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UK Axes Some Stalled ‘Zombie’ Projects in Grid Connections Queue

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An electricity pylon beyond a row of residential houses near Stevenage, UK, on Wednesday, Sept. 4, 2024. The UK's energy price cap will rise 10% in October, pushing up bills for millions of homes just as the winter heating season begins. Photographer: Chris Ratcliffe/Bloomberg (Chris Ratcliffe/Bloomberg)

(Bloomberg) -- UK electricity network operators have axed 10 gigawatts of stalled “zombie” energy projects, cutting the queue that’s holding up infrastructure critical to the country’s clean-power transition.

Network operators and regulator Ofgem have worked with the system operator to eliminate projects that were either indefinitely stalled or speculative, according to the Energy Networks Association. 

That should spur progress toward the UK’s clean power goal for the end of this decade, although some projects are only being offered grid connection dates in the late 2030s, according to the government. The lack of certainty for investors is slowing the rollout of renewable energy.

“Removing these stalled schemes is a necessary step to make the UK’s grid connection process faster but it’s just one part of the solution and work must continue at pace,” said Lawrence Slade, chief executive of the Energy Networks Association.

Cutting the zombie projects still leaves a queue of 726 gigawatts of transmission and distribution schemes, according to the association. That’s over a third more than required to reach the UK’s most ambitious 2050 decarbonization targets, it said.

Projects in the queue will be scrutinized to ensure they are progressing as scheduled and meeting contractual milestones. Network companies are working closely with developers to address the reasons behind delays, with connection contracts terminated for projects that have completely stalled.

©2024 Bloomberg L.P.