From the Highlands to the Gridlines - Why Scotland Needs Faster Energy Links South

28th October 2025

Several recent announcements and plans give a clear picture of how much is being committed to the UK's electricity grid infrastructure:

The regulator Ofgem has provisionally approved around £24 billion of investment over the five-year period 2026-31 in energy networks (both electricity and gas). Of that, approximately £8.9 billion is earmarked for high-voltage electricity transmission networks right away, with a further £1.3 billion of ‘use-it or lose-it' funding available.

Major network owners are also submitting large investment plans
For example, National Grid has outlined up to £35 billion of investment in its electricity transmission business over the five years to March 2031.

Private sector and co-financing: For example, the National Wealth Fund committed £600 million (as part of a larger £1.35 billion package) to support grid upgrades by ScottishPower.

Government policy and target framework
The UK Government, through Department for Energy Security and Net Zero, announced a package to "speed up connections and increase grid capacity" and said it expects to bring forward £90 billion of investment over the next decade in infrastructure related to the grid and energy transition.

Connection reform
The Government also announced that grid connection delays will be a priority, and reforms aim to unlock "billions of primarily private investment" into clean energy infrastructure.

We are talking tens of billions of pounds of investment committed or planned for the electricity grid in the UK over the next 5-10 years.

Is that investment enough?

Here the answer is: probably not fully, or at least there are significant caveats and risks. The investment is very large and in many ways unprecedented — but the scale of the challenge is also huge. Here are the key considerations:

Scale of the challenge

The electricity grid needs to change fundamentally: more renewable generation, more transmission from remote areas (e.g., offshore wind, Scottish Highlands) into demand centres; more storage and flexibility; more transmission capacity.

For example, one report suggests the UK needs about £60 billion of investment by 2030 in the electricity grid alone to support the pathway to a clean power system.

Another modelling piece suggests there is a shortfall: UK may need £48 billion more investment in wind and solar (which depend on grid upgrades) to fully decarbonise the system by 2030.

Proactive Investors

The connection backlog is a major issue: delays in connecting new generation to the grid create bottlenecks and undermine renewable rollout. Without grid infrastructure upgrades, generation capacity can’t be fully utilised.

Risks and bottlenecks

Timing is critical: Investment needs to happen rapidly. Delays in network upgrades mean renewable generation could be stranded or constrained.

Supply chain and planning: Infrastructure works (cables, substations, overhead lines) have lead-times, regulatory/planning hurdles, and supply-chain risks. For example, Ofgem said the investment involves “the biggest expansion of the electricity grid since the 1960s”.

Funding and cost recovery: Much of this investment will ultimately be paid for via network charges on consumers (bills) or via taxpayer support. For example, Ofgem estimates that the network investments could add around £74 per household per year on electricity network charges by 2031.
Financial Times

Regional and generation-source issues: Areas with high new renewable potential (remote wind, offshore) may be more challenged due to the need for long transmission links. If grid upgrades lag, generation projects may be delayed or cancelled.

Flexibility, storage and future demand
As electrification (e.g., EVs, heat pumps) increases demand, grid infrastructure not only needs capacity for supply generation but flexibility (storage, demand response) which adds further investment layers.

So, is it “enough”?

Given the figures, the UK is making very significant commitments and plans which are in the right direction. But the question is whether they fully match the scale and urgency of the underlying challenge. My judgement:

The planned announced investment is necessary and represents major progress.

But it may not be sufficient to guarantee timely delivery of the grid infrastructure needed by 2030 / 2035 unless everything goes well (planning, supply chain, execution) and unless additional investment beyond current plans is secured.

There remains a gap (both in investment and in delivery risk) between what is needed (for full decarbonisation, rapid connection of renewables, major grid expansion) and what is currently committed.

For policy-makers and industry
The large investment numbers are reassuring, but monitoring of delivery (time, cost, outcomes) is crucial. Delays or cost overruns could undermine the whole energy transition timetable.

For consumers
Some of this investment cost may come via bills (as Ofgem has flagged). On the other hand, if grid upgrades are delayed, costs may be higher in future (e.g., generation constraint costs, renewables curtailed).

For regions - renewable developers
The grid bottleneck remains a critical risk. Developers should factor in potential delays or additional costs due to grid connection issues.

For investors
There are opportunities (in grid infrastructure upgrades, transmission, storage, supply chain) but also risks (regulatory, planning, cost/control).

For meeting climate/energy goals: Upgrading the grid is non-negotiable. Without a functioning grid that can handle large volumes of renewables and higher demand, decarbonisation and energy security goals are at risk.

Regional Breakdown - Where the Grid Needs the Most Investment

Scotland

Scotland is generating far more renewable electricity than it consumes mainly from onshore and offshore wind but transmission capacity to move that power south is a key bottleneck.

National Grid ESO data show Scotland often exports over 30-40% of its electricity, but grid constraints cause renewable curtailment (wind farms being paid to switch off).

Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework earmarks around £10 billion for new north–south transmission lines to link Scottish wind to English demand by 2030.

Key projects include the Eastern Green Links 1 & 2 subsea cables (Scotland to England), each at around £2 billion, and the Western HVDC link.

The Scottish Government has said that while this investment is welcome, “grid delivery must match renewable potential” — meaning, without faster planning and build-out, generation expansion in the Highlands and Islands could stall.

England

England’s challenge is less about generation potential and more about capacity to absorb and distribute new power.

The southeast (London, Kent, Sussex) faces supply bottlenecks; the midlands and north require reinforcement to handle industrial electrification.

Ofgem’s plans include roughly £7–9 billion for reinforcement in the Midlands and North of England by 2031, but some local networks are still queuing thousands of projects for connection.

Connection reforms announced in 2024–25 aim to prioritise “shovel-ready” green projects and clear a queue of over 600 GW of generation waiting to connect nationally.

Wales

Wales is expected to see significant offshore and floating wind development in the Celtic Sea, but it currently has limited grid infrastructure.

National Grid has proposed £1–1.5 billion of upgrades to support new capacity, but Welsh ministers warn that timelines (post-2030) could delay investment and jobs.

Northern Ireland

Operates a separate grid, but connection to Ireland’s single electricity market means upgrades there also affect the UK’s total system capacity.

What It Means

Scotland needs faster transmission build-out to move its renewable surplus.

England’s grid needs reinforcement to distribute and balance that power.

Wales risks falling behind without earlier connection work.

Across all regions, the system needs at least £60–70 billion of further targeted investment by 2035 to meet clean-power and net-zero commitments.