A study by Arup reveals that “billions in socioeconomic benefits” would be created if major investment in electricity grid modernisation is sustained to 2040.

An investment of £34bn in the grid over the next 15 years would unlock £194bn for the economy, a 4:1 return on investment, according to the study. By modelling two investment scenarios, ‘underpowered’ and ‘supercharged’, the study also concludes that an additional 92,000 extra jobs could be supported annually, if 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, 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, and construction by £20bn.

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

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

But 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 would enable greater operational and economic synergies, with digitalisation further enhancing grid flexibility and stability.

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.”

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

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