Why a ‘power first’ approach is a smarter strategy for UK development

We are no strangers to headlines urging our attention to the power crisis in the UK. The media can be found frequently reporting on cost of energy, rising energy demands, and how clean (or more so, unclean) the energy is. Of late, we are reading a multitude of reports on how the grid is responsible for delays in accessing renewables and NESO’s (National Energy System Operator) pause on power applications. This is enough to make any developer stop in their tracks and rethink their potential investment.

But what if we reframed the issue; not one of a power shortage, but of spatial strategy failure. Peak demand in the UK is about 61 GW, but the current installed capacity is more than 73 GW, when you include the interconnectors. On paper, that looks to come to about 12 GW of headroom for the UKs power capacity. To contextualise those theoretical numbers, that is the equivalent to three entire Hinkley Point power stations! 

So we ask, if the power exists, then what is the real issue?

Is power in the wrong places, or is development in the wrong place? 

Cities such as Manchester, Birmingham and Newcastle have developed historically as industrial powerhouses due to their immediate local access to energy (coal and hydro). But that’s no longer the case. The sources and supplies of power have shifted to the more remote parts of the UK as we redirect away from finite resources and towards greener methods, such as offshore wind. Yet, our spatial strategies have not followed suit.

With the grid system unable to store the excess power when it is being generated, nor able to transport it where it is most needed, generation facilities are being turned off and energy is being wasted. We need to consider the possibility of relocating our ‘heavy demand industries’ (such as data centres, advanced manufacturing, defence facilities, cement and steel works etc) to areas that hold the surplus of power. 

This will also offer a faster return for investors who can tap into the energy source directly.

'Zombie' projects are blocking grid connections

Developers have historically tended to put through speculative applications for future projects and then reserve the power they plan to use for these, creating a queue of claims towards the power resource. However, a large percentage of these applications will ultimately never come to fruition, meaning their reserved power allocation will go untouched. This non-negligible number of applications will ultimately be closed, but in the meantime, they clog up the process with ‘zombie projects’.

Regulators have been pushing to minimise this bottleneck, calling for action towards a better process that demands more detailed, thoroughly evidenced explanations of intended project trajectories and power use. This includes details such as site ownership, planning consent, demand modelling and the development schedule. This streamlined approach will mean viable projects are prioritised and 'zombies' are cleared from the queue of power demands.

Ramping and phasing development

Proper consideration should be taken when making power applications. 

Rather than the submission stating that a development needs the headline power amount on ‘Day 1’, show how this can be a phased demand. This makes the application more attractive and feasible.

How can we help? 

We have previously worked with developers, local authorities, regional government and investors to help support development strategies and decision making. For example, by helping developers make informed decisions by modelling actual power usage and optimising building designs, we have been able to reduce demand significantly. We can be with you every step of the way to help power your ambitions.

Reach out or look at our power page for more info.