National Grid has announced its largest investment programme to date, pledging £70bn over the next five years to overhaul electricity networks across Britain and the north-eastern United States, in a move designed to accelerate the transition towards low-carbon power systems.
The FTSE 100 utility, which has been reshaping itself into a networks-focused business, said the spending plan builds on £11.6bn of capital investment in the previous year and reflects sustained demand for major grid upgrades as renewable energy capacity expands rapidly.
In the UK, £31bn will be directed towards electricity transmission infrastructure. The investment will focus on strengthening the network’s ability to handle rising volumes of offshore wind, solar and nuclear generation expected to come online over the next decade. The company said the programme forms the backbone of what it describes as a “decarbonised electricity network” by the 2030s, supported by Ofgem’s RIIO-T3 regulatory framework.
In the United States, £17bn is earmarked for New York and £12bn for New England, with the majority of the funding allocated to National Grid-owned assets. The group expects the programme to lift returns on its asset base by around 10% by the 2030/31 financial year.
Chief executive Zoe Yujnovich said the scale of the initiative marks a defining phase for the company. She described the plan as the “largest investment programme in our history”, aimed at modernising infrastructure, improving energy security and enabling a more flexible electricity system across both markets. She also highlighted the creation of thousands of jobs linked to the construction and engineering work required.
The announcement came alongside annual results showing mixed financial performance. Revenue fell 4% to £17.6bn, reflecting storm-related costs and disposals of non-core assets. Despite this, pre-tax profit rose to £4.2bn from £3.6bn, while earnings per share increased by 8% to 78p.
Shareholders received a higher dividend of 48.9p for the year, up 3.8% and broadly aligned with inflation. Investors responded positively, with shares rising 1.5% in early trading, extending gains already made this year.
Looking ahead, National Grid forecasts stronger regulated revenues, including an additional £850m in UK transmission income driven by the new regulatory cycle. US operations are also expected to grow, supported by rate adjustments and continued infrastructure investment, despite rising capital costs.
For industrial users and small and medium-sized enterprises, the scale of the investment signals a gradual shift towards a more resilient electricity system. Manufacturing, logistics and data-driven sectors in particular stand to benefit from improved capacity and fewer grid constraints over time.
Yujnovich said the programme is designed to ensure long-term reliability and affordability as energy demand rises and the system becomes more electrified. For investors, the strategy reinforces National Grid’s position as a regulated, income-generating utility. For the wider economy, it marks a decisive step in rebuilding the infrastructure underpinning Britain’s energy transition.
