It’s time for developers to take energy into their own hands

The UK’s energy system is at a pivotal moment. We have rising demand alongside rapid deployment of renewables to meet decarbonisation targets and electrify the energy system, which together are putting huge strain on the grid. For the property sector, this reality demands a rethink of how energy is generated, shared and consumed.

Distributed generation has emerged as one of the most practical and powerful responses to these challenges. By producing energy closer to where it is used – through onsite and near-site renewable assets – developers and businesses can reduce reliance on an increasingly constrained grid while improving resilience, security and cost certainty. In the context of a decentralised energy future, this approach is not a “nice to have”; it is essential.

A system under strain

Electricity demand is growing rapidly as transport, heating and industry electrify. At the same time, grid connection delays are stretching into years in some regions, creating real barriers for new developments and retrofit projects alike. For property developers, this is becoming a material risk – one that affects programme certainty, asset value and long-term operational performance.

These challenges have been thrown into even sharper focus by ongoing geopolitical instability and the war in the Middle East. Volatility in global energy markets reinforces the case for locally generated, renewable power that reduces exposure to international markets and brings financial and operational certainty.

The case for decentralisation

Distributed generation – producing electricity onsite or near-site through solar, battery storage and integrated energy systems – has moved from a sustainability addon to a commercial necessity. For industrial and logistics assets in particular, where roof space is abundant and energy demand is high, the logic is obvious. Generating power where it is used reduces reliance on a congested grid, cuts transmission losses and gives occupiers greater price certainty in an increasingly volatile market.

For mixed-use and commercial office developments, distributed generation improves resilience and future proofs assets against tightening planning policy and occupier ESG expectations. Plus, energy performance is now directly linked to lettability, valuation and long-term income security. Buildings that cannot demonstrate costs table, low carbon energy supply will be at a disadvantage.

This is not just about decarbonisation – it is about control. Developers who invest in local generation gain far greater influence over their schemes’ operational performance, rather than remaining exposed to external grid delays and wholesale market shocks.

This direction of travel is already being embedded in national regulation. Under the UK government’s Future Homes Standard, new homes in England will be required to integrate on‑site renewable electricity generation as part of Building Regulations compliance. Coming into force from 2027 with a transition period, the standard mandates low‑carbon heating and makes technologies such as rooftop solar a default feature of new developments, rather than an optional sustainability upgrade. This signals a decisive shift in how energy is designed into buildings and demonstrates that momentum behind distributed generation is not only market‑led, but policy‑driven.

Unlocking the potential of private wires

One of the most significant – and underused – opportunities of decentralised energy in the UK is private wire infrastructure. In simple terms, private wires allow electricity generated in one location to be supplied directly to a neighbouring or nearby user, bypassing the public grid. This model is common across parts of Europe, where it has supported industrial clusters, mixed-use developments and energy positive communities.

In Britain, however, private wire arrangements remain heavily constrained by regulation and complexity. While certain forms are permitted, they are surrounded by controls that make them difficult to deploy at scale. As a result, we are not fully exploiting a solution that could ease grid congestion, reduce costs and accelerate decarbonisation.

The opportunity is clear. If private wires are allowed to operate more flexibly, developers could unlock new ways of sharing renewable power across estates, business parks and neighbouring buildings. A site with surplus generation could supply adjacent occupiers who lack the space or capacity to generate their own, creating local energy ecosystems that work for everyone. From a technical, economic and environmental perspective, private wires make absolute sense.

The role of PPAs in a decentralised future

Alongside private wires, Corporate Power Purchase Agreements (CPPAs) are playing an increasingly important role in enabling investment in renewable generation. In January 2026, the UK government launched a call for evidence on how the CPPA market can be strengthened, recognising their potential to support business decarbonisation and energy security while reducing exposure to price volatility.

This consultation explicitly acknowledges the role that onsite generation, local supply and private wire solutions can play within CPPA structures. By allowing businesses to contract directly with renewable generators – often over the long term – PPAs provide price certainty, support new projects and reduce reliance on fossil fuel linked wholesale markets.

For the property sector, combining distributed generation, private wires and PPAs offers a powerful toolkit. Developments can secure clean power at stable prices, improve commercial viability and contribute meaningfully to the UK’s net zero ambitions without placing additional strain on the grid.

A call to action for the property sector

The direction of travel is clear. Decentralised energy is no longer a niche solution; it is becoming a cornerstone of the UK’s energy transition. But realising its full potential will require coordinated action – from policymakers, regulators, developers and energy partners alike.

Reforming private wire legislation and enabling greater flexibility in local energy sharing would be a decisive step forward. Coupled with a supportive framework for PPAs and distributed generation, it would empower the property sector to lead the way in delivering a cleaner, more resilient and more efficient energy system.

In 2026, the question is no longer whether we should embrace decentralisation – it’s how quickly we can remove the barriers and make it work at scale.