In Short : The investment is expected to contribute to the enhancement and modernization of the UK’s grid infrastructure, ensuring that it can effectively accommodate the increasing capacity of renewable energy sources. Additionally, Iberdrola’s investment in renewables will likely lead to the development of new wind and solar projects, further bolstering the UK’s clean energy capacity and reducing its reliance on fossil fuels.
In Detail : Spanish renewables major Iberdrola plans to invest £12 billion (€13bn) into the UK’s renewable energy infrastructure in the next four years as it expands on existing commitments.
The company said the invetsment in the UK’s electricity grid and renewable generation capacity would take place between 2024 and 2028.
The announcement followed news of the UK government’s new ‘connection action plan’ designed to rapidly improve the country’s grid infrastructure that won praise from energy companies and regulators.
“Iberdrola is proud to play our part in supporting the UK’s leadership position on decarbonisation. Over the past 15 years, we have invested close to £30 billion in bringing the benefits of greener and more secure energy to the UK,” said Ignacio Galán, CEO of Iberdrola.
Iberdrola explained that the total investment included £2 billion (€2.3bn) the company had already spent as part of a previous plan to spend £6.7 billion (€7.7bn) in the country between 2023-25.
The latest announcement confirmed an additional £7 billion (€8.1bn) investment plan to take effect between 2024 and 2028, pushing total investment to £12 billion.
Around two thirds of the 2024-2028 programme will be dedicated towards improving transmission and distribution electricity networks in the UK, the company said.
Among its targets for investment will be Eastern Green Link 1 (EGL1) — a 2GW, HVDC “electrical superhighway” transmission project to be built between East Lothian in Scotland and County Durham, in England.
EG1 is being co-developed by Scottish Power, an Iberdrola subsidiary company.
Additional commitments include continued investment in the 1.37GW East Anglia Three wind project planned off the coast of Suffolk — also being developed by Scottish Power, which owns 100% of the wind farm.