An analysis conducted by Regen suggests that achieving net zero in the UK will necessitate a transformation of the country's energy grid on a scale not seen since the 1960s. However, the report emphasizes that these upgrades are both feasible and advantageous. By upgrading the grid, millions of households will have the opportunity to install heat pumps and electric vehicle (EV) chargers, while also unlocking investments and fostering business growth.
The report, titled “Building an Electricity Network for Net Zero,” evaluates current initiatives undertaken by the UK Government, Ofgem, and network operators in terms of grid capacity development and improved access. Additionally, it outlines further priorities that need to be implemented to ensure the grid is adequately prepared for the transition to net zero. One of the report's recommendations is a call for Ofgem to enable network operators to invest in capacity.
Last year, Ofgem reduced the proposed grid investment budget put forth by network operators by 17%, a move regarded as a risky gamble by Regen. The report argues that Ofgem must now assist networks in securing the necessary budgets to ensure the grid receives the required investment before consumers begin experiencing connection issues.
Significant investments from network companies will be required to facilitate the transition away from costly fossil fuel generation and toward low-cost renewable energy sources. The report also emphasizes the need for the government and Ofgem to reform grid investment processes to ensure that investment precedes the actual demand, rather than being implemented after the fact. Furthermore, the Energy System Operator is urged to expedite reforms to the connection process, ensuring that renewable energy projects do not face prolonged waiting periods for grid connections.
The report highlights the importance of clarifying planning policies and establishing community benefits for areas hosting energy infrastructure projects. These measures would help eliminate barriers and accelerate the progress toward achieving net zero. The UK government is called upon to prioritize net zero within the planning framework, which would facilitate the timely construction of necessary infrastructure.
Commissioned by the MCS Charitable Foundation, a net zero charity, the Regen analysis provides a comprehensive set of solutions to address concerns raised in recent months about the delays in connecting new renewable energy projects to the grid. Some projects have faced connection delays of over 15 years. David Cowdrey, the director of external affairs at the MCS Charitable Foundation, stated that the report demonstrates that with the appropriate investments, the grid is fully capable of handling a substantial shift toward electrifying heat and transport. Upgrading the grid is not only essential for a carbon-free energy system but also presents significant benefits in the form of affordable and clean energy.
Cowdrey emphasized the urgent need for the government, regulator, and network operators to swiftly allocate investments and reform planning policies to facilitate grid development in alignment with the net zero goals.
