An investment of £34bn in the grid over the next 15 years would unlock £194bn for the wider economy, according to a new study from Arup.
The macroeconomic study, Gridunlocked - unlocking the benefits of investing in the electricity grid, was conducted in collaboration with Cambridge Econometrics.
By modelling two investment scenarios, underpowered and supercharged, the study concludes that an additional 92,000 extra jobs could be supported in any given year, if ambitious investment in the electricity grid is sustained to 2040.
Arup’s modelling also showed that many sectors across the economy would benefit from investment in the grid, from construction and property through to agriculture.
The services sector could grow by £95bn, with 68,000 jobs supported each year, while the property sector could grow by £33bn, and construction by £20bn, according to the report.
Joined-up programmatic approach
However, the report emphasises that grid investment alone cannot unlock these benefits. It calls for a more joined-up programmatic approach to planning and delivery across generation, storage, transmission, distribution and demand-side flexibility.
Such coordination, the report says, would enable greater operational and economic synergies, with digitalisation further enhancing grid flexibility and stability.
The report also highlights the importance of early and meaningful community engagement to ensure that local voices play an active role in shaping the UK’s energy future.
Mark Neller, energy leader for Arup in the UK, India, Middle East and Africa, commented: “Our research shows that ambitious grid investment is a catalyst for economic growth, job creation, and energy security. The choices we make today will determine the pace and success of the UK’s energy transition.
“Unlocking the benefits depends as much on how we deliver as on what we invest. By investing wisely, designing boldly, and delivering with purpose, we can unlock a more affordable, secure and clean energy system for all.”
