National Grid has awarded £12bn in HVDC supply chain agreements

National Grid has completed the award of its High Voltage Direct Current (HVDC) civil works supply chain framework, with £12bn worth of agreements confirmed. This announcement marks the third and final stage of our £59bn supply chain framework awards and underlines the commitment to delivering the energy infrastructure needed to support the Great Grid Upgrade and the UK’s energy transition. 

A total of six HVDC converter civil works suppliers have been awarded positions on Lot 1 of the Framework Agreement totalling approximately £9.07bn. In addition, three HVDC onshore cable civil works suppliers being awarded places on Lot 2 of the Framework, worth an estimated £3.7bn. The successful HVDC converter civils suppliers are Balfour Beatty, BAM Nuttall, Galliford Try, Laing O’Rourke, Skanska and Taylor Woodrow. The HVDC onshore cable civils Framework has been awarded to Balfour Beatty, Murphy, and VolkerFitzpatrick. 

Contracts have been secured for a five-year period, with the potential to extend for a further three years. Both Frameworks cover confirmed and anticipated projects, including Eastern Green Link 4, in partnership with SP Energy Networks and LionLink in partnership with TenneT . 

Through our HVDC Converter framework National Grid has recently announced preferred bidders for Sea Link and Eastern Green Link 4.

The first tender under the new HVDC civils framework will shortly be underway for the shared southern works required for Eastern Green Link 3 and Eastern Green Link 4.

One of the aims of the HVDC frameworks was to strengthen and broaden our supply chain, encouraging new market entrants increase manufacturing capacity. One example of this is Sumitomo, who are building new HVDC cable manufacturing facilities in the UK for the first time in over 20 years.

Zac Richardson, Chief Engineer and Offshore Delivery Director of Strategic Infrastructure at National Grid, 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.

Gareth Burden, Construction Director of National Grid’s LionLink project, 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.”

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Stephen Tarr, Divisional CEO and Group Sector Lead – UK Energy at Balfour Beatty, 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.”

John Wilkinson, Chief Operating Officer, BAM UK & Ireland 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.”

Bill Hocking, Chief Executive of Galliford Try, commented: “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.”

John O’Connor, Clients & Markets Director, Laing O’Rourke, 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.”

Andrew English, Executive Vice President, Skanska UK, 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.” 

Phil Skegg, Taylor Woodrow Managing Director, 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.”

Nick Fletcher, UK Managing Director for Murphy, 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. 

John Cox, VolkerWessels UK Board Director, commented: "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."