Iberdrola announces €41bn investment in electric grid and renewables by 2026. (Credit: Iberdrola, S.A.)
Iberdrola, the Spanish energy behemoth, has unveiled ambitious plans this week, significantly boosting its renewable energy initiatives. With a commitment to invest €41bn and recruit 10,000 individuals by 2026, the company aims to expedite the electrification drive across its diverse portfolio.
As the parent company of Scottish Power in the UK, Iberdrola is primed to augment its investment in a range of wind, solar, and grid projects spanning its key markets. A substantial portion of this investment—over a third—will flow into the US market, with nearly a quarter earmarked for the UK and 15% designated for projects in the Iberian Peninsula.
A hefty €21bn allocation is directed towards network projects, which the company has identified as a pivotal growth segment. Additionally, €15.5bn is earmarked for selective renewables endeavors, while €1.5bn will fortify the company's leadership in energy storage.
These strategic investments will propel net profits to $5.6bn to $5.8bn by 2026. Furthermore, they position Iberdrola on a trajectory towards achieving zero emissions from generation as early as 2030 while concurrently fostering the creation of 10,000 new roles by 2026.
Ignacio Galan, Iberdrola's executive chairman, said the investment plans were in line with an accelerating trend in the global energy industry.
"The electrification of energy is unstoppable and will expand exponentially in the years ahead, supporting decarbonisation, boosting energy security, and reducing the volatility caused by fossil fuels," he said. "Customers are already driving this change. People are not returning to fossil fuels after they move to electric. Those who flip from petrol to EVs do not move back, likewise for customers replacing gas boilers with heat pumps."
He added that the company's strategy would "focus on delivering enhanced grid to support the security of supply, now 60 percent of our total investment, as well as a strong expansion of renewables capacity, driven by the substitution of fossil technologies and additional demand".
"Our strategic pillars focus on networks, geographical diversification, and a balanced energy and customers mix," he said. "This plan will allow us to grow our asset base, grow our profitability and strengthen our finances, as well as increasing dividends and driving jobs and skills and economic growth."
This announcement follows Iberdrola's recent Power Purchase Agreement with tech titan Amazon, which solidified its commitment to supplying 159MW of electricity from the East Anglia Three offshore wind farm, which is currently in development in the North Sea.