TURNER & Townsend is advising clients to focus on navigating the impacts of a lengthening ‘connection queue’, as infrastructure and commercial demand drives electricity grid reform to improve connections.
The company’s Summer 2025 UK Construction Market Intelligence report (UKMI) predicts infrastructure tender values will rise at a faster pace than real estate in the coming years, partly driven by rising demand in the context of the government’s infrastructure strategy and investment in the expansion of the national power grid.
Real estate tender price inflation (TPI) is expected to increase from 3% in 2025 to 3.5% in 2026. Infrastructure inflation is predicted to stay at the higher rate of 4.5% in 2025, and rise to 5% over the next three years.
Turner & Townsend added that material costs remain ‘largely stable’, and other inflationary factors such as the rising costs of employer National Insurance contributions have been partially offset by the overall softening of construction demand.
Construction was the slowest growing sector of the UK economy in the first quarter of 2025, and total construction output stagnated in this period. Infrastructure-specific growth, however, experienced a significant jump – with new orders more than doubling.
Linked to this is the renewed emphasis on improving the grid network to power new homes, hospitals, infrastructure, advanced manufacturing, and data centres. Recent demand for connections has put the grid under pressure, with backlogs leading to long wait times. National Grid’s own connections assistant tool shows most new applicants will receive connection dates in 2036 or later.
Due to this, Turner & Townsend explained that electricity connections are often major considerations in project viability. The firm is now calling on clients to prioritise power connections in their programmes early and advising businesses to consider approaches to mitigate the impacts of competition and get connected sooner.
James Darrie, Scotland strategic lead at Turner & Townsend, said, “Scotland is at the forefront of the UK’s energy transition, with ambitious targets for renewables and net zero. But the growing strain on the electricity grid is a real challenge for delivering the infrastructure needed to meet these goals.
“In Scotland, where many major projects are in remote or rural areas, early engagement on power connections is absolutely critical. We’re working closely with clients to navigate these pressures, whether that’s through phased connections, on-site generation, or leveraging existing infrastructure to ensure that Scotland’s ambitions are not held back by grid constraints.”
