Grid connections reform: Update on timescales and process

On 2 April, the National Energy System Operator (NESO) hosted a Connections Seminar which provided an update on the ongoing grid connection reform process. 

Timelines for implementation

A key takeaway from this session was a much-needed update on expected timescales - understandably, one of the main areas that industry has been pushing for further clarity on is when Ofgem will make a decision and, crucially, when the Gate 2 window will open. 

The main updates on this from the seminar are: 

• Timescales have slipped compared to previous expectations. We do not yet know when Ofgem will make its decision (which was initially expected in Q1 this year), but it has been confirmed that there will be a 56-day standstill period starting when Ofgem announces its decision. 
• It is now anticipated that the earliest the Gate 2 window could open is in June.
• The window for distribution connected projects is expected to open earlier - during the standstill period - with the window for transmission connected projects then opening no less than four weeks after expiry of the standstill period. 
• The window (meaning the time period during which developers can upload evidence of satisfaction of the Gate 2 criteria) will be open for at least two weeks (although it may be two weeks only). 
• Both windows will close at the same time, meaning that distribution projects will have a longer window, allowing time for DNO feedback. 

A timetable is expected to be issued “within the next few weeks" providing clarity on key dates for evidence submission and receipt of offers.

The “Pause”

NESO also announced a change to the Gate 2 timeline which introduces a “Pause” following closure of the application window. 

During this period NESO will publish information on the applications made, including details of the capacity and technology type of projects which have submitted Gate 2 applications and their current connection points and dates. This is intended to give developers some certainty on whether they are going to get a Gate 1 or Gate 2 Offer and where they are likely to sit within the initial queue formation. 

Developers will then have the opportunity to request Advancement (meaning a request to bring their connection date forward), amend a previous Advancement request, or withdraw from the process (following which they will receive a Gate 1, indicative offer). 

Further guidance on Readiness Criteria requirements

To help developers prepare for the Gate 2 window, NESO also announced that it will issue in early April a draft Readiness Declaration template, as well as updated guidance on Letter of Authority requirements and Queue Management. A revised energy density table setting out the minimum acreage requirements is also expected. 

The Readiness Declaration is expected to be a key element of the Gate 2 submission, providing the information and confirmations needed for NESO and the DNOs to verify achievement of the Readiness Criteria. 

Demand 

Finally, the seminar included a helpful confirmation that distribution connected demand only projects are (as was anticipated, but not expressly stated) not within scope of the connection reforms. 

We are helping a number of clients manage challenges created by the ongoing grid connection reforms. If you need any assistance please contact one of the team.

We are listening to concerns raised on some of the details. We continue to work through them with government and NESO to ensure we arrive at the best outcome, noting the need to give investors clarity quickly and to ensure we can achieve the benefits in a timely manner.

https://www.ofgem.gov.uk/blog/connections-reform-our-minded-decisions