UK energy regulator proposes new rules to cut backlog of projects awaiting grid link-up

LONDON (Reuters) – Britain’s energy market regulator on Friday proposed new regulations for grid companies to cut down the backlog of renewables projects waiting to connect to the grid.

In a consultation document, Ofgem said projects waiting to be connected has reached more than 730 gigawatts, well above the 220-225 GW of generation projects the National Electricity System Operator has estimated need to be connected by 2030.

Ofgem said as well as the queue being over-subscribed, the rate of growth and mix of energy technologies in the current queue do not align with Britain’s future energy needs, with for example more storage and solar than will likely needed by 2050.

If approved, the new rules would slim down the volume of projects in the queue, with schemes prioritised if they can be operational within five years and contribute to the right mix of renewable generation types.

While network companies are handling a record number of connections, “tough but fair new regulations” are needed to stop timelines slipping to ensure they hit deadlines, Ofgem said.

It proposes that grid companies could face stronger licences, financial penalties, and tougher enforcement if they don’t hit stricter milestones and deadlines – with the tougher regime in place within 12 months.

The proposals are part of a consultation which Ofgem expects to respond to in the spring of next year.

(Reporting by Nina Chestney; Editing by Jan Harvey)