Most energy developments require a connection to the National Grid and the ability to secure a connection has historically been run on a “first come, first served” basis. This has meant a backlog has built up whereby space on the network is being held for developers some of whom have not progressed their developments to the point where they can start exporting electricity.
In light of the ever increasing backlog, the connections process is now paused and is being updated and now hinges on a “first ready and needed, first connected” basis instead. The new process ensures developments that are ready, needed and viable are prioritised allowing them to be unlocked which helps towards achieving our fast approaching net zero and clean power targets.
Many developments or projects are already in the grid connection queue under the existing application regime but will lose their place if they do not engage and thereafter meet various milestones brought in by the updated process. To avoid dropping their grid queue place, they are now required to pass through a new step in the process known as “Gate 2” within the relevant timescales.
What is Gate 2?
Well, before Gate 2, there is an initial application stage and Gate 1. At Gate 1 the developer requires to provide letters of authority from all relevant landowners consenting to the use of their land for the project. Most projects that applied under the old regime are through Gate 1 and are at the point of waiting for Gate 2 to open. Gate 2 is the final gate a developer or project must pass through in order to secure a place in the grid connection queue providing them with a fixed connection date and location.
The developer must provide various pieces of evidence of “readiness” at this gate by demonstrating that the project is viable before the deadline if it is to be successful at winning a place in the queue. For example, demonstrating that the developer has the appropriate land rights for their project from the landowner for the proposed location and/or the appropriate planning permission.
What this means is that all projects with an existing grid connection offer or agreement must submit a Gate 2 application in order to retain a fixed connection date.
When is the Gate 2 deadline?
The window for Gate 2 opens to applications on 8 July 2025 and closes on 29 July 2025 therefore all evidence must be submitted before this date.
Projects that connect into the distribution networks, which are smaller projects usually of less than 50MW, have a similar but different process operated by the relevant DNO or distribution network operator. The application window is already open but will also close on 29 July 2025.
What happens if the deadline is missed or the submission is unsuccessful?
Gate 2 is a one-time opportunity for projects to get a place in the grid connection queue without being pushed back to the Gate 1 stage. If the deadline is missed or the submission is unsuccessful, the developer or project will be granted a Gate 1 allocation and therefore receive a Gate 1 conditional offer as an alternative. Such an allocation and offer essentially bumps the project down the list. A Gate 1 offer includes an indicative date of connection, provides a note of likely costs and only an approximate location for connection to the grid but most importantly does not provide a fixed connection date or a position in the connection queue. Gate 1 offers therefore provide less certainty for the project and the developers. If a project loses its fixed connection date in the Gate 2 application process, the developer may choose to abandon, or at least pause, development of the project.
What land rights are required for a Gate 2 application?
A developer can demonstrate readiness by submitting a planning application or evidence of land rights. Many developers are submitting evidence of land rights. For most developers this means an option to lease over the relevant land. To qualify, the option must meet certain requirements – a minimum 3-year period, a minimum area (calculated by reference to energy density regulations ie not the actual area necessarily needed for the project), an unconditional right to draw down the lease, and the landowner must not have a right to terminate the option other than for default. Heads of terms and exclusivity agreements are also not sufficient to qualify.
For more information, please contact your usual Brodies contact.
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