A lack of awareness about Independent Distribution Network Operators (IDNOs) is costing UK developers and the public sector billions of pounds in missed funding, according to Vattenfall IDNO.
The company says 65% of facilities managers, energy and sustainability managers, and development directors it has spoken to were unaware of the Asset Adoption Value (AAV) – a regulated rebate paid when an IDNO adopts grid connection assets for a new project.
The value of the rebate depends on the size and type of connection and can significantly reduce grid upgrade costs, yet Vattenfall says it is often overlooked or claimed by contractors without the client’s knowledge.
Suzanna Lashford, head of business development at Vattenfall IDNO, said: “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.”
The company has launched Simple Grid Connections, a consultancy service for projects under 2MVA, aimed at commercial developers, UK businesses, and public sector bodies.
For £1,500, the service includes analysis to find the most cost-effective point of connection, support for applications and amendments, a mini tender process, a detailed quote including any rebate, free legal support for wayleaves and land rights, and a money-back guarantee if savings are not achieved.
Bilgin Oralerkaya, senior business developer and manager of the service, said: “Commercial grid applications can be complex for people who are not familiar with the process, but our team can identify a suitable point of connection, submit applications, and save clients money at the same time.”
Vattenfall says billions of pounds in potential AAV rebates remain unclaimed due to poor advice or lack of awareness.
Ron Plunz, director at Alumno Group, said Vattenfall’s approach helped cut connection fees on a student accommodation project by 95%, making a critical difference to its viability.
