National Grid in £8 billion partnership model for substation infrastructure across England and Wales

According to industry commentators, National Grid’s Electricity Transmission Partnership (ETP) redefines how the company engages with suppliers, moving to a longer-term collaborative approach that builds regional partnerships.

Its RIIO-T3 investment plan proposes up to £35 billion investment in the transmission network in England and Wales over the five years to March 2031, including building new substations or upgrading existing ones.

As part of the ETP, National Grid expects to award around £8 billion worth of substation construction work over the RIIO-T3 period, covering multiple regions and around 130 projects.

The initiative awards regional exclusivity of substation work to ETP partners based on performance and commitment to expanding their capacity.

National Grid says the approach aims to strengthen the UK supply chain, encourage long term investment, and support the development of local skills and capability.

In July, National Grid awarded regional delivery partner status to several successful suppliers, as well as allocating an initial £1.3 billion worth of exclusive work whose contracts will be awarded at a later stage.

Regional delivery partners include:

·       Balfour Beatty – North East region

·       Morgan Sindall Infrastructure – North West region

·       Murphy – South West (region one) and London & South East region

·       M Group Energy – South West (region two)

·       OTW – Central West region

 The awards mean partners will have first refusal of future substation work in the pipeline in their region, providing them with the certainty they need to invest in growth and capability.

Two national partners, Linxon and Burns & McDonnell, will support delivery of substation work that falls outside the scope of the regional partners’ portfolios.

The ETP complements other initiatives in National Grid’s supply chain ecosystem, including the Great Grid Partnership (GGP) and a new HVDC. supply chain framework, Together, these programmes are designed to provide greater capacity and resilience across multiple infrastructure construction portfolios.

Commenting in a release Energy Minister Michael Shanks said:

“The clean energy transition is the economic opportunity of the 21st century, with the potential to revitalise our industrial heartlands with skilled jobs and economic growth.

“This £8 billion partnership from National Grid is proof of that – providing a boost for Britain’s supply chains, investing in the future of our highly skilled workforce and helping to deliver clean, homegrown power that we control.”

Alice Delahunty, president of National Grid Electricity Transmission, observed:

“Our Electricity Transmission Partnership marks a bold shift in how we deliver vital electricity infrastructure. By adopting a regional, long-term approach, we’re giving our supply chain the certainty to invest in people, skills and innovation. It’s a key step in turning our RIIO-T3 investment ambitions into action and building a resilient grid to support Britain’s clean energy future.”

According to National Grid, the ETP model also has the potential to be expanded beyond substations in future to include other network infrastructure.