
The UK’s energy grid is struggling to cope, placing increasing pressure on everyone from developers to bill payers.
The growing crisis has been highlighted in a recent article from The Times, which makes it clear that the National power grid simply isn’t able to keep pace.
Recently, Storm Floris brought gusts of wind to Scotland which were strong enough to power London twice over – yet wind farms were switched off to avoid overloading the powerlines, and London was left wanting. In fact, the National Energy Systems Operator paid millions in “curtailment costs” to stop the wind farms generating more electricity than the grid could carry, while simultaneously firing up gas plants in the South.
This was not an isolated incident. In just six months, curtailment costs have already hit £810 million, with projections suggesting that this figure could balloon to £8 billion by 2030 if infrastructure investment continues to lag behind.
From our vantage point, these challenges underscore the vital importance of early-stage planning, a grid connection strategy, and utility risk management in property development. Projects are increasingly at the mercy of national energy bottlenecks and local network constraints, making careful navigation essential.
While grid expansion is a priority, solutions like large-scale battery storage and potential changes to energy pricing models are being debated. Without decisive action, developers and consumers alike will continue to shoulder the costs of inefficiency.
For anyone delivering housing and infrastructure projects, this is more than an energy policy story – it’s a wake-up call to plan well ahead. Securing timely, cost-effective power connections and mitigating risks early has never been more important.
At BTS, we’re working with developers across the UK to anticipate and manage these challenges so that energy uncertainty doesn’t derail the delivery of much needed projects.