Ofgem's chief executive Jonathan Brearley will denounce the decade-long delays by National Grid PLC (LSE:NG.) in connecting low-carbon projects to the electricity grid as "unacceptable" at a conference today.
Statistics recently emerged showing more than half of green power projects in the queue for transmission face waits of more than five years to be connected to the grid.
There has been a "blame game" over the mounting backlog of projects, Brearley said in a speech leaked to the media ahead of the Utility Week Live in Birmingham today.
Brearley's speech will criticise the "legacy of stalled, unviable, and often highly speculative 'zombie' projects" that hinder the progress of ready-to-go solar, wind, and other renewable schemes.
In a letter to energy industry leaders, he cautioned that the current system of queuing energy projects for connection may need to be replaced by new methods that can better match power generation with demand.
The government’s “lack of vision” in planning the grid is resulting in wait times of up to 15 years, renewables developers have said, making it difficult to attract investment, particularly against progressive subsidies in the US.
Brearley will say: “Polite queueing may be in the very best of British traditions – but the first come, first served connections regime is not fit for purpose if we are to end fossil fuel power within 12 years.”
He said it is “unacceptable” that some energy projects that may never be built are “blocking great low-carbon schemes from plugging into the transmission network”.
The slow speeds of grid connection “risk undermining us creating a net-zero electricity system, protecting consumers from high and volatile gas prices and ultimately securing energy security and independence”.
Ofgem's estimates indicate that between 60% and 70% of high-voltage transmission schemes never connect to the grid. More than half of the projects in the queue have to wait for five years or longer before being offered a connection date.
Ofgem and National Grid have butted heads over the best way to solve these wait times.
National Grid PLC (LSE:NG.) chief executive John Pettigrew recently said his company should be permitted to do “anticipatory investment” to help renewable projects’ connections, rather than wait for specific agreements to be signed.
Brearley intends to tell the Birmingham conference that Ofgem has “removed all barriers to National Grid investing in grid expansion and upgrades ahead of applications” through its invest and connect policy.
In line with the goal of decarbonising the UK power system by 2035, National Grid's electricity system operator (ESO) has released a plan to expedite grid connections, which involves allowing developers to leave the connection queue without facing financial penalties, introducing new contracts based on project progress, and facilitating faster connections for electricity storage sites.
These changes are expected to enable 70% of projects in the pipeline with connection dates after 2026 to connect between two and 10 years earlier.