ScottishPower expects to create 1,000 direct jobs and “tens of thousands more in the supply chain” after signing contracts for a £5.4 billion investment in the UK grid.
The company initially unveiled its “biggest issued contract opportunity ever” through subsidiary SP Energy Networks in January this year.
At the time, ScottishPower chief executive officer Keith Anderson said the firm is delivering “the largest overhaul of the grid since its inception”.
The agreement with 19 suppliers includes up to £3bn on new overhead lines and £2.4bn on new and upgraded substations.
With demand for electricity set to double in the next 10 years, the International Energy Agency estimates the UK will need more than 350,000 miles of new or upgraded electricity lines.
Upgrading transmission infrastructure forms a key part of the Labour government’s ambition to decarbonise the UK grid by 2030.
© Supplied by ScottishPowerEarlier this month, the newly formed National Energy System Operator (NESO) said the clean power target is “achievable“, although officials admit the goal is “at the margins of possibility“.
Scottish grid upgrade
Of the selected suppliers, SP Energy Networks said 17 are based in the UK or Ireland.
The contractors include Glasgow-based contractors RJ McLeod, Perth-headquartered civil engineers I&H Brown and Surrey-headquartered construction engineers Keltbray.
RJ McLeod will deliver new and upgrade substations, while Keltbray will deliver work across both overhead lines and substations, SP Energy Networks said.
The strategic partnerships will run for an initial five years, with the option to extend up to 10 years.
SP Energy Networks chief executive Nicola Connelly said delivering the “biggest overhaul of the electricity grid ever seen” will unlock growth and free up network capacity.
“These strategic partnerships will give suppliers the confidence to invest in themselves, growing their workforce, opening new offices across the country and creating even greater opportunities for the UK,” Connelly said.
“This is great news for the UK and Scottish supply chains, with every pound spent directly benefiting central southern Scotland and its infrastructure for decades to come.”
SP Energy Networks owns and operates the transmission network for central and southern Scotland.
This includes around 2,800 miles of overhead electricity lines, 370 miles of underground cables and over 150 substations.
The firm also operates a number of subsea high voltage cables and is part of plans for a new “electricity superhighway” off the east coast of the UK.
Last month, ScottishPower owner Iberdrola said it will double its investment in the UK to 2028 to £24bn, with two thirds of that investment focused on electricity networks.
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