€693 million financing to support UK’s subsea electricity superhighway

March 25, 2026, by Nadja Skopljak

ScottishPower, through its parent company Iberdrola, has secured £600 million (around €693 million) in financing from the National Wealth Fund to support the development of the fourth out of five subsea electricity superhighways between Scotland and England.

The 2 GW Eastern Green Link 4 (EGL4) high-voltage direct current (HVDC) subsea power link will run between Fife and Norfolk, with its 530-kilometer cable to be able to transmit enough electricity to power the equivalent of 1.5 million UK homes.

The project aims to reduce constraint costs by transporting domestically produced energy from where it is generated in Scotland to areas of demand in England.

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Project & Tenders

Keith Anderson, CEO of ScottishPower, said: “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.”

The £600 million green financing builds on the National Wealth Fund’s £600 million loan in May 2025 to support the development of seven of ScottishPower’s priority network initiatives.

In its recent strategic plan, the fund prioritized the grid as an area for investment and is offering a longer tenor facility to allow ScottishPower to better align the debt profile with the life of the assets being financed, the company noted.

“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 Chancellor Rachel Reeves.

“We have the right economic plan for Britain – built on stability, investment and reform – with an active, strategic state helping to build a stronger, more secure economy and make working people better off in every part of Britain.”

Planning applications for EGL4 are expected in Scotland and England this year. Subject to approval by the Secretary of State for Energy Security and Net Zero, construction is currently expected to start in 2029, with the link operational in 2033.