Friday, 17th April 2026

UK Government

The UK government’s Department for Energy Security and Net Zero (DESNZ) and energy regulator Ofgem have reaffirmed their commitment to delivering connections reform as a central pillar of the country’s Clean Power 2030 ambition, which is expected to unlock up to £200 billion in investment in network infrastructure and energy projects by the end of the decade.
Under the reformed connections process, 221 GW of projects that had applied for firm grid connections but were either not required for 2035 or no longer progressing have been removed from the main queue. Additional capacity has also been filtered out as many projects voluntarily moved into Gate 1, resulting in a significantly streamlined and more credible project pipeline. Early indications suggest that the prioritised Gate 2 (Phase 1) queue now contains sufficient capacity across most technologies to meet 2030 deployment targets.
However, the reform programme has encountered delays due to historical data inaccuracies in connection agreements, requiring the National Energy System Operator (NESO) and network companies to revisit network studies and planning assumptions. Authorities have stressed that further delays are unacceptable and have called for a coordinated response, including regular public progress reporting to enhance transparency and accountability.
As projects begin receiving updated connection offers, the government has emphasised the importance of timely and proactive communication between NESO, network operators, and developers to ensure emerging issues are identified and resolved quickly.
A key concern emerging from the queue formation process is the disproportionately high volume of battery storage projects progressing to Gate 2. While the government and Ofgem strongly support energy storage as a critical enabler of a low-carbon power system helping balance renewable generation and reduce reliance on unabated gas the current pipeline exceeds policy expectations.
Despite the removal of non-viable projects, the remaining battery storage capacity still exceeds the upper range outlined in the Clean Power 2030 Action Plan by 14.8 GW, and is 61.7 GW above projected system needs for 2035. This oversupply has been partly driven by “protection” measures in the connections methodology, which prioritise advanced projects with planning consent, Capacity Market agreements, or near-term delivery timelines. Additionally, battery projects typically secure planning approvals faster than other technologies, accelerating their progression through the queue.
In response, the government, Ofgem, NESO, and network companies are assessing the implications of this surplus to ensure system efficiency and minimise costs for consumers. Potential mitigation measures include technical solutions such as increased use of bay-sharing, alongside policy interventions.
Officials also expect that some battery projects will exit the queue naturally, given their reliance on merchant revenue models without dedicated support schemes. Industry participants are already advancing proposals through the code modification process to introduce financial mechanisms that encourage the withdrawal of non-viable projects. This proposal has been granted urgency, reflecting the need to prevent unnecessary network investment and redesign.
Authorities have urged developers to carefully reassess the commercial viability of their projects and respond promptly to connection offers. Delayed exits of non-viable projects could lead to inefficient capital allocation, increased costs for consumers, and disruptions to other projects awaiting connection.
Looking ahead, policymakers are considering further reforms to manage future oversupply risks. NESO’s annual consultation includes options to limit eligibility for future Gate 2 progression to battery projects with secured revenue support mechanisms, such as Cap and Floor agreements for long-duration energy storage. This could help better align project pipelines with system needs.
The government and Ofgem have invited stakeholder feedback on these proposals and reiterated their commitment to maintaining a fair, efficient, and strategically aligned connections process.