• Connection dates up to six years earlier offered to projects with the potential to supply 600,000 homes

• Importance of planning reform reaffirmed as some developers reply they cannot take up earlier dates because of planning delays

Another 12 Scottish renewable generation projects have been offered earlier connections to the transmission system in a further success for the interim reforms to industry rules developed by National Grid.  Announced in May, the reforms are in place while Government consults on longer term measures to update the connections regime.  Totalling 900 Megawatts (MW), enough to supply 600,000 homes, the projects have been offered connection dates up to six years earlier.

This latest announcement, double the capacity of the first phase of 450 MW of projects offered earlier connection dates unveiled in May, means that no generation project in Scotland is now waiting for wider reinforcements to the existing transmission system to be completed and all can connect as soon as the local connection to the grid is ready.  Generators in England and Wales are expected to be offered earlier connection dates in the near future.

But the need for urgent planning reform has been underlined as developers for 190 of the 900 MW, or nearly 20% of the capacity, have responded by saying that they cannot accept the earlier connection dates they requested because planning delays are holding them back.

Britain’s planning system is widely recognised as the key barrier to renewables and other vital new energy infrastructure, from new nuclear build to the transmission investment necessary to connect up new generators.  Currently only 32% of the future renewable generation capacity with connection agreements for the British transmission system has planning consent.

Both the UK and Scottish Governments have been pursuing planning reform and the new Scottish National Planning Framework came into force on 3 August.  While the delayed projects mentioned here are, like other planning applications lodged before this date, progressing under the old arrangements, these reforms will help address the planning issue in Scotland for the future.  In England and Wales, the Planning Bill received Royal Assent in November 2008, although full implementation is awaiting the completion of the National Policy Statements that underpin it.

Commenting on the announcement, Nick Winser, National Grid’s Executive Director for Transmission, said:

“This latest wave of offers of earlier connection dates is more good news for renewables, and another success for the work National Grid has been leading to update industry rules on connections.   We have been at the heart of providing many of the solutions for Britain’s energy revolution, from developing changes to complex industry rules to planning the strategic investments for the transmission network to establishing how we can continue to balance supply and demand when wind energy is a more significant part of our energy mix.

“The projects suffering planning delays show the vital importance of the reforms being pursued by the UK and Scottish Governments, which have our wholehearted support.  They are crucial to the success of the commendable Low Carbon Transition Plan.  The last step remaining now is for the National Policy Statements for England and Wales to be finalised, and we hope this will happen as soon as possible.”

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For further media information only, please contact Stewart Larque, National Grid Media Relations, on 01926 655274.

The 900 MW of projects offered earlier connection dates

Although the projects cannot be named, as the details of the individual offers are subject to commercial confidentiality, they comprise:

• 12 projects totalling 900 MW with an average size of 75 MW each
• connection dates being advanced by up to 6 years
• the biggest advance is for a project with a 2018 connection date being brought forward to 2012.

Interim Connect and Manage

Ofgem announced in May 2009 that it was approving National Grid’s proposed changes to industry rules governing transmission access, subject to the timely and successful implementation of enduring access arrangements (currently the subject of consultation by Government), allowing the initial 450 MW of projects to be offered earlier connection dates:

http://www.nationalgrid.com/uk/Media+Centre/PressReleases/2009/08.05.09.htm

These short term measures formed an important part of the package of reforms set out by Ofgem in the final report of the Transmission Access Review to improve grid access arrangements.  The new “connect and manage” regime means that generators will no longer need to wait until wider reinforcements to the existing transmission system to be completed and all can connect as soon as the local connection to the grid is ready.  National Grid will manage any occasional constraint issues this causes to the network.

Connecting up renewables – National Grid’s work summarised:

For the short term, National Grid has already delivered:

• new extremely detailed studies of the technical capability of the transmission network allowing the most to be squeezed out of the existing system in advance of planned reinforcements

• using guidance from Ofgem allowing a more pragmatic interpretation of industry rules to prioritise projects that are ready to connect rather than a strictly “first come first served” basis as was necessary before

• using further guidance from Ofgem that has allowed National Grid to consider the benefits of carbon savings from allowing early connections for renewable generators, alongside any additional “constraint costs” (the costs of managing congestion on the system), as part of the cost benefit analysis used to determine whether projects can connect in advance of planned network reinforcements

In the medium term:

• National Grid’s Interim Connect and Manage proposals adapt the existing connections regime so that generators will no longer need to wait until wider system reinforcements are complete and can connect as soon as the local connections are ready.  National Grid will manage any occasional constraints this causes on the network – hence “connect and manage”.  In parallel with the work undertaken to facilitate the earlier connection of renewables, National Grid has consulted on and proposed changes to industry rules to help reduce the overall cost of managing constraints on the transmission network

For the longer term, National Grid has:

• played a central role in developing the blueprint for the strategic investment necessary in the network that has been agreed by the Energy Networks Strategy Group, bringing together Government, Ofgem and the transmission companies

• developed the proposed industry rule changes to meet the aims of Government’s Transmission Access Review (the fundamental changes to the industry rules to replace the Interim Connect and Manage arrangements) and welcomed the Government’s consultation on the way forward after some of these were blocked by the industry’s Connection and Use of System Code Panel

• lobbied the UK Government on the right reforms to the planning system while the Planning Bill was under development.

National Grid

National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. We play a vital role in delivering gas and electricity to millions of people across Great Britain and northeastern US in an efficient, reliable and safe manner. We believe the power of action can play a major role in safeguarding our global environment for future generations and tackling the effects of climate change, providing all our customers with the highest standards of service through network investment and through our talented, diverse workforce.

National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high pressure gas transmission system in Britain and its distribution business delivers gas to 11 million homes and businesses.

National Grid also operates the National Gas Emergency Service freephone line 0800 111 999*.

*All calls are recorded and may be monitored.

www.nationalgrid.com