Ofgem’s £28bn Grid Upgrade & Great British Energy: What It Means for UK Businesses

How the UK Grid Upgrade and Great British Energy Plan Got Here

The UK’s electricity networks were not designed for mass electrification or large-scale renewables. Under RIIO-2, Ofgem tightened network returns but still enabled major offshore wind connections.

At the same time, government climate targets became more ambitious. A 2030 clean power goal, rapid offshore wind growth and rising electricity demand exposed serious grid constraints.

Long connection queues, delayed projects and rising curtailment costs made it clear that incremental upgrades were not enough. RIIO-3 and the creation of the National Energy System Operator reflect this shift towards anticipatory, whole-system planning.

What’s Changed: RIIO-3 and Great British Energy Explained

Ofgem’s final RIIO-3 decision allows around £28 billion of initial spending between 2026 and 2031. This includes maintaining gas networks and delivering over 80 major electricity transmission projects.

Network charges are expected to rise, adding around £108 per household by 2031. Ofgem argues this reduces long-term exposure to volatile fossil fuel prices and supports cheaper domestic renewables.

Alongside this, Great British Energy plans to deliver at least 15 GW of clean generation and storage by 2030. Its focus on offshore wind, onshore renewables and community energy marks a more active public role in energy markets.

What the UK Grid Upgrade and Great British Energy Mean for the Future

Network investment is expected to rise towards £90 billion by 2031 as more projects are approved. This underpins electrification of heat, transport and industry at scale.

Great British Energy aims to crowd in around £15 billion of private capital, support local projects and recycle profits into further clean energy capacity.

Together, these plans point to faster renewable build-out, stronger grid resilience and growing opportunities for local and shared ownership energy models. Cost control will remain a political priority, but the direction of travel is set.

Impact of the UK Grid Upgrade and Great British Energy on Businesses

For businesses, higher network charges are likely in the short term. These costs will flow through electricity bills.

However, improved grid capacity should ease connection delays and support electrified operations. Energy-intensive sectors, data centres and EV infrastructure benefit from stronger resilience.

Construction, engineering and supply-chain firms face a major pipeline of work. Meanwhile, corporate PPAs, on-site renewables and community energy partnerships become more attractive as hedges against long-term price risk.

What UK Businesses Can Do Now

You don’t need to wait until 2030 to act. Practical steps include:

• Reviewing energy cost exposure and future network charge impacts

• Stress-testing electrification plans against grid availability

• Exploring PPAs, on-site generation and storage options

• Engaging early on grid connections and local energy schemes

• Embedding these changes into your net-zero roadmap

Our SBS Compliance and SBS Net-Zero Program can help translate policy shifts into clear business decisions.

Final Thoughts on the UK Grid Upgrade and Great British Energy

The UK’s £28bn grid upgrade and Great British Energy’s five-year plan signal a decisive shift. Energy will become cleaner, more electric and more locally integrated.

Yes, costs rise in the short term. But businesses that plan early can turn this transition into a competitive advantage.

If you want to understand what this means for your organisation, our SBS Academy and SBS Community are here to support you.