As delays around the reform of the UK’s grid connection queue continue, energy regulator Ofgem and the Department for Energy Security and Net Zero have jointly written an open letter about the oversupply in the reformed queue.
It invites industry to exchange views on whether additional measures should be taken to address the oversupply of battery energy storage systems (BESS) in the grid connection queue, even after the Reforms of the National Energy Storage System Operator (NESO)..
The letter acknowledges “significant delays” in the programwhich it attributes to data errors in historical connection agreements and the need to rework network studies and planning.
The main focus is on the “emerging risks for certain technologies”, namely the oversupply of battery energy storage system (BESS) projects. The government’s Clean Power 2030 Action Plan (CP30) states that Britain will need between 23 and 27 gigawatts of energy storage capacity by 2030, and between 4 and 6 gigawatts of longer-term energy storage.
As a result of the reform program, a surplus of 14.8 GW BESS at grid scale is waiting to be connected by 2030, while 61.7 GW more than necessary is needed in 2035.
This was due to the number of protection measures in the connection methods for advanced projects. The letter, signed by Energy Minister Michael Shanks and Akshay Kaul, director general for infrastructure at Ofgem, said the effect of these protections, combined with the relative speed at which the technology can move through the planning process, has resulted in a “materially higher level of battery progression to Gate 2 than expected”.
One step that the regulator and the government have taken, according to the letter, is to engage with network companies about mitigation measures such as expanding bay sharing, in which multiple projects are connected via a single grid connection point.
DESNZ and Ofgem write that some degree of attrition is expected and that some industry parties have proposed encouraging this through additional financial measures.
This could see projects de-queued before network companies make significant investments in connections or reinforcements, allowing capacity to be reallocated at future dates.
In future grid connection rounds, for which NESO is currently consulting on methodology changes, it is possible that only battery projects with a guaranteed income support scheme will be eligible for a connection.
The letter encourages stakeholders to respond to the consultation, which raises broader insights on whether further steps should be taken to address the surplus of BESS projects.
