Electricity Grid Upgrades

Emma Foody Excerpts

Tuesday 26th November 2024 Westminster Hall

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

It is an honour to serve under your chairship, Sir Christopher. I congratulate the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) on securing this important debate, which matters a great deal in his constituency and mine. Although there may be disagreements on how we make the improvements, it is great to hear commitment from all sides. As we pursue ambitious goals to decarbonise our economy and expand green industries, we must confront an undeniable reality: the delivery of secure and cost-effective grid connections is not merely important, but essential.

The clean energy needs of green and decarbonising industrial clusters, particularly in regions such as the north-east, depend on reliable grid connectivity, and the problems that many face in being unable to get connections, or only with significant delays, are holding back growth. Without timely connections, we will struggle to meet the demand for renewable energy, deter inward investment and miss opportunities to utilise fully key industrial sites that could be central to our future prosperity. Grid connectivity is essential, particularly in areas poised to lead the way in offshore renewables. Power supply to port and quayside sites, which are critical for the infrastructure underpinning the growth of offshore wind energy, is essential.

The north-east has the capacity to lead the way in green, clean industry, but we are being held back due to grid connectivity and delays in projects and investment. As outlined in the Mayor of the North East’s response to the national industrial strategy Green Paper, national grid connections are central to offshore wind developers. They provide much-needed certainty to private investors, manufacturers and supply chains, creating thousands of clean energy jobs. For many industries, particularly in the north-east, the costs and long waiting times for grid connections are simply too high. The current capacity is insufficient to support the renewable energy generation that we require, and the delays in securing grid connections hold back business growth and leave sites underutilised when they should be driving forward our regional economies.

Let us take Newcastle international airport as an example. With a solar farm that already supplies 100% of its terminal’s electricity on sunny days, the airport generates more power than it needs. It wants to export its surplus electricity to the grid, yet it has been told that it cannot do so until next year at the earliest. It has been informed that, even then, a full connection may not be possible until 2035, which would mean a full 10 years to wait. It is an unacceptable situation. Like many businesses across the region, the airport has been forced to delay millions of pounds-worth of investment in sustainability schemes simply because it is uncertain as to when it will be able to connect to the grid. With a target of becoming carbon neutral by 2035, Newcastle international airport cannot reach that goal without access to the grid.

It is not just businesses such as the airport that are facing difficulties. Throughout the region, the barriers to grid connection are stalling industrial growth, limiting renewable energy delivery and even restricting economic activity in rural areas, where grid vulnerability remains a persistent issue. What is the solution? First, the Government’s upcoming planning reforms need to be fully implemented to improve the ability to approve critical infrastructure. This is essential to accelerate the decarbonisation process and secure long-term energy stability. It is also crucial that the approval processes for grid connections are streamlined, cutting the time it takes to link key industrial sites to the grid. Secondly, we must have better co-ordination between the national grid, the Crown Estate, distribution network operators and the offshore wind supply chain. Co-operative working is key to ensuring that delivery is timely and effective.

In the north-east, the strategic energy board, established through the deeper devolution deal, is already addressing grid challenges at pressure points. By aligning businesses’ future grid-connection needs with regional planning, we can ensure that grid reinforcement happens in the areas we need it the most, particularly at key industrial sites and renewable energy projects. Grid infrastructure must not only be viewed as a utility; it must be seen as a strategic tool for economic development. The north-east can lead the way in clean, green energy production, but we need the grid infrastructure in place to support it.

The Government can act now to ensure that our grid can support both our industrial ambitions and our green objectives, driving the growth that is rightly at the heart of the Government’s agenda. This is not just about providing power: it is about jobs, investment and the future prosperity of our regions. By working together and prioritising the needs of the grid, we can accelerate the transition to a cleaner, more sustainable energy system, boost growth, unlock the potential of our industries and provide the jobs of the future.