ScottishPower has taken a decisive step in the United Kingdom’s energy transition by securing GBP 1.35 billion in financing to modernise the national electricity grid and enable greater integration of renewable energy. This investment will accelerate the delivery of the government’s Clean Power 2030 plan while reducing electricity costs and alleviating grid congestion.
The financial package, led by Bank of America as sole debt arranger, includes the participation of major financial institutions such as BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest, and Banco Sabadell. A standout feature of this agreement is the GBP 600 million contribution from the National Wealth Fund (NWF), underscoring the government’s commitment to developing a cleaner and more efficient energy infrastructure.
“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,” states the Secretary of State for Energy, Ed Miliband.
Key projects benefitting from this capital injection include the Eastern Green Link (EGL) 1 and 4, strategic corridors bridging Scotland and England to transport large volumes of clean energy from production centres to areas of highest demand.
The investment also covers improvements at five strategic locations across Scotland, including the development of new substations, reconfiguration of overhead lines, and modernisation of transmission cables, all of which are critical to enhancing the grid’s capacity and reliability.
According to the National Energy System Operator (NESO), achieving a fully clean energy system by 2030 will require investment totalling GBP 60 billion. With this financing secured, ScottishPower positions itself as a key player in meeting this ambitious target.
In addition to its environmental impact, this investment carries significant social and economic benefits. The grid modernisation programme will not only reduce greenhouse gas emissions but also support the creation of skilled jobs across the regions involved, boosting local economies and strengthening the clean energy supply chain.
As part of the Iberdrola Group, ScottishPower further consolidates its leadership in the UK’s energy transition, providing concrete solutions for decarbonising the energy matrix and aligning with national climate goals in the short and medium term.
