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

The bulk of this investment is focused on boosting renewable energy and will mean the creation of 20,000 jobs in the company during the period 2020-2025, which will represent a very significant step forward in the energy transition

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

90% of this investment volume – 68 billion euros – will be organic andIt will be aimed at consolidating its business modelThis is based on more renewable energy, more grids, 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 amid the health, social and economic crisis caused by the COVID-19 pandemic, represents a significant incentive for achieving the energy transition goals of the United Nations’ 2030 Agenda and of theGreen Deal Europeo, which seeks climate neutrality for the old continent by 2050.

Boost in renewables

This announcement will double Iberdrola’s current renewable energy capacity, significantly boosting its presence in offshore wind, with 4 GW installed by the end of the investment plan. This will be complemented by substantial growth in solar photovoltaics, with projected installations reaching 16 GW by the end of the period, as well as strengthening its leadership in onshore wind and hydroelectric power, where it will reach 26 GW and 14 GW, respectively, by 2025.

“Our business model, after 20 years of anticipating the energy transition, positions us as a key driving force in the transformation of the industrial fabric, promoting with our experience, social commitment and financial capacity, a long-term sustainable economic growth model capable of facing the current challenges of society,” said Ignacio Galán, president of Iberdrola, in a press release.

Investing in electricity grids is key to economic development

The group continues to consider networks a key factor in the electrification of the economy and the revitalization of the regions. Thus, alongside renewables, Iberdrola’s model and strategy will continue to prioritize 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 by 2025, 1.5 times its current value. This figure includes investments in transmission, which will reach €4 billion.