National Grid’s £60 B investment plan
The funds will “unlock economic growth and enable the increasingly digital, electrified and decarbonised economies of the future” and support 55000 more jobs.
Image for illustration purposes.
UK, London: National Grid has announced a plan to invest £60 billion ($76.2 billion) in networks in the next five years, with over £30 billion of this amount in the UK. The funds will “unlock economic growth and enable the increasingly digital, electrified and decarbonised economies of the future” and support 55000 more jobs by the end of the decade.
To finance the investments, National Grid is planning a £7 billion fully underwritten rights issue. Together with the five-year financial framework, it is streamlining the business including selling National Grid Renewables, its US onshore renewables business.
2023 financial results have also been published. Underlying operating profit of £4.8 billion was up 4% at actual exchange rates (6% at constant currency), mostly driven by growth in revenues in UK Electricity Transmission through the RIIO-T2 price control, non-recurrence of Western Link liquidated damages, and higher rates in NY and New England.
Statutory operating profit for continuing operations was down 8% to £4.5 billion, mostly driven by non-cash exceptional charges in 2023/24 versus gains on disposals (NECO and Millennium investment) in the prior year, partly offset by favourable timing and commodity swings and higher underlying performance versus the prior year.
National Grid chief executive John Pettigrew said: “We will be investing £60 billion in the five years to the end of March 2029 – that’s nearly double the level of investment of the past five years. We expect this significant step-up in capital investment will deliver annual group asset growth of around 10%, and 6%–8% underlying EPS CAGR from a 2024/25 baseline, supported by a comprehensive financing plan that includes a £7 billion equity raise.”
Source: renews.biz