UK Energy Firms to Invest £77bn to Upgrade Electricity Grid

Energy companies responsible for Britain’s high-voltage electricity system have announced plans to invest £77 billion to modernize and expand the nation’s grid. The investments, covering the period from 2026 to 2031, are intended to meet the growing demand for renewable energy and help achieve the UK’s net-zero climate targets.

The proposals, submitted to the energy regulator Ofgem, include ambitious spending by National Grid, SSE, and ScottishPower to rewire Britain’s grid and support industries transitioning to clean energy.

Major Investment Plans

• National Grid aims to spend up to £35 billion, including:
  • £11 billion to maintain and upgrade existing networks.
  • £24 billion for increased capacity and additional projects to meet 2030 clean power targets.
  • Three major grid projects already approved through Ofgem’s fast-track process.
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• SSE plans to invest £31 billion, including:
  • £22.3 billion for strategic upgrades, particularly in northern Scotland, to connect offshore windfarms.
  • Up to £9.4 billion for additional potential projects.
  • The plan could support 37,000 jobs across the UK.

• ScottishPower has committed £10.6 billion, including:
  • Construction of 12 new major transmission substations.
  • Upgrading 450km of existing circuits, 87km of overhead lines, and 35km of underground cables.
  • Doubling its transmission workforce with 1,400 new jobs, supporting an additional 11,000 jobs nationwide.

ScottishPower estimates the upgrades will enable the connection of up to 19GW of green power projects, enough to supply nearly 20 million UK homes. This will help reduce payments made to renewable energy developers to turn off their projects during grid overloads, potentially saving households up to £167 annually by 2030.

The combined investments will also strengthen the grid’s resilience, support the electrification of industries, and accommodate the increasing demand for green energy solutions.

Ofgem must still approve the spending plans. The regulator will weigh the costs of grid modernization—which are funded through energy bills—against the need to protect customers from rising costs.