Ofgem and NESO’s Grid Reform To Boost Renewables

A Welcome Step Towards a Greener Grid

In a move that will benefit hundreds of clean energy projects across England and Wales, Ofgem has approved a proposal from the National Energy System Operator (NESO) to raise the threshold at which distribution-connected projects require transmission system assessment—from 1MW to 5MW. For developers and businesses focused on renewables, this change could open the door to faster, more cost-effective connections to the grid. At Renewable Energy Solutions, we see this as a major step forward for local, low-carbon generation and for the nation’s broader Net Zero ambitions.

What Ofgem's Grid Reform is Changing—and Why It Matters

Under the previous rule, any project over 1MW connecting to the distribution network required a full assessment of its impact on the national transmission system. This added complexity, time, and potential cost for developers, particularly for smaller or community-scale renewables.

With the new 5MW threshold, projects in that range will now be able to connect to the distribution grid more swiftly, avoiding lengthy and sometimes unnecessary assessments. Ofgem estimates this could positively affect around 350 projects, totalling nearly 700MW in potential generation capacity—a significant boost to renewable development across the country.

Who Benefits from This Reform?

Ofgem’s grid reform will primarily benefit medium-sized projects such as solar farms, battery storage installations, onshore wind, and other distributed energy resources. Many of these projects fall within the 1–5MW bracket and are essential to a decentralised and resilient energy system.

This reform is especially promising for:

Community energy schemes
Local authorities implementing renewable plans
Businesses investing in on-site generation
Developers looking to bring projects online more quickly and economically

Supporting the Clean Power 2030 Mission

The move aligns closely with the UK Government’s Clean Power 2030 mission, which aims to decarbonise the electricity system by the end of the decade. By reducing barriers to entry, the threshold increase supports the timely deployment of technologies that will help deliver on Net Zero commitments.

It also sits within a broader set of reforms designed to improve grid connections and unlock low-carbon capacity—one of the biggest obstacles facing the sector today.

Scotland: Still Waiting on Reform

Ofgem’s grid reform currently applies only to projects in England and Wales. In Scotland, a different assessment framework remains in place, though Ofgem has signalled that work is underway to explore a similar revision north of the border—if it is deemed technically feasible.

For now, Scottish developers will need to adhere to the existing connection rules, but momentum for reform across the UK is clearly building.

More Power to Progress

Ofgem’s grid reform is more than just a technical tweak—it’s a meaningful enabler for the energy transition. With fewer administrative hurdles and a clearer path to connection, more renewable projects will reach completion sooner, helping to decarbonise the grid and strengthen energy security.