News
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16/02/2021Iberdrola and Porcelanosa are working together on electrification and green hydrogen projects to decarbonise ceramic production Iberdrola and Porcelanosa have decided to join forces and work together on electrification projects for this industry, which will drive the decarbonisation of ceramic production in line with EU objectives and the fight against climate change. The companies have agreed to conduct joint research into energy solutions for the ceramic firm’s plants, such as maximum efficiency, high-temperature heat pumps in driers, as well as the combined use of renewable energy and a green hydrogen supply to reach the temperatures required in atomisers and hybrid ovens. This will help to drive the electrification of the ceramic company’s production process by improving energy efficiency and making use of residual heat. Iberdrola will support Porcelanosa’s decarbonisation plan to the extent that energy solutions and consumption at the company's plants will be improved by using sources of energy that do not produce CO2 emissions. The analysis will also include the installation of a self-consumption photovoltaic plant on the premises. The energy company will also help to develop projects and the necessary engineering to support the execution of these innovative decarbonisation projects, which may also be eligible in calls for applications for European, national and regional public grants. Green innovation to transform the industrial sector Iberdrola is certain that the energy transition can be a driving force in the transformation of the industrial sector and for a green recovery in the economy and the job market. The company has thus launched an unprecedented investment plan worth €75 bn for the 2020-2025 period, with the aim of doubling its renewable capacity and taking advantage of the opportunities presented by the energy revolution faced by the world's main economies. Investments in Spain for the period amount to around €14.3 bn, half of which (more than €7 bn), will be spent developing new renewable energy projects, while more than 4.5 bn will go towards strengthening and digitalising its electricity grids. After 20 years promoting the energy transition in Spain, Iberdrola leads in renewable energy in the country, with an installed renewable capacity exceeding 16,700 MW as of September 2020 - an amount that totals more than 35,000 MW worldwide, making its generation facilities among the cleanest in the energy sector. Iberdrola manages more than 2,100 MW of installed renewable power in the Community of Valencia, where Europe’s largest pump station, its Cortes-La Muela complex, is its maximum exponent. It is also making progress with the formalities required for its first photovoltaic projects in the region, to a total of 450 megawatts (MW) representing an investment of more than 230 million euros. With CO2/kWh emissions already two thirds lower than the European average, the investment strategy in clean energy and grids will make Iberdrola a "carbon neutral" company in Europe by 2030. READ MORE
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15/02/2021Ignacio Galán backs Europe to lead decarbonisation and economic recovery "Europe is ready to lead decarbonisation and, with it, economic recovery. We have strong support from society and the necessary political leadership thanks to the Green Deal". This is how Iberdrola Chairman, Ignacio Galán, expressed his confidence in the leading role that the Continent must play in the energy transition. This leadership will be possible if urgent action is taken to benefit from the technology and resources already available in Europe. In addition, the Next Generation EU programme, "will be crucial to accelerate the transition and encourage private investment", according to Ignacio Galán. The address took place at the debate Can the EU Green Deal empower Business and consumer change?, held by the European Round Table for Industry, an organisation representing Europe’s largest companies in the industrial and technological sectors, which employ 5 million people directly and invest €60 billion annually in research and development. At this meeting, which was attended by the Vice-President of the European Commission Frans Timmermans, the Chairman of Iberdrola outlined the current situation in the energy sector: "Renewables are already the most competitive source and are making energy cheaper for industries and households while the electricity system is and will continue to be reliable." To this end, he added that it will be necessary to continue implementing smart grids and efficient storage to allow for the correct integration of renewables into the system, as well as enabling the consumer to become an active part of the process. Galán pointed out that companies such as Iberdrola are prepared to invest, but he also stated that governments must do their part to avoid missing out on opportunities: "It is necessary to establish attractive frameworks, faster permitting processes, reform the taxation system to make renewables even more competitive and promote interconnections within the European Union". The Chairman of Iberdrola stressed that the joint contribution of the public and private