ScottishPower Energy Networks (SPEN) and National Grid have submitted their RIIO-T3 business plans to Ofgem.
SPEN’s plan dedicates £10.6 billion to infrastructure upgrades in its business plan covering the next price control period from 2026 to 2031, more than triple the amount it dedicated in its RIIO-T2 plan (£3.4 billion).
It says it will deliver new and upgraded transmission infrastructure in central and southern Scotland including 12 new transmission substations, 450km of upgraded existing circuits, 87km of upgraded overhead lines and 35km of underground cables.
The plan, which seeks to increase capacity on Great Britain’s transmission grid, also outlines investment that SPEN says will increase network resilience, maintain existing assets and help connect up to 19GW of new clean, green power to the grid.
A higher grid capacity should reduce constraint costs, in turn enabling suppliers to lower their costs and deliver savings on household energy bills.
In September, ScottishPower, owned by Spanish energy company Iberdrola, confirmed it was doubling its investment in the UK to 2028, from £12 billion to £24 billion, with two-thirds of the investment focused on electricity networks.
SPEN recently announced the 19 preferred companies to deliver its £5.4 billion grid upgrade, which will see spend of up to £3 billion on new overhead lines and £2.4 billion on new and upgraded substations.
Nicola Connelly, CEO of SP Energy Networks, said: “If UK wants to deliver on its ambition to be a clean energy superpower and capitalise on its natural resources, then it needs the electricity grid to match demand.
“Government and industry have never been clearer on what needs to be achieved and now we need Ofgem to match that ambition with a price control that unlocks the capital required to finance the projects that will deliver clean power in the next decade.”
Ofgem’s RIIO-3 framework (RIIO-T3 relating specifically to transmission programmes) offers network companies incentives for innovation and securing investment so that they can develop sustainable energy networks at the lowest cost for current and future customers.
National Grid plans up to £35 billion network investment
National Grid has also published a RIIO-T3 business plan, for its National Grid Electricity Transmission (NGET) business. Of a potential £35 billion investment, a baseline of over £11 billion is dedicated to maintaining and upgrading existing networks for its Accelerated Strategic Transmission Investment (ASTI) projects where project assessments have been approved.
A remaining £24 billion pipeline investment, including around £15 billion to increase network capacity, related predominantly to the 14 further confirmed ASTI projects. NGET will also have funding available for “additional potential projects that may be triggered by the UK government’s evolving priorities”.
John Pettigrew, CEO of National Grid plc, said: “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.”
Pettigrew echoed SPEN’s Pettigrew, saying Ofgem must now develop “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.”
