RWE: Connections reforms yet to accelerate single project

RWE has yet to see a single project benefit from connections reforms implemented by government and Ofgem, according to the firm’s UK country chair Tom Glover.

In fact, Glover told MPs that instead of seeing faster connections, RWE is encountering more delays.

Giving evidence to the House of Commons environment audit committee’s inquiry into electrification, Glover said that grid connections remain the German-owned company’s “number one” headache in the UK.

New rules approved by Ofgem in November allow National Grid Electricity System Operator (ESO) to remove “zombie projects” from the connections queue if they fail to meet a number of milestone agreements related to securing planning consents and hitting construction targets.

The queue management milestones were implemented on 27 November and apply to both existing and future grid connection agreements.

Glover said it is “good to see” initiatives to tackle the problem, such as pressure on companies to surrender slots in the connection queue if they are not being brought forward.

However, he said RWE has not yet seen any on the ground progress as a result of these initiatives.

Glover said: “We now need to turn that into delivery. I have not had one connection yet get any faster; in fact, a few more delayed. We are hopeful that all those initiatives will come to something but the proof is in the pudding as to when we see those dates come forward.”

He also said there are huge delays in the planning system, pointing to solar farm projects which have yet to be determined after two years by local planners.

Glover was backed up by Rachel Fletcher, director for regulation and economics at Octopus Energy, who was also being grilled by the committee.

She said: “We were pleased to see last year that government and the regulator and the system operator did start to put their minds to this.

“What we are hoping we will see this year is talk translate into action with real projects getting much shorter grid connection offers and us all feeling much more confident that the renewable energy we need will be connected to the grid. That has to be the focus.

“We remain very optimistic about achieving the government’s targets of reaching a net zero electricity system by 2030. The technology is largely there.

“We know how to get there. We just need to focus and put a bit more effort into moving at pace to make the changes that are needed to achieve net zero, not just in time but at minimum cost possible to the country and to the customers in the country.”

At the end of 2023, there were 232 projects accounting for around 45GW of capacity that were due to connect by the end of 2025.

The ESO has already identified 144 “high risk” projects which are now at risk of having their grid connection agreements terminated this year.

In a letter to industry, sent in November, ESO executive director Fintan Slye revealed that engineering consultancy DNV has been brought in to inspect the 144 projects, “to provide an independent view of their ability to meet their contracted connection date”.

Lawyers have previously told Utility Week that the ESO’s proposal to cancel grid connection agreements is likely to lead to “bun fights” in the courts with disgruntled developers.