ScottishPower, through its parent company Iberdrola, has secured £600m in financing from the National Wealth Fund to support the development of the Eastern Green Link 4 project.

The new 2GW high voltage direct current (HVDC) subsea power link will run between Fife and Norfolk. The 530km electrical superhighway will be able to transmit enough electricity to power the equivalent of 1.5 million UK homes.

ScottishPower says long-distance, bidirectional subsea infrastructure projects such as EGL4 are essential to reinforce the UK's energy security and lower the cost of electricity for homes and businesses by reducing dependence on imported fossil fuels that are exposed to volatile international markets.

This latest transaction builds on the National Wealth Fund’s £600m loan in May 2025 to support the development of seven of ScottishPower’s priority network initiatives.

The National Wealth Fund prioritised the grid as an area for investment in its recent strategic plan and is offering a longer tenor facility to allow us to better align the debt profile with the life of the assets being financed.

This new financing enables the Iberdrola Group to continue advancing its plan to develop distribution and transmission networks in the UK, which involves investments of £12bn through 2028 to continue expanding electrification and responding to the expected increase in electricity demand.

Oliver Holbourn, CEO of the National Wealth Fund, said: “By supporting nationally significant projects like Eastern Green Link 4, we are demonstrating our commitment to strengthening our national infrastructure to help ensure our energy system is fit for the future.

“Our financing will support ScottishPower to go further and faster to deliver crucial grid upgrades and in doing so unlock clean energy for homes and businesses across the country.”

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