Committee publication · Correspondence · 5 February 2025
Correspondence from National Energy System Operator (NESO) relating to 11 December oral evidence session: supplementary evidence, dated 28 January 2025
From: Energy Security and Net Zero Committee
Inquiry: Work of the Department for Energy Security and Net Zero
Summary
NESO responds to the Energy Security & Net Zero Committee's follow-up questions from its 11 December oral evidence session. The letter addresses delivery timescales for critical network infrastructure projects (AENC, ATNC, SCD1), project attrition risks, connections reform implementation including a pause on new applications from 29 January 2025, solar deployment ranges with technology-specific caps, community energy grid connections, NESO's policy advisory role, and examples of EirGrid community engagement practices.
Key findings
- NESO confirms that accelerating AENC, ATNC (Norwich to Tilbury), and SCD1 (Sealink) projects to 2030 is 'a significant challenge' requiring fast-tracked Development Consent Orders and possible ASTI-type framework; non-delivery would necessitate 4TWh of renewable generation replacement and higher constraint costs.
- If critical projects fail to meet 2030 deadlines, the power system cannot achieve the government's 95% clean power generation target under either the Further Flex or Renewables and New Dispatch pathways.
- NESO announces a 'pause' on connection applications received as of 29 January 2025 to resource connections reform delivery, with exceptions for demand projects connecting directly to transmission network.
- Connections reform includes protections for projects with planning consent and zonal flexibility to substitute oversupply from one zone to address undersupply in adjacent zones, enabling 'ready' projects to connect despite exceeding permitted capacities.
- NESO will not prioritise community energy projects without government direction; defines lack of agreed definition of 'community energy' as a barrier, and proposes raising the 1MW transmission impact threshold to 5MW in England and Wales to reduce scope of community projects requiring transmission reinforcement.
Tone
ProceduralTopics
Key actors
Bill Esterson MP, National Energy System Operator (NESO), Kayte O'Neill, Department for Energy Security and Net Zero, Ofgem, National Grid Electricity Transmission, EirGrid, Planning and Infrastructure Bill
Notable line
“… if AENC & ATNC and SCD1 are not delivered then there would be more unabated gas on the system, with the need to replace around 4TWh of renewable generation.”
Key Quotes
“… acceleration of these projects will be a significant challenge”
“… if these projects were not delivered in time, the power system would not operate at the clean power definition set by government of 95% clean power generation”
“We are implementing new arrangements which will 'pause' applications received as of 29 th January, enabling us to dedicate resources to delivery of connections reform across”
“… if 'zone 1' were oversupplied by 500MW worth of 'ready' solar projects, but adjacent 'zone 2' was undersupplied by 500MW then, notwithstanding any negative impact on network constraints, we would allow the additional 500MW of solar from 'zone 1' into the new queue”
“Whether community energy projects receive any special designation or priority status would be a matter for government and as we set out during the evidence session on 11 th December, if the Government were to signal that community energy projects should be prioritised, that is a signal we would follow.”
“Our role, as set out in legislation, is to provide advice, analysis or information upon request by a Minister of the Crown or Ofgem”
Source · parliament.uk record ↗