The government believes that families and businesses across the country will benefit from faster grid connections, greater energy security and lower costs as it takes action to remove one of the biggest barriers to clean power and economic growth.
Just as Great British Energy is investing in supply chain, generation and storage projects across the country, Great British Grid will be able to invest in the UK electricity grid, which needs to be expanded and modernised at an unprecedented pace if it is to support growing demand from households and businesses, connect new sources of clean power and unlock economic growth.
Great British Grid will bring together public and private investment to support the delivery of critical network infrastructure across the country. Working alongside existing network operators, it will help accelerate projects, increase competition and support the delivery of the grid upgrades needed to power Britain’s future.
Great British Energy and Great British Grid will be able to invest across the energy system, supporting both the clean power generation Britain needs and the network infrastructure required to get that power to homes, businesses and industry.
The government is currently working with NESO and Ofgem to reform the connections system, including overhauling the connections queue and removing more than 300 GW of speculative capacity. However, further investment will be needed over the coming decades to upgrade the electricity network and ensure it can meet rising demand from homes, industry and new sources of clean power.
To help projects and businesses connect to the grid more quickly, the government says it will also bring forward reforms to expand self-build connections. This will allow developers and businesses to build their own connections where appropriate, rather than waiting for network companies to do so, helping reduce delays, lower costs and accelerate growth.
Accelerating self-build connections has delivered significant benefits internationally, with similar reforms in Ireland reducing connection times by up to 11 months.
The government will also accelerate the competitive tendering of transmission projects, allowing a wider range of organisations, including Great British Grid, to compete to deliver new network infrastructure. This will help drive innovation, improve delivery and secure better value for consumers.
Combined with wider grid reforms, Great British Grid will help unlock investment, accelerate delivery and ensure Britain has the network infrastructure needed to support clean power, strengthen energy security and grow the economy.
The initial start-up costs for GBG will be covered by GBE’s existing budgets. As grid delivery has a long development time, the long-term budget for this expanded remit will be considered as part of a future spending review.
Christophe Williams, CEO of solar thermal innovator Naked Energy, welcomed the announcement. “Too many British businesses have waited years to connect, and the price shock after the conflict in Iran showed how exposed we are while we rely on volatile fossil fuels” he said. “But the grid can't carry net zero alone. Electricity demand is set to climb more than 30 percent in the next decade, and the network upgrades needed will cost tens of billions. Heat is the part of that demand we can take off the grid. Grid-edge technologies like solar thermal let businesses produce heat on site and work alongside heat pumps, so they draw far less electricity. The fastest grid connection is the one you never need.”
Yselkla Farmer, CEO of BEAMA, has also welcomed the announcement.
“The proposed investment in a GB Grid recognises the need to unblock issues of underinvestment in certain areas of the supply chain” added Ms Farmer. “But what we cannot afford is a protracted process or uncertainty over funding for grid development. Delivery has to now to stimulate the structured growth the sector is planning for. We understand the GB Grid proposal is focused on transmission connections, but investment is needed top to bottom. So, it is really important that we see investment from transmission through to distribution, to ensure that electrification can progress at the pace we need it to. What is very helpful for manufacturers is having a clear view of upcoming investments. This visibility will help them plan when to invest in – both in new equipment and through recruitment. And, make early decisions that accelerate the path to electrification. Critically, it helps the industry avoid delaying decisions through uncertainty of demand.”
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