Accelerating electricity network connections for strategic demand
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
Areas affected
Related programmes
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 PDF , 428 KB , 48 pages Accelerating electricity network connections for strategic demand (accessible webpage) HTML 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 [... truncated]