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.  
 

FY26 Green Capital Investment

We understand the role we need to play in enabling and accelerating the move to a clean energy future. Network investment is vital for connecting new low-carbon power generation and storage that will be needed in the coming decade to accomodate the expected rises in electricity demand and the connection of renewable energy resources. In March 2026, we set out our updated five-year financial framework which outlines our plan to invest at least £70 billion across our regulated energy networks and adjacent businesses in the UK and US over the five-year period to 2030/31. Of this investment, around 85% is considered to be aligned with the principles of the EU Taxonomy legislation. 

Green capital expenditure increased by £2.2 billion to £9.8 billion, driven by investment in key infrastructure projects. Green alignment for capital expenditure increased to 88.5%, up from 81.1% in 2024/25, demonstrating continued progress in aligning investment with the clean energy transition. The share of green capital expenditure as a proportion of group capital investment, which includes capital prepayments and equity contributions, was 85%.

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 €1.35 billion in 2025/26 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 Eastern Green Link 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.