The total financing package amounts to £1.35 billion, with £600 million provided directly by the National Wealth Fund (NWF) and the remaining £750 million funded by a private consortium led by Bank of America and BNP Paribas.

Funds will prioritize upgrading the Scotland-England transmission corridor, including:

Subsea high-voltage direct current (HVDC) cables across the North Sea to transmit Scottish wind power efficiently to demand centers in England;

Local grid reinforcements such as new substations and overhead line upgrades in five Scottish regions.

The move follows a major blackout in Spain on 28 April, which exposed vulnerabilities in aging European power infrastructure. It also aligns with the UK’s legally binding target to fully decarbonize its electricity system by 2030—a goal requiring rapid expansion of renewable capacity while addressing grid bottlenecks.

"Grid modernization is central to achieving our 2030 decarbonization targets," said Chancellor Rachel Reeves. "This investment ensures our infrastructure can harness Scotland’s abundant wind resources rather than paying billions annually to curtail them."