National Grid has submitted a package of proposals to Ofgem that could unlock around £4.5 billion of investment in Britain’s electricity transmission network.
The 25 submissions, made under Ofgem’s ‘re-openers’ process, cover reinforcements and upgrades across England and Wales. If approved, the projects would support new low-carbon generation, major industrial users and data centres, as well as wider work to maintain network resilience as electricity demand continues to grow.
The proposals build on the RIIO-T3 price control settlement agreed between National Grid and Ofgem, which set the baseline level of investment in the transmission network. They also form part of National Grid’s wider plan to invest £70 billion across its UK and US networks over the next five years.
While the UK has ambitious plans to decarbonise the power system, much of that ambition rests on whether the grid can actually keep pace with new demand. Grid connection delays have already become one of the biggest barriers to the delivery of clean energy projects, while the growth of data centres and electrified industry is adding further pressure to the system.
That’s where the re-openers process comes in. It gives regulated networks a route to seek approval for additional projects and funding where requirements have evolved beyond the assumptions made during the original price control settlement.
Ofgem will now consult on National Grid’s applications before deciding whether to approve the funding.
Rob Salter-Church, Regulation Director at National Grid Electricity Transmission, commented, “Britain’s energy system is changing rapidly, and the transmission network must keep pace. These submissions set out the investment needed to expand capacity, maintain resilience and support future growth, while enabling the delivery of secure, affordable and cleaner energy.
“They are designed to ensure we can continue to support major new industries and meet growing demand on the system, and to connect new low-carbon generation. This is an important step in the regulatory process, and we will continue to work closely with Ofgem to help ensure the right investments are delivered efficiently, at the right time, for consumers and the wider economy.”
