SMMT warns 14-year grid waits threaten UK car industry’s green future

Britain’s car makers have urged ministers to radically overhaul the country’s grid-connection process, warning that delays averaging nearly 14 years could stall billions in low-carbon investment and jeopardise the UK’s net zero plans.

According to its 26th Sustainability Report,  the Society of Motor Manufacturers and Traders (SMMT) said the sector’s factories had already proved the industry’s commitment to driving down emissions, generating a record 60.3 GWh of on-site solar and wind power last year – up 30.3% on 2023 and enough to avoid almost 12,500 tonnes of CO2. But it also warned that without a radical overhaul of the way projects access the national grid, further progress will be painfully slow.

Grid bottleneck now the number one barrier

Electrified models made up more than a third of all cars built in the UK last year, and multiple gigafactory projects are in the pipeline. Yet manufacturers report that attempts to expand self-generation or tap additional clean power are repeatedly thwarted by long connection queues, leaving them exposed to electricity prices roughly double the European average.

“Britain’s automotive factories are integral to the country’s decarbonisation ambitions, not just of road transport but the UK’s wider industrial base. Both will require significantly more electricity from the grid, but with faster grid connections and reduced energy costs the necessary investment will be unlocked. The industry cannot afford to wait, and nor can the country if our net zero ambitions are to be realised,” noted Mike Hawes, SMMT Chief Executive. 

Call to extend energy-cost relief to car makers

The group welcomed the Government’s new Industrial Strategy – particularly proposals that could trim industrial power bills by 20%. However, it argued that planned relief on standing charges must be widened beyond battery makers to cover automotive plants, which are both trade-intensive and essential to the net zero transition in the eyes of the SMMT.

It also provided a wishlist for what it would like to see the Government do to ensure that the industry can meet its decarbonisation plans. That list includes:

• A fast-track grid connection regime for strategic manufacturing sites.
• Wider eligibility for industrial electricity-price relief.
• Accelerated grid decarbonisation to drive down wholesale costs and carbon.

Without action, SMMT warns that Britain risks ceding ground to rival EV hubs in mainland Europe and the US. It also cautioned that those actions are needed to safeguard the industry, which delivered £92 billion in turnover, £25 billion in value added and £5 billion in R&D spending last year, supporting 183,000 manufacturing jobs and nearly 800,000 roles across the wider supply chain.