Grid readiness among UK's biggest energy infrastructure barriers, report finds

New research from Jacobs has suggested that grid readiness is a greater concern among UK energy leaders than it is for their counterparts in four other major markets. 

The engineering consultancy's Energy Readiness Equation report found that 59% of UK respondents considered grid or network readiness one of the three biggest barriers to delivering energy infrastructure.

That was higher than in any of the other countries surveyed, with 51% of US respondents identifying grid readiness as a major barrier, compared with 48% in Germany, Australia and Singapore.

It’s not exactly surprising to see the UK’s grid receive such a frosty reception – and that’s despite efforts by Ofgem and National Grid ESO to reform the grid connections process. That’s because even when connection dates are secured, some projects are still being pushed back when it’s ultimately found that the grid isn’t actually ready to accommodate them when it said it would be.  

In fact, those difficulties have already showcased themselves pretty clearly. In February, Ofgem confirmed that 210 previously protected energy projects would have their original connection dates or connection points changed, including around 135 affected by network-related issues.

That raises questions about whether enough is being done to improve grid readiness and deliver the Government's clean power ambitions. While the UK already has a substantial wind fleet, solar deployment still has some way to go to meet its 2030 target, while grid-scale battery capacity will need to expand several-fold. 

Investment available, but projects aren't always ready

One thing the UK doesn’t appear to lack is access to financing for energy infrastructure. In fact, Jacobs’ report found that 69% of UK respondents believe sufficient capital is available – but that’s not the full story. 

That’s because while many have found that capital is available, 38% say there is a shortage of projects ready to attract it. So, what’s the disconnect? 

Well, it goes back to the original problem. Investors are only willing to invest in projects that are going to give a likely return – and that means projects that can secure planning permission, connect to the grid, and be delivered within a reasonable timeframe. Promising exactly that has become difficult in the UK’s energy landscape. 

The survey found that 70% of UK respondents considered policy or regulatory uncertainty one of the three biggest barriers to investment readiness, while 66% identified permitting or land constraints.

Alan Fotheringham, Global Solutions Director, Low Carbon at Jacobs, commented, “We need a high degree of certainty across the regulatory environment, the commercial environment and future demand. There’s significant appetite and capability to design and build and operate this infrastructure, if there’s sufficient certainty to commit to it.”

Could more flexible grid connections reduce delays?

So, what’s the solution? Well, the report highlights how some developers could connect projects sooner by making better use of existing network capacity.

In a case study involving Statkraft, the initial connection timetable for a battery project was reduced from seven years to two after the project team worked with the system operator to examine the network constraints in greater detail.

Rather than simply accepting the original connection date, the team investigated when the network would become overloaded and whether the battery could operate differently. Part of the solution involved accepting curtailment during periods when the network was constrained.

In practice, this meant the battery could potentially connect earlier by agreeing to restrict its activity at certain times, rather than waiting for network upgrades that would allow it to operate without those restrictions.

Guy Nicholson, Head of Zero Carbon Grid Solutions at Statkraft, explained, “Once you understand what’s happening on the network, you can start to solve the problem from an engineering point of view: where does it overload, how do we protect it, and what can we do about it?”

That could help get more projects off the ground without simply waiting for the grid to catch up with the UK's energy ambitions. But it won't work for everyone, particularly those requiring a continuous, unrestricted electricity supply.

That’s where the Government and Ofgem’s work on exploring other ways to tackle connection delays come in. Ofgem is consulting on plans to let more developers build their own transmission connections, while the Government has announced Great British Grid, a new publicly owned body intended to bring additional investment into electricity network infrastructure.

Neither is a guaranteed solution, however. Developers building their own connections could still find themselves waiting for upgrades elsewhere on the network, while Great British Grid's long-term funding remains undecided. The real test will be whether these measures can deliver the additional grid capacity and faster connections needed to turn the UK's energy ambitions into reality.