Basque wind energy giant Iberdrola has revealed that it plans to invest €75 billion in its renewable energy production, grids and retail operations by 2025 to capitalise on growing global demand for clean power.

Iberdrola said its investment programme for the next six years, the largest ever by a Spanish company, “will contribute to boosting the industrial fabric and job creation in the countries where the group operates.”

Iberdrola chairman Ignacio Galán said that “after 20 years of anticipating the energy transition, our business model positions us as a key agent in the transformation of the industrial fabric.”

Galán added: “With our experience, our engagement with society and our financial strength we are advancing a model for long-term sustainable economic growth capable of meeting the current challenges of society.”

The investment will be made in Spain and around the world. The United States and the United Kingdom will account for €34 billion of the plan.

The Bilbao-based company said: “Iberdrola launches a historic investment plan worth €75 billion euros for the period 2020-2025, with the aim of anticipating and taking advantage of the opportunities created by the energy revolution facing the world’s major economies. 

“90% of this investment volume – €68 billion – will be organic and will be aimed at consolidating its business model, based on more renewable energy, more networks, more storage and more intelligent solutions for its customers.

“The rest, €7 billion euros, corresponds to the recently announced acquisition of American company PNM Resources.

“This unprecedented rate of expenditure will represent an average investment of €10 billion per year between 2020 and 2022, and €13 billion per year in the period 2023-2025.

“Iberdrola’s investment strategy — together with its efficiency policy — will continue to deliver profitable growth during the period, while maintaining its financial strength and shareholder remuneration.

“The group expects to obtain a gross operating profit (EBITDA) of €15 billion by 2025, which means an increase of €5 billion from 2019, with average annual growth of 7%.

“Net profit would amount to €5 billion, after growing annually by between 6% and 7% during the period.

The presentation of the outlook to 2025 has been used to review upwards the group’s outlook for 2022, despite the COVID-19 context. Thus, net profit in 2022 will be in the range of €4 billion to €4.2 billion, compared to the €3.7- €3.9 billion initially foreseen. Gross investment will rise by 35% to €50 billion, compared to the €38-billion forecast, and efficiencies will rise to around €1.6 billion, exceeding the €1.2 billion forecast and maintaining the rating at BBB+/ Baa1 levels.