These reforms aim to streamline the process, clear out stagnating projects, and prioritise those that are ready to move forward. For landowners, this presents both challenges and new opportunities.
Grid Reform: First Ready, First Served
Historically, grid connections in the UK have operated on a ‘first-come, first-served’ basis, this worked for a time, but it has led to a backlog of projects stuck in the queue. In a number of cases, projects have been abandoned by a developer, but continue to sit in the grid connection queue. These often termed ‘zombie projects’ can block more viable developments from moving forward.
The upcoming reform replaces this system with a ‘first ready, first served’ approach. The National Energy System Operator (formerly National Grid) has launched a call for information, asking developers to demonstrate their project’s progress such as securing planning consent or agreements with landowners. This process, referred to as Gate 2 will re-order the grid connection queue, prioritising the most advanced projects. The aim is to accelerate the delivery of renewable energy projects and help achieve the government’s 2030 net-zero energy target.
The Impact on Landowners with Existing Projects
For landowners already engaged in renewable energy projects, time is of the essence. Developers have limited time to submit evidence of their project’s readiness.
Failure to demonstrate sufficient progress could result in the project dropping down the grid connection queue, delaying the connection date by years, or losing the grid connection entirely. However, those who meet the criteria stand to benefit from faster grid connections, with some projects potentially moving forward by several years.
Opportunities for co-located projects
While the reforms aim to clear the backlog of projects, they also create new opportunities. As ‘zombie projects’ are removed from the pipeline, capacity will be freed up in areas where grid access was previously unavailable. This could unlock new sites in strategic locations, making it an ideal time for landowners to explore their options.
The Clean Power 2030 Action Plan included a forecast of supply and demand of the next 10 years. Onshore wind in England has significant scope for growth and solar still has some way to go to meet demands, but it looks like batteries are on track to meet the UK’s needs. This has caused developers to reevaluate their standalone battery developments, which may lead to an evolution of the battery market over the next few years. We are already seeing an increase in co-located battery storage - where batteries are paired with solar or wind farms. These hybrid sites will remain a viable investment, as they enable energy to be stored when prices are low and sold when demand is higher. We may also see a shift from fast response short duration batteries to slower long duration battery sites, or different energy storage technologies.
Energy Demand and Future Market Trends
According to the Climate Change Committee the demand for electricity is set to rise by 50% by 2035 with the ongoing electrification of transport, heating, and industrial processes. Additionally, the rapid expansion of data centres is putting increased pressure on the grid. Many data centre developers are already struggling to secure grid connections, and the upcoming reforms could provide much-needed relief by prioritising projects that can deliver power more efficiently.
Practical Advice for Landowners
For those with existing projects, ensuring all necessary documentation is in order ahead of the Gate 2 deadline is critical. Missing the deadline could mean projects face significant delays or face being abandoned.
For those considering new projects, this remains a strong market with significant potential. The shifting landscape and ever-changing legislation is creating new opportunities, particularly in areas where grid access was previously constrained. Landowners should remain proactive, working with experienced developers to assess viable opportunities and understand how upcoming changes might impact their sites.
A Positive Shift for the Sector
While change often brings uncertainty, the grid connection reforms should ultimately be seen as a positive step forward. By prioritising the best projects and clearing out unviable applications, the reforms aim to accelerate the UK’s transition to a renewable energy future and achieve a net zero energy grid by 2030.
For landowners, the key takeaway is to act now. Whether this means securing an existing project’s place in the queue or exploring new opportunities as a result from these reforms. The renewable energy market is evolving, but with the right approach, landowners can position themselves to benefit from these changes in the years ahead.
