Banco Sabadell | According to press reports, Iberdrola will halve its investment in renewable energy next year, from around €8 billion to €4/€5 billion per year. Iberdrola has decided to continue rebalancing its investment effort towards networks and reduce its investment in renewables, where it will invest selectively. Thus, between 2024 and 2026, the investment forecast for networks amounts to €21.5 billion. Of the €15.5 billion it will invest in renewables until 2026, capacity is already under construction (partly shared with partners such as Norges and Masdar).
Assessment: News with little impact. We recall that investment in networks (58% of total net capex in the current 24-26 Strategic Plan) has been more significant than in renewables for some years now. In its next plan update (scheduled for September 2025), Iberdrola will increase its annual investment pace (probably from around €12 billion per year to around €15 billion), with the main focus on networks. Iberdrola will prefer to continue focusing on less volatile and more predictable asset growth such as networks, especially in core countries (Brazil, the US and the UK) where regulatory returns range between 7% and 16% before tax with protection against inflation and interest rates.
