US Renewables to See Big Chunck of Iberdrola’s EUR 25Bn Investment Budget

Business & Finance

Iberdrola is increasing its net investments by EUR 1 billion, from EUR 24 billion planned at the beginning of 2016 to EUR 25 billion, with 42% of the amount earmarked for renewable energy projects, with most of them located in the United States.

Ignacio Galán, Chairman of Iberdrola at the presentation of 2016 financial results (Image: Iberdrola)

The investment, part of Iberdrola’s 2016-2020 strategic outlook, will add 6.5GW to its renewable capacity, the company said in its latest financial results.

Of the total EUR 25 billion, the United States will see the most of the amount being invested in renewable projects across the country.

Iberdrola is involved in the US renewable energy through AVANGRID, its North American subsidiary. “In the United States, AVANGRID has turned into a huge platform for the development of new energy infrastructure. The subsidiary focuses its activity on networks and renewables, and is the country’s second wind power operator,” Iberdrola stated.

Last month, AVANGRID was named as one of the nine companies eligible to participate in the commercial wind lease sale for the 122,405-acre area offshore Kitty Hawk in  North Carolina. The US Bureau of Ocean Energy Management (BOEM) is set to hold the auction on 16 March 2017.

The company was also one of the bidders for an offshore wind lease off New York at BOEM’s auction in December.

Iberdrola’s AVANGRID made it to the 30th round, in which it offered USD 32 million, but withdrew from the bidding after the asking price in the following round was set to USD 36.5 million. The lease rights were won by Statoil after 33 rounds and the Norwegian company agreeing to pay almost USD 42.5 million.

Offshore WIND Staff