Spanish utility company Iberdrola matched its Spanish rival’s move, announcing a €58 billion ($68 billion) investment plan through 2028. A majority of this capital is expected to be deployed to strengthen power distribution infrastructure in the UK and US. This decision further illustrates the company’s commitment to growing its regulated, electric grid assets and changing its operational profile.
Meanwhile, Iberdrola has big plans, too – about 85% of its capital spending in the UK and the US, combined! Forming part of this strategic pivot, which is intended to create a more predictable corporate structure, is a new emphasis on networks as a growth vector. By investing billions in infrastructure, Iberdrola is betting on a long-term, stable, and profitable energy future in an industry that has been undergoing drastic transformations.
Strategic Allocation of Funds
This socially responsible fund company has published a detailed roadmap to its investment portfolio. Offshore wind – Iberdrola plans to spend 38% of its overall capex on offshore wind projects, showcasing its focus on renewable energy. Further, 24% of this funding will go towards onshore wind and 10% towards solar photovoltaic projects. The last 10% of their portfolio will be deployed specifically to energy storage technologies.
The utility is committed to investing €21 billion in its generation and customer-facing business over the next five years. Seventy-five percent of this set-aside is directed to projects already in construction. This is indicative of a robust pipeline of continued development.
“We will invest €58bn by 2028, two-thirds of which will go to transmission and distribution networks, mainly in the United Kingdom and the United States.” – Ignacio Galán
Future Growth Projections
Iberdrola’s ambitious investment plan is not only targeted toward short-term objectives but builds a foundation for long-term expansion. The company hopes to bring in some €45 billion more between 2029 and 2031. This move will help reinforce its strategic direction toward the UK and US markets. By this Iberdrola timeline, the company hopes to exceed an asset base of over €90 billion.
Iberdrola expects its net profit to hit €7.6 billion in 2028. The company has budgeted for some €20 billion in dividends from 2024 to 2028. This positive fiscal outlook reaffirms the company’s belief in their strategic approach and ongoing dedication to providing shareholder value.
“This plan aims to transform Iberdrola’s profile into a more regulated company, with networks as a vector for growth.” – Ignacio Galán