Iberdrola has outlined plans to invest €58bn ($68bn) by 2028, directing the bulk of its capital towards power networks in the UK and the US. 

The Spanish utility is pivoting its strategy to transform its profile, focusing more on regulated grid assets.  

The company said the investment will be funded by mid-to-high single-digit earnings growth and will be concentrated in countries with stable regulatory frameworks. 

Approximately 85% of all capital spending will go to these markets. 

Electricity grids are becoming increasingly vital as industries and transport sectors demand more power, often supplied by renewable energy, reported Bloomberg. 

In recent years, Iberdrola has focused on expanding its global network portfolio, acquiring assets in the US, UK, and Brazil.  

Iberdrola's pivot towards grids began in 2022, with increased stakes in Brazilian distributor Neoenergia, acquiring the remaining ownership of US-based Avangrid, and taking a majority stake in the UK operator SP Electricity North West. 

Beyond grids, Iberdrola plans to allocate €21bn for its generation and customers business, with 75% of that tied to projects under construction. This portfolio will include allocation of 38% to offshore wind, 24% to onshore wind, 10% to solar photovoltaic, and 10% to storage.  

Looking further ahead, the company aims for additional investment of about €45bn between 2029 and 2031, primarily in the UK and US. 

More than €30bn of this will be directed towards networks to achieve an asset base of over €90bn by 2031. 

Iberdrola executive chair Ignacio Galán said: “This plan aims to transform Iberdrola's profile into a more regulated company, with networks as a vector for growth.  

“We will invest €58bn by 2028, two-thirds of which will go to transmission and distribution networks, mainly in the United Kingdom and the United States. 

“We expect to achieve a net profit of €7.6bn in 2028, with around €20bn allocated to dividends between 2024 and 2028."