NESO closed a consultation on Monday this week regarding a significant reform to grid connections (TMO4+). The current connections queue is made up of over 750GW of projects, including 242GW of storage (pumped storage, BESS, and other long-duration energy storage). NESO had previously adopted a “first come, first served” approach for grid connections. However, with the clean power target for 2030 set by the new government, NESO has proposed revising this approach to also factor in the “strategic need” for projects. The newly proposed framework is illustrated in the diagram above, and will consider projects based on:
- Readiness: Project has progressed with securing land or have submitted planning consent following the Development Consent Order (DCO) process
- Strategic alignment: Project is aligned with Clean Power 2030 (CP30) pathways, is a designated project (projects which deemed critical or highly beneficial to system operation, are new technologies, have long lead times) or is a transmission connected demand project not included in CP30.
The strategic alignment criteria will be updated after the release of the Strategic Spatial Energy Plan (SSEP), which will identify key locations for generation, storage and infrastructure. Notably, subsidy or capacity market contracts will not influence which projects can progress to Gate 2.
Ofgem is expected to decide on this proposal in Q1 2025, with NESO set to apply the new grid connection methodology to the queue by 2026. This shift, along with other key regulatory reforms like REMA, will significantly impact many projects across GB, leaving developers at risk of losing connection offers and facing growing uncertainty as we enter 2025.
