Our main businesses

 Value chain [PDF]

To maximise the competitiveness of its business model, Iberdrola has organised the management of its activities around three global businesses::

The company expects a strong investment cycle between 2016 and 2020. Due to its business profile, Iberdrola will continue focusing on regulated areas that provide stable and predictable incomes in the long term. Thus, 88% of the total 24 billion euro investment will be allocated to regulated activities or long-term contracts. Of this amount, 46% will go to Grids, 33% to Renewable Energies and 9% to Regulated Generation. The remaining 12% will be invested in the Generation and Retail businesses. With the culmination of these investments, Iberdrola expects the percentage of its EBITDA from regulated businesses or long-term contracts to rise from the current value of 75% to 81% by 2020.

Lines of business: networks: 11,000€M Net investment 2016-2020: 48% United States, 32% United Kingdom, 15% Spain, 4% Brazil

  • Objectives

    • Satisfy supply under strict safety conditions, in compliance with environmental requirements.
    • Increase quality in energy supply by investing in the expansion and renewal of networks, improvement of our processes, and use of the latest advances in technology.
    • Maximise efficiency in system operations.
    • Zero accidents.


  • Outlook 2016-2020

    • Increased regulatory visibility in all countries, with investments of €M 11,000, allowing for a 22% increase in RAV(*).
    • Focus on digitalisation and grid automation (smart grids), service quality, and operational improvements.
    • 2% increase in efficiency over the period (NOE/GM and NOE/RAV)(*).
    • Opportunities for selective growth in transmission.


    2016-2020 cash flow generation to finance investments (€ millions)

    Business lines: networks: 16,900 operating cash flow, 11,000 net investmente and 5,900 free cash flow

    (*) RAV: Regulatory Asset Value; NOE: Net Operating Expenditure; GM: Gross Margin.

Lines of Business: Wholesale and Retail: 5,100 €M Net Investmet 2016-2020: 38% Mexico, 36% Spain, 26% United Kingdom.

  • Objectives

    • Operating excellence, safety, and respect for the environment.
    • Risk identification and minimisation.
    • Safety and continuous improvement in operating efficiency.
    • Competitive supply and excellence in service to customers.
    • Analysis of growth opportunities.
  • Outlook 2016-2020

    • Investments of €M 5,100, mainly to increase installed capacity and to deploy smart meters in the United Kingdom.
    • Start-up of 3,450 MW in Mexico, of which 1,600 MW are already under construction.
    • In Retail, wager on digitisation, personalisation of products for the customer, and service excellence.
    • Continuing improvement of operational processes and practices to increase efficiency.


    2016-2020 cash flow generation to finance investments (€ millions)

    Lines of business: wholesale and retail: 9,600 operating cash flow, 5,100 net investmente and 4,500 free cash flow.

Lines of Business: Renewables: 7,700 €M, Net Investment 2016-2020: 57% United Kingdom, 36% United States, 5%International, 2% Spain.

  • Objectives

    • Safety in operations.
    • Efficiency in operations to maximise the profitability of the assets.
    • Efficiency in construction costs, with a particular emphasis on offshore projects.
    • Profitable growth in onshore and offshore wind investments in the countries that are strategic for the group.


  • Outlook 2016-2020

    • Increase in competition for the entry of new capacity, mainly via auction.
    • Investments of €M 7,700, mainly to increase installed capacity in the United States, the United Kingdom, and Brazil.
    • Start-up of 3,450 MW, of which 2,440 MW are already under construction.
    • Start-up of two offshore wind farms: Wikinger (350 MW) and East Anglia I (714 MW).
    • Continuing operational improvement, with cost savings, optimisation of useful life of the assets, and improvement in the capacity curve.


    2016-2020 cash flow generation to finance investments (€ millions)

    Business lines: renewables: 7,800 operating cash flow, 7,700 net investment and 100 free cash flow

  • Wikinger Offshore Wind Farm

    Wikinger Offshore wind farm

    Symbol of Iberdrola's commitment to innovation, sustainability and internationalisation

    Wikinger offshore wind farm: Main project data.

    The Wikinger offshore wind farm is an emblematic project for Iberdrola. This project has materialised in a fusion of the company's resolute dedication to renewable energies with technological innovation, internationalisation and a contribution to the economic development with job creation in regions where the group is present. Moreover, through our international expansion, Iberdrola opens the door for its suppliers and service providers to new markets and business.

    The construction of this offshore wind farm in the Baltic Sea, where the water is between 37 and 43 metres deep, requires an investment of €1,400 million. The site covers a surface area of about 34 square kilometres (km2), where the company plans to install 70 wind turbines, each with a unit capacity of 5 megawatts (MW).

    Comparison of the dimensions of a wind turbine with other landmark buildings.

    The Andalucía offshore substation, now installed at its final location, will be the power core of the renewable energy facility. This electricity distribution infrastructure, which weighs some 8,500 tonnes, will handle all electricity generated by the wind turbines operating in the open sea.

    By the time it is connected to the grid in late 2017, Wikinger's 350 MW capacity will produce enough energy to meet the electricity needs of over 350,000 German households, avoiding the emission of some 600,000 tonnes of CO2 into the atmosphere each year.

    This was how the offshore substation travelled from Cadiz to Germany (GPS tracking video) Location on the Baltic Sea: project map
    Infograph: scale of the offshore wind farm [PDF], Wikinger: data sheet [PDF] Timeline: highlights of the project
    Videos of the Wikinger Offshore wind farm project More information: ScottishPower Renewables


    Iberdrola's Andalusia substation now installed at german Wikinger offshore wind farm

    Navantia, Iberdrola and 50Hertz host the delivery ceremony for the substation "Andalucía" at Puerto Real

    Navantia and Iberdrola hold event to mark delivery of first jackets for Wikinger offshore windfarm