SSEN Transmission has secured a £1 billion, 12-year green loan facility supported by an £800 million guarantee from the UK National Wealth Fund, marking one of the largest government-backed financings ever arranged for Britain’s electricity transmission network.

The facility will fund four major transmission upgrades across northern Scotland, projects viewed as essential to unlocking renewable generation, strengthening grid resilience, and supporting the UK’s clean power and energy security objectives.

Long-Dated Green Financing for Strategic Grid Assets

The syndicated loan is ringfenced as green financing and led by Bank of America, with participation from BBVA, HSBC, J.P. Morgan, Lloyds, MUFG, NatWest, and Santander. The lender mix highlights strong institutional appetite for regulated infrastructure assets supported by public-sector risk sharing.

SSEN Transmission, which is 75% owned by SSE plc, plays a critical role in transporting renewable electricity from generation-heavy regions to demand centres across Great Britain. The new facility provides long-term capital aligned with the operational life of transmission assets, helping manage liquidity while accelerating project delivery.

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Four Projects Central to the UK’s Clean Power System

The financing will support upgrades across four priority transmission schemes: the Skye Reinforcement, the Argyll and Kintyre 275kV Strategy, the Orkney Connection, and Eastern Green Link 2.

Together, these projects will expand capacity in some of the UK’s most renewable-rich but grid-constrained regions. The Orkney Connection will provide the islands with their first direct link to the national transmission system, while infrastructure upgrades in Skye, Fort Augustus, Argyll, and Kintyre will enable higher volumes of wind and marine energy to reach the mainland.

Eastern Green Link 2, a high-voltage direct current subsea cable developed jointly with partners, represents the single largest transmission investment ever undertaken in the UK. The project is a cornerstone of both UK and Scottish clean energy strategies and is expected to support up to 3,400 jobs across the supply chain.

State Guarantees De-Risk Long-Term Infrastructure

The National Wealth Fund guarantee enables SSEN Transmission to access longer-tenor financing at lower risk, improving alignment between funding structures and asset lifetimes. Policymakers increasingly view this approach as critical for accelerating capital-intensive grid investments as renewable deployment outpaces transmission capacity.

All four projects have been independently assessed as necessary by the National Energy System Operator and energy regulator Ofgem, reinforcing their strategic importance to the future stability of the GB power system.

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Government Signals on Energy Security and Jobs

UK Chancellor of the Exchequer Rachel Reeves said the guarantee underlines the government’s commitment to grid investment, clean energy, and reducing exposure to volatile global energy prices, while supporting skilled employment and long-term growth.

Energy Secretary Ed Miliband highlighted the role of the funding in reversing years of underinvestment in grid infrastructure and enabling more homegrown power to flow onto the system, delivering benefits for jobs, energy bills, and security of supply.

Scottish Secretary Douglas Alexander described the guarantee as a strong endorsement of Scotland’s role at the centre of the UK’s energy transition, ensuring renewable power generated locally can serve households and businesses nationwide.

From a corporate finance and infrastructure investment perspective, the deal illustrates how government-backed guarantees are being used to crowd in private capital, lower financing risk, and speed up delivery of nationally critical assets.

As renewable generation continues to scale faster than transmission networks, similar state-supported financing structures are likely to play a growing role in the UK and European energy transition, particularly for long-lived grid infrastructure where certainty and capital discipline are paramount.

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