The NWF’s investment is part of a £1.35 billion financing package, with £600 million (approximately €713.5 million) from the NWF and the remainder from commercial banks, led by Bank of America as the Sole Debt Arranger. This funding supports Iberdrola’s plan, through its subsidiary ScottishPower, to invest £24 billion by 2028 in the UK’s electricity network and renewable energy infrastructure. The NWF stated: “Our commitment will help mobilize private finance to ensure the UK meets its Clean Power 2030 Action Plan.”
The projects include the Eastern Green Link (EGL) 1 and 4 interconnectors, connecting Scotland to North-East England and Norfolk. Additionally, the investment will fund grid enhancements at five locations in Scotland, involving new substations, overhead line reconfiguration, and upgraded transmission cables. These upgrades are part of a broader effort to strengthen the UK’s transmission network, enabling 50 gigawatts of offshore wind generation by 2030 and supporting a net-zero economy by 2050.
John Flint, NWF’s CEO, emphasized: “Upgrading the power grid is one of the most significant barriers to decarbonising our economy, and the scale of investment needed to address this challenge is substantial. Our financing will support some of the most vital grid upgrades that will have a major impact on the transition to a renewables-based electricity system and help address the grid constraints that make electricity more expensive for businesses and consumers.”
The National Energy System Operator estimates that £60 billion in investment is needed by 2030 to achieve a clean power system. Construction on EGL1 began in February, though the project faced a 16-month delay due to supply chain challenges. The UK energy regulator, Ofgem, is reviewing a potential penalty exemption for the joint venture developing EGL1.
