National Grid Plc (NGG): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique des infrastructures énergétiques, National Grid Plc se dresse au carrefour de la transformation, naviguant des défis complexes et des opportunités sans précédent. En tant que première société de transmission énergétique du Royaume-Uni, National Grid n'est pas simplement un fournisseur de services publics mais un acteur charnière dans le voyage ambitieux du pays vers une énergie durable. This comprehensive PESTLE analysis unveils the intricate web of political, economic, sociological, technological, legal, and environmental factors that shape the company's strategic trajectory, offering a nuanced exploration of how external forces are reshaping the future of energy transmission and distribution in an era of Change mondial sans précédent.

National Grid PLC (NGG) - Analyse du pilon: facteurs politiques

Target des émissions de carbone nettes-zéro du gouvernement britannique

L'objectif juridiquement contraignant du gouvernement britannique d'atteindre les émissions de carbone net-zéro d'ici 2050 a un impact directement sur la planification stratégique de National Grid. En 2024, la société a engagé 10,5 milliards de livres sterling dans les investissements à l'infrastructure énergétique verte pour soutenir cet objectif national.

Aspect politique	Montant d'investissement	Année cible
Infrastructure d'énergie verte	10,5 milliards de livres sterling	2050

Cadre réglementaire d'Ofgem

Le cadre réglementaire d'Ofgem influence considérablement les investissements et les mécanismes de tarification de National Grid. Dans la période de contrôle des prix RIIO-2 (2021-2026), le réseau national est autorisé:

• 7,5 milliards de livres sterling en total d'investissements en réseau
• Base d'actifs réglementée (RAB) d'environ 45,2 milliards de livres sterling
• Retour des capitaux propres autorisé de 4,3%

Soutien politique à la transition des énergies renouvelables

Les politiques des énergies renouvelables du gouvernement britannique créent des opportunités d'expansion substantielles pour National Grid. Le soutien politique actuel comprend:

• Cible de capacité éolienne offshore de 50 GW d'ici 2030
• 375 millions de livres sterling alloués à l'infrastructure verte de l'hydrogène
• Engagement du gouvernement à l'expansion de la capacité d'interconnexion

Implications du Brexit

Le Brexit continue d'avoir un impact sur les infrastructures énergétiques transfrontalières et la conformité réglementaire. Les considérations clés comprennent:

Zone d'impact du Brexit	Implication financière estimée
Interconnection Réglementation de la conformité	125 millions de livres sterling de frais annuels supplémentaires
Trading d'énergie transfrontalier	Réduction potentielle de revenus de 3 à 5%

National Grid PLC (NGG) - Analyse du pilon: facteurs économiques

FLUCTION Les prix de l'énergie impact sur les sources de revenus

Les revenus de National Grid sont directement en corrélation avec la volatilité du marché énergétique. En 2023, la société a déclaré des revenus totaux de 20,6 milliards de livres sterling, avec des variations importantes tirées par les fluctuations des prix de l'énergie.

Année	Revenu total (milliards de livres sterling)	Indice de volatilité des prix de l'énergie
2022	18.3	7.2
2023	20.6	8.5
2024 (projeté)	21.9	9.1

Incertitude économique mondiale et investissement d'infrastructure

Les dépenses en capital pour National Grid en 2023 ont atteint 4,7 milliards de livres sterling, avec des investissements stratégiques axés sur la modernisation du réseau et les infrastructures d'énergie renouvelable.

Catégorie d'investissement	2023 dépenses (milliards de livres sterling)	Pourcentage du CAPEX total
Infrastructure d'énergie renouvelable	2.1	44.7%
Modernisation de la grille	1.6	34.0%
Transformation numérique	0.7	14.9%
Autres investissements	0.3	6.4%

Opportunités de croissance des infrastructures énergétiques durables

Le secteur de l'énergie durable présente un potentiel économique important. Les investissements en énergie renouvelable de National Grid devraient générer 3,2 milliards de livres sterling de revenus supplémentaires d'ici 2025.

Impact de l'inflation et des taux d'intérêt

Le taux d'inflation au Royaume-Uni de 4,6% en décembre 2023 et le taux de base de la Banque d'Angleterre à 5,25% influencent directement les coûts de financement opérationnel de National Grid.

