26 Jun West London Business taking action on energy squeeze as power supplies reach capacity

West London Business is taking steps to address the “energy squeeze” in three of its boroughs, sparked by the unanticipated growth of data centres arising from the Covid-19 pandemic.

Andrew Dakers, Chief Executive, West London Business, said that while data centres are “a critical life blood of our modern economy” supporting “our digital infrastructure and every Teams or Zoom call we make”, they have “left us without any spare grid capacity in the boroughs of Ealing, Hillingdon and Hounslow. One fully operational data centre can soak up the power of a small town!”

He added: “The problem is that data centres’ growth through the pandemic wasn’t predicted so it wasn’t planned for, and the spare network capacity it soaked up means it is now impossible to bring forward much-needed large scale developments in parts of West London.”

The problem has been further compounded as the upgrade of the National Grid’s supply points to increase capacity could take until 2037.

Summit Chair, BBC Home Editor Mark Easton, asked: “How worried should we be about this? Is this going to solve itself or are we going to one day discover, we just haven’t got enough power.”

Mr Dakers underlined the issue, saying: “We’re there right now. When it comes to getting new homes and fulfilling our ambitions with the net zero transition, we are right up against it.”

He also told delegates: “At West London Business our board are clear that this is the number one strategic challenge facing our sub region today. The new homes West London needs, and the transition to net zero, are all reliant on resolving this energy squeeze. A complex mix of system upgrades must now be coordinated and delivered at pace, smashing down barriers to action.”

West London Business will publish a paper by the end of July setting out its thinking on solutions in five areas: upgrading grid supply points faster; significantly expanding solar installations; expanding the number of battery storage facilities; developing more semi off-grid residential and commercial schemes; how we re-use the heat of data centres and the underground network.

Action is underway in other quarters, too:

Firstly, at a regional level:

• The Greater London Authority has enabled some smaller residential development schemes that have been on hold in West London to be unlocked. Stretch cables will be run from these and spare capacity redeployed – an approach “strongly encouraged” by West London Business.
• A Local Area Energy Plan has been commissioned spanning the seven West London Alliance boroughs, along with Richmond and Wandsworth, to forecast future energy demands and explore use of solar and smart grids, and flexible technologies.
• Old Oak & Park Royal Development Corporation is providing free specialist advice to businesses and landlords on solar panels, as well as drawing up plans for a heat network to supply homes and businesses with low carbon heat recovered from data centres in the area.
• The Earls Court Development Company wants to capture heat from the underground which runs through the centre of the Earls Court site, to reduce electricity demand.

And at national level:

• Industry taskforce, the Energy Networks Association, is using the West London constraints as a case to lobby for regulation.
• National Grid, electricity companies and regulator Ofgem, are changing their approach to “queue management” meaning if projects are not progressing, they will have to move backwards in the queue or leave to allow other projects to progress. This means queued projects could connect up to 10 years earlier.
• An “amnesty” on customers’ unused capacity is also being introduced so this power can be applied elsewhere.
• UK energy Commissioner Nick Windsor is publishing a report this month on how the delivery of green infrastructure can be accelerated.