Engaging stakeholders on connections reform
Blog
- Fiona Campbell
- Deputy Director of Energy Systems Design and Development
- Publication date
- Industry sector
- Distribution Network
- Transmission Network
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It has been another busy month in the connections reform space. The connections queue currently stands at 732 gigawatts (GW), a 10GW increase on the previous month. The queue remains dominated by renewables and storage.
Ofgem and the government have this month published an open letter, reaffirming our ambition to reform the outdated grid connections process to support the government’s mission to make Great Britain (England, Scotland and Wales) a clean energy superpower.
This blog provides a brief overview of the latest Connections Delivery Board and details the latest connections reform publications.
As always, the full meeting minutes will be available on the Ofgem Connections Delivery Board – Energy Networks Association (ENA) website.
Connections Delivery Board Overview
The Board revisited the importance of strengthening the connections process reforms (TMO4+) to align with strategic planning, including the option to include a financial instrument in the application process. The National Energy System Operator (NESO) are still exploring the possibility of a code modification proposal to address the financial element and have issued a call for input to support this work.
The Board also discussed the existing Transmission Impact Assessment thresholds. The Connections Action Plan previously recognised the dependency that some distribution connected projects have on transmission works and the need for those distribution customers to understand the impact of transmission works on their projects earlier in the process to speed up connections.
National Grid Electricity Transmission (NGET) have now proposed increasing the lower Transmission Impact Assessment threshold from 1 megawatt (MW) to 5MW in England and Wales. This could allow the acceleration of the connection of up to 390 small generation units that are less than 5MW, as they would not have to wait until a Transmission Impact Assessment had been undertaken, nor would their connections be at risk of delays because of required transmission works. This follows a recent increase in the lower TIA threshold in mainland Scotland to 200 kilowatt, a lower figure than England and Wales due to higher network constraints.
The Board are interested in exploring this proposal further, in line with the Clean Power 2030 Action Plan, and asked that further impact analysis is conducted once the plan is published.
News from NESO
In early November, NESO published two documents that focused on the government’s ambition to deliver clean power by 2030 and the alignment of the connections process to that ambition.
NESO’s Clean Power 2030 report
NESO published its advice to the government on how to achieve clean power by 2030. This document provides insight into what the energy grid will need to deliver this ambition.
Reforming grid connections to align with plans for the future energy system is a critical part of their advice.
As mentioned in previous blogs, the Clean Power 2030 Action Plan is expected to provide clarity on the role of ready and strategically aligned projects in achieving clean power. It is essential that the new connections process effectively allows these projects, and projects necessary to maintain system security, to connect in time to support the Clean Power 2030 mission.
We look forward to seeing the government’s plan in due course.
NESO Connections Methodologies
Alongside the Clean Power 2030 report, NESO launched its consultation on the proposed methodologies that are intended to support connections reform. The consultation proposes specific criteria to determine projects that are ‘ready’ and ‘needed’ under the new connections process.
As detailed in the Methodologies, users that meet these criteria will be placed inside ‘Gate 2’ of the connections queue, where they will be offered a firm connection date and location. This process has the benefit of
- providing transmission operators visibility of the queue
- system users who meet the criteria the opportunity to connect to the electricity system in a timely and efficient manner
We strongly encourage stakeholders to engage with this consultation process and to share their views on NESO’s proposed methodologies, which will inform their development ahead of Ofgem’s ultimate decision on approval.
Later in November, we will also be consulting on new and modified licence conditions we think are needed to implement the new connections process alongside the code changes and methodologies already in development. We recognise the impact on industry of participating in these consultation pieces and greatly appreciate ongoing engagement.
The Ofgem end-to-end review
Finally, on 8 November, we published a consultation on our end-to-end review of connections incentives and obligations. This review looks at the whole connecting customer journey from start to finish, seeking to understand where changes to regulations may be needed to drive the right behaviours and outcomes we need to see. It is critical that the regulatory framework keeps pace with ongoing process reforms.
Crucially, it is important that customers connecting to the grid receive a high quality of service and more timely connections. This is an opportunity for connecting customers to provide feedback on how the connections process can work effectively for those using it. As one of the main actions under the Connections Action Plan, it is exciting to see this piece of work come to life.
The final Connections Delivery Board of the year is in early December, giving us all a chance to reflect on the progress we have made this year and look forward to the critical year ahead for connections reform.