National Grid has unveiled what amounts to the most ambitious capital programme in its history, pledging a further £70bn over the next five years to rewire the energy systems of Britain and the north-eastern United States.
The FTSE 100 utility, which has spent the past two years reshaping itself into a pure-play networks business, said the fresh commitment would accelerate its march towards a net-zero electricity system on both sides of the Atlantic. The announcement, made alongside its full-year results, builds on a record £11.6bn of capital expenditure in the prior year and signals that the group sees no let-up in the structural demand for grid investment.
Of the headline figure, some £31bn will be funnelled into UK electricity transmission, expanding capacity to absorb the surge of offshore wind, solar and nuclear coming on stream this decade. The company described the spend as the foundation of a “decarbonised electricity network” by the 2030s, and the bill will, in part, be underwritten by Ofgem’s new RIIO-T3 framework, which has formally cleared the way for the heavier outlay.
Across the Atlantic, £17bn has been earmarked for New York and a further £12bn for New England, with around 60 per cent of the US allocation flowing directly into National Grid’s own networks. The group expects a 10 per cent uplift in returns from its asset base by the 2030/31 financial year on the back of the programme.
Zoe Yujnovich, who took the helm as chief executive earlier in the year, said the company was “embarking on the largest investment programme in our history… to modernise and expand energy networks across the UK and the US Northeast, networks that underpin economic growth, strengthen energy security and enable the transition to a cleaner, more flexible energy system.” She added that the group was “building the skilled workforce needed to deliver this investment at pace, creating thousands of jobs across our markets” — a message likely to play well in Westminster and Whitehall, where ministers have been pressing infrastructure operators to demonstrate the employment dividend of the green transition.
The growth ambitions came against a softer revenue backdrop. Total turnover slipped four per cent to £17.6bn from £18.3bn the previous year, a decline the company attributed to storm-related costs and the divestment of its renewables arm and US grain liquid natural gas business. Pre-tax profit, however, jumped to £4.2bn from £3.6bn, while earnings per share rose eight per cent to 78p.
Shareholders were rewarded with a final dividend of 32.1p, taking the full-year payout to 48.9p, a 3.8 per cent increase pegged to UK inflation. The market responded warmly, with shares climbing 1.5 per cent in early trading to 1,297p, leaving the stock up 11.9 per cent since January and comfortably outpacing the wider FTSE 100.
Looking ahead, National Grid expects UK electricity transmission revenue to rise by roughly £850m in the year ahead, with RIIO-T3 doing much of the heavy lifting. In New England, top-line growth of around $450m is forecast, driven by rate resets, though partially offset by the costs of the expanded build-out. New York is expected to follow a similar trajectory.
For SMEs reliant on a stable, predictable power supply, from manufacturers wrestling with energy-intensive processes to data-hungry tech firms, the scale of the commitment is significant. A more capacious, modern transmission network underpins the kind of long-term industrial planning that has been sorely lacking since the energy shock of 2022, and it puts hard numbers behind the government’s grid-connection reforms.
Yujnovich struck an appropriately customer-focused tone in her closing remarks. “Through… transforming our capabilities we will be able to meet the rapidly growing demand and enable a more efficient energy system, one that supports long-term affordability and reliability for customers,” she said.
For investors, the calculation is straightforward: a regulated, inflation-linked income stream married to a multi-decade capex story. For the wider economy, the prize is a grid finally fit for the century it has to serve.
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National Grid commits record £70bn to power the next decade of energy networks