LINES OF BUSINESS

A business model based on Iberdrola's commitment to renewables, smart grids and innovative customer solutions

The Iberdrola group moves forward with its historic €75 billion investment programme in the run up to 2025, of which 90 % will be organic. This €68 billion of organic investment will be shared between the three lines of business: 51 % to Renewables, 40 % to Networks and 9 % to Generation and Retail. In addition the company is raising its investment to €150 billion by 2030, to triple its renewable capacity (95GW), double its network assets (€60 billion) and increase its customer base to 70 million contracts.

A SUCCESSFUL BUSINESS MODEL

 Results Presentation 2020 [PDF]     2020 Results

Current energy sector trends — the energy transition, the decarbonisation and electrification of the economy, technological innovation and improved customer connectivity — reinforce the focus of these three global businesses.

 

Renewables business.

The Renewable Energy area of the Iberdrola group — Iberdrola Renovables Energía, Iberdrola Renovables Internacional, ScottishPower Renewable Energy, Avangrid Renewables, the Renewables business of Neoenergia and Iberdrola Renovables México — is responsible for generating and marketing electrical power using renewable sources: wind (onshore and offshore), mini-hydro, solar thermal, photovoltaic, biomass, etc. Nowadays, Iberdrola is a leader in clean energy — it is the top renewable energy producer amongst energy providers in Europe and the US —.

The Iberdrola group continues to make progress in its €75 billion investment programme for the period 2020-2025. 51 % of this organic investment — over €34 billion — will be earmarked for Renewables, which will reach 60GW of installed capacity by the end of the period, compared to 34.8 GW at the close of 2020. This commitment will enable the group to give a major boost to offshore wind technology (to reach 4 GW installed by 2025), to grow in solar photovoltaic (to reach 16 GW installed by 2025) and to strengthen its leadership in onshore wind and hydroelectric (to reach 26 GW and 14 GW installed by 2025 respectively).

Similarly, the company's estimates for the 2030 horizon show an increase in installed renewable capacity to 95 GW, having multiplied its onshore wind and solar power by 2.5, and offshore by 4.5.
 


Networks business.

The Networks area of the Iberdrola group — i-DE, ScottishPower Energy Networks, the Distribution business of Neoenergia and Avangrid Networks — is responsible for building, operating and maintaining electricity lines, substations, transformation centres and other infrastructures to transfer electrical power from the production centres to the end user.

Of the group's organic investment, 40 % for the 2020-2025 period is earmarked for networks, over €27 billion, raising the regulated asset base at the end of the period to €47 billion, 1.5 times its current value, 83 % of which will be in 'A' rated countries. This figure takes into account investments in transmission, which will reach €4 billion.

The regulated asset base will double for the 2030 horizon, to reach €60 billion.
 


Wholesale and retail business.

The Wholesale and Retail area of the group — Iberdrola Generación España, Iberdrola Energía Internacional, ScottishPower Retail Holdings, Neoenergia Comercializaçao and Iberdrola Generación México — focusses on the production of electricity through building, operating and maintaining generation centres, and the purchase and sale of power on wholesale markets. It is likewise responsible for marketing the end user with power and additional services and products.

Of the organic investment in the 2020-2025 plan, 9 % will go to this area, €6 billion. By the end of the period, the company will have contracts with 60 million customers worldwide, compared with 43.8 million at the close of the Fiscal year 2020, to whom it will offer smart and cutting-edge solutions for the home (energy storage and heat pumps, self-generation and electric mobility) and for industry (Smart Solutions, electrification processes and green hydrogen). Services to customers will also increase to 40 million by 2025, compared to 25 million in 2019, with strong growth in Smart Solutions, which will see a twofold increase to 22.6 million.

By 2030, the electrification of energy usage will result in Iberdrola increasing its customer contract base to 70 million.

The EU regulation regarding the Integrity and Transparency of the wholesale energy markets (REMIT) requires all generators to publically declare as quickly as possible and in as much detail as possible the current status of power facilities. Iberdrola encourages disclosing this information as accurately as possible in this web page.