'The Great Grid Upgrade': Inside the National Grid's Revamp

With ESG regulations to adhere to, net zero targets to achieve and investments from sustainable financiers to attract, sustainability has never been of higher importance for players in the British energy sector.

Of those players, the National Grid (the organisation that oversees the distribution of electricity nationwide) is undoubtedly one of the most important.

For years now, the organisation has been taking steps towards building a more secure, resilient and decarbonised energy system.

In 2023, the National Grid launched the High Voltage Direct Current (HVDC) supply chain framework, which included a huge £59bn (US$76.4bn) budget for investments in future-proofing the country's energy ecosystem.

This cash injection has helped to secure essential equipment for ongoing and upcoming energy infrastructure projects, and has helped to cultivate enduring relationships with suppliers up and down the chain.

Which companies is the National Grid working with?

Thus far, six HVDC cable suppliers – LS Cable & System, the Hellenic & Jan De Nul Consortium, NKT Cables, Sumitomo Electric, Prysmian Group and Taihan Cable & Solution – have been awarded contracts, worth around £21.3bn (US$27.6bn).

Elsewhere, the HVDC Converter Framework has awarded four suppliers – Hitachi Energy, GE Vernova, Siemens Energy and Mitsubishi Electric – contracts worth a total of approximately £24.6bn (US$31.6bn).

“Electrification is the cornerstone of a net zero future and, at GE Vernova, we are committed to accelerating this transition by delivering integrated solutions that enable large-scale electrification," says Neil Beardsmore, Executive Global Commercial leader for HVDC at GE Vernova.

"As global energy demand increases and grids encounter unprecedented challenges, we focus on assisting our customers in constructing a more resilient, secure and decarbonised energy ecosystem."

These contracts are for an initial five years and include an option to extend for three additional years.

Guaranteed investments like these help to support the UK's energy transition, job creation and energy security.

"This is another exciting milestone in delivering the greatest overhaul of the grid in a generation – The Great Grid Upgrade," says Carl Trowell, President of Strategic Infrastructure at National Grid.

"We are committed to building the infrastructure that will enable our country's current and future energy needs, at pace.

"This framework allows us to harness National Grid’s scale to access global supply chains, drive efficiencies, foster innovative technologies and contribute to the UK’s economic prosperity."

'The Great Grid Upgrade'

The Great Grid Upgrade represents the biggest overhaul in British energy technology in a generation.

The project aims to transform the UK's electrical transmission system and augment its capacity to channel renewable and clean energy from generation points to households and businesses.

All in all, the upgrade encompasses 17 infrastructure projects across England and Wales and is set to revamp existing networks and construct new infrastructure like transmission lines, pylons, substations and subterranean and submarine cables.

But why does the grid need such a comprehensive remodelling?

Long before renewable energy came along, the UK's electricity grid was designed to distribute power generated in fossil fuel-fired stations.

As the UK expands its clean energy production, electricity consumption is expected to rise significantly across homes, businesses and transport.

To support this transition to a cleaner energy future, huge upgrades to the electricity transmission network will be necessary, alongside other modifications to the grid.

This includes developing new infrastructure to transfer energy produced offshore – such as wind power from the North Sea – into the mainland grid for wider distribution.

This project is pivotal in steering the UK towards fulfilling its commitment to net zero carbon emissions by 2050.

"The National Grid is already the largest operator of subsea power cables in the world, most of which we delivered in the last six years," explains Ben Wilson, President of National Grid Ventures.

"Record-breaking projects like Viking Link and innovative engagements like LionLink demand an ambitious approach in every phase of their delivery, including with our suppliers.

"Today’s announcement marks a crucial step in fortifying our supply chain, enabling us to develop and deliver pioneering international projects timely and bolster energy security with certainty."

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