National Grid electrifying procurement
National Grid is enhancing procurement practices within the UK's energy industry by establishing an £8bn partnership aimed at accelerating the transition to clean energy. This intense focus on improving supply chain mechanisms is captured in the new Electricity Transmission Partnership (ETP), which pledges to revitalise supply processes across England and Wales sustainably.
The initiative is set to fast-track essential substation infrastructure while solidifying collaborative ties throughout the UK.
Image: Vinci
The £8bn investment by National Grid is embedded within its RIIO-T3 strategy, committing approximately £35bn to enhance the transmission network from 2026 to 2031.
This plan aims to double both national power transfer capacity and client connections to aid the goal of net zero emissions by 2050.
Collaboration, a cornerstone of the ETP, fosters robust regional alliances via supplier engagement. National Grid will incentivise partners exhibiting high-quality performance over time—if partners uphold sustainable practices and maintain effective production rates, they are expected to benefit.
Delivery partners include Balfour Beatty (North East region), Burns & McDonnell, Linxon, Morgan Sindall Infrastructure (North West region) M Group Energy (South West region 2), Murphy (South West region 1, London and South East) and Omexom / Taylor Woodrow (OTW) (Central West region).
Regional delivery partner status, awarded to top suppliers, offers them preferential access to substation assignments within their locales, encouraging investment in growth and capabilities.
Tony Wilson
Tony Wilson, Managing Director of Balfour Beatty’s Power Transmission & Distribution business, says:
"We’re proud to be a regional delivery partner for National Grid’s Electricity Transmission Partnership, particularly entrusted with the North East—an area where we have a strong presence and longstanding commitments.
"This appointment recognises our proven track record in infrastructure and our ability to mobilise skilled teams and innovative solutions at scale. The new model is a necessary advancement that will solidify National Grid’s supply chain and hasten the UK’s journey to net zero."
The reconfiguration of supplier engagement strategies by National Grid enhances the UK's supply chain strength by bolstering local skills and capabilities.
Through ETP and the RIIO-T3 investment, new substations will be developed and existing ones upgraded.
The construction endeavours under ETP will span roughly 130 projects across various regions, promoting local economic growth through job creation and improved infrastructure.
Simon Smith Image:Morgan Sindall
Simon Smith, Managing Director of Morgan Sindall Infrastructure, adds:
"This investment cycle by National Grid further fortifies the energy network’s resilience and simultaneously supports local communities, providing diverse career opportunities and utilising the local supply chain."
Alongside ETP, National Grid has initiated other programs like the Great Grid Partnership (GGP) and the new high voltage direct current (HVDC) supply chain framework to bolster infrastructure resilience.
These efforts ensure that National Grid’s supply chains are resilient and expansive.
National Grid has also named 13 contractors to deliver substation construction and upgrades.
The dynamic market framework – now live and open-ended – means more firms can still join but for now the initial preferred firms are in pole position to tap into one of the UK’s biggest upcoming pipelines of substation work.
Laing O’Rourke emerged as the big winner, securing places on all three workstreams covering EPC delivery, M&E installation and major civils.
A tight five-strong pack made the cut for the top-tier EPC substation construction lot – BAM Nuttall, Costain, Laing O’Rourke, Siemens Energy and Skanska. These firms will battle it out for turnkey schemes typically worth more than £20m on live 400kV sites.
The M&E installation section – focused on smaller upgrades and extensions – went to Kirby Group Engineering, Laing O’Rourke, Morson Projects, OCU Utility Services and Siemens Energy.
Nine firms landed spots on the major civils lot for packages above £5m. Alongside tier one players BAM Nuttall, Costain, Galliford Try, Laing O’Rourke and Skanska, the line-up includes Alpha Construction, Amalgamated Construction, Trant Engineering and Tudorborne.
The dynamic market was first flagged in February as part of National Grid’s push to streamline procurement and speed up delivery of critical infrastructure.
It will be used by group businesses including National Grid Electricity Transmission and National Grid Electricity Distribution, with contractors competing for call-off jobs as schemes come to market.
National Grid has also positioned procurement as a strategic driver of its environmental transformation, moving beyond traditional cost-management to become a central mechanism for delivering climate commitments across its supply chain.
The company's Social and Environmental Action Plan (SEAP) for 2026-2031 represents the first integrated approach to environmental and social objectives, with procurement activities embedded throughout each pillar of the strategy.
Alice Delahunty, President of Electricity Transmission, says in the National Grid SEAP:
"We have both a duty and an opportunity to manage our business in an environmentally and socially responsible manner. This Action Plan is designed to inspire, activate and lead us in our planning, decision-making and target-setting so that we not only meet today's needs, but also safeguard tomorrow."
Alice Delahunty and Carl Trowell
Commenting on the move, Carl Trowell, President of Strategic Infrastructure, says in the National Grid SEAP:
"The Great Grid Upgrade is a once-in-a-generation opportunity to upgrade and strengthen the UK's electricity network. This Action Plan sets out our aspirations to 2031 and demonstrates how, through collaboration across our teams, supply chain, partners and communities, we are building a cleaner and fairer energy system for everyone."