National Grid profits jump to £4.6bn amid green energy delays - The Guardian
National Grid profits jump to £4.6bn amid green energy delays | National Grid | The Guardian
National Grid has reported a jump in annual profits to almost £4.6bn amid growing concern that it is not connecting renewable energy projects fast enough to meet the UK’s climate targets.
The FTSE 100 monopoly said its underlying operating profits climbed by 15% to £4.58bn for the financial year ending in March compared with the 12 months before.
This was driven by a surge in profits from its electricity distribution business which climbed by 39% from the previous year to £1.2bn for the year to the end of March.
National Grid is under pressure from developers to overhaul its approach to connecting new renewable energy projects to the grid as it emerged that many will be forced to wait more than a decade for a connection.
The UK plans to run its grid entirely on clean electricity by 2035 but many renewable energy projects have been told they will need to wait until the late 2030s to provide clean power to the grid.
The National Grid chief executive, John Pettigrew, said “there has never been a more exciting time to be at the heart of the energy industry”.
“The opportunities for future growth are considerable, and we will continue to work closely with governments and regulators to drive the energy transition forward, achieving positive change for our communities and consumers, and a clean, fair and affordable energy future for all,” Pettigrew added.
National Grid’s profits increase follows an 11% rise in operating profits to nearly £4bn the year before, helped in part by a leap in electricity market prices that increased revenues from subsea cables connecting with Europe.
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The company’s steadily rising profits helped Pettigrew land a £6.5m payday for the year to the end of March 2022. The pay packet attracted criticism from campaign groups, which pointed out that his pay was up by more than £1m from the year before as UK households struggled to pay their bills.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”