The UK government has confirmed over £24 billion in private investment in energy projects, which is pegged to deliver growth in the clean energy sector and boost the nation’s economy.
According to prime minister Keir Starmer, the investments represent “a huge vote of confidence” in the UK and its long-term growth.
Iberdrola will double its investment in the UK from £12 billion to £24 billion over the next four years through its UK network operator, ScottishPower. This includes £4 billion in its East Anglia 2 wind power plant, which won a Contract for Difference (CfD) in this year’s allocation round (AR6).
Iberdrola’s executive chairman, Ignacio Galan, confirmed that the UK is now the company’s largest investment destination following its acquisition of another distributor, Electricity North West.
Ørsted and Greenvolt have also announced investments of £8 billion and £2.4 billion, respectively, for offshore wind development. Both of those projects were also awarded CfDs in AR6. According to Ørsted, its commitment will see thousands of local jobs created, while Greenvolt promises to create 2800 construction jobs.
Validating the government’s promise that its clean energy plans would encourage, or ‘unlock’, private investment, Ørsted A/S CEO Mads Nipper said: “The reason we are investing in the UK is that alongside the targets for clean energy, we also see the commitment to creating the policy frameworks required to deliver those targets and a government who wants to work with businesses to enable the investments required.”
Korean company SeAh Wind UK has announced a £225 million expansion of its investment in the UK’s supply chain, building a wind technology manufacturing facility in Teesside. Backed by UK Export Finance, the manufacturing plant is expected to create 750 direct jobs by 2027. SeAh’s total investment into the site will reach £900 million, following its initial £512 million commitment.
Holtec, a US nuclear engineering company, will also invest in the UK’s supply chain, with £325 million going to a new factory in South Yorkshire that will supply materials for Hinkley Point C and potentially Sizewell C, too. The company says it will create up to 490 direct and 280 indirect jobs annually during the construction phase, then 1,200 direct engineering jobs over 20 years.
Holtec’s president of global clean energy opportunities, Dr Rick Springman, suggested that this initial investment could “open up a £30 billion export market over ten years”.
Energy Secretary Ed Miliband said: “The Government’s clean energy superpower mission is not just about taking back control of our energy system to protect consumers—it is also about powering economic growth through good jobs.”
Investment across the whole clean energy arena
Away from wind, Australian financial services company Macquarie has supported the investment of £1.3 billion in new green infrastructure, including its Island Green Power solar plant in Stow, which was granted consent at the beginning of September. The financier acquired a 50% stake in the UK solar developer in 2022.
Macquarie’s investment will also go towards its Roadchef portfolio company, installing ultra-fast EV chargepoints across its sites along the UK motorway network.
BW Group, a global maritime group that fully funded Penso Power’s UK battery storage pipeline. is proceeding with a £300 million investment into a new battery energy storage project in Birmingham. Through its subsidiary BW ESS—which recently merged with Penso Power—the company plans to build over 2GW of battery energy storage systems (BESS), particularly focused on large capacity and long-duration sites.
Although it did not clarify what the new project will be, BW Group’s chairman said the firm will “shortly” begin construction on its two projects in the Midlands, with a combined capacity of 600MW.