LONDON (Reuters) -Britain's National Wealth Fund will lend 600 million pounds ($802 million) to Iberdrola-owned ScottishPower to help fund upgrades to the country’s power grid, they said in a joint statement on Thursday.

The announcement comes a week after Spain and Portugal suffered widespread blackouts that industry experts say highlight the need for massive investment across Europe's electricity infrastructure.

Britain also plans to largely decarbonise its power sector by 2030, which will require major grid upgrades to help integrate new renewable plants, like wind and solar, into the energy system.

"This investment will help to deliver clean power by 2030 by speeding up grid upgrades – bringing cheaper, homegrown renewable power into homes and businesses, while supporting skilled jobs across the country," Britain's energy minister Ed Miliband said in the statement.

The funding will help speed up seven of ScottishPower’s priority transmission grid upgrade projects, including its Eastern Green Link projects 1 and 4, which will help transport renewable power generated in Scotland to England.

The financing will also deliver grid upgrades in five Scottish locations, including the building of new substations, overhead line reconfiguration and the improvement of overhead transmission cables to increase capacity and resilience, the statement said.

Britain’s National Wealth Fund was set up in 2024 to help spur growth and invest in clean energy projects.

The investment is part of a 1.35-billion-pound financing package, led by Bank of America as sole debt arranger and including Bank of America, BankInter, BNP Paribas, Caixabank, Lloyds Bank, NatWest and Banco Sabadell as lenders, the statement said.

($1 = 0.7484 pounds)

(Reporting by Susanna TwidaleEditing by Mark Potter)