A £34bn investment in electricity grid infrastructure over the next 15 years would deliver a fourfold return to the UK economy, generating £194bn in socioeconomic value by 2040, a new report has found.
The study — Gridunlocked: unlocking the benefits of investing in the electricity grid — was conducted by Arup in collaboration with Cambridge Econometrics. It modelled two investment scenarios, described as “underpowered” and “supercharged”, to assess the long-term impact of sustained grid modernisation.
Under the more ambitious scenario, the services sector would see the largest gains, with projected growth of £95bn and support for 68,000 additional jobs each year. Property could expand by £33bn, while construction could grow by £20bn. Overall, the analysis suggests that 92,000 additional jobs could be supported annually if enhanced grid investment is maintained through to 2040.
Arup’s modelling indicates that benefits would extend beyond infrastructure and energy, with knock-on effects across agriculture, property, and construction. Many of the roles supported are expected to be high-demand, higher-skilled positions, contributing to workforce development.
The findings land against a backdrop of rising electricity demand. The UK’s Climate Change Committee has previously projected that electricity demand could double by 2050 as heat, transport, and industry electrify. Meanwhile, the National Grid Electricity System Operator has warned that grid constraints and connection backlogs risk delaying renewable energy projects and industrial electrification.
By accelerating transmission and distribution upgrades, the report argues, the UK could reduce its reliance on unabated gas generation. This would help shield households and businesses from global price volatility — a risk highlighted during the energy market shocks following Russia’s invasion of Ukraine — and strengthen domestic energy security.
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.”
The report stresses that capital spending alone will not deliver these gains. It calls for a coordinated, programmatic approach across generation, storage, transmission, distribution, and demand-side flexibility. Digitalisation, it adds, will be critical to enhancing grid stability and operational efficiency.
Juergen Maier, Chair of Great British Energy, said: “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.”
The study also highlights the importance of early community engagement, supply chain coordination, and alignment across policy, finance, and technical delivery to sustain progress. While focused on the UK, the authors note that the framework and recommendations are applicable internationally, particularly as economies pursue net zero targets.
