Invest in the grid to unlock economic growth, jobs and energy security for the UK

A £34bn investment in the grid over the next 15 years would unlock £194bn for the economy, a 4:1 return on investment, says a new study from global engineering consultancy Arup.

By modelling two investment scenarios, underpowered and supercharged, the Arup study also concludes that an additional 92,000 extra jobs could be supported annually, if ambitious investment in the electricity grid is sustained to 2040.

Arup’s modelling also shows that multiple sectors across the economy would benefit from investment in the grid, ranging from agriculture, property, through to construction. The services sector could grow by £95bn, with 68,000 jobs supported each year, while the property sector could grow by £33bn, with construction growing by £20bn. The jobs supported could be high-demand, high-paying roles, with the potential to boost skills development, Arup says.

The macroeconomic study, Gridunlocked: Unlocking the benefits of investing in the electricity grid, conducted in collaboration with Cambridge Econometrics, highlights that the benefits of investing in the grid extends beyond economics. Maintaining ‘supercharged’ investment in grid modernisation will also ensure that the UK’s electricity network can fully support the energy transition and keep pace with rising demand.

Grid modernisation also reduces the UK’s reliance on unabated gas. By shielding businesses and consumers from global price volatility, a better and more efficient grid strengthens energy security and supports the development of a more diverse, decentralised and resilient system.

The Arup report also 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 would enable greater operational and economic synergies, with digitalisation further enhancing grid flexibility and stability.

Strategic coordination across the critical interfaces of policy, finance, technical design, supply chains and project delivery is essential for sustaining momentum of a whole-system energy transition and maximising its socioeconomic benefits. The Gridunlocked report also highlights the importance of early and meaningful community engagement to ensure that local voices also 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, said: “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.”

Whilst the focus of this study has been the UK, many of the observations and recommendations of the Gridunlocked report are internationally applicable and if applied will support the global energy transition to a net zero world.

Click here to download Gridunlocked: Unlocking the benefits of investing in the electricity grid.

Arup's Juliet Mian, Stephen Cooke and Sally Prickett are all set to speak at the upcoming edition of Innovation Zero World.