The energy watchdog for Great Britain will label the decade-long wait to connect low-carbon projects to the electricity grid as “unacceptable”, amid tensions over a “blame game” for a mounting backlog of green power projects.
Jonathan Brearley, the chief executive of Ofgem, has written to energy bosses to warn that the current system, whereby energy projects queue for their connection, could be replaced by new methods to match power generation with demand.
He will use his appearance at an energy conference to criticise a “legacy of stalled, unviable and often highly speculative ‘zombie’ projects blocking ready-to-go solar, wind and other renewable schemes stuck behind them”.
Renewable energy developers have accused the government of a “lack of vision” in planning the grid. They have expressed concerns that wait times of up to 15 years have made it difficult to attract investment as the UK competes with the $369bn (£295bn) US package of climate subsidies.
Officials are attempting to rebalance Britain’s energy network away from fossil fuels in favour of renewables, with a target of decarbonising the UK power system by 2035.
Separately on Tuesday, National Grid’s electricity system operator (ESO) published a plan to speed up connecting to the grid. It involves allowing developers to leave the queue without incurring a financial penalty, creating new contracts related to how quickly a project has progressed and allowing sites that store electricity to connect faster.
The ESO said 70% of the pipeline of projects that have a connection date after 2026 would be able to connect between two and 10 years earlier because of the changes.
Tensions have emerged in recent weeks over who is to blame for the delays. In an interview with the Observer, the National Grid chief executive, John Pettigrew, called for his company to be allowed to do “anticipatory investment”to help renewable projects’ connections, rather than wait for a grid connection agreement to be signed on a specific project.
However, Brearley will counter this by telling the Utility Week Live conference in Birmingham that Ofgem has “removed all barriers to National Grid investing in grid expansion and upgrades ahead of applications” through its “invest and connect policy”.
Ofgem announced a pilot of this model in December, accelerating £20bn investment in connecting up 26 offshore wind projects. It has launched a consultation to extend this approach to other energy technologies.
However, the Ofgem chief will attempt to quell tensions over the situation. “Too often there is blame game between industry, generators, network operators and government. This needs to stop. We all need to take joint responsibility for getting the connections regime sorted once and for all,” he will say.
Ofgem estimated that between 60% and 70% of high-voltage transmission schemes never connect to the grid. It found more than half of those projects in the queue had to wait five years or more to be offered a connection date.
Brearley will say: “Polite queueing may be in the very best of British traditions – but the first come, first served connections regime is not fit for purpose if we are to end fossil fuel power within 12 years. It is unacceptable energy projects are blocking great low-carbon schemes from plugging into the transmission network – with connection times of a decade or more.
“Poor connection speeds risk undermining us creating a net zero electricity system, protecting consumers from high and volatile gas prices and ultimately securing energy security and independence.”
On Monday, National Grid set out its plan to hit the 2035 target, which included planning reforms, a shift away from the “first come, first served” connection system, and providing benefits to local people in return for hosting renewable projects.
Pettigrew has urged the public not to block efforts to connect up low-carbon projects.
