Europe’s green giant is focusing on safer bets

Avangrid

21/03/2024 10:42

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Lisa Jucca
       MILAN, March 21 (Reuters Breakingviews) - Iberdrola is
upping investment on ageing power grids. The $79 bln Spanish
utility is also buying out US unit Avangrid and allocating its
biggest chunk of capex to the States. Both bets look likelier to
pay off than renewable power and geographies with less
generous subsidies.
        
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    CONTEXT NEWS
    Iberdrola, Europe’s largest listed renewables player, said
it plans to invest 41 billion euros by 2026, including a planned
buyout of minorities in listed unit Avangrid and 5 billion euros
of co-investments from partners.
    The $79 billion Spanish utility said it was targeting EBITDA
of between 16.5 billion and 17 billion euros in 2026, up from
14.4 billion euros in 2023.
    Net investments over the next three years will amount to 36
billion euros, of which 60% — or 21.5 billion euros — will be
allocated to electricity networks. Iberdrola plans to allocate
10.5 billion euros to renewable projects such as solar and wind
farms, and 1.5 billion euros to electricity storage.
    Iberdrola has earmarked 35% of its planned net investments
to the United States, its biggest destination for capital
expenditure.
    Shares in Iberdrola were up 0.2% at 11.31 euros at 0830 GMT.

 (Editing by George Hay and Streisand Neto)
 ((For previous columns by the author, Reuters customers can
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