Iberdrola said the money would be split into three areas: renewables, power transmission and convential power generation.
The aim of the projects will be to reduce the cost of energy and the environmental impact.
In terms of renewables, Iberdrola said it would be looking to "make existing technologies more efficient and develop new generation technologies".
Iberdrola has also issued a €600 million issue of 4-year eurobonds maturing in January 2016.
