Scottish Power owner Iberdrola commits £24bn to upgrade UK’s green energy infrastructure

Iberdrola, the Spanish energy group and owner of Scottish Power, has announced a £24 billion investment to develop the UK’s energy infrastructure over the next five years.

This represents a doubling of its commitment to Britain and makes the UK the largest destination for Iberdrola’s global investments.

The investment will focus on strengthening high-voltage cables in the UK, increasing the capacity of electricity transmission and distribution networks, and building new wind farms. The upgrades aim to meet growing demand for clean energy, which is expected to rise by 50% by 2035 as the UK switches to electric cars and heat pumps.

Ignacio Galán, CEO of Iberdrola, described the move as a “vote of confidence” in the UK, citing greater regulatory stability and a clear political direction as key factors. Keith Anderson, chief executive of Scottish Power, noted that the UK’s ambitious targets to decarbonise its electricity system by 2030, coupled with plans to reform the planning system, had provided the clarity needed for large-scale investment.

Of the £24 billion, about two-thirds will be spent on strengthening the UK’s electricity grid, especially in Scotland where renewable energy is concentrated. This will include a new subsea highway, Eastern Green Link 1, linking Torness in Scotland to Hawthorn Pit in England. The remaining amount of 4 billion pounds will finance its construction Two new wind farms off the coast of East AngliaIt is scheduled to supply about one million homes.

The announcement comes ahead of the UK’s first International Investment Summit in London, where international business leaders will gather to explore new opportunities in the country. Ministers hope the summit will secure deals worth tens of billions of pounds for the UK economy.

With global concerns about losing investment due to competition from the US, in the wake of President Biden’s $369 billion inflation reduction law, Anderson stressed that the UK’s strengths lie in providing regulatory stability, transparency and a clear market framework for green energy projects.