Iberdrola, the Spanish energy group and owner of Scottish Power, has announced a £24 billion investment to upgrade the UK’s energy infrastructure over the next five years.

This marks a doubling of its commitment to Britain and makes the UK the largest destination for Iberdrola’s global investments.

The investment will focus on enhancing the UK’s high-voltage cables, increasing the capacity of electricity transmission and distribution networks, and building new wind farms. The upgrades aim to meet the growing demand for clean energy, which is expected to rise by 50% by 2035 as the UK transitions to electric vehicles and heat pumps.

Ignacio Galán, executive chairman of Iberdrola, described the move as a “vote of confidence” in the UK, citing greater regulatory stability and clear policy direction as key factors. Keith Anderson, CEO of Scottish Power, noted that the UK’s ambitious targets to decarbonise its electricity system by 2030, combined with plans to overhaul the planning system, have provided the clarity needed for large-scale investments.

Of the £24bn, about two-thirds will be spent on enhancing the UK’s electricity grid, particularly in Scotland where renewable energy is concentrated. This will include a new subsea superhighway, the Eastern Green Link 1, connecting Torness in Scotland to Hawthorn Pit in England. The remaining £4bn will fund the construction of two new wind farms off the coast of East Anglia, set to power around one million homes.

This announcement comes ahead of the UK’s first International Investment Summit in London, where international business leaders will meet to explore new opportunities in the country. Ministers hope the summit will secure deals worth tens of billions of pounds for the UK economy.

With global concerns about missing out on investment due to competition from the US, following President Biden’s $369 billion Inflation Reduction Act, Anderson stressed that the UK’s strengths lie in offering regulatory stability, transparency, and a clear market framework for green energy projects.