Grid upgrades projected to add £58bn to UK economy by 2035

Electricity network upgrades are expected to contribute £58 billion to the UK gross value added by 2035, while supporting the creation of 210,000 jobs across the country. This projection forms the core of a new growth plan published by the Energy Networks Association and BEAMA, which outlines the sector’s trajectory over the coming decade. The report indicates that the investment will have a significant regional impact, with Scotland alone set to receive a £16.5 billion boost in gross value added and the creation of upwards of 48,000 jobs by the middle of the next decade.

The job figures cited in the report account for both direct and indirect roles generated by the sector. The development of the plan involved input from the UK government, the Scottish government, the Welsh government, the regulator Ofgem, as well as employers and trade unions. Michael Shanks, the UK energy minister, wrote the foreword for the document, stating that the prime minister has placed reindustrialisation at the centre of the government’s vision for the country. He emphasised that this strategy involves creating quality employment, developing skills and apprenticeships, and altering procurement methods to foster local investment. Shanks described the electricity network as central to this ambition, noting that grid investment can support more than 210,000 high-quality jobs and add £58 billion to the economy, thereby supporting manufacturers, workers and communities in every region.

The plan highlights measures that firms and policymakers can adopt to maximise local content engagement and value retention within the country. To support small and medium-sized enterprises and UK industry, the report recommends enhanced supply chain visibility. It argues that SMEs require clear sight of upcoming work to plan multi-year capacity effectively. In response to these needs, the Energy Networks Association and BEAMA have supported the establishment of a Growth Partnership. This new body will be overseen by an independent chairperson and will include sub-groups focused on driving cross-sector action plans related to supply chains and skills development.

Cordi O’Hara, co-chair of the Electricity Networks Sector Growth Plan and president of National Grid UK, described the grid upgrades as a once-in-a-generation opportunity to drive national growth. She stated that while the primary goal is to strengthen energy security and connect homegrown energy to homes and businesses, the project also aims to strengthen UK manufacturing and supply chains. O’Hara noted that capturing this opportunity requires long-term visibility, early commitment and genuine partnership to give businesses the confidence to invest. Earlier this year, National Grid announced plans to invest £31 billion in the UK electricity transmission sector and approximately £9 billion in UK electricity distribution by 2031.

Training providers have also responded to the sector’s growing workforce by establishing new sites. In September, 3T Training Services opened its Power Academy in Aberdeen, with the first group of users being a cohort of apprentices from Siemens Energy. Yselkla Farmer, chief executive of BEAMA, commented that removing uncertainty is beneficial for both the industry and UK growth. She noted that every new pylon and substation built over the next decade represents a potential order for a factory and jobs in local communities, providing the electricity needed to power industries and the economy. This context follows a recent investigation by the National Energy System Operator into a near blackout during the summer, which concluded that whistleblower claims regarding the secure running of the grid were unsubstantiated.