National Wealth Fund provides £800m backing for grid upgrades

The National Wealth Fund is backing the delivery of four major grid upgrade projects to boost energy security and reduce constraints.

The fund has announced an £800m financial guarantee for the four projects in Scotland which will also create or support around 3,400 jobs.

The National Wealth Fund said its guarantee would enable SSEN Transmission to access longer-dated bank loans “that better align the debt profile with the life of the assets being financed”.

The projects will see Orkney connected to the transmission grid for the first time, while the transmission infrastructure serving communities including Skye, Fort Augustus, Argyll and Kintyre will be significantly strengthened.

Chancellor of the Exchequer, Rachel Reeves, said: “We are investing in grid upgrades and homegrown, clean energy to get us off the global energy price rollercoaster, creating thousands of new, skilled jobs in the process, and boosting growth. This backing from the National Wealth Fund will help deliver the infrastructure upgrades needed to capitalise on Scotland’s renewable energy production and help strengthen the energy security of the whole UK.”