Iberdrola will invest 75 billion euros over the next five years to promote the energy transition.

The bulk of this investment is focused on promoting renewable energy and will mean the creation of 20,000 jobs in the company during the period 2020-2025, which will mark a very significant stage of progress in the energy transition

Iberdrola, a leading energy company in renewable energies, has announced an ambitious global investment plan that represents a milestone in the Spanish private sector. The group, led by Ignacio Galán, will inject 75 billion euros of capital during the period 2020-2025 to promote the energy transition, as announced. Of this plan, 90% of the investments – 68 billion – will be organic. More than half of organic growth (51%) will go to renewables and 40% to grids. With this, the Bilbao-based company will reach 60GW of installed renewable energy in 2025, after reaching 44GW of installed capacity in 2022, doubling its current capacity and placing special focus on offshore wind and photovoltaic power.

90% of this investment volume – €68 billion – will be organic and will be aimed at consolidating its business model, based on more renewable energy, more networks, more storage and more smart solutions for its customers. The remaining €7 billion corresponds to the recently announced acquisition of the American company PNM Resources. This unprecedented pace of investment will represent an average investment of €10 billion per year between 2020 and 2022, and €13 billion annually between 2023 and 2025.

This announcement, which comes in the midst of the health, social and economic crisis caused by the COVID-19 pandemic, is an important incentive to achieve the energy transition objectives of the United Nations 2030 Agenda and the European Green Deal, which seeks climate neutrality for the old continent by 2050.

Boost in renewables

This announcement will result in doubling the current renewable capacity that Iberdrola currently has, giving a significant boost to its presence in offshore wind power, with 4GW installed by the end of the investment plan. Something that will also be complemented by significant growth in solar photovoltaic, with installation forecasts reaching 16GW by the end of the period, as well as by strengthening its leadership in onshore wind and hydroelectric power, where it will reach 26GW and 14GW in 2025, respectively.

“After 20 years anticipating the energy transition, our business model positions us as a key driving force in the transformation of the industrial fabric, driving, with our experience, social commitment and financial capacity, a model of long-term sustainable economic growth capable of addressing society’s current challenges,” stated Ignacio Galán, Chairman of Iberdrola, in a press release.

The commitment to electricity grids, key to development economic

Networks are still considered by the group as a key factor in the Electrification of the economy and revitalization of the territories. And so, along with renewables, Iberdrola’s model and strategy will continue to emphasize regulated assets. The company will allocate 40% of its organic investments to networks—more than €27 billion—, which will bring the group’s regulated asset base to €47 billion in 2025, 1.5 times its current value. This figure includes investments in transmission, which will reach €4 billion.