Monitoring progress in connections reform
Blog
Jack Presley Abbott
Deputy Director – System Planning and Connections
Dyddiad cyhoeddi
Sector diwydiant
- Distribution Network
- Transmission Network
Dolenni cysylltiedig
The connections queue continued to grow in May, though at a slower rate, with 9.56 gigawatt (GW) added. As of June, the queue stands at 714GW and continues to be dominated by renewables and storage – far more than Great Britain’s (England, Scotland and Wales) energy needs for net zero.
As a result of the growing queue, connecting customers still face delays, with a difference of 5.5 years between the requested date and the connection offer. However, since the connections reform kicked in, 7.8GW of projects have been accelerated by an average of 6 years. We are expecting further acceleration.
Below are the main discussion points from the Connections Delivery Board meetings in May and June, which link to the main parts of the Connections Action Plan we want to deliver. The minutes are available on the Energy Networks Association Connections Delivery Board webpage. We will track the progress of the Connections Action Plan by assessing the progress on timelines and the predicted impact of individual actions.
ESO’s new proposed connections reform process
The Electricity System Operator (ESO) was tasked with providing regular updates on their new proposed connection reform process (TMO4+) to the board.
The board discussed the effectiveness of TMO4+ and the necessity for strategic planning. ESO was advised to proceed with TMO4+ but to be open to considering other options if needed. Ofgem also encouraged stakeholders to raise alternative proposals through the code process.
Ofgem drew attention to a Request for Information (RFI) by ESO for connecting customers at transmission and distribution levels. This information is necessary to understand the impact and effectiveness of ESO’s proposals to reform the queue process. The RFI has now concluded and has had a good response rate.
The ESO presented new transitional arrangements to allow a smooth move to the proposed new connections process if this were to come into effect. ESO is proposing to provide customers with offers similar to Gate 1 offers of TMO4+ and have a cutover period to ensure that everyone is in a contracted position before the start of the reformed process.
The Connections Delivery Board recommended ESO to coordinate transitional offers between distribution and transmission connections. Ofgem is currently considering such arrangements.
Raising entry requirements
The ESO proposed its continued requirement to have a letter of authority for connections applications and duplication checks to ensure projects applying are sufficiently progressed.
The board welcomed proposals to improve the connections application process at distribution level and standardise upfront fees. Further development is needed to understand the impact, and implementation should be aligned with wider connections reform timelines.
The Energy Networks Association (ENA) provided updates on the potential impact of TMO4+ on distribution queue management. ENA started working on proposals and it did not bring forward significant announcements. However, the proposer recognised that TMO4+ may impede some of the progress so far and discussed the need to work together with the TMO4+ teams to assess impact and find a way forward.
Better utilising existing capacity
The ESO explained how it and the network companies are considering enabling works definitions and construction planning assumptions to make sure connection offers include a proportionate level of network build works. ESO proposed progressing with a Connection and Use of System Code (CUSC) code modification to change the definitions of enabling works.
The board briefly described how it would assess the interactions between TMO4+ and the ongoing reform on strategic planning. The board agreed with the proposals and offered guidance, asking ESO for more information on how long it would take to carry out the proposals.
Improving data and processes
The development of a unified digital platform is making progress. Data from transmission and distribution network companies is collated monthly to produce and publish a data book. The board recognised that more work must be done to unlock benefits for connecting customers.
Ofgem presented findings from our end-to-end review of the connections regulatory framework, which was a main action in the Connections Action Plan. We want to make sure that the regulatory framework keeps pace with the reformed process and drives the right behaviours and outcomes from all parties within connections. We will consult on our recommendations for regulatory improvements later this summer.
Overall, I am grateful to all the members of the Connections Delivery Board. We continue to move forward at pace and assess if further actions are needed to improve the connections process.
Finally, we note with interest the new Secretary of State for Energy Security and Net Zero’s agenda, like the Mission Control for Clean Power. We look forward to working with the new government to continue to improve the connections process for customers.