Distribution SP Energy Networks has selected 19 preferred companies to deliver its £5.4 billion grid upgrade.
As electricity demand picks up—forecast to double by 2030—SP Energy Networks has launched a strategic partnership that will run for an initial five years to deliver what it calls the “biggest rewiring of the GB electricity grid since its inception”.
The agreement includes up to £3 billion on new overhead lines and £2.4 billion on new and upgraded substations, including design, engineering, construction, and electrical works.
According to ScottishPower, the DSO’s parent company, the initiative will create 1,000 new jobs and deliver thousands more in the supply chain. Of the 19 contractors selected, 17 are headquartered in the UK and Ireland.
Nicola Connelly, CEO of SP Energy Networks, said: “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.”
Investing in Great Britain’s electricity grid
In September, ScottishPower, owned by Spanish energy company Iberdrola, confirmed it was doubling its investment in the UK to 2028, from £12 billion to £24 billion, with two-thirds of the investment focused on electricity networks.
SP Energy Networks owns and operates the transmission network for central and southern Scotland. It is also delivering the Eastern GreenLink 1 (EGL1) interconnector, which Ofgem awarded a £2 billion funding package for.
Ensuring consistent service to customers is an important part of establishing public support for the crucial grid upgrades that operators are delivering. At the beginning of the month, distribution network operator (DNO) SP Energy Networks announced that a partnership with energy supplier Statkraft helped prevent outages during maintenance work on the electricity grid.
Yesterday (21 November), UK Power Networks (UKPN) revealed it enabled an additional 160GWh of renewable power export onto its network using day-ahead forecasting since 1 April this year.
The network periodically restricts how much power generators can export so it can carry out maintenance work, but its analysis has been able to open up far more times for generation to export, meaning renewable generators maximise uptime and revenue.
In a similar move, National Grid, which services the Midlands, South Wales and the South West, announced a ‘Great Grid Upgrade’ in May last year. The Great Grid Upgrade is set to build new infrastructure across England and Wales and is billed by National Grid as “the largest overhaul of the electricity grid in generations”.
