How is National Grid Transforming Britain's Supply Chain?

National Grid is transforming how it works with Britain's energy supply chain, funding an £8bn (US$10bn) partnership in order to support the UK's clean energy transition.

The New Electricity Transmission Partnership (ETP) will revitalise supply chains across England and Wales, making long-term positive impacts.

The scheme is set to accelerate the delivery of vital substation infrastructure and build strong relationships across the UK.

A network shape-up

The National Grid £8bn (US$10bn) partnership forms part of its RIIO-T3 investment plan, which includes a commitment to investing approximately £35bn (US$44.9bn) into the transmission network between 2026 and 2031.

The plan will double both the amount of power it's transferring across the country and the amount of customer connections it forms, contributing to its net zero by 2050 goal.

It aims to achieve this through collaboration and cooperation, as seen within the ETP. 

The ETP welcomes a long-term collaborative approach by building strong regional partnerships through supplier engagement. 

In order to incentivise partners, National Grid will reward partners for high-quality performance over a long period of time—so, if a partner is upholding sustainable practices and delivering at efficient and productive speeds, they'll see the benefits.

National Grid awarded regional delivery partner status to some of the most successful suppliers, which means partners will have first refusal of substation work in their region. This, in turn, gives them confidence to invest in growth and capability. 

Tony Wilson, Managing Director of Balfour Beatty’s Power Transmission & Distribution business, says: "We’re proud to be a regional delivery partner for National Grid’s Electricity Transmission Partnership, and especially to be entrusted with the North East – an area where we have a strong presence and a long-standing commitment, having delivered major energy infrastructure projects across the region for decades. 

"This appointment recognises our proven track record in delivering critical infrastructure and our ability to mobilise skilled teams and innovative solutions at scale.

"The new model is a bold and timely step that will strengthen National Grid’s supply chain and accelerate the UK’s journey to net zero."

Supply chain expansion

This remodelling of National Grid's supplier engagement will strengthen the UK supply chain by supporting the development of local skills and capability. 

With this partnership and the RIIO-T3 investment plan, new substations will be built and existing ones will be upgraded.

The construction work through the ETP will cover approximately 130 projects over multiple regions, supporting local communities through new jobs and new infrastructure. 

Simon Smith, Managing Director of Morgan Sindall Infrastructure, comments: "This latest investment cycle from National Grid will not only be pivotal to the UK by further strengthening the energy network for current and future resilience, but it brings so much for local communities with diverse career opportunities and the utilisation of local supply chain.

The ETP works alongside other National Grid initiatives which it has set up to evolve its supply chain ecosystem.

The Great Grid Partnership (GGP) and the new high voltage direct current (HVDC) supply chain framework will provide greater resilience across infrastructure construction. With the ETP as well, National Grid is ensuring its supply chains are far-reaching and resilient.

Energy Minister Michael Shanks adds: "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.”

The ETP is proving to be innovative and expansion-worthy, with a commitment of strengthening the UK workforce and local community.