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Wednesday
02 Jul 2025

UK Grid Set for £8.9bn Expansion

02 Jul 2025  by renews   
Ofgem announced a provisional approval for a major investment programme to expand the UK’s electricity grid—the largest such initiative since the 1960s. An initial £8.9 billion will be allocated to high-voltage network development, with an additional £1.3 billion available, bringing the immediate total to £10.2 billion.

This marks the first stage of a wider £80 billion plan aimed at significantly increasing transmission capacity, enhancing energy security, and reducing dependence on international gas markets. Over the next five years, the programme will support 80 transmission infrastructure projects, including power lines, substations, and supporting technologies, throughout the UK.

The planned expansion is expected to quadruple the current annual grid investment. More than 4,400 kilometres of overhead lines will be upgraded, and 3,500 kilometres of new circuits will be added, including offshore components. These developments will help integrate power generated from renewable sources and support wider adoption of flexible storage technologies.

By 2030, Ofgem estimates that the enhanced grid will be capable of connecting up to 126 GW of clean energy—enough to supply millions of homes. The initiative is also expected to stimulate economic growth through infrastructure development and job creation.

Ofgem Chief Executive Jonathan Brearley said: “This record investment will deliver a homegrown energy system that is better for Britain and better for customers. These 80 projects are a long-term insurance policy against threats to Britain’s energy security and the instability of prices.”

He added: “By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future we can boost growth and give ourselves more control over prices too. Doing nothing is not an option and will cost consumers more—this is critical national infrastructure. The sooner we build the network we need, and invest to strengthen our resilience, the lower the cost for bill payers will be in the future.”

The draft determinations are now open for consultation. Final decisions on the investment programme are expected to be made by the end of 2025.

This investment aims to modernise the UK’s electricity grid in response to changing energy demands, increased domestic generation, and the transition to renewable sources. By expanding capacity and improving infrastructure, the programme seeks to support energy reliability and price stability for the long term.

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