National Grid Unveils £35 Billion Investment Plan for Growth

In a recent report, National Grid plc announced its ambitious RIIO-T3 business plan, which includes investing up to £35 billion from April 2026 to March 2031. This plan focuses on maintaining and enhancing network capacity while creating potential jobs and inviting stakeholder engagement.

Date: 18-12-2024

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National Grid plc has announced a substantial investment plan that could significantly impact its stock price. The RIIO-T3 business plan involves an investment of up to £35 billion over five years, covering various sectors of the UK electricity transmission landscape.

The breakdown of the investment reveals a commitment of over £11 billion towards maintaining and upgrading existing networks and the initiation of the first three approved Accelerated Strategic Transmission Investment (ASTI) projects. The remaining £24 billion is aimed at expanding network capacity, which includes 15 billion pounds allocated to 14 further confirmed ASTI projects alongside other potential projects influenced by shifting UK government priorities.

This proactive approach positions National Grid as a key player in supporting broader UK investment, predicting the creation of 55,000 additional jobs by the year 2030. Job creation can have a multiplier effect on the economy, potentially increasing the demand for energy services, resulting in more stable revenue generation for the company.

Engagement with stakeholders before the draft determinations from Ofgem in summer 2025 and final determinations later that year indicates that National Grid is looking to maintain transparency and address stakeholder concerns effectively.

Stocks: NGG