Iberdrola plans to invest as much as $68 billion over the next three years, with two-thirds of the investments in the UK and U.S. transmission and distribution networks, the Spanish utility giant said on Wednesday.
Iberdrola, one of Europe’s top utilities, plans $68 billion (58 billion euros) in total investments until 2028, mostly to accelerate growth in its networks business in the U.S. and the UK, the company’s executives said at its Capital Markets Day.
The investment plan transforms Iberdrola’s profile into a more regulated company, with a strategic focus on the United Kingdom and the United States, it said.
A total of 65% of investments will be in regulated Networks, and 85% of investments are planned in A-rated countries with stable, predictable, and attractive regulatory frameworks, Iberdrola added.
Of the power giant’s gross investments of $68 billion, 65% will go to the UK and the United States, compared to 40% of all investments in these two markets in the 2021-2024 period.
The UK will be Iberdrola’s top investment destination with $23.5 billion (20 billion euros), followed by the U.S. with $19 billion (16 billion euros), the Iberian markets with $10.6 billion (9 billion euros), Brazil with $8.2 billion (7 billion euros), and other EU and Australia investments of $5.9 billion (5 billion euros).
Despite the Trump Administration’s assault on renewable energy, the United States remains an attractive market for transmission and distribution amid soaring demand for electricity due to AI and manufacturing.
The U.S. needs a lot of investments in electricity networks, which are regulated at state level, Iberdrola’s executive chairman Ignacio Galán said at the Capital Markets Day.
More than $700 billion of grid investment is expected in the U.S. through 2030, as the U.S. infrastructure needs to be updated to accommodate the unprecedented growth of electricity demand, Goldman Sachs said in a report earlier this year.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- China Defies Sanctions With Sixth Russian Arctic LNG Cargo
- Italy Approves Saipem-Subsea 7 Energy Services Merger
- India’s Top Oil Producer Plans to Buy Up to 3GW of Renewable Energy
