Our sector
Iberdrola in the global energy sector
We are a leading energy company with a century-long history, operating in the sectors of grids, renewables and electricity trading. Discover our vision for the energy market.
Iberdrola Group operates in the energy sector, focusing on grids, renewables and electricity trading, as well as related services across Europe (Spain, UK, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The group is also exploring growth opportunities in markets such as Japan, Sweden and Poland.
We are the world's second-largest utility company by market capitalisation and the largest in Europe, with a valuation exceeding €135 billion (*). As a result, we hold a 32.2% share of the deregulated market in the electricity generation and customer business (**).
(*) In February 2026.
(**) At 30 June 2025.
Operational context
The response to global challenges such as climate change, geopolitical volatility and the need for greater efficiency is driving increasing electrification of the economy to achieve a more efficient, sustainable and autonomous energy model. Electricity is increasingly consolidating its role as a key vector in decarbonising sectors such as mobility, buildings and industry. In fact, according to the World Energy Outlook 2025 report from the International Energy Agency (IEA), electricity could account for 40% of total energy consumption by 2035 and, in more ambitious scenarios such as Net Zero Emissions, this share could rise to 50% by 2050.
This transformation requires rethinking and strengthening the infrastructure that underpins the energy system. Electrical networks, responsible for transporting energy from renewable sources to points of consumption, will be essential to meet a more distributed, dynamic and digitalised demand. Storage will also be crucial to ensure resilience and energy security. As for generation, technologies such as solar and wind, whose costs have fallen and which are barely exposed to fossil fuel price volatility, have become a highly attractive option.
A strong initial investment in electricity production from renewable sources, which will deliver significant long-term savings, will be key to meeting demand. The growth of data centres and artificial intelligence, which are emerging as new demand giants, will entail investment that exceeds that allocated to the global oil supply. The infrastructure needs associated with these new technologies are already placing pressure on networks and represent an opportunity to ensure their growth is compatible with sustainability principles, thanks to the use of renewable energy as their primary power source.
To move forward with confidence, predictable regulatory frameworks and cooperation among all stakeholders in the sector – producers, distributors, regulators and users – will be essential to mobilise the necessary investment and build an electrical network capable of supporting this transformation with security, efficiency and guaranteed supply.
Iberdrola in the global energy sector
The energy sector is a competitive and continuously evolving environment, marked by the demands of sustainability and the disruptive potential of new technologies. The following list identifies our competitors which, together with Iberdrola Group, occupy leading positions in the global market.
"Any expansion in Iberdrola’s business activity must translate, in addition to quality service for our customers, into the creation of well-being, wealth and employment for millions of people in all locations where we do business."
Ignacio S. Galán
Iberdrola’s Executive Chairman
Iberdrola in the energy market
One of the three fundamental pillars of our activity – alongside Renewables and Grids – centres on supplying energy to our more than 36 million customers worldwide. In addition to providing energy to end users, we offer a number of energy products and services, with intelligent and innovative solutions for both residential and industrial clients.
Where are our customers in the world?
Our competitors in Spain's energy market
Iberdrola Group has been present in Spain for more than 120 years and is one of the country's leading energy groups, excelling in renewable energies thanks to its diverse business lines and strategic vision for the future. Currently, it is the leading energy supplier in the Spanish market based on the number of contracts.
Iberdrola, leader in smart grids
At Iberdrola we are a global reference in smart grids and have been pioneers in advocating the need to invest in modern and flexible networks for the transition to a decarbonised, renewable system.
We currently count on €49 billion in network assets(*), which we expect to reach €70 billion by 2028 thanks to an investment of €37 billion in this business – two-thirds of our total investment for the period – prioritising countries with an A rating for more than 80% of the total.
Iberdrola has 1,276,520 kilometres of transmission and distribution lines – overhead, underground and underwater – in Brazil, Spain, the United States and the United Kingdom. These lines are complemented by 4,635 high- to medium-voltage transformer substations and 1,687,750 medium- to low-voltage distribution transformers,* weaving a solid network infrastructure to bring renewable energy from the production centres to the end user and to integrate distributed generation safely and efficiently.
* As of 31 December 2024.
Iberdrola in the wind energy sector
At Iberdrola, we recognised the global energy transition early on and made a strong commitment to wind at the start of the 21st century as a source of clean, renewable energy and a business opportunity. Now, more than 20 years later, Iberdrola Group stands as one of the world's leading wind energy producers, with 23,122 MW installed(*). We continue to lead in this sector, first with onshore wind and now with offshore wind as a critical driver of growth.
As such, of the €21 billion investment in renewables earmarked in our Strategic Plan up to 2028, 38% is dedicated to offshore wind and 24% to onshore wind.
(*) As at 31 December 2024.
Global energy mega trends
The electrification of the energy market is an unstoppable global trend and a necessary step towards transitioning to a safer and more sustainable energy system. In a context shaped by the current global energy outlook, Iberdrola is in a privileged position to lead and accelerate the electrification required for a sustainable future. Our solid track record, backed by more than 20 years of steady growth in results and dividends, allows us to drive long-term energy development.
This was announced by our Executive Chairman Ignacio Galán at Capital Markets Day 2025, where he also highlighted €58 billion of investment and the hiring of 15,000 people to accelerate this electrification.
Like cross-cutting factors in electrification, other market trends and expectations are beginning to shape the future energy market:
Electrification in all sectors, including difficult-to-decarbonise sectors such as transport and industrial heat.
Investment in renewables, replacing fossil fuels, and increasing demand.
The need for smart grid infrastructures that efficiently connect clean energy to the system.
New demand enablers: residential and industrial heating and cooling, mobility, as well as digitalisation, artificial intelligence and data centres.
Essential role of energy storage and dispatchable renewables: supply and demand matching, price modulation and lower emissions.
We are driving the electrification of the economy
More about our sector
Benefits of electrification
To reduce greenhouse gas emissions, we need to replace the electricity used to perform tasks or power systems from fossil fuels with electricity from renewable energy sources.
What is electrification?
Benefits of electrification
To reduce greenhouse gas emissions, we need to replace the electricity used to perform tasks or power systems from fossil fuels with electricity from renewable energy sources.
What is electrification?Articles from our guest authors
