Spain’s Iberdrola SA said it would spend €75 billion,equivalent to $88 billion, over the next five years to double its renewable power capacity and capitalize on the shift to green energy, highlighting how some of Europe’s lesser-known utility companies have become major players in the global energy industry.
Iberdrola is already the world’s second-largest renewable energy producer by capacity—behind another European utility, Italy’s Enel SpA—having been an early mover in both wind and solar power. That has giving it an edge amid increasing demand for low-carbon energy, and boosted its appeal to investors, with its market cap now exceeding that of oil major BP PLC.
Global electricity use is expected to rise because of innovations like electric vehicles, with the International Energy Agency expecting renewables to provide 80% of the growth in demand through to 2030.
Iberdrola said Thursday the planned investment would allow it to grow its renewable capacity to 60 gigawatts by 2025, up from 32 gigawatts in 2019. That growth will mostly come from solar and wind power projects.
About a third of its renewables budget is earmarked for the U.S., with the company also planning to spend big in Spain and the U.K.
