Iberdrola increases investments in 2021

4C Offshore | Tom Russell
By: 21/07/2021 Iberdrola
Iberdrola has announced that, during the first half of the year, it has made investments of €4.9 billion; 37% more than in the same period of the previous year.  

More than 90% of investments were allocated to renewables activities (45%) and smart grids (46%). By markets, more than half went to the United States (27.1%) and Spain (25.4%). Investment in the Iberdrola International business area grew and represented 17.2% of the total, while Brazil received 14.5% and the United Kingdom 12%.

Ignacio Galán, Chairman of the Iberdrola group, said: "These results are the fruit of an unprecedented investment effort. In a period of great complexity, we have accelerated investment in grids, renewables and storage, promoting economic activity and helping to create quality jobs around the world."

Between January and June 2021, the company achieved a gross operating profit (Ebitda) of €5.44 billion (+10.2%) (up 15%, excluding the impact of COVID-19 and the exchange rate).  85% of the total came from networks and renewables with 80% generated in countries with A rating.

Iberdrola's investment plan allowed for the company's renewable operating capacity to grow over the six-month period and it now exceeds 35,600 MW. In the last 12 months, Iberdrola has commissioned 2,960 MW of new green capacity, of which 1,950 MW are onshore wind, 930 MW solar photovoltaic and 80 MW battery storage.

The company, which expects to end the year with an additional 4,000 MW in operation, is currently progressing with the construction of 8,500 MW. By geographies, 1,700 MW (20%) is being built in Spain, Iberdrola Energía Internacional is constructing 2,860 MW and 2,750 MW are under construction in the United States. At present, the company has 1,050 MW of green capacity under construction in Brazil, and 150 MW in the United Kingdom, of which 100 MW are battery storage.

Iberdrola has committed to install and commission a total of 27,600 MW in the period 2020-2025, with the aim of reaching 60,000 MW of renewable capacity. As of June 2021, nearly 22,000 MW are under construction or in advanced development.

As of June, the group's project pipeline amounts to 81,500 MW, of which 25,200 MW are offshore wind; 15,500 MW onshore wind; 36,600 MW photovoltaic; 3,400 MW hydro and 1,100 MW batteries. Iberdrola is looking at offshore wind markets such as Japan, Poland, Sweden, Ireland, Korea, Taiwan and Australia as well as traditional European markets (Spain, Portugal, United Kingdom, Germany, France and Italy), the United States and Brazil.

To support this expansion phase, Iberdrola has accelerated the procurement process - which has amounted to €18 billion since the beginning of the pandemic.

One of the group's main growth platforms is the development of offshore wind projects. The company already operates more than 1,300 MW and is progressing on schedule with the
Saint Brieuc (France, 496 MW), Vineyard Wind 1 and Park City Wind (United States, 800 and 804 MW respectively) projects. As well as Baltic Eagle (Germany, 476 MW) in order to double its offshore wind capacity in the coming years.

Iberdrola stated that its strategy in offshore wind will be boosted by the auction processes planned in the short term in key markets: Europe (37,000 MW between 2021-2022), US and Asia Pacific (13,800 MW by 2024).