NESO makes ‘disruptive but necessary’ changes to grid connection policy

This initiative is designed to address existing inefficiencies, most particularly the fact that queue capacity increased by almost 200GW in 2024 alone, and align with the UK’s strategic energy goals, particularly the government’s Clean Power 2030 Action Plan (138 pages/68.2 MB).

“A significant aspect of the Connections Reform is the introduction of gating criteria for connections to the transmission system,” said Ronan Lambe, renewable energy expert at Pinsent Masons. This new approach will replace the existing “first come, first served” model with a more strategic “first ready and needed, first connected” system. The implementation of these gating criteria will result in a reordering of the current connection queue, prioritising projects that are considered most viable and necessary.

The Connections Reform documentation includes criteria which must be satisfied to obtain a ‘Gate 2 Offer’, which will allocate confirmed connection dates, connection points and queue positions to a project. To secure a Gate 2 offer, projects must meet specific criteria. These criteria are divided into two categories – “readiness” and “strategic alignment”. For a project to be considered “ready”, it must hold land rights or, if following the development consent order (DCO) process, have submitted a validated application for planning consent.

Additionally, the project must satisfy one of a number of strategic alignment criteria, being (i) eligibility for relevant ‘protections’ - for instance due to proximity of connection date or significant project progression, including holding a contact for difference or capacity market contract; (ii) alignment to the capacities in the government’s Clean Power 2030 Action Plan; (iii) being designated as described in NESO’s project designation methodology or (iv) being a project which is not within the scope of the Clean Power 2030 Action Plan but of a technology type not specified in the table in the plan. Transmission connected demand which has satisfied the ‘readiness’ criteria will be deemed to meet the alignment criteria.

Lambe said: “The timing of the Connections Reform is a critical aspect, and certain details remain unclear. While reform of the grid connection queue is clearly imperative, industry needs certainty as when aspects of the reforms will be implemented. While Ofgem approval of the methodologies behind the reforms remains to be received, the sooner that NESO is able to communicate when developers will be able to submit Gate 2 declarations and projects will start receiving Gate 1 offers, the better.”

NESO has announced a temporary pause on all transmission connection applications, effective from 29 January until the first new application window, expected to open in November. During this period NESO will not accept or process any new transmission applications. This pause is intended to allow for the implementation of the new gating criteria and the reordering of the connection queue.

Pinsent Masons are running a webinar on 5 February following the major reform announcement.