sectors will allow for a faster revival of the economy, re-energizing sectors and generating quality employment, while at the same time increasing the competitiveness of European industry. “A timely transition can be achieved through policies that focus on high-impact growth areas promoting climate neutrality and enabling faster recovery, such as energy efficiency, building renovation, renewables, green hydrogen, energy storage, and sustainable mobility, as well as the infrastructure, skills and businesses that support them,” he noted. Among the opportunities for reindustrialisation arising from the energy transition, Ignacio Galán highlighted the case of green hydrogen: "We need more powerful electrolysers and if we want them to be manufactured in Europe, creating jobs in our territories, we have to move fast". "The time is now", he concluded. €75 billion investment by 2025 and participation in the Next Generation EU Iberdrola is implementing a business plan that foresees investments of €75,000 million until 2025 , with the aim of doubling its renewable capacity and taking advantage of the opportunities of the energy revolution facing the world's leading economies. In addition, the company has presented a total of 150 projects to the Next Generation EU programme with an investment of €21,000 million , which will enable the industrial transformation of Spain, oriented towards sustainability, clean and affordable energy and employment. The projects would involve hundreds of small and medium-sized enterprises and would have an impact on the competitiveness of the Spanish industrial fabric, on the green recovery in the short term and, medium to long term, on the transformation of the country by orienting it towards sectors with promising perspectives. The projects would generate 45,000 jobs/year, generate economic growth of more than 1.5% of GDP, improve competitiveness and the balance of payments - between €500 million and €1 billion per year - and contribute to the demographic challenge, as they include more than €7,000 million investment in rural areas. READ MORE
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12/02/2021PNM Resources shareholders approve the merger with AVANGRID by a large majority The shareholders of PNM Resources have today approved the proposal to merge with AVANGRID by a large majority at the Shareholders’ Meeting . Approximately 93% of the votes cast were in favour of the proposed merger agreement, representing approximately 70% of the company's shares. PNM, which would thus become part of Iberdrola's subsidiary, is worth approximately $8.3 billion. This approval is a milestone in the integration process between the New Mexico and Texas utility and the Iberdrola group company. Iberdrola group chairman Ignacio Galán remarked that “the support of PNM’s shareholders has been crucial to making this strategic transaction a reality. It will create a leader in the networks business, one of the pillars of the Iberdrola group’s international expansion for more than 20 years”. The operation will create one of the largest companies in the North American market with 10 regulated electricity companies in 6 states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third-largest renewables operator in the United States, with a total presence in 24 states. The combination of Avangrid and PNM — with some 4.1 million supply points, a regulatory asset base (RAB) of $14.4bn, over 168,000 kilometres of distribution and transmission lines, and approximately 10.9 GW of installed capacity (2019) — will accelerate the Iberdrola group's growth in the US. The merged company will have assets in excess of $40 billion, an EBITDA of approximately $2.5 billion and a net profit of $850 million [with proforma data 2019]. New Mexico and Texas are, moreover, states with which Iberdrola is familiar. The group currently has 1,900 renewable MW and 1,400 MW in its portfolio in the first of these territories and has also started retail operations in Texas. For more than 15 years, the Iberdrola Foundation has funded the “King Felipe VI Chair in Information Technology and its Applications” at the University of New Mexico. The transaction — which has already been approved by the Committee on Foreign Investment in the United States (CFIUS) and Hart Scott Rodino Clearance (HSR) — is expected to be granted all necessary approvals at state and federal levels during 2021. READ MORE
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11/02/2021Ignacio Galán underlines the need to forge a business and industrial ecosystem to harness the country's potential "These are unprecedented times in terms of severity and global impact. However, the ingredients for emerging from this crisis are still the same: more investment into production sectors and industries with a future and driving efficiency and competitiveness to leave the country better for the generations to come," said Iberdrola chairman Ignacio Galán at the beginning of this speech at the EUROForo Next Generation EU conference, underlining the need to work together to drive future initiatives and create prosperity. Mr Galán talked of the need to forge a business and industrial ecosystem to harness the country's potential. The company has already contributed to the growth