The Energy Transition | TMO4+ connections reforms could halve the connections queue
Published on 20th Aug 2024
Welcome to our top picks of the latest energy regulatory and market developments in the UK's transition to net zero.
This week we look at the anticipated effects of the "first ready, first connected" reforms, the UK's Largest Subsea Cable Project, SSEN's Flexibility Market Platform, and more.
"First ready, first connected" reforms set to cut connections queue
Recent data from Ofgem has indicated that the proposed "first ready, first connected" transmission network reforms are expected to cut the combined transmission and distribution connections queue down from 725GW to between 240GW and 460GW. The reforms, which as we have previously reported on here and here, are also known as TMO4+ and are currently being developed by the Electricity System Operator (ESO). However, the expected reduction is not enough to meet the forecasted demands of the energy system by 2030 or even 2050, according to discussion from Ofgem's Connections Delivery Board.
The ESO has previously warned that, if not adequately managed, the queue could pass 800GW by the end of 2024. In its July discussion, the Connections Delivery Board contemplated two further criteria to incorporate into the TMO4+ process to ensure that connected projects are "ready and necessary for the system". Namely, the Board considered the introduction of:
- Technical or technology criteria which comprise:
- technical restrictions on what projects can connect to transmission or distribution networks at specific voltages; and
- limits on how much of each technology type can connect each year, in certain locations, in alignment with Great Britain's strategic energy needs.
- Financial criteria (either instead of or in addition to the technical or technology criteria) involving the possible implementation of additional fees, charges or securities for projects in the queue beyond those currently included within the TMO4+ design.
More developed recommendations will be posited to the Board by the ESO in advance of its next meeting in September.
Ofgem approves UK's largest subsea cable project: Eastern Green Link 2
Ofgem has confirmed its final approval on costs associated with the £4.3 billion Eastern Green Link 2 (EGL2) project, giving the green light for construction to begin on the UK's biggest subsea connection project.
Running between Aberdeenshire and North Yorkshire, the 525kV 2GW connection will be delivered as a joint venture between National Grid and Scottish and Southern Electricity Networks Transmission. EGL2 will be the UK's single largest electricity transmission project, utilising a high voltage direct current subsea cable over 500km in length and is anticipated to be operational by 2029. It will enable access to renewable energy generated in Scotland and provide enough energy to power around two million homes. As we previously reported, contracts for the development of the project have been awarded to Prysmian, Hitachi Energy and BAM.
Ricky Saez, EGL2 Project Director, commented that Ofgem's decision, "[i]s a major milestone, and testament to the hard work of our project teams...Not only will EGL2 play a major role in bolstering energy security and contributing to net zero targets, it will also provide a lasting legacy in local communities where our teams are already supporting local environmental initiatives that enhance community wellbeing."
This project is one of four large-scale transmission connection projects designed to provide greater access to sources of renewable energy located in Scotland. The EGL3 is a proposed 680km subsea link between Aberdeenshire and Norfolk and is due for delivery in 2033, while the EGL4 link would run between Fife and Norfolk. As previously reported, EGL1 has received provisional budget of £2 billion.
SSEN Distribution opens first flexibility auction on new ElectronConnect platform
Scottish and Southern Electricity Networks Distribution (SSEN) has announced the successful adoption of the ElectronConnect platform and has launched the first flexibility auction round hosted by the platform since it partnered up with the London-based power software outfit Electron earlier this year.
The ElectronConnect platform operates as an integrated branch of SSEN Distribution's Market Gateway platform to streamline the market entry process for Flexibility Service Providers (FSPs) across central southern England and the north of Scotland (the areas managed by SSEN). The introduction of the new Flexibility Market Platform was first identified as a key enabler for further growth in SSEN's DSO Acceleration Strategy and Action Plan which was published in October 2023. The platform has encouraged an increasing number of new FSPs to sign up with SSEN to participate in the flexibility tender process.
This first auction round will be open to those companies that currently have an Overarching Agreement Contract with SSEN. Later in the year, SSEN will allow new companies to secure Overarching Agreement Contracts for subsequent auctions, the first of which will take place in early September 2024. Subsequent auctions will take place each month throughout the autumn and winter period.
Over the last year, SSEN has procured 700MW of flexibility which it aims to boost to 5GW by 2028 through the ElectronConnect platform. Across the remainder of the network, four of the remaining five distribution network operators in Great Britain currently use the Piclo Flex platform to run their flexibility tender process.
Electron's Chief Commercial Officer Chris Broadhurst commented that "the launch of the first live auctions on ElectronConnect for SSEN Distribution is a fantastic milestone. With 5GW of flexibility targeted by 2028, SSEN has a clear vision for flexibility at scale, and Electron is proud to be partnering with SSEN to help make this vision a reality."
SSEN flexibility market manager Catherine Winning added "this is all exciting for us, as flexibility plays such a key role in enabling the transition to net zero in a cost-effective way – quickly and effectively maximising the capacity of our existing network."
Port of Aberdeen £4 million shore power project begins construction
Scotland's largest commercial shore power system has begun construction in the Port of Aberdeen. The system is being installed by PowerCon, a conversion solutions engineering and manufacturing company, and will provide clean energy to vessels at the seven berths at the port.
The shore power system will see clean energy being delivered to ships through quayside connection points, meaning ships are able to shut off their engines whilst at berth, reducing carbon emissions by 80% compared to the use of marine gas oil. Maritime Minister, Mike Kane, has said that the "announcement marks a significant step forward in achieving [sustainable jobs and a cleaner environment], putting the UK at the forefront of sustainable port technology and anchoring its position as a global leader in tackling climate change". The Port of Aberdeen has committed to a net zero target by 2040 and the shore power system forms part of the £55 million investment to achieve this.
The demonstrator project, named the "Shore Power in Operation", is the first in the UK and is being part-funded by the Department for Transport's Zero Emissions Vessels and Infrastructure Competition. It will deliver its first power in March 2025.
Bob Sanguinetti, CEO, Port of Aberdeen, said the project is "pivotal on our journey to net zero by 2040" and is "a great example of public and private partnership to drive forward advances in delivering green infrastructure for ports".