The cost of upgrading Great Britain’s electricity network could climb to almost £90 billion during the 2030s, according to updated forecasts from the National Energy System Operator (Neso), reflecting the scale of investment required to support the UK’s clean energy ambitions.
The latest projections estimate that around £89 billion may be needed to expand and modernise the country’s high-voltage electricity transmission network. The figure marks a 50% increase from earlier estimates made before the Labour government took office, when the cost was forecast at £58 billion.
Neso said the additional investment would be essential to deliver the government’s clean power targets while meeting rapidly growing electricity demand, including increased consumption from energy-intensive sectors such as artificial intelligence and data centres.
Although the projected costs have risen significantly, the government-owned system operator said the overall scale of investment remains broadly aligned with its previous recommendations. The updated estimate reflects changes to the UK Government’s Clean Power 2030 Action Plan, a faster rollout of renewable energy projects and higher construction costs driven by inflation.
Energy Minister Michael Shanks said the government was taking a long-term strategic approach to building a modern electricity system capable of strengthening the UK’s energy security, lowering bills and supporting economic growth.
He said the latest plans provide a roadmap for expanding the national grid to meet future demand from homes, businesses, industry and emerging technologies while making greater use of clean, domestically generated energy.
Neso has recommended 43 major electricity network projects for delivery during the 2030s, including 16 new proposals that were not included in its original 2024 forecast.
Among the new projects are plans to connect offshore wind farms in the Celtic Sea through multiple landing points across South Wales and South West England. Other recommendations include revised versions of previously proposed infrastructure schemes designed to improve the efficiency and resilience of the electricity network.
The Labour government came to power with a commitment to transform Britain into a clean energy superpower by 2030, accelerating the previous government’s target of achieving a near-zero carbon electricity system by 2035.
To meet its goals, ministers have pledged to double onshore wind capacity, triple solar power generation and quadruple offshore wind capacity before the end of the decade.
The ambitious targets have accelerated investment across the energy sector, encouraging faster development of renewable energy projects and upgrades to the national grid.
As part of these efforts, Neso has reformed the electricity grid connection process to reduce delays that previously left many energy projects waiting years for access to the network. Transmission operators have also progressed planning work, allowing several infrastructure schemes to move closer to construction.
Alice Delahunty, President of National Grid Electricity Transmission, said the company was already moving rapidly to expand network capacity while maintaining a focus on delivering value for consumers and controlling costs.
She added that as electricity demand continues to rise, long-term planning and clear investment signals will be vital to ensure the UK develops the grid infrastructure needed to support economic growth, renewable energy expansion and future electricity demand.