Spanish energy giant Iberdrola are planning to invest £3 billion in the Scottish economy.

Iberdrola, owner of British energy firm Scottish Power, have announced plans to invest £4 billion in the UK over the next two years, with around two thirds of the total going to Scotland.

First minister Alex Salmond has hailed the investment package as “immensely important”.

The investments are to be made in a range of sectors with legal and construction businesses expected to benefit.

It is also expected there will be investment into Scottish renewable energy businesses.

There are concerns however that much of the investment will go towards the operation and maintenance of Scottish Power’s existing coal burning plants.

The investment is a sign of the strong relationship between Scotland and the Basque region of Spain, where Iberdrola’s headquarters are located.

Mr. Salmond also announced that Spanish renewable energy company Gamesa are to send a delegation to the highlands to explore investment opportunities.

Subscribe to our RSS Feed to get the latest UK Energy news.