National Grid operates the transmission system in the UK and parts of the US. In both markets, the growth of renewables is having a greater impact on the grids.
But National Grid believes it creates more opportunities than problems. "National Grid is at the heart of decarbonisation in both the UK and US.
The strong ongoing growth in large-scale renewables is likely to generate further opportunities for incremental investment," National Grid’s report said.
"The long-term contracted nature or regulatory underpinning makes them well suited to the risk/reward profile of our portfolio. They leverage many of our core capabilities in engineering, project development, asset management and financing.
"We are therefore actively engaged in the renewables space, which is creating new opportunities for the business. The economics for solar and wind generation are becoming increasingly attractive, and the ongoing significant growth in large-scale renewables is set to continue into the long-term," it added.
In the UK, National Grid is currently involved in the construction of three interconnectors between the UK and Belgium, France and Norway.
A fourth, between the UK and Denmark, is expected to reach a financial investment decision this summer, National Grid said.
In the US, meanwhile, National Grid has developed energy storage projects, including a project in Long Island, New York, comprising two 5MW lithium-ion battery systems.
National Grid’s capital investment for the year ending 31 March was £4.25 billion, a 10% increase year-on-year.
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