At peak construction, the project will employ a workforce of 100.
The contract award forms part of a programme by SSEN Transmission to reinforce the network in the area and facilitate the connection of more renewable energy to the national grid.
Balfour Beatty will build the 25,625m2 substation as well as all associated cabling and overhead line works.
Ian Currie, managing director of Balfour Beatty’s Power Transmission and Distribution business said: “Having secured 15 contracts through the Substation Delivery Framework since our appointment in 2013, we have seen our relationship with SSEN go from strength to strength.”
Russell Maxwell, SSEN transmission project manager, said: “The new substation at Peterhead is a key component in our reinforcement and improvement of the transmission network in the North East and East Coast of Scotland. Once complete, it will facilitate the connection of new renewable energy to supporting the transition to net zero emission.
“We are looking forward to building on the already strong working relationship we have with Balfour Beatty as we work together to deliver this important project.”
Works are due to begin later this year with completion scheduled for 2023.