Developers missing out on grid connection “free money”

Grant Prior 10 months ago
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A knowledge gap is costing UK developers billions of pounds in missed funding according to regulated Independent Distribution Network Operator Vattenfall IDNO.

The firm said 65% of Facilities Managers, Energy and Sustainability Managers, and Development Directors they’ve spoken to were not aware of the role IDNOs can play in reducing project costs.

At the heart of this oversight is the Asset Adoption Value (AAV) — a regulated rebate paid when an IDNO adopts the grid connection assets required for a new connection.

The size of the AAVs is based on the type and size of the grid connection and can significantly reduce the overall cost of electrical grid upgrades but are frequently overlooked, or claimed by contractors without the client ever knowing.

Suzanna Lashford, Head of Business Development at Vattenfall IDNO said: “Developers are missing a trick. This is effectively free money — a regulated rebate that offsets capital expenditure.

“Yet it’s still flying under the radar for more than half of the people involved in procuring new grid connections within the public sector and the wider construction industry.”

The knowledge gap is particularly relevant to the public sector, where upgrades for EV infrastructure, electric boilers, decarbonisation or new building projects routinely struggle for funding.

Vattenfall IDNO has launched Simple Grid Connections a new consultancy service specifically designed for commercial developers, UK businesses, and public sector organisations requiring grid connections under 2MVA.

Bilgin Oralerkaya, a Senior Business Developer, and Manager of grid consultancy service at Vattenfall IDNO said: “We created the Simple Grid Connections service to take the pain and confusion out of grid upgrades,” says

“There’s so much money being left on the table – whilst carbon reduction and net zero projects struggle for funding – it’s a crazy situation! Commercial grid applications can be complex for people who are not familiar with the process but our team has developed a powerful tool to help clients identify a suitable Point of Connection and can submit grid applications on their behalf, which massively reduces the administrative burden, maximises the chances their application being approved, and saves them money at the same time.”

Ron Plunz, Director at Alumno Group that designs and builds student accommodation, has benefitted directly from Vattenfall’s service.

He said: “We’re incredibly glad we reached out to Vattenfall IDNO to adopt the grid connection for our latest student accommodation project. The original quote from the local DNO for contestable works was significantly higher than expected, but Vattenfall offered a much more competitive solution.

“Their Asset Adoption Value and tendering process helped us reduce our connection fees by 95% — a huge saving that made a real difference to the viability of the scheme. Their support, transparency, and expertise were outstanding throughout.”

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