Britain’s National Wealth Fund will provide a £600 million loan to ScottishPower, owned by Spain’s Iberdrola, to accelerate critical upgrades to the UK’s electricity transmission network, the two entities confirmed in a joint statement on Thursday.
The funding, part of a broader £1.35 billion financing package, aims to support Britain’s target of largely decarbonising its power sector by 2030. The announcement follows a week after severe blackouts affected Spain and Portugal, underscoring the urgent need for investment in Europe’s ageing electricity infrastructure.
“This investment will help 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 Energy Security and Net Zero Secretary Ed Miliband.
The funding will support seven of ScottishPower’s priority grid transmission projects, including the Eastern Green Link 1 and 4, which are designed to transport renewable energy generated in Scotland to demand centres in England. The upgrades will enhance grid capacity and resilience while enabling greater integration of wind and solar power.
In Scotland, the investment will fund new substations, the reconfiguration of overhead lines, and improvements to transmission cables across five key locations, according to the statement.
Britain’s National Wealth Fund, established in 2024, aims to stimulate economic growth through targeted investments in clean energy and infrastructure. The remaining portion of the financing is backed by a consortium of lenders led by Bank of America, which also acted as sole debt arranger. Participating banks include BankInter, BNP Paribas, CaixaBank, Lloyds Bank, NatWest, and Banco Sabadell.
