Ignacio Galán, executive chairman of Iberdrola, has called for increased and accelerated investment in grids as well as greater policy support and stability, saying they are both necessary to enable the energy transition.
Speaking at a BNEF summit in London this month, Galán said that for every euro invested in renewables, one euro must be invested in electricity grids.
He estimates that investments in grids have to triple or quadruple to integrate new renewable power, ensure security of supply, provide resilience against extreme weather events and digitalise the system to cater for electric mobility, self-consumption and heat pumps.
Galán said that energy companies are ready to invest but must be confident they can make a healthy return in the process. He called for regulators to recognise this need and provide the “predictability, stability and attractive returns” needed for the investment to happen.
Iberdrola operates one of the largest electricity distribution systems in the world, serving more than 35 million people. In July, the company raised its profit forecast for 2023.
In its 2023–2025 investment plan, Iberdrola has allocated €47 billion, equivalent to two-thirds of its investment budget, to electricity grid activities.