Key facts
- The cost to rewire Great Britain's electricity networks could reach £90bn in the 2030s.
- This is a 50% increase from initial forecasts of £58bn.
- The investment is necessary to meet the UK government's clean power targets and rising electricity demand.
- Neso has recommended 43 network projects for the 2030s, including new connections for Celtic Sea windfarms.
- Energy minister Michael Shanks highlighted the plan's role in powering AI, industry, and homes with clean energy.
The cost of upgrading Great Britain's electricity networks is projected to reach nearly £90 billion in the 2030s, a significant increase from earlier estimates, according to the National Energy System Operator (Neso). This updated forecast reflects the need to deliver the UK government's ambitious clean power targets and accommodate rising electricity demand, including from data centers.
Neso's revised recommendations, which are broadly consistent with initial projections but have been updated to align with the government's 2030 clean power action plan and accelerated rollout of low-carbon projects, now suggest investments of £89 billion. The plan includes 43 network projects for the 2030s, incorporating 16 new options not present in the original 2024 forecast. These new plans include crucial infrastructure to connect windfarms in the Celtic Sea to the grid across south Wales and south-west England.
Energy minister Michael Shanks emphasized a strategic approach to building a future-proof energy system that enhances energy independence, controls bills, and drives economic growth. The Labour government's commitment to making the UK a clean energy superpower by 2030, with targets to significantly increase wind and solar capacity, has spurred action across the energy industry. Neso's overhaul of project connection queues and improvements in transmission company planning are expected to expedite the delivery of these upgrades.
Alice Delahunty, head of National Grid's transmission business, stated the company is actively upgrading its network to support economic growth while focusing on consumer value and cost reduction. She noted the importance of clear signals on future network needs and further investment, alongside greater use of flexibility, to manage growing electricity demand.