British multinational electricity and gas utility company National Grid has unveiled a £60bn ($76.3bn) investment plan set to transform its networks up to 2028.

The strategic move will yield an annual asset growth of around 10%, propelling the group’s assets towards £100bn by 2029.

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The investment is not only expected to enhance shareholder value and support more than 60,000 additional jobs but also to expedite the decarbonisation of the energy system, aligning with the needs of increasingly digital and electrified economies.

To fund the expansion, National Grid is preparing for a £7bn fully underwritten rights issue.

The company is also optimising its operations by divesting its US onshore renewables division, National Grid Renewables, and its UK-based LNG asset, Grain LNG.

The decisions were announced alongside its financial results for 2023. The company reported gross revenue of £19.85bn, an 8% decrease from the previous year’s £21.6bn.

National Grid’s operating costs have seen a reduction of 13%, falling to £15.4bn from £17.7bn in the previous year.

The underlying operating profit has risen by 4% to £4.8bn, with a 6% increase at constant currency rates.

However, statutory operating profit for continuing operations has decreased by 8% to £4.5bn, primarily due to non-cash exceptional charges in 2023/24.

Despite a downturn in statutory international financial reporting standards earnings, which dropped by 18% to £2.2bn from the previous year’s £2.7bn, National Grid’s underlying earnings improved, reaching £2.8bn — a 6% increase.

The company’s capital investment has also increased to £8.23bn, an 8% rise compared to the previous year’s £7.59bn, driven by early investment in the UK Electricity Transmission’s accelerated strategic transmission investment (ASTI), new transmission projects in New York, including the Smart Path Connect project, and increased spending on asset condition and grid modernisation in New England.

National Grid CEO John Pettigrew stated: “We will be investing £60bn in the five years to the end of March 2029 – that’s nearly double the level of investment of the past five years.

“Our readiness to take this step is underscored by another year of strong financial and operational performance, with underlying operating profit and underlying EPS [earnings per share] both up 6% at constant currency, with record investment of £8.2bn across the group.”

“In the UK, our 17 major onshore and offshore transmission projects are moving ahead at pace, and in the US our $4bn upstate upgrade is underway, representing the largest investment in New York’s electricity transmission network for over a century.

“Our sixth interconnector, the Viking Link to Denmark, came online in December and is the world’s longest onshore and subsea HVDC cable, demonstrating the world-class capabilities within National Grid.”