Logo
Submit a question

Q0040

What should a developer investigate about electricity infrastructure before acquiring a site?

Primary Category

Grid & Transmission

Question Type

Project Development

Tags

Grid; Site Selection; Infrastructure

Short Answer

Before acquiring a site, a developer should determine whether the required electricity import or export is technically feasible, commercially affordable and deliverable within the project timetable. Desktop maps and nearby power lines are useful only for screening; material land commitments should be conditional on written utility engagement, route and substation due diligence, and—where appropriate—a project-specific technical study.

Why This Matters

A site can have excellent land, planning and resource characteristics but still fail because of grid capacity, connection cost, right-of-way problems or an unrealistic energisation date. Early grid due diligence protects the developer from paying for land that cannot support the intended project.

What We Know

The investigation should cover the following areas.

#### 1. Define the project’s actual electrical requirement

For a generating project:

For an electricity consumer:

#### 2. Identify candidate connection points

The developer should identify more than one possible node and establish:

TNB’s Distributed Generation Hosting Capacity Map can support initial screening for medium-voltage renewable connections, but TNB describes the nodal information as a preliminary guide. It does not replace a project-specific study. TNB: Distributed Energy Resources Integration

#### 3. Confirm the likely connection scheme

Investigate whether the project needs:

#### 4. Investigate the route, not only the endpoints

A credible route assessment should identify:

#### 5. Protect substation and infrastructure land

TNB’s connection guidance states that substation sites and feeder routes should be identified during the development-plan stage. Large developments may need to allocate land for distribution substations, main intake substations and 132 kV or 275 kV wayleaves. TNB: Connection Guidelines

For electricity-consuming developments, TNB may require the applicant to provide substation land and buildings. The site may have to be transferred or leased to TNB at nominal consideration, subject to the applicable requirements. TNB: Supply Application

The developer should therefore confirm:

#### 6. Establish cost responsibility

The budget should distinguish:

#### 7. Test the programme

The connection schedule should include:

The developer should compare this critical path with land-option expiry, financing deadlines, programme awards, construction contracts and customer commitments.

#### 8. Verify the status of any quoted capacity

Ask:

#### 9. Structure the land transaction around grid risk

Before unconditional acquisition, consider:

#### Minimum evidence before a major land commitment

The appropriate threshold varies by project, but a developer should ideally have:

What We Don't Know

Connected Questions

People & Organisations

Sources

HELP BUILD THE ANSWER

What would you add to this answer?

Have a useful source, first-hand experience or a different interpretation? Help us strengthen this brief by sharing evidence, filling a gap or suggesting a correction.

Join the investigation

What question should we investigate next?

Economists, engineers, developers, investors, researchers, regulators and energy users see different parts of the transition. Tell us what you think deserves investigation.

Submit a question
WHY THESE QUESTIONS MATTER

Where could the next opportunity emerge?

Questions create opportunity. Understanding where the energy transition is heading helps reveal the technologies, projects, capital and expertise that will be needed next.

01

Technology

The solutions that turn open questions into deployable answers — from storage chemistries to grid intelligence.

02

Projects

The pipeline of solar farms, substations and interconnections waiting to be built and financed.

03

Capital

Where investment flows next as the transition reshapes risk, return and the shape of the market.

04

Expertise

The engineers, economists and regulators whose knowledge decides how fast the answers arrive.