and internationalisation of 22,000 companies. It is developing a 75-billion-euro investment plan with a 2025 horizon, not to mention further projects linked to European Funds. It looks upon the Next Generation EU as an opportunity to ramp up its activities and help to foster new types of public/private cooperation. "This is a historic opportunity for Spain, and we can't miss this train," he said. "We have to act now, decisively and in coordination, to transform this opportunity into a reality," he said. A total of 150 projects to create jobs, drive economic growth and contribute to the demographic challenge Iberdrola has 150 initiatives in this plan, which will mobilise more than 21 billion euros in investment into projects related to the roll-out of innovative renewables, smart networks, energy storage, smart electricity, energy storage, sustainable mobility, heat electrification, green hydrogen and component recycling using clean technologies. "These projects will create 45,000 stable, highly qualified jobs per year and will trigger economic growth of more than 1.5% of GDP," he pointed out. "They will also improve competitiveness and the balance of payments (between 500 million and one billion euros/year), lower emissions, improve urban environments and contribute to the demographic challenge, because they already include more than 7 billion euros for projects in rural areas." The initiatives involve hundreds of companies –mostly SMEs– based in all of the autonomous regions, as well as Spanish technology centres throughout the value chain and public bodies. Assigning the country's projects to enterprises with a real commitment to Spain with management capacity and able to drive the local industrial sector The magnitude of the European Union and Spanish government's reconstruction plans make them an unprecedented opportunity to drive rapid recovery and to transform the economy into one that is more sustainable, resilient, inclusive and competitive. To achieve this, Galán says that "funds must be allocated to rebuilding or creating new sectors with a future - green hydrogen, electric mobility, offshore wind farms, for example, aligned with European Union directives based on the digital economy, to improve competitiveness, the green economy that promotes sustainability, improving the environment and health." In this regard, he stressed that the electricity sector has specific projects for this transformation that benefit people (jobs, clean air in cities, lower emissions and lower energy costs); and for the nation, in terms of improving competitiveness, GDP, the balance of payments and medium-term returns on aid. During his speech, Iberdrola's chairman also said that "in order to make good use of the funds, the country needs to entrust these projects to companies that are genuinely committed to Spain, with a proven track record and the capacity to execute and manage and, above all, to drive the Spanish industrial sector." This also requires "reducing the amount of red tape, reviewing tax on energy and improving coordination between the administration and the public and private sectors, as well as embarking upon an educational reform," he concluded. READ MORE
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09/02/2021Iberdrola places its wind farms in Asturias into operation, with which it triples its renewable capacity in the region Iberdrola has started to commission three of the four wind farms - Cordel-Vidural, Capiechamartín and Panondres - that it had planned for Asturias. The company is working on the construction of the fourth, Verdigueiro, following granting of the administrative authorisation, which will bring the total installed capacity to 130 MW of wind power, thereby tripling its renewable capacity in Asturias. The wind farms consist of SG114 wind turbines, with a unit capacity of 2.62 MW: Cordel-Vidural (37 MW) is located between the municipalities of Navia, Valdés and Villayón; Capiechamartín (34 MW) is situated between Tineo and Valdés; and Panondres (21 MW) is between Villayón and Valdés. Verdigueiro (36 MW) is being built between Tineo and Villayón. Almost all the field work and civil works have been carried out by Asturias companies such as Hormavasa and Horvalsa, Canteras Rencanos, Deymet, Excade, Posada, Méndez y Mota, Gruas Roxu and Taxus; the project has been developed by ERPASA and the wind turbine tower were manufactured at the Windar facilities in Avilés. The construction of all these projects - with an investment of €100 M - contributes to boosting the industrial fabric and local employment, involving as many as 1,000 workers. Once in operation, the wind farms will generate energy to supply more than 100,000 homes and avoid the emission of 65,500 t CO2/year into the atmosphere. A historic feat of engineering These farms entail one of the most complex wind farm infrastructure projects in Spain . The materials (including towers, nacelles and blades) have been transported along narrow, single-track roads with numerous slopes and bends of up to almost 180º. This activity has required exhaustive planning to avoid affecting the planned works and to ensure the arrival of up to 200 daily shipments with different materials. At an altitude of 800 metres, and in an area with