Octopus Energy, a British utility, is proposing to create its own pylon network, which would rival the giant National Grid system, originally built in the 1930s.
The regulator Ofgem is in talks with Octopus over this disruptive plan.“There’s increasing support for this idea that there’s more than one way to skin a cat,” Octopus Chief Executive Greg Jackson told the Telegraph newspaper. “If we could find ways to build power infrastructure that are faster and cheaper, who wouldn’t want it?”
As Energy Central noted here, National Grid has a backlog of energy projects, particularly renewable ones, waiting to join the network. Many monopolies have been broken up in the UK and it seems that competition might be about to happen for the transmission backbone.
There are environmental and visual objections, however, to building a new network of pylons. Community associations and MPs have opposed new above-ground transmission infrastructure in their areas. Greg Jackson feels that bringing competition into the marketplace would encourage new methods of energy distribution. “In these areas where people are worried about pylons, there can be ways of building infrastructure where there might be less community resistance,” he said. “There are so many different routes you could use, so many different construction technologies and different ways of solving it. It is ripe for innovation.”
Octopus Energy has already acquired smaller firm Eclipse Power Networks, which currently builds small-scale local power distribution networks. It connects industrial and residential microgrids, battery storage and EV charging stations to the National Grid.
Legally, Ofgem has to assess such competition for the onshore energy transmission market under the 2023 Energy Act. The regulator is required to consult with stakeholders about this proposal so is expected to open a public consultation in Spring 2024.