Siemens Energy and GE Vernova win slice of $76bn National Grid HVDC supply deal in 2025.
Table of Contents
In a landmark development poised to significantly enhance the United Kingdom’s energy infrastructure, National Grid has awarded framework contracts totaling approximately £59 billion (approximately $76 billion) for the supply of High-Voltage Direct Current (HVDC) systems. This strategic move aims to bolster the UK’s transition to renewable energy sources by facilitating efficient power transmission across the nation.
Awardees of the HVDC Contracts Siemens Energy
The extensive HVDC supply chain framework has been divided into two primary categories:
- HVDC Converter Systems Framework: This segment has been awarded to four prominent suppliers:
- GE Vernova
- Siemens Energy
- Hitachi Energy
- Mitsubishi Electric
- HVDC Cable Suppliers: The successful bidders in this category include:
- Hellenic & Jan De Nul Consortium
- LS Cable & System
- NKT Cables
- Prysmian Group
- Sumitomo Electric
- Taihan Cable & Solution
Duration and Potential Extensions Siemens Energy
The contracts are initially secured for a five-year period, with the possibility of extending for an additional three years. citeturn0search0
Strategic Importance of HVDC Technology Siemens Energy
HVDC technology plays a crucial role in modernizing power transmission systems, especially when integrating renewable energy sources. It allows for efficient long-distance electricity transmission with reduced losses and enhances the stability and reliability of the power grid. The awarded contracts underscore National Grid’s commitment to advancing the UK’s energy infrastructure in alignment with its sustainability goals.
Manufacturing and Economic Implications Siemens Energy
GE Vernova has highlighted that its HVDC equipment will be manufactured within the UK. This approach not only supports local industry but also contributes to job creation and reinforces the nation’s renewable energy transition. citeturn0search9
National Grid’s Vision Siemens Energy
Carl Trowell, President of Strategic Infrastructure at National Grid, emphasized that these framework agreements represent a significant milestone in “the greatest overhaul of the grid in a generation.” He noted that the initiative aims to secure supply chains, foster innovation, and support the UK’s economic growth. citeturn0search9
Context of the Award Siemens Energy
These contracts are part of a broader effort to enhance the UK’s energy infrastructure, including projects like the Eastern Green Link 1 (EGL1). In November 2024, the UK energy regulator Ofgem approved £2 billion ($2.5 billion) for the construction of nearly 200 kilometers of new subsea and underground cables between Scotland and northeast England. The EGL1 project aims to harness North Sea wind energy, powering over two million homes and supporting the UK’s clean power objectives. citeturn0news13
Conclusion
The awarding of these HVDC contracts marks a pivotal moment in the UK’s energy sector, reflecting a strategic shift towards modernizing the power grid to accommodate renewable energy sources. The collaboration between National Grid and leading energy suppliers is set to drive technological innovation, economic growth, and progress towards the nation’s sustainability targets.
navlistUK Energy Regulator Approves Funding for Major Subsea Cable Projectturn0news13
In a landmark development poised to significantly enhance the United Kingdom’s energy infrastructure, National Grid has awarded framework contracts totaling approximately £59 billion (approximately $76 billion) for the supply of High-Voltage Direct Current (HVDC) systems. This strategic move aims to bolster the UK’s transition to renewable energy sources by facilitating efficient power transmission across the nation.
Awardees of the HVDC Contracts Siemens Energy
The extensive HVDC supply chain framework has been divided into two primary categories:
- HVDC Converter Systems Framework: This segment has been awarded to four prominent suppliers:
- GE Vernova
- Siemens Energy
- Hitachi Energy
- Mitsubishi Electric
- HVDC Cable Suppliers: The successful bidders in this category include:
- Hellenic & Jan De Nul Consortium
- LS Cable & System
- NKT Cables
- Prysmian Group
- Sumitomo Electric
- Taihan Cable & Solution
Duration and Potential Extensions Siemens Energy
The contracts are initially secured for a five-year period, with the possibility of extending for an additional three years. citeturn0search0
Strategic Importance of HVDC Technology
HVDC technology plays a crucial role in modernizing power transmission systems, especially when integrating renewable energy sources. It allows for efficient long-distance electricity transmission with reduced losses and enhances the stability and reliability of the power grid. The awarded contracts underscore National Grid’s commitment to advancing the UK’s energy infrastructure in alignment with its sustainability goals.
Manufacturing and Economic Implications Siemens Energy
GE Vernova has highlighted that its HVDC equipment will be manufactured within the UK. This approach not only supports local industry but also contributes to job creation and reinforces the nation’s renewable energy transition. citeturn0search9
National Grid’s Vision Siemens Energy
Carl Trowell, President of Strategic Infrastructure at National Grid, emphasized that these framework agreements represent a significant milestone in “the greatest overhaul of the grid in a generation.” He noted that the initiative aims to secure supply chains, foster innovation, and support the UK’s economic growth. citeturn0search9
Context of the Award
These contracts are part of a broader effort to enhance the UK’s energy infrastructure, including projects like the Eastern Green Link 1 (EGL1). In November 2024, the UK energy regulator Ofgem approved £2 billion ($2.5 billion) for the construction of nearly 200 kilometers of new subsea and underground cables between Scotland and northeast England. The EGL1 project aims to harness North Sea wind energy, powering over two million homes and supporting the UK’s clean power objectives. citeturn0news13
Conclusion
The awarding of these HVDC contracts marks a pivotal moment in the UK’s energy sector, reflecting a strategic shift towards modernizing the power grid to accommodate renewable energy sources. The collaboration between National Grid and leading energy suppliers is set to drive technological innovation, economic growth, and progress towards the nation’s sustainability targets.
navlistUK Energy Regulator Approves Funding for Major Subsea Cable Projectturn0news13