ScottishPower has secured £1.35 billion in funding to enhance the electricity grid between Scotland and England, supporting the UK’s transition to cleaner, cheaper energy.
The funding package, which includes £600 million from the National Wealth Fund and contributions from major banks, will finance key offshore cable projects to deliver Scottish wind power across the UK.
The Eastern Green Link (EGL) scheme includes a new high-capacity transmission line running from Torness in south-east Scotland to the Hawthorn Pit substation in County Durham.
A second line, EGL4, will carry power from Fife to Lincolnshire, helping to ease grid congestion and maximise the use of renewable energy generated in Scotland.
At present, much of Scotland’s wind power is wasted due to grid bottlenecks. When the grid reaches capacity, wind farms are paid to stop producing energy, while gas power stations are paid more to meet demand — a system known as curtailment. In 2023 alone, curtailment cost an estimated £1.23 billion, ultimately adding to consumers’ energy bills.
The funding aims to reduce those costs and deliver more affordable, homegrown electricity to homes and businesses across the country. Chancellor Rachel Reeves said the investment will support working households, lower bills, and provide a platform for business growth.
Energy Secretary Ed Miliband added that this major infrastructure boost will help deliver clean power by 2030 while creating skilled jobs and modernising the national grid.
The financing is backed by a consortium of major financial institutions, including Bank of America, BNP Paribas, Lloyds, and NatWest. The funds will also support wider upgrades, such as new substations and overhead lines, improving the flow of renewable energy throughout the UK.
ScottishPower’s chief executive, Keith Anderson, said the collaboration marks a vital step forward in bringing more renewables into the energy system and driving economic growth.
John Flint, CEO of the National Wealth Fund, noted that the investment will play a key role in overcoming grid constraints and accelerating the shift to a renewable-powered electricity system.
The UK’s National Energy System Operator estimates that £60 billion in grid upgrades will be needed over the next five years to meet the country’s clean energy targets.
