Iberdrola Renovables is to invest around EUR9 billion in the US renewable energy market over the next four years as part of a major international expansion strategy.
The Spanish renewable energy company has outlined its 2008-2012 strategic plan, under which it plans to invest EUR18.8 billion to consolidate its position in the world’s renewable energy markets.
The plan envisions a major international expansion across all renewable energy technologies. It plans to achieve a net profit of EUR1 billion in 2012, up from an estimated EUR400 million in 2008.
The Spanish firm is ranked as the world’s largest wind energy company and says that investment in wind projects will take the lion’s share of its planned investments. It has already lined up wind power project sites for the next seven years and turbine supplies for the next five with contracts totalling 10 000 MW.
Three-quarters of Iberdrola Renovable’s planned investments are earmarked for international expansion. Half of all investments will be in the USA and a quarter in Europe outside Spain. The company will also invest EUR800 million in gas storage in the USA.
Iberdrola also plans to boost its presence in the mini-hydro market, where it will increase its installed capacity from 350 MW to 450 MW in 2012. It is also planning construction of five 250 MW solar thermal plants and three 50 MW biomass plants.
The company’s overall goal is to increase its installed capacity of renewable energy to 13 500 MW by 2010 and 18 000 MW by the end of 2012. Reaching these goals will allow Iberdrola Renovables to increase its net profit to EUR800 million by 2012, similar to that of parent company Iberdrola Group in 2001.
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