Why Energy Giant Iberdrola is Doubling UK Investment
ScottishPower is part of the Iberdrola Group, one of the world’s largest integrated utility companies and a world leader in wind energy.
It has been at the forefront of renewable energy generation for more than three decades and has a portfolio of 38 onshore wind farms in the UK.
Now Iberdrola has announced it will inject £12bn (US$15.7bn) into ScottishPower over the next four years, doubling its existing UK commitment.
The timing of this investment comes as the UK government seeks to attract foreign investment and coincides with the run-up to the International Investment Summit in London, where global business leaders will convene to discuss economic growth and energy investment.
About ScottishPower
Glasgow-headquartered energy company ScottishPower generates, distributes and transports electricity, as well as supplying gas and electricity to millions of customers across the UK.
It is one of the UK’s big six energy suppliers, alongside British Gas, EDF Energy, E.ON, Npower and SSE.
Its CEO Keith Anderson, who has been in post since 2018, oversees ScottishPower’s operations and has held positions across the business for more than 25 years.
ScottishPower is committed to transitioning the UK to clean energy, with major investments in wind power, solar and battery storage projects in recent years.
Its portfolio includes significant offshore and onshore wind farms — such as East Anglia 3 — and plays a crucial role in the UK's drive towards net-zero carbon emissions.
ScottishPower is also investing in grid infrastructure, helping to ensure a reliable and sustainable energy future.
Iberdrola’s focus on green energy projects
Iberdrola says its increased investment in ScottishPower will fund several key projects aimed at advancing the UK’s green energy goals.
One of the most significant initiatives is the construction of the subsea electricity superhighway Eastern Green Link 1.
This cable will connect Torness in Scotland with Hawthorn Pit in England, improving the flow of renewable energy between the two regions and supporting the UK’s ambitions for decarbonisation.
ScottishPower will also be completing the integration of Electricity North West (ENW), a distribution company it acquired earlier this year for €5bn (US$5.5bn).
The company is also set to bring the East Anglia 3 offshore wind farm into service, a vital part of its renewable energy portfolio. Moreover, the East Anglia 2 offshore wind farm is poised to move forward with its £4bn(US$5.2bn) investment.
Alongside these large-scale offshore wind projects, Iberdrola’s subsidiary will continue to expand its onshore wind, solar and battery storage capacity in the UK, developing new sites and enhancing existing infrastructure to meet the increasing demand for clean energy.
Iberdrola and ScottishPower’s commitment to UK policies and net zero goals
Iberdrola Executive Chairman Ignacio Galán says: “After having invested more than £30bn in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024 to 2028, reaching up to £24bn.
“This is a vote of confidence in the UK’s clear and stable policies and is a major boost to the economy and the path towards green energy security and net zero. The benefits of electrification in terms of energy security, industrial development, jobs and decarbonisation are shared ambitions of the UK and Iberdrola.”
The expanded investment is expected to generate significant economic benefits for the UK, creating jobs and boosting the local economy, particularly in Scotland and northern England.
ScottishPower’s renewable energy projects — from wind farms to battery storage systems — will not only contribute to reducing carbon emissions but also support the UK's broader industrial strategy.
UK Prime Minister Sir Keir Starmer adds: “Working people up and down the country will reap the benefits of Iberdrola’s crucial investments in our green energy sector.
“Iberdrola choosing the UK as its largest location for investment is a major boost for our economy and a clear vote of confidence in this government’s ambitious clean energy mission and relentless drive for growth.
“We are creating the conditions for businesses to thrive and the International Investment Summit will be a springboard for every part of the UK to be an engine of innovation and investment — delivering opportunity for all.”
As the UK continues its transition to renewable energy sources, foreign investment from companies like Iberdrola is crucial to meeting the government’s ambitious net-zero targets by 2050.
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