The UK is generating more clean energy than ever before. Demand for electricity is rising. Net zero targets are clear. So why are there so many bottlenecks when it comes to bringing large-scale energy projects to life? In most cases, it’s because of the distribution. The grid is struggling to keep up with the way energy is produced and consumed in 2026.
This is the backdrop to a new consultation opened by the National Energy System Operator on Regional Energy Strategic Plans. The consultation aims to rethink how electricity and gas distribution networks are planned nationwide. It’s a move that is long overdue. Without reform soon, bottlenecks will stifle investment and delay the decarbonisation targets.
In this article, we’ll tell you more about it.
A grid for a different era
The UK’s distribution networks were designed for a slower, more predictable energy system. Power came from a small number of places. Demand changed gradually. Planning decisions could be taken in isolation. Unfortunately, this model no longer works.
Electricity and gas networks are still mainly planned separately, with decisions made for the now rather than strategically. As a result, upgrades to the network often lag behind changes in generation and demand. As the UK’s renewable capacity expands, this gap becomes more and more visible.
Large renewable projects are failing to deliver on time because grid connections are delayed or constrained. Developers can secure planning consent and investment, only to face years of waiting to connect. In some cases, projects are scaled back or shelved altogether.
This leads to a costly mismatch. Generation capacity exists, or is close to completion, but the network cannot absorb it. We need a coordinated planning regime that aligns investment decisions with how the energy system is evolving.
Rising demand
There are problems on the supply side, as illustrated in the previous section, but demand-side pressure is increasing just as fast. The UK’s need for electricity continues to rise, especially in the non-domestic sector.
In the new age of AI, data centres are becoming a new major driver of demand. These facilities require constant, energy-intensive power. Given that AI use is only going in one direction, this represents a seismic change in how energy is consumed.
Grid planning has not kept pace with this change in demand. Energy use is rising unevenly across the country, depending on where data centres and other high-energy users choose to locate. Networks designed around uniform, historic patterns now face sharp, localised pressure.
Without better regional planning, the system risks underserving some areas and overserving others. That increases congestion, delays new connections and raises costs across the network. Both energy producers and large-scale users feel the impact.
Regional Energy Strategic Plans
NESO’s consultation proposes a more joined-up approach through Regional Energy Strategic Plans. The core idea is simple. Electricity and gas distribution should be planned together – and over a longer timescale.
Rather than reacting to individual connection requests, planning would be based on expected regional demand and generation. This would allow networks to anticipate change rather than chase it.
The plans are intended to:
- Align network investment with regional demand and generation forecasts
- Reduce bottlenecks
- Improve coordination between electricity and gas networks
- Support faster delivery of new capacity
The consultation frames this as a way to unlock capacity that is already being built, so fewer projects fall by the wayside, wasting time and money.
Looking to the future
It’s clear that there’s a problem with energy distribution in the UK. Planning can’t keep pace with changes in generation or demand. AI and the growth of data centres are only exacerbating these issues. We need to be able to make quicker planning decisions, then deliver them more effectively.
Regional Strategic Energy Plans will not solve every problem. Grid constraints will not disappear overnight. But it’s a start. By reforming how planning decisions are taken, there will be fewer delays and faster progress.
Hitting net zero targets depends as much on governance as it does on generation. There’s no point generating all this clean energy if it can’t be connected to customers via the grid. Better coordination is essential. If this consultation delivers, it could significantly change energy distribution for the better.