Ofgem Proposes £5-8 Billion to Address Grid Connection Delays

The UK’s renewable energy ambitions are being hindered by severe grid connection delays, with some developers facing wait times of up to 15 years to connect their projects. These delays, caused by infrastructure bottlenecks and transmission constraints, pose a significant challenge to the government’s 2035 clean energy goals.

In response, Ofgem, the UK’s electricity and gas regulator, has introduced a proposed solution: a £5-8 billion Advanced Procurement Mechanism (APM). This initiative aims to address supply chain delays by enabling transmission owners to pre-purchase critical materials such as cables, switchgear, and steel. By securing essential infrastructure components in advance, the APM seeks to ensure that approved renewable energy projects are ready to proceed immediately after planning approval.

While the APM is not a complete fix for the UK’s grid connection issues, it represents a proactive step towards addressing one of the major barriers to renewable energy development. By focusing on supply chain efficiencies, Ofgem hopes to accelerate grid reinforcements and support the timely construction of new transmission systems.

If successful, the APM could play a pivotal role in reducing delays and helping the UK achieve its clean energy targets, reinforcing the country’s commitment to a sustainable energy future