The grid connection queue means that for the next ten years there is a hiatus in many important infrastructure projects, unless they get power. The deployment of private wire networks allows these projects to be feasible again, especially with the push for data centres, and the boom in artificial intelligence, as well as high-end manufacturing.
At no point in history have solar PV panels, wind turbines and battery storage been as cheap as they are today. At the same time, wind energy is in plentiful supply here in the UK. The differential in prices between energy from the national grid and what generators are paid is huge.
This is why there is a lot of interest from investors in this market, especially at the moment when sky-high gas prices dictate UK energy costs. Microgrids could offer a commercial edge to businesses, who are then able to slash their energy bills. Private wire networks could offer profitable work attracting engineers, who are in short supply as the national grid expands.
In an age of increasing ESG scrutiny, as well as accounting for Scope 2 and 3 emissions, businesses need to be in charge of their carbon envelope. Microgrids are the ultimate in accountability especially if 100% focused on renewables and storage.
Get it right, and a private wire network could protect a business’ financial model going forwards, since energy prices can be locked in. There could also be tax advantages associated with a microgrid. A private wire would enable a faster rollout of power solutions with less engineering time compared to waiting for a guaranteed grid connection. There’s also a huge benefit to the national grid since this promotes energy autonomy.
A Distribution Network Operator (DNO) intimated that grid connections will be flatlined until at least 2035 when the infrastructure starts to catch up or improves, that’s almost another ten years.
Chris Catterick, Operations Director, SES Engineering Services
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