RENEWABLE ENERGY PIPELINE

We are ready for the future with the biggest renewables pipeline in the industry

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Iberdrola's investment plan for the period 2020-2025, now extended to 2030, reaffirms its commitment to renewable energies. Of the projected €75 billion for 2025, 90 % will be organic investments (€68 billion) and, of these, 51 % (some €34.68 billion) will be earmarked for renewables, which will amount to 60 gigawatts (GW) of installed capacity by 2025, doubling the current capacity. With the extension to €150 billion euros by 2030, the company plans to reach an installed renewable capacity of 95 GW, and is uniquely positioned with one of the largest renewable pipelines in the industry at over 74 GW.

In 2020, Iberdrola continued to reaffirm the foundations of its future growth, increasing its pipeline by 25 GW to 74.4 GW, one of the largest renewable pipelines in the industry distributed across its traditional areas — reinforced with new markets such as Australia, Japan and Sweden — and main technologies: 32 GW photovoltaic; 22 GW offshore wind; 16.2 GW onshore; 3.3 GW hydroelectric; and 0.9 GW in storage batteries. At the end of 2020, the company has 17.4 GW of green power under construction and development, of which 8.7 GW are new solar installations, 4.5 GW onshore wind, 2.6 GW offshore wind, 1.2 GW hydro and 400 MW of batteries — and by 2025, it expects to have up to 11 GW under construction.

WE WILL TRIPLE OUR RENEWABLE CAPACITY OVER THE NEXT 10 YEARS

Iberdrola moves forward with its investment plan for 2025 of €75 billion, which has now been extended to €150 bn by 2030, and will allow it to reach an installed renewable capacity of approximately 95 GW by the end of that period — it will double the current figure to 60 GW.

Of the €75 billion of investment planned for 2025, 90 % will be organic (€68 billion) and will go mainly to renewable energies, specifically, 51 %, some €34.68 billion. Investments are focused on countries with ambitious climate and energy targets, such as the United States (where 33 % of investment in renewables will go by 2025), Spain (21 %), the United Kingdom (12 %) and Brazil (5 %). Particularly noteworthy is the geographical area operated by the subsidiary Iberdrola Energía Internacional (IEI), formed by Australia, Portugal, France, Italy, Germany, Greece and Ireland, among other countries. This company will receive 29 % of the investment by 2025 and will increase its installed renewable capacity to 8 GW by the end of that period.

 Offshore wind energy

Iberdrola plans to invest €2.1 billion in offshore wind power from 2020 to 2022 and €8.8 billion between 2023 and 2025. Offshore wind, a business in which the company is a pioneer, as it was 20 years ago in onshore wind, will be one of the main growth vectors. In 2020, this area already contributed €585 m to the group's EBITDA.

Within the company's renewable pipeline, which now totals 74.4 GW worldwide, offshore wind is the second most important technology, with 22 GW in the pipeline.

At the end of 2020, Iberdrola already had 1,300 MW installed offshore and is currently building close to 2,600 MW:

Offshore wind farms in operation:

  • East Anglia ONE (North Sea): with 714 MW of power, is the largest wind farm in Iberdrola's history to date. It began operation in August 2020 and has 102 turbines producing clean energy for 630,000 British homes.
  • Wikinger (Baltic Sea): this 350 MW facility marked Iberdrola's entry into Germany, where it is progressing with the construction of two other offshore wind farms: Baltic Eagle (476 MW) and Wikinger Süd (10 MW). These three wind farms, all located next to the island of Rügen, will give rise to the largest offshore wind complex in the Baltic Sea, with a total installed capacity of 836 MW and a combined investment of €2.5 billion.
  • West of Duddon Sands (Irish Sea): this is the first offshore facility that Iberdrola commissioned, in October 2014. It produces energy for 280,000 British homes.

Offshore wind farms currently under construction:

  • Saint Brieuc (Brittany): with an investment of €2.4 billion, it is estimated that, when it enters into operation in 2023, it will produce 1,820 gigawatt hours (GWh) per year, which will cover the energy demand of 835,000 people.
  • Baltic Eagle (Baltic Sea): this is the second major offshore wind initiative promoted by the Iberdrola group in Germany, where it is also developing Wikinger Süd (10 MW), following the startup of Wikinger. These three renewable facilities, located next to the island of Rügen, will give rise to the largest offshore wind complex in the Baltic Sea, with a total installed capacity of 836 MW and a joint investment of €2.5 billion.
  • Vineyard Wind (Massachusetts): this will be Iberdrola's first offshore wind farm in the United States. Vineyard Wind 1 will have a capacity of 800 MW, with which it will be able to meet the energy needs of more than 400,000 homes.
  • Park City Wind (Connecticut): Off the coast of Connecticut, it is scheduled to enter into operation in 2025. Like Vineyard Wind it will have a capacity of 800 MW.

