Behind National Grid's HVDC Supply Chain Framework

Supply chain sustainability is crucial for the UK energy sector to meet stringent ESG regulations and pursue net-zero targets efficiently.

It not only attracts environmentally-conscious investments but also reduces costs by streamlining procurement processes.

Moreover, it bolsters resilience against global supply chain disturbances.

National Grid has taken significant steps by awarding numerous contracts as part of its £59bn (US$76.4bn) High Voltage Direct Current (HVDC) supply chain framework.

This framework is designed to ensure the procurement of essential equipment for existing and upcoming energy infrastructure undertakings while establishing lasting relationships with suppliers.

On the Framework Agreement, six HDVC cable suppliers have been granted positions: LS Cable & System, Hellenic & Jan De Nul Consortium, NKT Cables, Sumitomo Electric, Prysmian Group and Taihan Cable & Solution. These positions total around £21.3bn (US$27.7bn).

Additionally, four HVDC converter suppliers — Hitachi Energy, GE Vernova, Siemens Energy and Mitsubishi Electric — have secured contracts summing to £24.6bn (US$31.9bn).

These contracts, valid for five years with an option to extend by three more years, are pivotal in supporting the UK's shift towards a more secure and sustainable energy system, while also fostering job creation and enhancing national energy security.

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

“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 is a major initiative by National Grid aimed at transforming the UK's electricity transmission network to effectively distribute renewable and clean energy from generation locales to domestic and commercial facilities.

The project includes 17 infrastructure projects across England and Wales aimed at enhancing existing networks and constructing new facilities such as transmission lines, pylons, substations and underground and subsea cables.

The project will aim to:

• Enhance energy security by reducing the UK’s reliance on imported fuels and improving infrastructure to support clean energy
• Economic growth and job creation to help contribute to economic growth and the development of a skilled workforce in the renewable energy
• Support renewable energy integration 

Moreover, it is a cornerstone of the  UK’s transition to reaching net-zero carbon emissions by 2050, aiming to strengthen the reliability and efficiency of the country’s electricity transmission as it moves towards a less carbon-intensive future.

The importance of sustainability

Sustainability is central to the objectives of the National Grid’s HVDC supply chain framework as it directly supports the UK’s energy transition, net-zero ambitions and grid decarbonisation.Selected ventures under this framework include Sealink, Eastern Green Link 4 and LionLink, all of which will play a role in reducing dependence on fossil fuels by integrating more renewable energy into the grid.

Sustainable practices are a priority for suppliers within this framework, emphasising recycled materials, eco-friendly logistics, and low-carbon production methods for HDVC equipment.

National Grid is enhancing supply chain resilience by partnering with multiple global suppliers, thereby minimising supply disruption risks.

These suppliers are also adopting circular economy principles, working to improve their recycling processes and material use efficiency.

Neil Beardsmore, Executive Global Commercial leader for HVDC at GE Vernova, one of the suppliers chosen, says: “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. 

“As global energy demand rises and grids face unprecedented challenges, we are focused on helping our customers build a more resilient, secure, and decarbonised energy ecosystem."

Strengthening supply chains

By securing long-term contracts with global suppliers of HVDC cables and converter systems necessary for energy projects, National Grid’s framework ensures a steady and reliable supply chain.

This strategic procurement approach protects against raw material shortages, geopolitical instabilities and international logistic issues by pre-qualifying suppliers from diverse regions.

This initiative not only covers immediate needs but also future demands, thereby providing stability and enhancing the agility of the UK’s energy supply chain.

Reducing lead times for procurement and ensuring the readiness of suppliers for upcoming projects are among the strategic benefits derived from this comprehensive framework.Ben Wilson, President of National Grid Ventures, explains how strategic supply chain initiative will enhance supply chain agility and minimise procurement lead times.

“National Grid is already the largest operator of subsea power cables in the world, the majority of which we delivered in the last six years," he says.

“World record-breaking sites like Viking Link and pioneering projects like LionLink need an ambitious approach for every aspect of their delivery, including with our suppliers. 

“Today’s announcement is an important step which strengthens our supply chain. It ensures we can develop and deliver innovative international projects in a timely manner and boosts energy security with confidence.” 

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