Issued by: Department for Energy Security and Net Zero, Ofgem, and National Energy Systems Operator

Ofgem is expected to confirm the National Energy System Operator's ambitious new plan to reform grid connections and unlock billions of investment.

• Grid connections for businesses that will deliver clean energy prioritised, driving growth to put more money in working people’s pockets

• Pro-growth reforms to help unlock £40 billion of mainly private investment a year in clean energy and infrastructure, with industries of the future such as data centres accelerated for quicker grid connections

• Comes as £43.7 billion of private investment announced into the UK’s clean energy industries since July

So-called ‘zombie’ projects will no longer hold up the queue for connection to the electricity grid to prioritise businesses that will drive growth and deliver energy security.

Companies are currently waiting up to 15 years to be connected to the grid leaving promising businesses ‘grid-locked’, and over the last 5 years, the grid connection queue has grown tenfold.

The changes will help to kick-start the economy to put more money in working people’s pockets, the first priority of the government’s Plan for Change.

Ofgem is expected to confirm the ambitious new plan later today (Tuesday 15 April), drafted by the National Energy System Operator in partnership with the energy industry.

The reforms will help unlock £40 billion a year of mainly private investment, growing the economy, creating jobs and raising living standards as a key part of the government’s Plan for Change.

This builds on the latest figures showing that since July, the clean energy industry is now booming in Britain, with £43.7 billion of private investment being announced into the UK’s clean energy industries.

Energy Secretary Ed Miliband said:

"Too many companies are facing gridlock because they cannot get the clean energy they need to drive growth and create jobs.

"These changes will axe ‘zombie’ projects and cut the time it takes to get high growth firms online while also fast-tracking connections for companies delivering homegrown power and energy security through our Plan for Change.

"In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain."

The plan comes after the Prime Minister has said that a new era of global insecurity means that the government must go further and faster reshaping the economy through the Plan for Change, and that this requires a new muscular industrial policy that supports British industry to forge ahead.

Lack of access to grid connections has been a significant factor holding back new investment in UK industries.

Under the new changes, industries of the future from data centres and AI, to wind and solar projects, will be accelerated for grid connections.

That means deprioritising those projects that are not ready or not aligned with strategic plans.

New commitments to investing in the UK have topped £38 billion since July 2024 for data centres alone, but grid access is the single biggest challenge facing these projects.

Today’s reforms will help fast track projects to generate homegrown, renewable electricity into homes and businesses, protecting British billpayers from the rollercoaster of global fossil fuel markets and building an energy system that can bring down bills for good.

Delivering these reforms will help unleash £40 billion a year of mainly private investment in homegrown clean power projects and infrastructure across the country, creating good jobs across the country including engineers, welders and construction workers.

By taking a strategic, planned approach the changes will remove the need for tens of billions of pounds of unnecessary grid reinforcement, saving billpayers £5 billion that would have been funded through charges on bills.

Ofgem CEO, Jonathan Brearley, Chief Executive Officer, Ofgem said:

"The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40 billion a year of investment and energise economic growth.

"The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.

"Houses and hospitals, electric vehicle charging stations, data centres and the emerging AI sector, would also all benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills."

Kayte O’Neill, Chief Operating Officer, National Energy System Operator, said:

"Reforming the connections process is a key enabler for delivering Clean Power by 2030 and will drive economic growth for Great Britain. Today’s milestone reflects the close collaboration across the energy industry with support from the government and Ofgem.

"Together with the wider energy industry, NESO will focus on prioritising agreements for projects that are critical and shovel ready, bringing these to the front of the queue and giving developers the certainty they need to support investment decisions."

Notes to editors

Through the landmark Planning and Infrastructure Bill, the government is also bringing forward legislation to support Ofgem and NESO to deliver the reforms.

Every family and business in the country has paid the price of Britain’s dependence on foreign fossil fuel markets, which was starkly exposed when Putin invaded Ukraine and British energy customers were among the hardest hit in Western Europe, with bills reaching record heights.

The government’s clean power mission is the solution to this crisis; by sprinting to clean, homegrown energy, including renewables and nuclear, the UK can take back control of its energy and protect both family and national finances from fossil fuel price spikes with cleaner, affordable power.

The Clean Power Action Plan estimated that Clean Power 2030 could require around £40 billion of investment on average per year between 2025 to 2030. This includes around £30 billion of investment in generation assets per year, estimated by DESNZ, and around £10 billion of investment in electricity transmission network assets per year, estimated by NESO.

The £5 billion savings for billpayers was estimated by Ofgem in their February 2025 Impact Assessment for the TM04+ connections reforms: Consultation on connection reform (TM04+) enablers, including a statutory consultation on modifications to licence conditions (https://www.ofgem.gov.uk/consultation/consultation-connection-reform-tm04-enablers-including-statutory-consultation-modifications-licence-conditions)

In addition to the £34.8 billion in clean energy private investment announcements (https://www.gov.uk/government/news/record-breaking-international-investment-summit-secures-63-billion-and-nearly-38000-jobs-for-the-uk) secured around the October 2024 International Investment Summit the following private investments have been announced. This means that since July 2024 the government has seen £43.7 billion of private investment announced into the UK’s clean energy industries.

National Grid announced that Eastern Green Link 2 has seen the single, largest-ever investment in electricity transmission infrastructure in Great Britain. (https://www.nationalgrid.com/media-centre/press-releases/go-ahead-uks-biggest-subsea-connection-project)

National Wealth Fund, Barclays UK Corporate Bank and Lloyds Banking Group announced £1 billion unlocked to retrofit social housing (https://www.nationalwealthfund.org.uk/news/national-wealth-fund-barclays-uk-corporate-bank-and-lloyds-banking-group-join-forces-unleash).

Government announced the successful HAR1 projects (https://www.gov.uk/government/publications/hydrogen-production-business-model-net-zero-hydrogen-fund-shortlisted-projects/hydrogen-production-business-model-net-zero-hydrogen-fund-har1-successful-projects).

Statera Energy announced financial close on £395 million debt financing platform for Thurrock Flexible Generation (https://stateraenergy.co.uk/news/statera-energy-reaches-financial-close-on-gbp395-million-debt-financing-platform-for-thurrock-flexible-generation).

Copenhagen Infrastruture Partners announced Financial Investment Decision for Coalburn 2 and Devilla, battery energy storage system projects in Scotland (https://www.globenewswire.com/news-release/2025/01/08/3006167/0/en/Copenhagen-Infrastructure-Partners-charges-to-the-top-of-the-UK-battery-stack.html).

Renewable energy developer OnPath announced their ambitions to invest £1 billion in clean energy projects across the UK (https://www.onpathenergy.com/about/news/onpath-energys-billion-pound-investment-plans-announced-as-bridget-phillipson-mp-opens-new-sunderland-headquarters).

Quinbook Infrastructure Partners announced the close of financing for Cleve Hill Solar Park, the UK’s largest solar and battery storage project under construction (https://www.quinbrook.com/news-insights/quinbrook-closes-uks-largest-solar-pv-battery-storage-project-financing-for-cleve-hill-solar-park).

Tags

More Like This

Planning revolution to fuel growth and make Britain energy secure

Government sets out plan for new era of clean electricity

Government secures record pipeline of clean cheap energy projects

New publicly owned National Energy System Operator to pave the way to a clean energy future

Government unleashes offshore wind revolution

Strategic plan for long-term energy infrastructure

More Scottish energy projects unlocked to deliver clean power

Government rips up rules to fire-up nuclear power