Ofgem has said it will not provide relief to the National Energy System Operator (NESO) after it said it would not meet its obligations for projects eligible for Gate 2 network connection offers.
NESO has informed the energy regulator that it will not be able to fulfill its commitments for 210 of the energy projects that have been granted “protected” status under the Gate 2 provisions – 62% of the 340 projects that were eligible. Protected projects would keep their contractual connection dates in 2026 or 2027 as part of the connection reform process designed to prioritize projects ready for access to the electricity grid.
Ofgem said NESO and Transmission Owners (TO) were aware of the potential issues as early as June 2025, before the window for Gate 2 applications closed. This was followed by a formal letter in October requesting relief from obligations related to the grid connection offers.
The delays are largely network related, with some along with delays on the developer side and 75 projects delayed solely due to developer issues, Ofgem said.
In its response, Ofgem said: “We are both frustrated and disappointed that it is not possible for TOs and NESO to meet existing connection dates and connection points for all projects eligible for this protection, especially given the widely recognized importance of ambitious and reliable connection dates.
“At this time, no waiver will be granted from the NESO/TO obligations regarding the connection offers for these affected protected projects.”
However, the regulator said that in cases where the existing connection date is not met, TOs and NESO should provide “their best possible view of the most ambitious date” as it would not be “practical, efficient or in the interests of consumers or developers” to continue with unfeasible connection agreements.
“We will continue to investigate these factors to understand the root causes of the problem and to determine which parties are responsible, 8 with a view to reaching a conclusion on what action, if any, Ofgem can take,” the regulator said.
The revelations appear to point to some structural problems in the Gate 2 grid reform process, which was intended to speed up grid connections for renewable energy projects. NESO will now publish updated timelines for grid connections, which will introduce uncertainty into the UK renewable energy market, especially for developers. Ofgem has encouraged NESO/the TOs to engage with relevant developers to agree connection dates and points.
When the network reform process was discussed, some warned that the process was rushed and that one expansion of the network infrastructure should guide project development, alongside planning reforms, to make the process work.
