[3.3] Renewables

Regulatory environment of the business

Bandera España


  • Royal Decree 960/2020 regulating the new financial regime for renewable energy (régimen económico de energías renovables) (REER) was published on 4 November and includes a very flexible tariff framework, based on the recognition of a fixed price for energy (€/MWh). On 11 December the first auction was called for 3 GW (with at least 1 GW wind and 1 GW PV) and a contractual duration of 12 years, in which new installations or extensions of existing ones located in mainland Spain could participate. This auction took place on 26 January 2021, with an award to Iberdrola of 300 MW of photovoltaic energy.
Bandera Reino Unido

United Kingdom

  • In 2021, offshore auctions are expected, as are CfD (contracts for difference) auctions, with strong demand.
Bandera Estados Unidos

United States

  • The Democratic victory in the presidential and congressional elections point to a more favourable environment for renewable development.
  • In December 2020 Congress published a package of omnibus funds that include:
    1. Extension of PTCs and ITCs for onshore wind projects begun in 2021.
    2. A 2-year extension of ITCs for solar projects.
    3. A new 30% ITC for offshore wind projects beginning construction before 2025.
  • State (RPS) and corporate (IRP / RfP) interest in renewables remains, with their own objectives.
Bandera Brasil


  • Due to weak demand in 2020 and the interruption of auctions in December due to COVID-19, the timetable for auctions for new and existing energy has been revised (Implementing regulations No 435-436/2020) for years 2021-2023.
  • There are regulatory advancements for the inclusion of offshore technologies and solutions for hybridisation and storage.
Globo mundo


  • The other countries within the International scope in which Iberdrola has a presence (Australia, France, Italy, Germany, Poland, Japan, Sweden, etc.) are also setting more ambitious decarbonisation targets which, together with the appropriate regulatory developments, will drive the development and construction of renewable projects in the various technologies.

The business will engage in sustainable growth, mainly based on onshore wind, offshore wind, photovoltaic, hydroelectric and pumped storage investments in the countries that are most important to the group.

Objectives, risks and principal activities


  • Occupational safety and health.
  • Efficiency in operations to optimise the operation of assets.
  • Efficiency in development and construction costs to maximise the competitiveness of all renewable projects.
  • Profitable growth from various technologies in strategic countries for the group, and in new countries of interest.
  • Development of a robust portfolio that covers the company’s growth plan.

Significant risks

  • Regulatory risk: changes in regulations in the countries in which it operates.
  • Operational risk: availability rate of facilities and potential incidents with environmental impact.
  • Market risk: changes in prices of energy in short-term markets.
  • Risk of access to evacuation networks and limits on production due to technical restrictions of the networks.
  • Technological and cybersecurity risks affecting the facilities.

Principal activities 2020

  • 2,890 MW of new installed capacity1:
    • Onshore wind: 287 MW in Spain, 468 MW in the United States, 88 MW in Mexico, 670 MW in Australia (Infigen), 118 MW in France (Aalto Power), 44 MW in the United Kingdom and 16 MW in Greece.
    • Offshore wind: 294 MW in the United Kingdom, which complete East Anglia ONE (total of 714 MW).
    • Photovoltaic solar: 600 MW in Spain, notably Ceclavín, and 274 MW in Mexico.
    • Batteries: 6 MW in the United Kingdom and 25 MW in Australia.
  • There are also approximately 7,000 MW under construction, of which more than 1,800 MW are onshore wind in Spain, the United States, Brazil and Mexico, and more than 2,800 MW are photovoltaic solar in Spain, the United States, the United Kingdom, Brazil, Australia, Italy and Portugal. Batteries are also being installed the United Kingdom and Spain. Construction of the Tâmega hydroelectric complex, with 1,158 MW, continues in Portugal.
  • Following the construction of the 714 MW East Anglia ONE project in the United Kingdom, offshore wind continues to grow with the construction of the 496 MW St. Brieuc project in France and the 476 MW Baltic Eagle project in Germany, the 800 MW Vineyard project and 804 MW Park City project in the United States, and the development of the other projects in the portfolio.

Load factor and availability

Maximising the load factor of facilities and availability, through operating and maintenance measures, as well as other external factors, optimising production.

Operation and maintenance costs

Continuous improvement in efficiency through global standardisation and systematisation processes, exploiting digitalisation opportunities.

Project portfolio

Development of the portfolio of onshore wind and photovoltaic projects in Spain, the United Kingdom, the United States, Brazil, Mexico and International (Continental Europe, Australia and South Africa) and offshore wind projects in France, Germany, the United Kingdom and the United States, together with the new development agreements in Japan and Sweden.

(1) The new additional renewable capacity is 2,881 MW, due to the disposal of 9 MW from the Iberdrola portfolio.

Key figures of the Renewables Business

  Spain United Kingdom United States Brazil Mexico IEI Total
Item Unit 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Gross margin €M 1,218 1,251 957 678 893 852 145 174 118 113 428 378 3,758 3,446
EBITDA €M 698 736 758 525 592 591 111 125 93 86 334 323 2,586 2,386
Load factor1 % 18.0 15.9 28.5 24.8 29.4 29.1 33.0 29.0 25.2 29.5 30.5 31.6 23.2 21.3
Gross investments €M 1,173 766 597 907 1,027 1,397 166 87 242 129 1,555 50 4,760 3,335
Workforce No. of people 1,731 1,567 549 418 939 752 352 225 139 136 461 257 4,171 3,355

Quarterly Results Report

• IFRS 11 has been applied to the financial information.
(1) The load factor includes all renewable technologies.

Outlook 2020-2025

  • Investments of €34,000 million, destined mainly to increasing the installed capacity in Spain, the United States, the United Kingdom, Brazil and International.
  • 28 GW are expected to be installed during the 2020-2025 period, including the St. Brieuc (496 MW), Baltic Eagle (476 MW), Vineyard (800 MW) and Park City (804 MW) offshore wind farms, the Ceclavín (328 MWdc) and Francisco Pizarro (590 MWdc) solar photovoltaic plants, and the Tâmega hydroelectric plant (1,158 MW).
  • Operational excellence thanks to the life cycle management of assets through digitalisation, maximising revenues and continuing with the advanced operation and maintenance model.

Investment plan of €34,000 million during the period

Accumulated new additional capacity in the 2020-2025 period (GW)