Iberdrola to spend $17bn on renewables amid 'unstoppable' electrification drive

Iberdrola has pledged to spend €15.5bn ($16.9bn) in renewables by 2026 amid a €41bn electrification drive dubbed “unstoppable” by CEO Ignacio Galan.

Investment into renewables will be selective, the Spanish green power giant said during its capital markets day, with half of it earmarked for offshore wind in the US, UK, France and Germany.

Out of the total renewables investment, €5bn will be contributed by partners in projects that have already been identified, and 100% of the green power investment will go to projects already under construction, the company said.

“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,” Galan said.

“Customers are already driving this change. People are not returning to fossil fuels after they move to electric.

“Our strategy will focus on delivering enhanced grid to support security of supply, now 60% of our total investment, as well as a strong expansion of renewables capacity, driven by the substitution of fossil technologies and additional demand.”

The spending into renewables and grids by 2026 fit into Iberdrola’s ‘Vision 2030’ strategy that puts an emphasis on a greater need for renewables to replace thermal power as well as to cater for new electricity uses.

Offshore wind will be driving that growth, with an additional 3GW expected to be in operation from 2027 on, reaching close to 5GW in total.

Another 6GW of fresh onshore wind and solar are slated to be commissioned from 2027 on, while the utility aims for a 100GW pipeline for future development.

The renewables spending will be flanked by massive investments into network-based growth, which is slated to make up 60% of overall investments. Most of Iberdrola’s grid spending will be for networks in the US, UK, Brazil and Spain.

The company has also earmarked to spend €1.5bn in storage.

“We also recognise an increasing role of storage technologies to preserve the balance between supply and demand 24 hours a day,” Galan said.

“Our strategic pillars focus on networks, geographical diversification, and a balanced energy and customers mix. 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.”

Iberdrola aims to increase its net profit from about €4.8bn last year to between €5.6bn and €5.8bn in 2026, representing a mid- to high single digit growth in the period.