Councils need a place on the National Energy System Operator’s regional boards, so there is strategic planning to ensure new grid demands such as data centres do not hold up other developments such as housing.
The recommendation – referring specifically to London councils and GLA – was one of ten in a new report from the London Assembly Planning and Regeneration Committee titled ‘Gridlocked: how planning can ease London’s electricity constraints’.
The report was a response to pressure on London’s electricity grid, particularly in areas like Hillingdon, Hounslow and Ealing where GLA said capacity has been stretched to its limits, temporarily halting new housing developments.
GLA worked with stakeholders including National Grid and Ofgem to secure short-term fixes but the report says energy-intensive sectors such as data centres will require long-term strategic planning to avoid further grid constraints and delays.
The recommendations in full:
• The National Energy System Operator (NESO) should grant the GLA and London Councils places on the London Regional Energy Strategic Plan board.
• The GLA should aim for all London boroughs to have completed a Local Area Energy Plan (LAEP) so that it can inform their next round of Local Plans, as well as local energy infrastructure needs.
• The GLA’s Infrastructure Coordination Service should commit to holding regular meetings with neighbouring authorities.
• The GLA’s Infrastructure Coordination Service should publish the results of its data centres forecasting project as soon as it is ready, and not wait for the London Plan’s evidence pack.
• The Government should introduce a separate use class for data centres.
• The GLA should include a data centre policy in the next London Plan to enable a more strategic approach to their development, recognising their distinct and significant energy impacts.
• The GLA should include a policy as part of the whole life-cycle carbon assessment, requiring energy demand assessments for large energy users, like data centres, in the next London Plan.
• The GLA should ensure that, in conjunction with national regulations, the London Plan mandates future data centres to contribute to heat networks where appropriate.
• Ofgem’s heat network Market Framework should protect consumers, particularly low-income consumers, through regulated price benchmarks.
Chair of the London Assembly Planning and Regeneration Committee, James Small-Edwards AM, said: “Through this investigation we heard from councils, developers and residents about the delays, uncertainty and long-term risks posed by ongoing grid constraints. As demand for power rises, particularly from large energy users like data centres, we need a clear, strategic and long-term approach.
“The recommendations we’ve set out are an essential step towards managing these pressures fairly and ensuring London has the infrastructure it needs to support new homes and a growing economy.”