Record Renewables Production Boosts Iberdrola’s H1 2024 Performance

Spanish energy giant Iberdrola has reported H1 2024 net profit at a staggering €4.13 billion, representing a 64% Year-over-Year (YoY) increase attributing the achievement to record renewables production and robust performance in its networks business. 

Offshore wind was the major contributor to the high renewable energy production, it informed. 

The company’s total net-owned renewables capacity reached 43.4 GW, with the inclusion of 3.1 GW in the last 12 months. While the largest chunk of it was onshore wind with 20.8 GW installed capacity, it was followed by 13.1 GW hydropower and 6.88 GW solar, and 198 MW batteries. 

Its renewables business performed especially well in Spain, exceeding 18,500 GWh, a YoY improvement of 21%, during H1 2024, according to the management. In this country, its net production renewables generation went up by 21.4% annually to 18,508 GWh; however, for solar, it was a decline of 17.7% at 1,300 GWh. Iberdrola expanded its installed solar capacity in Spain by 41.2% to 4.5 GW. 

The group’s reported EBITDA for H1 2024 went up by 27% to €9.6 billion, driven by Mexico’s capital gain and improved operating performance, reaching close to 90% emission-free production.  

During the reporting period, Iberdrola directed more than 90% of its total investment to networks and renewables, with 34% going to the US as the largest investment destination, followed by 22% to the UK. In all, it invested €5.28 billion, 41% or €2.7 billion of which was pocketed by the renewables business.   

Its global power purchase agreement (PPA) portfolio swelled by 3 TWh over the last year with new contracts signed in the US, UK, mainland Europe and Mexico. According to the management, the group now has sold 35 TWh of renewable production to top-tier commercial partners via long-term contracts.   

“We are making good progress on delivering against the targets in our business plan to 2026,” said Iberdrola’s Executive Chairman, Ignacio Galán. “On top of this, we also expect further medium-to-long-term growth opportunities to crystallize in the second half of the year, in our networks and storage business areas, as well as new opportunities to support the expansion of data centres.” 

Under its Strategic Plan 2024-2026, Iberdrola plans to invest €41 billion, including €15.5 billion in renewables as the company bets big on offshore wind. Onshore wind and solar are planned to get 28% and 18% of the total renewables investment.    

Going forward, it targets to achieve double-digit growth in net profit for FY 2024 as the management factors in new capacity additions of 1.6 GW during the remainder of the year.