National Grid’s New Leadership Era: Zoë Yujnovich and the Energy Transition Challenge
43min read The appointment of Zoë Yujnovich as National Grid’s next CEO marks a pivotal shift for one of Europe’s most critical energy infrastructure companies. As the UK and US grapple with decarbonization targets, grid modernization, and evolving regulatory landscapes, Yujnovich’s arrival signals a strategic pivot toward leadership with deep private-sector experience in managing large-scale energy projects. This leadership transition comes at a critical juncture for national grid, which is navigating a £30 billion investment program in the UK alone through initiatives like The Great Grid Upgrade, while also balancing shareholder expectations and regulatory scrutiny.
Leadership Transition: A Seamless Handover?
John Pettigrew’s departure after nearly a decade as CEO leaves a significant void. Under his tenure, National Grid expanded its renewable energy portfolio, integrated smart grid technologies, and navigated post-Brexit regulatory shifts. His successor, Yujnovich, brings a contrasting yet complementary background: a decade at Shell and Rio Tinto, where she managed global operations, mergers, and regulatory challenges. Her appointment aims to blend private-sector agility with National Grid’s public infrastructure mandate.
The handover process is meticulously structured. Yujnovich will join the board as CEO Designate in September 2025, allowing a three-month transition period. This “soft launch” is critical, as National Grid’s capital-intensive projects—such as the £15 billion Upstate Upgrade in New York—rely on continuity in leadership.
Yujnovich’s Credentials: A Private-Sector Edge in a Regulated World
Yujnovich’s career is defined by her ability to execute complex projects in regulated environments. At Shell, she oversaw the integration of BG Group, a $50 billion merger that reshaped Shell’s global LNG operations. At Rio Tinto, she managed the Iron Ore Company of Canada through commodity price volatility. This experience positions her well to address National Grid’s dual challenges: delivering shareholder returns while complying with strict public service obligations.
Critically, her current role as a Non-Executive Director at Unilever adds a layer of governance expertise, which could strengthen National Grid’s board dynamics. However, her compensation package—£1.3 million base salary plus equity—has already drawn attention. Investors will scrutinize whether her incentives align with long-term value creation, particularly given National Grid’s history of balancing dividends (currently yielding ~4.5%) with capital expenditure needs.
Strategic Priorities: Betting on Grid Modernization
Yujnovich’s immediate focus will be accelerating the energy transition. National Grid’s Great Grid Upgrade aims to replace aging infrastructure and integrate renewable energy sources, targeting 65% of UK electricity from renewables by 2030. Similarly, the Upstate Upgrade in New York seeks to modernize grids to support solar and wind energy. These projects, with combined capital expenditure exceeding £45 billion, depend on regulatory approvals and cost recovery mechanisms.
Here, Yujnovich’s regulatory acumen could prove decisive. Her experience in navigating Shell’s environmental compliance and Shell’s post-Deepwater Horizon reforms may equip her to manage National Grid’s interactions with regulators like Ofgem and NYISO.
Risks and Reward: Can Yujnovich Deliver?
The appointment carries risks. National Grid’s share price has lagged peers like NextEra Energy (NEE) by ~12% over the past five years, partly due to concerns over regulatory returns and rising debt. Yujnovich’s private-sector background could push for operational efficiency, but investors will watch for signs of cost discipline without compromising safety or reliability.
Additionally, geopolitical risks—such as UK-US trade dynamics affecting energy projects—could impact cross-border investments. Yujnovich’s multinational experience might mitigate these risks, but execution remains key.
Conclusion: A Leadership Shift with Mixed Signals
Zoë Yujnovich’s appointment is a calculated gamble. Her track record in large-scale energy projects and regulatory environments positions her to lead National Grid through its most ambitious capital program yet. However, investors must weigh her strengths against the company’s operational and financial headwinds.
Key metrics to watch:
- Stock Performance: National Grid’s 5-year underperformance vs. peers (as shown in the visual above) suggests room for recovery if Yujnovich’s strategy gains traction.
- Dividend Sustainability: Maintaining a 4.5% yield while funding £45 billion in capital projects will test her ability to balance shareholder returns and reinvestment.
- Regulatory Outcomes: Success in securing cost-recovery approvals for The Great Grid Upgrade and Upstate Upgrade will determine project viability.
Yujnovich’s success hinges on translating private-sector agility into public infrastructure leadership. For investors, her tenure offers a chance to capitalize on grid modernization trends—if she can execute without sacrificing the dividend discipline that has been National Grid’s hallmark. The next 12–18 months will be pivotal in assessing whether this leadership shift propels the company from laggard to leader in the energy transition race.
