ScottishPower has announced a groundbreaking £5.4 billion contract opportunity through its SP Energy Networks business, marking the company's largest-ever issued contract initiative. The substantial investment is poised to fortify the supply chain and facilitate significant advancements in green energy infrastructure, ensuring grid resilience for decades to come.
As per forecasts by the International Energy Agency, the UK is anticipated to witness a doubling of electricity demand over the next decade. To meet these needs, more than 600,000km of new or upgraded electricity lines are deemed necessary. ScottishPower aims to spearhead green growth by offering billions of pounds in contracts to support its electricity network ambitions and contribute to a net-zero future.
ScottishPower Chief Executive Keith Anderson emphasized the significance of the initiative, stating, “We're kickstarting the largest overhaul of the grid since its inception.” The ambitious investment plans are expected to expand electricity networks, foster workforce growth, and provide substantial opportunities for the supply chain, contributing to overall economic growth.
SP Energy Networks, ScottishPower's grid business, is actively encouraging companies with the requisite skills and experience to bid for contracts related to the design, development, and upgrading of strategic transmission infrastructure. The scope includes new high voltage substations, overhead line construction, and various design, engineering, construction, and electrical works.
Vicky Kelsall, CEO of SP Energy Networks, highlighted the magnitude of the infrastructure rollout, noting, “This is one of the most significant infrastructure rollouts to upgrade the grid to support the electricification of the wider economy.” With comprehensive plans and financial capital in place, the initiative is expected to benefit the UK supply chain significantly over the next decade.
The £5.4 billion worth of contracts covers transmission projects across central and southern Scotland and aligns with the goal of moving more green energy across the country. The initiative aims to connect 80GW-85GW of clean renewable energy to the British transmission system, ultimately reducing the UK's reliance on fossil fuels.
In a broader context, the UK government has previously announced plans to expedite the construction of high voltage power lines and streamline the grid connection process. These measures, unveiled in November, are designed to support economic growth and solidify the UK's position as a premier destination for renewable energy investments.