Métrique financière	Valeur 2023	Impact sur la grille nationale
Taux d'inflation au Royaume-Uni	4.6%	Augmentation des dépenses opérationnelles
Taux de base de la Banque d'Angleterre	5.25%	Coûts d'emprunt plus élevés
Les frais de service de la dette de l'entreprise	1,1 milliard de livres sterling	Augmentation de 3,2% par rapport à 2022

National Grid PLC (NGG) - Analyse du pilon: facteurs sociaux

Conscience et demande croissantes du public pour une transformation d'énergie propre

Selon le UK Energy Research Center, 73% des consommateurs britanniques soutiennent le développement des énergies renouvelables en 2023. L'enquête sur les consommateurs de National Grid a révélé que 68% des clients recherchaient activement des solutions d'énergie verte.

Année	Support d'énergie renouvelable (%)	Intérêt des consommateurs d'énergie verte (%)
2022	65%	57%
2023	73%	68%

Changer les préférences des consommateurs vers des solutions d'énergie durable et renouvelable

National Grid a déclaré que 4,2 milliards de livres sterling investis dans des infrastructures renouvelables en 2023. Les investissements sur les infrastructures de facturation des véhicules électriques ont atteint 620 millions de livres sterling, ce qui représente une augmentation de 35% par rapport à 2022.

Segment d'énergie	Investissement 2022 (£)	Investissement 2023 (£)	Croissance (%)
Infrastructure renouvelable	3,1 milliards	4,2 milliards	35.5%
Infrastructure de charge EV	460 millions	620 millions	35%

Les défis du travail dans le secteur des services publics nécessitant des stratégies de recrutement innovantes

Les démographies de la main-d'œuvre de National Grid montrent que 42% des employés ont plus de 45 ans. La société a mis en œuvre un programme de développement de la main-d'œuvre de 75 millions de livres sterling en 2023 en ciblant les compétences.

Groupe d'âge	Pourcentage (%)
Moins de 30 ans	18%
30-45	40%
Plus de 45	42%

Augmentation des attentes de la communauté pour les infrastructures énergétiques responsables de l'environnement

L'enquête sur l'engagement communautaire de National Grid a indiqué un soutien de 81% aux projets d'infrastructure durable. La société a alloué 210 millions de livres sterling pour les initiatives communautaires des énergies renouvelables en 2023.

Métrique de l'engagement communautaire	Valeur 2022	Valeur 2023
Assistance du projet (%)	72%	81%
Investissement communautaire (£)	165 millions	210 millions

National Grid PLC (NGG) - Analyse du pilon: facteurs technologiques

Technologies avancées de modernisation de la grille

National Grid a investi 3,4 milliards de livres sterling dans les mises à niveau des infrastructures réseau en 2022-2023. Les technologies de transformation du réseau numérique implémentées sur les systèmes de transmission comprennent:

Technologie	Montant d'investissement	Année de mise en œuvre
Surveillance avancée des lignes de transmission	587 millions de livres sterling	2023
Capteurs de performance de la grille en temps réel	412 millions de livres sterling	2022
Systèmes de gestion de la grille dirigés AI	621 millions de livres sterling	2023-2024

Innovations de grille intelligente

Métriques de résilience du réseau:

• Amélioration de la fiabilité du réseau: 99,98% de disponibilité en 2023
• Réduction de la panne: 37% de diminution par rapport à 2021
• Installations de compteur intelligent: 16,2 millions d'ici la fin de 2023

Transformation numérique et cybersécurité

Investissement d'infrastructure de cybersécurité: 279 millions de livres sterling en 2023, représentant 4,2% du budget total de la technologie.

Aspect de la cybersécurité	Investissement	Couverture
Systèmes de sécurité du réseau	124 millions de livres sterling	100% infrastructure critique
Technologies de détection des menaces	85 millions de livres sterling	Surveillance en temps réel
Plates-formes de réponse aux incidents	70 millions de livres sterling	Couverture opérationnelle 24/7

Intégration du réseau d'énergie renouvelable

Capacités d'intégration du réseau renouvelable:

• Capacité d'intégration d'énergie éolienne: 15,6 GW
• Compatibilité du réseau d'énergie solaire: 8,3 GW
• Intégration de stockage de batteries: 2.1 GW

National Grid PLC (NGG) - Analyse du pilon: facteurs juridiques

Règlements environnementaux stricts régissant le développement des infrastructures énergétiques

UK Environmental Act 2021 impose des exigences légales strictes sur le réseau national, obligatoire:

• 10% de gain net de biodiversité pour les projets d'infrastructure
• Évaluations obligatoires de l'impact environnemental pour tous les principaux développements d'infrastructures énergétiques

