Challenging grid connections - an update

On 5 December we hosted a Challenging Grid Connection Decisions webinar, since then matters have already moved on:

A number of significant updates were published on Monday 8 December, directly relevant to the topics we covered.

NESO Announcement: Connection Offers for Protected Projects

NESO have now formally confirmed that, from Monday 8 December, the first batch of protected projects scheduled to connect in 2026/27 will begin receiving formal offers with confirmed connection dates. These will be issued throughout December and into the new year, with remaining offers to be finalised by Q3 2026.

NESO has also announced that the next application window for projects seeking to apply or reapply for inclusion in the connections process will be open from late 2026.

• The NESO announcement is available here

Ofgem Publications (8 December)

Also on 8 December, Ofgem released two important publications:

1. Finalised Guidance on G2tWQ Disputes and Determinations

Ofgem has published its final guidance for disputes and determinations relating to the Gate 2 to Whole Queue (G2tWQ) exercise.

During our webinar on 5 December, we discussed the draft version, particularly in relation to strategy for potential legal challenges and availability of alternative remedies. The guidance has now been finalised following the November consultation, accompanied by a decision document explaining the background to the document’s development.

• Access the finalised guidance here

2. Decision on Introducing a Progression Commitment Fee (PCF)

Ofgem has also published its Decision (following consultation) to introduce a Progression Commitment Fee (PCF) to the Gate 2 connections queue, ‘as a way of incentivising timely reassessment of project viability’ in the Gate 2 connections queue.

Key points:

• The PCF applies to all generation projects that have accepted a Gate 2 contract offer and not passed Queue Management Milestone 1 (Initial Planning Consent).
• The PCF is a cancellation charge and CUSC Users will be required to post a security against the PCF which will remain in place until they have successfully achieved queue management M1.
• The PCF starts at £2,500/MW and increases by £2,500/MW every six months until it reaches a cap of £10,000/MW, thereby incentivising regular assessment and drop out if the milestone will not be met.

The consultation is available here and the Decision is here.

For further background and further context:

• Recording of the 5 December webinar
• Previous webinar in the Planning, Property and Power series

If you would like further guidance on any of these developments or wish to discuss their implications for your projects, please do get in touch.