Eastern Green Link 4 confirms £3bn supply chain contracts

Eastern Green Link 4 (EGL4) has awarded £3 billion ($4 billion) in supply chain contracts to Siemens Energy and Prysmian. 

The link, a joint venture between SP Energy Networks and National Grid Electricity Transmission, is one of five subsea links being developed along the east coast of Britain.

A contract has been awarded to Siemens Energy to provide the high voltage direct current (HVDC) converter stations for the link, following the confirmation of a £2 billion ($2.7 billion) contract with Prysmian, announced in February, to supply the subsea and underground electricity cables.

Together, the projects aim to strengthen the resilience of the electricity network, reduce grid constraints and enable greater volumes of renewable energy to flow efficiently between Scotland and England to millions of homes, strengthening UK energy security.

Siemens Energy’s contract

The Siemens Energy contract includes two converter stations, one in Fife, Scotland and one in Norfolk, England.

The converter stations change alternating current into direct current, which SP Energy Networks says is the most efficient way for high voltage electricity to travel across long distances. 

Once converted, the electricity will travel around 640km, primarily undersea, before being converted back to join the onshore transmission network.

By increasing capacity and reducing congestion on the grid, the 2GW EGL4 subsea link aims to help minimise constraint costs by accelerating the integration of cleaner sources of energy into the system, supporting the UK’s increasing demand for energy.

Commenting in a release was Iain Adams, Deputy Project Director of Eastern Green Link 4: “Securing the international expertise of Siemens Energy and Prysmian to help us deliver this vital electricity connection is a real project milestone.”

“These are the first of many more UK contracts to come for Eastern Green Link 4, which will increase grid capacity between Scotland and England, transporting clean power across the country and reducing constraints.”

Said James Goode, Project Director of Eastern Green Link 4: “Confirming £3 billion of contract awards demonstrates the scale and momentum behind Eastern Green Link 4 as we move into delivery. 

“By bringing together the proven expertise of Siemens Energy and Prysmian, we’re building a highly capable UK supply chain to deliver this complex electricity infrastructure project.”

Darren Davidson, UK Vice President for Siemens Energy, commented: “Eastern Green Link 4 is a critical project for strengthening the UK’s electricity network and enabling more renewable power to flow between Scotland and England. 

“Working with our partners at SP Energy Networks, National Grid Electricity Transmission and Prysmian, we’re investing in the supply chain to deliver this nationally significant HVDC infrastructure.”

Subject to planning consent, Eastern Green Link 4 is expected to enter main construction in 2028 and is scheduled to be complete in 2033.

Together, SP Energy Networks and National Grid Electricity Transmission are also building the Eastern Green Link 1 project, expected to be complete in 2029.

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Earlier financing

The supply chain contract comes less than a week after ScottishPower, the parent company of SP Energy Networks, announced £600 million ($792.7 million) in financing for the project.

The Iberdrola-owned company said the financing, secured from the UK’s National Wealth Fund, will support the development of the interconnector.

The National Wealth Fund prioritised the grid as an area for investment in its recent strategic plan and is offering a longer tenor facility to allow ScottishPower to better align the debt profile with the life of the assets being financed. 

This new financing enables the Iberdrola Group to continue advancing its plan to develop distribution and transmission networks in the UK, a strategic focus area for the Group, which involves capex investments of £12 billion (€15.9 billion) through 2028.

Said UK Chancellor Rachel Reeves at the time the financing was announced: “This is exactly why we created the National Wealth Fund - to put the full power of government behind strategic investment in partnership with business that secures Britain’s future. 

“This investment will build the energy infrastructure of tomorrow, strengthen our energy security, and help bring down bills.”

Oliver Holbourn, CEO of the National Wealth Fund, added: “By supporting nationally significant projects like Eastern Green Link 4, we are demonstrating our commitment to strengthening our national infrastructure to help ensure our energy system is fit for the future.

“Our financing will support ScottishPower to go further and faster to deliver crucial grid upgrades and in doing so unlock clean energy for homes and businesses across the country.”

The financing builds on a loan of the same amount from the NWF to ScottishPower in May 2025 to upgrade the UK electricity grid in support of the Government’s Clean Power 2030 Action Plan.