End of ‘zombie projects’: Britain launches grid connection reform

Britain is launching a sweeping reform of its electricity grid connection rules. National operator NESO is removing hundreds of speculative ‘zombie’ projects from the queue and introducing a system that prioritises projects genuinely ready for construction and that will support decarbonisation. The move responds to growing frustration among both the government and industry. The aim is to unlock investment and cut extremely long waits for grid connections.

A queue holding back the transition

The queue of connection applications has grown in recent years to more than 700 GW of total project capacity. It developed gradually as hundreds of new solar, wind and battery projects began entering the system, while connection rules remained unchanged. The original first-come, first-served model allowed capacity to be reserved with virtually no requirement to demonstrate that a project was genuinely ready.

The lack of systematic screening led to speculative applications. As a result, substantial capacity was reserved for so-called zombie projects with no prospect of being delivered—those lacking land rights, permits or financing. These projects blocked significant capacity and administrative resources while increasing investor uncertainty. The result was a distorted market and slower deployment of key technologies that could rapidly increase grid flexibility and help deliver Britain’s ambitious power-sector decarbonisation targets.

Renewables and battery storage to take priority

The new system is based on separating speculative projects from those genuinely ready for delivery. To achieve this, NESO used a combination of administrative checks and a technical assessment of the benefits provided by new infrastructure. In addition to ownership rights, documentation and financing, much greater consideration is now given to whether a project will support the operation of the grid.

Following the screening process that has now concluded, the British operator will assign connection dates to selected projects and release capacity previously blocked by ineligible applications. Of around 3,000 applications assessed, NESO selected 132 GW of capacity for priority connection by 2030 and a further 151 GW by 2035. Alongside offshore wind farms and solar projects, battery storage is the dominant priority, and the reform should significantly accelerate its deployment.

More than 300 GW of projects were deemed ineligible and will now lose their entitlement to reserved capacity. NESO expects some developers to challenge the decision in court. It is therefore offering incentive mechanisms intended to facilitate the process and minimise legal disputes. Developers that voluntarily withdraw their applications will be offered administrative relief when submitting future applications. At the same time, a dedicated appeals mechanism has been established for administrative review, giving developers the possibility of a faster remedy than through court proceedings.