Iberdrola to allocate a large part of its 41 billion euro investment plan to the United States

Ignacio Galán in the Financial Times: "The focus in the United States is on networks"

Ignacio Galán, Iberdrola
Ignacio Galán, Iberdrola

Iberdrola will allocate a large part of its 41 billion euro investment plan to the United States, with the aim of investing in its distribution and transmission networks, according to an interview with Iberdrola's chairman, Ignacio Galán, in the Financial Times.

Commenting ahead of this year's presidential election, Galán stressed: "The focus in the US is on grids, and grids are based on state regulation, they are not at all dependent on the federal authorities".

Galán also said he expected the Inflation Reduction Act (IRA) to remain in place after the election, as it provides long-term certainty for investors, but stressed that all projects planned for the 2024 to 2026 plan already have guaranteed tax credits. "We are not dependent in our plan on the IRA being maintained," he said.

The chairman detailed in London the keys to the 2024-2026 Strategic Plan, during the celebration of the company's Capital Markets & ESG Day.

Europe's largest electricity company by market value has announced that it will allocate 34% of this total to the US over the next three years, while the UK will receive 24%, or almost 10 billion euros.

Iberdrola plans to invest in renewable energy generation, with the planned €15.5 billion earmarked for projects at an advanced stage of construction or about to start. The investment should add around 9,000 MW to its portfolio of approximately 42,000 MW, contributing to reaching its target of 52 GW of installed renewable capacity by the end of 2025. It plans to allocate most of these funds to offshore wind projects in the US, UK, France and Germany.