Pete Aston, Specialist Connections Engineer at Roadnight Taylor, explores how the Labour Government has fared in its first 100 days when it comes to the challenge of decarbonising the UK’s power networks.
Labour’s 2024 election manifesto promised ‘clean energy by 2030’ and to make Britain a ‘clean energy superpower.’ While these ambitions might surpass the Conservatives’ target to decarbonise the energy system by 2035, they have raised some scepticism from those familiar with the challenges coming from the UK’s crowded grid connections queue.
The Government’s first 100 days have included noticeable headway on decarbonising the grid, particularly in areas such as policy and reform, signalling a proactive approach. However, significant obstacles and a continued sense of urgency remain.
Key questions persist in vital areas for commerce and industry; both when and how these issues are addressed will be pivotal for making real progress towards the 2030 target.
The challenges
Decarbonising the UK’s power supply means tackling multiple complex problems on a national scale. When it comes to the grid, there are several key hurdles to overcome.
Firstly, the grid is not optimally located. It’s designed for an energy system which is dependent on a small number of large fossil fuel plants, rather than a myriad of decentralised renewables. That means extensive, costly and time-consuming upgrades are needed to the national transmission and distribution infrastructure.
Additionally, there is limited grid capacity to accommodate the scale of new renewable energy projects, especially where it is most needed, and because of this, the UK is faced with widespread bottlenecks.
One of the biggest barriers to decarbonisation is the pace of the connections queue, which currently operates on a first-come-first-served basis. This means viable projects are often blocked by others not progressing – facing years of delays. Tackling the queue is not just about meeting targets; the UK’s electricity demand is increasing, driven in part by the transition away from fossil fuels.
Labour’s first steps in the right direction
Despite early doubts about how its clean energy ambitions would be realised, Labour’s first 100 days have included tangible, encouraging signs that the new Government is proactively working to deliver on its election promises.
There have been some key achievements. Labour quickly overturned the ban on onshore wind farms in England. Though it will take time to see the impact this has on wind projects being connected to the grid, this is a positive step towards unlocking the UK’s wind power potential – particularly with onshore wind already permitted in Scotland and Wales – and achieving the 2030 target. The new Secretary of State for Energy Security and Net Zero, Ed Miliband, also wasted no time in giving the green light to a raft of new renewable energy projects.
In the push to speed up grid connections , the new Government has been quick to engage with and influence Connections Reform, a project by the National Energy System Operator (NESO) which aims to address the challenges of the connections process and improve the way connection applications to the transmission system are handled.
While it has become clear that Connections Reform may not achieve the improvements originally hoped for, the Government plans to introduce additional requirements for schemes to enter the queue, linking them to the 2030 target. This is a sensible move, given the queue currently contains a chaotic mix of viable and unviable projects of many shapes and sizes.
The industry will have to wait and see what the new requirements look like, however. Whether they are based on technology, location, or other factors, will be a complex decision; but, rather than letting the queue build up exponentially, Labour is leaning into the process.
These early achievements demonstrate a sense of urgency to decarbonise the UK’s power system, driven through more central planning than before. This represents a marked change in approach from previous governments. This is a government willing to step into the policy arena and push to reach its 2030 target.
Uncertainties on the path to 2030
Despite progress, at the 100 day mark, there is still a great deal of uncertainty. The Connections Reform process has yet to conclude and there are many questions about the new application criteria. This is causing caution among investors and developers, with any resolution and clarity unlikely until the end of this year or early 2025.
The new publicly-owned company Great British Energy was heavily promoted during the election campaign as a means to unlock powerful benefits for communities and the supply chain. Labour has pledged to capitalise it with £8.3 billion over the next parliament, yet it is unclear how it will impact on important areas, such as easing the grid queue.
The industry would benefit from knowing what Great British Energy’s remit will be, for example, will it purely be an investment body, and if so, to what end? If its purpose is to purchase existing schemes already in the queue, this would likely be welcomed.
One of the biggest uncertainties remaining from the election is the definition of ‘clean power.’ It would be far more challenging to fully decarbonise the electricity system by 2030 than it would be to have technically cleaner power through various energy mixes. Understanding the future energy landscape will enable government, businesses and investors to better plan and make informed decisions. The UK needs a clear vision of what its energy system will look like in years.
Navigating uncertainty
Those in the electrical sector will find that commercial and industrial customers are increasingly decarbonising their facilities by switching away from gas heating and installing EV charging points. These businesses will realise this is a process that is demanding and presents major technical challenges – moving from gas to running exclusively on electricity, for example, can cause electrical demand to increase tenfold, causing grid upgrade issues.
Rooftop solar should be an excellent option for businesses looking to decarbonise, however, even this can be impacted by the backlog in the connections queue. A megawatt of solar power could represent a tiny portion of a large factory or facility’s available roof space, yet that’s sufficient to be impacted by the transmission system. This is an unreasonable hurdle when a business is simply trying to decarbonise a site, as it makes more sense to have rooftop solar on site instead of relying on cabling that extends for miles.
Relevant bodies and stakeholders should seek to influence policymakers to create more allowances for where power for industry is generated and consumed, so that businesses can avoid the pitfalls of the connections queue and meet their own targets.
The road ahead
While Labour’s early progress demonstrates a proactive approach and signals that its 2030 target is likely within reach, anyone making commercial energy decisions should think carefully given ongoing uncertainty.
The devil is in the details. Beneath the ambitions and announcements lie unresolved questions and challenges, including the true definition of ‘clean’ power. Continued investment and decisive policy action are likely, however, clear guidance – particularly on the grid connections queue – will be crucial for industry players to make more informed decisions by the start of 2025.
