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Accelerating electricity network connections for strategic demand

DESNZ·consultation·high·12 Mar 2026·2,968 words·source
Consultation closes 15 Apr 2026 (33 days remaining)

Summary

DESNZ is consulting on proposals to reform electricity grid connections for demand projects, particularly data centres, to address speculation in connection queues and prioritise strategically important projects. The proposals would use new powers from the Planning and Infrastructure Act 2025 to introduce queue management reforms and prioritisation mechanisms.

Why it matters

This could fundamentally change how demand-side projects access the grid, potentially giving government-designated strategic projects (like AI Growth Zones and EV charging hubs) priority over other applications and addressing the massive growth in speculative data centre applications.

Key facts

  • Transmission demand queue reached 96GW by end June 2025, up 460% in 6 months
  • Additional 29GW waiting at distribution level
  • Approximately 140 data centres in transmission queue representing ~50GW capacity
  • TMO4+ reforms saved up to £5 billion for billpayers
  • Over 300GW of excess generation/storage capacity deprioritised under TMO4+

Timeline

Consultation closes15 Apr 2026

Areas affected

grid connectionsdata centresevsplanningtransmissiondistribution

Related programmes

Connections ReformClean Power 2030TMO4+Planning and Infrastructure Act 2025

Publisher description

We're seeking views on proposals to amend the connections process to address speculation and prioritise future capacity for strategic demand, including data centres.

Full extracted text
This consultation sets out proposals to use powers taken in the Planning and Infrastructure Act 2025 to implement reforms to the process for managing demand-side connections to the electricity network. It presents measures to address speculation and prioritise future capacity for strategic demand, including data centres. It covers: the rationale for intervention the appropriate legislative vehicle the scope of application the potential timing of implementation The consultation is open to all, but we would like views in particular from: industry stakeholders regulated parties connecting customers the wider public

Accelerating electricity network connections for strategic demand 
 


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Department for Energy Security and Net Zero (2026) 
Accelerating electricity 
network connections for 
strategic demand 
Amending the connections process to 
address speculation and prioritise future 
capacity for strategic demand including data 
centres. 
Closing date: 15 April 2026 

 
 
 
© Crown copyright 2026 
This publication is licensed under the terms of the Open Government Licence v3.0 except 
where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-
government-licence/version/3.  
Where we have identified any third-party copyright information you will need to obtain 
permission from the copyright holders concerned.

 
3 
Contents 
Introduction ________________________________________________________________ 4 
General information __________________________________________________________ 5 
Why we are consulting ______________________________________________________ 5 
Consultation details ________________________________________________________ 6 
How to respond ___________________________________________________________ 7 
Background ________________________________________________________________ 8 
Grid connections process ____________________________________________________ 8 
Problem Statement ________________________________________________________ 9 
The regulatory framework ___________________________________________________ 9 
The Policy Landscape _____________________________________________________ 13 
Government’s Policy Intent ___________________________________________________ 16 
Objectives ______________________________________________________________ 16 
Proposals _______________________________________________________________ 16 
Implementation ___________________________________________________________ 18 
Assessment against objectives ________________________________________________ 20 
Proposal 1 – Queue Management ____________________________________________ 20 
Proposal 2 – Prioritisation Mechanisms ________________________________________ 20 
Proposal 3 – Strategic Alignment of Data centre connections _______________________ 21 
Consultation questions ______________________________________________________ 23 
Questions about you ______________________________________________________ 23 
Section 1 - Proposals ______________________________________________________ 24 
Section 2 - Analytical Annex ________________________________________________ 26 
Section 3 – Changes to Methodologies, Licences, Codes __________________________ 27 
Next steps ________________________________________________________________ 28 
Annexes __________________________________________________________________ 29 
Annex A - Analytical Annex _________________________________________________ 29 
Annex B - Definition of Strategic Demand ______________________________________ 34 
Annex C - Prioritisation Mechanisms - Draft Changes to Methodologies, Codes and Licences
 _______________________________________________________________________ 36 
Annex D - Prioritisation Mechanisms - Worked Examples __________________________ 42 
Annex E - Glossary of terms ________________________________________________ 45 

Accelerating electricity network connections for strategic demand 
4 
Introduction 
Electricity networks are the backbone of Britain’s economic growth, decarbonisation, clean 
energy, and digital future. Demand for electricity is set to more than double by 2050 as we race 
to electrify sectors across the entire economy, from hydrogen production, manufacturing, and 
transport to housing developments and data centres. 
However, too many projects vital to national priorities are being held back by long lead times to 
build new network infrastructure and a connections process that is overwhelmed by 
unprecedented growth in demand for new connections, intensified by the global race to secure 
AI capacity. At the same time, the growing UK data centre market offers a major opportunity to 
attract investment, drive innovation, and create new jobs.  
Government cannot allow vital demand projects representing billions in investment to be stuck 
behind non-viable or less-developed

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