UK energy operator sticks with Palantir in £21M direct award
Proprietary platform keeps incumbent in place while NESO prepares a future competition
Britain's publicly owned National Energy System Operator (NESO) has awarded US spy-tech firm Palantir a £21.2 million contract without competition. The contract, which includes VAT, will extend for a period of six months, with potential extensions until July 31, 2028. NESO is responsible for coordinating and planning Great Britain's electricity and gas systems, and is wholly owned by the government but funded through regulated industry charges.
NESO stated that it needs Palantir's support to avoid disruptions to customer-facing services and regulatory obligations. Palantir's expertise and technical knowledge are critical to maintaining and supporting the existing solution, NESO noted. Nesos contract with Palantir began in March 2023, but this was not publicly disclosed at the time as it was still part of privately owned National Grid.
The new contract is anticipated to begin on September 8, 2026, and end on July 31, 2027, with options for further extensions. NESO has also started discussions with suppliers about a new Strategic Enterprise Modelling Capability, which would provide enterprise-wide modeling, decision support, audit trails, and scenario comparison tools.
Palantir expressed pride in supporting NESO's efforts to improve energy efficiency, reduce costs, and transition to net zero.
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