Prime Minister Keir Starmer said on Thursday that the government has secured more than £24 billion of private investment in domestic clean energy projects ahead of next week’s investment summit.
Government is due to convene with international investors on Monday at the International Investment Summit in a bid to court inward-bound investment.
Starmer said the commitments are a “huge vote of confidence in this government and our relentless focus to drive growth across the UK”.
“Whether you’re in Scotland, Wales, Northern Ireland or England – we are creating the conditions for businesses to thrive, and our International Investment Summit will be a springboard for every part of the UK to be an engine of innovation and investment,” he added.
The total figure confirmed by the prime minister’s office includes pledges worth billions of pounds from global companies such as Australia’s Macquarie Group, Danish wind farm giant Ørsted and Spanish energy firm Iberdrola in the UK market.
These primarily comprise a £24bn commitment from Spanish energy utility Iberdrola that was confirmed today, which will effectively double the European energy giant’s investments in the country through its Glasgow-based firm Scottish Power.
Iberdrola has pledged to double its investment in the UK market through Scottish Power from £12bn to £24bn over the next four years.
Iberdrola’s executive chairman Ignacio Galán said the UK has now become the company’s largest investment destination outside Spain. He said Iberdrola was attracted by the UK’s “clear and stable policies”.
He added: ‘The benefits of electrification in terms of energy security, industrial development, jobs and decarbonisation are shared ambitions of the UK and Iberdrola.”
Other energy transition projects projects bringing in billions are based across the country in regions such as Aberdeen, Stow, Suffolk and Yorkshire.
The overhaul includes a £4bn for the East Anglia 2 wind farm off the Suffolk coast that was secured as part of the government’s expanded allocation at the last wind auction round.
Ørsted is also expected to invest £8bn in the development of UK offshore wind power, while Green Volt is investing £2.5b in deploying a floating offshore wind farm in the North Sea as part of a transition away from oil. Both projects were commissioned as part of the government’s expanded offshore wind auction.
Mads Nipper, chief executive of Ørsted, said: ‘The reason we are investing in the UK is that alongside the targets for clean energy, we also see the commitment to creating the policy frameworks required to deliver those targets and a government who wants to work with businesses to enable the investments required.”
The Green Volt floating offshore wind farm, the first to be commissioned at commercial scale, is being developed under the Crown Estate Scotland’s innovation and targeted oil and gas (INTOG) leasing round. It is expected to create 2,800 construction jobs for offshore workers in the North Sea off the coast of Scotland.
SeAh Wind UK is investing £225 million in a wind power technology manufacturing facility in Teesside, with backing from UK Export Finance, which is expected to generate 750 jobs by 2027.
International asset manager Macquarie Group is meanwhile expected to leverage £1.3bn of investment in new green infrastructure including ultra-fast charging points at Roadchefs along UK motorways and the Island Green Power solar farm in Stow, after receiving planning consents.
Shemara Wikramanayake, chief executive of Macquarie, said: ‘We believe that infrastructure investment helps create strong foundations for economic growth, job creation, better services for the public and stronger communities. We are fully invested in the UK’s success and look forward to playing our part in delivering the investment the country needs.’
BW Group is expected to proceed with a slated £300m investment in a new battery energy storage project in Birmingham.
US nuclear engineering company Holtec has meanwhile pledged £325m towards a new factory in South Yorkshire which will supply materials for Hinkley Point C and Sizewell C power stations that is expected to create 1,200 jobs over 20 years.
Dr Rick Springman, Holtec’s president of global clean energy opportunities, said the project could kickstart an export industry for engineering expertise in the UK.
Bus operator Go Ahead has also confirmed a £500m investment in decarbonising its fleet, creating a manufacturing line and partnering with Northern Ireland manufacturer Wrightbus.
The new government has, in the past 100 days, overturned a nine-year effective band on onshore wind and secured 9.6 GW of future contracted renewable energy capacity at the last national energy auction. It also launched GB Energy, a company that will kickstart investment in the energy transition, which will be headquartered in Aberdeen.
Andreas Sohmen-Pao, chairman of BW Group, said: ‘I am encouraged by the UK government’s commitment to the clean energy transition and our announcement today highlights BW Group’s commitment to strengthening our presence in the UK and contributing to the growth of the clean energy sector.’
The PM held the first Council of the Nations and Regions in Edinburgh this week with a goal to shift the way government operates to include ministers from devolved and regional governments in dialogue with local mayors to seize investment and growth opportunities.
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