The utilities sector is currently going through a period of radical transformation. The technologies and infrastructure the sector requires has made the world of procurement that supports it a lucrative, but competitive, place to win work.
We provide details about some of the latest National Grid projects that are happening within this sector below.
National Grid investment
The UK’s National Grid is the high-voltage electric power transmission network which connects power stations and major substations throughout the country. The National Grid was established to ensure that any electricity generated can be used to satisfy demands throughout the country.
The National Grid has been established to connect people living in the UK to the energy they use “safely, reliably and efficiently.” Over the years billions of pounds have been invested into the network and this is set to continue. According to a recent news report by Glenigan:
“A major investment programme by National Grid and other energy groups to update and expand the UK’s electricity connection capacity and other facilities in the sector is creating a significant source of new construction opportunities for civil engineering contractors.”
Several projects have begun in the opening months of 2020 after the National Grid signed a six-year contract worth around £400 million with Hochtief-Murphy JV in December 2019. This joint venture was established for the tunneling and shaft work for the second phase of the London Power Tunnel Phase 2 project. It is estimated that this project will span eight years and cost around £1 billion overall.
Glenigan has also revealed that the National Grid has longer-term plans for a 400kV transmission connection between Bramford substation in Suffolk, and Essex. This connection is forecast to reach a spend of £208 million and has been deemed a “nationally significant project.”
Contract awards are doubling
Work by Siemens and NKT is also extending out of the UK. The National Grid’s £1.1 billion Viking Link subsea cable interconnector, which links Jutland in Denmark with a site near Boston in Lincolnshire, is set to start in February 2020. Glenigan has reported that:
“The interconnector contracts were among recent major project awards which Glenigan Construction Data shows contributed to a more than doubling in the value of civil engineering contracts awarded in the fourth quarter – to a total of £4,940 million – compared to the period a year ago.”
Power up your procurement strategy
With the number of contract awards doubling within this vital and growing area of procurement, now is the time for your business to power up its procurement plans.
Recent figures from the National Infrastructure and Construction Pipeline point to utilities as the third largest sector by investment within infrastructure. In the latest Tracker Spotlight, the team at Construction Online look at the different aspects of this crucial sub-sector of construction, with a focus on market size and trends, sector analysis, current and future projects, and industry prospects.
The Spotlight is designed to provide a comprehensive overview showing where businesses can exploit arising opportunities. Tracker Intelligence helps you find, bid for and win more public and private sector contracts.
Our database is the largest public sector tenders and awards database in Europe, delivering private and public sector contract opportunities and awards, market intelligence, spend analysis and market leads at the click of a button.
To learn more about this sector and how you can use business intelligence to stay one step ahead of your competitors, download Tracker’s latest Spotlight on Utilities report.