Watt’s Next: Efforts to Ease the Capacity Crisis

The growing backlog of desired new grid connections in the UK – also known as the capacity crisis – is arguably the biggest obstacle to the country transitioning smoothly to using only clean energy.

To tackle the problem, and ease connection delays, the UK’s National Energy System Operator (NESO) has proposed raising the threshold for Transmission Impact Assessments (TIA) from 1MW to 5MW.

The urgent modification for distributed energy projects, known as CMP446, seeks approval before broader grid connection reforms take effect later this year.

Currently, all projects above 1MW in England and Wales must undergo a TIA, potentially leading to costly delays of up to a decade.

The proposed increase to 5MW would streamline the process, particularly benefiting behind-the-meter solar installations.

NESO’s plan follows a precedent set by Scottish and Southern Electricity Networks (SSEN), which raised its TIA threshold from 50kW to 200kW last year.

Fast-Tracking Could Boost Rooftop Solar Projects

The change could drive significant investment in rooftop solar, particularly on warehouses. As we have reported before, a 2022 study by the UK Warehousing Association and Solar Energy UK estimated that resolving grid challenges could unlock 15GW of solar capacity across the sector.

By bypassing the TIA requirement, projects under 5MW can move forward more rapidly, increasing investor confidence and accelerating deployment.

Recognising the importance of behind-the-meter projects in decentralised energy, Ofgem has agreed to fast-track the review process, moving the timeline up from April 2026 to May 2025.

This aligns with a broader industry shift toward integrating distributed energy resources into the grid.

While further refinements may follow based on industry feedback, the proposal marks a crucial step in tackling grid bottlenecks and unlocking much-needed renewable capacity. If approved, the reform could significantly boost the UK’s transition to a more flexible, resilient energy system.

Future-Proofing Britain’s Electricity Network

In the past week, the National Infrastructure Commission (NIC) has released its final report on the critical steps needed to prepare Britain’s low-voltage electricity networks for a future of significantly increased demand.

The report – Electricity Distribution Networks: Creating Capacity for the Future – outlines how the shift to electrification, across heating, transport, and industry, will drive a surge in electricity consumption. The NIC’s projections for the second National Infrastructure Assessment estimate that electricity demand will increase by around 50% by 2035 and double by 2050.

To accommodate this, £37-50 billion in investment will be required for the distribution network by 2050. This represents at least a doubling of current annual funding allocated for network expansion and upgrades, on top of routine asset replacements and maintenance.

The SNRG SmartGrid delivers flexibility, intelligently optimising solar PV generation and battery storage.

The Role of Flexibility in Meeting Energy Targets

Flexibility will play a key role in delivering clean power by 2030 and achieving net zero by 2050. Consumer-led flexibility – enabled by smarter network management, digitalisation, improved price signals, and advanced home and business technologies – could reduce the required investment in distribution networks by around 15%.

Microgrids will certainly play their part in reducing demand from the wider grid. SNRG’s Place Based Power model has already enabled many projects to connect in areas of severe grid capacity restrictions.

Key Recommendations

The NIC has outlined eight major system-wide reforms to future-proof Britain’s electricity networks:

1. Accelerate Digitalisation and Flexibility – Expand digital network management and deploy flexibility solutions that maximize benefits for consumers and the wider electricity system.
2. Review Security of Supply Standards – Update standards to ensure networks are designed for future energy loads without unnecessary overinvestment.
3. Enhance Strategic Planning – Introduce Regional Energy Strategic Plans to align stakeholders and de-risk proactive investment.
4. Reform Price Controls – Make price controls more effective by:

• • Aligning them with long-term social and economic benefits.
  • Adjusting funding mechanisms to prioritise upfront investment.
  • Accelerating essential upgrades.

1. Clarify Government’s Role in Network Regulation – Strengthen the government’s relationship with Ofgem to provide clearer strategic direction for proactive investment.
2. Improve the Grid Connection Process – Establish minimum service standards and stronger incentives to ensure timely, high-quality connections for all network customers.
3. Streamline Planning and Consenting – Reform planning and reduce delays for critical distribution infrastructure projects.
4. Address Workforce and Skills Gaps – Identify and implement measures to ensure Britain’s workforce is equipped to deliver the energy transition.

• The journey to Net Zero by 2050 requires bold steps, including adopting onsite renewable energy technologies like heat pumps, EV chargers, solar PV, and battery storage.
• However, securing the grid import and export capacity to support these solutions has become increasingly difficult, with rising costs, delays, and complexity threatening project viability and timelines.
• If waiting years, paying for reinforcement, or scaling back your ambitions isn’t an option, the SNRG SmartGrid may offer a smarter, faster, and more efficient way to electrify and decarbonise your project.

You can subscribe to SNRG’s Watt’s Next newsletter on LinkedIn here