Norwegian state-owned enterprise Statnett has awarded a design and build contract to Scandinavian contractor Veidekke for the construction of three new substations in Vestland.

The contract is valued at nearly Nkr1.3bn ($130.6m), excluding value-added tax (VAT).

Veidekke is responsible for the foundation, construction, and concrete work for the substations in the municipalities of Øygarden, Vik, and Modalen.

The scope of work encompasses access roads, rock work, and transformer shafts, as well as the construction of multiple technical buildings and facilities both below and above ground.

The initiative is a response to the demand for electrification and the country's commitment to the green shift.

Statnett aims to modernise the grid infrastructure by replacing older power lines and substations between Sogndal and Sauda via Kollsnes. The new substations, designed for 420kV, will enhance the capacity and flow within the grid.

Statnett is managing the procurement process for itself and its customers, energy distributor BKK and Eviny Fornybar, a renewable energy and technology company.

The construction is scheduled to begin in October in Øygarden, followed by Vik and Modalen.

The construction phase is expected to conclude in 2028, with a subsequent period for installation and trial operations, leading to the final handover in the autumn of 2030.

Veidekke Bygg EVP Hans Olav Sørlie said: “Building critical infrastructure is something we really appreciate doing, and here, we will use the expertise of our employees in Bergen, Sogn og Fjordane, Møre og Romsdal and Veidekke Prefab. We are grateful for the confidence shown in us and are looking forward to a close and good partnership with Statnett over the next years.”

Last month, Veidekke received a Nkr400m contract for the new Kongshaugen treatment plant in Norway.

Additionally, Veidekke and its subsidiary Veitech recently secured a contract for construction and installation work at one of the Swedish Fortifications Agency’s facilities in eastern Sweden.