UK government to lend ScottishPower £600 million for UK power grid upgrades

The UK government, through its National Wealth Fund, will lend £600 million to ScottishPower, owned by Iberdrola, to finance upgrades to the nation’s power grid.

This initiative follows recent widespread blackouts in Spain and Portugal, which have highlighted the critical need for substantial investment in Europe’s electricity infrastructure.

The government’s plan to largely decarbonize the power sector by 2030 necessitates these grid upgrades to integrate new renewable energy sources like wind and solar power. Energy Minister Ed Miliband stated that the investment will “help to deliver clean power by 2030” and bring “cheaper, homegrown renewable power into homes and businesses,” while also supporting job creation.

The funding will expedite seven of ScottishPower’s priority transmission grid upgrade projects. These include the Eastern Green Link projects 1 and 4, which are crucial for transporting renewable energy generated in Scotland to England, and grid improvements across five Scottish locations. These upgrades will involve building new substations, reconfiguring overhead lines, and enhancing the capacity and resilience of existing overhead transmission cables.

Established in 2024, Britain’s National Wealth Fund, aims to stimulate economic growth and invest in clean energy projects. The £600 million loan is part of a larger £1.35 billion financing package arranged by Bank of America, with additional lenders including BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest, and Banco Sabadell.

Widespread power outages hit Spain, Portugal, France. Cyberattack can’t be ruled out