How Great Britain can unlock faster electricity grid demand connections through reform

The role of demand connections reform in unlocking capacity for growth and electrification

Reforms of demand connections to the electricity grid are in full swing, though confidence in acceleration of projects remains low. According to Mott MacDonald project director for energy transformation, Rosa Rotko, there are still opportunities to unlock more capacity, as highlighted at a recent roundtable hosted by Mott MacDonald and Energy UK.

Britain’s electricity demand connections challenge is often framed as a queue prioritisation problem, but a roundtable hosted by Mott MacDonald and Energy UK revealed a considerably broader and more complex issue. The discussion brought together perspectives from large energy users, energy networks and policy makers, examining proposed reforms and their impacts.

Businesses seeking new or increased electricity connections face long delays and uncertainty over when capacity will become available. Networks are struggling to distinguish firm requirements from capacity that may not be needed immediately or applications that are purely speculative. And policymakers are concerned about ever-rising energy bills that land with consumers.

Reviewing allocation of costs to enable faster grid upgrades

Roundtable participants pointed out that most of the reinforcement costs are socialised across energy consumers via network charges, rather than paid by the connecting customer. This is a significant hurdle, because reinforcement for new connections is slowed down by the regulatory process to manage bill impacts.

There is an opportunity for policymakers to explore alternatives which determine how costs are shared among connecting customers, existing consumers and organisations seeking access to capacity later. Enabling a large connecting customer to contribute towards grid upgrades might solve two problems – facilitating faster grid connections and avoiding extra costs on consumer bills.

This is a complex policy area and any approach needs careful balancing of fairness and differing customer circumstances. However, given the public’s concern about the UK’s expensive electricity prices, it is a fundamental issue resolve, otherwise the energy system gridlock will continue.

Better support for sharing connection applications and capacity

Electricity network operators have noted that applicants systematically “over-apply” for capacity which isn’t then used. But it’s natural for users to retain some capacity for resilience purposes or to future-proof for growth, particularly when access to new connections is difficult.

Flexible connections provide part of the answer, particularly where demand is phased, predictable, seasonal or supported by behind-the-meter generation or storage. However, flexibility differs for users – data centres, ports, airports, water facilities and manufacturing sites each bring distinct operational and resilience requirements. Companies have raised concerns around being “dictated to” about specific times and types of flexibility that might not work for each sector and are asking for policymakers to consider different user types.

One identified gap is the ability to share connection applications with nearby users. Better processes by networks could show where alternative arrangements might prove viable, support earlier investment decisions, reduce repeated bilateral engagement and enable faster and cheaper connections for all parties.

More clarity on fastest route to grid connection

Ofgem’s proposals for self-build transmission assets and independent transmission owner arrangements proved surprisingly popular with many roundtable participants. However, not all connecting customers are actively seeking to take on these responsibilities, with some exploring alternative delivery models primarily because conventional connection routes remain uncertain or unavailable. These reforms may offer certain customers greater certainty and control, although they will not automatically resolve delays. Successful delivery depends on contractor and equipment availability and coordination of upstream reinforcement works and outages. There were also questions around whether increased use of self-build models could place additional pressure on an already constrained transmission supply chain, where specialist contractors, equipment manufacturers and skills are in limited supply.

Careful technical and commercial assessment will therefore be necessary to identify which sites could benefit and whether alternative delivery provides meaningful advantages. Any expansion of these models will also need to consider wider market impacts. While greater competition could encourage innovation and attract new entrants, fragmented delivery pipelines may reduce investment certainty for contractors and equipment suppliers, potentially increasing costs and creating new bottlenecks. Connecting customers will also require regulatory assurance on whether the independent transmission owner can meet connection deadlines and the upstream reinforcement works being completed on time.

Impact of delays

Accessing the grid has become more complex, and riskier, for large energy users. This was true even before the recent government announcement creating the Great British Grid, which might become another player in the connections process.

Roundtable participants recognised that uncertainty cannot become a reason for inaction. Delayed decisions affect growth plans, commercial confidence and supply chain readiness across the wider sector. However, connecting customers require more support to test scenarios, explain requirements and have informed conversations with networks and investors. Technical and commercial analysis, demand forecasting and infrastructure planning are needed to make the best-informed decisions in the rapidly changing policy and regulatory environment.

The roundtable’s call to action was clear: policymakers and regulators need to look at all available options to speed up grid connections needed for growth and electrification. Today’s blockers need to be addressed while developing a connections framework capable of supporting tomorrow’s broader, more diverse and inevitably uncertain demand requirements. No organisation holds every answer, making collaboration, transparent decision-making and shared evidence essential to giving customers sufficient confidence to progress important investments and projects.