Ofgem Moves to Slash ‘Zombie Projects’ as It Fast-Tracks Grid Access for Clean Energy Developers

In a significant step towards modernising the UK’s electricity grid, Ofgem has introduced sweeping reforms to accelerate clean energy deployment and eliminate years-long delays. Under the new rules, priority will be given to projects that are shovel-ready and aligned with national clean energy goals—a move that could see the first of these developments connected and operational as early as 2026.

At the heart of the shake-up is a targeted effort to eliminate so-called ‘zombie projects’ — stalled developments that have shown little progress yet continue occupying valuable space in the grid connection queue. The National Energy System Operator has already laid out plans to penalise such inactive projects financially, introducing charges for those effectively blocking the pipeline.

The urgency behind these changes is apparent: the grid connection queue has ballooned tenfold in just five years. According to Ofgem, some projects have been stuck in limbo for up to 15 years, a bottleneck stifling innovation and investment across the cleantech space.

But the reforms go beyond queue management. Ofgem is also pushing a more strategic, forward-looking approach to grid development that avoids redundant infrastructure builds and could save up to £5 billion in the process. Without this shift, those costs would likely land on consumers’ energy bills.

Ofgem’s chief executive, Jonathan Brearley, said: “The proposed connection reforms will supercharge Great Britain’s clean power ambitions with a more targeted approach.

“The reforms would cut through red tape, consign ‘zombie projects’ to the past and accelerate homegrown renewable power and energy storage connections as we head to 2030.

“Houses and hospitals, electric vehicle charging stations, data centres, and the emerging AI sector would also all benefit from the proposed streamlined fast-track approach, which would help boost energy security and drive down bills.”

Grid access has quietly emerged as one of the most significant barriers to investment in sectors critical to the UK’s energy and digital future. The Department for Energy Security and Net Zero (DESNZ) notes that since July 2024, over £38 billion has been committed to UK data centres alone—many of which have hit a wall due to grid constraints.

Energy Secretary Ed Miliband said: “In an uncertain world, our message to the global clean energy industry is clear; come and build it in Britain because we are a safe haven. If you want certainty, stability and security when it comes to your investments, choose Britain.”

Government ministers are positioning the reforms as an economic catalyst, one that will unlock green infrastructure, stimulate job creation, attract long-term investment, and help reduce the UK’s dependency on fossil fuels. Lower household energy costs, they argue, are a natural by-product of a more agile, modern grid.

However, not everyone is convinced that the changes will go far enough. Energy-intensive businesses call for additional, targeted support — particularly for on-site projects facing the same lengthy delays as utility-scale ventures.

To further support the momentum, Ofgem recently granted transmission owners the ability to pre-purchase vital infrastructure — including cables, steel, and switchgear — well before construction. The aim? To prevent future bottlenecks, better manage build-out costs, and instil confidence among investors watching the UK’s energy transition unfold.