National Grid has announced plans to invest an estimated $75 billion across the company’s service territory in the UK and US over the next five years, with nearly half of the funding dedicated to US energy system improvements in Massachusetts and New York. This significant step up to approximately $35 billion of investment represents an increase of more than 60% on National Grid’s investment in the region in the last five years. The plan makes National Grid one of the biggest investors in the energy transition in the Northeast and demonstrates the company’s commitment to help both states achieve their climate goals and deliver economic growth.
Group CEO of National Grid John Pettigrew said: “Today’s announcement is a clear illustration that National Grid is committed to playing our part in achieving the ambitious decarbonisation targets that New York and Massachusetts governments have set. The increased investment we’re announcing today follows positive engagement with our regulators in these states, reflecting a willingness to upgrade electricity networks to provide long term affordable energy to all, and reduce emissions across our gas networks.”
According to the US Department of Energy, lack of transmission infrastructure can directly contribute to higher electric bills, and more frequent and longer power outages. Preliminary findings from DOE’s National Transmission Needs Study also found that developing new transmission in the New York-New England corridor would not only improve reliability, but also support the increasing electric demand in the region. The federal analysis found the region needs a 255% increase in transmission development to support the clean energy growth expected under New York and Massachusetts policies.
In New York, National Grid is investing around $21 billion between now and 2029. Among those investments is the Upstate Upgrade which comprises more than 70 transmission enhancement projects across Upstate New York. The portfolio of projects will transform the grid, improve reliability and resilience, and enable National Grid to deliver renewable energy to homes and businesses across the state.
In New England, National Grid’s five-year investment will total roughly $14 billion. As part of this investment, National Grid will implement innovative solutions, like smart meters, to help consumers manage energy use; build modernised energy infrastructure; construct and upgrade infrastructure to make it less susceptible to extreme weather events; and maintain and improve the quality of our existing gas and transmission assets.
One such proposed project, the Massachusetts Electric Sector Modernisation Plan (ESMP) would create a path to upgrade and expand the electric grid, accelerate the connection of renewables to the grid, and introduce new customer programmes to encourage energy efficiency, and the adoption of clean energy.
In addition to the transmission investments, National Grid has proposed a three-year investment plan to modernise the Downstate gas businesses, reducing emissions, and making them more resilient and reliable. This includes a focus on disadvantaged communities and accelerating gas main replacements to reduce emissions, with a target of 45 miles/year of replacements in New York City and 119 miles/year on Long Island. Since 2013 National Grid has replaced 1500 miles of gas main, lowering system emissions by 102 385 metric tons of CO2e.
