London, Jan 16, 2026, 09:09 GMT — Regular session
National Grid shares climbed 0.7% to 1,189 pence by 0853 GMT on Friday, having reached 1,191 pence earlier. The stock had closed Thursday at 1,181 pence and is trading close to its January 8 peak of 1,195.35 pence. Over the past year, the shares have gained roughly 25%.
This move is significant because National Grid finds itself caught in a tug-of-war: investors appreciate its steady, regulated cashflows, yet they quickly reprice the stock whenever interest-rate expectations change.
This week’s headlines have sharpened that trade. Britain is adding more wind power to the grid, driving new infrastructure projects. Yet, as costs rise and financing tightens, developers are scaling back on some ventures.
Data released Thursday showed the UK economy expanded 0.3% in November, surpassing expectations from a Reuters poll. Sterling jumped briefly, and short-dated gilt yields also rose. Stuart Morrison of the British Chambers of Commerce noted, “Firms are telling us they’re still cautious about investing and recruiting, meaning growth will stay limited for the foreseeable.” Despite the stronger data, investors remain nearly fully priced for two quarter-point Bank of England rate cuts this year, Reuters reported. Reuters
A government statement on Wednesday announced that its latest Contracts for Difference (CfD) auction — a subsidy scheme that guarantees power prices at a fixed “strike” level — secured 8.4 gigawatts of offshore wind capacity, claiming it as Europe’s largest. Projects from RWE and SSE were among those awarded contracts, with Energy Secretary Ed Miliband calling the auction “a historic win.” GOV.UK
National Grid sees the renewables expansion as a lengthy path for regulated investment, aiming for roughly £60 billion in total capital spending over the next five years. The company is set to release its full-year results on May 14, per its financial schedule.
On Thursday, the offshore sector faced a setback as Germany’s EnBW abandoned two UK projects after failing to secure CfD support, resulting in a 1.2 billion euro impairment. The company cited rising supply-chain costs, weaker power prices, and higher interest rates as key factors.
National Grid shareholders face a clear threat: if yields climb once more and regulators tighten allowed returns while the company ramps up spending, it could seriously strain the numbers behind their dividend-heavy, debt-reliant model.
Traders are eyeing the UK inflation report due Jan. 21 closely, looking for signs that rate-cut expectations still stand and if the sector will maintain its momentum.
