Iberdrola more than doubles UK investment plan with network the key component

Iberdrola has announced plans to more than double its investment plan in the UK to approximately £24 billion ($15.7 billion) between 2024 to 2028.

According to the company, Europe’s largest electricity company and owner of ScottishPower, two thirds of the figure would be directed to transmission and distribution networks.

Specifically, 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, Iberdrola-owned ScottishPower is in the latest stages to complete the integration of ENW, the distribution network company covering the northwest of England, and will continue investing to maximise 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, an approximately £4 billion ($5.2 billion) shovel-ready offshore windfarm which will provide enough green energy to power the equivalent of 1 million homes.

The company also continues investing in new onshore wind, solar PV and battery projects.

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Commenting in a release was UK prime minister Keir Starmer: “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.”

Added Iberdrola executive chairman Ignacio Galán: “After having invested more than £30 billion 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 £24 billion.

“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.”

Days following the announcement, VisNet from EA Technology, a provider of network management solutions, welcomed the news.

Commented Dave A. Roberts, managing director of VisNet: “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.”

Added Roberts: “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.”