Ahead of the International Investment Summit in London next week, Iberdrola has announced a significant increase in its UK investment plans. The Spanish energy developer, through its ScottishPower business, plans to invest up to £24 billion between 2024 and 2028, doubling its previous commitment of £12 billion over the same period. This announcement follows its recent acquisition of Electricity North West (ENW), making the UK the company's largest investment destination.
Iberdrola has invested £30 billion in the UK over the last 15 years, driven by the country's clear energy policies and predictable regulatory frameworks. The increased investment reflects Britain's growing power demand and the government's focus on net-zero goals, industrialisation, and electrification. A significant portion, approximately two-thirds, will be allocated to upgrading the transmission and distribution networks, particularly as the UK prepares for a large-scale grid overhaul.
The company will also focus on major projects, including the Eastern Green Link 1 subsea superhighway between Scotland and England and further integration of ENW. Offshore wind projects are another key focus, with the 1.4 GW East Anglia 3 wind farm under construction and the 900 MW East Anglia 2 set to power one million homes.
Iberdrola's executive chairman, Ignacio Galán, emphasised the UK's policy stability as a key factor in the company's decision: “After having invested more than £30bn in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024-28, reaching up to £24bn.”
Industry experts have welcomed the announcement, with RenewableUK's Ana Musat calling it a “huge vote of confidence in the UK's energy market.” Musat also emphasised the need for continued government reforms to maintain investor confidence and accelerate the energy transition without increasing investment costs.
