Working together to deliver faster, smarter grid connections

Nathan Macwhinnie
Deputy Director - Strategic Planning and Connections
Publication type:
Blog
Publication date:
Topic:
Electricity transmission,
Electricity distribution,
National Energy System Operator (NESO)
Subtopic:
Connections

As I take over from the excellent work of my colleague Jack Presley Abbott, I'm looking forward to helping tackle one of the biggest opportunities and challenges facing the energy sector today: planning the system and securing the connections we need to support economic growth, energy security and net zero. Jack’s leadership has been instrumental in the progress we’ve made with this. He leaves behind strong foundations on which we can continue to build.

This blog post is an opportunity to share progress, highlight major priorities and continue an open, productive conversation with everyone involved in connections reform.

A new forum for honest conversations 

An important development in recent months has been the launch of our Connections Investor Delivery Engagement Forum. The purpose of the forum is simple: to create a regular space where investors, developers, NESO and network companies can engage directly with government and Ofgem on the realities of implementing connections reform. 

We've heard strong, constructive feedback at the first session, and that's exactly what we hoped for. The message from industry is clear: progress is being made, but there is still more to do. 

It is important that these discussions lead to action. We expect NESO and network companies to listen carefully and respond to the issues raised. For our part, we'll continue to hold delivery partners to account through our Connections Governance arrangements.  

At the meeting itself, amongst other topics we discussed the issues of rising connections costs, expiry of planning consents and knock on impacts on connection applications, and how the process should treat co-located sites. We will share more in our regular post-meeting readout, so stakeholders can see the key themes and actions emerging from the discussions. 

What we also heard loud and clear through the recent review of Ofgem by DESNZ is that we need to be more proactive as a regulator, and we need to have a major focus on growth, as one of our three legally binding duties, alongside consumer protection and the net zero mandate.  It is clear things are moving in the right direction, but we also know we can go further and faster. That's why these conversations matter. The openness, honesty and willingness to engage have been encouraging, and we're committed to ensuring stakeholders continue to have a direct route to raise issues and influence improvements. 

We're planning to hold our new engagement forum every month. We are already compiling agenda items for next month’s edition.  

Connections reform is working 

The connections queue remains significant, which reflects the enormous demand to connect new generation, storage and large demand projects to the network. However, the connection reforms made a tangible difference, with the connections queue now less than half the size of the queue before queue formation. 
With over 750 offers having been issued to projects in the new queue so far, it's important to recognise the progress that has been achieved so far through the collective efforts of industry, NESO, network companies and developers. Progress is being made but, there is still a way to go, with challenges already having been identified and resolved through the current offer process. We stand ready to support the network companies and NESO to ensure the timely delivery of connection offers for the remaining projects in the queue.

Demand connections: making sure the system works for everyone 

Alongside this progress being made on connections reform, the rapid growth in demand connections, particularly from data centres, presents both an opportunity and a challenge. 

Data centres are critical to future economic growth, innovation and digital infrastructure. But where non-viable applications use up network capacity without making tangible progress, they can prevent viable projects from securing the connections they need. That's why we're supporting measures such as data centre commitment fees and other proposals designed to encourage serious, deliverable projects while discouraging speculative behaviour. These are not decisions we take lightly, but they are necessary if we are to make sure that available network capacity is used efficiently and fairly. 

At the same time, we're laying the foundations for developers and data centre operators to take greater ownership of delivery. We believe this can create a more responsive and efficient process, giving customers more control over outcomes while helping projects progress more quickly. 

Flexibility will also be an increasingly important part of the solution. Where data centres can incorporate flexibility into their operating models, everyone stands to benefit. It can help maximise network capacity, reduce costs and support faster access to connections. However, we continue to hear clear and consistent feedback from developers that network company performance must improve. Stakeholders tell us that delays can occur too often and that there are insufficient consequences when delivery milestones are missed. 

We are listening carefully to these concerns. Delivering meaningful improvements will require stronger incentives, greater accountability and clearer expectations across the entire connections process. This is a central theme of our ongoing work and a crucial factor behind the end-to-end review. 
We also recognise the importance of a strategic framework for data centres. As demand continues to grow, a clear strategic plan from government will play an important role in helping inform future network investment, planning decisions and the efficient allocation of resources. 

Ultimately, our objective is straightforward: support economic growth, protect consumers and make sure the energy system can deliver the UK's net zero ambitions. 

End-to-end review: improving the whole connections journey 

Connections reform alone will not solve every challenge facing customers. That's why we remain fully committed to strengthening the regulatory framework around both network companies and NESO. We need the right incentives and obligations in place alongside wider connections reform to ensure customers see the outcomes they expect. 

Over recent months we've been running workshops across a range of themes as part of the end-to-end review. I'm pleased with the level of engagement we've seen from stakeholders across the sector. The discussions have been thoughtful, constructive and evidence-led, helping us build a stronger understanding of where improvements are most needed.

I'd like to thank everyone who has taken part and shared their experiences. The quality of the feedback we've received is helping us develop a robust evidence base and ensuring that future decisions are informed by practical, real-world experience. Your input is directly shaping our thinking, and we plan to set out our response later this summer. That will include decisions in some areas, alongside proposals for further consultation where additional engagement is needed. 

Looking ahead

The scale of the challenge we face is significant, but so too is the opportunity. 

The reforms underway represent one of the most important changes to the connections framework in decades. Success will depend on continued collaboration between government, Ofgem, NESO, network companies, developers, investors and customers. 

We're committed to listening, acting on feedback and maintaining a relentless focus on delivery. We welcome your continued engagement and partnership and look forward to working collaboratively over the months ahead.