Iberdrola invests a record of € 12 billion in 2024

The only technology to record greater growth compared to the previous year was offshore wind, in which growth of 32.3% of up to 2.4 GW operating capacity recorded. The majority of the company's projects are located in the Onshore sector for wind and hydropower plants – with 20.7 GW or 13.1 GW operating capacity – but the general growth of the systems for renewable energies contributed to increasing the company's total capacity compared to 2023 by 1.7%.

“We continue this path by focusing on network investments in the USA and Great Britain, using the proceeds from the sales of fossil fuel to accelerate growth in both markets,” said Ignacio Galán, chairman of the Executive Executive Ignacio Galán, Iberdrola. “An increased business profile and better market basics contribute to the structural improvement of our prospects for 2025 and beyond.”

Strong financial services

According to Iberdrola documents, this “structural improvement” has the form of a forecast of “medium to high setting growth”.

The vast majority of the company's profits were powered by a sale of 12 combined bicycle power plants and a wind farm in Mexico. At that time, the company said that this sale alone expanded 1.16 billion euros in the net profit in the first quarter of the year. Iberdrola also did not fully sell with 1.2 GW solar and onshore wind capacity, which are currently in operation in the country, although its production of renewable electricity decreased by 3.4% compared to the previous year to 2,747 GH until the end of 2024.

The following graphic shows how the Q1 2024 profit of Iberdrola exceeded the profits made in the first half of the previous year.

In the beginning of 2024, Iberdrola made a number of announcements of new project capacity because it expands its portfolio for renewable power supply. This includes plans to invest 2 billion euros in Spanish and Portuguese renewable energy projects that were signed with the sovereign Wealth Fund of Norway, and an agreement on the establishment of what was built up in Italy's largest PV plant at the time of the operational PV system.

The graphic also shows the weaker profits of the company in the fourth quarter of the year, which may be due to higher losses from amortization than in the previous quarters. In the fourth quarter, “amortization and provisions” Iberdrola cost € 2.9 billion compared to 1.4 billion euros in the last three quarters, with the company's profits.

This can be associated with the natural decline in productivity at the end of the lifespan of his assets, especially its wind farms. In November, the company secured an environmental permit for its first repowering project of the 49.5 MW Molar do Molinar wind farm in Spain, which has been in operation for 24 years.

Both declines of the efficiency of electricity generation by older assets, and the costs for the end of life such as revision and repowering could make more contributions to the developers' balance sheets if the sector for renewable energies matures.

Mexico drives regional growth

The sale of his assets in Mexico contributed to the profits of the region to increase the largest profit growth of the year compared to the year with Mexican business activities of the company from EUR 791.5 million in 2023 to around 2.1 billion euros in 2024. While Mexico in the country with the smallest profit for the Sberdrola portfolios, which have won the income from the year up to the smallest, in the USA and the USA, in which US profits were in the USA and the US way.

In fact, Iberdrola achieved a higher result with its only regional market in Spain, the USA, Mexico, Brazil and its “rest of the world” in order to record a decline in income from one year to the next Great Britain. These trends are shown in the following graphic.

Despite a lack of profit growth for his British business, Iberdrola made a number of investments in his projects in the room. In October it was the second largest British power grid operator and signed an offshore wind park of the offshore wind park in East Anglia 3 with Amazon with Amazon in March.

The considerable sale of the company through the possession and operation of assets for other companies is also remarkable. Between 2023 and 2024, the Netto -Netto production of Iberdrola remained relatively stable and fell from 128,677 GWhn to 126,344 GWH by only 1.8%, while the solar generation rose from 5,639 GWH to 6,520 g by 15.6%. Net production for other companies fell by 84.6%compared to the previous year. The onshore wind generation fell from 210 GWH to 44 GWh and even gas production from 39,721 GW to 6,111 GWh.