Almost £90bn of investment is needed in Britain’s electricity network over the next nine years, according to the body responsible for ensuring power supply meets demand.
National Energy System Operator (NESO) said updated evidence and option development had added £31bn to required expenditure since an initial estimate in 2024.
In a report published this week, the organisation recommended 43 network projects be worked up for delivery in the 2030s.
It said these included “significant reinforcements of existing infrastructure” as well as new offshore and onshore cabling.
NESO said the updated plan “provides industry with greater certainty on future direction and sequencing” while supporting delivery of a “reliable, clean and cost-effective energy system for the future”.
In March 2024 the body called for £58bn of investment in the electricity grid to meet Britain’s “growing and decarbonising demand” in 2035.
But this was revised to £89bn in the latest update.
Offshore and onshore network design improved
“Since 2024, the offshore network design has been reviewed and refined,” said NESO. “This reflects a stronger focus on deliverability, system efficiency and coordination, informed by the UK Government’s Clean Power Action Plan, the latest Future Energy Scenarios and Connections Reform.
“The updated approach recognises the need to balance ambition with practicality, ensuring that infrastructure can be delivered at pace and in line with policy timelines.
“Earlier designs, which relied on more complex configurations and extensive coordination, have been simplified to improve feasibility and reduce delivery risk. The refined design prioritises more direct and modular offshore connections that can be built more readily, while still providing flexibility for future expansion.”
It added: “Connection points have also been adjusted to better reflect evolving offshore generation patterns and the capability of the onshore network. These changes support a more pragmatic balance between optimising system outcomes and ensuring infrastructure can be delivered when it is needed.
“This evolution also reflects wider considerations around construction constraints, consenting processes and supply chain capacity.”
NESO director of strategic energy planning Julian Leslie said delivering timely network upgrades was “essential” to keep Britain’s electricity system reliable, resilient, affordable and supporting growth.
“By providing greater clarity on where future network investment is likely to be needed, we can help industry plan ahead, support investment decisions and enable economic growth across Britain,” he added.
Energy minister Michael Shanks added: “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.
Data centres put pressure on network
“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.”
Alice Delahunty, president of electricity transmission at National Grid, said: “We will continue to work closely with partners and stakeholders to review the proposals outlined, and identify the best solutions to upgrade the network and deliver the affordable, resilient infrastructure the UK economy needs.”
NESO last year said the growth of data centres could add up to 71TWh of electricity demand by 2050.
Bam this week secured an early contractor involvement deal from SSEN Transmission for civil engineering works on the northern converter station for the proposed Eastern Green Link 3 (EGL3) project. Valued at £2.5bn by industry insight outfit Glenigan, EGL3 is designed to increase electricity transmission capacity between Scotland and England.
Balfour Beatty was recently awarded a £325m job by SSEN to deliver the Netherton Hub in Aberdeenshire, which is intended to enable renewable energy generated in northern Scotland to be transmitted to demand centres across the country.
