Cost to rewire Great Britain’s electricity network could reach £90bn in 2030s | Energy industry

The cost of rewiring Britain’s electricity networks by the 2030s is 50% higher than before the Labor government came to power and could reach almost £90bn over 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 estimated by the power system operator to cost £58bn.

Updated forecasts from the National Energy System Operator (Neso) suggest £89bn of network investment could be needed to meet the government’s clean energy targets while also meeting the country’s growing electricity demand, including data centres.

Government-owned Neso said the scale of investment was “generally consistent” with its initial recommendations but was evolving to align with the UK government’s 2030 clean energy action plan, an accelerated rollout of new low-carbon energy projects and rising inflation.

Energy Secretary Michael Shanks said: “To build an energy system fit for the future, we are taking a strategic approach that protects our energy independence and keeps bills low while stimulating economic growth in every corner of the UK.

“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, self-generated energy.”

The system operator has proposed 43 network projects for delivery in the 2030s, including 16 network options that were not included in Neso’s original 2024 forecast. These include new schemes such as a project to connect wind farms in the Celtic Sea at three points across South Wales and South West England, as well as variations or updated versions of previously proposed options.

The Labor government won a historic election victory two years ago on a promise to make the UK a clean energy superpower by 2030, bringing forward by five years the previous government’s plan to create a nearly zero-carbon energy system by 2035. To achieve this goal, it has set targets to double onshore wind energy, triple solar energy, and quadruple the country’s offshore wind capacity by the end of the decade.

The commitment catalyzes action in the energy sector, accelerating work to build and connect clean energy projects ahead of 2030 and over the next decade.

This includes Neso overhauling its pipeline of energy projects hoping to connect to the grid; This means projects can avoid the long delays in the previous system. Meanwhile, transmission companies’ efforts to develop onshore network plans have also “increased the maturity” of these projects, meaning they could be delivered sooner than expected.

Alice Delahunty, head of National Grid’s transmission business, said the company was “already moving quickly” to improve its network, increase capacity and drive economic growth, while also maintaining a “clear focus on consumer value and reducing costs.”

“As electricity demand grows, we need clear and consistent signals about future network needs, including connectivity reform. Plans like this from Neso are an important step in the right direction, demonstrating the upgrades and scale of further investment needed as well as greater use of flexibility,” he said.