constant weather shifts that have made work difficult, large wind turbines have been erected: 56-metre blades, nacelles weighing 126 tonnes and towers between 80 and 93 metres high. Green investments to promote economic recovery and employment Iberdrola has defined four action areas related to energy transition as its contribution to the socio-economic development of Asturias: more investment in renewables, support for job creation by creating opportunities and contracts for local industry, training young people in the skills required by the employment sectors of the future and developing new innovation projects, such as the Citizens' Innovation Platform. Iberdrola is certain that the energy transition can be a driving force in the transformation of the industrial sector and for a green recovery in the economy and the job market. The company has thus launched an unprecedented investment plan worth €75 bn for the 2020-2025 period, with the aim of doubling its renewable capacity and taking advantage of the opportunities presented by the energy revolution faced by the world's main economies. Investments in Spain for the period amount to around €14.3 bn, half of which (more than €7 bn), will be spent developing renewable energy projects, while more than 4.5 bn will go towards strengthening and digitalising its electricity grids. After 20 years promoting the energy transition in Spain, Iberdrola leads in renewable energy in the country, with an installed renewable capacity exceeding 16,700 MW as of September 2020 - an amount that totals more than 35,000 MW worldwide, making its generation facilities among the cleanest in the energy sector. With CO2/kWh emissions already two thirds lower than the European average, the investment strategy in clean energy and grids will make Iberdrola a "carbon neutral" company in Europe by 2030. READ MORE
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05/02/2021Iberdrola strengthens its commitment to offshore wind: acquires 3 GW project pipeline in Ireland Iberdrola has added to its offshore wind ambitions, with entry into the market in Ireland, as the company seeks to expand its global renewable energy footprint. The agreement will see Iberdrola acquire a majority stake in DP Energy’s offshore wind pipeline in Ireland, which totals 3 gigawatts (GW). The projects are located in three clusters on the east, west and south coasts of the country, of which some will be eligible for the forthcoming offshore auctions in 2025-2030. The agreement also includes Iberdrola acquiring a majority stake in the company created by DP Energy, that will be responsible for developing this wind pipeline in Ireland. The projects included in the agreement are the Inis Ealga wind farm on the south coast of Co Cork and the Clarus project on the west coast of Co Clare, both to be developed with floating offshore wind technology. Additionally, the Shelmalere project will be located off the east coast and will be developed using fixed foundations. Once operational, the projects will generate enough green energy to power the equivalent of 2.6 million households in Ireland. Positioning in markets with growth potential The transaction allows Iberdrola to further enhance its geographic diversification, as the company continues with its strategy to grow in markets with a favourable investment environment. The deal also allows Iberdrola to position itself in the initial stages of Ireland’s offshore wind market, which has considerable growth potential in the years ahead. Ireland has ambitious climate change mitigation policies in place to transform its energy mix, with Government planning to have 5 GW of offshore wind capacity operational by 2030. Estimates suggest there could be up to 40 GW of potential for offshore development. Iberdrola's partner, DP Energy, is an international developer headquartered in Cork with extensive experience in the renewables industry and strong knowledge of the Irish market. DP Energy is also working with Iberdrola currently in Australia, to develop the Port Augusta Renewable Energy Park, a 317 MW hybrid wind and solar project in South Australia. More than 30 GW offshore wind project pipeline This agreement in Ireland fits with Iberdrola's strategy to consolidate its position as the world's largest renewable energy company and builds on previous transactions and investments in offshore wind carried out by the company in recent years. Iberdrola`s offshore wind portfolio now includes projects in the German Baltic Sea (Wikinger and Baltic Eagle), in the North Sea (East Anglia ONE and East Anglia Hub), the Irish Sea (West of Duddon Sands), the coast of Massachusetts (Vineyard Wind) and France (Saint Brieuc). More recently, Iberdrola has taken access to early-stage capacity of 9 GW in Sweden, more than 3 GW in Japan and up to 7.3 GW in Poland. In Denmark, Iberdrola is also working with Total on an auction process for the Thor offshore windfarm, which could have a capacity of up to 1GW. This latest transaction brings the company's pipeline of offshore wind projects worldwide to more than 30 GW. Strengthening presence in the Irish market The agreement in Ireland is Iberdrola´s first corporate transaction of 2021, after completing twelve in 2020, despite the challenges of COVID-19. It