The United Kingdom has launched a sweeping reform of its electricity grid connection system, aiming to fast-track clean energy projects that have been facing delays of up to 15 years. The initiative, developed by the National Energy System Operator (NESO) and supported by Ofgem, is designed to prioritise projects that are “shovel-ready” and aligned with national strategy while removing so-called “zombie projects” that have long held up the queue.

The reform is expected to unlock 40 billion pounds in mostly private investment annually, stimulate economic growth and job creation, and reduce household energy costs.

Key reforms to drive economic growth and energy security

According to official data, the queue for grid connections has grown tenfold in the past five years, leaving thousands of projects on hold. The new strategy prioritises connections for companies generating clean energy – such as wind and solar farms – as well as high-impact sectors like data centres, artificial intelligence and EV charging infrastructure.

“The proposed connection reforms will supercharge Britain’s clean energy ambitions with a more targeted approach, anticipated to unlock 40 billion pounds a year in investment and boost economic growth,” states Jonathan Brearley, Chief Executive of Ofgem.

Beyond facilitating investment, the reform will directly benefit consumers. Strategic planning will eliminate unnecessary grid reinforcements, saving 5 billion pounds in future billpayer charges, according to Ofgem estimates.

35 GW in limbo: the backlog holding back the transition

A major bottleneck is currently blocking progress: over 350 companies have a combined 35 GW of renewable projects in the UK’s connection queue, according to a survey conducted by Strategic Energy Europe. Many of these projects lack financing or technical readiness, delaying other viable projects and slowing the broader energy transition.

“Reforming the connection process is a key enabler for delivering Clean Power by 2030, and will drive economic growth for Great Britain,” says Kayte O’Neill, Chief Operating Officer at NESO. The new framework will prioritise projects that are critical and ready to build, giving developers the certainty they need to move forward.

“Too many firms are gridlocked because they can’t access the clean energy they need to grow and create jobs,” warns Energy Secretary Ed Miliband. “These changes will axe zombie projects and drastically cut connection times, while fast-tracking homegrown power and strengthening energy security.”

Record investment since July and legislative backing

Since July 2024, the UK has seen 43.7 billion pounds in private clean energy investment announcements, including:

• 34.8 billion pounds secured around the October International Investment Summit

• 1 billion pounds from the National Wealth Fund, Barclays UK and Lloyds for social housing retrofits

• 395 million pounds in debt financing from Statera Energy for flexible generation

• Final investment decisions from Copenhagen Infrastructure Partners for battery storage in Scotland

• Financing closure from Quinbrook Infrastructure Partners for the Cleve Hill Solar Park, the UK’s largest solar-plus-storage project

To support implementation, the Government will advance the Planning and Infrastructure Bill, granting Ofgem and NESO the authority to reorder connection queues and apply strategic criteria.

“Build it in Britain”: a clear signal to global industry

The reform is a central element of the UK’s Plan for Change, a new industrial policy designed to respond to rising global insecurity and strengthen domestic capabilities. “In an uncertain world, our message to the global clean energy industry is clear: come and build it in Britain,” affirms Miliband. “If you want certainty, stability and security for your investments, choose the UK.”

The approach also responds to lessons from the Ukraine war, which exposed the UK’s dependency on imported fossil fuels and pushed energy bills to record highs.

Looking ahead to 2030, the Clean Power Action Plan estimates an average 40 billion pound annual investment requirement, split between 30 billion pounds for generation assets and 10 billion pounds for grid infrastructure, according to DESNZ and NESO projections.