Balfour Beatty secures £192m substation contract


Balfour Beatty has won a contract to construct three new substations in Argyll, Scotland, on behalf of Scottish and Southern Electricity Network (SSEN) Transmission.

Credit: Matthew Henry / Unsplash

The contract, valued at £192 million, has been awarded through the GIS2 RIIO T2 framework, to which the contractor was appointed in 2022.

Balfour will design and build the three new 275kV substations in Craig Murrail, An Suidhe, and Crarae.

Main construction is due to start late Summer 2024.

Balfour plans to employ approximately 200 people at peak construction, including several apprentice, graduate and trainee positions.

The company will also employ a minimum of 50 per cent of its workforce from the local, surrounding area.

Tony Wilson, managing director of Balfour Beatty UK Power Transmission & Distribution, said: “Today’s announcement marks an important milestone in SSEN’s Argyll and Kintyre reinforcement works – a project that is crucial for enhancing substation infrastructure in the region.”

Hector MacAulay MBE, managing director of Balfour Beatty’s regional business in Scotland, said: “Our commitment to collaboration, the environment and positive social impact will ensure that we not only make a meaningful impact on the region’s energy landscape, but also leave behind a lasting legacy for the communities in Argyll.”

The new substations form part of SSEN Transmission’s Argyll and Kintyre reinforcement strategy. 

On completion, they are set to enhance and strengthen the electrical transmission infrastructure in Argyll to support the expected rise in renewable energy production in the region.

It follows Balfour securing a £690 million grid expansion in Scotland earlier this month.

The Skye 132kV Reinforcement Project seeks to improve the supply across the Hebrides and West Highlands.

The project marks the first phase of a major piece of electricity network infrastructure in the remotest parts of Scotland.

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