ScottishPower, through its parent company Iberdrola, has secured $800 million (£600 million) in financing from the UK National Wealth Fund for the Eastern Green Link 4 (EGL4) subsea electricity interconnector. The 530 km High Voltage Direct Current (HVDC) link, running from Fife, Scotland, to Norfolk, England, will have a capacity of 2 GW, enough to supply electricity to around 1.5 million homes.

The project is intended to transport renewable energy from Scotland to areas of high demand in England, reduce constraint costs, and support the government’s Clean Power 2030 targets. It also forms a key part of efforts to reinforce UK energy security and reduce dependence on imported fossil fuels.

Chancellor Rachel Reeves commented: “This investment will build the energy infrastructure of tomorrow, strengthen our energy security, and help bring down bills.”

Keith Anderson, CEO of ScottishPower, emphasized the broader impact: “Projects like EGL4 are meeting our shared goals of accelerating electrification, boosting the UK economy and delivering energy security.”

From the public finance side, Oliver Holbourn, CEO of the National Wealth Fund, explained: “By supporting nationally significant projects like Eastern Green Link 4, we are demonstrating our commitment to strengthening our national infrastructure… Our financing will support Scottish Power to go further and faster to deliver crucial grid upgrades and in doing so unlock clean energy for homes and businesses across the country.”

EGL4 builds on a $800 million (£600 million loan) provided by the fund in 2025 and is part of Iberdrola’s $16 million (£12 billion) investment plan for UK electricity networks through 2028. ScottishPower also intends to double its transmission workforce in central and southern Scotland to support construction and ongoing operations.

As a critical component of the UK’s energy transition, EGL4 combines public and private investment to expand renewable energy integration, strengthen the grid, and deliver long-term economic and energy security benefits.

Source: nationalwealthfund.org.uk