Teesworks secures landmark substation deal
Posted on 03 November 2026
Plans for what is expected to be the UK’s largest electricity substation have reached a “significant milestone” following the completion of a land deal on Teesside.
Teesworks has completed an agreement with National Grid Electricity Transmission for the purchase of 73.3 acres at Dorman Point.
Finalised last Wednesday (October 28), the deal will enable the development of Teesside Node A, a new facility designed to meet growing electricity demand from businesses operating at Teesworks and across the wider Tees Valley.
The substation, which will be delivered by Balfour Beatty on behalf of National Grid, is expected to provide an additional 1.44GW of electricity capacity by the end of 2029.
This additional capacity has been contracted to Steel River Power, which operates the private electricity network across the Teesworks estate, with the potential for further expansion to 3.2GW in the future.
Chris Musgrave OBE, chairman of Teesworks Ltd, said: “Agreeing this deal with National Grid is a significant milestone for Teesworks and reflects the scale of the opportunity here at the Teesworks site.
Teesworks will now undertake six months of remediation work to prepare the land for handover to National Grid.
The site sits beneath existing 275kV and 400kV overhead transmission lines, providing a strategic location for the new infrastructure.
The development forms part of National Grid's Great Grid Upgrade programme, aimed at modernising the country's electricity network and supporting increasing demand.
Matt Pearce, National Grid's head of land, added: “Securing this land agreement is an important step forward in the development of the new substation.
“It reflects the constructive work between all those involved to enable this vital infrastructure which is part of The Great Grid Upgrade, the largest upgrade of the electricity grid in generations, and will support the growth of AI and digital technologies and enable the region’s next phase of industrial and economic development.
“We are committed to working closely with our partners to progress the development as quickly as possible.”
The project is expected to strengthen Teesside’s ability to attract energy-intensive industries, including data centres, artificial intelligence businesses and advanced manufacturing operations.
Steel River Power’s existing network has a capacity of 360 MVA, with 200 MVA currently available to support developments across the estate.
Tees Valley mayor Ben Houchen added: “Everyone who’s tried to build a data centre or large-scale advanced manufacturing, technological or energy-intensive industrial developments in this country knows the biggest problem is getting enough power to the site quickly.
“Having a contracted 1.44GW capacity, with further expansion up to 3.2GW in the near future, means we can finally compete for those projects.”
David Smith, chair of the South Tees Development Corporation, added: “For potential investors, having confidence that the energy infrastructure will be there to support their plans is crucial.
“This agreement is a real boost to our ability to attract future investment and move towards the development corporation’s long-term aims: bringing land back into productive use, creating opportunities for local people and ensuring the whole area benefits from regeneration for decades to come.
