Iberdrola to Double Investment in UK to $31B

Spanish energy firm Iberdrola is planning to more than double its investment in the United Kingdom (UK) ahead of the International Investment Summit in London next week.

Iberdrola anticipates boosting its investment in the UK to around $31.28 billion (GBP 24 billion), doubling its previous plan to invest $15.64 billion in the same period.

Iberdrola has invested $39.10 billion (GBP 30 billion) in the UK over the last 15 years through its ScottishPower business, “driven by the country’s clear and stable policies and its predictable regulatory frameworks,” the company said in a news release. It also cited “Britain’s significant power demand growth prospects and the energy policies set out to promote Net Zero, industrialization and electrification”.

After the Electricity North West (ENW) integration was announced in the summer, the UK had already become Iberdrola’s largest investment destination until 2026, the company noted.

Iberdrola said around two-thirds of the investment would be allotted to transmission and distribution networks. Transmission investments will increase following the significant upgrades required in the country under the RIIO-T3 framework, to be approved in 2025. The company cited the new subsea interconnection Eastern Green Link 1 as an example.

In power distribution, ScottishPower is in the latest stages of completing the integration of ENW, the distribution network company covering the northwest of England, and will continue “investing to maximize security of supply and resilience, connect more renewables and promote the electrification of energy uses,” according to the release.

ScottishPower will also put into service the East Anglia 3 offshore wind farm, currently under construction, as well as East Anglia 2, a shovel-ready offshore wind farm that was recently awarded a contract in the AR6 auction and will provide enough green energy to power the equivalent of around 1 million homes. The company continues to invest in new onshore wind, solar photovoltaic (PV), and battery projects.

Prime Minister Keir Starmer said, “Working people up and down the country will reap the benefits of Iberdrola’s crucial investments in our green energy sector. Iberdrola choosing the UK as its largest location for investment is a major boost for our economy, and a clear vote of confidence in this government’s ambitious clean energy mission and relentless drive for growth”.

“We are creating the conditions for businesses to thrive, and the International Investment Summit next week will be a springboard for every part of the UK to be an engine of innovation and investment – delivering opportunity for all,” Starmer added.

Iberdrola Executive Chairman Ignacio Galán said: “After having invested more than [GBP 30 billion] in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024-28, reaching up to [GBP 24 billion].

“This is a vote of confidence in the UK’s clear and stable policies and is a major boost to the economy and the path towards green energy security and Net Zero. The benefits of electrification in terms of energy security, industrial development, jobs and decarbonization are shared ambitions of the UK and Iberdrola,” he remarked.

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