National Grid (NG) GLIO Seminar Session 1 summary

Investment Plan and Key Drivers

• CapEx program nearly doubled to £60 billion over five years, with a progressive increase and over £13 billion planned for 2029, mainly driven by UK electricity transmission upgrades and US grid expansion to support renewables and demand growth.

• US gas business continues to see strong growth, supported by regulatory programs like leak-prone pipe replacement, with recent rate cases reflecting increased investment and returns.

• Investment trends include load growth, capex forecasts, and supply chain management.

Operational and Supply Chain Challenges

• Addressing supply chain constraints through bilateral contracts, framework agreements, and upfront commitments to secure capacity, especially for offshore projects.

• Established a new Strategic Infrastructure business unit, recruiting over 500 people, and focusing on workforce training to accelerate readiness.

• Partnerships with suppliers and transparent volume commitments help mitigate deliverability risks and support long-term investments.

• Challenges include supply chain disruption, inflation, and interest rate headwinds.

Funding and Financial Strategy

• £7 billion rights issue completed, providing funding certainty through 2031, complemented by asset sales, scrip dividend, and continued access to debt and hybrid markets.

• Chose a discounted rights issue to allow existing investors to participate in growth, with strong take-up and support.