The EU bank has agreed to provide Britain with a £1.5 billion loan for the nation’s ageing electricity grid.
National Grid will use the cash – the largest ever single loan from the European Investment Bank (EIB) – to connect new power generation, upgrade ageing assets and improve network resilience to climate and security risks.
It will also aim to make improvements to protect critical infrastructure from floods and provide substation capacity needed for new connections to offshore wind farms and interconnections.
Jonathan Taylor, EIB Vice President said: “Investment in the UK electricity transmission network is essential to prepare for future demand, connect new sources of renewable energy and upgrade old facilities.”
The news comes amid concerns the UK could face blackouts this winter as the electricity margin has fallen to 4.1% – the lowest level since 2005.