Welsh electricity network: new innovation programme launched 2026

Key Points

• National Grid Electricity Distribution, Net Zero Industry Wales, and Celtic Freeport have kicked off an innovation program that will run for several years and will focus on innovative approaches of using the current electricity network infrastructure in Wales.
• It is designed to support industry companies in South Wales access network capacity for growth, decarbonisation, and new investments especially within the South Wales Industrial Cluster (SWIC).
• A memorandum of understanding will be signed between the organizations outlining their commitment and collaboration.
• This innovation program has been inspired by the initiatives of the Energy Networks Innovation Taskforce (ENIT) and the South Wales Industrial Dialogue where over 25 potential solutions to increase electricity access have been outlined.
• Firstly, the program will assess whether batteries managed by the network operator can help balance supply and demand and create extra capacity in the electricity network.
• Leaders of the three organizations believe that electricity access is a bottleneck and that its accelerated access is crucial for investment and growth of the Celtic Freeport and the overall supply chain.

Wales (Wales Times) September 30, 2026 – National Grid Electricity Distribution, Net Zero Industry Wales and Celtic Freeport have launched an innovation programme to test new ways of making better use of the existing electricity network. The project, which will also support industrial growth within the South Wales Industrial Cluster (SWIC), aims to assist industrial businesses in South Wales to access network capacity for growth, decarbonisation and attract new investment. Organisations will sign a memorandum of understanding that sets out their shared commitment to the programme and how they will work together to take it forward.

How will the innovation programme improve electricity access for industry?

It will build on work led through the Energy Networks Innovation Taskforce (ENIT), which has brought together industry, network operators and energy experts to identify practical solutions that can reduce network costs, improve customer outcomes and support economic growth. In addition, the project will test practical approaches that could help industrial customers connect sooner, offering businesses confidence to invest by maximising existing capacity while longer-term infrastructure is delivered.

An earlier collaboration through the South Wales Industrial Dialogue saw more than 30 industrial organisations working with National Grid Electricity Distribution and Net Zero Industry Wales to identify practical solutions that could improve access to electricity and support economic growth. More than 25 potential solutions were identified, focused on earlier connections, greater flexibility and making better use of existing network capacity. The work supports two of the Energy Networks Innovation Taskforce’s priority challenge areas: industrial and business connection acceleration and decentralised system balancing.

What role will battery storage play in the first project?

The first project will explore whether batteries controlled by the network operator can help manage supply and demand, creating additional capacity on the electricity network. If successful, this could help renewable energy projects and industrial customers connect sooner, while making better use of the existing grid. By helping to reduce connection barriers, the project aims to support investment that can contribute to jobs, supply chains and long-term industrial growth across the South Wales Industrial Cluster.

What have senior leaders said about the initiative?

As reported by James Evison of Transport + Energy, Roisin Quinn, President, National Grid Electricity Distribution, said:

“Our role is to make sure customers can access the electricity they need to grow, decarbonise and invest with confidence. That starts with listening and understanding what matters to them. This programme 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.”

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 programme will allow us to trial concepts to get more out of existing capacity, exploit synergies across projects and industrial customers, and maximise 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 realising the growth potential of the Freeport.”

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 decarbonisation, unlock growth and help shape the future energy system.”

Background of the particular development

The innovation programme follows a series of wider efforts to prepare Wales’ electricity network for a renewable future and to accelerate industrial decarbonisation. National Grid Electricity Distribution has been consulting on its 2028–2033 business plan, seeking views on increasing network capacity, connecting new homes and businesses more quickly, and improving resilience to severe weather. Separately, National Grid has secured funding through Ofgem’s Strategic Innovation Fund for projects including work on regional energy planning and phase balancing as more customers adopt low-carbon technologies such as heat pumps and electric vehicles. The Celtic Freeport, designated as an Investment Zone, is central to Welsh Government plans to attract green investment, innovation, skills and jobs, with projects such as the Enhanced Advanced Manufacturing Production Facility and National Net Zero Skills Centre of Excellence at Baglan Energy Park in Port Talbot.

Prediction: how this development can affect industrial businesses and investors in South Wales

If the battery-led flexibility trials and related measures prove successful, industrial businesses and investors in South Wales are likely to see shorter connection times, more predictable access to network capacity and reduced risk when committing to decarbonisation and expansion plans. By demonstrating that existing infrastructure can be used more intensively through controlled storage and demand management, the programme could lower the perceived bottleneck around electricity access that leaders at Net Zero Industry Wales and Celtic Freeport have highlighted. Over time, this may strengthen the case for inward investment into the South Wales Industrial Cluster and Celtic Freeport sites, support supply-chain development, and help align industrial growth with Wales’ net-zero targets.