Energy regulator Ofgem has approved proposed reforms from the National Energy System Operator (NESO) to transform the grid connection process that will see clean energy projects prioritised.

In its manifesto, Labour set itself the lofty goal of entirely decarbonising the UK’s energy grid by 2030. To achieve this, renewable energy projects need to be connected to the grid at pace.

However, the issue is that the queue for connecting new projects to the grid is massively oversubscribed, with some green energy projects taking up to a decade before they can be connected.

According to NESO, the connections queue currently holds over 750GW of projects – four times what is needed for 2030 and twice what is needed for 2050.

But the queue is being held up by zombie or phantom projects, which are stalled or speculative schemes that prevent viable renewables projects progressing. 

NESO’s proposed reforms for a new connections system will see the end of the first-come, first-served system, with “ready” and “needed” projects pushed to the front of the queue: in other words, projects that can go operational quickly and will contribute to the government’s plan to decarbonise the grid by 2030. 

Those that are not ready or do not align with the government’s plans will be deprioritised.

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

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.”

It is hoped that these proposed reforms will bring certainty to investors and developers, helping to unlock £40bn a year of mainly private investment. 

According to the government, commitments to invest in the UK have topped £38bn for data centres alone since July 2024, but grid access is the biggest bottleneck facing these projects from taking off. 

Jonathan Brearley, CEO of Ofgem, said: “The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach anticipated to unlock £40bn 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.”      

Kayte O’Neill, COO of NESO, said: “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.”

In December, the National Grid detailed £35bn in “unprecedented” upgrades to the UK’s power network, including upgrades to approximately 3,500km of existing overhead lines that will enable some 35GW of new generation and storage to be connected.