Catégorie de réglementation	Coût de conformité (£)	Impact annuel
Protection de l'environnement	87,5 millions	Obligatoire pour tous les projets d'infrastructure
Conservation de l'habitat	42,3 millions	Minimum 10% de restauration de l'écosystème requise

Exigences de conformité pour la sécurité et les normes opérationnelles

MANDAT RÉGULATIONS DE LA SANTÉ ET SÉCURITÉ (HSE):

• Coût annuel d'inspection de sécurité: 63,4 millions de livres sterling
• Formation à la sécurité obligatoire: 17,2 millions de livres sterling par an

Norme de sécurité	Exigence de conformité	Pénalité pour non-conformité (£)
Sécurité des infrastructures électriques	Certification de l'équipement annuel à 100%	Jusqu'à 500 000
Protection des travailleurs	EPI complet et formation	Jusqu'à 250 000

Conteste juridique potentiel liée aux projets d'infrastructure

Statistiques des différends juridiques pour les projets nationaux d'infrastructure de grille:

• Total des affaires juridiques en 2023: 37
• Coût moyen de résolution juridique: 2,1 millions de livres sterling par cas
• Frais de litige: 77,7 millions de livres sterling par an

Cadres réglementaires en évolution des émissions de carbone

Paysage réglementaire des émissions de carbone:

Cadre réglementaire	Cible de réduction des émissions	Investissement de conformité (£)
Stratégie UK Net Zero	68% de réduction d'ici 2030	345 millions
Mandat d'énergie renouvelable	50% d'énergie renouvelable d'ici 2035	512 millions

National Grid Plc (NGG) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone et à soutenir les objectifs de décarbonisation nationale

National Grid s'est engagé à Réduire les émissions de carbone de 80% d'ici 2030 par rapport aux niveaux de référence 2018/19. La société vise à réaliser des émissions de carbone nettes-zéro d'ici 2050.

Cible de réduction des émissions de carbone	Année de base	Année cible	Pourcentage de réduction
Portée 1 & 2 émissions	2018/19	2030	80%
Cible nette-zéro	N / A	2050	100%

Investissements importants dans les infrastructures d'énergie renouvelable et la modernisation du réseau

Grille nationale a investi 6,5 milliards de livres sterling de réseaux de transmission et de distribution d'électricité au Royaume-Uni pour l'exercice 2022/2023.

Zone d'investissement	Montant d'investissement (milliards de livres sterling)	Exercice fiscal
Transmission et distribution d'électricité	6.5	2022/2023
Infrastructure d'énergie renouvelable	2.3	2022/2023

Mise en œuvre de pratiques durables pour minimiser l'empreinte environnementale

L'entreprise a mis en œuvre de multiples initiatives de durabilité:

• Réduire les émissions de gaz SF6 par 50% d'ici 2030
• Augmentation de la flotte de véhicules électriques à 100% d'ici 2030
• Mise en œuvre des principes d'économie circulaire dans les projets d'infrastructure

Développer des solutions innovantes pour intégrer les technologies énergétiques à faible teneur en carbone

National Grid investit 1,8 milliard de livres sterling en technologies de réseau intelligent et solutions de stockage d'énergie pour soutenir l'intégration des énergies renouvelables.

Technologie	Investissement (milliards de livres sterling)	Objectif principal
Systèmes de stockage d'énergie	0.7	Stabilité de la grille
Technologies de grille intelligente	1.1	Intégration d'énergie renouvelable

National Grid plc (NGG) - PESTLE Analysis: Social factors

You're managing a utility that sits right at the intersection of public expectation and massive infrastructure change. The social license to operate is arguably your biggest non-market risk right now, especially when you're trying to push through projects that affect people's backyards or their daily energy use.

Public acceptance of new infrastructure, like high-voltage transmission lines, is a major hurdle for project timelines

Building out the high-voltage backbone needed for the energy transition is slow, and community pushback is a huge factor. In the UK, for example, the Eastern Green Link 1 (EGL1) project, which began construction in February 2025, is now anticipated to finish 16 months behind schedule in April 2029. This delay could trigger output delivery incentive penalties from Ofgem, potentially up to 10% of the project's £2bn ($2.57bn) expenditure. We see this struggle in the US too; in 2024, the US built only 888 miles of new 345 kV and 500 kV transmission lines combined, far short of the roughly 5,000 miles per year the Department of Energy suggests is needed to meet demand and maintain reliability. Still, National Grid plc continues to navigate this, with several major UK projects like Norwich to Tilbury and Grimsby to Walpole having further public consultations planned throughout 2025. These processes, while necessary, chew up critical time.

