Iberdrola receives the green light for a historic €14.000 billion investment in the UK's electricity networks

 

Scottish Power, British subsidiary of Iberdrola, has received regulatory approval Of average to invest 14.000 billion euros in the modernization of electricity networks in the United KingdomThis plan, valid until 2031, aims to enhance interconnections between Scotland, England and Wales under the new RIIO T3 regulatory framework.

 

Regulatory framework and scope of investment

 

The authorization from the British regulatory body validates the remuneration framework applicable to electricity transmission until 2031. This milestone comes after a two-year process of interaction with the stakeholders. The new investments represent the largest outlay made by the Iberdrola Group in its history, multiplying by more than three the figures of the previous regulatory period.

 

This capital injection is strategically aligned with the 'Clean Power 2030 Plan' (Clean Energy Plan 2030) promoted by the UK government, seeking to respond to the country's need for electrification and energy security.

 

Technical projects: High-capacity submarine interconnections

 

The core of the investment program focuses on large-scale infrastructure projects. The approved projects will transmit energy at over 500 kV and will involve the construction of six converter substations. The main works include:

• Eastern Link 1 and Eastern Link 4: Two new high-voltage direct current submarine interconnections between Scotland and England.
• Western Link 2: A submarine cable that will connect Scotland with Wales.
• Total infrastructure: Deployment of 1.100 kilometers of submarine cable.

 

Key figures from the operation in the United Kingdom

 

The impact of this plan extends beyond physical infrastructure, projecting a significant effect on the British economy and the industrial supply chain. The most relevant financial and operational data are detailed below:

 

Charge Description	Figures and Data
Approved Investment (RIIO T3)	14.000 millones de euros
Execution period	Up to 2031
Total Group Investment (2025-2028)	20.000 billion euros (United Kingdom as the main destination)
Estimated economic impact	2.300 billion euros annually in the British GDP
employment generated	12.000 jobs in the value chain
Supplier purchasing plan	More than 6.000 billion euros (already underway)

 

Reindustrialization and strategic vision

 

The plan will not only increase the grid's capacity to meet new electricity demand and renewable capacity, but also seeks to reduce the impact on electricity bills resulting from current system constraints.

 

President of Iberdrola, Ignacio GalanIberdrola has praised the regulatory approval, highlighting the stability of the British market: "The increase in electricity demand across all sectors, driven by greater activity and the electrification of energy uses, necessitates massive investments in new infrastructure. This plan, the largest ever undertaken by Iberdrola, is the result of a clear energy policy by the British Government and constructive dialogue with the regulator."

 

Galán added that these investments will allow the construction of "modern, flexible and resilient" networks to guarantee energy security and integrate more clean energy.

 

Key points and frequently asked questions about Iberdrola's investment in the UK

 

What is the RIIO T3 regulatory framework approved by Ofgem?

It is the remuneration framework approved by the British regulator for electricity transmission that will be in effect until 2031, allowing companies like ScottishPower to plan long-term investments with legal certainty.

 

What impact will the new interconnections have on the local economy?

The plan is estimated to generate a positive impact of €2.300 billion annually on the UK economy and will encourage the creation of approximately 12.000 jobs across the value chain.

 

What are the main engineering projects included?

Of particular note are the Eastern Link 1, Eastern Link 4 (Scotland-England) and Western Link 2 (Scotland-Wales) submarine interconnections, which add up to 1.100 kilometers of high-voltage submarine cable at more than 500 kV.