also strengthens the company’s presence in Ireland, where it has been operating for two decades. Iberdrola is currently managing and developing onshore wind projects and battery storage schemes, in addition to offering 100% renewable energy products for retail customers. In Ireland, Iberdrola plans to invest up to €100 million in new renewable and storage projects by 2025. Existing projects include the repowering of the Barnesmore wind farm in County Donegal, and the Rigged Hill and Corkey projects in Northern Ireland, all of which include storage. It is also building the country's largest battery facility in Gorman (50 MW), which will be operational in 2021. Green investments to promote economic recovery Iberdrola believes that the energy transition will be a key driving force in the transformation of industry and in the green recovery of the economy and employment. Recently the company launched a major €75-billion investment plan for the period 2020-2025, with the aim of doubling its renewable energy capacity while seizing the opportunities created by the energy revolution facing the world's leading economies. After leading the energy transition for two decades, investing more than €120 billion in this period, Iberdrola is one the world´s largest clean energy companies. The company has a renewables capacity of more than 33 GW, making its generation fleet one of the cleanest in the energy sector. With CO2/kWh emissions that are already two-thirds lower than the European average, the strategy of investing in clean energy and grids will mean Iberdrola is a carbon neutral company in Europe by 2030. READ MORE
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02/02/2021Iberdrola selects Siemens Gamesa Renewable Energy as preferred bidder for East Anglia Hub turbines Iberdrola, through its UK subsidiary ScottishPower Renewables (SPR), has selected Siemens Gamesa Renewable Energy (SGRE) as the preferred bidder to supply and install some of the world’s most powerful and productive offshore wind turbines for its £6.5 billion East Anglia Hub programme. This builds on the companies’ successful track record in working together to deliver the East Anglia ONE offshore windfarm, which was completed last year and has delivered significant jobs and economic benefits for the East of England. SPR and SGRE have agreed to work together ahead of the next Contracts for Difference auction — scheduled for later this year — to optimise the projects, with the ambition of then signing turbine supply and installation agreements. Selecting a preferred bidder at such an early stage in the development of the Hub projects creates the opportunity for SPR and SGRE to develop the turbine design and the Hub programme hand in hand, which will help achieve further efficiencies and maximise local supply chain opportunities. The East Anglia Hub projects have the potential to deliver more than 7.5 % of the UK’s 40GW target for offshore wind generation by 2030 as set out in the Government’s Ten Point Plan. To deliver on the Plan’s ambitions, this year’s Contracts for Difference auction will need to ensure sufficient deployment to put the UK on track to achieve this target. The potential supply and installation of the East Anglia Hub turbines by SGRE would enable SPR to build on the achievements of East Anglia ONE in terms of jobs and UK supply chain content. East Anglia ONE supported almost 3,500 jobs at the peak of construction and delivered 100 long-term skilled jobs, with more than half the supply chain coming from the UK market. This included SGRE manufacturing turbine blades in the UK and supporting jobs within local ports, including Lowestoft and Great Yarmouth. The Hub projects would create a pipeline of continued economic investment that will support jobs and opportunities across the East of England. SPR will continue to work closely with local authorities, groups and local colleges to maximise the potential positive outcomes for local people, building on the success of East Anglia ONE. SPR will also continue to work with local stakeholders to deliver internship and project-based work, providing young people across East Anglia with valuable work experience and industry knowledge that could set them up for a future career. Jonathan Cole, Offshore Managing Director of Iberdrola said: “Offshore wind is now one of the cheapest forms of renewable generation and the approach we’re taking with East Anglia Hub — in conjunction with SGRE — shows just how far the industry has come and how well placed we are to deliver the Government’s 40GW target for offshore wind within the next decade. “Taking advantage of the most innovative technology available to ensure East Anglia Hub is home to some of the biggest and most productive turbines on the market would allow us to realise even greater economies of scale, helping to deliver a cleaner and greener future for us all. “We’ve already shown what we can achieve through our East Anglia ONE windfarm, which has been a huge success and represents one of the biggest and the most innovative offshore wind projects in the market. And not just in terms of producing green energy and helping tackle the climate emergency, but in having a positive and tangible impact on people, places and businesses. The