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Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
National Grid (LSE: NG.)
- Data Centre electricity demand is forecast to double in four years, and electricity grids are one of the major bottlenecks of the energy transition. Meeting growing demand will require vast investments..
- In December, National Grid submitted plans to invest up to £35bn in Britain’s electricity network over a five year period from April 2026. The plan would help develop and deliver major network reinforcement and expansion projects and the upgrade of around 3,500km of existing overhead lines.
- We will see higher EPS growth in the long run from the company’s ambitious capital expenditure.
- A significant portion of the growth will stem from alleviating constraints in the domestic grid. Capital expenditures on the high-voltage transmission network are expected to more than triple, driving a 10% annual increase in the asset base between 2025 and 2029.
- Since 2021, National Grid has reshaped its portfolio to focus on electricity. CEO John Pettigrew expects the UK economy to be increasingly dependent on electricity with the growth of data centres and AI, as well as the higher domestic uptake of things like electric vehicles and heat pumps.
