Grid delays are overtaking planning as the biggest risk to UK construction, leaving projects stalled and costs spiralling. Can early insight break the deadlock?

For decades, developers in the UK have accepted that planning permission is the biggest hurdle for new projects. But a new barrier has quietly overtaken it – access to the electricity grid. Across the country, construction projects are stalling not because the land cannot be used, or the plans are unfit, but because there is simply not enough local electrical capacity to power them.

Turner & Townsend’s latest report identifies grid connection delays as one of the greatest threats to project delivery, now on par with planning as the leading risk. Councils in West London, Swindon, Oxfordshire and Cambridge have already reported stalled schemes due to grid shortages. And with total UK electricity demand forecast to rise by 50% in just ten years – and double by 2050 – the issue is only set to intensify.

This pressure is being felt most acutely in areas where energy-intensive data centres and electrification projects compete for capacity, leaving housebuilders, commercial developers, and public sector bodies facing long waits and spiralling costs for new connections.

“Grid access has become the new bottleneck,” says Stewart Dawson, Managing Director at Vattenfall IDNO. “Developers are moving quickly to decarbonise, electrify operations and scale renewables – but they are being held back by uncertainty over grid availability, capacity and costs. Without early clarity, projects risk being delayed or derailed.”

This uncertainty has financial as well as operational consequences. Developers often enter contracts and secure funding long before they know if a viable grid connection exists. In some cases, they only discover the true costs months later, when Distribution Network Operators (DNOs) issue prohibitively expensive quotes for a new connection and the required grid reinforcement works.

A student housing scheme in Bath, led by Alumno Group, illustrates the risk. When faced with an unexpectedly high DNO quote, the project was on the brink of becoming unviable. By working with an Independent Distribution Network Operator (IDNO), Alumno cut connection costs by 95% and delivered the scheme on schedule.

New tools to break the deadlock

Recognising the urgency, Vattenfall IDNO has launched a new Simple Grid Consultancy service aimed specifically at sub-2MVA projects. Developers gain access to Vattenfall’s grid specialists, engineers, and project managers, who provide feasibility studies, Point of Connection (PoC) applications, mini tenders for contestable works, and even legal support for land rights.

Crucially, the service is backed by Vattenfall’s Grid Capacity Insights Platform, which maps power availability and grid constraints across different voltage levels and locations. By using the platform early, developers can identify sites with power availability, thus avoiding nasty surprises and excessive grid connection quotes after they have acquired land.

Closing the knowledge gap

Another barrier is awareness. Research by Vattenfall found that 65% of Facilities Managers, Development Directors and Sustainability Managers have never heard of IDNOs, despite the fact they can secure developers significant regulated rebates through Asset Adoption Values (AAVs).

“This is effectively free money,” says Dawson. “But it’s still flying under the radar. With billions of pounds in AAVs left unclaimed, developers and the public sector are missing out on cost savings that could transform the viability of projects.”

The issue is particularly pressing for councils, NHS trusts, housing associations and universities, where funding for decarbonisation projects is already tight. From EV charging infrastructure to electrified heating, many public sector schemes are now at risk of delay or cancellation unless grid connections can be secured affordably. Early engagement with IDNOs can unlock significant cost savings, shorten timelines, and provide greater certainty, helping organisations keep projects viable and on track.

Planning approved, power denied

For UK construction, energy access is no longer a technical detail to be resolved later – it is a strategic priority that must be addressed from the outset.

“Developers need to make decisions based on facts, not guesswork,” says Dawson. “Whether you’re just getting started or have already hit roadblocks, involving experts early can help you reach energisation faster – and with fewer surprises along the way.”