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Image Credit: ScottishPower
Reports suggest ScottishPower might escalate its UK energy project investments up to £24bn, buoyed by Labour's commitment to halve green infrastructure planning hurdles.
In discussions with PA news, CEO Keith Anderson disclosed the firm's ongoing £12bn investment blueprint through 2028. The aim is to expand the firm's green energy portfolio and fortify the grid against intermittent renewables.
Expressing optimism, Anderson voiced aspirations to double investments by 2030, contingent upon Labour's robust clean energy and planning policy outcomes.
"If the government can halve the time it takes to get projects through planning, I'll double the amount I invest in this country," he said. "The government wants to get clean power by 2030; it wants to quadruple offshore wind by 2030. To get there, companies need to double the amount that they invest in (the UK), and that's what we want to do."
He argued that Labour urgently needed to drastically reduce the time it takes to secure planning approval and grid connections for new projects.
"If we can build a project in two years, then it shouldn't be sitting in the planning system for more than two years," Anderson said. Right now, these projects can sit there for over seven years. The Government is saying they are focused on accelerating projects through that system, and that's exactly what we want to see."
Planning reform was a significant pillar of Labour's General Election manifesto, with the party arguing that the current regime "acts as a major brake to economic growth."
Within mere days of assuming power, the new government lifted the 'de facto' ban on new onshore wind farms in England, aligning these projects with the same planning regulations as other infrastructure initiatives earlier this month. The King's Speech further solidified this shift, unveiling intentions for a forthcoming Planning and Infrastructure Bill and hinting at a new draft of the National Planning Policy Framework to be released soon.
In addition, the government unveiled the GB Energy investment vehicle and forged an 'unprecedented' partnership between GB Energy and The Crown Estate last week. This alliance aims to unlock up to £60bn in private investments, potentially advancing up to 30GW of new projects to the seabed lease phase within this decade.
However, any potential expansion of ScottishPower's investment strategy would ultimately hinge on the decision of its parent company, Spanish energy titan Iberdrola. Iberdrola recently upgraded its 2024 forecast, projecting double-digit growth in net profit and earnings surpassing £8bn.
However, Anderson said positive progress in tackling planning barriers would increase the firm's likelihood of being given access to more funding. "We compete for capital as a country, alongside Spain, America, Brazil, and Mexico because we're investing in lots of different countries," he explained. "The faster I can get projects through the (planning) process, the more I can compete and accelerate the amount of capital I can get hold of."
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