Prepared ahead of MultiModal 2025
For site developers, planners, and logistics asset owners: A smarter approach to energy access is becoming mission-critical.
As logistics and distribution demand continues to skyrocket—driven by e-commerce, automation, and the shift to electric fleets—access to reliable, scalable power has become a strategic concern. Yet developers routinely encounter delays and cost overruns when connecting new sites to the traditional public grid. In an age where speed to market and operational flexibility are key differentiators, it’s clear: we need a new approach to power infrastructure.
Public Power Networks: The old backbone under pressure
Distribution Network Operators (DNOs) have long managed the UK’s public power networks, delivering electricity through centralised infrastructure. While this system has served the country reliably for decades, it is increasingly unsuited to the demands of modern logistics.
Developers face growing challenges: –
- Grid capacity constraints are slowing down new connections, particularly in fast-growing logistics hotspots.
- Lengthy application queues can push back project timelines by months or even years.
- Rigid pricing structures and levies add costs that don’t always align with the real demands of a site.
These issues are not just inconvenient; they threaten the viability of phased developments and risk undermining investment confidence.
Private Power Networks: A faster, smarter alternative
Enter private power networks, including Independent Distribution Network Operators (IDNOs), microgrids, and private wire systems. These alternatives are transforming how power is delivered to logistics and industrial sites.
Private networks can offer:
- Faster connection times, thanks to localised infrastructure and leaner operations.
- Modular scalability, enabling energy infrastructure to grow in step with site development.
- Reduced network charges by bypassing some of the levies and statutory fees attached to public grid connections.
- Asset Adoption Value (AAV) payments, which offset capital costs by leveraging future network revenues.
They also provide greater resilience. By integrating battery storage, on-site generation, and real-time monitoring systems, private networks give developers more control over power reliability and sustainability.
“We are seeing Clients managing their future power needs and pricing with hybrid approaches of Private Power Agreements, efficient use of land for the right renewables for their site environs, alongside traditional grid agreements – reducing exposure to financial risk from a single source. This in turn helps the country’s transmission and distribution networks, and helps with their ramping profiles.” – Mike Barrett, Energy Market Lead
Phased Offtakes: A practical necessity with real challenges
Many logistics facilities do not reach full operational capacity on day one. A new warehouse might initially require 2 MW to run basic warehousing functions, scaling to 5 MW within three years as automation, EV charging, and refrigeration systems come online.
Phased offtake models allow developers to match infrastructure spending with operational reality—but they are not without complications: –
- Forecasting future demand accurately is difficult, and mistakes can lead to overbuilding or shortfalls.
- Contracts must be flexible yet financially sound to accommodate evolving loads.
- Grid compatibility can be challenging if smart systems are not in place to manage the interaction between private and public supplies.
Without the right energy planning and infrastructure, phased growth can become a logistical nightmare rather than a strategic advantage.
Hybrid Strategies: The best of both worlds
The most forward-thinking developers are no longer choosing between public and private networks. Instead, they are integrating both into a hybrid power strategy that offers the benefits of each.
A hybrid model might include:
- Private networks and microgrids as the primary supply, with embedded generation and storage.
- Backup grid access for peak demand and redundancy.
- Smart grid systems to dynamically manage loads, optimise usage, and enable participation in demand flexibility markets.
- Peer-to-peer energy trading, allowing sites to buy and sell energy across a network to manage surplus or shortfall efficiently.
Such approaches can dramatically reduce downtime, increase sustainability, and improve the business case for investing in on-site renewables.
We call this the “Hybrid Resilience Grid Model”—a flexible approach designed for high-growth, high-pressure logistics environments.
Strategic recommendations for developers
To future-proof logistics facilities and maintain competitiveness, developers should:
- Audit energy needs from day one: Understand not just current requirements but the full operational load expected over time.
- Design for flexibility: Incorporate modular private networks and smart grid-ready infrastructure at the planning stage.
- Partner with innovative providers: IDNOs and energy service companies can unlock AAV funding and faster routes to power.
- Plan for renewables: UK warehouse rooftops offer over 15GW of untapped solar capacity, according to a UKWA solar energy report. Solar + storage makes long-term financial and sustainability sense.
- Prepare for EV and automation: Charging infrastructure and robotic systems will shift your power profile. Ensure capacity planning accounts for this.
A strategic shift in thinking
For developers of logistics and distribution sites, power infrastructure is no longer a back-end utility concern. It is a boardroom issue, a competitive differentiator, and a strategic investment decision.
By combining the speed and flexibility of private networks with the stability and reach of the public grid and embedding smart systems that adapt to real-world operations, developers can build facilities ready for the demands of the next decade. Those who act now will not only avoid costly delays—they’ll position themselves at the forefront of a logistics revolution.
Multimodal 2025 presents an ideal platform to spotlight this shift. The future of logistics is powered by more than trucks and warehouses; it runs on smarter, faster, greener energy infrastructure. And the time to invest in that future is now.
At BWB, we’re actively delivering projects with energy generation and storage developers, IDNOs, and logistics clients. This hands-on experience gives us unique visibility of the best available power options across regions—and the strategic insight to help our clients align energy infrastructure with long-term growth and sustainability goals.
Talk to us about how to align your site’s energy strategy with your commercial ambitions.