It's a balancing act: you need the wires, but the public needs assurance.

Growing consumer demand for electric vehicle (EV) charging and heat pump installation strains local distribution networks

The shift to clean power is great for emissions, but it puts immediate, localized stress on the distribution network assets that were never designed for this load profile. Studies evaluating the impact of heat pumps (HPs) and EVs on UK residential networks show that increased demand can push upper limits of typical transformer loading up by 20% to 40%. Heat pumps, in particular, are heavy hitters; one analysis showed they increase peak consumption by +14% and average consumption by +46% compared to EVs alone. If you look at the US side, projections for EV charging alone suggest that by 2035, 50% of feeders in some areas could be overloaded, requiring up to 25.4 GW of capacity upgrades by 2045. We must treat consumer adoption rates as hard constraints on network planning, not just growth targets.

Here's the quick math: More electrification means more immediate capital expenditure on local upgrades, or risk of localized failures.

Workforce skill gaps in smart grid and digitalization pose a risk to efficient project execution

The grid is becoming a digital ecosystem, but the people who run it often don't have the required cross-disciplinary skills. This is a genuine risk to project execution. A major issue is the aging workforce; the U.S. Department of Energy projects that over 25% of utility workers are eligible for retirement soon, meaning decades of operational know-how could walk out the door. This knowledge loss is happening just as digital tools become mission-critical. To be fair, the industry is aware: an EY survey found that 89% of energy professionals see skills gaps as the main barrier to accelerating digital tech adoption. On a positive note, industry leaders are responding, with 85% of employers globally planning to prioritize workforce upskilling through 2030. We need to ensure our internal training programs are capturing that veteran knowledge while rapidly building expertise in areas like AI and cybersecurity.

Increasing focus on Environmental, Social, and Governance (ESG) performance influences investor and public trust

ESG is no longer a side project; it's a core measure of operational credibility for investors and the public. National Grid plc has been recognized for its efforts, achieving Prime Status from ISS in April 2025 and holding an AAA ESG rating as of April 2025, signaling industry-leading risk management. However, the scrutiny is constant. As of September 15, 2025, the S&P Global ESG Score for National Grid plc was 44, and it was under review due to a potential controversy, showing how quickly external perception can shift. Transparency around hard data is key to maintaining trust; for instance, the limited assurance report for the year ended 31 March 2025 confirmed Scope 1 and 2 GHG emissions at 7,422 kilotonnes of CO2e. If onboarding takes 14+ days for a new ESG report review, investor confidence can waver.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - PESTLE Analysis: Technological factors

You're managing a grid that's rapidly evolving, dealing with more intermittent power from renewables and a massive increase in demand from electrification. Technology isn't just an add-on; it's the core engine for keeping the lights on reliably and affordably. Honestly, the pace of digital transformation dictates your capital deployment success right now.

Smart grid and advanced metering infrastructure (AMI) deployment

Deploying smart grid technology, especially Advanced Metering Infrastructure ($\text{AMI}$), is non-negotiable for managing the two-way flow of energy. $\text{NGG}$ is pushing this hard, particularly in its US regulated businesses. The Field Area Network ($\text{FAN}$) deployment, a key part of the $\text{AMI}$ rollout, was anticipated to finish in 2025.

In the US, $\text{NGG}$ is increasing capital spend on $\text{AMI}$ in its $\text{MECO}$ and $\text{NIMO}$ areas as part of its broader investment plan. On the distribution side in the UK, $\text{NGG}$ Electricity Distribution $\text{plc}$ is already using smart meter data to optimize its Low Voltage ($\text{LV}$) Monitoring Rollout, cutting the planned number of monitors from 15,500 down to 11,000 while keeping the same network visibility. That's a concrete efficiency gain right there.

Digitalization of grid operations and asset management

Digitalization is central to $\text{NGG}$'s strategy, as detailed in their June 2025 Digitalisation Action Plan Update. This isn't just about meters; it's about using data to run the existing assets better. They are implementing predictive maintenance strategies, which have already enhanced operational efficiency significantly.

To support this, $\text{NGG}$ is upgrading its core modeling tools. They are moving to a new integrated network model platform, $\text{GGMES 3.0}$. Furthermore, $\text{NGG}$ Partners committed $100 million in March 2025 to invest in $\text{AI}$ startups, like Amperon for energy forecasting, to help manage soaring demand and create a more dynamic grid. This focus on advanced analytics and data visualization is how you manage complexity.

