Iberdrola, Europe's largest utility, to invest $120 billion in grids by 2031

Iberdrola, a Spanish utility company, plans to invest more than 100 billion euro ($117 billion) through 2031. This is part of its move towards a more regulated power grid business in countries like Britain and the United States.

The largest utility in Europe presented its strategy update for 2028 on Wednesday, along with an outlook to what is to come until 2031. This includes a significant increase in investments into the power grid and a more selective attitude towards renewable energy projects.

The plan builds on the strategic shift that was launched in 2022, which saw an increase in annual investment from 12 to 15 billion euro.

Iberdrola expects to invest an additional 45 billion Euros between 2029-2031.

Renewables: The largest part of the investment will be spent on offshore and land-based wind farms, most of which are already in construction.

Ignacio Sanchez Galan, Executive Chairman of Iberdrola, said: "This plan is designed to transform Iberdrola into a more regulated and a network-based company that can grow."

Iberdrola aims to achieve a net profit adjusted of 7,6 billion euros annually by 2028, which is about 2 billion euro more than it was in 2024.

The 52 billion euro cash flow goal is based on the amount of assets and partnerships sold and completed in three-quarters. It will employ 15,000 people.

Dividends of 20 billion euros will be paid to shareholders between 2025-2028. This is equivalent to between 65 and 75% earnings, and a minimum of 0.64 euro per share.

The value of Iberdrola’s grid assets is expected to increase by 70 billion euros and 90 billion euros respectively as a result.

The firm's 2031 forecast shows earnings growing by at least a single-digit to high-single-digit percentage.

(source: Reuters)