Are grid delays holding back investment?
A business may have the finance, premises and customers for an expansion project, yet still face another obstacle: obtaining enough electricity.
The Government has announced Great British Grid, a new publicly owned organisation intended to help accelerate investment in Britain’s electricity network.
The issue is becoming increasingly important as businesses electrify heating, transport and manufacturing processes, while renewable generation, battery storage and data-intensive activities also require additional grid capacity.
One proposed change could directly affect businesses planning substantial projects.
The Government intends to expand the use of self-build electricity connections. This could allow developers and businesses, where appropriate, to arrange construction of their own connection rather than waiting for the network company to complete the work.
That does not mean every business will suddenly be able to obtain an immediate connection. Britain’s electricity network requires substantial expansion and many projects are competing for capacity. However, the announcement highlights something businesses should consider surprisingly early in an investment project.
If an expansion requires substantially more electricity, installing rapid vehicle charging, electrifying production or opening energy-intensive premises, available grid capacity should form part of the initial feasibility work.
There is little benefit in committing to premises, machinery and finance before discovering that the required electricity connection could delay the project significantly. For larger investments, energy capacity is therefore becoming another issue to examine alongside finance, planning permission, staffing and expected demand.
The earlier it is investigated, the greater the opportunity to adjust the project, consider alternative locations or explore other connection options before significant commitments are made.
