A major upgrade to Britain’s electricity network could deliver a more than fourfold economic return and create tens of thousands of jobs, a new study has found.
Consultancy Arup, working with Cambridge Econometrics, estimates that roughly £34bn of investment in the UK power grid over the next 15 years would unlock about £194bn of economic output by 2040 – a 4:1 return on public and private spending. The analysis models two pathways: a “supercharged” scenario with ambitious, sustained grid modernisation, and an “underpowered” scenario in which investment falls short of need.
Under the higher-investment scenario, the study says the grid programme would support an additional 92,000 jobs a year compared with the lower-investment pathway. The benefits are widely distributed across the economy: the services sector could expand by about £95bn and support some 68,000 jobs annually, while property could gain £33bn and construction £20bn.
Arup’s modelling suggests many of the roles supported would be high‑demand, higher‑paid occupations, with scope for boosting skills development in engineering, project delivery and digital systems.
Beyond headline economic gains, the report argues that modernising transmission and distribution infrastructure is pivotal to the UK’s energy transition. A strengthened grid would help integrate renewables, storage and flexible demand, reduce the nation’s dependence on unabated gas and shield homes and businesses from global fuel-price volatility, the authors say. That, in turn, would improve energy security and system resilience.
The study warns, however, that grid investment on its own is not enough. It calls for a “joined‑up, programmatic approach” that coordinates planning and delivery across generation, storage, transmission, distribution and demand‑side flexibility. Digitalisation, strategic supply‑chain development and better alignment of policy and finance are also identified as necessary to realise the full operational and economic benefits.
Arup and Cambridge Econometrics highlight the importance of early and meaningful community engagement to secure local buy‑in for projects, and say many of their recommendations have international relevance for countries pursuing net zero goals.
The UK has set ambitious targets for renewable generation and electrification of heat and transport, but networks regulators and operators have repeatedly warned that planning, consenting and grid reinforcement are lagging behind connection requests from developers. Achieving the “supercharged” scenario would likely require streamlined regulatory processes, coordinated investment signals and mobilisation of private capital alongside public funding.
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.”
Juergen Maier, chair, Great British Energy, stated: “Expanding electrification across UK homes, industry and businesses is essential to cutting bills, lowering emissions, and improving energy efficiency. At Great British Energy, our role is to unite public and private sectors to unlock investment. The Gridunlocked report by Arup helps to show what can be achieved by working in partnership, delivering significant investment for long-term grid security and energy efficiency opportunities.”
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