London, 20 June 2026: PandoREH has welcomed Ofgem's latest proposals for demand connections reform, published on 16 June 2026, which could support the development of integrated renewable energy projects and accelerate access to the electricity transmission network.
The update marks the first time Ofgem has formally described a project structure closely aligned with the Renewable Energy Hub model: renewable generation, energy storage and large-scale electricity demand sharing a single high-voltage grid connection. Two of the four project archetypes outlined in the document closely reflect the approach being developed by PandoREH.
Ofgem also confirmed it is developing a new licence framework, provisionally referred to as an Independent Transmission Operator (ITO) licence, which could provide developers with a route to owning and operating shared connection infrastructure not fully accommodated under existing arrangements.
The regulator is also proposing wider use of self-build-and-transfer arrangements, enabling developers to construct and transfer high-voltage assets rather than relying solely on the Transmission Operator (NGET). Ofgem's analysis references examples from Ireland where similar approaches delivered significant cost savings and shorter delivery times. Demand customers in England and Wales could also gain access to direct high-voltage transmission connections, an option that has historically only been available in Scotland.
The proposals could also support faster connections. By integrating renewable generation and storage alongside large-scale electricity demand, Renewable Energy Hubs can reduce their net impact on the wider network compared with standalone demand projects.
The reforms include proposals for phased connection agreements, allowing projects to energise at an initial capacity before scaling over time, as well as mechanisms that could prioritise flexible demand projects capable of reducing pressure on the network. Both measures are particularly relevant to hub developments that incorporate energy storage alongside electricity demand.
Simon Wragg, CEO of PandoREH, said:
"What stands out is not any single reform, but the fact that Ofgem is now recognising a project model that combines generation, storage and demand behind a single connection point. This is the model we have been developing across our Renewable Energy Hub projects. Seeing the regulator begin to define a framework around projects of this type, while exploring measures that could accelerate connections, is a positive signal for the industry."
The proposals remain subject to consultation. Ofgem is expected to consult on the proposed licence framework, self-build-and-transfer arrangements and connection reforms in autumn 2026, ahead of the next connections application window. PandoREH intends to engage fully in that process.
PandoREH currently has seven Renewable Energy Hub projects in development across England, with targeted connection dates between 2030 and 2033.
ENDS
Note to editors
Ofgem's Connect Update outlines the regulator's proposed reforms to demand connections. Formal consultations on the proposed Independent Transmission Owner licence, self-build-and-transfer arrangements and connection agreement reforms are expected in autumn 2026. The detailed policy and regulatory framework has not yet been finalised.
About Pando
PandoREH develops Renewable Energy Hubs across the UK, bringing together solar, wind, storage, large demand users and emerging energy technologies through shared transmission grid connections. The model is designed to reduce infrastructure costs, improve grid efficiency and accelerate the deployment of low-carbon energy projects. Founded alongside Ethos Green Energy as part of a shared long-term vision for the UK's energy transition, PandoREH draws on partnerships, expertise and transmission connection capacity established across more than 16GW of projects at 25 locations nationwide.
Media Contact
Simon Wragg, CEO
Ethos Green Energy / Pando REH
Email: simon@ethosgreenenergy.com
