National Grid seeks Ofgem approval for £4.5 billion transmission upgrade package

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  • National Grid Electricity Transmission submitted 25 applications under Ofgem’s ‘re‑openers’ process, seeking around £4.5 billion in additional funding for upgrades across England and Wales.
  • The proposals cover reinforcements and new connections to support low‑carbon generation, data centres and major industrial users, while maintaining resilience as electricity demand grows.
  • The requests build on the RIIO‑T3 price control settlement and sit within National Grid’s wider £70 billion plan to invest in UK and US networks over the next five years.

Britain’s electricity transmission system is facing a race against time to keep up with the surge in renewable generation, electrified industry and power‑hungry data centres.

National Grid Electricity Transmission (NGET) this week submitted 25 applications to energy regulator Ofgem seeking approval to spend around £4.5 billion on new lines and substations across England and Wales.

The applications were filed under Ofgem’s ‘re‑openers’ mechanism, which allows regulated networks to request extra funding when needs change during a price‑control period.

NGET said the proposed reinforcements and upgrades would support the connection of new low‑carbon generation including offshore wind, solar and battery storage as well as major industrial users and data centres.

Britain’s clean‑energy ambitions require significant grid expansion to deliver power from remote wind farms to demand centres. Grid connection delays have become one of the biggest obstacles to projects, and NGET warned that without timely investment, the country could struggle to meet decarbonisation goals.

The £4.5 billion request is part of a wider £70 billion capital programme across the UK and US networks over the next five years. The RIIO‑T3 price control set a baseline for transmission investment, but NGET says evolving needs such as electrification of transport and the rise of AI data centres require additional spending.

The RIIO-T3 price control is the regulatory framework governing the revenues that electricity and gas transmission network operators can earn, and the services they must deliver, across the UK. Running for five years, it covers the period from April 1, 2026 to March 31, 2031.

Rob Salter‑Church, regulation director at NGET, said the proposals will expand capacity, maintain resilience and ensure major investments are delivered efficiently for consumers.

Ofgem will now consult industry and consumers before ruling on the applications. If approved, the projects could shorten grid‑connection queues and enable the UK’s burgeoning renewable‑energy pipeline.

The issue underscores the interplay between regulatory approval and infrastructure delivery in the UK. Developers awaiting connections should follow the consultation closely and engage with Ofgem to ensure that critical projects receive timely support.

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