Iberdrola, the Spanish public multinational with headquarters in Bilbao, Spain.
It is an electric utility company with businesses in electric generation, distribution, renewable energy, natural gas production, distribution and sale. It is Spain’s largest energy group by market capitalization and the global leader in wind energy. The company’s presence is focussed in the 5 countries of the Atlantic area – Spain, the UK, USA, Mexico & Brazil. Nearly 30% of its installed capacity is from renewable energy sources.
Iberdrola was formed on November 1, 1992 by the merger of Hidroeléctrica Española which started in 1907 and Iberduero which started in 1944. By the integration of Scottish Power and Energy East in UK & USA in 2007, Iberdrola expanded into international markets. However, it has a long line of failed acquisition and mergers both in Spain and in international markets like USA and Brazil. Iberdrola has 3 lines of business:
Wholesale and retail Business: The primary focus of this line is the unregulated/liberalised markets in Spain, Portugal, the UK, Mexico & Continental Europe. The primary objective for this line is increasing operational efficiency, to identify activities with growth potential as well as optimisation of organization.
• Global Networks Business: This line includes the transmission and distribution businesses in regulated markets globally including Spain, the UK, USA and Brazil to increase the quality & reliability of supply, optimize operating expenses and to identify business growth opportunities.
• Renewable Energy Business: This vertical takes care of the renewable sources of energy which Iberdrola owns.
• Other Businesses: This segment includes the construction company Ingeniería y Construcción which is one of the world’s largest power engineering companies with project management, turn-key project and operational support capabilities. Immobiliaria & Telecommunications are the other two unrelated businesses.
The ambitious offshore wind farm project located 14 km from shore - West of Duddon Sands Wind Farm was undertaken by Scottish Power a subsidiary of Iberdrola along with Dong Energy. The project costing £ 1.6 billion was completed in 2 years adding 389 MW capacity. Going ahead, Iberdrola anticipates to capitalize on the global increased power demand, through the investments in 2014-2016 in the UK, USA, Latin America and Spain for capacity improvements and new onshore and offshore renewable energy projects.