Iberdrola’s British subsidiary, ScottishPower, has secured regulatory approval from Ofgem to invest approximately €14 billion in the UK’s electricity networks over the next several years. The plan prioritizes new submarine high voltage connections between Scotland, England, and Wales, aligning with the UK’s energy policy to accelerate electrification.
– Ofgem greenlit the RIIO T3 remuneration framework, applicable until 2031, following a two year stakeholder consultation.
– This marks the largest investment in Iberdrola’s history, tripling previous spending in the UK grid sector.
– Eastern Link 1 & 4: Two new high voltage direct current (HVDC) underwater links between Scotland and England.
– Western Link 2: A submarine cable connecting Scotland and Wales.
– Combined, these projects will deploy 1,100 km of subsea cables, six converter substations, and transmit over 500 kV of power.
– Expected to contribute €2.3 billion annually to the UK economy.
– Will create 12,000 jobs across the supply chain.
– ScottishPower has already initiated a €6B procurement plan for suppliers.
– Expands grid capacity to support rising electricity demand and renewable integration.
– Reduces system constraints, lowering energy bill pressures.
– Reinforces the UK as Iberdrola’s top investment hub, with €20B planned between 2025–2028.
Iberdrola’s Executive Chairman, Ignacio Galán, emphasized:
“The surge in electricity demand, driven by industrial growth and electrification, necessitates massive infrastructure investments. This plan our largest ever reflects the UK’s clear energy policy and collaborative regulatory dialogue. It ensures modern, resilient grids to meet demand, bolster security, and integrate more clean energy.”
The UK’s Clean Power 2030 Plan underscores the urgency of grid modernization to support decarbonization. Iberdrola’s investments will enhance energy security, enable renewable expansion, and drive economic growth solidifying the country’s transition to a low carbon future.
Source: Iberdrola
