The UK risks missing net zero targets unless we stop placing hurdles in the way of green grid investment 

A key plank of meeting net zero lies in the government’s plan to decarbonise the UK’s power sector by 2035. Yet, the electricity network is well short of the required capacity to transmit the vast flows of renewable energy needed to make this possible, meaning that developers wanting to invest in onshore and offshore wind farms must wait for access. As a consequence, projects in some cases must wait years until they can start generating power and assist in decarbonising the energy supply. Simply put, this deters investment, increases cost of funds, and constrains the ability of both developers and landowners to facilitate the transition to net zero, as well as realise significant returns in the process. 

Thus throughout 2022, National Grid ESO was developing its ‘Pathway to 2030’, an ambitious plan to extend and upgrade the electricity network throughout the UK. This will entail the extensive upgrade of electricity transmission infrastructure, as well as hundreds of miles of new overhead lines. Vast amounts of capital, likely both public and private, will be allocated to do so. As part of these plans, it is predicted multinational energy company SSE could invest £12bn-£20bn into the UK’s electricity system this decade.  

However, forging these new connections can potentially negatively impact local communities, working landscapes, homes, and businesses. Issues present themselves in many forms, not only the disruption from construction works or the obvious long term visual impacts. Grid developers seeking to use a local landowner’s property for development will often seek to enter an option agreement, agreeing now that the rights might be exercised later. These agreements can contain restrictions limiting a local landowner’s activities, especially in terms of development, and are best considered fully. It is imperative that landowners are equipped with sound advice when approached with these agreements so they fully understand their implications and the limitations that may be imposed upon them. 

Under the Electricity Act, grid developers, whether they are publicly or privately led, will have access to statutory rights and are increasingly pressing government for a revised regulatory framework that expedites the development of electricity networks. This does not mean, however, that landowners cannot negotiate the route of the network apparatus, or the compensation paid to them. To minimise the negative impacts of developments, it is important that liaison with the developer starts early, armed with sound knowledge of the land requirements and site suitability.   

We are seeing first-hand the benefits of specialist advice in Scotland on the proposed Beauly to Peterhead 400kV line, where our landowner clients are equipped with the knowledge to identify and communicate a preference for one corridor over the other. This is a productive process for all in involved – grid developers will not have the detailed knowledge of day-to-day land management, or all the trade-offs one route may have over the other.  

Grid upgrades are an inevitability, the question is not if they will happen, but how fast the progress will be. As the improvement of the grid increases in intensity, intermediaries with experience of such projects will be an asset to both landowners and developers. Having overseen the development of many of these schemes, organisations like Bidwells are able to help stakeholders form an understanding of the likely pitfalls and issues that can arise from developments, as well as how to best overcome them. In turn, we can help realise the significant opportunity presented to farmers and landlowners through long-term rental agreements, land payments, and make our electricity system, and country, a more attractive avenue for investment in the process.

Clive Meikle is head of grid and infrastructure at Bidwells