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National Grid selects contractors for substation projects

National Grid has announced contractors for £8bn substation work across England and Wales.

August 1, 2025 at 07:13 AM
blur National Grid names contractors for £8bn of substation work

The National Grid has selected contractors for major substation projects across England and Wales.

National Grid announces contractors for £8bn substation infrastructure

The National Grid has named its contractors for an ambitious £8bn substation development project throughout England and Wales. This initiative, part of the Electricity Transmission Partnership, aims to foster long-term partnerships with regional contractors. Selected partners will have exclusive rights for substation projects in their areas for five years, extending until March 2031. Notable regional partners include Balfour Beatty in the North East, Morgan Sindall in the North West, and several others throughout the country. An initial £1.3bn of work will be awarded soon, providing contractors with the opportunity to secure future projects effectively. The National Grid's president, Alice Delahunty, emphasized that this approach will help ensure investments in skills and infrastructure supporting Britain's transition to clean energy.

Key Takeaways

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£8bn allocated for substation infrastructure work
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Contractors have regional exclusivity until March 2031
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Initial £1.3bn of work to be awarded soon
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Selection of regional partners aims to enhance local investment
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National Grid seeks to boost workforce skills and innovation
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Partnership model may expand beyond substations in the future

"Our Electricity Transmission Partnership marks a bold shift in how we deliver vital electricity infrastructure."

This statement from Alice Delahunty highlights the strategic intent behind the new contracting model.

"By adopting a regional, long-term approach, we’re giving our supply chain the certainty to invest in people, skills and innovation."

Delahunty emphasizes the importance of this approach for supplier confidence and investment.

The National Grid's new strategy represents a significant shift in energy infrastructure development. By fostering regional partnerships, the organization not only aims to improve efficiency but also to build a more resilient power grid. This proactive measure might ease some of the concerns surrounding supply chain disruptions, particularly as the country pursues its ambitious clean energy goals. However, the reliance on specific contractors raises questions about competition and the long-term impact on pricing and service quality in the energy market.

Highlights

  • Investment in local contractors is crucial for a resilient energy future.
  • Offering regional exclusivity encourages long-term planning and collaboration.
  • This partnership marks a bold shift in energy infrastructure development.
  • We are building partnerships that drive innovation and skills.

Concerns about monopolistic practices and pricing

The regional exclusivity for contractors may limit competition in the energy sector, potentially leading to higher costs for consumers and less innovation over time.

As the energy landscape evolves, this strategy may set a new standard for infrastructure projects in the UK.

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