![]() The open letter is a useful recapitulation of action already being taken by Ofgem, such as the “c.£20 billion” Accelerated Strategic Transmission Investment or ASTI framework (see further here), and of possible agenda items for the future (such as “ options which could deprioritise projects which are not making progress to allow well-developed projects to proceed“). ![]() They must also be resilient to the impacts of the various wider-ranging energy market and system planning reforms playing out over the remainder of this decade (including the Review of Electricity Market Arrangements ( REMA) and introduction of a Future System Operator ( FSO), which, as Electricity System Operator, will take over the current roles of NG ESO). They must support improved coordination across onshore/offshore and transmission/distribution networks. They must begin to deliver results as soon as possible, with impacts seen by 2025. Reforms must deliver benefits to current and future consumers, as well as accelerating progress towards net zero. It also sets out and elaborates some key principles that will guide its approach. Ofgem emphasises that any move towards the more radical approaches of Stages 3 and 4 will “depend on the effectiveness of the earlier stages in meeting the outcomes”. Figure 2 of that letter, reproduced below, gives a useful overview. It provides a good starting point for considering the ways in which the systemic problem of grid connection is being addressed. On, Ofgem published an open letter on future reform to the electricity connections process. The crisis in connections has featured prominently in recent speeches by Ofgem’s CEO, Jonathan Brearley (such as here). It regulates NG ESO, the owners of the transmission networks, and the distribution network operators ( DNOs) it controls in large measure what they can invest through its regulation of network charges and in most cases it determines whether proposed modifications to industry codes are made. No single entity can solve the problem of grid connections, but Ofgem has a key role to play. In this post, we focus on some key steps that National Grid ESO ( NG ESO) took during 2023 to remedy the connections crisis. We will cover the connections-related announcements made by the government and Ofgem alongside the Autumn Statement (see further here, here and here) later in this series. The first post, setting out the background to the crisis, is here.Ĭonnections reform took centre stage in a string of government announcements about energy and infrastructure topics in the Chancellor’s Autumn Statement of 22 November 2023.
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