Behind Iberdrola's Impact on UK's Renewable Energy
Recognised as the second-largest utility by market capitalisation, Iberdrola is a towering figure in the global energy market, employing more than 40,000 people who provide electricity to more than 36 million consumers globally.
And despite its roots being firmly planted in Spain, Iberdrola's influence spreads widely beyond its home base.
The company’s acquisition of an 88% shareholding in Electricity North West (ENW) via its subsidiary ScottishPower is pivotal in advancing sustainability within the UK’s energy sector, strengthening Iberdrola's commitment to supporting the UK's climate goals and the broader transition to renewable energy.
Iberdrola's impact on the UK energy landscape
The acquisition journey began in 2024 when Iberdrola, through ScottishPower, agreed to an equity transaction valued at £2.1bn (€2.5bn, US$2.7bn).
With the green light from the UK Competition and Markets Authority (CMA), this deal aligns with Iberdrola’s sustainability objectives and the UK's ambitious climate targets, marking a significant moment in the nation’s shift towards a sustainable energy future.
“Electrification is powering the UK’s growth and competitiveness, as well as improving its strategic autonomy and contributing to national security,” Iberdrola’s Executive Chairman and ScottishPower’s Chairman, Ignacio Galán, says.
“Iberdrola continues to increase its investments here in support of the government’s plans to modernise the country’s energy system. Network investments are the backbone to this process.
“As we welcome our ENW colleagues into our business, we further strengthen our joint ambitions to deliver a resilient, flexible electricity network to meet the future needs and demands of Britain.”
Iberdrola has maintained a strong presence in the UK since 2007, asserting itself as a dedicated investor in the country’s energy landscape.
The company is committed to crafting a smarter, more sustainable energy system.
At the global level, Iberdrola is a leader in setting up infrastructure crucial for transitioning from fossil fuels to clean, renewable sources of energy.
As we welcome our ENW colleagues into our business, we further strengthen our joint ambitions to deliver a resilient, flexible electricity network to meet the future needs and demands of Britain
In the UK, this means supporting the rapid deployment of offshore wind, solar and other renewable resources — while also ensuring that the distribution networks can handle the increasing demand for clean electricity.
He continues: “On top of our current assets, worth more than £30bn (US$38.8bn), our plans in the country aim at investing £30bn by the end of the decade, two thirds in transmission and distribution networks and one third in renewables, mainly offshore wind.
“These investments will deliver significant jobs, supply chain and economic benefits to the country.”
Iberdrola’s sustainability impact
Through its subsidiary ScottishPower and the acquisition of Electricity North West (ENW), Iberdrola has solidified its position as the UK’s second-largest electricity distribution network operator.
The company now delivers electricity to approximately 12 million people via a vast network spanning over 170,000 kilometers.
Beyond its distribution operations, Iberdrola has established a strong presence in renewable energy within the UK.
ScottishPower, a pioneer in green energy, became the first integrated energy company in the UK to produce 100% green electricity, with an installed renewable capacity exceeding 3,000 MW.
Iberdrola also operates one of the world’s largest offshore wind farms, East Anglia ONE, located off the UK coast. This project alone boasts an installed capacity of 714 MW, capable of powering over 630,000 homes.
The £2.5bn (US$3.2bn) East Anglia ONE project, a collaboration between ScottishPower Renewables and Macquarie's Green Investment Group (GIG), marks the initial phase of a larger offshore wind complex.
Spanning 300km² and situated 43km off the Suffolk coast, its 102 wind turbines generate 714MW of clean electricity, sufficient to power approximately 630,000 UK homes each year.
In addition to this flagship project, Iberdrola's significant renewable energy ventures in the UK include:
- East Anglia Hub: Iberdrola’s largest offshore wind project worldwide
- Whitelee Wind Farm: The UK’s largest onshore windfarm, located just outside Glasgow
- Western Link: A 850km long high-voltage cable — 770km of which runs under the sea — that links the west coast of Scotland with the north coast of Wales and enables the transmission of renewable energy from Scotland to homes and businesses located in Wales and England
- East Anglia THREE: Part of the East Anglia Hub, East Anglia THREE is expected to be operational in 2026 and could power the equivalent of up to 1.3 million homes with its 1,400MW capacity.
Ignacio adds: “The ambition of the East Anglia THREE project is a further demonstration of Iberdrola’s commitment to decarbonisation and energy security around the world, through large-scale renewable infrastructures capable of generating economic activity and creating thousands of jobs.”
About ENW
ENW is responsible for the administration and maintenance of the electricity distribution network across a significant portion of North West England, serving almost five million people.
The company manages an extensive network spanning approximately 60,000km, which includes 13,000km of overhead power lines and more than 44,000 =km of underground electricity cables.
The acquisition of ENW aligns with Iberdrola's strategy to invest in electricity networks in countries with strong credit ratings, such as the UK.
The merger enhances Iberdrola's capacity to meet future energy demands, improve grid resilience and contribute to the UK's efforts to achieve net-zero emissions.
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