Billions in Grid Connection Rebates Going Unclaimed as UK Developers Miss Out on ‘Free Money’

A shocking knowledge gap is costing UK developers and the public sector billions of pounds in missed funding. More than 65% of Facilities Managers, Energy and Sustainability Managers, and Development Directors we’ve spoken to were not aware of the role IDNOs can play in reducing project costs.

At the heart of this oversight is the Asset Adoption Value (AAV) — a regulated rebate paid when an IDNO adopts the grid connection assets required for a new connection. The size of the AAVs is based on the type and size of the grid connection and can significantly reduce the overall cost of electrical grid upgrades but are frequently overlooked, or claimed by contractors without the client ever knowing.

Developers are missing a trick

says Suzanna Lashford, Head of Business Development at Vattenfall IDNO.

This is effectively free money — a regulated rebate that offsets capital expenditure. Yet it’s still flying under the radar for more than half of the people involved in procuring new grid connections within the public sector and the wider construction industry.

This knowledge gap is particularly relevant to the public sector, where upgrades for EV infrastructure, electric boilers, decarbonisation or new building projects routinely struggle for funding.

Simple Grid Connections: A Game-Changer for Sub-2MVA Projects

To close the knowledge gap and simplify the process, Vattenfall IDNO has launched Simple Grid Connections, a new consultancy service specifically designed for commercial developers, UK businesses, and public sector organisations requiring grid connections under 2MVA.

For just £1500, the service provides:

• Expert analysis to find the most cost-effective Point of Connection
• Full support for grid connection applications and amendments
• A mini tender process to reduce contestable works costs
• A detailed quote including an Asset Adoption rebate
• Free legal support for wayleaves and land rights
• A money-back guarantee: If we cannot save the client money on their overall connection fees, we will refund the Vattenfall consultancy fees.

We created the Simple Grid Connections service to take the pain and confusion out of grid upgrades

says Bilgin Oralerkaya, a Senior Business Developer, and Manager of grid consultancy service at Vattenfall IDNO.

There’s so much money being left on the table – whilst carbon reduction and net zero projects struggle for funding – it's a crazy situation! Commercial grid applications can be complex for people who are not familiar with the process but our team has developed a powerful tool to help clients identify a suitable Point of Connection and can submit grid applications on their behalf, which massively reduces the administrative burden, maximises the chances their application being approved, and saves them money at the same time.

Billions in AAVs Unclaimed

With construction costs rising and sustainability targets tightening, every pound matters but industry insiders estimate that billions of pounds in potential AAV rebates remain unclaimed across the UK due to lack of awareness or poor advice.

Ron Plunz, Director at Alumno Group that designs and builds student accommodation, has benefitted directly from Vattenfall’s service:

We’re incredibly glad we reached out to Vattenfall IDNO to adopt the grid connection for our latest student accommodation project. The original quote from the local DNO for contestable works was significantly higher than expected, but Vattenfall offered a much more competitive solution. Their Asset Adoption Value and tendering process helped us reduce our connection fees by 95% — a huge saving that made a real difference to the viability of the scheme. Their support, transparency, and expertise were outstanding throughout.

The message is clear: grid upgrades cost less if developers work directly with an IDNO to adopt the assets. With the launch of Simple Grid Connections, Vattenfall IDNO is arming the UK property sector with the tools — and the knowledge — to make smarter, more affordable energy infrastructure decisions.

Developers can contact us for a free consultation about their projects.