ScottishPower, through its parent company Iberdrola, has secured £600 million in financing from the National Wealth Fund for the Eastern Green Link 4 project.
The company said the 2GW High Voltage Direct Current subsea link will run between Fife and Norfolk and help transport domestically produced energy from Scotland to demand centres in England.
ScottishPower added that the 530km cable will be able to transmit enough electricity to power the equivalent of 1.5 million UK homes.
The project aims to strengthen the UK’s energy security and reduce constraint costs by enabling more efficient electricity transmission.
The National Wealth Fund previously provided a £600 million loan in May 2025 to support seven of ScottishPower’s network initiatives.
The new financing supports Iberdrola’s plan to invest £12 billion in UK distribution and transmission networks through 2028.
“This is exactly why we created the National Wealth Fund – to put the full power of government behind strategic investment in partnership with business that secures Britain’s future. This investment will build the energy infrastructure of tomorrow, strengthen our energy security, and help bring down bills.” said Rachel Reeves, chancellor.
“Our financing will support Scottish Power to go further and faster to deliver crucial grid upgrades and in doing so unlock clean energy for homes and businesses across the country.” said Oliver Holbourn, chief executive of the National Wealth Fund.
“We are pleased to be strengthening our relationship with the National Wealth Fund to deliver these critical investments. By working together to support the delivery of the Government’s Clean Power 2030 pathway, projects like EGL4 are meeting our shared goals of accelerating electrification, boosting the UK economy and delivering energy security.” said Keith Anderson, chief executive of ScottishPower.