SP Energy Networks selects 19 partners for record £5.4bn grid upgrade
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SP Energy Networks has taken a significant step towards modernising its electricity grid infrastructure in Scotland by announcing the selection of 19 businesses as preferred partners for a record £5.4bn supply chain contract programme.
This initiative marks the largest rewiring effort of the grid since its installation, designed to meet the escalating demand for electricity and to facilitate growth across various sectors. It is akin to National Grid’s Great Grid Upgrade in England and Wales and SSEN Transmission’s Pathway to 2030 in northern Scotland.
ScottishPower, the parent company of SP Energy Networks, stated that this major investment will create approximately 1,000 new jobs directly, with the potential to generate tens of thousands more throughout the supply chain.
Notably, 17 of the 19 selected contractors are based in the UK and Ireland, reflecting a commitment to local businesses. Among those chosen are I&H Brown, a family-run civil engineering firm situated in Scotland, and RJ McLeod, a contractor from Glasgow scheduled to assist in the delivery of new and upgraded substations.
The 19 partners are:
- Adman
- AmcoGiffen
- Balfour Beatty
- Cobra
- Farrans
- GE Vernova
- George Leslie
- I&H Brown
- Keltbray
- Kirby
- Linxon
- Luddon Construction
- Morgan Sindall
- Morrison Energy Services
- Painhas Energy
- PLPC
- RJ McLeod
- Siemens Energy
- Wood
The strategic partnership, which has an initial term of five years with the option for a further five-year extension, aims to provide the selected businesses with the stability to invest in their workforce, equipment, technology and services. This long-term agreement is intended to bolster the supply chain significantly.
The investment framework under this agreement includes up to £3bn allocated for new overhead lines, alongside £2.4bn designated for new and upgraded substations, covering design, engineering, construction and electrical works.
This strategic move aligns with national energy growth plans, as SP Energy Networks operates a vast transmission network encompassing over 4,500 km of overhead electricity lines, 600 km of underground cables and 150 substations, essential for facilitating high voltage power across the region.
Additionally, SP Energy Networks oversees undersea high voltage cables and has recently received approval to advance a new underwater superhighway between Scotland and England off the east coast of Britain, Eastern Green Link 1, which is being delivered in partnership with National Grid Electricity Transmission. Ofgem approved a £2bn funding package for the subsea and underground 196km cable which will stretch from Torness, East Lothian to Hawthorn Pit, County Durham.
As part of its ongoing commitment to enhancing the electricity grid, SP Energy Networks is preparing to submit its business plan for the regulatory period spanning 2026 to 2031 to Ofgem, highlighting a sustained focus on electricity networks, reinforced by ScottishPower’s decision to double its investment in the UK from £12bn to £24bn by 2028, with a significant proportion earmarked for electricity network improvements.
SP Energy Networks CEO Nicola Connelly said: “We’re delivering the biggest overhaul of the electricity grid ever seen to unlock growth and free up network capacity for new homes, businesses and clean energy projects.
“These strategic partnerships will give suppliers the confidence to invest in themselves, growing their workforce, opening new offices across the country and creating even greater opportunities for the UK
“This is great news for the UK and Scottish supply chains, with every pound spent directly benefiting central southern Scotland and its infrastructure for decades to come.”
The opportunity to join the frameworks was advertised early in 2024, with the details of how the Lots were to be organised outlined below.
Substation Works Framework
Lot 1 – Substation civil enabling works – £700M
Works include early contractor involvement, supporting SP Transmission with preparation of necessary documentation, review and discharge of planning conditions, engineering survey work, environmental survey work and mitigation measures, application of temporary and permanent licences from regulatory bodies, civil and geotechnical engineering and design (with a specific focus on access road and platform design inclusive of drainage), site establishment, construction of permanent security fencing.
Lot 2 – Substation construction works – £750M
Works include early contractor involvement, supporting SP Transmission with preparation of necessary documentation, review and discharge of planning conditions, engineering survey work, environmental survey work and mitigation measures, application of temporary and permanent licences from regulatory bodies and detailed design.
Suppliers will also be expected to provide engineering and design works, procurement, construction and commissioning of: control building / GIS building, sub-station civil works, balance of plant works, supply and installation of power cables within the substation and elements of decommissioning/dismantling works.
Lot 3 – Substation enabling works (disaggregated model) – £385M
Works will include early contractor involvement, construction or extension of substation platforms, ground stabilisation or remediation, earthworks, construction of access roads, installation of drainage systems, substation earthing, installation of cross site cable ducts and cable trenches, installation of security fencing and associated foundations gates and fixtures, access paths and laydown areas.
Lot 4 – Substation civils works (disaggregated model) – £330M
Works will include early contractor involvement, civil works as per the technical specification and design provided by SP Transmission, construction of main plant foundations, excavation and temporary works, drainage systems, substation earthing, cable duct installation, security fencing, access paths and laydown areas and finishing works.
Lot 5 – Substation electrical works (disaggregated model) – £235M
Works will include early contractor involvement, 33kV cabling (including terminations and testing), steel support structures, post insulators and surge arrestors, motorised disconnectors and circuit breakers, substation earthing, busbars and clamps (33kv – 400kv), circuit breakers (GIS, SF6, Non SF6, vacuum), auxiliary and earthing transformers, grid transformers and reactors, CTs VTs and CVTs, neutral earthing resistors, LVAC boards, fibre optics data systems, multicore cabling, protection control and SCADA systems and commissioning of all assets.
Transmission Overhead Line Works framework
Lot 1 – 400kV overhead line works involving HLTS – £600M
Works will include early contractor involvement, desktop design, detailed design, site survey and condition assessment, site establishment, enabling works, tower refurbishment and modification, tower painting, foundation upgrades, circuit reconductoring, vegetation management and new overhead lines to tie in with substation works (where required).
Lot 2 – Design and construction of 275kV and 400kV overhead lines – £1,875M
Works will include refurbishment and reconditioning of steel tower overhead lines, as well as supply, design and construction of new 275kV and 400kV lines.
Like lot 1, the scope includes early contractor involvement, desktop design, detailed design, site survey and condition assessment, site establishment, enabling works, tower refurbishment and modification, tower painting, foundation upgrades, circuit reconductoring, vegetation management and new overhead lines to tie in with substation works (where required).
Lot 3 – Design and construction of 132kV overhead line works – £525M
Works on this lot will include refurbishment and reconditioning of 132kV steel tower overhead lines as well as supply, installation, design and construction of new 132kV tower and wood pole overhead lines.
Like the other two lots on the framework, the scope also includes early contractor involvement, desktop design, detailed design, site survey and condition assessment, site establishment, enabling works, tower refurbishment and modification, tower painting, foundation upgrades, circuit reconductoring, vegetation management and new overhead lines to tie in with substation works (where required).
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