Grid connections for businesses that will deliver clean energy are set to be prioritised in the UK.
‘Zombie’ projects will no longer hold up the queue for grid connections so that the government can prioritise businesses that will drive growth and deliver energy security.
Companies are currently waiting up to 15 years to be connected to the grid, leaving promising businesses ‘grid-locked’, and over the last five years, the grid connection queue has grown tenfold.
The reforms will help unlock £40bn a year of mainly private investment, growing the economy, creating jobs and raising living standards as a key part of the UK Government’s Plan for Change.
Over £43bn has been invested in the UK’s clean energy industry
This builds on the latest figures showing that since July, the clean energy industry is now booming in Britain, with £43.7bn of private investment being announced into the UK’s clean energy industries.
Energy Secretary Ed Miliband said: “In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain.”
Lack of access to grid connections is holding back investment
However, lack of access to grid connections has been a significant factor holding back new investment in UK industries.
The plan comes after the Prime Minister has said that a new era of global insecurity means that the government must go further and faster in reshaping the economy and that this requires a new muscular industrial policy that supports British industry to forge ahead.
Under the new changes, industries of the future, from data centres and AI to wind and solar projects, will be accelerated for grid connections.
That means deprioritising those projects that are not ready or not aligned with strategic plans.
New commitments to investing in the UK have topped £38bn since July 2024 for data centres alone, but grid access is the single biggest challenge facing these projects.
“Too many companies are facing gridlock because they cannot get the clean energy they need to drive growth and create jobs,” Miliband said.
“These changes will axe ‘zombie’ projects and cut the time it takes to get high-growth firms online while also fast-tracking connections for companies delivering homegrown power and energy security.”
Growing the economy through clean energy projects
Today’s grid access reforms will help fast-track projects to generate homegrown, renewable electricity into homes and businesses, building an energy system that can bring down bills for good.
Delivering these reforms will help unleash £40bn a year of mainly private investment in homegrown clean power projects and infrastructure across the country, creating good jobs across the country, including engineers, welders and construction workers.
By taking a strategic, planned approach, the changes will remove the need for tens of billions of pounds of unnecessary grid reinforcement, saving billpayers £5bn that would have been funded through charges on bills.
Kayte O’Neill, Chief Operating Officer, National Energy System Operator, stated: “Reforming the grid connections process is a key enabler for delivering Clean Power by 2030 and will drive economic growth for Great Britain.
“Today’s milestone reflects the close collaboration across the energy industry with support from the government and Ofgem.”