Demand Call for Input (CFI) High Level Summary.pdf

Public Public Demand Call for Input (CFI) High Level Summary March 2026 1 Public Exec Summary Call for Input - Overview • On 6 November 2025, NESO issued a Call for Input (CFI) to all customers with existing transmission-level demand connection agreements, as well as those with directly connected generation agreements that include demand technologies. • The CFI gathered structured evidence to support NESO’s ongoing work with Ofgem and Government on reforming the demand connections queue, ensuring that decisions are based on accurate, up-to-date data about the queue. • This document provides industry with high-level insight into the responses received. High-Level Insights Strong Appetite for Flexibility: 81% of projects are open to alternative connection arrangements such as phased, ramped, or non-firm connections, if this facilitated an earlier connection date Connection Dates: Connection dates typically range from 2027–2035, with very strong pressure to achieve pre-2030 energisation for around 40% of projects Data Centres Dominate: Data centres make up over half of responses, both in terms of volume and capacity Off-taker Status is Mixed: Only 32% of data centre projects have secured off-takers, while 68% have not yet secured one, often pending a firm grid connection date or with negotiations under way. 2 Public Demand Call for Input – High Level Summary The NESO Demand CFI received 243* responses representing over 90GW of demand capability. The overall response rate by demand is heavily weighted towards Gate 2, indicating that the most significant capacity is associated with more mature projects. Data centres are the dominant technology, accounting for the largest share of both project count and total demand (MW), followed by energy storage and electrolysers. CFI Responses - Technology Mix (MW) Electrolyser Industrial Energy Storage Demand 23% 16% Demand 1% CCUS 1% Offshore Oil/Gas 0% Data Centre Energy Storage Demand Electrolyser Industrial Demand Data Centre 55% Demand (MW) Transport - Port CCUS Transport - Aviation 4% Transport - EV 0% Charging 0% Offshore Oil/Gas Transport - Port Transport - Aviation Transport - EV Charging 50,802 20,997 15,357 710 1,078 65 3,328 350 260 92,947 Technology Data Centre Energy Storage Demand Electrolyser Industrial Demand CCUS Offshore Oil/Gas Transport - Port Transport - Aviation Transport - EV Charging Grand Total Project Phases* 152 71 29 12 4 1 5 1 4 279 Technology Data Centre Energy Storage Demand Electrolyser Industrial Demand CCUS Offshore Oil/Gas Transport - Port Transport - Aviation Transport - EV Charging Grand Total *243 responses represents the full scope of CFI responses, including those that were unable to be linked to internal datasets for full analysis. Excluding the unlinked projects gives a total 229 responses. The Call for Input returned a considerable response rate for projects that identified as Energy Storage Demand. However, for the purpose of Connections Reform and the Gate 2 To Whole Queue (G2TWQ) exercise, Storage (including Long Duration Energy Storage (LDES) and Pumped Storage Hydro) technology types are treated as separate from the Demand Queue. * 279 project phases represent CFI responses that have been broken down by technology/ phase (based on connection dates per phase). A single project may have more than one phase. 3 Public Milestone Progression Demand Call for Input – High Level Summary The CFI results indicate most respondents expect to spend the longest time at the construction initiation stage (M8). A smaller but notable proportion anticipate the longest duration occurring during the initial planning and statutory consent phases(M1-M2). Very few respondents identify the intermediate milestones as the point where they expect to spend most time(M3-M7). Some responses reference multiple milestones or provide no specific milestone but this does not alter the response distribution. Overall, the responses are concentrated at the earliest and latest stages of the process. Expect to spend most time at milestone (All) Expect to spend most time at milestone (Data Centre only) 120 100 80 60 40 20 0 t n u o C Count Demand (MW) W M d n a m e D 25,000 20,000 15,000 10,000 5,000 0 50 45 40 35 30 25 20 15 10 5 0 t n u o C Count Demand (MW) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 W M d n a m e D 4 Public Demand Call for Input – High Level Summary Other Response Insights Most projects indicate they would accept an alternative connection agreement, which suggests broad openness to phased, non-firm or otherwise adjusted arrangements if this results in earlier connection dates. Would you accept an alternative connection agreement e.g. phased, non-firm etc. for an expedited connection date? No Yes Most projects have not yet secured full or outline planning permission, although a notable proportion have applications underway or approved. A significant majority of projects report having reached financial commitment with evidence, representing most of the associated demand. Has the project achieved Full or Outline Planning Permission? (All) Count Demand (MW) W M d n a m e D 60,000 50,000 40,000 30,000 20,000 10,000 0 No, full or outline Not yet, but the project Yes, full planning Yes, outline planning planning permission has submitted an permission has been permission has been has not been application for full or achieved. achieved. 5 achieved or applied outline planning for. permission. Details of alternative connection agreements under consideration Count Demand (MW) 25,000 20,000 15,000 10,000 5,000 W M d n a m e D 0 60 50 40 30 20 10 0 t n u o C Non-Firm Non-Firm / Phased Phased / Phased / Phased / Depends on Not Specified Connection Build Connection Non-Firm Self-Build Self-Build / Offer Details/ (Temporary Transmission or Interim) Assets Non-Firm Outcome Project has received Financial Commitment with FID Evidence? (All) 120 100 80 60 40 20 0 t n u o C W M d n a m e D 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Count Demand (MW) Yes 94 No 149 27,726 64,274 160 140 120 100 80 60 40 20 0 t n u o C Project has received Financial Commitment with FID Evidence? (Data Centre only) W M d n a m e D 40,000 30,000 20,000 10,000 0 Count Demand (MW) Yes 71 No 77 21,598 29,590 78 76 74 72 70 68 t n u o C Public Demand Call for Input – High Level Summary Data Centre Insights Data centres were the clear driver in this CFI, constituting the majority of both project count and total demand. These projects span a range of types, including hyperscale, cloud, and co-location facilities and represent the largest, fastest growing segment in the queue. Notably, while some data centre projects already have off- takers secured or in negotiation, many are contingent on receiving a firm connection date demonstrating that timely grid offers are essential to unlocking further investment and delivery. W M d n a m e D 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Does the Data Centre have an off-taker? Count Demand (MW) Unspecified Yes No Summary of Data Centre off-taker status Count Demand (MW) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 W M d n m e D 6 Not applicable/N/A Off-taker already secured Off-taker contingent on grid offer/date Off-taker is developer/operator Off-taker negotiations underway/confidential Off-taker planned for future (with date) Other 120 100 80 60 40 20 0 t n u o C 40 35 30 25 20 15 10 5 0 t n u o C Public ** Demand Call for Input – High Level Summary Geographic Insights * Geospatial plots show that demand is spread across the UK but with clear clusters around major urban and industrial locations, particularly in Scotland, the Midlands, and the South East. The highest levels of CFI demand are concentrated in T4 England & Wales, T11 England, and T2 Scotland, with data centres making up a large share of the totals in several zones. Data centre demand dominates the overall picture, forming the largest single technology category across all areas and years. Electrification, energy storage, and industrial demand appear at lower but still material levels, with variation depending on region. 7 There are c.16GW of CFI responses with insufficient data to link to a systemised Connections Projects record. Therefore, this capacity is not liked to a Transmission Zone ***The zonal boundaries above align with the zonal map used in the Connections Reform Detailed Results Data – January 2026 Public Public End of Slides NESO Connections These CFI insights should be considered indicative only. They represent developer intent, not confirmed deliverability. NESO will need to integrate these findings with existing connection data sets to validate their accuracy before forming policy conclusions. 8