Iberdrola ramps up sustainability transformation with $920mn Scottish Power fossil fuel sale

By Olivia Minnock
As Scottish Power sells off its last remaining fossil fuel business, parent company Iberdrola has become the first 100% renewable e...

As Scottish Power sells off its last remaining fossil fuel business, parent company Iberdrola has become the first 100% renewable energy company in the UK.

This week, Scottish Power sold off some of its facilities to coal and biomass business Drax in a deal worth $920mn which involved almost 2.6GW of fossil fuels and hydro generation capacity.

The Iberdrola subsidy has sold four combined-cycle gas turbine plants in England, totalling 2GW; two hydro plants in Scotland, totalling 126MW; and a pumped hydro storage plant in Scotland with a capacity of 440MW.

See also:

PCE’s 200MW solar facility breaks ground, could power 100,000 homes

SSE installs final Vestas turbines at 228MW Scottish onshore wind farm

Read the latest issue of Energy Digital magazine

Iberdrola hopes that the deal will free it up to invest in renewables and power grids in the UK. It has come away from all fossil fuels and is now focusing on wind power. The company is transforming its strategy to tackle climate change and the Drax deal forms part of its €3bn asset rotation plan set out in its Strategic Perspectives 2018-2022.

The group’s chairman and CEO, Ignacio Galán, said the UK is “a key market for us, and one of the present and future pillars of the group, where we will invest £5.5bn ($7.23bn) by 2022, primarily in increasing our renewable capacity, developing more and smarter grids and offering more personalised and efficient solutions to our customers”.

Currently, Iberdrola owns a total of 22.7GW of wind power capacity (installed or under construction) and has more than 3GW in the pipeline.

Share

Featured Articles

UK Government awards £54mn in heat network funding

Funding will support the development of schemes in London, Bedfordshire and Woking that use low-carbon heat sources

Shell posts $11.5bn second quarter profit

Shell's earnings fuelled by ongoing price rises and geopolitical instability as the energy major places greater focus on natural gas investments

bp opens first electric truck fast-charging facilities

Operated by bp’s Aral brand, the retail site at Schwegenheim in Rheinland-Pfalz has two 300kw chargers intended for electric trucks

Shell commits to developing Jackdaw gas field in North Sea

Oil & Gas

Prospex Energy raises £1.87m for Selva gas field development

Oil & Gas

Shanghai Electric Group launches low carbon business

Utilities