UK-based utility firm National Grid (NGG) on Thursday said it is targeting investments of at least 70 billion British pounds ($94.61 billion) across its regulated energy networks and adjacent businesses in the UK and US in the five year period to 2031.
About 85% of the investment is compliant with the European Union Taxonomy legislation and directly supports decarbonizing of energy networks, the company said in its earnings statement for the fiscal year ended March 31.
In the UK, National Grid expects to invest about $31 billion pounds in electricity transmission to boost network capacity and support increased renewable generation, lower reduce constraint costs, connect new customers, and maintain network resiliency.
"We expect our Electricity Distribution network to invest around [9 billion pounds] in asset replacement, reinforcement and new connections, facilitating the infrastructure for electric vehicles, heat pumps and directly connected generation," the company said.
In the US, the company projects investment of 17 billion pounds in New York, and 12 billion pounds in New England, with about 60% of this investment expected in electricity networks and the rest directed towards its gas business.
Meanwhile, National Grid Ventures has committed to spend about 1 billion pounds, including maintenance investment across the six operational interconnectors, the company said.
National Grid expects asset growth of about 10% compound annual growth rate through to 2030/31 following this investment, with total assets expected to grow to about 115 billion pounds by March 2031.
For the fiscal year ended March 31, the company's UK Electricity Transmission segment reported an underlying operating profit of 1.68 billion pounds, 18% higher than the 1.43 billion pounds reported in the corresponding year-ago period.
For the same period, the UK Electricity Distribution segment reported a 3% year-on-year rise in underlying operating profit to 1.24 billion pounds, compared with 1.2 billion pounds reported in the year before.
Underlying operating profit for the New England division fell 1% year-on-year to 866 million pounds, whereas the New York division reported a 25% jump from the year-before to 1.71 billion.