UK industry will face network constraints without investment in critical electricity infrastructure

• New research warns that without further investment, the UK’s electricity network will become significantly constrained [1] from 2030 as the economy electrifies.
• Report from the UK Energy Research Centre (UKERC) and the Aldersgate Group finds that 42% of large industrial sites could experience power constraints in 2030, increasing to 77% in 2050.
• It highlights that industrial decarbonisation through electrification can accelerate emissions reductions and drive UK competitiveness, but that grid upgrades are crucial to enable this progress.

Industrial decarbonisation is fundamental to delivering net zero and driving future economic growth. The UK’s £217bn manufacturing sector directly employed 2.6m people in 2024 [2], while electrification of industry could deliver more than 40% of the greenhouse gas reductions needed by industry to help reach the UK’s net zero target.

Investment in critical grid infrastructure is vital to enable this change. This report features modelling from the University of Leeds, working as part of UKERC, which finds that industrial decarbonisation through electrification will increase the sector’s power use by 78% between 2024 and 2050.

Without a clear plan to accommodate for this increase in electricity use, it finds that 42% of large industrial sites will experience power constraints in 2030, increasing to 77% in 2050.

The report calls on government to ensure that electricity networks are strengthened according to new demands, and anticipatory investment is enabled to support industrial decarbonisation. It also recommends that policymakers provide clarity on plans for industrial electrification, while strengthening data on future industrial electricity demand to create an accurate picture of future needs.

Rachel Solomon Williams, Executive Director at the Aldersgate Group, said: “Industrial decarbonisation presents a significant opportunity for the UK, offering a chance to boost competitiveness, supply the growing renewables sector, and drive regional prosperity. Success will depend on the government providing clarity on the decarbonisation pathways available to businesses. Without a clear strategy for electrification, and the investment to back this up, industry will face power constraints, hindering their effectiveness. Government must deliver a clear vision across both power and industry to ensure that decarbonisation is achieved while driving prosperity across the country.”

Prof Peter Taylor, UKERC Co-Director and an author of the report, said: “While significant policy attention has been given to how transmission constraints may impact the expansion of renewable generation, far less focus has been placed on the challenges for the demand-side posed by limited distribution network capacity. Potential network constraints could hinder UK industry and other sectors striving to cut emissions through increased electricity use. Our report provides some much-needed quantification about the nature and size of these challenges, and we hope that it can help inform future policy decisions.”