Iberdrola makes a record investment of 14,000 million in networks in the United Kingdom while waiting for Spain to improve its remuneration framework

Iberdrola will do the largest investment in its history in the United Kingdomworth 14,000 million euros which will be allocated particularly to electrical networks and to draw two underwater interconnections, between Scotland and England and between Scotland and Wales, thanks to the new remuneration framework which has just been approved by the British Government and which offers a remuneration rate of 7%, in the midst of the electricity sector’s fight for the National Markets and Competition Commission (CNMC) improve your proposal to reward investments in networks in Spain.

As announced by the company, this is the largest investment in its history, which will be made through its British subsidiary, Scottish Power, and what does it mean triple all investments that he has done in the United Kingdom in recent years. The decision has been consequence of the new remuneration framework to the investments in electrical networks that this country has just approved to expand its connection capacity which, among other things, is committed to “responding to evolving requirements”, in reference to the risks that in Spain the electricity companies need to be recognized to invest in the electricity market, as well as a financial remuneration rate of 7%.

This rate contrasts with the one currently offered in Spain by the CNMC, of 6.58%which electric companies consider insufficientas well as a model that they consider does not take into account the risk linked to investments in electrical networks and that contemplates a maximum recognized investment cost of 257 euros per kilowattwhich warn that it will discourage investments that exceed that amount, because they will not be remunerated.

In the eyes of Iberdrola, the investment outlook is better in the United Kingdom, it is better to make the largest investment in its history, mainly to build between now and 2031 two underwater interconnections of direct current at high voltage that will add 1,100 kilometers of cable and will entail the construction of six new converter substations, to transport energy at more than 500kV,

The project figures go beyond energy because Iberdrola expects it to have a positive impact of 2.3 billion a year in the British economy and that serves to create 12,000 jobs. At the moment, the company has already launched a purchasing plan from suppliers for more than 6,000 million.

The president of Iberdrola, Ignacio Sánchez Galanhas pointed out that this plan is “the most committed [por la compañía] in its history” and that it is “the fruit of a clear energy policy by the British Government and a constructive dialogue with the regulator.

“It will allow us to continue building modern, flexible and resilient networks that make it easier to meet growing demand, guarantee energy security and integrate more clean energy,” he assured.