Re-arranging Grid Connections for Energy Transition
The UK government has unveiled a new reform proposal, dubbed "First Ready, First Connected," aimed at addressing grid-connection delays and accelerating the delivery of net-zero energy infrastructure by 2035. This initiative comes in response to findings from the Climate Change Committee that identified grid-connection delays as a significant barrier to achieving the UK's net-zero targets.
Key elements of the reform include prioritizing projects based on their readiness, improving risk sharing between developers and grid network operators, streamlining regulatory processes, supporting renewable and emerging technologies, and focusing on strategic coordination to unlock grid capacity faster and reduce project delays.
Under the new approach, projects will need to meet certain criteria to proceed through gate two, obtaining a queue position and a connection date. This shift from the current "first come, first served" approach is intended to reduce bottlenecks and accelerate grid connections.
The Electricity System Operator (ESO) has published proposals for the "First Ready, First Connected" reform, which, if approved, could be implemented by January 2025.
Meanwhile, Northern Powergrid, a UK distribution network operator, has announced its plans to add renewable generation and storage to the distribution network for commercial customers. The company's focus is on enabling individual customers to decarbonize through the use of electric vehicles, heat-pumps, and solar panels.
Northern Powergrid has also released its roadmap to net zero through its DSO Implementation Plan for 2024/25. The plan outlines how Northern Power will expand its capabilities and take on the functions of a distribution system operation (DSO) to manage complex power flows, innovation, and close collaboration.
The Industrial Growth Plan, another significant initiative, aims to triple offshore wind manufacturing capacity over the next ten years. This will help the UK source the 300 giant turbine towers and 900 blades every year needed to achieve the 50GW offshore wind target by 2030.
The plan also prioritizes five areas for investment, including the design and manufacture of blades and turbine towers, which has potential for economic growth and job creation.
In a separate development, the Scottish government has announced that it will no longer pursue its target to cut carbon emissions by 75% by 2030, due to findings from the Climate Change Committee. However, the Scottish government's existing commitment to deliver net zero by 2045 remains steadfast.
The Scottish government will expedite and propose a legislative amendment to the Climate Change Act to address the matters raised by the Climate Change Committee.
The measures set out in the Industrial Growth Plan are expected to support an additional 10,000 jobs a year and boost the UK's economy by £25 billion by 2035. The anticipated return to the UK economy would be just under £9 for every £1 invested in the Industrial Growth Plan.
In conclusion, the "First Ready, First Connected" reform, along with other initiatives like the Industrial Growth Plan, aims to unlock the UK's potential for a net-zero future by accelerating grid connections, supporting renewable and emerging technologies, and boosting the economy.
The "First Ready, First Connected" reform proposal, aimed at expediting grid-connections and promoting net-zero energy infrastructure, is also focused on supporting renewable and emerging technologies in the industry. Meanwhile, the Industrial Growth Plan, another initiative, prioritizes investments in sectors like the design and manufacture of wind turbine components, anticipating substantial financial returns from the UK's economy by 2035, with every £1 invested expected to return almost £9.
