In this episode, Part 2 of a 4-part series on The Demand Connection Conundrum, Connectologist® Pete Aston and colleague Kyle Murchie speak with Ryan Adams, Managing Director at Innova, exploring the regulatory barriers preventing hyperscale demand projects—particularly data centres—from connecting efficiently to the transmission network.
The fundamental problem: Demand customers cannot own transmission assets, forcing National Grid to build costly step-down infrastructure that consumes scarce substation space desperately needed for clean power connections.
No demand license regime – Unlike generators, demand customers have no regulatory framework to own transmission assetsMassive space inefficiency – Data centres requiring step-down infrastructure consume up to 10x more substation space than direct high-voltage connectionsHybrid project uncertainty – CP30-protected renewables paired with data centres stuck in limbo due to conflicting connection agreement requirementsGeographic inconsistency – Scottish TOs build networks to customer sites; NGET doesn'tInvestor confidence erosion – Overlapping policy uncertainties (AI Growth Zones, Strategic Spatial Energy Plan, demand queue curation) make infrastructure investment decisions impossibleQueue curation paradox – Hyperscalers won't commit without connection certainty, but projects can't demonstrate viability without hyperscaler partnershipsImmediate – Ofgem issues clarification letter on Electricity Act interpretation (potentially early 2025)Near-term – NGET adopts Scottish model, building transmission to customer sitesStrategic – Create demand license regime mirroring generation licensesRyan emphasizes growing momentum across DESNZ, Ofgem, and NESO, but stresses the need for bold leadership before Gate 2 offers "bake in" current inefficiencies. His six-month goal: either the Ofgem letter or NGET's commitment to build out—both "absolutely doable."
Make sure to listen to Parts 3 and 4 with Spencer Thompson (Eclipse) and David Wildash (Apatura) to explore these issues from different industry perspectives and hear the complete picture of this critical infrastructure challenge.
Listen to the full series:
📌 Part 1 - Pete Aston's Series Introduction: https://youtu.be/8x3yP-kGF60?si=QnytC6Yh-d3HgVzh
📌 Part 3 - Spencer Thompson (Eclipse): https://youtu.be/-tMo5Z99jqs?si=yj9fYFg5tTJAWIuz
📌 Part 4 - David Wildash (Apatura): https://youtu.be/GYIA569aZ7A?si=RAuvp7O5h7h77iDi
Recorded 13th November 2025
This content was recorded on an earlier date. The connections landscape changes rapidly, so please treat any facts, figures, and guidance as a point-in-time view and verify current information before relying on it.
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