The cost of rewiring Great Britain’s electricity networks through the 2030s is now 50% higher than before the Labour government came to power, and could reach almost £90bn in the next decade, according to the energy system operator.
Building new high-voltage transmission lines and infrastructure to connect low-carbon energy to the grid in the 2030s was initially forecast by the energy system operator to cost £58bn.
Updated forecasts from the National Energy System Operator (Neso) now recommend network investments of £89bn could be needed to deliver the government’s clean power targets while meeting the country’s rising demand for electricity, including from datacentres.
Neso, which is owned by the government, said the scale of investment was “broadly consistent” with its initial recommendations but had evolved to align with the UK government’s 2030 clean power action plan, an accelerated rollout of new low-carbon energy projects and rising inflation.
Michael Shanks, the energy minister, said: “We are taking a strategic approach to building an energy system fit for the future – that safeguards our energy independence and keeps bills down while driving economic growth in every corner of Britain.
“This provides a blueprint for where our electricity grid is needed – to power AI and industry, and ensure homes and businesses benefit from Britain’s clean, homegrown energy.”
The system operator has recommended 43 network projects for delivery in the 2030s, including 16 network options that were not in Neso’s original 2024 forecast. These include new plans such as a project to connect windfarms in the Celtic Sea at three points across south Wales and south-west England, as well as variations or updated versions of previously recommended options.
The Labour government won a historic election victory two years ago on the promise to make the UK a clean energy superpower by 2030, bringing forward by five years the previous government’s plan to create a virtually zero carbon power system by 2035. It set out targets to double onshore wind, triple solar power and quadruple the country’s offshore wind capacity by the end of the decade to achieve this goal.
The pledge has galvanised action across the energy industry, speeding up work to build and connect clean energy projects ahead of 2030 and into the next decade.
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This has included Neso’s overhaul of the queue of energy projects hoping to connect to the grid, meaning projects can avoid lengthy delays under the previous system. Meanwhile, work by transmission companies to develop onshore network plans has also “improved the maturity” of these projects, meaning they can be delivered sooner than expected.
Alice Delahunty, the head of National Grid’s transmission business, said the company was “already moving quickly” to upgrade its network, increase capacity and support economic growth, “while keeping a clear focus on consumer value and reducing costs”.
“As electricity demand grows, we need clear and consistent signals on future network needs, including through connections reform. Plans like this from Neso are an important step in the right direction, showing the upgrades and scale of further investment needed, alongside greater use of flexibility,” she said.
