New public grid body aims to cut costs

A new public body to invest in the grid in a bid to speed up connections and cut energy costs is to established.

Prime Minister Andy Burnham believes GB Grid could help fix what he said was a cost crisis in energy that has proved "crippling for businesses", and wants to bring costs down to be in line with other nations in Europe within a decade. 

It is understood GB Grid, announced at the Labour party conference, will invest in and compete for transmission connection projects alongside the companies that own and manage the grid.

It also aims to make it easier for firms waiting to be connected to finance connection infrastructure themselves, with GB Grid supporting and potentially co-investing in projects alongside them.

Funding for the new body will be from within the existing budget of GB Energy, the public green investment company established last year.

Angus Widdowson, Head of Generation at SmartestEnergy, comments: "The UK does not have a shortage of renewable projects seeking to invest. What developers need is confidence that grid infrastructure will be delivered on time and that connection milestones are transparent and achievable. If GB Grid can improve certainty and shorten connection timelines, it has the potential to unlock significant private sector investment."