Iberdrola and Kansai Electric extend electrification alliance
Ignacio Galán, executive chairman of Iberdrola, and Toru Kuwahara, executive vice president of Kansai
Utility giant Iberdrola and Japanese electricity company Kansai Electric Power have announced the extension of their strategic alliance with the aim of accelerating electrification globally.
According to the partners in a release, the continued collaboration will focus on various electricity grid and renewable energy projects in different countries where Iberdrola operates.
According to Iberdrola, the new agreement marks a strategic milestone that will allow them to jointly explore other investment opportunities in different technologies and regions within the renewable energy and electricity grid industries.
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Continued alliance
Iberdrola and Kansai have previously shared interests in the renewables and power networks space, notably concerning Electricity North West (ENW) in the UK and Windanker offshore wind farm.
In August 2024 Iberdrola signed an agreement to acquire 88% of ENW Group in the UK in a deal valuing €5 billion ($5.5 billion at the time). The move came five years after Kansai signed a purchase agreement in 2019 to hold shares in the group. A consortium led by Kansai owns the remaining 12%.
In December 2024, Kansai signed a share purchase agreement with Iberdrola to acquire a 49% stake in the Windanker offshore wind farm project. Iberdrola retains the remaining 51% stake.
The agreement also strengthens the relations of both companies, following the co-investment in the Windanker offshore wind farm at the end of December 2024.
The Windanker offshore wind farm, located in the German Baltic Sea, will have an installed capacity of 315MW and will be operational in the last quarter of 2026.
The operation values 100% of the offshore wind farm at €1.28 billion ($1.3 billion). Iberdrola will control and manage the assets, providing construction, operation, maintenance, and other corporate services.
The continued partnership with Kansai is the latest in deals from Iberdrola to drive their growth.
The company cites their alliance policy as a strategy to accelerate growth while promoting the decarbonisation of the economy and maintaining its financial strength.