facts really do speak for themselves and position us perfectly to emulate that success for East Anglia Hub. “This is a really exciting time for growing the offshore industry and, with SGRE selected as our preferred bidder, we can now take our efforts to the next level – building on the investment, bespoke facilities and economic benefits we’ve already delivered to support local people and jobs to create even longer-lasting legacies that benefit people and communities across the East of England.” Andreas Nauen, CEO, Siemens Gamesa Renewable Energy, said: “We are delighted to be partnering with Iberdrola towards the next CfD auction to potentially construct another world-leading wind power plant, the East Anglia Hub, following the successful completion of the East Anglia ONE project in 2020. “These projects could be significant for many reasons, including the input that it will make to both the UK's National Grid and to employment on the east coast of England. For Siemens Gamesa, the potential deployment of our most innovative offshore wind turbine would enable us to additionally aid the UK government's plans for the green recovery by delivering clean energy and meaningful employment for years to come.” The initial 1,400 MW of power to be generated through the Hub projects via East Anglia THREE has secured planning consent. Planning applications for East Anglia ONE North (800 MW) and East Anglia TWO (900 MW) are currently being examined by the UK Planning Inspectorate. Subject to the outcome of the planning considerations, construction of the East Anglia Hub is expected to commence in 2023, with completion in 2026. READ MORE
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02/02/2021Iberdrola completes the largest green hybrid bond issue in history, for 2 billion euros Today, Iberdrola launched the largest green hybrid bond issue in its history, amounting to 2 billion euros. The demand for and the terms of this operation, the group's fourth of its kind, once again demonstrate the confidence that the market and investors have in the soundness and solvency of the energy company's business and growth plans. The operation has been structured in two tranches, both perpetual, but with a repurchase date: after 6 years for the first tranche and 9 years for the second. Subsequently, it can repurchase either of them annually, on the coupon payment date. The coupon has been set at 1.45% and 1.825%, respectively. Both are below the minimum coupon paid to date by the company in an operation of these characteristics (1.874% for the 5.5-year tranche issued last November). These conditions are highly advantageous as this is a subordinate instrument, for which the redemption and coupon payments depend on the issuer's decision. The amount of 2 billion euros coincides with the needs established for 2021 for this type of financing by the Iberdrola investor plan. So, in just one month, the group will have already met its target in this regard for the current financial year, allowing Iberdrola to continue to maintain its excellent financial health. In addition, hybrid bonds count as 50% capital according to the methodology used by the main rating agencies, so that this operation also contributes to maintaining the group’s credit ratings. The demand recorded demonstrates the market's huge interest, as it exceeded 10 billion euros, in other words, more than five times the initial offer. This was made possible by the participation of more than 380 qualified investors, from many nationalities. The placement has been carried out by Citi, BBVA, Bank of America, Goldman Sachs, Credit Suisse, Santander, Natixis and Natwest, among others. The funds raised will be used to finance and refinance the offshore wind farms of Saint Brieuc (France) , which will have an installed capacity of 496 MW, and Baltic Eagle (Germany) , with a capacity of 476 MW. These projects are part of the 75-billion-euro investment plan launched by Iberdrola for the period 2020-2025. Most of this amount will go to the growth of renewables, to double capacity to 60 GW by 2025, in addition to new smart grids and more storage capacity. This means that 80% of the plan will be for sustainable investments, according to European Union criteria. Iberdrola reaffirms its global leadership in green finance With this new issue, the company chaired by Ignacio Galán continues to strengthen its leadership in sustainable financing, with more than 24 billion euros in active capital, of which more than 15 billion euros correspond to green financing and about 9 billion to credit lines subject to sustainability criteria. Today's operation makes it possible to affirm that Iberdrola is the world's largest green bond issuing group. The projects to which the resources obtained with these types of placement are allocated are aligned with the United Nations Sustainable Development Goals (SDGs), on which Iberdrola focuses its efforts: Number 7 – Affordable and Clean Energy - and Number 13 – Climate Action. The green nature of the issue and the application of the funds have been validated by Vigeo Eiris, a leading European expert in assessing practices and behaviours by companies and public corporations in the areas of environment, social responsibility and good governance. READ MORE
