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Iberdrola to receive $800 million from the National Wealth Fund of Britain for UK grid upgrades

In a statement released on Thursday, the National Wealth Fund of Britain will provide a loan to ScottishPower owned by Iberdrola to fund upgrades to Scotland's electricity grid.

The announcement follows a week of widespread blackouts in Spain and Portugal, which industry experts claim highlight the need to massively invest across Europe's electrical infrastructure.

Britain plans to decarbonise the power sector in its country by 2030. This will require significant grid upgrades to integrate renewable energy sources, such as wind and solar, to the system.

The statement by Britain's Energy Minister Ed Miliband stated that the investment would help deliver clean energy by 2030 through grid upgrades. This will bring cheaper, locally-produced renewable power to homes and businesses while supporting skilled employment across the country.

The funding will be used to accelerate seven ScottishPower transmission grid upgrades projects that are high priority, including the Eastern Green Link Projects 1 and 4 which will transport renewable energy generated in Scotland from Scotland to England.

According to the statement, the funding will also be used for grid upgrades at five Scottish locations. This includes the construction of new substations and overhead lines, as well as the reconfiguration of overhead transmission lines and improvements of overhead cables in order to increase resilience and capacity.

The National Wealth Fund of Britain was established in 2024 in order to invest in clean energy and spur economic growth.

The statement stated that the investment was part of a financing package worth 1.35 billion pounds, which included Bank of America and BankInter as debt arrangers, as well as BNP Paribas and Lloyds Bank as lenders.

(source: Reuters)