Spanish energy utility giant Iberdrola has sold its Mexican power business for US$4.2 billion, as part of its shift to focus on US and UK electricity transmission networks.
The deal includes 15 power plants with 2.6GW of energy capacity, 1.232GW of which are solar and wind assets. The remaining 1.4GW comprises combined cycle and cogeneration plants. The deal values the portfolio at around US$1.6 million per megawatt.
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Iberdrola says the sale of its Mexican business supports its plans to invest €55 billion (US$63 billion) in electricity transmission and distribution networks over the next six years, primarily in the US and UK. It follows a €5 billion capital raise last month intended for the same investments.
The strategy has seen Iberdrola post vast profits in the last year. The company recorded €3.5 billion in profits in the first half of 2025, and over 60% of its €5.6 billion worth of investments over the period were in the UK and US.
Via its UK subsidiary, ScottishPower, Iberdrola acquired the Electricity North West distribution firm last year for €5 billion and has continued investing in its US subsidiary, Avangrid Networks. It also expects to invest in networks in Brazil and Spain via its regional subsidiaries.
The company has said its investment strategy will focus on “countries with stable, predictable and incentivising frameworks and with an A-rating”. Simultaneously, it is increasingly focusing on energy generation capacity in regulated markets, with “selective” investment in new renewables capacity.
In 2024, Iberdrola’s operational solar PV capacity increased by 31% to 7.8GW.
