£1.35bn grid investment creates hundreds of jobs – Daily Business

ScottishPower has hailed a £1.35 billion commitment from the National Wealth Fund and a number of banks to upgrade the electricity grid that will create hundreds of jobs in the supply chain.

The investment in seven projects, including key substations in Scotland, will pave the way for a new era of clean and cheaper electricity.

The National Wealth Fund is committing £600m as part of a consortium of lenders led by Bank of America BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest and Banco Sabadell.

ScottishPower chief executive Keith Anderson said the deal will underpin the future of the transmission system and prompt companies around the UK to start recruiting. His company would be hiring 600 engineers on the back of the deal.

“This is fantastic,” he said. “The government has always said it wants to work in partnership with business, to help economic growth and invest in infrastructure. It will create jobs and give us and energy system that is more secure.”

Crucially, it promises to lower the cost of electricity for businesses and consumers, and unlock growth across the UK, ScottishPower said. 

The development will help unlock renewable energy reserves by scaling up the UK’s capacity to transport clean energy from where it is generated to where it is needed, via interconnectors from Scotland to the North-East of England and Norfolk.

The financing will also deliver grid upgrades in five key locations across Scotland including the building of new substations, overhead line reconfiguration and the improvement of overhead transmission cables to increase both capacity and resilience.

Chancellor Rachel Reeves, said: “Upgrading our energy infrastructure is good news for businesses, households, and the economy.

“It will bring down bills, put more money in working people’s pockets and enable businesses to expand.

“That is why I am so pleased to see the National Wealth Fund securing deals such as this.

“This is our Plan for Change in action, delivering long term economic growth and the jobs of the future whilst making Britain a clean energy superpower.”

Energy Secretary Ed Miliband added: “We need to get Britain building so we can deliver on our Plan for Change to protect billpayers, unleash growth and create jobs.

“This investment will help to deliver clean power by 2030 by speeding up grid upgrades – bringing cheaper, homegrown renewable power into homes and businesses, while supporting skilled jobs across the country.”

Scottish Secretary Ian Murray said: “This significant investment in Scotland’s power grid demonstrates our government’s unwavering commitment to becoming a clean energy superpower.

“By expanding grid capacity through these crucial infrastructure projects, we’re not only addressing one of our biggest barriers to decarbonisation but positioning Scotland as a powerhouse of Britain’s clean energy revolution. 

“The National Wealth Fund’s investment in ScottishPower’s transmission projects represents our Plan for Change in action – delivering the modern energy infrastructure Scotland and the UK need to thrive in a clean energy future.”

John Flint, chief executive at the National Wealth Fund, added: “Upgrading the power grid is one of the most significant barriers to decarbonising our economy, and the scale of investment needed to address this challenge is substantial.

“Our financing will support some of the most vital grid upgrades that will have a major impact on the transition to a renewables-based electricity system and help address the grid constraints that make electricity more expensive for businesses and consumers.”