Iberdrola, a Spanish company, invests $15.7 billion into Scottish Power's division

Iberdrola - Spain's largest energy company - will invest up 12 billion pounds ($15.7billion) in Scottish Power, its British division, over the next four year, doubling their commitment to the UK in advance of a global summit on investment in London.

The investment comes at a time when Britain's Labour government is trying to attract billions of pounds worth of foreign investment as it celebrates its 100th day in office, and hosts global business leaders in the Oct. 14 Summit.

In a Thursday statement, British Prime Minister Keir starmer said: "We're creating conditions for businesses that will thrive. Our International Investment Summit is a springboard to help every area of the UK become an engine of investment and innovation."

Iberdrola said that around two thirds of its investment will go towards power transmission and distribution systems.

The energy system operator in Britain has estimated that 58 billion pounds will be required to upgrade the power grids in order to accommodate the expected increase in renewable projects as Britain strives towards its climate goals.

Plans by the Labour government to decarbonise electricity by 2030 require an increase in wind and solar power.

Ignacio Galan, Iberdrola's Executive Chairman and Scottish Power's Chairman, said that the UK is attractive because of its stable regulatory frameworks as well as its clear policy direction.

Galan and Starmer will make the announcement together in Scotland, on Friday. The British leader will meet with regional first ministers and mayors at a Council of Nations and Regions focused on investment and growth.

Starmer's Office also confirmed that Danish offshore wind farm developer Orsted invested 8 billion pounds in UK wind farms, and Green Volt, a floating offshore project with a 2.5 billion pound investment. ($1 = 0.7662 pound) (Reporting and editing by Leslie Adler; Additional reporting by Susanna Tridale)

(source: Reuters)