"First Ready, First Connected” approach to GB grid connections to be applied to re-order existing connections queue

National Grid Electricity System Operator (NGESO) has published proposals to reform the grid connections process, which will have significant impacts on the existing connections queue and could be in place by January 2025. These proposals form part of NGESO's broader connections reforms but go further in applying the reforms retrospectively to projects which have already applied and those with existing connection dates. NGESO's analysis suggests the new proposals could halve the size of the queue, which would enable earlier connection dates for viable projects which can meet the January 2025 deadline but result in other projects being delayed.

The recent proposals build on the reforms announced in NGESO's Final Recommendations Report in December 2023 and would introduce a "First Ready, First Connected" two-gate process (referred to as TMO4+) for all projects in the existing queue and new applicants for generation, interconnection and demand connections (or significant Modification Applications), both onshore and offshore.

For existing development and construction phase projects, it will be essential to meet the Gate 2 criteria by the end of this year to be certain that they will retain, or be able to request an acceleration to, their current connections date. This race to meet the criteria and obtain the earliest firm connection dates will favour projects which are already more advanced, as intended by NGESO, but could also favour projects which can deploy quicker than others e.g. where there are fewer land rights to obtain or smaller projects where less consultation is required prior to submission of a planning application.

Projects which narrowly miss the end-of-year deadline may face uncertainty as to their connection date for a number of months until the next batch of Gate 2 assessments takes place (although NGESO intends to make data available about how the queue and associated connection dates are developing to help reduce uncertainty).

Further details as to the Gate 2 criteria are needed in short order to enable projects to work towards meeting the criteria by the year-end. NGESO state that the Gate 2 criteria will be developed though the code modification process but have indicated that the criteria are likely to require a planning application to be submitted within a specified time after signing the Gate 2 offer, not before. NGESO have also raised the possibility that the requirements may be different for different technologies e.g. securing an agreement for lease with the Crown Estate will be sufficient for offshore wind.

Going forward, the proposals are expected to result in a reduction to overall connection times which will benefit viable projects but projects will need to manage the uncertainty of not having a firm connection date until much later in a project's development than is currently the case.

Consideration will also need to be given as to how the new process will interact with other time-sensitive processes, such as the Crown Estate seabed leasing processes, the Capacity Market regime, Network Services Procurement (Pathfinders) and competitively appointed transmission owner and OFTO processes, and how it will tie-in with other network reforms, such as the introduction of the Strategic Spatial Energy Plan.

Implementation of the proposals will require code modifications and licence changes. NGESO will be engaging with stakeholders on the proposals in May 2024, with formal consultation through the code modification process in the summer.

If you would like to understand what these proposals mean for you or your business, please do not hesitate to get in touch.