Iberdrola said it will direct two-thirds of its global investment towards energy grids in the United Kingdom and United States over the next three years, citing favourable regulatory conditions and strong market demand in both countries.
The Spanish energy group announced on Tuesday that it will increase the UK-US share of its total gross investment from 40% to 65% by 2028. The company plans to spend €37 billion on expanding its transmission and distribution networks, a move expected to deliver an average return on equity of 9.5%.
“Our investment plan is not only ambitious but transformative,” Iberdrola Chief Executive Pedro Azagra Blázquez told investors during a capital markets day. “The priority is the right countries where we have personnel with the right skills and governments that have shown commitment.”
Iberdrola aims to increase its annual investment to €14.5 billion—€1 billion more than its previous plan—as part of a broader strategy to strengthen operations in countries with strong credit ratings. In addition to the UK and US, the company has allocated €9 billion for Spain and Portugal, €7 billion for Brazil, and €5 billion for other EU markets and Australia.
The capital reallocation is designed to support a projected rise in adjusted net profit from €5.6 billion to €7.6 billion by 2028.
While the majority of new investment will be directed toward grid infrastructure, €21 billion will support generation capacity growth. Iberdrola said it is taking a more cautious approach to expanding its current 45GW renewables portfolio, though 75% of planned wind, solar and storage capacity—equivalent to 3.5GW—is already under construction.
This includes the 1.4GW and 963MW East Anglia 3 and East Anglia 2 offshore wind projects being developed by Iberdrola subsidiary ScottishPower Renewables off the east coast of England.
In the US, the company will continue developing onshore wind projects that remain eligible for federal tax investment credits introduced under the Biden administration.
Azagra Blázquez said the shift reflects a “focus on high growth and high return markets,” supported by “well-defined, stable and predictable regulatory frameworks.”
