National Grid Electricity Distribution, Net Zero Industry Wales and Celtic Freeport have launched an innovation program to explore ways to make better use of existing electricity network capacity and support industrial development within the South Wales Industrial Cluster (SWIC).

The program will examine approaches that could help industrial businesses in South Wales access the network capacity needed to grow, decarbonize and attract investment.

The organizations will sign a memorandum of understanding outlining their shared commitment to the program and their plans for collaboration.

The program builds on work led through the Energy Networks Innovation Taskforce (ENIT), which brought together industry, network operators and energy experts to identify potential solutions for reducing network costs, improving customer outcomes and supporting economic growth.

The collaboration will test approaches that could allow industrial customers to connect to the network sooner by making use of existing capacity while longer-term infrastructure is developed.

Roisin Quinn, President, National Grid Electricity Distribution said, "Our role is to make sure customers can access the electricity they need to grow, decarbonize and invest with confidence. That starts with listening and understanding what matters to them. This program 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."

The first project will examine whether batteries controlled by the network operator can help manage electricity supply and demand and create additional capacity on the network.

If successful, the approach could help renewable energy projects and industrial customers connect sooner while making greater use of existing network capacity. The project is also intended to address connection barriers that can affect investment, jobs, supply chains and industrial development across the South Wales Industrial Cluster.

Ben Burggraaf, Chief Executive Officer, Net Zero Industry Wales, said, "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 program will allow us to trial concepts to get more out of existing capacity, exploit synergies across projects and industrial customers, and maximize local generation."

Cathy Hall, Interim Chief Executive, 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 realizing the growth potential of the Freeport."

The collaboration builds on the South Wales Industrial Dialogue, through which more than 30 industrial organizations worked with National Grid Electricity Distribution and Net Zero Industry Wales to identify potential solutions for improving access to electricity and supporting economic growth.

More than 25 potential solutions were identified through the dialogue, focusing on earlier connections, greater flexibility and improved use of existing network capacity.

The work supports two priority challenge areas identified by the Energy Networks Innovation Taskforce: industrial and business connection acceleration and decentralized system balancing.

Emily Spearman, Innovation Director, 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 decarbonization, unlock growth and help shape the future energy system.”