£90bn to rewire Great Britain could be the cost over the next decade of rewiring Britain’s electricity network, The Guardian recently reported (30 June). This cost is 50% higher than before the government took office in July 2024, and it could reach almost £90bn in the next decade, says the energy system operator the National Energy System Operator (NESCO).
NESCO was set up on 1 October 2024 as an independent public corporation for the Department of Energy Security and Net Zero and took over from the National Grid Electricity System Operator.
Building new high-voltage transmission lines and infrastructure to connect low-carbon energy to the grid in the 2030s was initially forecast by the energy system operator to cost £58bn. Updated forecasts from NESO now recommend network investments of £89bn could be needed to deliver the government’s clean power targets while meeting the country’s rising demand for electricity, including AI centres. Michael Shanks, the energy minister, said: “We are taking a strategic approach to building an energy system fit for the future – that safeguards our energy independence and keeps bills down while driving economic growth in every corner of Britain.“This provides a blueprint for where our electricity grid is needed – to power AI and industry, and ensure homes and businesses benefit from Britain’s clean, home-grown energy.”
The bad news is that it appears that these infrastructure investments will be recovered through network charges included in household and business energy bills. As reported by Reuters last year.