National Grid Embarks on £8 Billion Transformation to Future-Proof Energy Infrastructure

National Grid has announced a £8 billion overhaul of its substations across England and Wales, marking a significant shift in how the UK prepares for its fast-moving clean energy transition. This new model, known as the Electricity Transmission Partnership, is designed to modernise the transmission network and replace the old stop-start contracting process with long-term regional partnerships.

Instead of commissioning projects one by one, National Grid will now hand over long-term responsibility to dedicated regional suppliers. These suppliers will have exclusive rights to deliver substation projects in their areas, and their future workload will depend heavily on performance and investment in local capabilities.

The scale of this transformation is enormous. By March 2031, the initiative is expected to deliver around 130 new substation projects. This is all part of National Grid’s broader RIIO-T3 investment plan, which totals £35 billion and represents one of the most considerable infrastructure efforts in recent UK history.

The regional partners have already been named. Balfour Beatty will take the lead in the North East, while Morgan Sindall Infrastructure has been selected for the North West. Murphy will handle projects in both the South West and the London and South East regions. M Group Energy will oversee work in a second South West zone, while OTW will manage delivery in the Central West.

To provide extra support outside these defined regions, Linxon and Burns & McDonnell have been brought on board as national delivery partners. These firms will act as flexible players, stepping in where additional capacity or specialist expertise is needed.

So far, National Grid has allocated £1.3 billion worth of exclusive projects under the new model, with further contracts expected to follow in the months ahead.

Energy Minister Michael Shanks said: “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 £8bn 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.”

This transformation comes at a critical time. The UK is experiencing record-breaking growth in renewable energy. Government data released this year shows that, for the first time, in 2024, renewable sources generated more than half of the country’s electricity. That milestone has only sharpened the focus on the need to upgrade the grid quickly and strategically.

National Grid believes this new delivery model could eventually expand beyond substations to other parts of the transmission network. By moving away from fragmented procurement and toward deeper partnerships, the company aims to build a more resilient supply chain, deliver projects more efficiently, and ensure the grid is prepared to meet the increasing demands of a cleaner energy future.

“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 investment ambitions into action and building a resilient grid to support Britain’s clean energy future.”