– National Grid plans to invest £66 billion over five years in its power networks to support economic growth, digitalization, and decarbonization.
– Half of the investment will go towards the company’s operating networks in the UK, with the majority of capital investment focused on the Electricity Networks business.
– To finance the investment, National Grid will conduct a £7 billion rights issue and expects significant growth in group assets and earnings per share.
National Grid, an energy transmission and distribution company, plans to invest £66 billion over five years into its power networks to support economic growth, digitalization, and decarbonization. Half of this investment will go towards the company’s operating networks in the UK, with the remaining funds allocated elsewhere. To finance this investment, National Grid announced a £7 billion fully underwritten rights issue.
The company aims to become a “pre-eminent pureplay networks business” with a significant increase in investment, focusing on their Electricity Networks business. In the UK, the majority of the investment will go towards electricity transmission and distribution, including infrastructure for EVs, heat pumps, and renewable energy connections. In the US, investments will focus on New York and New England, with a focus on renewable connections and digital capabilities to support the energy transition.
National Grid expects this increased capital investment to deliver annual asset growth and underlying EPS growth. They have also announced their intent to sell certain assets to support this investment plan. With governments and regulators pushing for net-zero ambitions, National Grid sees this as a defining moment for their role in the energy transition.