Spain's Iberdrola to invest 12 billion pounds in Britain by 2028

Spanish renewable energy company Iberdrola will invest 12 billion pounds (337.6 billion Czech crowns) in Britain's power grid and renewable energy projects between 2024 and 2028. The company said in a statement today. The plan is in line with the company's broader strategy, which is increasingly focused on grids, whose returns tend to be predictable, and takes a more selective approach to renewable projects, favouring those with higher returns.

Some European energy giants are more cautious about renewables, as the sector now has to contend with higher interest rates and rising debt-servicing costs. Further investment in grids is also essential to strengthen the system as renewable electricity generation increases, despite being intermittent and unstable. Italy's energy group Enel has adopted a similar approach, focusing on grids in its new investment plan and taking a more cautious approach to renewable energy projects, Reuters reported.

Iberdrola specified that around two-thirds of its planned total investment will go towards the transmission and distribution network, including an investment of 2.7 billion pounds in a subsea cable. The cable is expected to be capable of transmitting enough renewable energy to power two million homes.

Iberdrola also pledged investment in solar and wind projects, including the East Anglia 3 offshore wind farm on the east coast. Further investment will go towards green hydrogen. The total investment could increase further if additional offshore wind opportunities arise, the company added.

Over the past 15 years, Iberdrola has invested nearly 30 billion pounds in Britain's electricity grid and renewable power generation. Last year, it announced an investment plan for 2023 to 2025, pledging to invest 6.7 billion pounds in Britain, of which more than two billion has already been invested. It has now revised and increased the programme.