SP Energy Networks has selected 19 businesses as preferred partners for a £5.4 billion supply chain contract programme, marking a significant step in upgrading the UK's electricity grid. The initiative is part of the largest overhaul of the grid in its history, aimed at meeting rising energy demand and supporting economic growth.
The project, led by SP Energy Networks' parent company, ScottishPower, is expected to create 1,000 direct jobs and tens of thousands in the supply chain. With electricity demand anticipated to double, the upgrades will facilitate the transport of power across Britain and enhance capacity for new homes, businesses, and renewable energy projects.
Seventeen of the 19 chosen contractors are based in the UK and Ireland, emphasizing the programme's focus on bolstering domestic supply chains. Notable firms include Surrey-based Keltbray Energy Limited, Scottish civil engineering company I&H Brown, and Glasgow-based contractor RJ McLeod. These businesses will contribute to key projects, such as building and upgrading substations and overhead lines.
The initial five-year partnership agreement, with an option to extend up to a decade, aims to provide contractors with stability, enabling them to invest in workforce expansion, equipment, and technology.
Nicola Connelly, CEO of SP Energy Networks, highlighted the programme's transformative potential: “We're delivering the biggest overhaul of the electricity grid ever seen to unlock growth and free up network capacity for new homes, businesses, and clean energy projects. These partnerships will allow suppliers to invest in themselves, fostering greater opportunities for the UK.”
The contracts include £3 billion allocated for new overhead lines and £2.4 billion for new and upgraded substations. The work spans design, engineering, construction, and electrical upgrades.
At an event in Glasgow, the successful suppliers signed SP Energy Networks' Delivery Charter, which commits to green job creation, talent development, community benefits, and maintaining safety standards.
SP Energy Networks, which oversees the transmission network for central and southern Scotland, operates over 4,500 km of overhead lines, 600 km of underground cables, and more than 150 substations. Recently, the company secured approval to proceed with an underwater electricity superhighway off the east coast of Britain, underscoring its role in advancing the UK's energy transition.
