Ignacio Galán, Chairman of Iberdrola: "We need to increase investment in networks to make the energy transition possible"

Ignacio Galán, chairman of Iberdrola, called for accelerated investment in grids. "We need to increase investment in electricity grids to make the energy transition possible," he said at the Bloomberg New Energy Finance (BNEF) summit, which brought together the sector's main leaders in London.

The president said that in order to decarbonise the economy, there needs to be a greater commitment to grids. "For every euro invested in renewables, one euro must be invested in electricity grids," he said. In fact, Galán estimates that investment in grids will be multiplied by three or four to be able to integrate new renewable power, offer security of supply and resilience in the face of extreme weather phenomena and to be able to develop the digitalisation of the system, so necessary for the expansion of electric mobility, self-consumption and heat pumps. 

"Energy companies are ready to invest, as we have the technology, the people, the talent and the capacity to do so. It is vital that regulators recognise this need and create the conditions for this to happen. To be able to invest in grids, we need predictability, stability and attractive profitability," said the Iberdrola chairman. 

Aware of the potential of electricity grids in the transition, two-thirds of the company's investment plan for 2023 and 2025 - the company plans to invest 47 billion euros in its plan - will be allocated to the electricity grid activity, with the aim of providing continuity to its deployment, consolidating a solid distribution network and making it more flexible, based on an ambitious digitalisation process as a key element to respond to the future needs of the electricity system. 

Iberdrola already operates one of the most important electricity distribution systems in the world; more than 1.3 million kilometres of power lines and more than 4,500 substations, which distribute electricity to more than 35 million people worldwide.