Huge grid investment returns highlighted

Major investment in the UK’s electricity grid would unlock huge economic benefits, according to a new report.

A spend of £34bn over the next 15 years would deliver £194bn in returns with an additional 92,000 jobs supported annually.

The study by Cambridge Econometrics and Arup showed sectors across the economy would benefit from investment in the grid, ranging from agriculture, property, through to construction.

It also said grid modernisation would reduce the UK’s reliance on unabated gas.

However, the report emphasises that grid investment alone cannot unlock these benefits. It calls for a more joined-up, programmatic approach to planning and delivery across generation, storage, transmission, distribution, and demand side flexibility.

“Such coordination would enable greater operational and economic synergies, with digitalisation further enhancing grid flexibility and stability,” it concluded.