Iberdrola, the Spanish power giant that owns ScottishPower, has announced that it will be investing £3 billion in Scottish businesses over the next two years. Since 2007, Iberdrola has invested £2.7 billion in UK businesses, a substantial part of this in Scotland.

Over the next two years, Iberdrola expects companies from various fields, such as the legal profession, construction companies and contractors, to be among those who will benefit from the increased contract awards and spend. The company retains more than 1,800 suppliers in Scotland, including Scottish Coal, renewables development company Pelamis, and Mott MacDonald, the management, engineering and development company.

First Minister Alex Salmond said: "Scotland is hugely significant within Iberdola's plans for the future and the commitment the company has shown to our country is immensely important. As well as the significant contribution to the economy through contracts, the wider Iberdrola Group has recently located the UK arm of its engineering and construction business (IEC) in Lanarkshire creating 150 jobs."

The company has taken the decision to locate the base for the global offshore renewables business in Glasgow and also signed a £700 million contract with Scottish Coal, the single largest coal contract in Scottish history.

"But it is in the field of renewables where we feel we can further strengthen our relationship. We have an estimated 25 per cent of Europe's offshore wind and tidal resource and 10 per cent of its wave potential, a renewable energy resource which is unrivalled in Europe and together we will see significant progress and groundbreaking achievements in low carbon energy generation and innovation," said the First Minister.

Last year, ScottishPower Renewables opened Whitelee, Europe's largest onshore windfarm.

The First Minister discussed Iberdrola's plans for investment in Scotland during a visit to Bilbao to strengthen economic links with the Basque Country. Senor Ignacio Galan, chairman of Iberdrola, said: "In the coming years, Iberdrola will intensify its firm commitment to Scotland. We plan to make investments in the United Kingdom of £4,000 million in the 2010-2012 period, two-thirds of which will go to Scotland.

"In the future, we want to see many more Basque companies going down the same road, setting up new business relationships, promoting the transfer of knowledge and technology and ultimately, creating new business opportunities."

www.iberdrola.es

www.Scotland.gov.uk