Navigating the Electric Grid: How IDNOs Provide a Simplified Path

25/07/2024

Suzanna Lashford, Business Development Manager at Vattenfall IDNO, explains how a more flexible and ‘value-engineered’ approach can save businesses time and money when applying for a new commercial grid connection.

Securing a commercial grid connection in the UK used to be a lengthy, singular journey fraught with challenges. However, with rising demand for clean energy and consumer feedback pointing out the complexity and inflexibility of the process, new, more adaptable options have emerged to speed up our transition to an electrified future.

Traditionally, Distribution Network Operators (DNOs) managed all grid connection applications across the UK. However, in 2000, Independent Distribution Network Operators (IDNOs) were introduced to help ease the workload and foster market competition. Both DNOs and IDNOs are licensed energy professionals adhering to industry standards, but IDNOs distinguish themselves by offering a more tailored, customer-centric approach to network design, with a strong emphasis on value engineering.

“IDNO’s have different priorities,” explains Suzanna Lashford, Business Development Manager at Vattenfall Networks. “Like DNOs we are equally focused on delivering safe and secure grid infrastructure, and resilient designs which will last; but we’re also keen to understand developer’s goals and longer-term objectives.”

Tailored Solutions For Diverse Needs

While the DNO route may suit experienced developers familiar with technical terminology and requiring less support, those with ample capital, or those less affected by longer application processes, it is often not the most efficient or cost-effective solution. Due to their significant workload, DNOs often cannot tailor their approach to individual client needs. Consequently, more businesses are approaching IDNOs after receiving quotes and design proposals from their local DNOs, seeking a more flexible and customer-oriented approach to gaining a connection.

IDNOs, being inherently customer-focused, deliver bespoke solutions that maximize efficiency and minimize costs. Their flexibility allows for innovative thinking and opportunities for improvements, such as alternative cable routes, different configurations of onsite infrastructure, and various technology choices, components, and materials.

Lashford elaborates: “For example, Vattenfall IDNO might propose a different cable route between the local substation and the client’s site that, while shorter and cost-saving, crosses several different landowners’ properties. This might seem complex, but our in-house legal team specializes in obtaining land rights, ensuring a cheaper solution without burdening the client with managing multiple landowners.”

Planning Ahead for an Electrified Future

By partnering with an IDNO, businesses have an alternative for developing their electrical infrastructure in alignment with their future plans. If a business anticipates needing more power or aims to export power from renewables, the connection can be designed to keep initial costs low while allowing for future expansions. This approach helps future-proof against additional long-term costs. Another significant advantage is that IDNOs can reserve grid capacity ahead of time, releasing power as needed through flexible ramping rates, leading to substantial cost savings. This proactive approach ensures businesses can accommodate planned capacity upgrades efficiently.

Given the increasing electrical power demands to meet net-zero and electrification goals, partnering with an IDNO for grid connection upgrades becomes a strategic decision. Value engineering is crucial for saving clients time, effort, and money while contributing to the UK’s ambitious goal of decarbonizing the power system by 2035.