UK-based National Grid has revealed an investment plan of up to £35bn for its electricity transmission (NGET) division, covering the five-year period from April 2026 to March 2031.
The RIIO-T3 business plan, submitted to regulator Ofgem, follows extensive consultations with national, regional, and local stakeholders.
The British electricity and gas utility company’s new business plan aligns with National Energy System Operator’s (NESO) Future Energy Scenario 2024 Holistic Transition programme. It will also support the UK government in achieving its clean energy targets.
The proposed investment includes more £11bn billion in baseline funding to maintain and upgrade existing networks, including initial work on three Accelerated Strategic Transmission Investment (ASTI) projects already approved.
Additionally, approximately £24bn is allocated for pipeline investments, with £15bn directed at expanding network capacity, primarily through 14 confirmed ASTI projects. The remaining funds are earmarked for potential projects aligned with evolving government priorities.
National Grid’s plan includes upgrading about 3,500km of overhead lines to nearly double the power transfer capacity and deploying innovative technologies such as power control devices and dynamic line ratings to optimise existing infrastructure.
The framework will also connect 35GW of new generation and storage capacity.
The company also plans to support 19GVA of large demand connections, including data centres and gigafactories, while creating 26GW of additional future connection options.
These efforts are expected to save consumers approximately £12bn in system constraint costs during the plan period.
Sustainability is a key focus, with a commitment to reduce emissions by 50% compared to a 2018/19 baseline and achieve biodiversity net gains equivalent to 8,000 acres of land, said National Grid.
The investment is projected to support the creation of 55,000 new jobs across the UK by the end of this decade.
To deliver this extensive plan, National Grid has proposed a financial framework that includes a real 6.3% allowed cost of equity and mechanisms to ensure adequate cash generation to support investment levels.
The RIIO-T3 plan aligns with the company’s anticipated £60bn investment across the group for the five years leading up to March 2029.
National Grid CEO John Pettigrew 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.”
National Grid will engage further with stakeholders ahead of Ofgem’s draft determinations in mid-2025 and final determinations later that year.
