Scottish Power is to invest £12 billion into UK renewables projects after the Labour government pushed through a swathe of solar panel projects despite local opposition.
Keith Anderson, Scottish Power’s chief executive, told PA that this approach to planning is “what we want to see as an investor”.
Anderson said the decision by Energy Secretary Ed Milliband to approve the projects in Lincolnshire, Suffolk and Cambridgeshire had given it a lot of confidence.
Scottish Power, owned by Spanish infrastructure firm Iberdrola, had already committed to spend £12 billion by 2028 but has now doubled this planned investment to £24 billion.
Anderson said: “We’re seeing enough clarity around the plan for clean power by 2030 and the investment horizon looks good. So that’s it. We’ll sign up for this.”
ScottishPower, which supplies energy to 4.4 million homes and businesses, was recently awarded a contract to build a new offshore wind farm.
The company also recently acquired Electricity North West, which runs the grid across much of northwest England, for £2.1 billion which is part of the £24 billion investment.
José Ignacio Sánchez Galán, the Spanish group's executive chair, said it was the “clear policy direction” towards net zero was one reason it was increasing its investment in the UK.
Iberdrola’s investment comes alongside £8 billion from Danish energy giant Orsted and £2.5 billion from offshore wind power firm GreenVolt, which has also won wind farm contracts.
Much of the money will go towards boosting the capacity of the electricity grid to cope with an expected surge in solar and wind generation.
One of these projects is a new electricity superhighway, Eastern Green Link 1, between south-east Scotland and County Durham.
National Grid has to cope with the new renewable power projects the network needs around £60 billion of investment.
The government is hosting an International Investment Summit in London on 14 October to attract more funding.