The Scottish Government funding will be used by the company to build six new feeder stations across the network’s strategic sites.
Network Rail will also upgrade another nine sites to enhance the infrastructure for the running of electrically-driven passenger and freight traffic.
Under phase one, nine upgrades will be conducted to traction power infrastructure locations on the railway across the central belt, Scottish Borders, as well as Fife.
The new connections to the national grid through the feeder stations will boost the total capacity of the 25kV electrified network.
This move will cut down the railway’s carbon footprint through the elimination of diesel passenger trains from the network besides supporting future passenger and freight growth.
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SPL Powerlines has secured a contract to carry out the initial phase of work.
The investment is part of the Scottish Government’s pledge to decarbonise the passenger rail network by 2035.
Scottish Government Transport Minister Jenny Gilruth said: “Increasing power supply into the Scottish railway network is critical to enabling our ambitions to run more cleaner and greener electric trains.
“Upgrading the power supply network will enable the introduction of electric trains on services to East Kilbride and Barrhead, on the Borders line and across Fife but will also support increased traffic on existing routes such as the East Coast Mainline.”
Last month, Network Rail began new digital signalling trial on the Northern City Line.