National Grid, the UK's electricity and gas transmission company, has released a new report titled “Delivering for 2035: Upgrading the grid for a secure, clean, and affordable energy future.” The report emphasizes the need for significant reforms within the planning system to achieve the country's target of decarbonizing the power system by 2035.
According to National Grid, decarbonizing the power system by 2035 requires a substantial and fundamental transformation in the scale and pace of developing new electricity network infrastructure. The report identifies five key areas that demand immediate action to revamp the UK's electricity networks.
The first priority area highlighted by National Grid is the reform of the planning system. The report suggests finalizing the National Policy Statements by summer, as an initial step, to provide greater clarity and authority on the necessity, speed, and urgency of energy-related Nationally Significant Infrastructure Projects (NSIPs). Streamlining the consenting process for major energy projects, shortening decision timescales, and aligning with the regulatory regime are also essential planning-related measures. Additionally, the establishment of a “Strategic Spatial Energy Plan” by 2025, outlining what, where, and when infrastructure needs to be built, is recommended.
The second focus area is ensuring the regulatory and governance framework is effectively structured for successful delivery. This includes reviewing the objectives and duties of current regulators and clarifying roles and responsibilities across institutions accountable for the energy transition. National Grid proposes strengthening Ofgem's statutory duties to explicitly support the delivery of net zero and resilience.
In the third area, National Grid aims to transform how clean energy connects to the grid to accelerate net zero projects. They propose shifting from a “first come, first served” to a “connect or move” connections process, with stricter thresholds for connection applicants. Projects that cannot connect would be moved out of the pipeline to avoid blocking or delaying others. The report suggests establishing strategic “capacity hubs” to enable a coordinated and innovative approach to connections, with capacity needs identified through a spatial plan. Moreover, a fast-track connection route for critical net zero projects would be created, prioritizing areas with the highest economic value.
RenewableUK's director of future electricity systems, Barnaby Wharton, responded to the report, stating that reforming the planning system to make it more agile is long overdue. Wharton emphasized the importance of faster decision-making for clean energy infrastructure and the need to anticipate future grid requirements to ensure timely infrastructure development. Wharton also supported granting Ofgem a new mandate to prioritize delivering net zero in all its decisions, which would accelerate the UK's transition to a modern and fit-for-purpose grid.
