The UK’s grid connection reforms are fundamentally changing how solar and battery storage projects get financed and built. Experts say the shifts, designed to tackle one of Europe’s longest connection queues, are creating both opportunities and headaches for developers, with knock-on effects likely to influence renewable markets across the continent.
Speaking at Solar Media’s recent Solar Finance & Investment Europe summit in London, panellists highlighted how the National Energy System Operator’s (NESO) new gated process is speeding up near-term deployment while forcing a rethink on project economics and risk.
The UK kicked off 2025 with the continent’s largest grid connection backlog by capacity. To clear the logjam, NESO introduced a gated system that sorts projects into different tiers. Gate 2 splits further into Phase 1 (connections targeted by 2030) and Phase 2 (by 2035). The result: clearer timelines for viable projects, but tougher scrutiny on financial strength and deliverability.
John Cooper, senior manager of developments at Decerna Limited, pointed to a surge in optimisation strategies. “What we are seeing is a big focus on optimisation,” he said. “Developers are reusing existing grid connections, squeezing more capacity out of assets that already have land, agreements and connections in place.”
Smaller schemes are gaining traction too. Sub-5MW projects at the distribution level can now move from concept to completion in roughly 12 months, offering a faster route to market while transmission-level uncertainties linger.
Ricardo Folgado, managing partner UK at TagEnergy, described the overall outcome as a “mixed bag.” On one hand, the reforms are triggering a construction rush. “There will be a rush to build,” he warned. “Panels, batteries, transformers and circuit breakers are all critical items, and we are likely to see pressure on supply chains as projects try to contract at the same time.”
On the other, uncertainty remains a drag. Some Gate 2 Phase 1 offers went to projects lacking full planning consent, and delays or unclear offers can jeopardise Contracts for Difference or capacity market revenues. Folgado stressed that co-location is increasingly the smart play: “Solar co-located with batteries makes sense. Standalone solar is much tougher.”
Anastasios Christakis, chief operating officer at Queequeg Renewables, echoed the need for discipline. “You cannot spend blindly,” he said. “Once you receive a connection date, you need to reassess the economics and make sure the project still works.” He noted the reforms are driving attrition, especially in Gate 2 Phase 1, as NESO tightens checks on financial capability. Weaker projects are falling away, while stronger balance sheets survive.
Geography matters more than ever. Capacity allocations tie closely to Clean Power 2030 targets, leading to clustering in certain regions and making sites in less-favoured areas harder to pencil.
The broader message from the panel: the UK’s structured, relatively transparent approach could serve as a blueprint for other European countries wrestling with similar queues. Greece has experimented with comparable changes, and Italy is preparing to follow.
Yet execution is no small feat. As Europe races to add hundreds of gigawatts of renewables this decade, the UK experience underscores that grid access, credible financing and hybrid designs (particularly solar-plus-storage) will be decisive factors.
For UK developers and investors, the reforms mean navigating a more selective environment, but one that rewards those who adapt quickly, optimise existing infrastructure, and prioritise bankable hybrids over standalone solar in a world of tightening margins and negative pricing risks.
The gated process may not be perfect, but it’s clearing a path toward faster deployment where it counts most. Whether the rest of Europe can replicate that clarity will shape how quickly the continent hits its clean energy goals.
