[2.3] A successful consolidated business model

Iberdrola firmly believes that the transition to a carbon-neutral economy by 2050 is technologically possible, economically feasible and socially necessary. Decarbonisation of the economy is a tremendous opportunity to create wealth, generate employment and improve both the condition of the planet and people’s health. The group is therefore committed to leading the energy transition, a path it took 20 years ago and that has led it to invest €120,000 million since then, to which it will add a further €75,000 million between 2020 and 2025.
This commitment will be fulfilled by promoting:

A successful consolidated business model

“After 20 years anticipating the energy transition, our business model makes us a key agent in the transformation of the industrial fabric. With our experience, our engagement with society and our financial strength, we are advancing a model for long-term sustainable capable of meeting the current challenges of society”.
-Ignacio Galán, chairman & CEO of the Iberdrola group-

+ Renewables

With one of the industry’s largest portfolios (>90 GW).

Renewable installed capacity (GW)

+ Networks

Increasingly smart networks.

Regulated assets

+ Customer services

New solutions for its customers.

Contracts (millions)

+ Innovation

Which responds to the demands detected: storage, green hydrogen, etc.

tons of green H2

Two decades of growth based on strong strategic foundations that drive future growth

Strategic foundations

And an economic / financial model that enables us to accelerate the creation of value for all

  • Investment is concentrated in the regulated businesses or businesses with long-term contracts, which provide recognised and recurring cash flows.
  • The selection of countries takes into account the stability of the regulatory environment applicable to the industry and their long-term credit rating.
  • The dividend policy is focused on a strong and growing return in line with the increase in the company’s results.
  • The principal finance instrument is Green Finance, which ensures transparency on the impact and use thereof, in line with EU Taxonomy, which allows for sufficient liquidity to be maintained.
  • This will enable Iberdrola to maintain its credit ratios within the established limits.

In low-risk countries
and businesses

In line with
EPS increase

Adequate liquidity and
diversified funding

65-75% payout
Floor of €0.40 / share up to 22
and €0.44 / share up to 25

Credit ratios to support a
BBB+, Baa1 rating

Growing cash flow generation

for growth.

Enabling a

Maintaining a
strong financial


Iberdrola’s business model allows it to:

  • Satisfy the expectations of its Stakeholders, and with regard to ESG+F.
  • Accelerate the growth of its renewable activities, mainly offshore wind and photovoltaic, in order to meet its decarbonisation target.
  • Maintain a strong financial position, which allows Iberdrola to meet its investment targets.
  • A sustainable, certain and growing dividend policy, which allows shareholders to participate in the objectives achieved.