National Grid has outlined “unprecedented” plans to invest £35 billion in its electricity-transmission business over the five years to March 2031.
The FTSE 100-listed energy infrastructure group said the investment includes around £11 billion to maintain and upgrade existing networks and about £24 billion for pipeline investment, including £15 billion to increase network capacity.
It said the plans would see an “unprecedented level of investment” and would almost double the amount of energy that can be transported around the UK.
The plans also contribute to the group’s wider UK investment, which will support 55,000 more jobs by 2030, according to National Grid.
John Pettigrew, chief executive of National Grid, said: “This plan represents the most significant step forward in the electricity network that we’ve seen in a generation.
“Through it we will nearly double the amount of energy that can be transported around the country, support the electrification of the industries of today and tomorrow, create new jobs, and support inward investment for the UK.
“It is an ambitious plan, set to future-proof the network with strategic capacity and flexibility for the longer term.”
He added: “It is now critical that Ofgem plays its part in developing an investable framework that will allow us to deliver at the unprecedented scale and pace that is needed to meet the UK’s ambitious climate goals.”
The £35 billion is not an announcement of new funds National Grid is hoping to raise; rather the figure is its planned spending for the upcoming five years pending Ofgem approval.
National Grid covers the upfront costs for new projects and infrastructure with support from investors, the details of which have not been made public by the group. Those costs are gradually passed on to consumers over a 40-year period.
The investment plan comes against a backdrop of fast-growing demands on Britain’s electricity network as the region transitions to renewable energy.
Research by the International Energy Agency last year found that engineers will need to roll out 600,000km of electric cabling before 2040 to help meet growing demands.
The investment details come after National Grid sold the Electricity System Operator (ESO) – which manages the UK’s electricity supply – back to the Government for £630 million in September.
The deal saw the ESO renamed the National Electricity System Operator (Neso) and return to public hands.
