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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
Market opportunity
Regulated Power
Outlook The UK’s drive to decarbonise power, heat and transport as well as significant investment in large data centres is raising electricity demand and requiring an estimated £60bn of cumulative grid investments by 2030. Ofgem’s regulatory frameworks (RIIO-2) provide predictable returns to finance major upgrades like new substations and higher-capacity cables for electric vehicles and heat pumps. Internationally, grid spending hit a record $310bn in 2023 (up 5% year on year), yet far more is needed. For example, the EU estimates ~$636bn (€584bn) in grid investment is required to meet its 2030 clean energy targets. This surge in expenditure, underpinned by policy support and regulated asset models, positions transmission and distribution assets as an expanding market for services companies.
International outlook: North America and Australia
North America : Transmission infrastructure investment is gaining pace in Canada as provinces expand grid capacity to support electrification and renewable integration. Utilities such as Hydro-Québec, BC Hydro and Ontario’s IESO are progressing major transmission projects, including Hydro-Québec’s $100bn 2035 plan and Ontario’s regional build-outs. Federal support via the Smart Renewables and Electrification Pathways (SREP) program and Canada Infrastructure Bank financing is enabling project delivery. In the United States, new federal rules (FERC Order 1920) require long-term transmission planning, with regional grid operators now preparing implementation plans. Forecasts point to a potential 60% increase in transmission capacity by 2035 to meet demand from data centres, electrification and clean energy. These factors create long‑term opportunities across engineering, construction and grid integration. Australia is undertaking a wide-reaching grid transformation to enable its net‑zero transition. The Australian Energy Market Operator’s latest integrated system plan calls for ~4,600km of new transmission by 2030 to connect the renewables that will replace retiring coal plants. In total about 10,000km of new lines are needed by 2050, requiring tens of billions in investment. The federal Rewiring the Nation program (A$20bn) is helping finance priority projects, ensuring the necessary network infrastructure is delivered on time. These international markets underscore the strong, stable outlook for regulated grid investments – characterised by rising capital deployment and reliable returns under supportive regulatory frameworks.
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