A £900M Partnership Powering Britain’s Smart Grid

Macquarie’s £900M smart meter deal puts it at the center of Britain’s push for a digital, data-driven energy system

22 May 2025

Macquarie has agreed to buy 2.7m smart electricity and gas meters in the UK from Spain’s Iberdrola for £900m, a deal that will make it one of the country’s largest owners of the devices as the government pushes to complete a nationwide rollout.

The acquisition, which is subject to regulatory approval, will lift Macquarie’s total UK smart meter portfolio to more than 13m units. The investment group said the assets fit its long-term strategy of owning regulated or contracted infrastructure with stable returns.

The UK has set a target of offering smart meters to all households and small businesses by the end of 2025, after repeated delays to the programme. Smart meters automatically send energy consumption data to suppliers, reducing estimated bills and allowing customers to track usage more closely.

“Smart meters are not just about measurement; they are about unlocking the future of energy efficiency,” a Macquarie spokesperson said, adding that the assets provided predictable, inflation-linked income over their operating life.

For Iberdrola, the sale forms part of a broader effort to recycle capital. The utility, which owns ScottishPower in the UK, has said it wants to focus investment on renewable generation, electricity networks and grid digitalisation, where it sees stronger growth opportunities.

The transaction highlights the growing role of infrastructure investors in the UK’s energy system, particularly in assets that sit between consumers and the grid. Smart meters are typically financed by third parties and leased to energy suppliers, with costs recovered through household bills.

However, the consolidation of meter ownership among a small number of financial investors has drawn scrutiny. Some industry analysts have warned that market concentration could reduce competitive pressure, while consumer groups have raised concerns about data protection as millions of devices transmit detailed usage information.

Regulators have said existing rules require meter operators to meet strict cybersecurity and data-handling standards. The government has also argued that private capital is essential to complete the rollout without adding to public borrowing.

Macquarie has been an active investor in UK infrastructure for more than two decades, with holdings spanning utilities, transport and digital assets. The group said it expected demand for smart grid infrastructure to rise as electrification increases and households adopt technologies such as electric vehicles and heat pumps.