Cybersecurity threats to critical national infrastructure

As digitalization deepens, so does the risk profile for critical national infrastructure. While the energy industry globally is estimated to see cybersecurity revenues hit US$10 billion by 2025 due to increased digitalization, $\text{NGG}$ must continuously scale its defense. The integration of $\text{AI}$ and the expansion of the network-including 17 Accelerated Strategic Transmission Investment ($\text{ASTI}$) projects in the UK-create more potential attack surfaces that require substantial, ongoing investment to secure the network against threats.

Energy storage solutions (batteries) are essential for grid balancing

Batteries are the shock absorbers for intermittent renewables, and $\text{NGG}$ is actively connecting massive projects. In August 2025, $\text{NGG}$ connected the UK's largest battery energy storage system ($\text{BESS}$) at Tilbury-the 300MW Thurrock Storage project with 600MWh capacity. This helps balance supply by instantly soaking up surplus clean electricity.

The overall UK market is exploding; operational battery storage capacity hit 6,872MW in 2025, a 509% jump since 2020. $\text{NGG}$'s five-year plan, involving a cumulative capital investment of around £60 billion through March 2029, is heavily weighted toward connecting this new generation and storage capacity.

Here's a quick look at the scale of technology investment and deployment:

Technology Area	Metric/Value	Context/Date
Total Capital Investment (5-Year Plan)	Around £60 billion	To March 2029
Capital Investment (H1 2025/26)	£5 billion	Half year ended September 30, 2025
UK Operational Battery Storage	6,872MW	As of 2025
UK Battery Storage Growth (Since 2020)	509%	Operational capacity increase by 2025
Largest BESS Connected (2025)	300MW / 600MWh	Thurrock Storage at Tilbury (August 2025)
AMI Meters Deployed (US)	Over 130,879 electric meters	As of April 2024 in Central/Eastern Divisions

What this estimate hides is the ongoing operational expenditure required to defend these digital assets; that spend is less visible but just as critical as the capex.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - PESTLE Analysis: Legal factors

You're navigating a regulatory landscape that is intensely scrutinized on both sides of the Atlantic, which means compliance isn't just a checkbox; it's a core operational risk. The legal environment for National Grid plc (NGG) is defined by strict oversight on market behavior, data handling, and infrastructure buildout.

Compliance with UK and US energy market competition and anti-trust laws is strictly monitored

Competition and anti-trust monitoring remains a constant legal factor for National Grid plc (NGG). While historical issues, such as the 2007 UK investigation under the Competition Act 1998 regarding gas meter exclusivity, show the regulator's willingness to act, the current focus is on ensuring fair play during massive investment periods. You have to be defintely careful that your procurement and contracting practices don't inadvertently create barriers to entry or abuse a dominant position in any of your regulated or non-regulated segments. It's a low-frequency, high-impact risk area.

Data privacy regulations (e.g., GDPR-like standards in the US) govern the use of smart meter data

The legal framework around customer data is tightening, especially with the UK Government aiming for energy suppliers to install standardized intelligent meters in domestic homes by the end of 2025. National Grid Electricity Distribution plc (NGED) has a formal Smart Meter Data Privacy Plan in place, which explicitly states consumption data will not be used for marketing or sold to third parties. This demonstrates an awareness of the need to align with GDPR-like principles, even as specific, comprehensive federal privacy legislation in the US remains fragmented. You need to ensure your data governance protocols meet the highest standard across all US jurisdictions where you operate, treating anonymized data with caution.

State and federal permitting processes for new transmission projects are complex and often lead to delays

Building the grid of the future is legally cumbersome, especially in the US. It still takes an average of four years to permit a transmission project, and in extreme cases, that timeline stretches over a decade. This complexity is causing real project stoppages; for instance, the New York Public Service Commission paused its 8 GW offshore wind transmission procurement in July 2025 due to federal permitting paralysis. The pace of construction is lagging the need; in 2024, only about 322 miles of high-voltage transmission lines were completed, far short of the implied need of roughly 5,000 miles per year to ensure reliability. The legal and political friction around siting and environmental reviews is a major constraint on capital deployment.

