Back
Legal

A transformative moment for grid connection

The electricity connections process in Great Britain is undergoing radical change through the implementation of connections reforms collectively known as TMO4+. It is designed to speed up grid connections and support delivery of net zero targets.

As those in the industry will know, under the current system, energy projects that need a grid connection must wait in a queue which operates on a “first come, first served” basis. This has led to significant delays, with some projects waiting years to connect. The backlog has been worsened by “zombie” projects that have stalled in terms of progress and then held up more developed projects. Furthermore, the pipeline of projects has not been aligned with Great Britain’s future strategic energy needs, set in accordance with the government’s upcoming target to achieve clean power by 2030 (CP30).

First ready and needed, first connected

TMO4+ is a comprehensive overhaul of the grid connections system, towards a “first ready and needed, first connected” process. In April, TMO4+ was approved by Ofgem, as the energy regulator for Great Britain. It is expected to come into force from June, pending the implementation of its regulatory framework.

TMO4+ will apply to existing projects already in the queue and new projects applying for grid connections. It will introduce a “gated” process for projects to receive connection offers. Following the initial assessment of the existing queue (which is intended to start in the summer), projects will be able to apply within twice-yearly application windows.

Under Gate 1, projects will be given indicative connection offers. Under Gate 2, eligible projects will then receive a full-form offer with a confirmed connection date and location. To proceed to Gate 2, projects must meet eligibility criteria requiring them to demonstrate “readiness” and “strategic alignment” (ie that they are needed for CP30).

The readiness criteria require a project to have secured necessary land rights and to have sufficiently progressed planning.

The strategic alignment criteria require a project to align with the CP30 plan, which sets out capacity requirements in terms of technology type and location.

TMO4+ includes “protections” for “significantly progressed” projects, which will guarantee their place in the queue if they meet specific conditions. These conditions include projects which are due to connect before the end of 2027 and have received planning consent, or those which have been awarded certain government subsidy support. Provided these meet the readiness criteria, they will be automatically deemed to meet the strategic alignment criteria. The protections aim to ensure proportionality in applying TMO4+ reforms, and to boost investor confidence for near-term projects.

Likely impacts of TMO4+

Stakeholders should prepare themselves for the impact TMO4+ will have across the energy sector.

Developers must ensure their projects satisfy the readiness and strategic alignment criteria to secure connection offers. Project timelines and capital expenditure will need to be focused on meeting these requirements. Once an offer has been received, developers will also need to be mindful of the ongoing milestones which must be met by queuing projects. These apply under the current system and will continue to apply under TMO4+ to projects which receive Gate 2 offers. In addition, the National Energy System Operator (NESO, as the delivery body for TMO4+) has proposed implementing a new fee payable by queueing developers on termination or reduction in capacity, aimed at deterring more speculative projects. However, introduction of this fee is under review.

Investors can benefit from increased confidence around how likely a project is to receive a connection offer, as TMO4+ develops. Where a project is based and its technology type will provide clearer investment signals, given the alignment of the queue to CP30 targets.

NESO and the network companies are aligning their processes with TMO4+, as the bodies responsible for issuing connection offers. The aim is to issue the first revised offers from autumn 2025.

For end consumers, TMO4+ aims to prioritise the connections of projects aligned with CP30 targets, reducing reliance on fossil fuels. Ofgem hopes it will deliver benefits through enabling decarbonisation of the electricity system, protecting energy security, and reducing exposure from future gas price spikes.

Significance of TMO4+

In the long term, the TMO4+ reforms are expected to reduce inefficiencies in the current connection process, and reduce overall waiting times. The reforms are intended to focus project development and investment where it is needed to meet CP30, marking a change towards more centralised planning of the electricity system.

While there will be challenges in ensuring the new reforms are implemented, TMO4+ represents a significant step towards net zero. In particular, the next few months will mark a key milestone as the implementation phase begins and initial revised offers are issued under the new reforms.

Amber Bains is an associate on the future energy team at TLT

Up next…