24th October 2026
Caithness is becoming an increasingly important location for the infrastructure needed to move electricity around Scotland. Major transmission projects are bringing investment, construction activity and opportunities for local contractors. But an important question remains: how much of that investment will translate into lasting jobs and prosperity for the area?
One significant development is the Spittal to Peterhead subsea electricity link, which will connect Caithness with Aberdeenshire through a 166-kilometre high-voltage direct current cable.
The project is designed to carry up to two gigawatts of electricity and forms part of the wider expansion of Scotland's electricity transmission network.
In early October, SSEN Transmission confirmed that the main construction compounds at Bower Quarry near Halkirk and Blackhills near Peterhead were operational.
Around 50 staff were based at the Caithness compound, representing SSEN Transmission, principal contractor NKT and Caithness-based contractor John Gunn and Sons.
It is a tangible sign that a major infrastructure project is moving beyond planning and into practical delivery.
Opportunities for local businesses
Large construction projects can generate economic benefits well beyond the people directly employed on site.
Contractors need equipment, transport, accommodation, catering, repairs and a range of specialist services. Local suppliers may gain new customers, while workers spending money in the area can support shops, cafés, garages and other businesses.
There are also opportunities for local firms to build experience and establish relationships that could lead to work on future infrastructure projects.
For Caithness, where the economy has often depended on a relatively small number of major employers and industries, diversification matters.
Energy infrastructure could provide work for businesses that might otherwise have to travel further afield to secure contracts. It may also help younger people see a future in the area if training and employment opportunities are accessible locally.
However, these benefits should not simply be assumed. They depend on how contracts are awarded, where workers live, what skills are required and how much work local suppliers can realistically undertake.
Construction jobs are not the whole story
A major project can employ substantial numbers of people during construction but require a much smaller workforce once it is complete.
That distinction matters when assessing the long-term economic value of energy investment.
A construction compound with dozens of staff is good news for local economic activity. It does not, by itself, tell us how many permanent jobs will remain after the project has been commissioned.
Some workers may live locally and spend their wages in Caithness. Others may travel in for particular phases of the work, with accommodation and spending spread across a wider area.
Both arrangements can bring benefits, but their effects on the local economy are different.
The same applies to contracts. A project may involve a Caithness-based company without all the work, profits or employment being retained locally. Equally, a local contractor that wins a substantial package of work may expand its workforce and invest in equipment that supports future business.
These are the details that would help residents understand the real economic contribution.
What should we be asking?
There is a strong case for greater transparency about the local economic benefits of major projects.
How many people employed on the Caithness section live in the county? How many apprenticeships and training places are being created? What proportion of contracts is going to local and Scottish businesses? How much is being spent with local accommodation providers and suppliers?
It would also be useful to know how many temporary jobs are expected during peak construction and how many permanent positions will exist once the infrastructure is operating.
These questions are not an argument against investment. They are a way of ensuring that the area can measure what it is gaining and identify where more could be done.
Local businesses may need advance notice of contract opportunities, help meeting procurement requirements or support to develop specialist skills. Colleges and training providers could work with contractors to identify the qualifications likely to be needed over the coming years.
If the same skills are required by several projects, training could potentially benefit more than one employer rather than preparing people for a single short-term contract.
Infrastructure is only part of the answer
Caithness has other advantages, including its established energy expertise, its history of nuclear-related work at Dounreay and its position within Scotland's expanding electricity network.
But infrastructure investment alone cannot solve every economic challenge facing the area.
Businesses also need good transport links, reliable digital connectivity, suitable premises, access to finance and a workforce able to meet their needs. Housing and public services matter too, particularly if employers want to attract workers and families to settle locally.
There is also a wider question about how much of the value generated by Scotland's energy resources remains in the communities that host the infrastructure.
Local employment, procurement, community benefit funds and long-term investment can all contribute, but they serve different purposes. Community funding is not a substitute for employment, and temporary construction activity is not the same as a diversified local economy.
Turning a construction boom into a lasting legacy
The Spittal to Peterhead link is a major engineering project, and the establishment of the Bower Quarry compound is an important milestone for Caithness.
The challenge now is to make the most of the opportunities it creates.
That means looking beyond headline investment figures and asking what the project means for local workers, suppliers and communities. It also means planning for the period after construction, when the temporary economic boost will begin to fade.
Caithness has the opportunity to build on its energy expertise and develop a stronger role in the industries supporting Scotland's electricity system.
The test of success will not simply be whether the cables are installed on time. It will also be whether local businesses become stronger, residents gain useful skills and more people can build sustainable careers without having to leave the area.
The investment is welcome. The next task is to ensure that its economic benefits reach as far as possible into the local community.