Britain’s clean power push just got a major lift. Ofgem has approved around £150 million (€173 million) in early construction funding for ScottishPower Energy Networks, the UK arm of Spanish energy giant Iberdrola, to fast-track two strategic transmission projects in Scotland. The decision unlocks work on the Tealing to Kincardine Upgrade and the Denny to Wishaw Network Upgrade, both vital pieces of the country’s race to 2030.
Ofgem Unlocks Cash for Two Key Scottish Projects
The regulator’s green light covers the Tealing to Kincardine Upgrade Project (TKUP) and the Denny to Wishaw Network Upgrade (DWNO). Both projects sit inside ScottishPower’s RIIO-T3 investment plan.
The money is being released under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework. The ASTI programme was launched in 2022 to accelerate delivery of key power transmission projects and help meet the Government’s clean power targets, reduce reliance on volatile foreign energy markets and give British consumers access to more homegrown energy.
The decision means Ofgem has now granted early funding to all 26 projects in the ASTI programme, with this cash used by Transmission Operators to finance early procurement of highly sought after materials such as substation components and HVDC cables.
Beatrice Filkin, Ofgem’s Director of Major Projects, said the move is about staying ahead of global supply pressure. “By unlocking early funding for these projects, we aim to accelerate their delivery. This is crucial for strengthening Britain’s energy security and cutting constraint costs and exposure to volatile international gas prices by providing more grid capacity,” she said.
What the Upgrades Mean for Homes and the Wind Boom
The numbers tell a powerful story. A new Denny to Wishaw power line will carry enough renewable electricity to supply around 1 million homes, and the upgrades between Tealing and Kincardine will boost capacity and support major new links like electricity superhighways.
Both projects will lift voltage limits across central and east Scotland. The Tealing to Kincardine plan will raise overhead line voltage from 275kV to 400kV between Tealing, near Dundee, and Kincardine, and to make this happen, SP Energy Networks needs to build a new substation at Conland, near Glenrothes, and extend the substations at Mossmorran and Westfield.
Here is a quick look at what each project brings to the table:
| Project | Main Purpose | Key Benefit |
|---|---|---|
| Tealing to Kincardine (TKUP) | Lift voltage from 275kV to 400kV | Enables Eastern Green Link 4 superhighway |
| Denny to Wishaw (DWNO) | New 400kV transmission line | Powers around 1 million homes with clean energy |
TKUP is a proposed upgrade to existing electricity transmission infrastructure which will help enable other ASTI projects, including planned electricity superhighway Eastern Greenlink 4 (EGL4). That makes it a backbone link for moving Scottish wind power south.
Why Early Funding Matters in a Global Supply Crunch
Grid components are now one of the hottest commodities on the planet. Cables, transformers and switchgear sit on long order books worldwide.
Ofgem’s funding also covers early development work on eight additional projects, enabling transmission operators to carry out initial land acquisitions, design and survey work alongside the purchasing of critical materials, helping large-scale grid projects avoid procurement hold-ups currently affecting other countries.
“The last few years have shown how quickly global events can result in energy price shocks which push up bills for British consumers.” — Beatrice Filkin, Ofgem Director of Major Projects
The early money also flows into real economic activity on the ground. Morgan Sindall Infrastructure has already been named as the sole contractor for the Denny to Wishaw scheme, and supply chain orders are racing out of the door.
Part of Iberdrola’s Record £12 Billion Scotland Plan
This £150 million release is one slice of a much bigger pie. Iberdrola’s British subsidiary ScottishPower received approval from Ofgem to invest around €14 billion in its UK networks, with the regulator also approving the remuneration framework for electricity transmission until 2031, known as RIIO-T3, and the new investments constitute the largest Iberdrola Group investment in its history.
The build-out across central and southern Scotland is huge in scale. Between 2026 and 2031, SP Energy Networks will:
- Create 1,400 direct jobs and support over 11,000 more roles in the supply chain
- Build 12 new major substations across the network
- Upgrade 450km of existing circuits and reconductor 87km of overhead lines
- Replace 35km of underground cable
Nicola Connelly, CEO of SP Energy Networks, has framed the plan as a turning point for the country. “Our record investment of almost £12bn will unlock capacity in the grid and bring economic growth across our area of central and southern Scotland and beyond, whilst also bringing costs down for consumers by reducing network constraints,” she said.
With Britain’s electricity demand expected to double by 2050, this modernisation is critical for creating a modern, flexible, and greener energy system.
The Clean Power 2030 Push Behind the Spend
The whole programme is wired into the UK government’s Clean Power 2030 plan. That target wants to slash gas dependence and bring more renewables onto the grid before the decade ends.
Old infrastructure is the biggest hurdle. Much of the electricity transmission network in Scotland is between 50 and 100 years old, and while it has evolved over time, the network in central Scotland will soon be at full capacity, unable to accommodate all the clean, green renewable energy needed in future.
That is the gap projects like TKUP and DWNO are designed to close. They will help carry power from the booming offshore and onshore wind farms in Scotland down to homes, factories and data centres further south.
Bills are part of the story too. Electricity grid expansion is expected to reduce bills by £50 by 2031, thanks to lower reliance on imported gas and the halting of constraint costs ensuring power flows efficiently from where it’s generated to where it’s needed, even at peak demand.
For households, businesses and workers across Scotland, this Ofgem decision is more than a regulatory tick in a box. It is a clear signal that Britain is serious about wiring its future, and that the lights, jobs and clean power needed in the years ahead are finally being lined up today. Do you think this £150 million boost will speed up Britain’s clean energy goals or push bills higher first? Share your views in the comments below and tell us what this means for your community.
