversification plans much sooner. Overall, the reforms will bring greater transparency to all landowners and for most, greater confidence. However, the changes are complex, and the onus will be on developers to keep their landowning stakeholders informed about next steps.
Photographer: Keith Arkins
26 June | 08:00–17:00 BST | Royal Agricultural University, Cirencester
RICS rural conference 2024 is of interest to those working in the rural sector, from farmers, landowners, land managers and surveyors, to rural property valuers and environmental professionals.
This year's event will cover updates on carbon markets, biodiversity net gain, and geospatial data. Find out the latest on DEFRA's funding and the Rock Review.
In addition, speakers from OFWAT and water companies will showcase examples of how they are dealing with challenges in the water sector and what more needs to be done.
Case studies from those working in the rural sector will offer practical solutions to rural professionals and there will be plenty of opportunity to network with your peers.
LAND JOURNAL
Fiona Mannix and Mark Sanders MRICS 03 April 2024
LAND JOURNAL
Dr Gregory Borne MRICS 15 March 2024