Iberdrola has unveiled an ambitious €58 billion investment plan for the period between 2025 and 2028, marking a significant shift in the Spanish utility’s strategic focus. The plan represents a 30% increase from its previous investment roadmap, with a clear emphasis on transmission and distribution networks in the UK and US.
Two-thirds of the investment will be directed towards regulated networks, with 85% of funds channelled into A-rated countries with stable regulatory frameworks. The UK will be the largest recipient of these investments, with €20 billion allocated, followed by the US with €16 billion. Iberia will receive €9 billion, Brazil €7 billion, and other EU markets and Australia will share a €5 billion investment pot.
The company aims to expand its regulated asset base to €70 billion by 2028, with €25 billion dedicated to distribution and €12 billion to transmission. Notably, 95% of these transmission investments will be concentrated in the UK and US.
Iberdrola’s investment in generation and customer projects will amount to €21 billion, with 75% of these projects already under construction. Offshore wind will receive the largest share, accounting for 38% of the investment, followed by onshore wind at 24%, solar at 10%, and storage at 10%.
The company forecasts that its EBITDA will reach €18 billion in 2028, up €3 billion from previous estimates, with networks accounting for 55% of the total. Adjusted net profit is expected to rise by €2 billion to €7.6 billion. Close to €20 billion will be distributed in dividends between 2025 and 2028, with a payout ratio set between 65% and 75% and a floor of €0.64 per share.
Iberdrola’s investment plan is not just about financial growth. The company will hire 15,000 people, invest €1.6 billion in R&D, support 500,000 jobs through supply chain purchases of €65 billion, and contribute over €40 billion in taxes.
Executive chairman Ignacio Galán stated, “This plan aims to transform Iberdrola’s profile into a more regulated company, with networks as a vector for growth.” He added, “We expect to achieve a net profit of €7.6bn in 2028, with around €20bn allocated to dividends between 2024 and 2028.”
This investment strategy signals a significant shift in the energy sector, with a clear focus on network expansion and stability. It underscores the growing importance of regulated assets in the energy transition, as companies seek to balance growth with risk mitigation. The emphasis on the UK and US markets also highlights the strategic importance of these regions in the global energy landscape. As Iberdrola pivots towards a more regulated profile, it sets a precedent for other utilities to follow, potentially reshaping the sector’s investment strategies and priorities.