The Spanish electric utility aims to commit €21.5bn towards the expansion and strengthening of electric grid networks in the US, UK, Brazil and Spain while allotting €15.5bn for clean energy projects
Iberdrola announces €41bn investment in electric grid and renewables by 2026. (Credit: Iberdrola, S.A.)
Iberdrola has revealed plans to invest €41bn by 2026 in energy electrification with a focus on expanding the company’s electric grid development and renewables growth in various countries.
The Spanish electric utility aims to commit €21.5bn towards the expansion and strengthening of grid networks in the US, UK, Brazil, and Spain. This represents 60% of the planned investments.
Iberdrola has also allotted a gross investment of €15.5bn in renewables projects. It includes €5bn contributed by partners in clean energy projects that have been already identified.
More than 50% of the renewable energy commitment will go to the development of offshore wind energy in the US, UK, France, and Germany, the company said. All projects that will be funded are already under construction.
A further €1.5bn will be invested to boost global energy storage systems. Iberdrola aims to reach 120 million kilowatt-hours (kWh) of pumped storage capacity over the next three years.
Besides, the electric utility’s gross commitment includes its previously announced $2.48bn deal with US-based subsidiary Avangrid. Under the terms of the proposed offer, Iberdrola will acquire the remaining 18.4% of Avangrid it previously didn’t own for a price of $34.25 per share.
Furthermore, the company will invest €2.5bn to focus on customers. Iberdrola will also generate employment by hiring 10,000 new employees in the period.
The Spanish group said that its US operations will receive the highest proportion of the investment, at 35%. This is followed by the UK (24%), Iberia (15%), Latin America (15%), and Germany, France, Australia and others, which will get a combined 11% share.
Iberdrola executive chairman Ignacio Galán 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.
“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.”