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Home Science & Environment Environmental Policies

Grid connection reforms: What they mean for UK developers

January 22, 2025
in Environmental Policies
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Significant changes to the UK’s grid connection process under the Clean Power 2030 Action Plan (CP30) will impact project timelines and readiness criteria, posing both challenges and opportunities for developers (words: Vattenfall).

The UK’s push towards clean power by 2030 is entering a transformative phase with the implementation of CP30. Recently published by the Department for Energy Security and Net Zero (DESNZ), the plan outlines reforms aimed at streamlining the grid connection process to meet growing demand for renewable energy. These changes, scheduled for January to May 2025, are designed to accelerate connections and support renewable energy projects.

“The Clean Power 2030 Action Plan represents a pivotal moment for the UK’s energy transition,” says Stewart Dawson, Managing Director at Vattenfall IDNO. “These reforms are necessary to enable the rapid scaling of renewable energy projects, but they also require developers to adapt quickly. By working together, we can overcome these challenges and deliver clean power for the UK.”

The CP30 Action Plan sets ambitious targets: doubling onshore wind capacity, tripling offshore wind and solar capacity, increasing battery storage fivefold, and doubling long-duration electricity storage. These goals highlight the urgent need for efficient grid connections as the UK aims for 95% low-carbon energy generation by 2030, with just 5% of gas used for balancing.

A shift to ‘ready first, connected first’
A key reform replaces the “first come, first served” system with a “ready first, connected first” approach. This prioritises projects that demonstrate readiness, such as securing planning permissions and technical designs, thereby discouraging speculative applications and reducing delays. Projects will now be categorised by their planning and site readiness, and new applications must include detailed technical documentation, including Single Line Diagrams (SLDs) and site layout plans.

Existing grid connection offers will receive preferential treatment, with readiness criteria (such as outline planning consent) required for projects connected by 2027. This also applies to demand-only projects, particularly those connecting to the transmission network.

“This transitional arrangement is critical to delivering the connections reforms we will implement later this year, subject to Ofgem approval,” said Matt Vickers, Director of Connections Reform at the National Energy System Operator (NESO). “Our reforms prioritise projects ready to progress, ensuring we meet the 2030 targets for clean power.”

Opportunities and challenges for developers
The reforms present opportunities to reduce connection delays and prioritise well-prepared projects. However, the stringent readiness requirements will demand careful planning and close collaboration. Developers must now provide Letters of Authority (LoA), Heads of Terms (HoT), detailed engineering designs, preliminary project timelines, and SLDs.

Independent Distribution Network Operators (IDNOs) play a crucial role in helping developers meet these requirements. Their expertise in grid applications and readiness planning ensures projects can secure connection slots and minimise delays. IDNOs also offer financial incentives, such as Asset Adoption Value payments, and flexible connection agreements, allowing developers to connect in stages or implement interim solutions while permanent capacity is finalised. Among the leaders in this field is Vattenfall IDNO, recognised for supporting developers in achieving their goals within the framework of these new reforms.

The grid connection reforms mark a significant turning point for the UK’s energy sector. While challenges remain, the reforms provide an opportunity for innovation and collaboration. Developers who adapt to these changes, form strong partnerships with IDNOs, and strategically navigate the readiness criteria will not only succeed but also contribute to building a cleaner, more resilient energy future for the UK.

Tags: connectiondevelopersgridreforms
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