Iberdrola, a company based in Bilbao, has announced its plan to invest a whopping £24 billion ($31 billion) in the UK electricity sector between 2024 and 2028. This investment marks a significant increase from their previous investments in the country.
A large portion of this investment will be focused on expanding transmission and distribution networks, as the British electricity grid is in need of a major overhaul. The company also plans to prioritize offshore wind projects, with the East Anglia 3 project already under construction. Following this project, the East Anglia 2 project, valued at £4 billion, has been awarded in the UK’s AR6 auction.
Iberdrola’s Executive Chairman, Ignacio Galan, expressed confidence in the UK’s policies and emphasized the importance of these investments in driving the country towards green energy security and net zero emissions. Through its ScottishPower unit, Iberdrola has already invested £30 billion in the UK over the past 15 years, showcasing their commitment to the country’s energy sector.
The company is also focusing on new onshore wind, solar photovoltaic, and battery projects to further contribute to the UK’s energy transition. With the growing power demand in the UK and the government’s initiatives to promote net zero emissions, Iberdrola sees great potential for further investment in the country.
In addition to transmission investments, Iberdrola is working on offshore wind projects, including the East Anglia hub, which will amount to a total investment of £10 billion. The company aims to complete construction of this hub by 2026, contributing to the UK’s goal of quadrupling offshore wind capacity by 2030.
The UK government is also planning to publish an action plan by the end of 2024 to outline how it intends to achieve the 2030 clean power target. Offshore wind capture prices in the UK have been averaging £62.85/MWh in the third quarter, highlighting the growing importance of renewable energy sources in the country’s power sector.
Overall, Iberdrola’s increased investment in the UK’s energy sector reflects a positive outlook on the country’s energy transition and the government’s commitment to decarbonization. These investments will not only drive economic growth but also contribute significantly to achieving the UK’s green energy goals.