Energy Transition: Why National Grid’s Emissions Increased
The energy transition involves shifting from fossil fuels to cleaner, renewable energy sources like solar and wind, driven by climate change concerns and the need for sustainable energy systems.
National Grid’s 2024-2025 annual report showcases its strategy and progress to delivering secure, affordable and clean energy infrastructure across the UK and US.
The company plans to commit nearly £60bn (US$76bn) across five years to accelerate the energy transition.
However, the year saw increases in emissions across Scopes 1, 2 and 3 for National Grid.
Sustainability performance and challenges
National Grid's emissions targets are underpinned by Science Based Targets initiative (SBTi) alignment.
However, its 2024/25 Scope 1 and 2 emissions rose to 7.4mt CO₂e, which it says is due to exceptional fossil fuel use in Long Island.
Scope 3 emissions also grew, which the company attributes to increased capital activity.
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.
Supporting the energy transition
At the heart of National Grid’s strategy is a programme to transform electricity networks and facilitate the shift to low-carbon power.
More than 92% of global added capacity in 2024 came from renewables, a trend reflected in National Grid’s investment focus: £51bn (US$64.7bn) of its five-year capital plan is earmarked for “green investment”, aligned to the EU Taxonomy.
In the UK, the company submitted its £35bn (US$47.3bn) business plan to Ofgem for 2026–2031, described as the largest overhaul of the transmission grid in generations.
This transmission includes building 700km of high-voltage subsea cables through the ASTI initiative, enabling more offshore wind to connect faster and more efficiently.
In the US, National Grid’s Electric Sector Modernisation Plan in Massachusetts and nearly £3bn (US$4bn) Upstate Upgrade in New York reflects similar ambitions.
“The UK Government’s bold mission to achieve clean power by 2030 requires a once-in-ageneration ‘rewiring’ of the country’s infrastructure,” says Paula Rosput Reynolds, Chair at the National Grid, in the report.
“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.”
Both of these huge investments focus on expanding capacity, digitising infrastructure and modernising the grid to support clean energy demand, including from data centres and electrified transport.
Resilience and affordability
Climate targets and economic growth are becoming increasingly intertwined.
With many voters prioritising the economy, National Grid is focused on delivering infrastructure that supports both climate goals and affordability.
In the UK, its networks are helping to power Britain’s largest EV battery factory, expected to deliver half the UK’s battery capacity needs by 2030 and create 4,000 green jobs.
To support vulnerable households, a new £13.8m (US$17.5m) Grid for Good Energy Affordability Fund was launched, alongside tailored fuel poverty programmes that helped 21,000 customers save £22m (US$28m) last year.
Efficiency also plays a key role in its strategy.
The company is deploying dynamic line ratings, digital substations and grid park technologies to get more from existing infrastructure – reducing cost and delay and avoiding premature builds where alternatives are viable.
Innovation and climate tech
Through its venture arm, National Grid Partners, the company has invested almost £445m (US$600m) into startups, including £74m (US$100m) in AI-driven solutions.
These technologies are now being deployed across its operations, from predictive maintenance and grid optimisation to cyber security and customer service enhancement.
National Grid is also helping to pioneer offshore hybrid interconnectors, such as the LionLink project with Dutch TSO TenneT.
Once complete, it will not only strengthen renewable capacity but also reinforce energy security between the UK and Europe.
“It's a year since we announced our £60 billion five-year investment plan and refocused our strategy on energy networks,” said John Pettigrew, Group CEO at National Grid, on Linkedin.
“I’m hugely proud of all we’ve achieved at National Grid in that time.”
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