The Electricity System Operator (ESO) has set out a five-point plan to try to speed up connections to the transmission grid. to complement its programme of longer-term reform.
Modelling shows that Great Britain needs 123-147GW of new low carbon generation to connect to the transmission network by 2030 of which we already have 83GW connected. There are more than enough projects waiting to connect – as of February 2023, GB had 257GW of generation with contracts for future connection – but they have been held up. Only 30-40% of projects in the queue are eventually realised and because the queue operates on a first-come-first-served basis projects that do not complete hold up those behind them.
Fundamental reform is needed: NGESO’s new plan aims to cut waiting time for those in the queue while the reform is delivered. It will:
• Operate a Transmission Entry Capacity Amnesty until April 2023, allowing developers to terminate their connection contracts without incurring liabilities, freeing up capacity in the queue.
• Update its modelling assumptions to reflect current connection rates and reduce the assumption that most projects in the queue will connect.
• Change the treatment of storage to allow it to connect faster and free up capacity for other projects.
• Develop new contractual terms for connection contracts to manage the queue more efficiently so that those projects that are progressing can connect and those that are not can leave the queue.
• Offer an interim option for storage projects to connect to the network sooner, but with the caveat that they may be required to turn off more frequently when the system is under stress without initially being paid to do so.
From 1 March applications received in England and Wales will follow a new two-step process that aims to reduce uncertainty as the changes are made. In Scotland, these changes will be applied without the need to implement a new two-step process.
The long term Connections Reform Project is now in the Design Phase to identify longer-term reforms, which will be set out shortly and implemented later this year.
Two Step Process
The two step process is:
The customer is provided with an Offer in standard terms which identifies a Connection Site/Point reflecting the requested connection point in the application and a Completion Date based on the existing TEC queue and current TRW reflecting the general scale of works to enable connection for projects applying now against the current contracted background. It will not however include the detailed works, programme or indicative costs and charges that would usually populate the appendices. No transmission works will be identified in or undertaken for the purposes of the connection at this stage, securities will be set at £0. Clauses will be inserted in the Bilateral and Construction Agreement to reflect that this is an initial Offer and that it, if accepted, it will be updated, to identify the Transmission Works, programme, charges and Connection site/point and any updated terms as per Step Two.
Step Two Follow up Offer – Where the Step One offer is accepted, this offer will then be issued a maximum of 9 months after counter signature of the Step One offer. A meeting with each customer who has accepted the Step One Offer will be held, to give an update on the wider results following the completion of the TRW review. The meeting will also discuss when the customer can expect the follow up Step Two Offer to be issued and likely results. The follow up offer will update the Step One offer based upon the updated TRW review study results and contracted background and identify the Transmission works needed for each project. This offer will therefore include the complete populated suite of Appendices for the agreement including securities and programme based on the identified transmission reinforcement works. These offers will be progressed in regional batches so that they can be processed efficiently as possible.