Clean energy major Iberdrola, the largest electricity company in Europe and one of the two largest worldwide, has announced plans to more than double its UK investment plans, ahead of the UK’s International Investment Summit in London next week (14 October).
Through its ScottishPower business, Iberdrola has invested £30 billion in the UK over the last 15 years driven by the country’s clear and stable policies and its predictable regulatory frameworks.
On top of this, after the Electricity North West (ENW) integration announced this summer, the UK has already become the Group’s largest investment destination to 2026. And, given Britain’s significant power demand growth prospects and the energy policies set out to promote Net Zero, industrialization and electrification, Iberdrola is now setting out a new plan to upweight and accelerate investment in the UK that could reach £24bn between 2024-2028, doubling its previous plan to invest £12bn over the same period.
With the GB electricity grid needing the biggest rewiring ever seen, two thirds of this figure would be directed to transmission and distribution networks:
- Transmission investments will increase following the significant upgrades required in the country under the RIIO-T3 framework, to be approved in 2025. Investments will include, for instance, the new subsea interconnection Eastern Green Link 1.
- In power distribution, ScottishPower is in the latest stages to complete the integration of ENW, the distribution network company covering the north west of England, and will continue investing to maximize security of supply and resilience, connect more renewables and promote the electrification of energy uses.
In addition, ScottishPower will put in service the East Anglia 3 offshore wind farm, currently under construction, as well as East Anglia 2, a c.£4bn shovel-ready offshore windfarm which was recently awarded a contract in the AR6 auction and will provide enough green energy to power the equivalent of c.1 million homes. The company also continues investing in new onshore wind, solar PV and battery projects.
Iberdrola Executive Chairman and ScottishPower Chairman Ignacio Galán joins Prime Minister Keir Starmer in Scotland today to make the announcement, as the Prime Minister convenes the first Council of Nations and Regions, bringing together First Ministers, Northern Ireland’s First Minister and Deputy First Minister and regional mayors from across England with the aim of boosting growth and living standards in every part of the UK.
Iberdrola’s investment announcement comes ahead of the UK Government’s International Investment Summit in London on 14 October, which will gather UK leaders, high-profile investors and businesses from across the world to discuss deepening partnership to drive investment and growth.
UK Prime Minister Keir Starmer said:
“Working people up and down the country will reap the benefits of Iberdrola’s crucial investments in our green energy sector.
“Iberdrola choosing the UK as its largest location for investment is a major boost for our economy, and a clear vote of confidence in this government’s ambitious clean energy mission and relentless drive for growth.
“We are creating the conditions for businesses to thrive, and the International Investment Summit next week will be a springboard for every part of the UK to be an engine of innovation and investment – delivering opportunity for all.”
Iberdrola Executive Chairman Ignacio Galán said: “After having invested more than £30bn in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024-28, reaching up to £24bn.
“This is a vote of confidence in the UK’s clear and stable policies and is a major boost to the economy and the path towards green energy security and Net Zero. The benefits of electrification in terms of energy security, industrial development, jobs and decarbonisation are shared ambitions of the UK and Iberdrola.”
Notes to Editors:
In November 2023 Iberdrola and ScottishPower confirmed £12bn of investment for the years 2024 to 2028. This has now been increased, reaching up to £24bn of investment for the years 2024 to 2028.
