Spanish renewable energy giant Iberdrola announced on Monday its plans to invest nearly €14 billion ($15 billion) in Britain by 2028, focusing on grids and renewable projects. The expanded investment aligns with Iberdrola's strategy, emphasizing networks for predictable returns and a selective approach to renewables, prioritizing projects with higher returns.
This substantial commitment represents an additional €8 billion to Iberdrola's previously pledged investment in Britain for the period between 2023 and 2025. The move reflects a broader trend among European energy companies, including Italy's Enel, which are exercising caution in the renewables sector due to high interest rates and rising debt costs.
Approximately two-thirds of the planned investment will be directed towards transport and distribution networks, with over €3 billion allocated for the construction of Eastern Green Link 1 (EGL1), a subsea cable designed to transport renewable energy to power two million households. Construction for EGL1 is set to commence in early 2023.
In addition to network investments, Iberdrola commits to funding solar and wind projects, including the East Anglia 3 offshore wind project off Britain's eastern coast, and green hydrogen initiatives. The company emphasizes the stable and predictable regulatory frameworks in the UK as a driving force for its continued investments in networks and renewables, aligning with the country's climate objectives.
The overall investment may increase with potential opportunities in offshore wind, according to Iberdrola. The announcement coincides with several other investment unveilings by the UK government to advance the country's energy transition goals.
