Ambitious package of connections reform actions set out

The National Energy System Operator (NESO) has submitted a package of ambitious connections reform actions to Ofgem for approval. If approved, these reforms will shift the connections process to prioritise project readiness and strategic alignment with the Government’s Clean Power Action Plan, enforcing new delivery requirements and eliminating stalled projects to make way for genuine clean power projects by 2030 and beyond.

How will our proposals accelerate the connections Great Britain needs?

Connections Reform will offer faster connections for viable projects aligned to strategic energy plans, a more coordinated and efficient network design that benefits customers and consumers, and a streamlined process that effectively supports the transition to net zero.

Pending Ofgem approval, NESO’s proposed reforms aim to address the expanding connections queue, which currently includes over 750GW of projects— more than twice the amount needed to achieve clean power by 2030 or net zero by 2050. These reforms are part of broader efforts to reduce the connection delay for projects from five years to just six months.

How industry feedback has shaped our proposals

Our proposals are the culmination of extensive industry consultations, with 172 responses on TMO4+ and 154 on the methodologies. The feedback received from industry has helped us shape a new process, which helps collectively shape a successful new process that meets the needs of industry and supports Great Britain’s strategic goals.

Departing from the previous regime

NESO’s progress towards finalising the design, subject to Ofgem approval, brings with it the need to consider the transition to a new regime of managing grid connections.  Early in the New Year, NESO will work with the energy regulator to understand what the appropriate form for a transitional period should be, giving the wider industry clarity as soon as possible.

Financial Instrument

During our consultation process, NESO heard suggestions that introducing a revised financial instrument into the application process could help with delivering a more efficient, strategically aligned project pipeline. NESO received 132 responses from a diverse range of industry representatives, including developers, TOs, DNOs, and community energy-related organisations. NESO has carefully reviewed all responses and will consider all suggestions before any proposal is developed and submitted to Ofgem.

What’s next?

Ofgem will deliberate on our proposals and return their decision in Q1 2025.  In Q2 2025 the evidence submission window will open, subject to Ofgem approval, where existing projects in the connections queue will be invited to submit evidence to the ‘Gate 2 to Whole Queue’ process - a one-off exercise, in which all existing projects in the connections queue will be assessed against set criteria and be provided with either a firm “Gate 2” offer, or a Gate 1 offer, with an indicative connection location and date.

Matt Vickers, Director of Connections Reform, NESO  

“Completing this stage of the process in our programme of Connections Reforms is a critical moment. I'm delighted to be able to provide this important update to industry as we pass this package of connections reform actions for Ofgem to consider. “

“We are committed to providing a new consistent process for the projects needed for the delivery of clean power by 2030 and beyond and I would like to thank everyone who has engaged with us for their thoughtful and considered contributions.”

“We will continue to work closely and transparently with industry, Government Ofgem and network companies throughout this process to help ensure a smooth transition to the new connections regime in 2025.”

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