By Mark Sneddon, Delivery Director at Aurora Utilities Limited
Recent reports suggest that housebuilding is set to rise to the highest level seen in 40 years as the government plans to build 1.3million homes across the UK within five years. This is expected to alleviate the worst effects of the housing crisis, but it could lead to another; an energy connection crisis.
A combination of planning reforms, extra funding and growth-minded policies has cleared the way for housing developers; more shovels in the ground will see new, more affordable and sustainable developments up and down the country.
Roadblocks ahead
However, the news also coincides with crucial warnings that the UK’s ageing, vulnerable energy infrastructure and policies, including an overwhelmed grid, could threaten the successful roll-out of these builds.
The Climate Change Committee (CCC) recently warned that the UK’s net zero targets will not be met without tackling greenhouse gas emissions from UK buildings. The millions of new homes planned therefore must embrace a low-carbon heat and energy strategy to align with our net zero goals.
Property developers already face new regulations to ensure homes move away from fossil fuels and are fitted with advanced heating and hot water systems powered by renewable energy sources. With the rise in new builds, we can expect this demand to continue.
The UK faces several key issues regarding new homes and energy connections, primarily concerning grid infrastructure and the pace of energy efficiency upgrades. Despite the best intentions of the developer in embracing low-carbon solutions, securing capacity is a major roadblock.
These include delays in connecting new homes to the grid, concerns about the affordability and implementation of energy-efficient technologies such as heat pumps, and the need for more comprehensive retrofitting of existing homes. The new labour government has announced plans to change legislation requiring developers to add solar panels to newly built homes. The rules around this will be included in the Future Homes Standard, which will detail a wider plan for improving energy efficiency and reducing carbon emissions.
The changing energy mix
UK citizens have changed the way they consume energy, with a growing desire to avoid fossil fuels and adopt climate-friendly alternatives. Heat pumps for example are rising in popularity. According to the National Grid electricity system operator (NESO), the body that ensures supply meets demand on the network, heat pumps will require 80 terawatt hours a year by 2050, aligned with hitting net zero targets. Worryingly, this is four times the current usage which means connection issues could limit their installations on a larger scale.
This creates a problem with electricity use in the UK expected to jump by 50% by 2035. This is directly influenced by the millions of electric cars and domestic heat pumps being plugged in.
Why is this a problem? It puts excessive pressure on the grid, meaning capacity issues are popping up around the country. This could potentially lead to developers re-evaluating the build out of new housing schemes because they can’t secure enough demand from the grid.
Key reforms and policies
Over the past two years, the UK has introduced significant reforms to alleviate pressure on the electricity grid and expedite connections for energy projects. These measures aim to modernise grid infrastructure, prioritise viable projects, and support the nation’s clean energy objectives.
Six key developments from the last 24 months include;
- Transition to a ‘First Ready, First Connected’ System: The traditional ‘first-come, first-served’ approach has been replaced to prioritise projects that are ready for implementation. This change helps eliminate speculative or stalled projects, often referred to as “zombie projects,” that previously occupied grid capacity without progressing. The new system ensures that viable projects can connect to the grid more swiftly, reducing waiting times by up to seven years.
- Implementation of Queue Management Milestones: Ofgem has empowered the National Grid Electricity System Operator (NESO) to introduce strict milestones within connection agreements. Projects failing to meet these milestones can be removed from the queue, ensuring that only committed and prepared projects proceed.
- Planning and Infrastructure Bill: Introduced in March 2025, this bill streamlines the planning process for energy infrastructure projects. It aims to fast-track at least 150 major projects, facilitating quicker grid connections and supporting the UK’s goal of achieving clean power by 2030.
- Transmission Acceleration Action Plan: Published in response to recommendations from the Electricity Networks Commissioner, this plan seeks to halve the time required to build new transmission infrastructure, reducing it from the current average of 12–14 years. It includes measures to raise entry requirements for transmission connections and better allocate existing network capacity.
- Flexible Connections at Grid Supply Points (GSPs): To expedite distribution-level connections, Distribution Network Operators (DNOs) are now permitted to manage connections within technical limits at GSPs. This approach has the potential to release up to 50 GW of capacity, significantly improving connection timelines for smaller projects.
- Establishment of the Future System Operator (FSO): The FSO has been created to oversee a more strategic and coordinated approach to grid planning and operations. It will play a crucial role in aligning grid connections with the UK’s broader clean energy goals.
These reforms collectively aim to modernise the UK’s energy grid, reduce bottlenecks, and facilitate the rapid integration of renewable energy sources, thereby supporting the nation’s transition to a net zero energy system.
The UK’s ambition to build 1.3 million new homes is a vital step in easing the housing crisis, but without parallel upgrades to the energy grid, it risks triggering an energy connection crisis.
As homes shift towards low-carbon, electrified systems, the demand on an already stretched grid will intensify. Whilst these recent reforms are promising, timely implementation is critical. Only then can we ensure that every new home can connect to clean, reliable power. This isn’t just an infrastructure challenge; it’s a cornerstone of the UK’s net zero future.
