Powering housing growth: why energy should be central to Labour’s planning reforms

Housing is no longer just about tackling a crisis; it is now at the centre of the government’s economic growth agenda. Labour’s approach signals a shift: by accelerating housebuilding, it aims to drive investment, create jobs, and stimulate local economies. But delivering these homes at speed is only half the challenge, the other half is ensuring they have power.

Labour’s recently published Planning and Infrastructure Bill aims to unlock land and streamline planning processes, offering developers and investors long-awaited increased certainty. But while fast-tracking planning approvals is critical, failing to integrate energy infrastructure risks leaving thousands of homes waiting for grid connections that could take years to materialise.

This is particularly urgent as June’s announcement of the government’s new towns site selection approaches. These large-scale developments are not only key to meeting housing demand but are also an opportunity to showcase how clean energy can underpin economic growth. By embedding decentralised energy solutions into their design (on-site renewables, microgrids and battery storage), these new towns can become models for low carbon, energy secure communities, reducing long-term energy costs for residents while supporting the UK’s net zero ambitions.

Now is the moment for the private and public sectors to align on a strategy that ensures housing delivery isn’t just fast but fully powered and future-proofed from day one.

Aligning housing growth with energy infrastructure

The bill makes progress in accelerating energy infrastructure approvals, but to keep new developments on track, energy must be considered earlier in the planning process. The forthcoming new towns provide a unique opportunity to integrate energy strategy into large-scale developments from the start, making them more resilient, cost-effective, and aligned with the UK’s net zero ambitions.

A prime example of this in action is the Otterpool Park garden town in Kent, which will be partially powered by a 200-acre solar farm. By securing a local, dedicated energy source at the outset, the project ensures that housing delivery is not wholly dependent on by grid availability. This model could provide a blueprint for future new towns, demonstrating how early-stage energy planning can unlock housing growth at speed.

To make this happen, planning could better encourage the integration of energy strategies into large-scale developments. Developers, local authorities, and government should work together to ensure that grid availability, and a viable decentralised strategy, are established from the outset.

A smarter approach to energy and development

One of the most effective ways to prevent grid constraints from stalling new developments is through decentralised energy solutions. On-site renewables, microgrids and battery storage allow developments to generate and store their own power, reducing reliance on the national grid.

New financial models are making this easier to implement. Energy-as-a-service models allow private investors to fund and operate decentralised energy networks, offering long-term, stable revenue streams while reducing upfront costs for developers. This creates a win-win scenario, where developers get faster project delivery, investors gain exposure to a growing, resilient market, and residents benefit from lower energy costs and enhanced energy security.

The demand for energy secure housing developments is already growing, and investors who act now stand to benefit from an emerging market.

Powering homes, powering growth

The Planning and Infrastructure Bill presents a rare opportunity to reshape the UK housing delivery, but its success depends on whether energy infrastructure can keep pace. Without timely action, many homes may face delays in gaining full access to power.

To maximise the economic benefits of housing growth, the government has an opportunity to align its housebuilding ambitions with its clean energy strategy. New towns and large-scale developments can set a new standard, where decentralised energy solutions drive both sustainability and economic resilience, ensuring long-term affordability for residents and investors alike.

The housing crisis cannot be solved in isolation. A housing-led growth strategy will only succeed if homes are powered as quickly as they are built. By embedding clean energy into housing policy, the UK can unlock growth, secure its energy future, and create communities built to thrive for generations.

Ben Bowler is technical director, renewables and energy consultant, smart energy & sustainability at Hydrock, now Stantec