Iberdrola Profits Up with Contribution from OWF

Laxman Pai
Monday, July 29, 2019

Spanish public multinational utility company Iberdrola said that its gross operating profit (EBITDA) grew by 12.5% to €4.99 billion, due to the positive performances in the United States, Mexico and Brazil and the contribution of the Wikinger offshore wind farm, which amply offset lower contribution from the Networks and Renewables businesses in Spain and the Generation and Retail business in the UK

Group Chairman Ignacio Galán explained that “this double-digit growth highlights the success of our business model, based on a commitment to clean energy, regulated assets with stable and predictable returns, and a well-judged geographical diversification.”

From investments during the first half, he highlighted the 68% rise in clean generation investments, as reflected by the good progress of works at East Anglia One offshore wind farm in the North Sea.

Due to this investment, the company expects 5,250 MW of new capacity to be commissioned during 2019, out of which 75% will come on stream in the second half of the year. The acceleration in the pace of investment signals that the target of developing 13,000 MW in new capacity during the 2018 to 2022 period will be exceeded. This would mean an increase in the group's installed capacity of more than 40% relative to the start of the Plan.

The increase in investments is also a response to the business opportunities presented by the transition to a low carbon economy.

He said decarbonisation strategies are being implemented in both the US and Europe. These include the EU's Clean Energy for All Europeans package, Spain's Integrated National Energy and Climate Plan, the UK's Net Zero Emissions by 2050 Plan and the New York Climate and Community Protection Act, among other initiatives.

At the same time there are opportunities in offshore wind and network infrastructure in US, UK and Brazil. Mexico is also seeking to commission 70,000 new megawatts of capacity by 2033.

Categories: People & Company News Finance Energy Wind Power Offshore Wind

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