U.K. Ditches 'Zombie' Projects to Free Up Power Grid

Written by Martin Lynch, European News Editor for IIR News (Galway, Ireland)

Summary

The U.K.'s clogged grid connection system has been overhauled to remove so-called "zombie" power and storage projects that have been blocking projects that are ready to go.

Overhauling the Grid

The U.K. has overhauled its grid connection system by ditching most of the 700 gigawatts (GW) of power and storage projects in the queue that have been stopping shovel-ready projects from getting started. 

Of the 700 GW of projects in the queue for connection to the national grid, only 283 GW of energy and storage projects have survived the cull, along with 99 GW of transmission-connected demand. A glut of speculative projects saw the connection queue grow tenfold in five years, resulting in connection delays of up to 15 years for projects that are actually ready to go. 

The New Grid

The two-year process of overhauling the old 'first come-first served' grid connection system was carried out by the National Energy System Operator (NESO). Its goal was to remove speculative generation and storage schemes and introduce a readiness-based system intended to shorten connection timelines. It has called what's left 'shovel-ready energy projects' that will be prioritised for connection to the electricity networks, unlocking £40 billion (US$54 billion) in clean investment annually and "driving progress towards the government's Clean Power by 2030" target. Many of those culled projects have found themselves either out of the queue or relegated to timelines further out, such as 2035 and beyond. Projects seeking to reapply for inclusion in the connections process will be able to do so from late 2026 but they will have to show a "readiness to progress and strategic alignment with the Government's Clean Power Action Plan."

A Broken System

"We inherited a broken system where zombie projects were allowed to hold up grid connections for viable projects that will bring investment, jobs and economic growth," said U.K. Energy Secretary Ed Miliband. "To fix this we embarked on ambitious, once-in-a-generation reforms to clean up the queue and prioritise the projects that are ready to help us deliver clean power by 2030. Every solar farm, wind farm or battery storage facility we connect to the electricity grid brings us closer to clean, homegrown power that we control--so we can get bills down for good." 

Which Sectors Saw the Biggest Changes?

The sector hit hardest was the storage sector, in particular battery storage, which accounted for a massive 240 GW of the 700 GW in the old queue. It now accounts for 83 GW - still the largest single sector - but now cleared of projects that had not already secured proper permissions, with the rest prioritized to those that will be connected by 2030 and the rest by 2035. Solar projects, which accounted for 210 GW of the queue, have been reduced to less than 70 GW. Offshore wind projects were reduced to less than 90 GW, from 110 GW while there was little change in the share of onshore wind projects. Hydrogen projects will also have a higher profile under the new system. 

The Surge in Data Centers

Data center projects are being prioritized for transmission connections under the new setup with 100 GW catered for. Just over 10 GW of that has been prioritized by 2030, with the bulk pushed out to 2035. Data centers will account for up to 9% of the country's electricity demand by 2035, compared to 2.5% in 2025, according to the U.K.'s transmission and distribution operator, National Grid (London). In November it said that data center connection requests were rocketing and would account for half of the 19 GW of new capacity it would connect by 2031. 

Industry Reaction

"We are pleased to see the results of NESO's Connections Reform," said Clare Jackson, chief executive officer of Hydrogen U.K. "Hydrogen has an important role in the U.K.'s Clean Power ambitions, supporting energy demand while driving industrial decarbonisation. The results open the door and free up space for further hydrogen innovation and accelerated project development."

Dhara Vyas, chief executive officer of the U.K.'s leading energy trade association, Energy U.K., added: "A stable, secure energy system depends on ensuring that we can connect more clean power generation to our grid in the coming years. Addressing the issues in the connections queue is critically important and today marks an important milestone with the announcement of a new project pipeline that will unlock investment across the country."

Key Takeaways 

• The U.K. has radically reformed its clogged grid connection system by ditching so-called "zombie" power and storage projects.
• Of the 700 GW of capacity in the old queue, just 283 GW of energy and storage projects remain, along with 99 GW of transmission-connected demand.
• The big winners are energy storage, solar, hydrogen, offshore wind and data centers.

About IIR News
IIR News is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).