ScottishPower, backed by its parent company Iberdrola, has obtained £600m ($803.8m) in funding from the National Wealth Fund to advance the Eastern Green Link 4 (EGL4) project.
The strategic electricity interconnector is designed to enhance the UK’s energy security and self-reliance while contributing to its clean power objectives.
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EGL4 is a 2GW high-voltage direct current (HVDC) subsea cable designed to lower constraint costs by delivering energy produced in Scotland to high-demand regions in England.
Spanning 530km between Fife and Norfolk, the link will have the capacity to supply electricity to approximately 1.5 million homes in the UK.
ScottishPower CEO Keith Anderson 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 EGL4 project is part of an effort to bolster the UK’s energy infrastructure by reducing reliance on imported fossil fuels.
The move follows an earlier £600m loan from the National Wealth Fund granted in May 2025, which was directed towards several of ScottishPower’s network initiatives.
National Wealth Fund CEO Oliver Holbourn 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 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.”
The National Wealth Fund has identified grid investment as a priority, offering flexible financing options that match the long-term nature of such projects.
The approach is in line with estimates from the National Energy System Operator, which says Great Britain will need £58bn of investment by 2035 to support a clean power system.
The funding is part of Iberdrola Group’s broader plan to invest £12bn (€13.87bn) in the UK’s distribution and transmission networks by 2028.
