Ignacio Galán analyses Iberdrola's strategy for success at Harvard University

Iberdrola has become a case study for Harvard. Graduate students at the prestigious American university had the opportunity to talk with the chairman of Iberdrola, Ignacio Galán, and to analyse the decisions taken over the last 20 years that have marked the company's strategy and its drive towards clean energy.

The conference was part of the case study "Iberdrola, leading the energy revolution" prepared by Professor Juan Alcácer, James J. Hill Professor of Business Administration at Harvard Business School and director of the event, who was accompanied by Rebecca A. Karp, Assistant Professor of Business Administration.

The analysis examines Iberdrola's business model, which has demonstrated over the past two decades its ability to constantly monitor new technologies and strategically decide when to invest in them to achieve its ambitious decarbonisation goals. The text highlights the leading role of its chairman in driving Iberdrola's growth on the company's three pillars: the renewables business, the network business - with regulated and stable revenues - and the customer business, with customised and innovative solutions.

The case study also analyses the electricity company's future strategy, the group's commitment to renewable sources, grids and energy storage, as well as its role in the green hydrogen revolution. On the latter technology, as it has already done with renewables, the company is leading the new challenge of renewable hydrogen production and supply. It is thus at the forefront of this new revolution and supports industry in reducing its polluting emissions.

In his address to the students at Harvard's Aldrich Hall, Galán recalled his student past, reviewed the business model and the dizzying change from a small local company to what it represents today in the world.

Iberdrola was a pioneer in investing in renewables and this allowed the company to position itself as a leader in driving the electricity industry in the fight against climate change. Since Galán was appointed CEO of the company in 2001, investments in renewables and grids have exceeded 130 billion euros, with a further 47 billion expected by 2025.

By examining the actual decisions and strategy adopted by the company, and having the opportunity to speak directly to senior management, the postgraduate students were able to gain an insider's view that will help them in their studies and future careers.

The appointment of Ignacio Galán as CEO of Iberdrola enabled the company to implement a growth strategy based on clean energy and the reduction of its emissions before anyone else in the sector had committed to the energy transition. Time has shown that this was the right decision.

In that time, the Spanish company has gone from 20th place in the global ranking of electricity companies to being the third largest in the world by market capitalisation, multiplying its size and results by a factor of five.

Iberdrola has had to stop being an almost 100% Spanish company and become a truly global company. It decided to enter other countries with high credit ratings, predictable regulations, stable legal frameworks and administrations committed to decarbonisation, making secure, long-term investments.

It has now become the largest electricity company in Europe and one of the top three in the world by market capitalisation, a leader in renewables, leading the energy transition to a low-emission economy. The group supplies energy to close to 100 million people in dozens of countries and develops its renewable, grid and commercial activities in Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia and maintains as growth platforms markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.