Sustainability: Why National Grid's Emissions Increased
The energy transition involves shifting from fossil fuels to cleaner, renewable energy sources, due to increasing concerns around climate change the need for sustainable energy systems.
National Grid is pushing ahead with a £60bn (US$76bn) strategy to overhaul power networks in the UK and US, targeting a shift to low-carbon energy and greater electrification.
However, the year saw increases in emissions across Scopes 1, 2 and 3 for National Grid.
Emissions challenges and trade-offs
Despite its focus on decarbonisation, National Grid saw its greenhouse gas emissions increase.
Scope 1 and 2 emissions for 2024/25 rose to 7.4 million tonnes of carbon dioxide equivalent (mt CO₂e).
Scope 3 emissions also grew, which the company attributes to increased capital activity.
The company’s emissions targets are aligned with the Science Based Targets initiative (SBTi), a global framework guiding organisations to reduce emissions in line with climate science.
It returned £89m (US$113m) to UK customers from interconnector revenues and has plans to return a total of £426m (US$546m) over four years.
Clean energy investments
The company’s five-year plan prioritises clean energy infrastructure, with around £51bn (US$64.7bn) of the total investment tagged for green projects, consistent with the the EU Taxonomy.
Its goal is to support the expansion of renewables and prepare the grid for growing demands, especially as the use of electric vehicles, heat pumps and data centres rises.
In the UK, National Grid has submitted a £35bn (US$47.3bn) business plan to the energy regulator Ofgem, covering the period 2026–2031.
It is described as the biggest transformation of the country’s high-voltage transmission grid in generations.
Central to this plan is the ASTI (Accelerated Strategic Transmission Investment) programme, which involves laying 700 kilometres of subsea high-voltage cables to connect offshore wind farms faster and more efficiently.
Across the Atlantic, the Electric Sector Modernisation Plan in Massachusetts and the £3bn (US$4bn) Upstate Upgrade in New York mirror the UK ambitions, aiming to build out grid capacity and enable electrification.
“The UK Government’s bold mission to achieve clean power by 2030 requires a once-in-a-generation ‘rewiring’ of the country’s infrastructure,” say Paula Rosput Reynolds, Chair at National Grid.
“The US, by contrast, is focused on energy as a key enabler of economic growth, with an emphasis on driving the AI revolution and reshoring of manufacturing. Both approaches will require substantial new energy supplies and infrastructure.”
Grid resilience, affordability and innovation
National Grid says that balancing climate ambition with economic realities remains key to its strategy.
Infrastructure spending supports not just net zero goals but also affordability and reliability.
The company has backed Britain’s largest electric vehicle battery factory, expected to meet half of the UK’s battery capacity needs by 2030 while creating 4,000 jobs.
To aid households under financial pressure, the company launched a £13.8m (US$17.5m) Grid for Good Energy Affordability Fund.
Tailored fuel poverty schemes saved 21,000 customers £22m (US$28m) last year.
Efficiency upgrades are also central.
Technologies like dynamic line ratings, digital substations and grid park systems are being rolled out to increase grid capacity without building new infrastructure, reducing delays and costs.
Innovation through climate technology is being driven by National Grid Partners, the company’s venture capital arm.
It has committed £445m (US$600m) to start-ups, including £74m (US$100m) for AI-powered solutions.
These are being applied to areas such as predictive maintenance, cyber security and grid performance.
One standout project is LionLink, a hybrid offshore interconnector in partnership with Dutch transmission operator TenneT.
This initiative aims to connect wind farms across borders, boosting both renewable output and energy security for the UK and continental Europe.
Reflecting on the organisation’s direction, Chief Executive Officer John Pettigrew writes: “It's a year since we announced our £60 billion five-year investment plan and refocused our strategy on energy networks. I’m hugely proud of all we’ve achieved at National Grid in that time.”
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