Future-proofing the UK? National Grid's £35 billion plan to transform our electricity supply

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.

National Grid has outlined “unprecedented” plans to invest £35 billion in its electricity-transmission business over the five years to March 2031. | PA

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 investment 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.

Russ Mould, investment director at AJ Bell, said: “It’s standard practice for utility companies to invest large sums on a five-year cycle as they upgrade infrastructure to keep it fit for purpose.

“National Grid’s £35 billion proposal sounds like an immense amount of money to spend, yet that’s what is required to meet growing demand for electricity. Whether that’s more homes being built, electricity-hungry data centres for all things AI or supporting the transition of industries to an electric world, electricity demands are getting bigger by the day.

“It’s clear that the UK’s network needs upgrading and this statement of intent by National Grid is a good step forward. The market is unfazed by the gigantic sum of money, with its share price barely moving on the news.”

Earlier this month bosses at electricity firm SSEN Transmission set out a £22 billion, five-year plan they said would help the UK towards its clean energy targets as well as supporting tens of thousands of jobs.

The company, a subsidiary of energy giant SSE, submitted plans to the energy regulator Ofgem pledging to spend at least £22 billion on its business plan for the period April 2026 to March 2031.