National Grid Secures Washington Backing for DREAM Transmission Upgrade
Published on 09/28/2026 at 14:11 | Editorial boerse-global.de
National Grid has won support from the US Department of Energy for a transmission modernization program known as DREAM, handing the British network operator a fresh funding channel as it presses ahead with a multi-billion-pound investment cycle on both sides of the Atlantic.
The project — formally the Dynamic Rating Enhancement Advancements & Modernization initiative — relies on advanced transmission technologies designed to lift grid reliability and system efficiency while squeezing more capacity out of existing infrastructure. National Grid did not disclose the size of the award.
Word of the US backing landed alongside a burst of operational activity in the company's home market, where its distribution arm unveiled a record flexibility procurement round on 18 September. More than 800 zones are up for tender, representing demand of over 2.8 terawatt hours and a market value of as much as GBP 4.6 million. Contracts are due to be signed in January 2027, with delivery running from April 2027 through March 2028.
Two firsts accompany the exercise: a new local voltage management service, and the largest high-voltage flexibility tender the business has ever run, spanning 99 zones on its own. The mechanism lets National Grid ease network bottlenecks through flexible demand and generation rather than committing to costly physical reinforcement.
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To push that decentralized balancing strategy further, the operator has set up an industry-wide working group chaired by Cathy McClay, managing director of distribution network operations. The panel responds to innovation requirements set by British regulator Ofgem and a sector task force.
Aberthaw Consultations and Hinkley Milestone
Construction and consultation work is advancing in parallel. National Grid has invited residents to information sessions on a new substation at Aberthaw, starting 6 October, as part of a five-year, GBP 3.2 billion program for the Welsh electricity network.
At the Hinkley Connection project, the company closed out a central construction phase in the Mendip Hills, completing restoration work along an 8.5-kilometer underground cable route. Crews also dismantled 35 overhead line pylons to reduce the visual impact on the landscape. Such undergrounding and upgrade schemes underline the engineering intensity required to hook up new energy sources — heavy capital outlays for utilities, but the kind of spending that builds long-term, predictable earnings in regulated networks.
Rate Pressure Weighs on the Shares
None of that has shielded the stock from a tougher macro backdrop. National Grid shares changed hands at EUR 13.29, up 0.2% on the day, yet remain roughly 18% below their 52-week high of EUR 16.20. In Friday trading the stock closed at EUR 13.15, a decline of 0.1%, extending a 30-day loss to 3.8%.
The drag comes from bond markets. Rising yields on UK gilts and US Treasuries have made fixed-income instruments more competitive against traditional dividend payers, pressuring the wider infrastructure sector as defensive capital rotates toward debt. Reuters reported that grid operators came under strain from the shifting rate environment.
Analysts, by contrast, are leaning on the company's expansion plans. Bernstein Research resumed coverage of National Grid on 15 September with an Outperform rating and a price target of 1,310 pence, citing growth in the regulated network business and the long-term opportunities created by the energy transition. Whether the US funding and the October stakeholder consultations translate into fresh momentum for the valuation will depend in part on where bond yields head next.
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National Grid Stock: New Analysis - 28 September
Fresh National Grid information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
