We explore the steps that are being taken to improve access to new grid connections for businesses and the public sector.
Reducing the UK’s reliance on carbon fuels requires a significant increase in renewable generation, like Solar PV and more efficient, flexible technologies, like Battery Storage. These should be complemented by electrification of demand – for example, increasing the use of Electric Vehicles, transforming industrial processes and installing Heat Pumps in homes and businesses.
All of these assets must to be connected to the electricity grid. The problem? At all levels of the electricity system, new energy projects face long delays in connecting to the grid – both on the supply and demand side. At the most extreme, large generation assets like a new solar farm can face a 15-year wait to connect to the grid1. Slashing those times would help to enable cheaper, cleaner energy for everyone.
Added to this, for organisations who are looking to install new low-carbon technologies, the connection process at local level is often not as seamless as it could be and can be subject to similar delays.
It’s important that grid connection policies drive improvements at all voltage levels. But why are grid connections so difficult to get? And what’s being done to improve the situation?
Demand for power and renewable production are both increasing faster than transmission and distribution networks can be reinforced. And electricity demand will accelerate even more in future , because the economy is electrifying. Sectors like transportation, heat, industry, digital infrastructure, artificial intelligence are growing, and require dependable, high-quality power on shorter timescales than today’s infrastructure can deliver.
Insufficient capacity comes from constraints at strategic points in the transmission system. These extended connection queues can lengthen project delivering timelines, disrupt the supply chain and erode investor confidence. This delivery gap is a barrier to growth, and impacts energy-intensive businesses across a broad range of sectors – particularly data centres, advanced manufacturers, hospitals, and more.
Grid constraints no longer affect large renewable energy businesses. They’re now impacting businesses who want to expand their premises; electrify their operations; install new EV chargers in their car park; open a new site, and more.
When power availability dictates whether a project like this can move forward, connection delays become a wider economic issue as much as an energy one.
The economic impact of this is significant. When connections cannot be commissioned on realistic timelines, capital is redirected elsewhere; jobs are relocated; and projectivity growth is deferred2.
Faster grid connections could help businesses accelerate investment decisions, bring projects online sooner and unlock greater confidence in long-term decarbonisation plans.
The Government has announced the launch of Great British Grid, which aims to work alongside existing electricity network operators to invest improved infrastructure. It won’t replace existing providers, but is intended to help accelerate infrastructure upgrades by providing additional finance or investing in the supply chain3.
For example, under the plans, businesses who are waiting for network upgrades could get more rights to develop their own connection assets, with Great British Grid providing support or funding. This could reduce reliance on network operators, and potentially help businesses secure power quicker.
It’s the latest in a series of measures that aim to modernise the UK’s electricity system. Recent years have already seen other reforms introduced to remove speculative projects from connection queues, improve network planning, and accelerate infrastructure delivery4.
At Centrica Business Solutions, we can help you to navigate getting new grid connections, as well as supporting you with planning permission, technology design, project installation, financing, and ongoing Operations and Maintenance.
1 https://www.gov.uk/government/news/government-to-tackle-speculative-demand-grid-connection-requests
2 https://www.centrica.com/media/tngnvi3d/sofcs-enabling-growth-in-a-power-constrained-world.pdf
3 https://www.bbc.co.uk/news/articles/cqn4k9nypxjro
4 https://www.neso.energy/industry-information/connections-reform/about-connections-reform
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