What's happened
Iberdrola plans to invest over £24 billion in UK energy infrastructure by 2028, focusing on grid upgrades to meet rising demand. The company will allocate 35% of the funds to the UK, creating 15,000 jobs, amid ongoing debates over energy costs and renewable infrastructure.
What's behind the headline?
Iberdrola's substantial investment underscores the UK’s strategic focus on modernising its energy grid to support a growing demand for electricity, especially from electric vehicles, home heating, and data centres. The emphasis on transmission upgrades aims to reduce congestion and curtailment issues that have inflated consumer costs. The company's focus on regulated assets, which will constitute 65% of the investment, indicates a shift towards stable, long-term returns, but also raises concerns about the efficiency of current market structures. Critics highlight that grid congestion and the current market design incentivise wind farm owners to be paid for non-generation, adding billions to consumer bills. The proposal for zonal pricing, which could lower costs in wind-rich regions like Scotland, remains politically contentious, with the government favoring a unified market. Overall, this investment signals a significant step towards a greener, more resilient energy system, but systemic reforms are necessary to ensure affordability and efficiency.
What the papers say
The Independent reports that Iberdrola is investing over £24 billion in UK energy infrastructure, with 35% allocated to the UK, creating 15,000 jobs by 2028. Bloomberg notes that 65% of the funds will go into regulated assets, supporting stable earnings growth. The Ecologist highlights ongoing protests against gas reliance and market inefficiencies, emphasizing the need for reform to reduce consumer costs and curb emissions. These sources collectively illustrate a broad consensus on the importance of infrastructure upgrades, market reform, and the transition to renewable energy, while also acknowledging the challenges posed by current market structures and political debates.
How we got here
Iberdrola, one of the world's largest energy companies, announced a major investment in UK energy infrastructure, primarily targeting transmission and distribution networks. This follows previous commitments and ongoing projects like offshore wind farms, driven by the UK's increasing energy demand and policy ambitions for decarbonisation.
Go deeper
Common question
-
What Does Iberdrola’s £24 Billion Investment Mean for UK Energy Prices?
Iberdrola’s massive £24 billion investment in UK energy infrastructure is set to reshape the country's energy landscape. But what does this mean for consumers? Will energy prices go up or down? How will this investment impact jobs and renewable projects? Below, we explore the key questions around this significant development and what it could mean for your energy bills and the future of UK energy independence.
-
What Does Iberdrola’s UK Investment Mean for the Future of Energy?
Iberdrola’s plan to invest over £24 billion in UK energy infrastructure by 2028 is set to transform the country’s energy landscape. This massive investment aims to upgrade the grid, boost renewable energy projects, and create thousands of jobs. But what does this mean for consumers, the environment, and the UK economy? Below, we explore the key questions about this significant development and how it could shape the next decade of energy in the UK.
More on these topics
-
Iberdrola is a Spanish multinational electric utility company based in Bilbao, Spain. Iberdrola has a workforce of around 34,000 employees in dozens of countries on four continents serving around 31.67 million customers.