Great British Grid: Accelerating Connections and Reducing Energy Bills for All

Families and businesses throughout the nation are set to reap the rewards of enhanced grid connections, improved energy security, and reduced costs, as the government takes decisive steps to eliminate one of the most significant obstacles to clean energy and economic advancement.

On Tuesday, 29 September, the government unveiled Great British Grid (GBG), a new publicly owned entity within Great British Energy, aimed at expediting the development of the electricity network infrastructure required in Britain. Just as Great British Energy is actively investing in supply chains, generation, and storage projects across the country, Great British Grid will now be empowered to channel investments into the electricity grid.

Modernising the Electricity Infrastructure

The demand for electricity from households and businesses is increasing, necessitating an urgent expansion and modernisation of Britain’s electricity grid. Additionally, connecting new sources of clean power and facilitating economic growth are paramount. While private investment will remain crucial, the magnitude of this challenge requires substantial public investment and focused leadership.

Great British Grid aims to consolidate public and private investments to facilitate the development of essential network infrastructure nationwide. By collaborating with existing network operators, it will expedite projects, enhance competition, and support crucial grid upgrades needed to power Britain’s future.

With both Great British Energy and Great British Grid investing across the energy landscape, the efforts will support the clean power generation required, as well as the necessary network infrastructure to deliver that power to homes, businesses, and industries.

Reforming the Connections System

The government is already collaborating with the National Energy System Operator (NESO) and Ofgem to reform the connections system, which includes revamping the connections queue and eliminating over 300 GW of speculative capacity. However, further investment will be essential in the coming decades to modernise the electricity network and ensure it meets the rising demand from households, industries, and new clean energy sources.

To expedite connections to the grid for projects and businesses, the government will also implement reforms to encourage self-build connections. This initiative will enable developers and businesses to establish their own connections where suitable, rather than relying on network companies, thereby minimising delays, reducing costs, and fostering growth.

Internationally, the acceleration of self-build connections has proven beneficial, with similar reforms in Ireland resulting in a reduction of connection times by as much as 11 months.

Enhancing Competitive Tendering

Additionally, the government will increase the pace of competitive tendering for transmission projects, allowing a broader array of organisations—including Great British Grid—to compete in the delivery of new network infrastructure. This approach is expected to drive innovation, enhance delivery efficiency, and secure better value for consumers.

By integrating these reforms with the broader grid enhancements, Great British Grid is poised to unlock investment, accelerate project completion, and ensure that Britain possesses the necessary network infrastructure to support clean energy initiatives, bolster energy security, and stimulate economic growth.

Complementing Existing Institutions

It is important to note that Great British Grid will complement, rather than replace, the current institutions managing Britain’s energy system. The roles of existing network operators will remain unchanged, with Ofgem continuing its function as the independent economic regulator overseeing the energy market and network companies, thus safeguarding consumer interests and ensuring value for money.

Moreover, NESO will maintain its responsibility for the operation, planning, and coordination of the electricity system. Great British Energy will invest public capital in conjunction with private investment in clean energy generation, storage, and supply chain projects across the nation.

In collaboration with the aforementioned organisations, Great British Grid will focus on investing public capital alongside private investment in electricity network infrastructure projects. This initiative is designed to work in tandem with existing private sector investors, developers, and network operators, with the primary aim of injecting additional public investment, fostering competition, and expediting the delivery of critical infrastructure where it is most needed. It is not anticipated that the role of Great British Grid will impact existing project commitments under the current Ofgem licences.

The initial start-up expenses for Great British Grid will be funded through Great British Energy’s existing budgets. Given the lengthy development timeline associated with grid delivery, the long-term budget for this expanded responsibility will be considered in a future spending review.