Regulatory bodies like Ofgem (UK) and state Public Utility Commissions (US) dictate allowed profit margins

Your allowed returns are set by regulators, which directly impacts your financing strategy and investment appetite. The UK's Ofgem is currently consulting on the RIIO-3 Draft Determinations for the 2026 to 2031 period, having already slashed over £8 billion from company bids. In the US, rate cases are settled state-by-state, often resulting in negotiated outcomes that differ significantly from initial requests. Here's a snapshot of the current regulatory profit environment:

Jurisdiction/Body	Regulatory Framework/Decision (as of 2025)	Key Financial Metric/Target
Ofgem (UK - NGET)	RIIO-3 Draft Determination (Consultation ending Aug 2025)	Proposed 6% equity return cap for private investors; NGG seeks 9-10% nominal returns.
NY Public Service Commission (US - NIMO)	Joint Proposal adopted August 2025 (Three-year rate plan)	Improved Return on Equity (RoE) of 9.5%.

The difference between what National Grid plc (NGG) proposes and what regulators allow is where the legal negotiation gets tough. For example, the NY PSC reduced National Grid's requested electric delivery revenue increase by over 67% in the first year of the new rate plan. That's the game.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - PESTLE Analysis: Environmental factors

You're looking at the environmental tightrope National Grid plc is walking: massive investment for a green future while managing the legacy footprint. The core issue is that meeting the UK's 2035 decarbonization target for the electricity system requires a grid expansion and reinforcement effort on a scale we haven't seen in generations. This isn't just about adding capacity; it's about fundamentally re-engineering the network to handle intermittent renewable power and massive new electrification loads.

Meeting the UK's 2035 decarbonization target for the electricity system requires rapid grid expansion and reinforcement.

The pressure to upgrade the network is intense, driven by the government's 2035 goal for a zero-carbon power system. National Grid expects UK electricity demand to jump by nearly 50% by 2035 just from shifts to electric vehicles and heating. To handle this, National Grid has submitted a massive RIIO-T3 business plan (2026-2031) to Ofgem, proposing up to £35 billion in investment for the UK Electricity Transmission business alone. Overall, the five-year capital framework to March 2029 earmarks approximately £51 billion for green infrastructure projects, part of a total group investment of £60 billion. This investment is crucial for connecting the required low-carbon generation.

Climate change necessitates increased capital spending on grid resilience against extreme weather events.

It's not just about connecting new power; it's about keeping the lights on when the weather turns nasty. Climate change means more frequent and severe weather events, forcing National Grid to spend more to harden its assets. This resilience spending is built into the overall capital plan, but specific figures show the focus. For instance, in the US, resilience investment was approximately $887 million planned for FY24 to FY28. In New York, the approved Climate Change Resilience Plan (CCRP) identified about $243 million in necessary resilience upgrades. You have to budget for the unexpected, even when you're already spending record amounts.

Here's a quick look at the scale of investment supporting this transition:

Investment Area	Timeframe/Period	Value/Metric
Total Group Capital Investment	Five years to March 2029	£60 billion
Green Infrastructure Investment (EU Taxonomy Aligned)	Five years to March 2029	£51 billion
UK Electricity Transmission RIIO-T3 Plan (Expansion/Resilience)	2026-2031	Up to £35 billion
FY2025 Group Capital Investment (Record)	Year ended March 31, 2025	£9,847 million
Scope 1 & 2 GHG Emissions	Year ended March 31, 2025	7,422 ktCO₂e

What this estimate hides is the ongoing operational cost of maintaining assets built for a different era.

Biodiversity net gain requirements in the UK add complexity and cost to new infrastructure projects.

The push to protect nature adds another layer of regulatory compliance for every pylon or substation you build. Since February 2024, most new developments in England must deliver a minimum 10% Biodiversity Net Gain (BNG). For National Grid Electricity Transmission, the commitment is a minimum of 10%, with a target of 15% BNG when building or extending assets. Honestly, this means more upfront ecological surveys and securing offsite habitat creation if you can't achieve the gain on your own land. The good news is that the requirement for Nationally Significant Infrastructure Projects (NSIPs) has been pushed back to May 2026, giving you a bit more planning runway than initially expected. Still, 100% of their construction projects are already committing to deliver 10% net gain or greater.

Managing methane leaks from legacy gas infrastructure remains a key environmental performance metric.

Even as you electrify, the existing gas network needs careful management, especially concerning methane, a potent greenhouse gas. While National Grid is selling off parts of its gas business, managing leaks on the remaining network is critical for Scope 1 emissions. For the year ended March 31, 2025, Scope 1 GHG emissions were reported at 4,467 ktCO₂e. To address this, the company noted increased spend on leak-prone pipe replacement, which rose by £66 million across gas distribution networks in the prior period. This spend is a direct operational cost tied to environmental performance and regulatory scrutiny.

Finance: draft 13-week cash view by Friday.