At Turley, we work with clients across the UK to develop innovative, practical approaches to energy on new and existing developments. A colleague recently shared Warwick District Council’s draft Local Plan, and it stood out for one simple reason: it is the first plan I have seen that explicitly references microgrids alongside the usual expectation to consider heat networks.
That single addition is more significant than it may appear. It highlights a growing recognition that the energy system is changing—and that planning policy needs to change with it. This feels like the right moment to make a plea; local plans should shift their focus from heat networks to microgrids.
Heat networks were originally promoted because they could accommodate a range of heat sources. In practice, almost all were delivered as gas CHP / gas‑boiler systems. Now that all new development is moving to heat pumps, this is less of an issue. It is just a case of whether heat pumps are centralised or decentralised.
In an all‑electric world, the real opportunity lies elsewhere.
A microgrid on a new residential development looks almost identical to a conventional scheme: individual heat pumps, hot water tanks, rooftop solar, EV chargers. The difference is that these assets are controlled as a single smart system, allowing energy to be shared, stored, and shifted across the site.
Residents retain the right to choose their supplier, but almost all will opt into the microgrid because it reduces bills. With consent, the operator can optimise car batteries, hot‑water tanks and heating systems to reduce demand at peak times and increase it when electricity is cheap or abundant.
This is already happening but should be almost universal. The benefits are substantial and immediate:
- Smaller grid connections — Grid constraints are now one of the biggest barriers to growth in the UK. Microgrids reduce peak demand, enabling smaller, cheaper connections and freeing up capacity for other development.
- Lower energy bills — By reducing grid costs, sharing energy locally and avoiding the absurdity of one building exporting solar at £X while the next imports at £3X, microgrids reduce whole‑site energy costs.
- Demand flexibility — As our national system becomes more intermittent, the ability to shift demand is essential. Microgrids automate this for residents and amplify the effect across a whole development.
- Lower CO₂ emissions — By increasing the use of on‑site renewables and reducing reliance on gas‑fired generation during peaks, microgrids cut emissions even though our regulations still fail to recognise variable grid carbon intensity.
These benefits are compelling on residential schemes—but on industrial and logistics sites, they are transformative.
The industrial opportunity: a live example
We are looking at this microgrid approach at a large proposed manufacturing and logistics park. This will include advanced manufacturing, large solar roofs, electric HGV charging and potentially on‑site generation from anaerobic digestion to create a highly dynamic energy environment.
A traditional approach would require each unit to secure a large grid connection “just in case”, while one unit exports power while another imports it.
A microgrid solves this. It reduces connection sizes, lowers running costs, accelerates delivery and improves the competitiveness of the entire park.
Why microgrids are missing from local plans
Despite these advantages, almost no Local Plans mention microgrids. Most still reference heat networks as the only alternative energy system. This is particularly surprising in London, where the GLA has been the strongest advocate for heat networks—even requiring gas‑based networks in some cases, rather than heat pumps.
Yet London also faces the most acute grid constraints in the country. A shift in the London Plan focus from heat networks to microgrids would reduce construction costs, shorten delivery timelines and support the capital’s growth ambitions.
National policy shows a similar blind spot. Billions have been spent subsidising heat networks and billions more on reinforcing the grid. Almost nothing has been invested in microgrids—despite the fact that they are applicable to the vast majority of new development. (A heat network can be part of a microgrid, if beneficial, but the microgrid is the fundamental requirement.)
What needs to change
Local plans evolve slowly, and it may be unrealistic to expect detailed microgrid policies in the short term. But planning officers can still make a meaningful difference by:
- Recognising microgrids as the best solution for most new development
- Interpreting existing policies flexibly to support their inclusion
- Asking developers to consider them as part of early masterplanning
National policy can and should move faster. We urgently need a framework that understands the value of microgrids—and of smart, flexible energy systems more broadly.
The bottom line
Microgrids are the answer for the problems of today and the opportunities of tomorrow. They reduce costs, reduce carbon, reduce grid pressure and increase resilience. They are simpler to deliver and more aligned with the future of the energy system.
A shift in policy focus to microgrids is not just desirable, it is necessary.
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