Galan: here's why Iberdrola's going 'Anglo-Saxon' and big on grids
Spanish group's executive chairman says time is right to seize networks opportunity and says 'we'll see' in relation to offshore wind past 2028
Iberdrola boss Ignacio Galan said market and policy signals mean the time is right for the Spanish power giant to become a more “Anglo-Saxon” business focused on networks – but added “we'll see” when asked about future plans in offshore wind.
That means Iberdrola will end 2028 with double the asset base of regulated network assets it started the decade with, a total of €70bn. Executive chairman Galan said focusing on building transmission and distribution infrastructure in two markets that badly need it will allow the Iberian group to become a “growth Anglo-Saxon” business in a sector with stable and attractive returns.
Iberdrola is already a major player in UK networks and Galan said the company just “had a meeting with the chairman of [UK power regulator] Ofgem. They’re pushing us to accelerate construction, asking ‘why can’t you do more, faster?’”
In the case of the US, where networks are regulated at state level, he claimed there was broad bipartisan agreement over the need to modernise grids “that are really old fashioned”.
“The timing is fixed by the countries – they are saying now is the time,” he said when asked by financial analysts why the company was now accelerating its shift into networks.
“We have the opportunity to participate in the new era of electrification,” thanks to its long-established footprint – ScottishPower in the UK and Avangrid in the US – in “countries that are waking up” to the need for urgent investment given looming demand growth in areas such as data centres, EVs and industrial electrification.
'Selective and opportunistic in renewables'
Galan, speaking today at the launch of the group’s latest strategy, bristled at suggestions that the increasing emphasis on network investments means it is shunning renewable generation, where it has been a global pioneer.
He claimed the group’s long-held strategy based around “renewables, networks and storage” remains intact with only the emphasis changing.
“We’ve got 60GW [of capacity, including 45GW of renewables] in production and 9GW in construction.”
“We’re going to invest €20bn in renewables in the next three years. Give me a list of my colleagues who are putting in €20bn.”
In offshore wind, the focus of the latest strategy period is on finishing 3.5GW across four projects – Vineyard 1 off the US (where Iberdrola is hoping to avoid the attentions of Donald Trump), Windanker in the German Baltic and the UK EA1 and 2 developments.
They will all be completed by 2028, and Galan said Iberdrola would then still have a significant pipeline of potential opportunities to pursue, but only if “based in secure prices, a CfD (contract for difference) or similar... We’ll see”.
The Iberdrola boss said the company would, for example, “probably” take part in the UK’s forthcoming AR7 power auction where its 800MW EA1 North could be in the running for a CfD.
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