Iberdrola’s renewables profits surge in first nine months of 2021

Renewables Ebitda up 70.9% between January and September, compared to wider company’s more modest growth of 10.7%

by Nadia Weekes 27 October 2021

Iberdrola’s chairman, Ignacio Galán, said the company remained committed to its sustainability strategy

A larger operating portfolio and greater load factors drove up gross operating profit (Ebitda) in Iberdrola’s renewables division in the first nine months of the year.

It recorded €3.04 billion Ebitda in its renewables unit between 1 January and 30 September 2021 – up 70.9% from the same period one year ago.

The utility increased its operational renewable capacity to more than 37GW by the end of September. In the last 12 months, it has commissioned 3,738MW of green capacity, of which 1,228MW was onshore wind. 

It currently has more than 7GW of renewables capacity under construction, with offshore wind accounting for 2.6GW of this pipeline. 

By 2025, Iberdrola aims to reach 60GW of operational renewable energy capacity. Some 27.6GW is due to be installed and commissioned in the 2020-25 period, of which nearly 23GW is under construction. 

Iberdrola claims to have a project pipeline of 22.8GW of offshore wind and 17.7GW of onshore wind.

The utility plans to invest €150 billion building a 95GW renewables portfolio by 2030.

Iberdrola’s chairman, Ignacio Galán, said the company remained “committed to our sustainability strategy based on the fight against climate change and the creation of wealth and employment in the communities where we operate, for the benefit of our stakeholders”.

As a whole, Iberdrola recorded net profit of €2.4 billion for the first nine months of 2021 – down 10.2% year on year, which was due to high energy prices and new taxes. Company-wide Ebitda rose 10.7% to €8.16 billion in the same period, driven by the US and Brazil. Of the total Ebitda, 87% came from networks and renewables. 

The company increased its total investments 6% year on year during the period, to €7.03 billion, with 77% being in international markets. Some 90% of investments were allocated to the development of new renewables and smart grid projects. 

Generation and supply posted €1.08 billion (-44.7%) Ebitda, as a result of high prices in the electricity markets of Spain and the UK, and cold spells in a number of markets in the first quarter of the year.