This week we look at the introduction of retrospective
applications to re-prioritise the grid connections queue, the
Scottish government’s adjustment to its 2030 climate change
target, the Industrial Growth Plan which outlines how the UK
government can meet 2050 offshore wind targets, and more.
Grid connections queue to be re-jigged by the introduction of
retrospective applications
The Electricity System Operator (ESO) has published initial proposals to develop the
“First Ready, First Connected” reform proposals (known as
TMO4), announced in December last year. The proposals will apply to
projects in the existing network connections queue, as well as to
new projects applying for network connections. Subject to
regulatory approval of urgent code modification proposals that will
accompany the new TMO4 propositions, the ESO hopes to implement the
reforms by January 2025.
Grid-connection delays have been cited as one of the biggest
barriers to the UK achieving its net-zero targets by 2035. In
recent years, the transmissions connections queue has been growing
at an exponential rate. At the current growth rate, the total queue
size is expected to nearly quadruple between October 2022 and the
end of 2024. The size of the queue and the rate of new applications
has led to average delays of over five years for projects applying
to connect to the transmission system.
Under the new “First Ready, First Connected” approach,
projects will enter the connections process at gate one but will
need to reach certain criteria to proceed through gate two, at
which point projects can obtain a queue position and a connection
date. Prior to reaching gate two, projects would only receive an
indicative connection date and connection point. The new proposals
seek to apply this model retrospectively across all projects in the
connections queue, in the hope that retrospective applications will
remove stalled projects, better utilise existing network capacity,
and enable earlier connection dates for viable projects.
This retrospective approach means that the indicative connection
date provided to projects at gate one in the existing queue may
move backwards if other projects progress faster. The reforms also
mean that new applicants under the reformed connections process may
displace the queue position of existing projects, irrespective of
when they originally applied.
There will be a transition period prior to the implementation of
these reforms, during which projects in the existing queue will be
given a period of time to demonstrate whether they have satisfied
the gate two requirements. Where projects meet the criteria, they
may request an accelerated connection date based on the reformed
queue. Where projects in the existing queue do not meet the
criteria, they will be moved back to an indicative connection date
and indicative connection point.
The ESO states that these reforms are part of a package of
necessary measures aimed at bringing quicker connections for
viable, net zero aligned projects. The changes will be accompanied
by further measures which are aimed at giving effect to the
Transmission Acceleration Action Plan, which aims to halve the
end-to-end build time of electricity transmission network
infrastructure from 14 to seven years. The additional changes will
also seek to provide the right regulatory obligations and
incentives for network companies to drive earlier connections.
Scottish government remains committed to net-zero but adjusts
climate change target
Following the report published last month by the Climate Change
Committee (the UK’s independent climate change adviser) which
found that Scotland’s 2030 climate goals were “no longer
credible”, SNP Net Zero Secretary, Mairi McAllan, has announced that the Scottish government will no
longer pursue its target to cut carbon emissions by 75% by 2030.
McAllan also confirmed that the Scottish government will drop its
legally binding annual targets on reducing carbon emissions, citing
UK backtracking and a lack of funding from the UK government as an
explanation for both measures.
Despite the changes, McAllan stated that Scotland is
“well-positioned” in its net zero journey, having nearly
halved carbon emissions since 1990. She also confirmed that the
Scottish government’s existing commitment to deliver net zero
by 2045 “steadfastly” remains.
McAllan confirmed that the Scottish government would expedite
and propose a minor legislative amendment to the Climate Change Act
to address the matters raised by the Climate Change Committee. This
change will adopt a targeted approach that is centred around
five-yearly carbon budgets, whilst retaining a legal commitment to
Scotland’s 2045 carbon reduction target alongside annual
reporting on progress.
McAllan also outlined further proposals that will make up the
Scottish government’s carbon action package, including:
- a new route map for the delivery of approximately 24,000 more
charge points by 2030 to support the switch to electric
vehicles; - a new national integrated ticketing system for public transport
in Scotland as part of the government’s target to reduce car
usage by 20%; - a consultation on a new carbon land tax looking at
incentivising forestation and renewable energy production on large
rural estates; and - rates relief to subsidise green energy for businesses.
UK must source 300 turbine towers every year to meet 2030’s
50GW offshore wind target
The Industrial Growth Plan, which sets out a plan to triple
offshore wind manufacturing capacity over the next ten years, has
been published by RenewableUK, the Offshore Wind
Industry Council, The Crown Estate and Crown Estate Scotland. The
Plan states that the UK will need to source 300 giant turbine
towers and 900 blades every year for the next six years to achieve
the government target of 50GW of offshore wind by 2030.
To achieve this target and combat supply chain constraints, the
IGP states that new strategic factories and manufacturing
capabilities are required. As there is currently no capacity in the
UK for the manufacturing of towers, the Plan prioritises five areas
for investment, including the design and manufacture of blades and
turbine towers.
The Plan comments that the creation of such manufacturing
capabilities has “significant potential of [stimulating]
economic growth and job creation“. More broadly, the
measures set out in the Plan would support an additional 10,000
jobs a year and boost the UK’s economy by £25 billion by
2035. The Plan envisages investment of £3 billion nationwide,
most of which would be privately financed. The anticipated return
to the UK economy would be just under £9 for every £1
invested.
Northern Powergrid delivers roadmap to net zero
Northern Powergrid has released its roadmap to net zero through its
DSO Implementation Plan for 2024/25.The plan sets out how Northern
Powergrid plans to reach net zero by adapting to the increasing
uptake in renewable energy and decarbonisation alongside an
increasing demand for electricity generally. It will also aim to
deliver £1 billion in customer benefits over the next five
years.
Northern Powergrid’s focus is on enabling individual
customers to decarbonise through adopting the use of electric
vehicles, heat-pumps and solar panels. For its commercial
customers, Northern Powergrid aims to add renewable generation and
storage to the distribution network. The DSO Implementation Plan
sets out how Northern Power will achieve this by expanding its
capabilities and taking on the functions of a distribution system
operation (DSO) to manage the complex power flows, innovation and
close collaboration.
The plan is centred around delivering the following five
outcomes:
- increasing customer and network flexibility;
- facilitating the development of new markets for customers;
- expanding the network and market data capture;
- transforming analysis capabilities; and
- enabling open energy system data sharing and joint planning
with stakeholders.
The plan sets out Northern Power’s vision to deliver of
“a smarter and more flexible energy system that enables
our customers to decarbonise efficiently“.
This article was written with the assistance of Khushal
Thobhani, Jessica Sawford, Charlotte D’Arcy, Luke Hopper and
Hannah Bradley, trainee solicitors.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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