Iberdrola, Europe’s largest electricity company, has announced plans to double its investment in the UK to £24 billion between 2024 and 2028.
Through its ScottishPower subsidiary, Iberdrola has invested £30 billion in the UK over the past 15 years. In fact, following the integration of Electricity North West (ENW) announced this summer, the UK has become the group’s largest investment destination through 2026.
With significant power demand growth prospects and energy policies promoting net zero, industrialisation, and electrification, Iberdrola aims to accelerate its UK investment, doubling its previous plan of £12 billion over the same period.
Two-thirds of the new investment will be directed towards transmission and distribution networks. Transmission investments will increase due to significant upgrades required under the RIIO-T3 framework, set to be approved in 2025. Projects will include the new subsea interconnection Eastern Green Link 1.
In power distribution, ScottishPower is in the final stages of integrating ENW, the distribution network company covering the north west of England, and says that it will continue investing to maximise security of supply and resilience, connect more renewables, and promote the electrification of energy uses.
Additionally, ScottishPower will put into service the East Anglia 3 offshore wind farm, currently under construction, as well as East Anglia 2 – a £4 billion offshore wind farm recently awarded a contract in the AR6 auction, expected to provide enough green energy to power approximately one million homes. The company notes that it remains committed to investing in new onshore wind, solar PV, and battery projects.
Prime Minister Keir Starmer commented, “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.”
Ignacio Galán, Iberdrola Executive Chairman, added, “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.”
News of Iberdrola’s investment has already received positive reception from some within the industry, including Dave A. Roberts, Managing Director of VisNet.
Roberts commented, “This is an extremely welcome development, which is a clear signal of the UK’s commitment to decarbonisation and the progress that has been made in the last 12 months. Remember, it was only this time last year that we were urging former Prime Minister Rishi Sunak not to hold up the journey to net zero by delaying carbon reduction policies, such as the ban on combustion engine vehicles.
“Instead, we are encouraged to see the Government taking steps to facilitate investment that will deliver widespread benefits across the country’s energy infrastructure as a whole. In particular, we welcome the news that two thirds of this investment will be directed towards supporting the transmission and distribution networks, with a commitment to improving resilience and protecting supply.
“The UK’s electricity networks are facing unprecedented demand from the growth of low carbon technologies, such as electric vehicles and heat pumps – and while this is clearly a necessary part of the decarbonisation process, it is absolutely critical that we ensure the grid is fit-for-purpose and properly equipped to cope with the increased requirements. We are delighted to see that this vital part of the net zero puzzle is getting the support and investment that is needed.”