Iberdrola to invest €41bn to accelerate electrification

Iberdrola presented an updated strategy at its Capital Markets Day this week, where the Spanish energy giant announced plans to invest €41 billion ($44 billion) in grid upgrades and renewables worldwide.

The company also plans to employ 10,000 people by 2026 in an effort to accelerate electrification.

According to Iberdrola, electrification across all sectors is now “unstoppable” due to the rapid pace of decarbonisation across all sectors. It is therefore critical to ensure electricity network infrastructure can be located where it’s needed in advance.

Expanding and strengthening networks will receive the largest chunk of investment (60%) at €21.5 billion with a focus on US, UK, Brazil and Spain. Approximately two-thirds of the investment will target distribution and one-third will target transmission.

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Ignacio Galán, executive chairman of Iberdrola, said in a statement: “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. 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.

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

Galán added that their 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.”

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