The constraint posed by the grid masks a much larger opportunity. With the right level of investment and coordination, grid modernisation could become one of the biggest economic catalysts of the next two decades. Not only would there be significant national economic uplift, but also new career pathways, regional regeneration and a more resilient energy system for households and businesses.

These dynamics are all explored in Arup’s new Gridunlocked macroeconomic study, developed in collaboration with Cambridge Econometrics, which estimates that an additional £34bn invested in the grid over the next 15 years could unlock £194bn in additional gross value added (GVA) for the economy by 2040.

The economic opportunity 
The scale of potential value unlocked through ambitious investment becomes clear when alternative investment scenarios are compared. A supercharged pathway, which accelerates investment in line with the UK’s net zero trajectory, will deliver a 4:1 on investment by 2040.The benefits are not confined to the energy system itself, most economic uplift would flow into the services economy, particularly technology, finance and education, together contributing around £95bn in additional GVA.

There are also significant knock-on-effects elsewhere, such as increased demand for property and development activity, which would add a further £33bn GVA, and construction activity adding £20bn GVA. The electricity sector itself would see a similar uplift, and growth is spread more broadly across manufacturing, agriculture and water. Taken together, the message is straightforward – sustained investment in the grid acts as a foundation for wider, long-term economic growth, rather than representing an isolated infrastructure cost.

The cost of inaction is already visible. In 2024 alone, £1.3bn of renewable energy was curtailed because the network was unable to absorb available clean power. At the same time, the UK’s dependence on imported energy rose to 43.8%, increasing exposure to rising price volatility and geopolitical shocks as seen with the recent conflict between the US and Iran. These indicators paint a stark picture of the cost of inaction. Without sufficient grid capacity, the UK risks constraining domestic generation, slowing down electrification and undermining long-term productivity.

Unlocking new jobs
Grid investment is also closely tied to employment. Under the more ambitious, supercharged pathway, the UK could also support an average of 92,000 additional jobs each year, with 68,000 of those being in service sectors. The construction sector could also gain around 14,000 jobs, with property gaining 6,000 annually, as well as thousands more in industry, manufacturing, power and agriculture.

These are roles that will define the next phase of the transition, including electricians, offshore technicians and energy specialists. Many are highly skilled and aligned with the UK government’s Clean Energy Jobs Plan, representing long-term career opportunities as opposed to short-term project surges.

Without sufficient grid capacity, the UK risks constraining domestic generation, slowing down electrification and undermining long-term productivity.
 

Why delivery matters
Investment alone will not unlock the full benefits outlined in the study. The UK needs a cohesive, programmatic strategy for planning and implementing projects across generation, storage, transmission, distribution and demand side flexibility. This type of coordination can lower overall system costs and enhance reliability by leveraging greater operational and economic synergies.

That being said, delivering comprehensive system transformation involves complex interdependencies. Policy, finance, technical design, supply chains, environmental and community considerations all interact with each other and the UK will need a delivery model capable of working across these interfaces rather than through siloed projects. Without proper alignment, the UK could face slower implementation, increased costs and missed opportunities.

There are positive signs, as seen with the National Grid’s Great Grid Partnership, which demonstrates a programmatic approach by using standardised design and modern methods of construction to reduce costs and accelerate delivery. However, the complexity of the challenge means this kind of coordinated delivery needs to become more widespread. It should extend across consenting, environmental assessment, supply chain planning and community engagement, which is crucial. Early, transparent engagement that builds understanding and trust can shorten consenting times and improve outcomes. Communities will be essential partners in this transition and treating them as such will be critical to delivering at the scale and pace required.

The evidence is clear that if we invest wisely, design boldly and deliver with purpose, the electricity grid can serve as the foundation for a more secure, more affordable and cleaner energy future. The next few years will be critical, and the choices we make now – regarding coordination, ambition and delivery – will shape whether the UK achieves the full economic and social benefits of electrification.  

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘Why changing the UK’s voltage limit matters’. Without the managed reform of voltage standards across distribution networks, the UK’s reform of its power grid, which is essential to accommodate more low-carbon generation and other low-carbon technologies, faces unavoidable technical barriers, says Mark Dunk, Head of Engineering at the UK Energy Networks Association.
• ‘Powering the future: the need for smarter grid connections for EV charging’. Find out why the UK should consider stations with batteries and on-site power generation at scale for rolling out electric vehicle charging.