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Reading Time: 2 minutesIn a significant development for the energy and industrial sectors, the United Kingdom and the European Union...
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‘Zombie’ Projects Scrapped as Ofgem Clears Way for Renewables
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Ofgem has announced a major overhaul of how projects access the electricity grid. This move aims to fast-track clean energy developments while clearing out the backlog of so-called ‘zombie’ projects – schemes that have stalled for years with little to no chance of being built. The changes represent a bold shift in policy and have significant implications for energy developers, grid operators, and the UK’s net zero ambitions.
How 'Zombie' Projects Have Stalled The Grid
For years, developers across the UK have faced lengthy delays when trying to connect renewable projects to the electricity grid. One of the biggest obstacles has been the sheer volume of queued projects – many of which are no longer viable. ‘Zombie’ projects have occupied grid space without progressing, preventing newer, cleaner, and more shovel-ready developments from moving forward.
Currently, over 1,000 projects are waiting for grid connection dates. Some of these are not expected to go live until the late 2030s, creating bottlenecks that stall investment, undermine decarbonisation targets, and limit the UK’s ability to meet growing electricity demands from sectors like transport and heating.
The New Grid Rules
To tackle this issue, Ofgem has approved new rules that allow grid operators – specifically the National Energy System Operator (NESO) – to remove or downgrade projects that aren’t making progress. Developers will now need to hit key milestones to keep their spot in the queue. If they fail to demonstrate progress, they risk losing their connection slot altogether.
This creates a more agile and realistic system, giving priority to projects that are ready to deliver and can contribute to the grid in the near future, and removing ‘zombie’ projects from the queue.
Clearer Criteria
The updated framework introduces technical and financial milestones developers must meet, including submitting planning applications, securing funding, and showing construction readiness. NESO can now implement a “first ready, first connected” approach, moving away from the outdated “first come, first served” method.
This shift favours efficiency and rewards developers who are better prepared, helping to streamline the grid connection process and accelerate deployment.
Unlocking Grid Space
According to the NESO, these zombie project reforms could free up as much as 80GW of capacity by 2030 – around the equivalent of the UK’s entire current electricity demand. This opens the door for faster deployment of renewables such as wind, solar, and battery storage, while reducing grid congestion and delays.
It also supports broader goals around energy security, cost stability, and reducing reliance on fossil fuels.
Industry Welcomes the Move
Many in the sector have welcomed the changes. Developers, trade bodies, and clean energy advocates have long argued that reforms were needed to bring outdated processes in line with the UK’s net zero ambitions.
That said, there’s also a note of caution. Smaller or early-stage developers may struggle to meet the new benchmarks and could lose their place in the queue. Ofgem has committed to monitoring the impact and ensuring the reforms don’t unfairly disadvantage promising projects.
Ofgem removing ‘zombie’ projects from the national grid queue is a significant step toward a more flexible and efficient energy system. It tackles one of the key challenges holding back progress on clean energy and sets a clearer path to unlocking investment and capacity.
As the UK pushes toward its net zero targets, streamlining the way projects connect to the grid is essential. These reforms mark a critical shift in how the energy system prioritises progress, and they could be just the boost the sector needs.