Urgent grid delays affect UK construction projects

Turner & Townsend highlights the urgent need for improved electricity access amid rising demand.

Grid delays threaten construction projects in the UK

A new report by Turner & Townsend reveals that delays in securing electricity connections are now a major threat to construction projects in the UK. With demands on the power grid increasing sharply, especially due to the rise of data centres, developers are facing challenges comparable to those of obtaining planning permissions. This situation is exacerbated by National Grid forecasts that show a significant rise in electricity demand in the coming years. In regions like West London and Cambridge, developers are finding their projects stalled due to a lack of local capacity, resulting in rising tender prices and uncertainty in project timelines.

The current power grid situation highlights a critical failure in the UK's infrastructure planning. As electricity demand surges, especially from tech industries, the ability of developers to secure timely connections is diminishing. This not only hampers momentum in urban development but pushes construction costs higher, complicating an already tough market. The shift to a 'first ready, first connected' system adds additional pressure on developers, who must navigate complex regulations and lengthy approval processes. The construction industry is at a crossroads, where efficient management of power access is becoming essential to project success.

Highlights

The construction sector must adapt quickly to the changing landscape of energy connection demands.