Recycling’s power struggle: The grid challenge that won’t go away
The recycling and demolition industry faces an energy bottleneck. IDNOs are proving there’s a better way, providing more flexible connections that could transform the industry’s power supply...
Power-hungry operations, rising costs, and a slow-moving grid are making it increasingly difficult for the recycling and demolition industry to expand and meet its sustainability commitments. The National Grid’s capacity crunch has become a national issue, with developers across industries facing waits of up to 10 years for new connections. In an industry where operational delays translate directly into lost revenue, businesses need faster, more adaptable solutions — this is where IDNOs are stepping in.
A power problem holding the industry back
Energy supply is a persistent challenge for companies like S. Norton, a leading UK metal recycler. Recycling operations are among the most energy-intensive industrial processes, and scaling up isn’t as simple as plugging into the grid.
“Most of the challenges we face at the outset of any project to secure or increase our electricity supply relate to assessing what power is available and then balancing our current and future needs against the capital costs of installation and availability charges,” explains David Hobson, Capital Projects Manager at S. Norton.
The problem is widespread. Across the industry, companies face growing delays in securing or upgrading power connections, often due to network constraints or regulatory red tape. “Ensuring we understand and comply with the required regulations has also become more challenging and can lead to delays at the outset of a project,” Hobson adds. These obstacles slow down investment, hinder growth, and create uncertainty for businesses already grappling with economic pressures and decarbonisation goals.
What IDNOs bring to the table
Unlike traditional Distribution Network Operators (DNOs), which own and manage large sections of the UK’s energy grid, IDNOs focus on developing and operating bespoke network solutions for businesses and industrial sites. By working with an IDNO, recycling and demolition firms can access more tailored, cost-efficient grid connections without the bureaucracy and delays that often accompany DNO involvement.
“Supporting companies in their journey towards net zero while ensuring they have the essential network infrastructure they need is a key part of what we do,” explains Stewart Dawson, Managing Director at Vattenfall IDNO, on why this approach is increasingly beneficial to high-energy industries. “The flexibility and cost benefits we provide are making a tangible difference.”
One major advantage of IDNOs is their ability to fund and own the electrical infrastructure required for new connections. This reduces the upfront capital costs for businesses and allows them to focus resources elsewhere — whether on expanding operations, investing in renewables, or improving efficiency. Additionally, IDNOs offer greater agility in designing grid solutions that work around space constraints, which is particularly crucial in the demolition and recycling sectors, where open land is often limited.
The way forward
Energy costs are squeezing margins, regulatory pressures are mounting, and the grid isn’t always keeping up with demand. IDNOs provide a viable way forward—not just as an alternative to DNOs but as strategic partners that can unlock new efficiencies, lower costs, and enable long-term growth.
“If an IDNO could improve our ability to assess the availability and costs associated with any power upgrades, this would be beneficial,” Hobson says. As the UK pushes ahead with its decarbonisation goals, businesses that embrace innovative energy solutions will be best positioned to thrive in an increasingly electrified, cost-conscious world.