Iberdrola expects to complete Vineyard amid Trump offshore wind assault
Spanish giant says it's in dialogue with BOEM and expects full operation by end of year
Iberdrola expects to complete its Vineyard Wind 1 project off Massachusetts, said the Spanish group's executive chairman, responding to questions over the impact of the increasingly ambitious moves being made against the sector by the Donald Trump administration.
Vineyard 1, which Iberdrola is building with CIP off Massachusetts is on course to take US offshore wind to European capacity levels by adding 800MW by the end of this year.
Although far further back in progress than Vineyard 1, the move against Empire Wind prompted questions to Iberdrola executive chairman Ignacio Galan when the group unveiled Q1 results today.
“At this moment, we have several turbines exporting energy to the grid, it's in operation partially. We will have one third... exporting electricity by the summer and we are confident that we will complete it by the year end," he said.
Galan added that the project's owners are in a "very fluent" dialogue with the federal Bureau of Ocean Energy Management (BOEM).
'US needs power investments'
Iberdrola more widely defended its heavy exposure to the US energy sector, citing the Trump administration’s continued interest in attracting investments to segments where the Spanish utility is heavily invested and its own success in back-stopping US projects with local supply chains.
In an upbeat quarterly earnings report that included a 26% increase in adjusted first quarter profits, Iberdrola also declared optimism about global drivers for investments in renewables and networks, including the growing momentum of policies underpinning electrification and investments in energy infrastructure.
This optimism extended to the US, where Iberdrola says it has suffered “minimal impact” from new tariffs due, in part, to supply chain management but also reflecting the company’s focus on networks in this US market.
Galan told analysts that US networks represent the company’s “main business” in the US, where it has more than $50bn worth of assets.
Iberdrola stated that this strategy will continue, with planned investments of €13bn in 2025-26 in networks, where the UK, Brasil and Iberia are also key markets.
“We have been in the U S for more than 20 years and we have increased investment with all administrations,” Galan said.
Since the last election alone, we have invested more than $6bn…. making the US our first investment destination.”
Galan said he has had the opportunity to speak with top US officials including Secretaries of the Interior and Energy.
“All of them said clearly the US is totally focused in promoting infrastructure investment, and I think this will drive massive investment in networks…. There are huge opportunities in this segment.
“I think the ambition of the American government and the American officials I have already met is that they are welcoming investment either in power, either in new infrastructures,” he added.
Iberdrola has about 10GW of renewable generation capacity in the US, sold through power purchase agreements.
“They also need more power generation. …We have a very good pipeline for generating more power, or less power, depending on the market condition. If the market condition is attractive, we will invest more in power. If the market condition is unattractive, we will invest less," Galan said.
The Iberdola CEO said new tariffs have so far had no impact on results, apart from some “very limited impacts” on capex, mainly in onshore wind and solar. “This is less than 1% of our total group planned investment in 2025,” Galan said, citing the importance of "robust supply chain management processes."
He said the impact of tariffs on the company’s US networks business have been negligible.
“I see no impact because 99% of network projects are local, but also, I think whatever cost is protected by a pass-through in the right cases," he said.
Iberdrola said 80% of purchases for offshore wind assets were placed with US companies, falling to 21% for solar PV.
Iberdrola claimed its own first quarter results demonstrated resilience in the face of geopolitical volatility.
On an adjusted basis, the Spanish utility posted a net profit of €1.6bn ($1.8bn) in the first quarter, up nearly 26% from the same quarter in 2024.
Organic investments were up 14% on an annual comparison, reaching a record €2.7bn in the first quarter.
Iberdrola’s total investments in renewables reached €1.1bn in the quarter, rising 7% above the same quarter last year. More than half of this was in offshore wind, especially in the UK and US, due to construction on East Anglia 2 and 3 and Vineyard Wind.
The company said has more than 4GW of renewables capacity coming into full operation in 2025, all sold into PPAs or Contracts for Difference (CfDs).
Networks contributed 53% to the company’s unadjusted earnings before taxes, depreciation, and amortisation (Ebitda) of €4,6bn in the first quarter, and investment in this segment networks grew 18% to €1.4bn in the period.
The company reaffirmed its net profit guidance for 2025 as “mid to high single-digit” growth from the €5.53bn posted last year.
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