National Grid has unveiled a landmark £8 billion Electricity Transmission Partnership (ETP) aimed at significantly accelerating the development of vital substation infrastructure across England and Wales. This strategic initiative is designed to bolster the United Kingdom’s transition towards clean energy and modernise its national grid infrastructure.
A New Era for Supply Chain Collaboration
The ETP represents a fundamental shift in how National Grid engages with its supply chain. Moving away from traditional procurement models, the partnership fosters a long-term, collaborative approach, prioritising regional relationships and rewarding suppliers based on their performance and capacity expansion. This new model grants regional exclusivity for substation construction and upgrade projects to selected ETP partners. This approach is intended to provide greater certainty for suppliers, encouraging them to invest in their capabilities, expand their capacity, and develop crucial local skills, thereby strengthening the UK’s domestic supply chain.
Powering the RIIO-T3 Investment Ambition
This £8 billion partnership is a cornerstone of National Grid’s ambitious RIIO-T3 investment plan. This regulatory framework proposes an unprecedented investment of up to £35 billion in the transmission network in England and Wales between April 2026 and March 2031. The ETP will facilitate the construction and upgrade of approximately 130 substation projects, representing a substantial portion of this overall investment, and ensuring the grid can handle the increasing demand driven by the clean energy transition.
Key Partners and Regional Focus
National Grid has appointed several key companies as regional delivery partners, alongside two national partners. The regional partners include Balfour Beatty for the North East region, Morgan Sindall Infrastructure for the North West, Murphy for the South West (region one) and London & South East, M Group Energy for the South West (region two), and OTW (an Omexom/Taylor Woodrow joint venture) for the Central West region. These partners will have first refusal on future substation work within their designated areas, providing them with the commercial certainty required to make significant investments. Linxon and Burns & McDonnell have been appointed as national partners, set to support projects that fall outside the regional scopes.
An initial £1.3 billion worth of exclusive work has already been allocated, with contracts to be awarded at a later stage.
A Boost for Britain’s Energy Future
The launch of the ETP is seen as a significant development for the United Kingdom’s energy sector and its journey towards net-zero emissions. Energy Minister Michael Shanks stated, “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, highlighted the transformative nature of the partnership, noting, “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”.
Looking Ahead
The ETP initiative is part of a broader strategy to enhance National Grid’s supply chain ecosystem, complementing other programmes like the Great Grid Partnership and a new HVDC supply chain framework. This collaborative model for infrastructure development is trending as essential for meeting ambitious energy goals and is expected to potentially expand to encompass other network infrastructure in the future. This business news signifies a crucial step in ensuring the United Kingdom has the robust, modern energy infrastructure needed for a sustainable future.
