Spanish multinational energy company Iberdrola has announced a €75 billion ($89.1 billion) economic recovery plan to be implemented over the next five years.
The investment plan will help the utility to accelerate its energy transition whilst boosting jobs in countries the group operates.
The plan will enable Iberdrola to double its renewable energy capacity. The utility’s renewables capacity will reach 60GW in 2025, compared to 32GW in 2019.
By 2025, Iberdrola’s clean energy portfolio will be divided between onshore wind (26GW), offshore wind (4GW), solar (16GW) and hydro (14GW).
Up to €68 billion ($80.8 billion) of the investment will be organic and of which more than half of the organic growth (51%) will go to renewables and 40% towards modernization of grid networks.
Expanding renewables portfolio is expected to help Iberdrola to achieve its 2030 carbon-neutral goal.
To date, Iberdrola’s CO2/kWh emissions are two thirds below the European average.
The economic recovery plan will also reduce the utility’s global CO2 emissions by 86% to 50g/kWh by the end of the decade. As an additional contribution, the company will plant 20 million trees by 2030 (8 million trees by 2025).
Planned investments in the modernization of grid networks will exceed €27 billion ($32.1 billion).
To accelerate its adoption of intelligent, digital and innovative solutions for clients, Iberdrola will increase the number of contracts with customers worldwide to 60 million by 2025.
Investments and procurement of goods and services from its more than 22,000 suppliers will contribute to sustaining up to 500,000 jobs globally by 2025. In addition, 20,000 new recruits are expected by the group during the same period.
Green hydrogen will remain a key focus for Iberdrola to achieve its decarbonization and sustainability goals. The energy provider has plans to install 600MW by 2025 (800MW by 2027 together with Fertiberia).
In Spain, Iberdrola will increase its investments by 60%. More than €7 billion euros will be allocated to renewables and over €4.5 billion ($5.3 billion) to networks.
The investment program is the largest by a Spanish company.
Ignacio Galán, the Chairman of Iberdrola, explained that “after 20 years of anticipating the energy transition, our business model positions us as a key agent in the transformation of the industrial fabric. With our experience, our engagement with society and our financial strength we are advancing a model for long-term sustainable economic growth capable of meeting the current challenges of society.”