Solar Scores Highest In Iberdrola’s Investment Plan

Share Of Solar PV Over 50% Of Targeted 12 GW Of Renewable Additions in Spanish Energy Company Iberdrola’s Investment Plan

Solar Scores Highest In Iberdrola’s Investment Plan

During the company’s Capital Markets Day 2022, Iberdrola unveiled its plans to expand its total renewable energy installed capacity globally to 52 GW, up from around 40 GW it expects to exit 2022 with. (Source: Iberdrola)

  • Iberdrola’s new energy transition investment plan for 2025 is worth €47 billion, out of which €17 billion will be spent on renewables
  • Of the cumulative 12 GW of new renewables capacity aimed for by 2025, more than half will be contributed by solar PV
  • The company claims to have a 100% contracted panels capacity to achieve the aim

Spanish energy company Iberdrola will invest €17 billion to add over 12 GW of new renewables capacity to take its total installed renewable energy capacity to 52 GW by 2025. Of this investment 24% is reserved for solar PV, but when looking at new renewables additions solar’s share is over 50%. Iberdrola plans to add 6.3 GW between 2022 and 2025 thanks to ‘100% contracted panels’.

This contracted supply of panels is aimed by the group to minimize the impact of raw materials and inflation.

New solar PV capacity will be sited in Spain, the US, United Kingdom (UK), Brazil, Australia and other European Union (EU) nations. Among other technologies that partake from this planned investment, offshore wind gets the lion’s share of 46% (1.8 GW), onshore wind 25% (3.1 GW), battery storage 3% (700 MW), and hydropower 2% (200 MW).

It will be a growth from around 40 GW that the company believes it will exit 2022 with, said Iberdrola’s Executive Chairman Ignacio Sanchez Galan during the company’s Capital Markets Day of 2022. Cumulative installed solar PV capacity of Iberdrola at the end of 2025 is estimated to grow to 10.6 GW from 4.3 GW in 2022, whereas onshore wind will expand to 23.5 GW from 20.4 GW now, respectively.

This investment will be part of a €47 billion energy transition plan to be invested between 2023 and 2025 and comprises €27 billion for grid networks.

More than 80% of investments are allocated for A-rated countries that offer stable regulatory frameworks and ambitious electrification targets with largest amount reserved for the US (47%), followed by the UK (16%) and Spain (13%), among others.

“The record global investment plans we have set out today will help us to bring more self-sufficiency and resilience against potential energy shocks in the countries where we operate, by reducing their dependency on oil and gas and by continuing their path to Net Zero,” said Galan.

Iberdrola has guided for its EBITDA to reach €16.5 billion to €17.0 billion by 2025 and net profit increasing to €5.2 billion to €5.4 billion.

In 2020, the company had said it will target 16 GW solar PV capacity for a renewable energy goal of 60 GW by 2025 with an investment of €75 billion.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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