Spain’s renewable energy giant Iberdrola has announced plans to invest nearly £12bn in Britain through 2028 in grids and green energy projects.

The UK’s transport and distribution networks will get roughly two-thirds of the planned investment, including more than £2bn for subsea cables able to transport enough renewable energy to power two million households.

In addition, Iberdrola, the owner of Scottish Power, will continue to invest in its East Anglia 3 offshore wind farm, as well as in onshore wind and solar projects, energy retail and green hydrogen.

The company added that these investments could be further increased with additional offshore wind opportunities, like East Anglia 1 North and East Anglia 2, which the company has ready for upcoming auctions.

Iberdrola also announced a platform last week to identify and collaborate with companies engaged in renewable energy and offshore wind.

“Backed by clear regulatory and policy frameworks, we are as committed as ever to speeding up our investments in the UK’s electricity grid and renewables generation,” Iberdrola Executive Chairman Ignacio Galán said in a statement.

The new tranche builds upon the company’s previously announced plan to invest £6.7bn in the UK, £2bn of which has already been spent.

Prime Minister Rishi Sunak first teased the Iberdrola commitment earlier this morning to mark the Global Investment Summit that kicks off in London today.

Iberdrola’s announcement is part of the £30bn business investment in Britain announced by the Government ahead of the Summit, which also includes plans by IFM to invest £10bn in UK infrastructure and energy transition projects.

ING Think estimated that 52 per cent of total investment in European utilities will be dedicated to renewables in 2024.

While ING said that European utilities are “increasingly selective when it comes to renewable projects” due to inflation and higher materials costs, ING forecasts that investment will continue to increase in 2024.

Iberdrola’s investment tracks alongside a bumper year for the company to date demonstrated in consistent operating uplifts, reaching £3.1bn for the nine-month period ending 26 October 2023.