Investment in Decarbonisation

We have a crucial role to play in enabling and accelerating the transition to clean energy. Network investment is essential to enable the connection of new low carbon generation and accommodate anticipated rises in electricity demand over the coming decades.  
 

FY25 Green Capital Investment

We understand the role we need to play in enabling and accelerating the move to a clean energy future. In the UK, we expect electricity demand to increase almost 50% by 2035 and more than double by 2050. In the states where we operate in the US, we expect an increase of around 25% by 2035 and approximately 50% by 2050. Network investment is vital for connecting the new low carbon power generation needed to meet this increase in demand. We expect to invest approximately £51 billion in green infrastructure and projects in the five years leading up to March 2029.

We delivered another year of record capital investment and reached a higher proportion of green capital expenditure. In 2024/25, around 81% (£7.7 billion) of our Group capex aligned with EU Taxonomy principles for sustainable investment, compared with 78% (£6.0 billion) in the previous year. See our latest EU Taxonomy Report here.

Under our Green Financing Framework, National Grid and its subsidiaries can issue Green Financing Instruments to fund a cleaner energy system. See our latest Green Financing Report for details on the issuance of green bonds totaling €1.5 billion in 2024/25 along with the allocation of proceeds and their environmental impact.

We continue to make good progress on our early Accelerated Strategic Transmission Investment (ASTI) projects in the UK. In our UK Electricity Transmission business, all six of our wave 1 ASTI projects are now under construction, including our Eastern Green Link 1 and 2 offshore projects. In the US, progress on the Upstate Upgrade in New York continues, delivering a modern, stronger, and cleaner energy network and generating new jobs.