Iberdrola to invest €14 billion in electricity grids in the United Kingdom
Iberdrola's British subsidiary, ScottishPower, has received approval from the regulatory body, Ofgem, to invest around €14 billion in its networks in the United Kingdom, mainly in new interconnections between Scotland and England and Wales.
The British regulator has also approved the remuneration framework applicable to electricity transmission until 2031, called RIIO T3, after a process of interaction with all related parties that has lasted nearly two years.
These new investments, which will be developed until 2031, constitute the largest investment made by the Iberdrola Group in its history and will more than triple those made in this activity in the previous regulatory period, in line with the electrification targets set out in the UK Government's Clean Power 2030 Plan (Clean Power 2030 Plan) of the United Kingdom Government.
The main projects in this investment programme are two new high-voltage direct current submarine interconnections between Scotland and England, Eastern Link 1 and Eastern Link 4. Together with another submarine cable between Scotland and Wales, Western Link 2, these three projects will transport power at over 500 kV through 1,100 kilometres of submarine cable and will require the construction of six converter substations.
The plan will increase the capacity of the grid to incorporate new electricity demand, promoting industrialisation and economic growth, enable the incorporation of new renewable capacity and reduce the impact of current system constraints on electricity bills. The plan is estimated to have a positive impact of €2.3 billion per year on the country's economy and will boost the creation of some 12,000 jobs in the value chain. To this end, the company has already launched a plan to purchase more than £5.5 billion from suppliers.
With the approval of these investments, the United Kingdom is consolidating its position as the Iberdrola Group's main investment destination, with a total of £17 billion between 2025 and 2028, mainly in electricity networks.
Iberdrola's chairman, Ignacio Galán, said: "The increase in electricity demand in all sectors, driven by greater activity and the electrification of energy uses, requires huge investments in new infrastructure. This plan, the largest ever committed to by Iberdrola, is the result of a clear energy policy on the part of the British government and constructive dialogue with the regulator, and will enable us to continue building modern, flexible and resilient networks that facilitate meeting growing demand, guaranteeing energy security and integrating more clean energy."
