In West London, Swindon, Oxfordshire and Cambridge, local authorities are already reporting halted schemes due to a lack of grid capacity.
As demand for electricity surges – set to rise by 50% within a decade – the crunch is set to deepen.
The worst-hit areas are those seeing a collision of energy-hungry growth: data centres, electrified transport and heating and renewables all fighting for connection points.
Developers are being left in limbo, forced to commit funds and start work before knowing if a viable – or affordable – grid connection is even possible.
“Grid access has become the new bottleneck,” says Stewart Dawson, Managing Director at Vattenfall IDNO. “Projects are being delayed or derailed simply due to lack of clarity on capacity and cost.”
One project in Bath nearly collapsed under a hefty quote from the local Distribution Network Operator (DNO). Developer Alumno Group avoided disaster by switching to an Independent Distribution Network Operator (IDNO), cutting connection costs by 95%.
Vattenfall IDNO is now offering a Simple Grid Consultancy service for sub-2MVA projects, giving developers early access to grid specialists and feasibility studies.
A major issue remains awareness. Research shows 65% of Facilities and Sustainability Managers have never heard of IDNOs – even though they can offer substantial regulated rebates through Asset Adoption Values (AAVs).
“This is effectively free money,” says Dawson. “But billions in AAVs are going unclaimed – savings that could make or break a project.”
Public bodies like councils, NHS trusts and universities are particularly exposed, with tight budgets and major decarbonisation goals.
Early IDNO engagement could unlock cost savings, shorten timelines and keep vital projects on track.
