Lines of business

LINES OF BUSINESS

A business model based on renewable energies, smart grids and innovative customer solutions

Iberdrola group is making progress on its historic investment plan of 75 billion euros up to 2025, which it has extended to 150 billion euros by 2030. 90 % of its investment by 2025 (68 billion) will be organic and will be divided between its three business lines: 51 % will go to the Renewables area, 40 % to Networks and 9 % to Wholesale and Retail. The company plans to triple its renewable capacity to 95 GW, double its network assets to 60 billion euros and increase its customer base to 70 million contracts over the decade. Some 90 % of the group's long-term plan is aligned with the European Union green taxonomy.

A SUCCESSFUL BUSINESS MODEL

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.

 

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

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 60 GW of installed capacity by the end of the period. 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.

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).

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We tripled the installed renewable capacity between 2020 and 2030.

 

To materialise its investment plan, Iberdrola has one of the largest renewable pipelines in the industry: a total of 81.5 GW distributed across its traditional areas, in addition to new growth platforms in countries such as Poland, Sweden, Ireland, Japan, Korea, Taiwan and Australia.


 


 

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The Networks area of the Iberdrola group — i-DE External link, opens in new window., ScottishPower Energy Networks External link, opens in new window., the Distribution business of Neoenergia External link, opens in new window. and Avangrid Networks External link, opens in new window. — 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. Iberdrola currently operates one of the world's largest power distribution systems, comprising more than 1.1 million km of distribution lines and more than 4,400 substations, which carry electricity to more than 34 million people around the planet.

40 % of the group's organic investment for the period 2020-2025 (more than €27 billion) will go to the Networks area, which will raise the regulated asset base to €47 billion by the end of the period, 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.

In addition, by 2030, the regulated asset base will double to 60 billion euros.

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The Wholesale and Retail area of the group — Iberdrola Clientes España External link, opens in new window., Iberdrola Energía Internacional External link, opens in new window., ScottishPower Retail Holdings External link, opens in new window., Neoenergia Comercializaçao External link, opens in new window. and Iberdrola Generación México External link, opens in new window. — 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.

9 % of the organic investment in the 2020-2025 (€6 billion) plan will go to this area. By the end of the period, the company will have contracts with 60 million customers worldwide. The trend will continue rising and, by 2030, the electrification of energy usage will result in Iberdrola increasing its customer contract base to 70 million, 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).

Customer services will increase to 40 million by 2025 — up from 25 million in 2019 — and Smart solutions will double to 22.6 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.