Wednesday, December 18, 2024
EnergyLatestNews

National Grid publishes RIIO-T3 plan

National Grid has published the RIIO-T3 business plan for its National Grid Electricity Transmission (NGET) business, covering the period from April 2026 to March 2031.

The submission, which follows extensive consultation with national, regional and local stakeholders, includes investment of up to £35 billion over the five years to March 2031, including baseline investment of more than £11 billion to maintain and upgrade its existing networks, alongside construction works for the first three of its Accelerated Strategic Transmission Investment (ASTI) projects where project assessments have been approved.

A pipeline investment of around £24 billion was also announced, which includes around £15 billion to increase network capacity, most of which relates to the 14 further confirmed ASTI projects.

Pipeline investment also includes additional potential projects that may be triggered by the UK government’s evolving priorities, it said. The plan enables NGET to maintain reliability levels, develop and deliver major network reinforcement and expansion projects, including the 17 ASTI projects, and the upgrade of around 3,500km of existing overhead lines, nearly doubling the amount of power it can transfer around the country.

It aims to deploy innovative technologies such as power control devices, and dynamic line ratings to maximise the capacity of its existing infrastructure; connect 35GW of new generation and storage, and 19GVA of large demand customers such as data centres and gigafactories, as well as creating a further 26GW of future connection options.

The plan will also help consumers avoid around £12 billion of system constraint costs across the period; contribute to the group’s wider UK investment, which supports 55,000 new jobs by 2030; and deliver a 50% reduction in our own emissions versus a 2018/19 baseline, and biodiversity net gain equivalent to more than 8,000 acres of land, seven times the impact of RIIO-T2.

In line with Ofgem’s guidance, the plan aligns with the National Energy System Operator’s (NESO) Future Energy Scenario 2024 Holistic Transition pathway.

John Pettigrew, CEO of National Grid plc, said:

“This plan represents the most significant step forward in the electricity network that we’ve seen in a generation. Through it we will nearly double the amount of energy that can be transported around the country, support the electrification of the industries of today and tomorrow; create new jobs; and support inward investment for the UK.

“It is an ambitious plan, set to future proof the network with strategic capacity and flexibility for the longer term. We’ve laid the foundations for its delivery through the steps we’ve already taken to progress ASTI projects, secure the supply chain, and fund the wider Group. We have done this whilst keeping a relentless focus on consumer bills and affordability.

“It is now critical that Ofgem plays its part in developing an investable framework that will allow us to deliver at the unprecedented scale and pace that is needed to meet the UK’s ambitious climate goals.”

Image from Shutterstock

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