Iberdrola to invest US$15B in grids and renewable projects in Britain

UK – Spanish energy giant Iberdrola has committed to investing £12 billion (US$15bn) between 2024 and 2028, primarily focusing on electricity networks and renewable energy.

Previously allocating over £2 billion (US$2.52bn) in a £6.7 billion (US$8.46bn) program between 2023 and 2025, the company now plans an additional £7 billion investment from 2026 to 2028.

Two-thirds of Iberdrola’s forthcoming investments (2024-2028) will target the transmission and distribution of electricity networks.

Notably, the £2.7 billion (US$3.41bn) Eastern Green Link 1 project, securing regulatory approval in November 2023, aligns with this strategy.

Continuing its investment drive, Iberdrola remains committed to projects like the East Anglia 3 offshore wind farm, onshore wind and solar energy, as well as green hydrogen initiatives in the UK.

Ignacio Galán, Iberdrola’s executive chairman, emphasized their support for the UK’s decarbonization efforts, stating, “Over the past 15 years, we have invested close to £30 billion (US$37.87bn) in bringing the benefits of greener and more secure energy to the UK.

“Backed by clear regulatory and policy frameworks, we are as committed as ever to speeding up our investments in the UK’s electricity grid and renewables generation.”

Iberdrola’s subsidiary, ScottishPower, achieved a milestone by becoming the first utility in the country to deliver 100% green electricity.

Concurrently, institutional investor IFM Investors signed a Memorandum of Understanding (MoU) with the UK government, committing to invest £10 billion (US$12.62bn) by 2027.

The MoU aims to collaborate with the government in identifying investment opportunities across the UK’s large-scale infrastructure and energy transition projects.

IFM Investors, through its portfolio company Nala Renewables, anticipates reaching 4GW in renewable capacity by 2025.

CEO David Neal highlighted the confidence of Australian super funds in the UK as an investment destination and emphasized the importance of such partnerships in mitigating systemic risks like climate change.

UK Business and Trade Secretary Kemi Badenoch hailed IFM Investors’ £10 billion (US$12.62bn) commitment, marking a significant investment in the country’s innovative energy and infrastructure sectors.

This substantial flow of capital, combined with the Global Investment Summit, reflects the UK’s growing stature as a leading destination for innovation and investment.

This development comes barely a month after Iberdrola finalized the sale of a 49% stake in its 476MW Baltic Eagle offshore wind farm to United Arab Emirates-based renewable energy developer Masdar.

Iberdrola now holds a majority interest of 51% in the project. It will control and manage the assets and offer operational, maintenance, and other corporate services.

The agreement between Iberdrola and Masdar forms part of a larger commitment between the two companies.

The deal is strategically significant for both, reinforcing their alliance and opening up new opportunities to invest in renewable energy.

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