ATS Kraftservice, a subsidiary of Peab, has been awarded a five-year framework contract valued at Skr1.15bn ($120.7m) for an energy grid project in Sweden.

E.ON Energidistribution, a European energy company, has embarked on a substantial investment to modernise and fortify the domestic grid. This is in response to growing demands for capacity, reliability, and sustainability in the energy sector.

The framework contract with ATS Kraftservice ensures guaranteed volumes in eight out of 12 geographical network areas. With a minimum annual volume of Skr230m over the next five years, the contract comes with an option to extend for an additional year.

The services included in the contract encompass the construction and renovation of local networks, as well as maintenance and projects related to underground cables and overhead lines, spanning from Skåne to Norrland.

This framework agreement took effect on 1 July 2025 and will continue until 31 January 2026, covering the entirety of E.ON's electricity network in Sweden.

The contract is set to be registered in Peab’s books in the third quarter (Q3) of 2025.

ATS Kraftservice CEO Håkan Ström said: "We’re very proud of the confidence placed in us by E.ON. This is a strategically important assignment that strengthens our position as a leading player in local grid contracts in Sweden and provides us with a long-term platform for investing in expertise, equipment and sustainable solutions."

Earlier this month, Peab, through its subsidiary Peab Asfalt, was chosen by Danish construction company Zøllner to transform the Hillerød-Allerød expressway into a four-lane highway, which includes paving work on four bridges and the creation of new on- and off-ramps.