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The government’s launch of the Great British Grid (GBG) a publicly owned body within Great British Energy designed to help accelerate the delivery of ‘the electricity network infrastructure Britain needs’ has been welcomed by industry.
The Department of Energy Security and Net Zero said:
Just as Great British Energy is investing in supply chain, generation and storage projects across the country, now Great British Grid will be able to invest in our electricity grid. Britain’s electricity grid must 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. While private investment will continue to play a vital role, the scale of the challenge requires additional public investment and dedicated leadership.”
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, to help accelerate projects, increase competition and support the delivery of the grid upgrades needed to power Britain’s future.
DESNZ said:
Together, 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 already working with NESO and Ofgem to reform the connections system, including overhauling the connections queue and removing more than 300 GW of speculative capacity. But 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, DESNZ added.
David Hall, Zone President, UK & Ireland at Schneider Electric was one of those who welcomed the move. He said:
Anything that accelerates electrification and investment in the infrastructure needed to deliver it is welcome. The scale of the UK’s energy transition means we need sustained investment right across the system, from transmission and distribution networks through to the supply chains, technologies and skilled workforce needed to deliver them. Reducing grid delays and strengthening network capacity are essential to unlocking new industrial investment, clean energy projects and economic growth. However, investment must happen from top to bottom. As the pace of network deployment increases, it will be equally important to expand manufacturing capacity, develop skills and strengthen supply chain resilience to avoid new bottlenecks emerging. Success will ultimately depend on close collaboration between government, network operators and industry.
To help projects and businesses connect to the grid more quickly, the government 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, DESNZ said.
It added that Great British Grid will complement, rather than replace, the existing institutions responsible for Britain’s energy system and the role of existing network operators remains unchanged.
Ofgem remains the independent economic regulator responsible for regulating the energy market and network companies, protecting consumers and ensuring value for money, while NESO (National Energy System Operator) remains responsible for operating, planning and coordinating the electricity system.
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.
