He will oversee the technical development of the £760m Swansea Bay tidal power project.
McNaughton who brings 30 years’ experience of delivering major infrastructure in the UK and overseas will replace Steve Hollingshead, who is leaving to run J Murphy & Sons.
During his 17 years at Balfour Beatty he worked as chief operating officer and latterly chief executive officer before leaving after a string of profit warnings.
McNaughton said: “Every so often, the UK infrastructure industry witnesses a major project with the ability to redefine the sector worldwide.
“The Swansea Bay Tidal Lagoon is one such project, with a team and tier one supply chain that combines the best of British infrastructure with international expertise of the highest calibre.
“I am thrilled to return to the industry’s frontline to oversee its delivery.”
Mark Shorrock, chief executive of Tidal Lagoon Power, said: “Andrew has been one of the leading lights in UK infrastructure for many years.
“We both share a view that the UK has a critical need for a new generation of power assets. Our vision is to build a scalable blueprint for a new form of power asset – Swansea Bay Tidal Lagoon– and then deliver a series of tidal lagoons at a levelised cost of energy that is the same as nuclear power and combined cycle gas turbines.”
Tidal Lagoon Power is also planning a much bigger 22km scheme at Cardiff and feasibility work is underway on four other full-scale tidal lagoons at Newport, West Cumbria, Colwyn Bay and Bridgwater Bay.