The Diplomat
The United States and the United Kingdom will be the main destinations for Iberdrola’s investments in the period 2024-2026, which will amount to 41 billion euros, according to figures presented yesterday at its Capital Markets Day, held in London.
This investment figure, which will enable Iberdrola to achieve a net profit in the period of between 5.6 and 5.8 billion euros, includes the purchase of 18.4% of Avangrid for some 2.28 billion euros to take 100% of its US subsidiary. The company’s partners in renewables – such as the Norwegian sovereign wealth fund Norges or Masdar – will contribute 5 billion euros, bringing Iberdrola’s net investment to 36 billion euros.
Eighty-five percent of the investments will be in ‘A’ rated markets, with the United States being the main investment focus for the energy company, with 35% – some 14.35 billion euros – followed by the United Kingdom (24%) – some 9.84 billion euros – Iberia – Spain and Portugal – (15%), Latin America (15%) and Germany, France, Australia and other European Union countries (11%). Seventy per cent of the group’s investment will be focused on growth.
By business, electricity networks will be the main segment of these investments, with 60% of the net figure, some 21.5 billion euros, mainly dedicated to expanding and strengthening networks in the US, UK, Brazil and Spain.
The group’s chairman, Ignacio Galán, stressed that this new ‘roadmap’ for the electricity company is based on organic growth focused on the development of networks in markets with high credit ratings and on selective growth in renewables, which will enable the substitution of fossil fuels and the growth of energy storage.
He stressed that electrification “is unstoppable” and that forecasts indicate that “this trend will increase exponentially in the coming years as the only alternative to respond to the current challenges of the energy industry”.
“This will require more electricity grids to connect demand, more clean energy to replace fossil fuels and more storage, which gives stability to the system and prices. Iberdrola is already well positioned in these areas, and has the experience and opportunities to grow organically in our key markets,” he said.
One of Iberdrola’s growth levers over the next three years will be renewables, where it plans to invest 15.5 billion euros gross – including the 5 billion euros the company intends to raise with strategic partners in ongoing projects.
Of this amount, more than half will be focused on offshore wind in the United States, the United Kingdom, France and Germany, 28% on onshore wind and 18% on solar.
