• $2.5 billion HVDC cable contract underpins a 2,000 MW interconnector critical to UK electrification and grid resilience.
  • Project strengthens north to south power transfer, easing congestion and enabling large scale renewable integration.
  • Forms part of a broader multibillion dollar network investment wave aligned with the UK Clean Power 2030 Plan.

Iberdrola has moved to deepen its role in reshaping the United Kingdom’s electricity system, awarding a $2.5 billion contract for the Eastern Green Link 4 submarine interconnector. The project will connect Scotland and England through a 2,000 MW high voltage direct current link designed to move renewable power at scale from generation rich regions to demand centres.

The contract has been awarded by Iberdrola Group, through its UK subsidiary SP Energy Networks, to Prysmian, which will manufacture more than 640 kilometres of cable for the project. The link is being developed jointly with National Grid and is scheduled to enter operation in 2033, following regulatory approval and construction.

Eastern Green Link 4 will connect Fife in Scotland with Norfolk in England. Using HVDC technology, the interconnector is expected to transmit enough renewable electricity to supply more than 1.5 million homes, addressing one of the central challenges facing the UK energy transition: moving clean power efficiently across a constrained national grid.

Infrastructure Scale and Technology Choices

Prysmian’s scope includes around 530 kilometres of HVDC submarine cable and more than 116 kilometres of underground cable. HVDC technology is central to the project’s economics and system value, allowing large volumes of electricity to be transported over long distances with lower losses than conventional alternating current systems.

For policymakers and investors, this technology choice matters. The UK’s offshore wind buildout, concentrated largely in Scotland and the North Sea, has increasingly outpaced the ability of onshore networks to absorb and redistribute power. Grid constraints have driven rising curtailment costs and exposed the limits of legacy infrastructure. Eastern Green Link 4 directly targets those bottlenecks.

By increasing north to south transfer capacity, the project is expected to reduce network congestion, strengthen security of supply, and improve system efficiency at a time when electrification of transport, heating, and industry is accelerating.

Regulatory Path and Project Timeline

Planning applications for Eastern Green Link 4 will be submitted in both Scotland and England throughout 2026. Following approval by the UK Secretary of State for Energy Security and Net Zero, construction is expected to begin in 2029, with commissioning targeted for 2033.

The project already has regulatory backing. Ofgem, the UK energy regulator, approved the interconnector as part of its wider framework for strategic network upgrades needed to meet national climate and energy security goals.

Eastern Green Link 4 is not a standalone asset. SP Energy Networks and National Grid are also developing Eastern Green Link 1, another 2,000 MW HVDC interconnector linking Torness in Scotland with Hawthorne Pit in England. Construction on that project began in 2025, reinforcing a pipeline of major east coast grid investments.

RELATED ARTICLE: Masdar, Iberdrola Finalize $5.6B UK Offshore Wind Deal

Capital Investment and Policy Alignment

In December 2025, Ofgem authorised ScottishPower to invest roughly $15 billion in the modernisation and expansion of electricity networks across central and southern Scotland. That decision marked one of the largest regulated network investment approvals in the UK’s history.

ScottishPower plans to deliver two submarine HVDC links, Eastern Green Link 1 and Eastern Green Link 4, connecting Scotland and England via the east coast. A further project, Western Link 2, remains in the study phase and would connect Scotland and Wales via a western submarine route. Together, these initiatives will roll out through 2031 and represent a tripling of investment compared with the previous regulatory period.

For government, these projects sit squarely within the Clean Power 2030 Plan, which prioritises rapid electrification, domestic renewable integration, and reduced reliance on imported fossil fuels.

What Executives and Investors Should Watch

For C suite leaders and infrastructure investors, Eastern Green Link 4 highlights three converging trends. First, grid assets are becoming the critical enablers of energy transition returns, not just generation. Second, regulatory frameworks in the UK are increasingly supportive of large scale, long duration capital deployment where projects align with national security and climate objectives. Third, supply chain capacity, including subsea cable manufacturing, is emerging as a strategic constraint and a source of competitive advantage.

The United Kingdom remains one of Iberdrola’s core markets. The group plans to invest around $22 billion through 2028, focused on distribution networks and renewable energy projects. As grid pressure intensifies across Europe, the scale and speed of projects like Eastern Green Link 4 are likely to shape not only national power systems, but the investment logic of the energy transition itself.

Follow ESG News on LinkedIn





The post Iberdrola Signs Contract Worth $2.5 billion for New Submarine Electricity Interconnector appeared first on ESG News.