• Iberdrola’s UK subsidiary ScottishPower approved to invest €14B in new transmission infrastructure through 2031.
• Largest grid investment in Iberdrola’s history; supports Clean Power 2030 Plan and triples spending from the previous regulatory cycle.
• Programme expected to add €2.3B to the UK economy annually and create 12,000 jobs.

The UK energy regulator Ofgem has approved ScottishPower’s plan to invest around €14 billion ($15 billion) in transmission infrastructure over the next regulatory period, marking the single largest grid commitment in Iberdrola’s global portfolio. The approval finalises nearly two years of consultation under the RIIO-T3 framework, which will guide remuneration and investment rules through 2031.

Backed by rising electrification across industry, transport and residential sectors, the UK has become Iberdrola’s largest investment destination. The group expects to deploy €20 billion across the country between 2025 and 2028, predominantly into electricity networks that support security of supply and renewable load integration.

Iberdrola Executive Chairman Ignacio Galán said the system is at an inflection point, with demand climbing across sectors as the UK accelerates decarbonisation. “The increase in electricity demand in all industries, driven by more activity and the electrification of power use, requires huge investments in new infrastructure. This plan, the largest ever Iberdrola has undertaken, is the end result of a clear energy policy on the part of the British government and constructive dialogue with the regulator, and will enable us to continue building modern, flexible and resilient grids that allow us to meet growing demand, guarantee energy security and include more clean energy.”

Subsea interconnectors anchor growth strategy

The investment programme centres on new high-voltage direct current subsea links designed to move bulk renewable power from Scotland southward. Two major projects — Eastern Link 1 and Eastern Link 4 — form the core of the expansion, complemented by the Western Link 2 connector between Scotland and Wales.

Together, the three links will carry more than 500 kV across 1,100 kilometres of underwater cable and will require six new converter substations. When fully built, they are expected to open capacity for additional offshore wind, reduce curtailment, and ease constraints that currently push system balancing costs onto consumers.

Industrial growth is a secondary goal. By increasing headroom for electrified manufacturing, data centres and low-carbon industrial clusters, the government and regulator aim to link grid investment with regional employment, export competitiveness and long-term GDP gains.

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Economic impact and supply chain mobilisation

Iberdrola forecasts the initiative will create roughly 12,000 jobs across the value chain and contribute €2.3 billion per year to the British economy. A supplier procurement programme exceeding €6 billion has already begun, providing early visibility to contractors in cables, converters, grid engineering, port services and related manufacturing.

For investors, the scale of spending places UK transmission grids at the core of Iberdrola’s forward capital allocation. The company has more than tripled its previous grid investment levels in response to policy clarity around electrification, capacity market evolution and transmission remuneration under RIIO-T3.

The UK government’s Clean Power 2030 Plan sits behind that acceleration. By expanding high-voltage corridors, policymakers aim to address structural congestion that limits renewable buildout and heightens system volatility. More flexible capacity is expected to support grid stability as variable offshore wind grows as a share of supply.

Strategic implications for energy markets and climate finance

For C-suite energy leaders and sustainable finance institutions, the announcement reinforces that grid expansion — not generation alone — now defines the pace of decarbonisation. Scaled electrification requires long-distance power transfer, reinforced load centres, and revenue models able to carry multi-billion-euro capex.

The UK has provided clear regulatory anchoring through RIIO-T3, creating conditions for long-dated project finance and supply chain investment. With climate-aligned power systems increasingly dependent on interconnectors and transmission corridors, the Iberdrola build-out is likely to influence capital flows across the North Sea, Ireland, and continental Europe.

As electrification accelerates and renewable penetration deepens, the next phase of climate transition hinges on networks, not turbines alone. Iberdrola’s €14 billion commitment places the UK at the centre of that shift — and tests how quickly advanced economies can upgrade aging grids to match the ambitions of clean power growth.

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