Iberdrola to Spend €58 Billion by 2028 With Grids Driving Growth
(Bloomberg) -- Iberdrola SA plans to invest about €58 billion ($68 billion) in mainly its UK and US power networks as the Spanish utility bets that its grid business will provide higher growth in the coming years than power plants.
As much as 65% of the total sum will go into regulated assets, the company said in a statement ahead of its capital markets day in London on Wednesday. That will be funded by a mid-to-high single-digit earnings growth going forward, Iberdrola said.
The world’s electricity grids will become even more important in the future as everything from heavy industry to transport will require more power transported across nations, increasingly supplied by renewable energy.
In the past few years, the Spanish utility has shifted the bulk of its investments into the expansion of its global networks business, making acquisitions from the US to the UK and Brazil. As much as 85% of the future investments will go to those and other A-rated countries, it said.
“This plan aims to transform Iberdrola’s profile into a more regulated company, with networks as a vector for growth,” Chairman Ignacio Galan said in the statement.
The pivot toward grids was first outlined in 2022 with Iberdrola agreeing to raise its stake in Brazilian power distributor Neoenergia SA. Last year, the company bought the rest of its US unit Avangrid Inc. and the majority in UK grid operator SP Electricity North West.
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