ScottishPower, through its parent company Iberdrola, has secured £600 million in financing from the National Wealth Fund to support the development of Eastern Green Link 4 (EGL4), a major electricity interconnector designed to strengthen the United Kingdom’s energy security and advance its Clean Power goals. EGL4 is a new 2 GW High Voltage Direct Current (HVDC) subsea link that will transmit domestically generated renewable energy from Scotland to high-demand regions in England. Stretching 530 kilometres between Fife and Norfolk, the cable will be capable of transporting enough electricity to power approximately 1.5 million UK homes. By helping move clean energy from where it is produced to where it is needed, EGL4 will significantly reduce constraint costs and support a more efficient national grid.
Large-scale, bidirectional subsea infrastructure projects such as EGL4 play an essential role in reinforcing the UK’s energy independence. By reducing reliance on imported fossil fuels—whose prices are vulnerable to international volatility—these projects help stabilise electricity costs for both households and businesses. The new financing builds on the National Wealth Fund’s earlier £600 million loan provided in May 2025 to support seven of ScottishPower’s priority network initiatives. The continued collaboration between ScottishPower and the National Wealth Fund demonstrates how public–private partnerships can drive critical investment in national grid infrastructure and accelerate the transition to lower-cost, homegrown renewable energy.
In its recent strategic plan, the National Wealth Fund identified electricity networks as a priority investment area. As a public finance institution, it is able to offer more flexible, long-term lending structures, enabling ScottishPower to better match its financing profile with the long asset lifespans typical of major grid projects. With the National Energy System Operator estimating that £58 billion will be necessary by 2035 to deliver a clean power system for Great Britain, the Fund aims to help expand the capital available to the sector. This new financial support also allows the Iberdrola Group to continue advancing its extensive investment programme in the UK.
Between now and 2028, the Group plans to invest £12 billion (€14 billion) in distribution and transmission networks to support growing electrification and rising electricity demand. Chancellor Rachel Reeves said that the investment demonstrates the purpose of the National Wealth Fund: to enable strategic government-backed investment that strengthens the UK’s future energy system, boosts security, and helps lower energy bills. She noted that the government’s economic approach—centred on stability, investment, and reform—aims to build a stronger and more secure economy for citizens across the country.
Oliver Holbourn, CEO of the National Wealth Fund, stated that supporting nationally important projects like EGL4 underlines the Fund’s commitment to ensuring that the UK’s energy infrastructure is prepared for the future. He emphasised that the financing will help ScottishPower accelerate delivery of key grid upgrades and unlock more clean energy for households and businesses. Keith Anderson, CEO of ScottishPower, said that the company is pleased to deepen its relationship with the National Wealth Fund. He highlighted that projects such as EGL4 are essential for advancing the Government’s Clean Power 2030 pathway, accelerating electrification, supporting economic growth, and improving energy security.
Energy Minister Michael Shanks reinforced the importance of grid upgrades, noting that improved infrastructure will help reduce exposure to fossil fuel price fluctuations and maximise the value of the UK’s low-cost renewable energy. He added that ScottishPower’s network investments are also creating jobs, with the company preparing to double its transmission workforce in central and southern Scotland. Douglas Alexander, the Scottish Secretary, said the major investment reflects the UK Government’s commitment to essential grid infrastructure such as this subsea power link. He emphasised that investments like EGL4 are central to driving economic growth and supporting a broader national renewal agenda.
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