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25 March 2026 - As generation, storage and electricity demand increasingly share grid infrastructure, hybrid connections could play an important role in creating a more flexible and efficient energy system. As the connections framework continues to evolve, industry engagement will be critical.
Britain's electricity network was designed around a fundamentally different energy system. For decades, electricity flowed in one direction, from large centralised power stations to homes, businesses and industry. The rapid growth of renewable generation, energy storage and other distributed technologies has transformed that model. Power now enters and exits the network at multiple points, creating new operational challenges for infrastructure that was never designed for bi-directional flows at this scale.
At the same time, electricity demand is expected to rise significantly. The electrification of heat, transport and industry is bringing new loads onto the network, while data centre development continues to accelerate across the country. Meeting the UK's ambitions for offshore wind and solar deployment will require substantial investment in new transmission infrastructure, much of which is only now moving through the planning process.
The National Plan for Energy Infrastructure
In response to these challenges, the National Energy System Operator (NESO) has taken on a new role as strategic planner for Britain's future energy system. Through the Strategic Spatial Energy Plan, NESO is assessing where generation, network infrastructure and major demand centres should be located to deliver a cost-effective, secure and decarbonised energy system.
For the first time, energy infrastructure is being considered through a whole-system lens, balancing network capacity, economic value, environmental impacts and regional needs. The decisions made through this process will help determine how Britain's energy system develops over the coming decades, making industry engagement essential as the framework takes shape.
A New Approach to Grid Connections
One approach to making better use of available network capacity is the development of hybrid connections, where energy generation and demand are connected through a shared grid connection point. By combining energy production with large electricity users, these projects can make more efficient use of existing network capacity. Surplus renewable electricity can be used on site when generation is high, while flexible demand and storage can help balance the use of available capacity across the wider network.
As renewable generation increases and the system becomes more dependent on weather conditions, this flexibility is likely to play an increasingly important role in supporting a secure and efficient electricity system.
This approach closely reflects the model PandoREH is already developing through its Renewable Energy Hubs.
The Renewable Energy Hub Model and Hybrid Connections
The Renewable Energy Hub model developed by PandoREH applies this approach in practice. By co-locating generation assets such as solar, wind and energy storage alongside major electricity users, including data centres, EV charging infrastructure and hydrogen production, energy can be consumed closer to where it is generated. This improves utilisation of existing grid capacity and can reduce the need for reinforcement works, helping to lower overall system costs.
With NESO and network operators focused on accelerating connection reform, projects that can demonstrate efficient use of network capacity could be increasingly relevant within the evolving connections framework. Hybrid developments have the potential to support these objectives by reducing their net impact on the wider system.
Grid Support by Design
Successfully delivering a hybrid connection requires more than simply co-locating generation and demand.
As conventional thermal power stations retire from the system, the grid loses many of the stability services historically provided by large synchronous generators. Technologies such as energy storage and grid-forming inverters can increasingly provide those services, but their effectiveness depends on careful system design, control strategies and ongoing operational management.
This is where expertise becomes critical. A well-designed Renewable Energy Hub is not simply a passive consumer of network capacity. Managed effectively, it can contribute to wider system stability, support local balancing and reduce reliance on costly interventions procured at a national level.
Why Industry Must Engage Now
The policy framework being developed today will influence energy infrastructure decisions for decades to come.
As connection reform and strategic energy planning develop, the treatment of projects combining generation, storage and major electricity demand will become increasingly important. Developers, investors, operators and industry bodies have an opportunity to contribute evidence, operational experience and practical deployment insights as the framework evolves.
PandoREH is actively contributing to this discussion, working with stakeholders across the energy sector to demonstrate how Renewable Energy Hubs can support a more flexible, resilient and cost-effective energy system. As the UK plans for the next generation of energy infrastructure, the ability to combine generation, storage and flexible demand through shared grid infrastructure has the potential to become an increasingly important part of the solution.
References & further reading
National Energy System Operator (NESO) – Strategic Spatial Energy Planning (SSEP)
Ofgem – Demand Connections Reform: Call for Input, 13 February 2026
