National Grid expands investment plan by £10bn

Utility giant National Grid has extended and upgraded its investment plan by an additional £10 billion ($13.4 billion) to at least £70 billion ($93.9 billion).

Investment drivers for the new 5-year plan to FY31 range from decarbonisation and energy security to accelerating demand growth from data centres and the rise of AI, alongside the electrification of industrial demand. 

The company’s Chief Executive, Zoë Yujnovich, cited on social media platform LinkedIn the demands and criticality of modernised networks:

“Electricity networks are now recognised as the backbone of economic growth. They are the platform on which industries grow and our customers and communities can prosper. For me, it is not just about growth but also efficiency. 

“I’m focused on efficient execution at scale, operating effectively within our regulatory frameworks, and ensuring this investment translates into resilience and long-term value for investors, customers, and the communities we serve.”

The updated investment plan represents a 70% increase relative to the prior five years, reflecting a doubling of investment into UK electricity networks, and an almost 50% increase in investment into the company’s US gas and electricity networks. 

The expected split of at least £70 billion of capital investment across the Group is:

• UK Electricity Transmission: £31 billion ($41.5 billion)
• UK Electricity Distribution: £9 billion ($12.1 billion)
• New York Regulated: £17 billion ($22.8 billion)
• New England Regulated: £12 billion ($16.1 billion)
• National Grid Ventures: £1 billion ($1.3 billion)

RIIO-T3 price control accepted

With the release of its results, National Grid also confirmed acceptance of the RIIO-T3 price control arrangements proposed by Ofgem in its Final Determination, published in December 2025.

Ofgem’s determination for spending between 2026/27 and 2030/31 was announced in July 2025 and set the stage for an £80 billion ($107.5 billion at the time) investment programme to boost electricity network capacity.

Although welcoming the commitment for the electricity transmission sector, National Grid said it did not sufficiently recognise the practical realities of expanding the power system, nor the required two-and-a-half times increase in investment in the transmission network.

With the announcement of their updated investment framework, however, the company says the Final Determination delivers a price control that enables networks to invest at the pace and scale needed to meet the ramp-up in power demand.

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Said Yujnovich: "With regulatory clarity on both sides of the Atlantic, we are expanding our record level of investment..."

It also provides plans to nearly double the amount of power that can flow across the country, avoiding constraint costs and ensuring a resilient network. 

Electric utility SSE too has accepted the Final Determination, stating in a release that it recognises it as an investable and deliverable settlement overall.

SSE says the Framework will help deliver investment that reduces reliance on imported energy from overseas, remove grid bottlenecks and strengthen energy security. 

This comes on the back of last week’s announcement by French utility Engie that they will acquire UK Power Networks, citing the country’s stable regulatory framework and clear decarbonisation targets.