Iberdrola, the Spanish energy group and owner of Scottish Power, has announced a £24 billion investment to improve the UK’s energy infrastructure over the next five years.
This marks a doubling of its commitment to Britain and makes Britain the largest destination for Iberdrola’s global investments.
The investment will focus on improving the UK’s high-voltage cables, increasing the capacity of electricity transmission and distribution networks and building new wind farms. The upgrades are aimed at meeting growing demand for clean energy, which is expected to increase by 50% by 2035 as Britain switches to electric vehicles and heat pumps.
Ignacio Galán, executive chairman of Iberdrola, described the move as a “vote of confidence” in Britain, citing greater regulatory stability and clear policy direction as key factors. Keith Anderson, CEO of Scottish Power, noted that Britain’s ambitious targets to decarbonise its electricity system by 2030, combined with plans to overhaul the planning system, have provided the clarity needed for large-scale investment.
Of the £24 billion, around two-thirds will be spent on improving the UK’s electricity grid, mainly in Scotland, where renewable energy is concentrated. This includes a new undersea superhighway, the Eastern Green Link 1, connecting Torness in Scotland to Hawthorn Pit in England. The remaining £4 billion will fund construction two new wind farms off the coast of East Angliawhich will provide electricity to approximately one million households.
This announcement comes ahead of the first International Investment Summit in London, where international business leaders will meet to explore new opportunities in the country. Ministers hope the summit will deliver deals worth tens of billions of pounds for the British economy.
With global concerns about lost investment due to US competition following President Biden’s $369 billion Inflation Reduction Act, Anderson stressed that Britain’s strengths lie in providing stability in the regulations, transparency and a clear market framework for green energy projects.