Miliband reveals plans for getting renewables connected to grid more quickly

Under the current system, projects get a connection date on a first come, first served basis, regardless of when the project is due to start generating energy. As a result, some wind farms have been given connection dates for years after electricity production was due to begin.

The Government says there is currently over 60 gigawatts (GW) of new generation capacity – around 200 projects – that are waiting to be connected to the grid, including around 17 GW from renewable sources.

Improving access to the grid is seen by the Government as a key prerequisite for meeting its target of delivering 15 per cent of all energy from renewables by 2020.

The Government also believes it will boost investor confidence, because investors will know that projects will be given a connection date that fits in with their project development timeline.

This week’s initiative represents the first step in the Government fulfilling its promise, made in its Renewable Energy Strategy published last month, to take over control of access to the grid, ensuring that renewable projects get connected quicker.

For the first time, the Government will be making detailed reforms to grid access rules. Previously, reforms were proposed by industry and then approved or rejected by the regulator, Ofgem.

“Access to the electricity grid has been one of the key barriers to the generation of renewable energy in this country. We are determined to resolve this issue,” said Ed Miliband.

“We need these new projects to get hooked up to the grid as soon as they are ready – both to help tackle climate change and secure our future energy supplies.

“The Government will do whatever is necessary to bring about the transition to a low carbon economy and to give investors the certainty they need so that new renewable energy generation is built.”

The Government is now consulting with the industry on three ‘connect and manage’ models that would all have the effect of managing the queue and sharing the cost of connecting more plants to the system. 

The consultation and the ‘connect and manage’ approach has been welcomed by the Renewable Energy Association (REA), though a spokesperson for the organisation said it had not yet had a chance to form any views as it will have to consult with its members.

That said, the REA believes that any reforms directed by the Energy and Climate Secretary should be focused primarily on those changes needed to accelerate grid access for new generators. 

Ofgem has already approved interim arrangements to help new power stations connect more quickly, allowing around 1 GW of renewable projects in Scotland to be offered earlier connection dates. 

However, the Government has made it clear that this was only ever intended as an interim measure and wants to see enduring access arrangements put in place by June 2001.

The consultation ’Improving Grid Access’, which was launched this week, closes on November 1 2009.