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The largest investment by the Group to date
Iberdrola to invest 14B in electricity grids in the United Kingdom
The increase in electricity demand in all sectors, driven by greater activity and the electrification of energy uses, requires huge investments in new infrastructure. This plan, the largest ever committed to by Iberdrola, is the result of a clear energy policy on the part of the British government and constructive dialogue with the regulator, and will enable us to continue building modern, flexible and resilient networks that facilitate meeting growing demand, guaranteeing energy security and integrating more clean energy
Ignacio S. Galán
Executive Chairman of Iberdrola
Hunterston converter station. Western Link infrastructure
- The plan focuses on building new submarine connections between Scotland and England and Wales
- Investments in this area have tripled in response to the UK's energy policy which pushes electrification
- Today the British regulator approved the framework applicable to these investments for the next five years following the usual process of consultation with all stakeholders
- The investments will create more than 12,000 jobs and contribute €2.3B to the British economy annually
- The UK grids business is consolidating its position as Iberdrola's main recipient of investment for the coming years
Iberdrola's British subsidiary, ScottishPower, today received approval from the regulator, Ofgem, to invest around €14 billion in its networks in the United Kingdom, mainly in new interconnections between Scotland and England and Wales.
The British regulator today also approved the remuneration framework applicable to electricity transmission until 2031, known as RIIO T3, following a consultation with all stakeholders that has lasted nearly two years.
These new investments, which will be developed until 2031, constitute the largest Iberdrola Group investment in its history and will more than triple those made in this business in the previous regulatory period, in line with the electrification targets set out in the UK government's Clean Power 2030 Plan.
The main projects in this investment programme are two new high-voltage direct current underwater connectors between Scotland and England, Eastern Link 1 and Eastern Link 2. Together with another submarine cable between Scotland and Wales, Western Link 2, these three projects will transport more than 500 kV of power through 1,100 kilometres of underwater cable and will require six converter substations to be built.
The plan will increase the grid's capacity to incorporate new electricity demand, promoting industrialisation and economic growth, enable the incorporation of new renewable capacity and reduce the impact of current system restrictions on electricity bills. It is estimated that the plan will have a positive impact of €2.3B a year on the country's economy and will create some 12,000 jobs in the value chain. The company has already launched a procurement plan for suppliers worth more than €6B.
With the approval of these investments, the United Kingdom is consolidating its position as the Iberdrola Group's main investment destination, with a total of €20B between 2025 and 2028, mainly in electricity grids.
Iberdrola Executive Chairman Ignacio Galán said ‘The increase in electricity demand in all industries, driven by more activity and the electrification of power use, requires huge investments in new infrastructure. This plan, the largest ever Iberdrola has undertaken, is the end result of a clear energy policy on the part of the British government and constructive dialogue with the regulator, and will enable us to continue building modern, flexible and resilient grids that allow us to meet growing demand, guarantee energy security and include more clean energy.’