Iberdrola is advancing in its global growth with a record Investment plan of €47 billion during the period 2023-2025 based on more electricity grids and selective growth in renewables, to promote a safe, clean and competitive system that will accelerate the energy transition.

Ignacio Sánchez Galán, Iberdrola Executive Chairman, in Capital Markets Day of 2022

The growth of this Strategic plan is based on organic investments in all markets and will be 80% allocated to A-rated countries with stable regulatory frameworks and ambitious electrification targets.

By the end of the decade, Iberdrola expects to exceed €65 billion in network assets and 100,000 MW of capacity, more than 80% renewable, thanks to new investments of between 65 and 75 billion between 2026 and 2030.

Ignacio Galán, Iberdrola's Executive Chairman, commented:
"The record global investment plans we have set out today will help us to bring more self-sufficiency and resilience against potential energy shocks in the countries where we operate, by reducing their dependency on oil and gas and by continuing their path to Net Zero."

Highlights:

• Record investment plan of €47bn to 2025, driven by organic investments in all markets and PNM Resources transaction.
• Strong financial ratios during the plan are comfortably within thresholds for current ratings, thanks to a model based on fixed-rate financing, long-term maturity profiles, active liquidity management and optimization of green financing, with no capital increases expected and supported by asset rotation. 
• €27bn (57%) of investment in electricity networks to increase asset base reaching €56bn by 2025 – providing predictable frameworks and protection from macroeconomic uncertainties.
• €17bn of investment in renewables to deliver 52GW of renewable installed capacity by 2025 – based on projects with the best risk/reward profile and a high-quality pipeline.
• More than 80% of investments allocated to A-rated countries with stable regulatory frameworks and ambitious electrification targets: improving geographical diversification through additional focus on countries like Germany, France and Australia. 
• EBITDA reaching €16.5-17bn by 2025 (8-9% CAGR), with net profit increasing to €5.2-5.4bn (8-10% CAGR).
• Dividend to grow in line with net profit (65-75% pay-out) to between €0.55-0.58 in 2025, with a floor of €0.46 in 2023-24 and €0.50 in 2025.
• Reaffirming 2030 outlook driven by growth in all markets and acceleration of electrification:  investments of €65-75bn in 2026-30 to exceed 100 GW of capacity and €65bn of networks assets.

The company reaffirms its ESG credentials:

• Targets to become carbon neutral by 2030 in scopes 1 and 2 and reaching Net Zero in all 3 scopes by 2040
• 12,000 new hires to 2025, supporting more than 500,000 jobs by 2030 along its value chain.

KeyFacts Energy Industry Directory: Iberdrola