MADRID/LONDON (Reuters) – Iberdrola plans to invest 47 billion euros ($47 billion) in power grids, renewable energy production and customer business in 2023-2025, in addition to anticipating an increase in profits, the company said. The Spanish energy company this Wednesday.
Iberdrola strives to remain one of the world’s leading companies in renewable energy at a time when utilities are facing a difficult transition away from fossil fuels, accelerated by the need to reduce Russia’s dependence on energy.
In an update to its strategy, Iberdrola said 57% of the investment, or 27 billion euros, would go to power grids in the United Kingdom, Brazil, Spain and the United States.
The electricity company said 85% of that investment is secured, with deals already concluded or expected to close next year.
About €17 billion of the total investment of $47 billion will go to renewable energy. Nearly half of that will be spent on offshore wind energy.
“If we are to learn a lesson from the current crisis, it is essential to quickly provide electricity to a safer, cleaner and more competitive energy system,” said Iberdrola CEO Ignacio Galan.
He added: “The global investment plans that we put in place today will help us achieve more self-sufficiency and resilience against potential energy shocks in the countries in which we operate, reducing their dependence on oil and gas and continuing their path to ‘net zero’.
Italy’s Enel, which controls Spain’s Endesa facility, said it plans to spend 160 billion euros ($190 billion) over the next 10 years to become a green “major,” of which 70 billion will be spent on renewables to triple. (GW).
New CEO Armando Martinez said at the company’s meeting with capital markets in London that Iberdrola currently has 40 gigawatts of renewable energy.
He added that the company plans to provide 52 gigawatts of new installed renewable energy by 2025. More than half of the new capacity is already insured and about 95% of production in 2025 is under contract.
According to analysts at investment bank Jefferies, the target for adding renewables by 2025 has been lowered from the previous 60 GW, while the target for 2030 has been revised to about 80 GW, from the previous 95 GW.
The Spanish company said Iberdrola’s net income is expected to rise between 5.2 billion and 5.4 billion euros by 2025, from a forecast of 4 billion euros to 4.2 billion euros in 2022.
(by Jesus Aguado and Jessica Jones in Madrid and Nina Chestney in London)
“Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast.”
