Balfour Beatty wins £325m electricity transmission hub contract
Balfour Beatty has secured a £325m job from Scottish and Southern Electricity Networks (SSEN) to deliver the Netherton Hub in Aberdeenshire.
The two-year main works contract was awarded through SSEN’s Accelerated Strategic Transmission Investment (ASTI) Offshore Framework.
It followed Balfour Beatty’s appointment in 2025 to carry out enabling works at the site.
The Netherton Hub is intended to strengthen the UK’s electricity transmission network by enabling renewable energy generated in northern Scotland to be transmitted to demand centres across the country.
Balfour Beatty said it will deliver earthworks and civil engineering, including five platforms to support two substations and three converter stations.
The contractor will also build an operations base and associated facilities.
Philip Hoare
Philip Hoare, Balfour Beatty group chief executive, said: “The Netherton Hub will play a role in enabling the delivery of secure, homegrown, low-carbon power at scale.”
More than 800 people will be employed at peak construction. Balfour Beatty said more than 5 per cent of the workforce would comprise apprentices and graduates in line with its commitment to The 5% Club.
The Netherton Hub is a key component of the Perth-headquartered company’s £22bn+ investment programme and is part of a wider renewal of the electricity transmission system across Great Britain that is required to enable the homegrown low-carbon electricity needed to deliver clean power and energy security targets. The need for the project has been independently assessed and approved by the National Energy System Operator (NESO) and energy regulator, Ofgem.
Community feedback has helped shape the hub’s design, addressing concerns about flooding and visual impact through measures like dedicated land for drainage, screening, bunding, and landscaping.
Once complete, the site will comprise:
A 400kV substation to support offshore and onshore electricity generation
A 132kV substation to support further future generation and storage connections from third party developers
The Spittal to Peterhead High Voltage Direct Current (HVDC) converter station to support the transmission of renewable energy from new generators in the north of Scotland to demand centres throughout the UK
The Eastern Green Link 3 HVDC converter station to support the transmission of renewable energy from generators in the north of Scotland to Norfolk and beyond
A further transmission hall, with capacity for more infrastructure to future-proof the growing network
A spares warehouse and operations base
Construction of the Netherton Hub is expected to commence early next year.
Alison Hall
Alison Hall, Director of Development for SSEN Transmission, said:
“We are delighted to progress a world-leading energy hub helping unlock the homegrown low-carbon electricity generation required to help deliver a cleaner, more secure and affordable electricity system for current and future generations.
“Investing to upgrade our electricity transmission network is also a major driver of jobs and economic activity, and we have already seen the positive impact of our projects in the north-east of Scotland – including Eastern Green Link 2 which has so far generated over £9m for the local economy in and around the Peterhead area.
“In addition, our community benefit funding proposals, ambitious housing legacy commitments, and the creation of new jobs within SSEN Transmission and our supply chain partners are also helping deliver a positive legacy in local communities.
“This project marks a key milestone in delivering UK and Scottish Government energy targets – one that will deliver a new strategic hub for onshore and offshore projects that will be critical to delivering a cleaner, more secure and affordable energy system for future generations.”
The Netherton Hub forms a key part of SSEN Transmission’s plans to invest at least £22bn in the period until March 2031, potentially rising to £31.7bn. It represents one of the largest ever private investment programmes in Scotland and will act as a major driver of jobs and economic growth across the country.
Economic analysis, which has been independently peer reviewed by leading consultancy Biggar Economics, forecast that if delivered in full, the potential £31.7bn total investment could support up to 17,500 jobs in Scotland, including 8,400 in the north of Scotland. It would also add up to £7bn in value to the Scottish economy, including £3bn in the north of Scotland. A socio-economic assessment produced by Arup has found the proposed development could contribute £54.7 million to the total Gross Value Added (GVA) in the Aberdeenshire Council area during construction, and £1.61m per year during operation.
Reflecting the significant expansion of the transmission network planned across the north of Scotland, SSEN Transmission continues to grow its workforce, which has increased from around 400 in 2019 to over 2,500 today with plans to recruit around 600 new roles in 2025/2026. A series of new operational depots are also planned, including a new depot in the Peterhead area which is expected to support at least 20 full-time operational roles.
Following the publication of the UK Government’s Community Benefit Guidance for new electricity transmission infrastructure, over £100m of community benefit funding is expected across the north of Scotland, with the Netherton Hub alone expected to deliver more than £2.5m of community benefit funding.
SSEN Transmission’s Pathway to 2030 programme is also expected to support the development of at least 1,000 new homes across the north of Scotland, creating a legacy in the communities that will host construction workers by delivering housing that will support local need once projects are completed. SSEN Transmission is currently exploring sites that will deliver legacy housing, including land for future housing development, across the north of Aberdeenshire.
Balfour Beatty is one of 10 preferred bidders on the £10bn ASTI framework.
In its last annual report, Hoare referred to a £1.6bn order book for UK power network replacement “with a really strong pipeline in front of us of £6bn to £8bn”.