Spanish energy company Iberdrola plans to invest €11.5bn in renewables over the next four years.
In full-year results today the developer said the capital expenditure will build the foundations for sustainable growth in the next decade.
Renewables capacity is expected to increase by 24% from 2017 to over 36GW while storage capacity will grow 25%.
“The plan we are presenting today is fully consistent with our strategy over recent years, while seizing the opportunities provided by the new digital environment,” said chairman Ignacio Galan.
“It maintains focus on growth in specific opportunities in regulated and long-term contracted businesses which offer earnings visibility while maintaining a geographically balanced portfolio and exploring growth beyond those frontiers.”
Net operating profit (EBITDA) for renewables stood at €1.6bn for 2017, up 6.1% on 2016, Iberdrola said.
Overall EBITDA for 2017 was down 7.3% on 2016 at €7.3bn due to the “poor performance” of its Spanish hydro business.
“This figure includes an extraordinary expense item for efficiency plans in the amount of €203m which will contribute to the group’s future efficiency,” the company added.
Net profit for 2022 is forecast to be between €3.5bn and €3.7bn.
Group company ScottishPower Renewables meanwhile booked operating profit of £316m, up 44.6% on the £218.5m figure for 2016.
“Completing our £650m investment in UK onshore wind in 2017 led to a good performance from the renewables business, delivering a significant increase in green electricity production,” said chief corporate officer Keith Anderson.
“We now have more than 2GW of wind power capacity and the £2.5bn East Anglia 1 offshore windfarm is well into construction.”
Image: Iberdrola
Iberdrola maps €11bn green push
By EBS