Iberdrola is set to double its renewables capacity by 2025 through a €75 billion (US$88.9 billion) investment package that sees the Spanish utility seek to take advantage of the “global energy revolution” and reach carbon neutrality in ten years.
The company forecasts that its largest-ever funding plan will enable it to increase renewables capacity from its 32GW level last year to 60GW in 2025, with solar PV set to more than double to 16GW.
Around 90% of the investment will be based on renewables production, energy storage and more networks and intelligent solutions for its customers. The remainder relates to its recent acquisition of PNM Resources, owner of utilities in Texas and New Mexico.
Iberdrola CEO Ignacio Galán said the company is “advancing a model for long-term sustainable economic growth capable of meeting the current challenges of society”.
With renewable energy project pipeline of 70.5GW, including 30.7GW of solar, Iberdrola said it is in a “unique position to tackle the global energy revolution”, focusing on countries with ambitious climate and energy targets. The US and UK will account for half of the total investment, while expenditure in Spain will increase by 60% on previous plans.
In line with the climate objectives of its main markets, Iberdrola has a ten-year goal whereby its installed renewables capacity will increase to 95GW.
Having recently formed a new business unit focused on green hydrogen and revealed plans for what it describes as “Europe’s largest” solar-storage-hydrogen project, Iberdrola said its activities will lead to the development of a supply chain that will support the implementation of new electrolyser manufacturers. In line with European goals, the company plans to install 800MW of green hydrogen capacity in the next seven years.
Despite coronavirus-related disruptions – including a temporary pause on solar and wind plant construction in Spain earlier this year – Iberdrola has updated its financial outlook for 2022, with net profit to be around €4 – €4.2 billion, up from the previously projected €3.7- €3.9 billion.
When the firm secured €800 million in funding in July to spearhead new renewable energy deployment in Spain, CEO Galán said a green recovery from the pandemic is the “perfect opportunity to generate sustainable growth and massive future employment”.