The National Wealth Fund (NWF) has committed £600 million to support Iberdrola and ScottishPower in upgrading the UK electricity grid, a move set to create hundreds of jobs and accelerate the country’s transition to clean energy.
A £1.35 billion financing package, led by Bank of America as Sole Debt Arranger and supported by BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest, and Banco Sabadell, will fund critical UK electricity grid upgrades to help meet the government’s Clean Power 2030 objectives. The financing will support the delivery of seven key transmission projects by ScottishPower and will be facilitated by NWF’s involvement in the initiative.
Transforming the Grid for Clean Energy Growth
The investment will directly support the delivery of seven of ScottishPower’s priority transmission projects, designed to:
- Increase the UK’s capacity to transport renewable energy
- Lower electricity costs for consumers and businesses by reducing grid constraint costs
- Enhance system resilience and reliability
- Unlock economic growth and decarbonization across the country
This financing responds to urgent infrastructure needs outlined by the National Energy System Operator (NESO), which estimates that up to £60 billion in investment is required by 2030 to meet the UK Government’s Clean Power 2030 Action Plan.
Strategic Interconnectors: Eastern Green Link Projects
NWF’s investment plays a pivotal role in ScottishPower’s development of the Eastern Green Link (EGL) 1 and 4projects, which will:
- Act as a clean energy bridge between Scotland and England
- Unlock constrained renewable energy reserves by boosting north-to-south transmission
- Use high-voltage direct current (HVDC interconnectors) from Scotland to the North-East of England and Norfolk
- Reduce congestion and constraint costs—especially across the most constrained boundary in Great Britain
NESO has identified EGL1 as a critical project for delivering the UK’s 2030 clean power targets.
These enhancements will ensure the grid can absorb, store, and distribute more clean power—paving the way for a future-proof electricity system.Chancellor of the Exchequer, Rachel Reeves, said: “Upgrading our energy infrastructure is good news for businesses, households, and the economy. It will bring down bills, put more money in working people’s pockets and enable businesses to expand. That is why I am so pleased to see the National Wealth Fund securing deals such as this.
“This is our Plan for Change in action, delivering long term economic growth and the jobs of the future whilst making Britain a clean energy superpower.”
Energy Secretary Ed Miliband said: “We need to get Britain building so we can deliver on our Plan for Change to protect billpayers, unleash growth and create jobs.
“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.”
Keith Anderson, CEO of ScottishPower, said: “Today’s announcement is a welcome step forward in the delivery of the Government’s Clean Power 2030 pathway. Working together to drive forward these critical investments is an important catalyst for economic growth, as we make progress in bringing more renewables onto the system to meet the increasing demand for electrification.”
