National Grid is to raise £7bn as part of a plan to double spending on the electricity network over the next five years.
The company, responsible for most of the UK’s power grid, says it aims to invest £60bn in new electricity networks before the end of the decade, with more than £30bn of that going to England, Scotland and Wales.
It said about £23bn would be spent on Britain’s electricity transmission system and about £8bn on new distribution networks to help speed up the use of electric vehicle chargers and heat pump technology.
The money will go towards building new pylons and other offshore and onshore transmission systems across the UK as part of its plan to “rewire the nation” to accelerate decarbonisation. The investment will ensure that new green energy sources such as offshore windfarms can supply their electricity to British homes and businesses.
John Pettigrew, National Grid’s chief executive, called it a defining moment for the company, which also operates electricity grids in the US, and claimed the spending will support an extra 60,000 jobs in Britain.
“Governments and regulators are moving with increased urgency to attract the levels of investment required to meet their net zero ambitions, giving us improved visibility and confidence over our medium-term investment plan.
“This is an unprecedented time for our industry that is creating significant opportunities for National Grid today, over the next five years and for decades to come,” he said.
National Grid plans to raise the money via a rights issue, where it invites existing shareholders to purchase new shares in it.
The move comes ahead of the election where opposition to onshore power lines could be a determining factor in the fate of several seats. A group of Tory MPs with seats in Essex and East Anglia say they are opposed to a 112-mile “expressway” of pylons planned by the National Grid, running from Norwich to Tilbury.
A government-commissioned report published last year said local residents should receive compensation if high-voltage pylons are built near their homes. The report, by the Electricity Networks Commissioner Nick Winser, concluded the UK’s energy grid is not ready for a switch to clean power by 2035 because of planning constraints and recommended streamlining the system to build more electricity transmission projects.
The report warned that delays are slowing the switch to clean energy as developers of wind and solar farms are forced to wait to be connected to the grid. The report said delays needed to be cut from the current 12-14 years to half that time. It called for a fast-track planning system to speed up the overhaul of the national grid but promised “a transparent, respectful and efficient approach when engaging with people and communities about the impact” on the UK landscape.
National Grid also said it is selling off parts of its businesses to help fund its investment plans. The transmission giant said it will sell its UK liquid natural gas asset, Grain LNG, in Kent and its US onshore renewable business, National Grid Renewables.
It also revealed that its profits fell 15 per cent to £3bn in the year to end March 2024.
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