A new poll1 of energy experts conducted by Cornwall Insight and law firm Weightmans, shows 75% of respondents think being able to get a timely grid connection is the biggest challenge to the rollout of renewables in the UK (Figure 1).
The poll, which included input from experts across the energy sector including investors, consultants, researchers, energy transmission and distribution companies, and renewable energy operators, is highlighted in a new report titled ‘Hurdling to Net Zero’, a collaboration between Cornwall Insight and Weightmans. Difficulty getting on the grid has been a big talking point within the energy industry, with Ofgem just this week publishing a letter outlining its vision for reform of the energy connection regulation framework.
The scale of the problem is highlighted by National Grid Electricity Transmission’s Research Assistant tool,2 where none of the listed sites are offering transmission network connection dates before 2033.
Not only are new projects facing significant delays to access a grid connection, but even those projects already in the queue are seeing minimal progress. Analysis of Cornwall Insight’s Renewables Pipeline Tracker indicates that more than 60% of projects in the pipeline did not see any change in their developmental status between 2018 and 2023 (Figure 2).
Over the past year the Electricity System Operator (ESO), the government, and Ofgem have renewed their focus on delivering measures which could help overcome the barriers to grid connection delays. Primary amongst these is the Connections Action Plan (CAP) from the previous government and Ofgem, announced in November 2023. A series of key actions are set out under the CAP: including, raising energy requirements, removing stalled projects, better utilising existing capacity, better allocating network capacity, improving data and processes and developing long term connections process models.
Market experts have responded fairly positively to the connections process reforms, and many are hopeful that the new government may accelerate the changes, making the long journey to the grid smoother. However, there are also concerns around resourcing and the speed at which these reforms can actually deliver changes in grid connections.
Figure 1: Responses to Cornwall Insight and Weightmans’ renewables poll of energy experts
Source: Cornwall Insight
Figure 2: Status of renewables projects 2018-23
Dr Matthew Chadwick, Lead Analyst at Cornwall Insight, and author of the ‘Hurdling to Net Zero’ report said:
“While there are more than enough renewable projects in the pipeline to reach our decarbonisation objectives, there are multiple challenges to ensuring these projects come online in time to meet the target of a 2030 net decarbonised power system. Chief among these challenges is grid connections.
“Viable projects are being delayed by others that are stalled or speculative, leaving ready-to-connect projects stuck behind those unlikely to progress.
“Efforts by various stakeholders aim to accelerate connections and maximise the available renewable capacity. There have been positive signs from the new government that changes to the system, from planning consent changes to prioritising shovel ready projects are on the way and Ofgem’s letter this week reaffirms the appetite for progress. However, there are concerns that current reforms may not go far enough or take effect fast enough. What’s clear is that without a more streamlined grid connection process, the 2030 targets will be out of reach."
Nick Fothergill, partner at Weightmans LLP, said:
"Unlocking the UK's renewable energy potential has never been more pressing. Progress has been made in building a significant pipeline of renewable energy projects, but it's delivering that pipeline that will make the difference - and is therefore where the focus needs to now lie.
"This report gives a real-life snapshot of the challenge ahead, from those on the front line of delivering this change. Combine this with our national energy team's expertise in navigating regulatory frameworks, and deep understanding of all sorts of decarbonisation projects from energy storage to energy generation, we're ideally placed to support developers and investors to translate this pipeline into reality."
Reference:
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A poll of 20 attendees was conducted as part of a joint Cornwall Insight and Weightmans webinar on the challenges to renewable deployment and investment held on 23 May 2024.
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National Grid Electricity Transmission
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Notes to Editors
For more information, please contact: Verity Sinclair at v.sinclair@cornwall-insight.com
To link to Cornwall Insight’s website, please use: www.cornwall-insight.com/
Link to Weightmans website: www.weightmans.com
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About the Cornwall Insight Group Cornwall Insight is the pre-eminent provider of research, analysis, consulting and training to businesses and stakeholders engaged in the Australian, Great British, and Irish energy markets. To support our customers, we leverage a powerful combination of analytical capability, a detailed appreciation of regulation codes and policy frameworks, and a practical understanding of how markets function.
About Weightmans Weightmans is a leading UK law firm, with a national network of offices, offering a full spectrum of legal services. With more than 260 partners and 1,500 people, more than 140 specialisms recognised, and 453 experts listed in Chambers and Legal 500, we are dedicated to putting our clients at the heart of everything we do. Our national energy team works closely with organisations across the Energy sector, including project developers, large utilities, investors, funders, new energy services companies, local authorities, waste companies and major energy consumers.
Viable projects are being delayed by others that are stalled or speculative, leaving ready-to-connect projects stuck behind those unlikely to progress.
Matthew Chadwick Lead Analyst
