Grid constraints and industrial decarbonisation - Preliminary findings from IDRIC evidence gathering, October-November 2023 Main take aways

• Grid delays may also have an impact on the decarbonisation of businesses and sectors downstream in the supply chain, due to delays to the supply of low carbon and sustainable fuels. [...] While the prevailing discussion to date has focused on delays to connecting large scale renewable projects, it is crucial to recognise the impact of grid connection issues on the demand side, where new or upgraded grid connections are required to enable industrial users to deploy a range of technologies critical for reducing fossil fuel use, and therefore greenhouse gas emissions, in industrial an. [...] The availability of adequate connection arrangements to export this electricity off site can be a critical element of overall viability for such projects, both to export to other sites within the same organisation or to sell back to the grid. [...] • There is emerging evidence that grid connection delays may have broader impacts on the decarbonisation of other companies within supply chains, as well as the wider economy due to restrictions in the supply of low carbon fuels and CCS services. [...] This includes multiple-year delays to the delivery of critical low carbon hydrogen and CCS projects in the industrial clusters, extending well beyond their 2030 targets, as well as delay to a local authority project looking to produce hydrogen to supply a public vehicle fleet, among others.