SSEN Transmission has obtained a £1bn, 12-year syndicated bank facility, supported by an £800m financial guarantee from the UK Government’s National Wealth Fund. This marks one of the most significant state-backed financings for Britain’s electricity transmission system. The funding, designated as a green loan, will expedite the delivery of four major grid upgrade projects in northern Scotland.
SSEN Transmission, 75% owned by SSE plc, is crucial in transmitting renewable electricity from generation areas to demand centres across Great Britain. The new facility, led by Bank of America with participation from BBVA, HSBC, JP Morgan, Lloyds, MUFG, NatWest, and Santander, demonstrates strong lender interest in long-term, regulated infrastructure supported by government credit.
The financing will support the Skye Reinforcement, Argyll and Kintyre 275kV Strategy, the Orkney Connection, and Eastern Green Link 2, a high voltage direct current subsea project. These projects will significantly enhance grid capacity, improve resilience in remote areas, and unlock constrained renewable generation. Orkney will connect to the transmission grid for the first time, and regions including Skye, Fort Augustus, Argyll, and Kintyre will benefit from enhanced infrastructure to manage increasing wind and marine energy volumes.
Eastern Green Link 2 is the largest single investment in the UK transmission system, a key component of UK and Scottish government clean power strategies. It is expected to support thousands of jobs across the supply chain and bolster national energy security.
The National Wealth Fund guarantee enables SSEN Transmission to access longer-term lending, aligning with the operational lifespan of transmission assets. This alignment is increasingly seen as essential by policymakers and investors for delivering capital-intensive grid upgrades swiftly. The four projects have been independently assessed as necessary by the National Energy System Operator and the energy regulator Ofgem, highlighting their strategic importance for the GB power system.
Chancellor of the Exchequer Rachel Reeves stated, “We are investing in grid upgrades and homegrown, clean energy to get us off the global energy price rollercoaster, creating thousands of new, skilled jobs in the process, and boosting growth. This backing from the National Wealth Fund will help deliver the infrastructure upgrades needed to capitalise on Scotland’s renewable energy production and help strengthen the energy security of the whole UK.”
Energy Secretary Ed Miliband added, “We are supporting 3,400 good jobs for Scotland, reversing years of underinvestment in our energy grid to connect more clean homegrown power to get bills down. Our clean power mission is about growth, jobs, and energy security, and this £800 million guarantee from the National Wealth Fund for Scotland’s electricity grid delivers on all three.”
Scottish Secretary Douglas Alexander described the guarantee as a strong signal of Scotland’s central role in the UK’s energy transition. “This £800 million guarantee is a major vote of confidence in Scotland’s leading role in delivering Britain’s energy transition. It shows the strength of the UK’s support for Scotland as this National Wealth Fund guarantee will support up to 3,400 jobs, strengthen our energy security, help reduce bills, and ensure the renewable power generated in Scottish communities can reach homes and businesses across the country.”
From a corporate finance perspective, SSE highlighted the strategic value of the facility. Barry O’Regan, SSE’s Chief Financial Officer, said, “This new Bank Facility supported by the National Wealth Fund financial guarantee provides an excellent source of funding diversification, and with a three-year availability window helping to manage liquidity for SSEN Transmission. It demonstrates the importance of grid upgrades both in achieving the country’s clean power and energy security goals, and in unlocking economic growth throughout the nations and regions of Britain.”
For C-suite leaders and infrastructure investors, the deal underscores how government-backed guarantees are being used to attract private capital, de-risk long-term grid assets, and accelerate the delivery of nationally critical projects. As renewable generation scales faster than transmission capacity, similar financing structures are likely to become a defining feature of the UK and European energy transition.
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