Iberdrola recently made a big move. They will sell their UK smart metering division, SP Smart Meter Assets (SPSMAL), to Macquarie for about £900 million (€1.07 billion). This strategic coup dovetails perfectly with Iberdrola’s long-standing smart strategy of rotating non-core assets, moves that continue to accelerate Iberdrola’s long-stated desire to simplify its operations. The deal is expected to close by May 12, 2025, subject to the approval of the UK’s competition regulator.
With this latest divestment Iberdrola has finally achieved that milestone. The £1.5 billion ($1.98 billion) the company has lost deploying smart meters throughout Britain is a significant stake in the ground. Today, SPSMAL takes care of 2.7 million smart meters, playing its part in Ofgem’s wider Smart Meter Rollout Programme. By the end of 2024, a total of 38 million smart meters had been installed in British households and small enterprises.
Alongside this smart metering deal, Iberdrola has been adjusting strategy with plans laid out in its Strategic Plan 2024/26. So far, this plan has already seen the company surpass €10 billion in announced divestments and partnerships. This transaction is Iberdrola’s second-largest divestment to date, behind the 2024 sale of combined cycle plants in Mexico.
Macquarie’s immense influence on the UK energy landscape can’t be overstated. They operate more than ten million meters, both smart and traditional. The acquisition of SPSMAL will enable Macquarie to offer an expanded service portfolio and tightens its focus on the overall smart metering market.
In March Iberdrola announced a strategic alliance with Japan’s Kansai Electric. As part of their joint cooperation, they will co-invest in the Windanker offshore wind farm. The project, estimated to cost €1.28 billion, is located in the Baltic Sea. It is due to be released in the fourth quarter of next year. The farm will consist of 21 turbines with a unit capacity of 15 megawatts.
Iberdrola continues to focus on investments that align with its long-term sustainability goals while optimizing its asset portfolio. Additionally, Iberdrola is divesting from SPSMAL as a strategy to reinvest in Iberdrola’s core areas. We believe this move reflects NextEra’s deeper commitment to pushing the envelope on innovation and efficiency in the fast-changing energy marketplace.