Speeding up transmission infrastructure key to UK’s 2030 Clean Power targets—inaction could cost households £100 more in 2030

In response to the Government’s announcements on the planning reforms announced today, Sam Hollister, Head of Energy Economics, Policy, and Investment at LCP Delta, commented:

“There are serious concerns for new energy projects who are struggling to connect to the grid that could endanger the UK’s Clean Power 2030 targets. Currently, the grid connections queue holds a capacity of 750GW across transmission and distribution networks, damaging investor confidence and hindering the completion of valuable clean energy projects that are struggling to get connected.

The time to overcome this barrier is now. There is already 14GW awaiting connection in 2025; this is actually more than has been connected in the last seven years combined – showing both the challenge for connection and the strong pipeline of projects coming to the UK today. Our analysis shows that under a Clean Power consistent generation mix if network capacity were to remain at current levels, it could cost households up to £100 more in 2030 compared to a scenario where the network is built in line with NESO plans. Unabated gas turn ups would also be higher without network reinforcement, further compromising the Clean Power 2030 target.

A turn towards a ‘first ready, first connected’ system to deal with these backlogs should be welcomed by developers, and investors focused on unlocking the economic potential of grid decarbonisation.”