ScottishPower has secured £600 million in funding from the National Wealth Fund to support the development of a major subsea power link that will strengthen the UK’s energy security and accelerate the transition to clean energy.
The funding will go to Eastern Green Link 4 (EGL4), a 2GW high-voltage direct current (HVDC) cable running between Fife in Scotland and Norfolk in England. With a length of approximately 530 kilometers, the project will be able to transmit enough electricity to power approximately 1.5 million households.
EGL4 is part of a new generation of long-distance, bi-directional subsea infrastructure aimed at modernizing the UK’s electricity grid. By enabling renewable energy generated in Scotland, particularly wind power, to be efficiently transported to demand centers in England, the connection is expected to reduce grid congestion and reduce so-called ‘constraint costs’, where excess energy is wasted or restricted.
The project is also intended to reduce dependence on imported fossil fuels, which remain vulnerable to global price shocks and geopolitical instability.
Energy Minister Michael Shanks said such grid expansions were essential to stabilizing energy costs and maximizing the benefits of domestic clean electricity generation.
“Investing in the grids is key to lifting Britain off the fossil fuel price rollercoaster,” he said, adding that projects like EGL4 will also support job creation and regional economic growth.
The funding builds on a previous £600m loan provided by the National Wealth Fund in 2025 to support a portfolio of ScottishPower network projects, and underlines an ongoing partnership between government-backed capital and private sector investment.
Chancellor Rachel Reeves said the deal demonstrated the fund’s role in supporting strategic national infrastructure.
“This is precisely why we created the National Wealth Fund, to put the full power of government into strategic investments that will secure the future of Britain,” she said.
Oliver Holbourn, chief executive of the fund, added that supporting projects like EGL4 was vital to ensuring the UK energy system was “fit for the future”.
The project is part of a wider expansion of electricity networks needed to meet the UK’s clean energy ambitions. According to the National Energy System Operator, around £58 billion of investment will be needed across the UK by 2035 to create a fully decarbonised energy system.
ScottishPower’s parent company Iberdrola has committed to investing £12 billion in UK transmission and distribution networks by 2028 as part of its wider electrification strategy.
ScottishPower chief executive Keith Anderson said the new funding will help accelerate the delivery of critical infrastructure in line with the Government’s Clean Power 2030 targets.
Beyond energy security, the project is expected to deliver broader economic benefits. ScottishPower has announced it will expand its workforce, particularly in central and southern Scotland, to support network upgrades and construction activities.
Douglas Alexander said the investment reflected a commitment to “stimulating economic growth” while strengthening national infrastructure.
The EGL4 project underlines a wider shift in UK energy policy towards large-scale electrification and grid modernization, recognizing that renewable energy production alone is not enough without the infrastructure for efficient distribution.
As demand for electricity increases – driven by the electrification of transport, heating and industry – the ability to transport electricity across regions becomes increasingly important.
By combining public financing with private sector delivery, the government aims to accelerate deployment while ensuring that projects of national importance can be delivered despite the scale of investment required.
For the UK, projects like EGL4 mean more than just infrastructure improvements. They are the basis for building a more resilient, self-sufficient and lower-carbon energy system that can withstand future global shocks.
