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Britons to pay almost double for electricity in Labour’s race to decarbonise for net zero

National Grid has unveiled a £35bn plan to upgrade Britain’s power transmission network – marking the most extensive overhaul of the system in a generation.

The ambitious project, announced on Wednesday, will see household charges for grid maintenance nearly double from £23 to £44 per year.

The investment, which requires regulatory approval, represents almost triple the spending of the previous five-year period.

The massive infrastructure upgrade is designed to prepare Britain’s power network for the transition to net zero, with plans to expand and modernise more than 2,000 miles of network across England and Wales between 2026 and 2031.

Ed Miliband

Under the proposals, National Grid will undertake extensive upgrades, rewiring and expansion of its network infrastructure across the country.

The plan includes £11bn of “baseline” schemes to be agreed in advance, alongside £24bn worth of “pipeline” projects that energy regulator Ofgem will consider individually.

The work involves replacing ageing cables with new ones, installing higher-voltage cables, and constructing new power lines.

Modern technologies, including power flow control devices, will be installed to enable more precise management of the overall system.

The upgrades are crucial as many windfarms are built in Scotland or off the coast, requiring additional capacity to transport power to areas of highest demand in southern England.

Currently, wind farms must often switch off when the grid becomes too congested, costing millions in compensation.

The upgrade forms a key part of Energy Secretary Ed Miliband’s ambitious plan to eliminate fossil fuels from Britain’s power system by 2030.

The government aims to double onshore wind capacity whilst tripling both solar and offshore wind capacity during this period.

Miliband unveiled his clean power mission last Friday, which includes plans to overhaul planning laws to expedite large project approvals by local authorities.

However, the rapid pace of change has sparked controversy, with protest groups emerging across the country in opposition to new infrastructure such as substations and pylons.

The speed of the decarbonisation deadline has been described as highly ambitious by the Energy Secretary’s own advisors.

In the North West, National Grid plans to upgrade five substations and re-string approximately 200 miles of overhead cables through a process known as “reconductoring”.

The Midlands will see the construction of a state-of-the-art control centre and five new “supergrid transformers” to convert high-voltage electricity into low-voltage power for household distribution.

London and the South East are set for significant developments, including new substations and multiple supergrid transformers.

These regions will also benefit from new battery storage facilities and major subsea power cables.

The extensive regional upgrades are designed to ensure the network can handle increased power transmission demands across the country.

John Pettigrew

National Grid’s chief executive John Pettigrew emphasised the historic significance of the upgrade programme.

“This plan represents the most significant step forward in the electricity network that we’ve seen in a generation,” he said.

He highlighted that the project would nearly double the country’s energy transportation capacity.

The upgrades will “support the electrification of the industries of today and tomorrow, create new jobs and support inward investment for the UK,” according to Pettigrew.

He described it as “an ambitious plan, set to future-proof the network.”

The scale of investment reflects the unprecedented transformation required to modernise Britain’s power infrastructure.

The upgrades are expected to generate significant cost savings for consumers in the long term.

National Grid estimates the project will save £12bn in “curtailment” costs – money currently paid to wind farms to switch off during periods of grid congestion.

These infrastructure improvements could reduce household bills by approximately £40 per year compared to a scenario without upgrades.

The cost-benefit analysis suggests that while consumers will face higher grid maintenance charges initially, the long-term savings could offset these increases.

The £35bn investment aims to address current inefficiencies in the power network, where valuable renewable energy is frequently wasted due to transmission constraints.

National Grid Electricity Transmission president Alice Delahunty underscored the historic importance of the five-year plan.

“The decisions we make in the next five years will shape the energy system and our society for generations to come,” she said.

She emphasised the need for industry-wide cooperation, stating: “It has never been so important that we work together, as one industry, to deliver for this country.”

The £35bn investment represents a watershed moment in Britain’s energy infrastructure, preparing the network for a future dominated by renewable power sources.

The success of this ambitious upgrade programme will be crucial for meeting the government’s 2030 clean power targets.

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