More than $76 billion has been committed to transatlantic energy projects over the next five years

National Grid, the energy transmission and distribution company, has revealed its investment plan for 2024–2029, committing £60 billion (nearly $76.5 billion) to energy projects that will intensify decarbonization efforts and accelerate the energy transition on both sides of the Atlantic Ocean, including in the United States (US) and Western Europe. The largest slice of this multi-billion investment pie is expected to be spent in the US and UK.

Revealing its refreshed strategy to be the leading pureplay grid company, National Grid unveiled an almost double increase in investment compared to the previous five years, with around £60 billion planned for the coming five years to March 2029. The increase is expected to investment will result in a CAGR of 10% in asset growth, and the group’s assets will reach £100 billion (over $127.4 billion) by 2029.

Additionally, around £51 billion (approximately $64.99 billion) of the £60 billion in capital investment covering the period to March 2029 is considered to be consistent with the EU’s taxonomy for decarbonising energy networks. The international electricity and gas services provider emphasizes that almost 80% of capital investments will go to its electricity networks, and by 2029 the share of electricity and gas will be 80/20%.

John PettigrewChief Executive of National Grid commented: “Today is a defining moment for National Grid as we announce a significant increase in investment, strengthening our position as a leader in the energy transition on both sides of the Atlantic. Governments and regulators are increasingly urgent in their efforts to attract the levels of investment required to achieve net zero ambitions, giving us greater visibility and confidence in our medium-term investment plan.

“That is why we are announcing a new five-year financial framework today. We will have invested £60 billion over the five years to the end of March 2029 – almost double the level of investment over the last five years. We expect this significant increase in capital investment to deliver annual group asset growth of approximately 10% and underlying EPS CAGR of 6-8% on the 2024/25 baseline, supported by a comprehensive financial plan including a £7 billion capital raise.”

According to National Grid, the reasons behind this investment program include, among others: “sustainable, comprehensive financing plan”, including a fully underwritten rights issue worth £7 billion (close to $8.92 billion). The company dealing in the transmission and distribution of electricity and gas also announced its intention to sell LNG grainits LNG operations in the UK and National network of renewable energy sourcesits U.S. land-based renewable energy operations.

Just a few months earlier, Venture Global LNG and UK National Grid Grain LNG had signed a binding long-term Terminal Use Agreement (TUA) in an effort to enable the regasification and sale of LNG from all Venture Global terminals in Louisiana, including CP2 LNG, subject to the necessary federal permits .

“This is an unprecedented time for our industry, which creates significant opportunities for National Grid today, over the next five years and in the decades to come. Our new five-year investment plan will deliver long-term value and return to our shareholders, enable the creation of over 60,000 additional jobs and accelerate the decarbonization of the energy system for the digital, electrified economies of the future.” Pettigrew added.

Steps are being taken to usher in a green energy future

National Grid has launched a High Voltage Direct Current (HVDC) supply chain framework which, together with SSEN Transmission and ScottishPower Energy Networks, plans to secure the supply chain required to meet marine cabling requirements on UK networks beyond 2030. The company recently commissioned its sixth interconnector – 1400 MW Link to Vikings to Denmark, considered the longest undersea interconnector in the world.

Pettigre emphasized: “In the UK, our 17 major onshore and offshore electricity transmission projects are progressing at pace, and in the US, the $4 billion Upstate Modernization investment is underway, representing the largest investment in New York’s electricity transmission network in over a century.

“Our sixth interconnector, the Viking Link to Denmark, went online in December and is the world’s longest onshore and subsea HVDC cable, demonstrating the world-class capabilities of the national network. In addition to our new five-year financial framework, today we continue to evolve our strategy to focus on networks and will therefore streamline our business.

National Grid’s $4 billion “Upstate Upgrade” is seen as a collection of more than 70 transmission improvement projects through 2030 that will aim to create a modernized, stronger and cleaner power grid in upstate New York. A number of agreements have been concluded to secure the project’s supply chain, including circuit breakers and power transformers.

Additionally, approval was obtained for Propel NY Energy’s Long Island transmission project, a partnership between New York Transco and the New York Power Authority that will bring sea ​​wind in condition.

Furthermore, National Grid highlights that it has achieved a 5.9% reduction in Scope 1 and 2 emissions compared to 2022/23, which is an 11.8% reduction compared to the 2018/19 baseline. while total Scope 3 greenhouse gas (GHG) emissions were reduced by 1.7% year-on-year. However, Scope 3 greenhouse gas emissions increased by 0.8% relative to the company’s approved SBTi target, which does not include electricity sales.

The increase is believed to be driven by related emissions from increased spending on procurement of new energy infrastructure. National Grid also connected 3,030MW of renewable energy across its transmission and distribution networks in the UK and US, an increase of 2,344MW on the previous year.

National Grid is currently involved in two multi-billion pound HVDC cable connections in the UK, known as Eastern Green Link 1 (EGL1) AND Eastern green connection 2 (EGL2) projects.

These energy superhighways are expected to enable the UK to increase the security of its energy supply, while also contributing to achieving national net zero emissions targets, supporting the UK’s 50GW offshore wind target by 2030.