ScottishPower, part of the Iberdrola Group, has secured £600 million in financing from the National Wealth Fund to advance the development of Eastern Green Link 4 (EGL4), a major subsea electricity interconnector aimed at strengthening the United Kingdom’s energy system. The EGL4 project will deliver a 2 GW High Voltage Direct Current (HVDC) connection designed to transport renewable electricity generated in Scotland to areas of high demand in England. Spanning 530 kilometres between Fife and Norfolk, EGL4 will have the capacity to supply power to around 1.5 million UK homes, supporting more efficient use of domestically produced clean energy and helping reduce constraint costs across the national grid.
Large-scale infrastructure such as EGL4 plays a central role in reinforcing the UK’s energy independence by reducing reliance on imported fossil fuels, which are often subject to global price volatility. The latest funding follows a previous £600 million loan provided by the National Wealth Fund in May 2025 for seven priority ScottishPower network projects. This continued financial backing highlights the role of public–private collaboration in accelerating investment in grid infrastructure and facilitating the transition toward lower-cost, homegrown renewable energy sources. By enabling the movement of electricity to where it is most needed, EGL4 is expected to improve system efficiency and resilience.
The National Wealth Fund has identified electricity networks as a key investment priority in its recent strategic plan, reflecting the scale of capital required to modernise the UK’s energy system. As a public finance institution, it offers long-term and flexible funding structures suited to infrastructure projects with extended asset lifespans. The National Energy System Operator has estimated that £58 billion will be needed by 2035 to achieve a clean power system for Great Britain. This financing also supports Iberdrola’s broader investment strategy, which includes a planned £12 billion (€14 billion) commitment between now and 2028 to expand distribution and transmission networks in response to rising electricity demand and electrification trends.
Senior officials and industry leaders underscored the importance of the project. Oliver Holbourn, CEO of the National Wealth Fund, said that backing projects like EGL4 demonstrates a commitment to preparing the UK’s energy infrastructure for future needs, while enabling faster delivery of grid upgrades. Keith Anderson, CEO of ScottishPower, emphasised that initiatives such as EGL4 are critical to achieving the government’s Clean Power 2030 pathway and supporting economic growth. Energy Minister Michael Shanks noted that stronger grid infrastructure would reduce exposure to fossil fuel price fluctuations and maximise the benefits of renewable energy. Meanwhile, Chancellor Rachel Reeves highlighted the broader economic role of such investments, and Scottish Secretary Douglas Alexander pointed to EGL4 as a key driver of national growth and infrastructure renewal.
