UK Government backs £1bn loan to SSEN for upgrades

There will also be improvements in transmission infrastructure for Skye, Fort Augustus, Argyll and Kintyre, as well as the Eastern Green Link 2 subsea project which will enable the transfer of power from Scotland to England (and vice versa) via a subsea cable.

SSEN Transmission has secured a £1bn, 12-year bank facility split between lead financer Bank of America and other banks including BBVA, HSBC, JP Morgan, Lloyds, MUFG, NatWest and Santander.

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The facility is backed by an £800m guarantee from the UK Government's national wealth fund in the form of a green loan.

Chancellor of the Exchequer, Rachel Reeves, said: “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 builds on our action at the Budget to take an average £150 off energy bills.

“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 said: "We are supporting 3400 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 said: "This £800m guarantee is a major vote of confidence in Scotland's leading role in delivering Britain's energy transition.

"It shows the strength of the U.K.’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." 

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.”