South Wales is set to become a testing ground for new approaches to electricity connections aimed at unlocking industrial investment and making better use of capacity already available on the grid.
National Grid Electricity Distribution, Net Zero Industry Wales (NZIW) and Celtic Freeport are launching a multi-year innovation programme focused on one of the key challenges facing major industrial developments across the region: securing sufficient electricity capacity quickly enough to support investment.
Rather than waiting solely for major new network infrastructure, the programme will investigate how existing electricity assets can be used more efficiently to allow businesses, industrial developments and renewable energy projects to connect sooner.
The initiative covers the South Wales Industrial Cluster (SWIC), including major economic development opportunities within the Celtic Freeport.
The three organisations are set to sign a memorandum of understanding establishing their commitment to the programme and providing a framework for taking individual projects forward.
One of the first areas to be investigated will be whether batteries controlled by the network operator could help balance electricity supply and demand.
By storing or releasing power at particular times, the technology could potentially create additional usable capacity on the existing network.
If successful, the approach could enable industrial customers and renewable energy developments to secure connections sooner while longer-term reinforcement of the electricity network continues.
The programme follows the South Wales Industrial Dialogue, which brought together more than 30 industrial organisations with National Grid Electricity Distribution and Net Zero Industry Wales.
That process identified more than 25 potential solutions focused on accelerating connections, increasing flexibility and extracting greater capacity from existing electricity infrastructure.
Roisin Quinn, President of National Grid Electricity Distribution, said:
“Our role is to make sure customers can access the electricity they need to grow, decarbonise and invest with confidence. That starts with listening and understanding what matters to them.
“This programme is a direct response to what industrial businesses in South Wales have told us they need, turning those conversations into action that unlocks investment, growth and opportunity across Wales.”
Access to electricity is increasingly becoming an important consideration for energy-intensive industries and major investment projects, particularly as businesses electrify processes traditionally powered by fossil fuels.
For South Wales, the issue is particularly significant because of the concentration of heavy industry, renewable energy projects and proposed developments within the industrial cluster.
NZIW Chief Executive Ben Burggraaf said improving electricity access could strengthen Wales' ability to attract new investment.
“Wales has the potential to establish itself as a Clean Energy Transition hub and remain a cornerstone of the UK industrial base, building on its strength as a major energy producer and manufacturing area for high value goods and services for over a century.
“The Celtic Freeport is a key initiative to unlock this potential as part of the wider SWIC cluster plan. Electricity access is a bottleneck and accelerating access is critical in attracting (foreign) investment.
“This multi-year innovation programme will allow us to trial concepts to get more out of existing capacity, exploit synergies across projects and industrial customers, and maximise local generation.”
The Celtic Freeport includes development sites across Neath Port Talbot and Pembrokeshire, where significant industrial and clean-energy investment is planned.
The programme could provide an opportunity to test new approaches on those sites before successful solutions are considered more widely.
Cathy Hall, Interim Chief Executive of Celtic Freeport, said:
“The Celtic Freeport includes many of the key economic growth opportunity sites in South Wales.
“This collaboration takes advantage of the Freeport's Investment Zone status to allow us to be first to test concepts that improve access to electricity and support economic growth, for the benefit of the wider South West Wales supply chain.
“As we move into the delivery phase for our projects, exploring innovative solutions to known power constraints will be crucial to realising the growth potential of the Freeport.”
The programme builds on work undertaken through the Energy Networks Innovation Taskforce (ENIT), which brings together industry, network operators and energy specialists to develop practical solutions capable of reducing network costs, improving outcomes for customers and supporting economic growth.
It will contribute particularly to the taskforce's work on accelerating industrial and business connections and developing more decentralised approaches to balancing the electricity system.
Emily Spearman, Innovation Director at National Grid Electricity Distribution, said:
“Working closely with customers is central to how we innovate. Our partnership with Celtic Freeport and Net Zero Industry Wales gives us a unique opportunity to collaborate with industrial customers and partners, testing and demonstrating new approaches that can accelerate decarbonisation, unlock growth and help shape the future energy system.”
If the trials prove successful, the significance could extend beyond individual Freeport projects. They could demonstrate how greater flexibility and smarter management of existing electricity infrastructure can support industrial investment while larger-scale upgrades to the network are being developed.
