News
Shortcut the National Grid queue by bridging the gap between supply and demand.
New Hoare Lea report finds private wire networks now make economic sense for large energy users.
A new Hoare Lea report, ‘Jumping the big energy queue’, published today at UKREiiF, finds that developers for large energy users can now leapfrog the National Grid connection queue because private wire networks now make economic sense.
Hoare Lea spoke to energy and development experts and found that that the National Grid connection queue is the biggest issue new energy users face. Delays of up to a decade are already tearing through capital expenditure planning and procurement for heavy industry, data centres, logistics, transport infrastructure and science and research facilities.
Read the report:
‘Jumping the big energy queue’
The report found that many industry players don’t realise that they can own, operate, and adopt their own power supply-side system, or find investors willing to own energy assets on their behalf. These private wire networks could supply energy from a nearby renewable source, or from on-site renewables directly to a business via a dedicated circuit, rather than sourcing power solely through the National Grid . This enables a smaller grid connection, or a path to unlock delayed grid connections, allowing developments to leapfrog the National Grid connection queue in the short term.
The report states that private wire networks could offer a commercial edge to businesses, who are then able to slash their energy bills. Private wire networks also give big energy users more accountability over controlling and reducing their carbon emissions.
Laurence Johnson, Principal of the Utility & Energy Infrastructure Group, Hoare Lea said: “Right now, the energy market conditions are perfect to find the right mix that directly matches the power generation and demand profile for a business with high energy needs. If developers are brave, there could be a whole market of products here wrapped up in a 30-year investable concept – great for banks and others, with a guaranteed rate of return.”
For more information contact BigEnergy@HoareLea.com