Global energy major Iberdrola has accelerated its sustainability and net-zero transition strategy with a €58 billion investment plan for 2025-2028 focused on renewable energy, electricity grids, storage infrastructure, and decarbonization initiatives.
The company’s Integrated Report 2026 highlights major progress in emission reduction, renewable capacity expansion, electrification, and sustainable infrastructure development across Spain, the United Kingdom, the United States, Brazil, and other international markets.
Iberdrola said electrification remains central to its sustainability vision, supported by investments in electricity transmission and distribution networks, renewable energy generation, and storage systems designed to enhance energy security, self-sufficiency, and competitiveness. Chairman Ignacio S. Galán said the company will invest €58 billion between 2025 and 2028, mainly in the United States and the United Kingdom, to strengthen sustainability and energy autonomy.
The renewable energy company reported that its total installed capacity reached 58,343 MW in 2025, while renewable installed capacity exceeded 85 percent of total generation assets. Emission-free production also increased to 85 percent, demonstrating the company’s rapid transition toward clean energy infrastructure.
Iberdrola reduced specific CO2 emissions by 83 percent since 2015, lowering emissions from 225 gCO2/kWh to 39 gCO2/kWh in 2025. Including discontinued activities, emissions stood at 60 gCO2/kWh. Scope 1 emissions dropped sharply to 5,247 kt CO2 equivalent in 2025 from 13,207 kt in 2021, while Scope 3 emissions declined to 25,210 kt from 44,615 kt during the same period.
The company invested €14.46 billion in 2025, including €12.56 billion in gross organic investments. Around 60 percent of the investments were directed toward the United States and United Kingdom, while Spain accounted for 15.9 percent and Brazil represented 13 percent.
Iberdrola’s Strategic Plan 2025-2028 allocates approximately €37 billion toward electricity networks and €21 billion toward renewable energy and customer businesses. The utility expects to add 9,500 MW of renewable capacity by 2028, surpassing 60,000 MW of renewable installed capacity globally.
The company emphasized that networks are the cornerstone of its energy transition strategy. Regulated Asset Base (RAB) increased 12 percent to €50.9 billion in 2025 and is projected to reach nearly €70 billion by 2028, representing around 40 percent growth compared with 2024. Iberdrola plans major transmission and grid modernization projects to support electrification demand from electric vehicles, data centers, heat pumps, and industrial applications.
In renewable energy projects, Iberdrola advanced several strategic developments during 2025. The company started construction of the 1,400 MW East Anglia Three offshore wind project in the UK, capable of supplying power to more than 1.3 million households. Iberdrola and Masdar also commissioned the 476 MW Baltic Eagle offshore wind farm, which will supply electricity to 475,000 homes and prevent 800,000 tonnes of CO2 emissions annually.
The company also signed a €500 million green loan with the European Investment Bank for the Windanker offshore wind farm in the Baltic Sea and issued its first EU Green hybrid bond worth €1 billion.
Iberdrola’s renewable energy portfolio spans multiple technologies and regions. In Spain, the company operates 23,047 MW of renewable installed capacity, including 11,052 MW of hydroelectric, 6,601 MW of onshore wind, and 5,182 MW of solar photovoltaic assets.
In the United States, Iberdrola operates 10,106 MW of renewable capacity, including 8,178 MW of onshore wind, 1,511 MW of photovoltaic plants, and 286 MW of offshore wind assets.
The UK business includes 3,226 MW of renewable installed capacity with 2,148 MW of onshore wind and 908 MW of offshore wind assets.
Brazil operations include 3,617 MW of renewable installed capacity, supported by 1,914 MW of hydroelectric power and 1,554 MW of onshore wind energy assets.
Iberdrola also expanded its international renewable footprint through Iberdrola Energía Internacional, which operates 4,933 MW of renewable capacity across Europe, Australia, Qatar, and Japan, including 2,062 MW of onshore wind and 1,322 MW of offshore wind projects.
The sustainability strategy also includes social and innovation commitments. Iberdrola increased B4SI social contributions to €62.7 million in 2025, nearly three times higher than 2015 levels, while R&D investment rose to €425.4 million. The company plans to invest €1.6 billion in R&D by 2028 and hire 15,000 employees globally as part of its sustainable growth roadmap.
The company’s sustainable procurement strategy continued to strengthen, with 94 percent of purchases sourced from sustainable suppliers in 2025. Iberdrola’s supplier purchases reached €13.2 billion during the year and supported approximately 500,000 jobs across its value chain.
Iberdrola also maintained strong sustainability rankings and ESG recognition globally. The company remained included in the Dow Jones Best-in-Class World & Europe indices for the 25th consecutive year and was recognized in CDP’s prestigious A List. MSCI rated Iberdrola AAA, while S&P Sustainability Yearbook placed the utility in the global top 1 percent for ESG performance.
According to the report, Iberdrola’s long-term strategy is built around creating a secure, competitive, and decarbonized electricity system supported by renewable generation, smart grids, storage technologies, and electrification infrastructure capable of accelerating the global transition toward net zero emissions.
SHAFANA FAZAL
