Released January 13, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The operator of England's electricity grid, National Grid plc (NYSE:NGG) (London, England), has announced a £35 billion (US$44.4 billion) spending plan over the next five years in an effort to overcome long delays in connecting major renewable energy projects to the grid.
The company has committed to investing £11 billion ($13.7 billion) in maintaining and upgrading its existing networks. This will include upgrading roughly 3,500 kilometers (km) of existing overhead lines to help double the amount of power it can deliver. It will also go toward construction works for the first three of its Accelerated Strategic Transmission Investment (ASTI) projects where project assessments have been approved. ASTI projects have been fast-tracked by the U.K. government and form the backbone of National Grid's aim to build a new electricity network infrastructure that can cope with the massive shift to renewable energy. The current government has committed to decarbonising the electricity mix by 2030, a more ambitious target than the previous one of 2035, which will require the connection of up to 50 gigawatts (GW) of offshore wind by 2030.
The bulk of the spending--£24 billion (US$30 billion)--will be pipeline investment, including about £15 billion (US$18.7 billion) to increase network capacity, most of which relates to the other 14 further confirmed ASTI projects. National Grid stated: "Pipeline investment also includes additional potential projects that may be triggered by the U.K. government's evolving priorities. [We will] connect 35-GW of new generation and storage, and 19-GVA (one billion volt-amperes) of large demand customers such as data centres and gigafactories, as well as creating a further 26-GW of future connection options to help consumers avoid £12 billion (US$15 billion) of system constraint costs across the period."
Commenting on the final business plan, John Pettigrew, chief executive officer of National Grid plc, 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 U.K.. It is an ambitious plan, set to future proof the network with strategic capacity and flexibility for the longer term. We've laid the foundations for its delivery through the steps we've already taken to progress ASTI projects, secure the supply chain, and fund the wider Group."
In related news, the grid operators of the U.K. regions of Scotland and Wales have also unveiled major grid spending plans. Scottish and Southern Electricity Networks (SSEN) will spend £22 billion (US$27.4 billion) over five years on "mission-critical" grid infrastructure projects in the north of Scotland. It will cover both baseline expenditures and committed strategic investments approved by the U.K.'s energy regulator, Ofgem. It will also fund the development of new pylons, overhead lines, cabling and substations. A key goal will be the ability to accommodate increased capacity from upcoming renewable projects, including 27.6 GW of offshore windfarms from ScotWind. Earlier this year, Industrial Info reported on the final approval of a £3.4 billion (US$4.5 billion) electricity "superhighway" project by SSEN and National Grid that would be capable of delivering around 2 GW of renewable energy from the many offshore windfarms located off the Scottish coast. The twin Eastern Green Link 2 (EGL2) subsea power cables will run 507 km from Peterhead in Aberdeenshire, Scotland, to Drax in North Yorkshire, England. For additional information, see September 3, 2024, article - U.K. Power 'Superhighway' Gets Green Light.
SP Energy Networks, which manages the networks in Wales and central and southern Scotland, is aiming to invest £10.6 billion (US$13.2 billion) over the same period to construct 12 new major transmission substations, upgrade 450 km of existing circuits, enhance 87 km of overhead lines and install 35 km of underground cables. It will help facilitate the connection of up to 19 GW of new renewable energy sources, reduce constraint costs and double its transmission workforce by 1,400 direct jobs.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company has committed to investing £11 billion ($13.7 billion) in maintaining and upgrading its existing networks. This will include upgrading roughly 3,500 kilometers (km) of existing overhead lines to help double the amount of power it can deliver. It will also go toward construction works for the first three of its Accelerated Strategic Transmission Investment (ASTI) projects where project assessments have been approved. ASTI projects have been fast-tracked by the U.K. government and form the backbone of National Grid's aim to build a new electricity network infrastructure that can cope with the massive shift to renewable energy. The current government has committed to decarbonising the electricity mix by 2030, a more ambitious target than the previous one of 2035, which will require the connection of up to 50 gigawatts (GW) of offshore wind by 2030.
The bulk of the spending--£24 billion (US$30 billion)--will be pipeline investment, including about £15 billion (US$18.7 billion) to increase network capacity, most of which relates to the other 14 further confirmed ASTI projects. National Grid stated: "Pipeline investment also includes additional potential projects that may be triggered by the U.K. government's evolving priorities. [We will] connect 35-GW of new generation and storage, and 19-GVA (one billion volt-amperes) of large demand customers such as data centres and gigafactories, as well as creating a further 26-GW of future connection options to help consumers avoid £12 billion (US$15 billion) of system constraint costs across the period."
Commenting on the final business plan, John Pettigrew, chief executive officer of National Grid plc, 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 U.K.. It is an ambitious plan, set to future proof the network with strategic capacity and flexibility for the longer term. We've laid the foundations for its delivery through the steps we've already taken to progress ASTI projects, secure the supply chain, and fund the wider Group."
In related news, the grid operators of the U.K. regions of Scotland and Wales have also unveiled major grid spending plans. Scottish and Southern Electricity Networks (SSEN) will spend £22 billion (US$27.4 billion) over five years on "mission-critical" grid infrastructure projects in the north of Scotland. It will cover both baseline expenditures and committed strategic investments approved by the U.K.'s energy regulator, Ofgem. It will also fund the development of new pylons, overhead lines, cabling and substations. A key goal will be the ability to accommodate increased capacity from upcoming renewable projects, including 27.6 GW of offshore windfarms from ScotWind. Earlier this year, Industrial Info reported on the final approval of a £3.4 billion (US$4.5 billion) electricity "superhighway" project by SSEN and National Grid that would be capable of delivering around 2 GW of renewable energy from the many offshore windfarms located off the Scottish coast. The twin Eastern Green Link 2 (EGL2) subsea power cables will run 507 km from Peterhead in Aberdeenshire, Scotland, to Drax in North Yorkshire, England. For additional information, see September 3, 2024, article - U.K. Power 'Superhighway' Gets Green Light.
SP Energy Networks, which manages the networks in Wales and central and southern Scotland, is aiming to invest £10.6 billion (US$13.2 billion) over the same period to construct 12 new major transmission substations, upgrade 450 km of existing circuits, enhance 87 km of overhead lines and install 35 km of underground cables. It will help facilitate the connection of up to 19 GW of new renewable energy sources, reduce constraint costs and double its transmission workforce by 1,400 direct jobs.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
