Infrastructure giant Balfour Beatty has said it is bidding for 'record levels' of power distribution work as the UK's energy grid is upgraded to support the drive to net zero.
In a trading update this morning, the firm said it has has now commenced "early contractor involvement works" on nine electricity transmission projects across the north of Scotland under SSEN Transmission's £10billion Accelerated Strategic Transmission Investment (ASTI) framework.
It is also biding to be part of the National Grid's ASTI framework, and as a result expects volumes in its power business "to grow steeply across 2025 and 2026".
The firm recently promoted veteran Tony Wilson to become managing director of its expanding UK Power Transmission and Distribution arm after three years at the group.
An electrical engineer by trade, Wilson has over 40 years’ experience within the engineering and construction industry, spanning the utilities, transport, infrastructure and power markets.
Balfour Beatty's 2023 revenues topped £9.6billion according to today's trading update, which is up 7% on 2022.
Transition investment
Meanwhile, E.on - Europe's biggest operator of energy networks - has this morning raised its five-year investment target to 42 billion euros (£36billion), saying the continent required major grid expansion to make the transition to clean energy sources.
The new spending plan for the 2024-2028 period is up 27% from the 33 billion euro target for the previous 2023-2027 period, the company said, adding this would lead adjusted core profit (EBITDA) to rise to 11 billion euros by 2028.
CEO Leonhard Birnbaum said: “What Europe needs now is intelligent energy infrastructure for sustainable, secure, and affordable energy. This is exactly what E.ON delivers, and we continue to systematically pursue this course.
"This means that we will continue to make massive investments to meet the rapidly growing demand for energy infrastructure. But it also means that we’re leading the way where others are hesitating. Playing a pioneering role in the energy transition makes E.ON strong.”