National Grid, the UK’s transmission and distribution operator, has announced that it will invest £60 billion in network and grid upgrades over the next five years.
In a video shared on the group’s website, CEO John Pettigrew called the investment plan “unprecedented in its scale and ambition”. Around £30 billion will be invested in the UK, while around £28 billion will be spent to improve grid networks in the northeast US. National Grid operates transmission facilities in upstate New York, Massachusetts, New Hampshire, and Vermont.
As part of the plans, over 50,000km of conductor will be installed or replaced in the UK, enough to wrap around the earth’s circumference with 10,000km to spare.
National Grid has announced a detailed financial plan to finance this investment, including a fully underwritten £7 billion rights issue. The operator will issue 1,085 million new shares, with existing shareholders given first rights to buy them. National Grid’s banking partners will take any shares not taken up by June 10th.
Grid improvements are sorely needed
The state of the UK’s power infrastructure has been a cause for concern for many in the energy industry, especially as the transition to renewables demands a more flexible grid system. The Public Accounts Committee (PAC) recently issued a stern warning claiming that the UK government and wider economy “lack the necessary skills to deliver ambitious plans for major infrastructure over the next five years”. Meanwhile, the queue of projects waiting to be connected to the grid is growing fast, leading National Grid Electricity Systems Operator (ESO) to make major reforms to the connection application process.
Meanwhile, National Grid Distribution System Operator (DSO) revealed a two-year plan to expand and create a more flexible grid across the UK.
On May 1st, National Grid launched a new, ambitious plan to address supply chain and skills shortages in the UK energy industry. The Great Grid Partnership is an ‘enterprise model’ that will initially focus on delivering the new network design and construction work needed by the end of the decade.
