Electric Power, Energy Transition, Renewables

December 13, 2024

UK unveils major reforms to clear grid connection queue, accelerate clean power

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HIGHLIGHTS

Fast-track permitting, prioritize critical projects

Remove speculative projects from grid queue

Pro-consumer reforms on tariffs, flexibility

The UK government released a plan Dec. 13 to help achieve its 2030 clean power target, promising to clear out the country's bulging grid connection queue, streamline planning processes and expand its renewable energy auction program.

Energy Secretary Ed Miliband described the plan as "the most ambitious reforms to our energy system in generations," helping the country reach at least 95% low-carbon generation by 2030 and unlocking GBP40 billion/year ($51 billion/year) of mainly private investment in UK clean energy infrastructure.

Among a series of actions, the government intends to remove "speculative" or slow-moving projects from a UK grid connection queue that now contains 739 GW of potential capacity. The current system of granting connections on a first-come, first-served basis will be replaced with one that prioritizes projects based on readiness alone.

"Cleaning up the queue will mean crucial infrastructure from housing to gigafactories and datacenters can get a connection to the grid, helping to unlock billions of investment and grow the economy," the government said in a statement.

Meanwhile, permitting decisions will be accelerated by empowering planning authorities to prioritize critical energy infrastructure, the government said.

On Dec. 12, ministers announced their intention to bring onshore wind projects in England larger than 100 MW back into the national planning regime from spring 2025 after a decade of being permitted at local authority level.

The government will also bring forward a Planning and Infrastructure Bill with measures to streamline the delivery of critical infrastructure.

The plan includes further reforms to accelerate the deployment of renewable power, including an expansion of the UK's contracts for difference auctions and allowing projects to bid for contracts before planning permission has been finalized.

The UK's sixth renewables auction awarded CFDs to more than 9.6 GW of capacity this year. The next auction is set to take place in 2025, with industry players saying it needs to be the largest ever if the government's 2030 clean power target is to be achieved.

The government already announced that a Clean Industry Bonus will be added to next year's auction, allocating extra support to offshore wind and floating wind projects that take "meaningful action" to boost local manufacturing.

It also intends to bring in certain pro-consumer reforms "to help households have more choice and access to cheaper energy tariffs," as well as ensuring they can choose to save money by using appliances like electric car charging when electricity is cheaper.

"The era of clean electricity is about harnessing the power of Britain's natural resources so we can protect working people from the ravages of global energy markets," Miliband said. "The clean power sprint is the national security, economic security, and social justice fight of our time — and this plan gives us the tools we need to win this fight for the British people."


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