In addition to these wind farms already in operation or under construction, Iberdrola has an additional pipeline of 19,000 MW, of which 9,000 MW are ready for construction to begin: Kitty Hawk (North Carolina, 2,500 MW); Zone 522 (Massachusetts, 3,400 MW); East Anglia Hub (North Sea, 3,100 MW); and Windanker (Baltic Sea, 300 MW). In addition to these 9,000 MW, the company has 10,000 MW under development in Sweden, Japan, Poland and Ireland.

Iberdrola is thus in an optimal position to participate in the auctions and tenders planned in the coming months on its new growth platforms: The United States, which will auction 3,200 MW; the United Kingdom (up to 12,000 MW), Japan (3,000 MW), Germany (900 MW), France (up to 2,250 MW), and Denmark (up to 2,200 MW).

 Photovoltaic energy

The projected investment in solar photovoltaic energy will reach €4.2 billion in the run up to 2022 and €5.5 bn by 2025. This will drive growth of 6 GW and 8 GW respectively, to produce a total installed capacity of 15 GW by 2025. At year-end 2020, Iberdrola has 1.9 GW in operation. The pipeline for this technology amounts to 32 GW until 2025, of which 2.7 GW are under construction and 6 GW have been secured.

The main photovoltaic projects are: Francisco Pizarro, Ceclavín, Arenales, Puertollano and Campo Arañuelo (in Spain); Montague Solar, Lundhill, Lundhill, Mohawk and Bakeoven (USA); Cuyoaco (Mexico); Carland Cross Hybrid, Coldham Hybrid and Coal Clough Hybrid (UK); Algarve Setubal (Portugal); and Montalto di Castro (Italy).

 Onshore wind energy

Iberdrola plans to invest €6.1 billion between 2020 and 2022 and €5.9 billion from 2023 to 2025 in onshore wind energy. These investments will make it possible to reach 26 GW by 2025. The company has a 16.2 GW pipeline for this technology until 2025, of which 4.5 GW were under construction or secured at the end of 2020.

The main onshore wind projects are: Puylobo, ERPASA and Martín de la Jara (in Spain); Pier and Santiago (Mexico); Beinn and Tuirc 3 and Halsary (UK); Chafariz and Oitis (Brazil); La Joya I-II, Midland and Golden Hills (USA); Mikronoros and Askio II and III (Greece); and Rokani (Romania).

 Hydroelectric power and energy storage

By 2025, Iberdrola plans to reach 14 GW in hydroelectric power, both traditional and energy storage by means of pump technology.

The group will invest €1 billion up to 2022 and another €700 million by 2025 to increase its energy storage capacity, which will grow 1.7 GW by 2025. The pipeline until 2025 amounts to 3.3 GW for hydroelectric technology.

LEADING THE DEVELOPMENT OF GREEN HYDROGEN

Iberdrola has identified green hydrogen as a strategic vector for the industrial sector. Therefore, in line with European recovery plans, the company plans to install 600 MW operational by 2025, which will be more than 800 MW by 2027 and will produce 15,000 tonnes of renewable hydrogen, compared to the 1,000 planned for 2022 — which it expects to increase to 85,000 tonnes by 2030. The company is already working alongside Fertiberia to develop Europe's largest green hydrogen plant for industrial use, which will be operational by 2021 and involve an investment of €150 million.

The company has also submitted 53 projects to the EU's Next Generation EU programme, which would trigger investments of €2.5 billion to reach an annual production of 60,000 tonnes/year. At the same time, it will lead the development of a value chain to support the deployment of new electrolyser manufacturers and will promote partnerships with other industrial groups. In this regard, the company has signed an agreement with the Norwegian company Nel, the largest manufacturer of electrolysers in the world, to develop large-scale electrolysers and promote the creation of a chain of suppliers of this technology in Spain. For this project, Iberdrola has joined forces with Basque company Ingeteam to create Iberlyzer, a company that will become Spain's first mass manufacturer of electrolysers.

Iberdrola has also announced the creation of a new green hydrogen business unit, with the aim of positioning itself as a world leader in this technology.

Green hydrogen may be seen as the solution for efficient decarbonisation in the medium term. 85 % of the current EU energy demand can be electrified using available clean technologies (according to Eurostat data). Meanwhile, the remaining 16 % could be decarbonised by replacing grey hydrogen — produced from polluting sources — with green hydrogen in the industrial and chemical sectors, as well as by using green hydrogen as a fuel for sectors that cannot use electricity, such as shipping, aviation and haulage. Replacing all the world's grey hydrogen would mean producing 3,000 TWh/year of extra renewable energy.

CARBON NEUTRAL

This strategy of investment in clean energy and our commitment to supporting measures to combat climate change worldwide have led us to continue to reduce our own emissions, to a point where at the end of 2020 they were 98g per kWh, a figure half or almost three times lower than those of our main competitors.

We have also committed to be, by 2030, a carbon-neutral company in Europe and to reduce our global CO2 emissions to 50g/kWh. It should be noted that Iberdrola now generates 100 % of its energy with zero emissions in countries such as the United Kingdom, Germany and Portugal. The group, a world benchmark in the fight against climate change and in the energy transition process, has set itself the target of reaching carbon neutrality globally by 2050.