National Grid's £60 billion plan for de-carbonising the energy system unveiled

National Grid's £60 billion plan for de-carbonising the energy system unveiled

National Grid Unveils £35 Billion Investment Plan to Decarbonize UK's Energy System

In a significant move towards a greener future, National Grid has announced a £35 billion investment plan aimed at decarbonizing the UK's energy system over the next five to six years. The plan, known as the RIIO-T3 investment, focuses on expanding and modernizing the electricity transmission network to support renewable energy integration and net-zero goals.

The heart of this investment is the Electricity Transmission Partnership (ETP), which aims to double the capacity of the UK transmission network by 2031. The plan includes 130 substation projects across England and Wales to modernize aging infrastructure and support variable renewables. This investment is expected to create local jobs, boost economies, and provide numerous strategic investment opportunities aligned with environmental, social, and governance (ESG) goals.

The UK government is complementing this effort by focusing on a comprehensive electricity market overhaul to cut grid costs and secure clean power investment. This reform package aims to drive long-term cost savings, investment certainty, and consumer support near new infrastructure projects.

Meanwhile, ChargeUK, a leading EV charging organization, has committed to investing £6 billion in EV charging by 2030. The ChargeUK manifesto focuses on 12 areas for improved Electric Vehicle (EV) rollout to meet net-zero targets. The manifesto suggests measures to support an expanded rollout of EV chargers, such as incorporating EV chargers within Permitted Development Rights and including renewable electricity in the government's Renewable Transport Fuel Obligation.

In a world-first, a green hydrogen trial has been announced at Worthing crematorium. The trial involves running one of three cremators on 100% green hydrogen, instead of fossil gas. The University of Brighton will be monitoring changes in emissions during the four-week trial, and a business case will then be developed to permanently reduce emissions at the crematorium. This initiative is intended to help Adur & Worthing Council meet its targets of becoming a carbon neutral authority by 2030 and a net zero borough by 2045.

The Public Accounts Committee has recommended the creation of an easy-to-use website to make the heat pump landscape more accessible for consumers. The report also asks for the Department for Energy Security & Net Zero to publish its report into the cost of heat pumps among different socio-economic groups by January 2025.

It's worth noting that National Grid also intends to sell off a number of its renewable businesses, including National Grid Renewables and Grain LNG. The investment plan will allocate £51 billion for the decarbonisation of energy networks, aligning with the EU Taxonomy.

However, ChargeUK states that the current use of private investment is not being maximised to increase EV infrastructure. The organisation recommends that the government equalises VAT at 5% for both public and private charging to reduce the cost of EV ownership.

The National Infrastructure Commission has confirmed that the UK is on track to meet the government's goal to have 300,000 public charge points installed by 2030. ChargeUK has published an election manifesto titled "Our Electric Future: ChargeUK's manifesto for the next Government".

In conclusion, National Grid's investment plan represents a significant commitment to decarbonizing the UK's energy system. The £35 billion investment over the next 5-6 years, with the £8 billion ETP as a key element, is a crucial step towards achieving the country's net-zero targets. Other initiatives, such as the green hydrogen trial and ChargeUK's EV charging investments, further underscore the UK's commitment to a greener future.

[1] National Grid (2022). RIIO-T3: Delivering the Future Energy System. Retrieved from National Grid website

[2] Department for Business, Energy & Industrial Strategy (2021). Plan for Change: The UK's Energy Revolution. Retrieved from Government website

[3] Committee on Climate Change (2022). UK Green Taxonomy: A Progress Report. Retrieved from Committee on Climate Change website

1. The investment plan, RIIO-T3 by National Grid, emphasizes a £35 billion commitment towards decarbonizing the UK's energy system, focusing significantly on renewable energy integration through the Electricity Transmission Partnership (ETP).
2. ChargeUK, an EV charging organization, has laid out a £6 billion plan in its manifesto to improve the EV rollout, which encompasses measures such as incorporating EV chargers within Permitted Development Rights and including renewable electricity in the government's Renewable Transport Fuel Obligation.
3. Despite the government's focus on clean power investment, ChargeUK feels that the current use of private investment for EV infrastructure is not being fully maximized and recommends equalizing VAT at 5% for both public and private charging to reduce the cost of EV ownership.
4. The National Infrastructure Commission confirmed that the UK is on track to meet the government's goal of having 300,000 public charge points installed by 2030, as detailed in ChargeUK's election manifesto titled "Our Electric Future: ChargeUK's manifesto for the next Government".

Read also: