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Finance

Posted By Global Banking and Finance Review

Posted on January 15, 2025

UK grid operator pauses connection applications to allow reform

LONDON (Reuters) - Britain's National Energy System Operator (NESO) will suspend the applications process for new grid connections from later this month to allow it to focus on reforms, it said on Wednesday.

In November, Britain's energy market regulator Ofgem proposed new regulations for grid companies to try to tackle the backlog of renewables projects awaiting connections and to ensure the mix of energy technologies was aligned with Britain's future energy needs.

Matt Vickers, director of connections reform at the NESO, said the pause from Jan. 29 would allow time "to work with colleagues across the network companies to prepare for the new processes we need to bring forward the electricity projects needed for the delivery of clean power by 2030 and beyond".

The statement said the number of applications had grown so much over the last year it was no longer possible to deliver reforms in parallel with the existing connections process.

However, demand projects directly connecting to the national electricity transmission network (typically large industrial and commercial units), would be exempt from the temporary halt.

In 2023/24, NESO received more than 1,700 applications, and more projects are already in the queue than is required for the energy system in 2030 or even 2050.

(Reporting by Nina Chestney; editing by Barbara Lewis)

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