The UK’s National Wealth Fund (NWF) has committed £600 million to support grid infrastructure upgrades by ScottishPower, the British subsidiary of Spanish energy group Iberdrola, in a move designed to accelerate the transition to clean electricity and support job creation.
The financing is part of a wider £1.35 billion package led by Bank of America, with participation from several other financial institutions including BNP Paribas, Lloyds Bank, and NatWest. The funding will support seven key transmission projects, aimed at enhancing capacity and resilience across the UK electricity network.
“This investment will help to deliver clean power by 2030 by speeding up grid upgrades – bringing cheaper, homegrown renewable power into homes and businesses, while supporting skilled jobs across the country,” said UK Energy Secretary Ed Miliband.
The projects will include the development of new substations, reconfiguration of overhead lines, and improvements to transmission cables in five locations across Scotland. They are also expected to ease grid congestion and lower electricity costs by facilitating the integration of more renewable energy sources.
Among the key developments is the Eastern Green Link (EGL) initiative—specifically EGL1 and EGL4—which will expand interconnector capacity between Scotland and England, enabling more efficient transport of clean energy from production to consumption centres.
“Upgrading the power grid is one of the most significant barriers to decarbonising our economy, and the scale of investment needed to address this challenge is substantial,” said John Flint, chief executive of the National Wealth Fund. “Our financing will support some of the most vital grid upgrades that will have a major impact on the transition to a renewables-based electricity system.”
The National Energy System Operator (NESO) has identified EGL1 as a critical infrastructure component for achieving the UK Government’s Clean Power 2030 targets. NESO estimates that as much as £60 billion in grid investment will be required by the end of the decade.
ScottishPower CEO Keith Anderson described the announcement as “a welcome step forward in the delivery of the Government’s Clean Power 2030 pathway,” adding that grid enhancements will be “an important catalyst for economic growth.”
Iberdrola plans to invest £24 billion in the UK through ScottishPower by 2028, with the NWF’s contribution intended to mobilise further private investment into the country’s energy infrastructure.
