Wind takes back seat as Iberdrola says grids 'once in a century' safe bet
Spanish group says future is in networks with 'selective' approach to green power and focus on finishing existing projects
Iberdrola hailed the virtues of “stability and predictability” as it set course firmly for a future dominated by power networks.
The Spain-based international power giant said as much of 65%, or €37bn, of its total €58bn ($68bn) of investments will flow into regulated networks through to 2028.
The lion’s share of that will go into the US and UK, as part of what Iberdrola called a focus on “A-rated countries with stable, predictable and attractive regulatory frameworks”.
Iberdrola in its latest strategic update said networks represent a “once in a century” opportunity that can deliver predictable and profitable growth as major economies expand their power systems to support electrification.
The Spanish group’s renewables business will by contrast take “a selective approach to new investments” and focus on completing projects. Iberdrola said 75% of the €21bn it plans to spend in its renewables and customers segment will go into projects already under construction such as its East Anglia North Sea wind farms.
Iberdrola is also completing the Vineyard Wind 1 project off Massachusetts in the US with partner CIP, where other fully-permitted projects under construction have been halted.
CEO Pedro Azagra said the group has met with top officials from the Donald Trump administration and been given no reason to believe Vineyard was in danger of suffering the same fate.
The company made it clear its criteria for future green power plants will be based on the availability of stable and predictable revenue streams backs by instruments such as contracts for difference or power purchase agreements.
Iberdrola – a global pioneer in wind power, including offshore – has been shifting its emphasis towards networks since 2022, making major acquisitions in the sector such as ENW in the UK and taking total control of Avangrid in the US.
The targeted share of grid investments under its last strategic plan was 60% and the company told investors the trajectory would continue upwards.
Executive chairman Ignacio Galan said: “This plan aims to transform Iberdrola's profile into a more regulated company, with networks as a vector for growth.”
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