National Grid has since announced a heavy impairment charge of £303 million ($403 million) for financial year 2024/25. This charge is mostly due to uncertainty around renewable energy policies in the United States. The company’s difficulties stem from RWE’s announcement to cease work on its US projects in April 2025, a decision attributed to changes instigated by the Trump administration’s energy policies. Given this turf war between the feds and the states, alarm bells were rung over the fate of offshore wind generation in the northeastern US.
This impairment is testimony to the damage that’s being done by President Trump’s abrupt and unnecessary decision. In short, in January 2025, he suspended new federal leases for offshore wind energy projects. The suspension caused major disruptions to the renewable energy industry. Recently, for instance, Community Offshore Wind (COSW) — a joint venture — announced it would stop all development work, triggering a freezing of activity on many projects.
Sadly, National Grid is now left to contend with an impairment charge. Additionally, the company is taking on £57 million in exceptional transaction and separation costs as a result of its proposed disposal of National Grid Renewables. The firm’s additional problem is that it has incurred £15 million of commodity remeasurement losses on top. For National Grid, such challenges are par for the course. Further out, they anticipate robust operational performance, with underlying earnings per share (EPS) growth CAGR of 6% to 8% commencing from the 2024/25 equivalent.
National Grid’s regulated, rate-of-return assets are projected to grow to almost £100 billion by 2025. That growth is underpinned by a long-term capital plan of around £60 billion out to 2024/25 to 2028/29. The company has promised to spend this much on its energy network and other energy related ventures. They’ll be looking at opportunities on both sides of the Atlantic in the five years leading up to March 2029.
This was echoed by National Grid Chief Executive John Pettigrew, who praised the firm’s record to date and plans for the future, saying,
“We’ve made significant progress in the first year of our five-year financial framework, with record capital investment of almost £10bn, 20% higher than 2024, helping to drive regulated asset growth of around 10% this year. Strong performance across all areas of the business underpins our plans to successfully invest around £60bn over five years. At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model. We remain focused on delivering secure, affordable and clean energy to our customers and communities, and providing long-term value and returns for our shareholders.”
As National Grid navigates these challenges, it remains committed to enhancing its position in the renewable energy sector while adapting to evolving policy landscapes. The company’s ambitious, forward-looking investments and commitment to putting people first will be key in overcoming the recent pro-industry policy tide. They are crucial for ensuring we have a firm march forward toward clean energy practices.