ScottishPower secures £600m for transmission grid projects
Image courtesy ScottishPower
ScottishPower has secured £600 million ($801.2 million) in financing from the National Wealth Fund (NWF), the UK’s sovereign wealth fund, for projects that will help upgrade the British power grid.
The Iberdrola-owned utility says the financing will support the delivery of seven priority transmission grid upgrade projects to help facilitate more renewable energy, reduce constraint costs, lower the cost of electricity for businesses and consumers, and unlock growth across the UK.
Namely, the financing will support ScottishPower’s development of the Eastern Green Link (EGL) projects 1 and 4, which will scale up the UK’s capacity to transport clean energy via interconnectors from Scotland to the North-East of England and Norfolk.
The financing will also deliver grid upgrades in five key locations across Scotland including the building of new substations, overhead line reconfiguration and the improvement of overhead transmission cables to increase both capacity and resilience.
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Commenting in a release was chancellor of the Exchequer, Rachel Reeves: “Upgrading our energy infrastructure is good news for businesses, households, and the economy. It will bring down bills, put more money in working people’s pockets and enable businesses to expand. That is why I am so pleased to see the National Wealth Fund securing deals such as this.
“This is our Plan for Change in action, delivering long term economic growth and the jobs of the future whilst making Britain a clean energy superpower.”
Said energy secretary Ed Miliband: “We need to get Britain building so we can deliver on our Plan for Change to protect billpayers, unleash growth and create jobs.
“This investment will help to deliver clean power by 2030 by speeding up grid upgrades – bringing cheaper, homegrown renewable power into homes and businesses, while supporting skilled jobs across the country.”
Scottish secretary Ian Murray said: “This significant investment in Scotland’s power grid demonstrates our government’s unwavering commitment to becoming a clean energy superpower. By expanding grid capacity through these crucial infrastructure projects, we’re not only addressing one of our biggest barriers to decarbonisation but positioning Scotland as a powerhouse of Britain’s clean energy revolution.
“The National Wealth Fund’s investment in ScottishPower’s transmission projects represents our Plan for Change in action – delivering the modern energy infrastructure Scotland and the UK need to thrive in a clean energy future.”
NWF will also help mobilise private finance in support of Iberdrola’s plans to invest £24 billion ($32.1 billion) up to 2028 – through ScottishPower – into the UK’s electricity network and renewable generation infrastructure.
The investment forms part of a £1.35 billion ($1.8 billion) financing package, led by Bank of America as Sole Debt Arranger and including Bank of America, BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest and Banco Sabadell as lenders.
In its independent advice to the Government on the pathway towards the 2030 ambition, the National Energy System Operator (NESO) estimates that up to £60 billion ($80.1 billion) of investment is required in the years to 2030 to support the delivery of a clean power system.
