This year will undoubtedly be remembered as a watershed for renewable electricity generation in the UK. By the end of 2024, it is likely to be the first full year in which low-carbon renewables – wind, solar, and hydropower – generated more electricity than fossil fuels.
The country’s progress in phasing out hydrocarbons was exemplified by the closure of Ratcliffe-on-Sea, the UK’s last coal-fired power plant. I believe it won’t be long before wind power overtakes gas as the largest single source of power generation.
Meanwhile, the new government has entered Whitehall with an ambitious energy transition programme and has hit the ground running with its energy policy: overturning the ban on onshore wind in England, establishing GB Energy, and creating the new ‘Mission Control’ institute to accelerate the journey to cleaner and cheaper energy – all within its first month.
For National Grid, 2024 has been a year focused on delivering our ambitious plans to build the networks needed to accelerate the UK’s energy transition. Earlier this year, we announced an investment of around £30 billion in the UK over the next five years; a transformational step up in energy infrastructure investment, unprecedented in scale and ambition.
This year was also a landmark year for National Grid regarding our Accelerated Strategic Transmission Infrastructure (ASTI) projects, with construction commencing on five of our 17 projects. All 17 will play a crucial role in connecting more clean, low-carbon power to the transmission network in England and Wales.
While getting spades in the ground is always a cause for celebration, I’m also pleased that we held public consultations over the summer covering eight other ASTI projects, including 58 in-person consultations with over 7,600 attendees and 750 participants in online webinars.
Focus on delivery
If 2024 can be characterised as a landmark year in setting the direction for the UK’s clean energy future, then 2025 needs to be a year that we build on this commitment. At National Grid, we welcome the government’s early positive intent to drive the energy transition forward at a more urgent pace, along with the initial reforms announced so far.
What we want to see next year is a laser focus on delivery, especially when it comes to delivering the necessary reforms to the planning and connections processes. These are two key areas that Ben Wilson, my predecessor in this role, highlighted as key challenges at the core of the energy transition, when he spoke to this publication earlier this year.
We’ve seen encouraging steps in the right direction recently, with the National Energy System Operator (NESO) publishing a consultation on plans to reform the connections process. This marks a shift from the “first come, first served” approach to one where projects ready to connect are prioritised.
Embracing innovation in 2025 and beyond will also be critical to successfully delivering the energy transition. The energy sector has traditionally been slower to adopt technological innovation, partly due to its heavily regulated nature and the focus on reliability. We cannot adopt the “move fast and break things” approach common in tech. However, the scale of the challenge means that embracing new technology and thinking will be vital for accelerating the energy transition.
To this end, National Grid launched a venture capital arm, National Grid Partners (NGP), in 2018 to discover and nurture technological innovations that can unlock new possibilities for the energy transition. Since its launch, NGP has invested $500 million in nearly 50 companies, with startups in our portfolio attracting over $3 billion in additional funding.
Some of the exciting innovations in NGP’s portfolio that we have deployed across our global businesses include LineVision, a startup that produces state-of-the-art sensors that allow for real time monitoring of our transmission lines and can help support growing demand for electricity by allowing us to bring more energy online.
Finally, we hope to see further progress next year on developing a framework that outlines how local communities can benefit from hosting new transmission infrastructure. We believe that communities hosting infrastructure should be recognised and will continue to work with the government and industry to ensure the energy transition delivers tangible long-term benefits.
As we look ahead to 2025, it is crucial that the momentum gained in 2024 is not only maintained but accelerated. The groundwork laid this year must translate into actionable reforms that streamline the connections process and enhance planning efficiency. By prioritising these areas, we can ensure that the UK’s energy transition remains on track, delivering a cleaner, more sustainable future while empowering communities.
Recommended for you
