National Grid has finalised a £12bn round of contracts for civil works linked to high-voltage direct current (HVDC) projects.
The move completes the third phase of a wider £59bn programme of supply‑chain agreements intended to underpin a major upgrade of the UK’s electricity transmission network.
The framework awards, announced today, 21 August, are split into two lots. Lot 1 covers civil works for HVDC converter stations and totals about £9.07bn, while Lot 2 covers onshore HVDC cable civils and is worth an estimated £3.7bn. Contracts run for five years with an option to extend by a further three years.
Six companies won places on the converter civils framework. These are Balfour Beatty, Bam Nuttall, Galliford Try, Laing O’Rourke, Skanska and Taylor Woodrow. The onshore cable civils framework was awarded to Balfour Beatty, Murphy and Volker Fitzpatrick.
National Grid said the frameworks will cover both confirmed projects and anticipated works, naming Eastern Green Link 4 — a partnership with SP Energy Networks — and LionLink, in partnership with TenneT, among the schemes to be delivered. The operator has also recently announced preferred bidders on the converter framework for the Sea Link and Eastern Green Link 4 projects.
The first tender under the new HVDC civils arrangements is due to start shortly and will cover shared southern works for Eastern Green Link 3 and Eastern Green Link 4.
HVDC technology is used to move large volumes of power over long distances with lower losses than alternating current lines, and the contracts form part of what National Grid calls The Great Grid Upgrade, a programme of transmission reinforcements intended to connect increasing amounts of offshore wind and other low‑carbon generation to demand centres.
The scale of the framework reflects both substantial planned investment in transmission and industry concerns that the UK needs deeper domestic construction and manufacturing capacity to deliver it. National Grid said one objective of the framework was to broaden the supply chain and encourage new market entrants. As an example it pointed to Sumitomo’s plans to build HVDC cable manufacturing facilities in the UK for the first time in more than 20 years.
Construction firms that secured places on the framework are among the UK’s largest civil engineering contractors and have experience on major infrastructure projects. Securing framework status does not guarantee work, but positions firms to bid for individual tenders as projects move from planning to delivery.
Market commentators have welcomed moves to bring cable manufacturing to the UK but say timelines and skills shortages remain potential blockers. The UK has previously relied heavily on imported HVDC cable and specialist equipment, establishing domestic manufacturing could reduce supply‑chain risk but will require sustained investment and workforce development.
National Grid and its partners will progress tenders for specific packages under the frameworks, with early activity focused on the Eastern Green Link projects. Successful contractors will then move into detailed design and construction phases, subject to planning consents and other regulatory approvals.
National Grid chief engineer and offshore delivery director of strategic infrastructure Zac Richardson said: “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.”
National Grid LionLink project construction director Gareth Burden said: “Awarding these HVDC agreements is essential to strengthen 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.”
Balfour Beatty UK energy divisional CEO and group sector lead Stephen Tarr said: “Our unique end-to-end capabilities and our extensive civil engineering knowledge makes us ideally positioned to secure the power supply to millions of homes and businesses across England and Wales.
“We look forward to working closely and collaboratively with National Grid and our partners on the High Voltage Direct Current supply chain framework, as we build on our long-standing relationship and our history of successful delivery.”
Bam UK & Ireland chief operating officer John Wilkinson said: “We’re thrilled to continue our close collaboration with National Grid, taking another significant step towards protecting the UK’s future energy supply and accelerating the transition to cleaner, greener power through the delivery of critical infrastructure.
“This contract award builds on our ongoing work to improve energy connectivity right across the UK and Ireland, helping to power millions of homes with green electricity and reinforcing Bam’s commitment to building a sustainable tomorrow.”
Galliford Try chief executive Bill Hocking said: “Continuing to grow our core Infrastructure business is a key part of our Sustainable Growth Strategy, and this appointment will see us deliver further civil engineering and construction solutions for the energy sector.
“We look forward to working with National Grid to play our part in modernising and decarbonising the energy system and building the infrastructure that will enable our country’s current and future energy needs.”
Laing O’Rourke clients & markets director John O’Connor said: “We’re thrilled to be part of the converter civils framework and are looking forward to building on our already strong relationship with National Grid to deliver vital infrastructure work.
“We will bring proven expertise from adjacent sectors into the delivery of the HVDC valve halls, incorporating modern methods of construction and our mechanical and engineering solutions that have been tried and tested in other sectors.
“This work is vital to ensure the UK’s grid can handle future demands as we look to switch from fossil fuels to clean energy, and we are proud to be on this journey with National Grid to help the nation to become more sustainable.”
Skanska UK executive vice president Andrew English said: “Energy security is a top priority for the UK. We’re looking forward to working collaboratively with National Grid in delivering critical HVDC infrastructure that will support the country’s future energy needs.
“We’ll draw on our UK and global expertise, providing specialist civils construction knowledge, capacity and capability.”
Taylor Woodrow managing director Phil Skegg said: “Being awarded a place on the National Grid HVDC Converter Station Framework is a significant milestone in support of the UK’s transition to Net Zero and we are proud to be a partner delivering a more connected and sustainable energy future. We look forward to working with National Grid and their wider supply chain.”
Murphy UK managing director Nick Fletcher said: “At Murphy we are committed to a greener future, and working collaboratively, to deliver the UK’s energy transition and meet the government’s target of net zero by 2050.
“Our place on the HVDC framework enables us to continue to support the energy transition and builds on our long-standing and successful relationship with National Grid. We look forward to continuing to work together to improve life by delivering world-class infrastructure.”
VolkerWessels UK board director John Cox said: “We’re delighted to have been selected for National Grid’s Lot 2 Onshore Cable Civils framework.
“It’s great recognition of the work VolkerFitzpatrick and VolkerStevin have delivered together to date, and we’re looking forward to continuing that strong partnership.
“Supporting National Grid’s journey to net zero is something we’re proud to be part of, and we’re committed to delivering efficient, low-carbon infrastructure that meets the needs of the future.
“Together, we’re building on our collaborative approach through a new energy-focused partnership that will support delivery across the sector.”
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