British utility National Grid plc has awarded high voltage direct current (HVDC) agreements worth GBP12 billion ($16.2 billion). The company said in a media release that the agreements mark the third and final stage of its GBP 59 billion ($79.8 billion) supply chain framework awards for energy infrastructure needed to support the Great Grid Upgrade and the United Kingdom’s energy transition.
A total of six suppliers have been awarded positions in Lot 1 of the HVDC converter civil works Framework Agreement, valued at approximately GBP 9.07 billion ($12.2 billion). Three suppliers for HVDC onshore cable civil works have secured places in Lot 2, estimated at GBP 3.7 billion ($5 billion). The selected suppliers include Balfour Beatty, BAM Nuttall, Galliford Try, Laing O’Rourke, Skanska, Taylor Woodrow, Balfour Beatty, Murphy, and VolkerFitzpatrick.
“This marks a major step forward in delivering the UK’s future energy network. This investment not only underpins the transition to a more secure, independent, and low-carbon energy future but will also support tens of thousands of UK jobs, boost regional supply chains, and strengthen our construction and engineering sectors. By building strategic, long-term partnerships with leading UK-based contractors, we’re ensuring the UK is ready to meet the growing demand for electricity with a resilient and modern network”, Zac Richardson, Chief Engineer and Offshore Delivery Director of Strategic Infrastructure at National Grid, said.
Contracts have a five-year term, with a potential three-year extension, National Grid said. Agreements cover confirmed and anticipated projects like Eastern Green Link 4 with SP Energy Networks and LionLink with TenneT. National Grid recently selected preferred bidders for Sea Link and Eastern Green Link 4. The first tender for shared southern works for Eastern Green Link 3 and 4 will soon begin, it said.
National Grid said that a key objective of the HVDC frameworks was to enhance and expand its supply chain, motivating new market players to boost their manufacturing capabilities. An illustration of this is Sumitomo, which is constructing new HVDC cable production facilities in the UK for the first time in more than 20 years, National Grid said.
“Awarding these HVDC agreements is essential to strengthening our supply chain for our future projects. Today’s announcement ensures we are well-placed to progress LionLink and deliver the vital energy infrastructure the nation needs to be more energy secure, whilst lowering household energy bills”, Gareth Burden, Construction Director of National Grid’s LionLink project, said.
To contact the author, email andreson.n.paul@gmail.com
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