The company is starting out with 230 MW: 100 MW of operational wind power and 130 MW of photovoltaic under development, for the purpose of adding more green projects to the energy portfolio, up to 1,000 MW
Agreement between leaders: Iberdrola has brought a leading national partner on board to develop its renewable growth plan and asset rotation strategy in the country, while MAPFRE has stepped up its sustainable investments in Spain with a world leader in renewables.
Iberdrola and MAPFRE are collaborating closely in the energy area having signed a strategic alliance to make joint investments in renewable energies in Spain. The utility and the insurance company have set up a pioneering co-investment vehicle to achieve their goals, using 230 MW of green projects, both wind and photovoltaic, from the energy utility’s portfolio. The agreement foresees adding more operating assets, as well as new renewable energy development projects of the energy company’s portfolio, reaching 1,000 MW.
MAPFRE is the majority shareholder in the vehicle with an 80 percent stake, while Iberdrola holds the remaining 20 percent and is responsible for developing, building and maintaining the wind farms.
The 100 MW of operational assets are in Castilla y León split between two wind farms in Soria and Burgos. The 130 MW photovoltaic projects are in the development phase in Castilla-La Mancha, in the province of Guadalajara, and are scheduled for commissioning in the third quarter of 2022.
The alliance combines the strengths and skills of two leading companies, both of which are committed to the energy transition and the green economy as the road to recovery for industry and employment and to transform the industrial fabric of the country. Iberdrola has brought a partner on board to develop its renewable growth plan and asset rotation strategy in the country, while MAPFRE has been able to add to its sustainable investments in Spain with a world leader in renewables. To date, the insurance group has been making all these investments in alternative assets through real estate, infrastructure and private capital funds. At the end of last year, the Group finalized the closure of its first infrastructure fund with Abante for the sum of €300 million to invest in Macquarie Infrastructure and Real Assets (MIRA) funds, the world’s leading infrastructure group.
According to Ignacio Galán, the Chairman of Iberdrola, “the alliance illustrates the need to work together, with commitment and action, to lead the transition toward a low-carbon economy, drive reindustrialization and create jobs in our country. This urgent strategy has the backing of the European Union and bodies like the International Energy Agency. At MAPFRE, we have found an ideal partner to drive investments and projects in the technologies of the future, enabling us to build a stronger, more competitive and sustainable economy for all”.
Antonio Huertas, chairman and CEO of MAPFRE, says that “this alliance between leaders allows us to grow together and, in our case, to continue to diversify our portfolio in a low-interest rate scenario, and comply with our objective to boost investments with a positive impact on the environment. Meanwhile, we will continue on this road with our commitment to energy efficiency as an instrument for green growth based on a low carbon economy”.
This also represents a strengthening of the collaboration between Iberdrola and MAPFRE in the energy area: in January, they reached an agreement whereby the insurer’s sales network in Spain, comprising around 3,000 offices, supplies personalised and 100 percent renewable products from the energy company; the first alliance of this nature between an insurance provider and an energy utility in Spain.
Green investments to power the economic recovery
Iberdrola has been at the forefront of the energy transition for 20 years, acting as a driving force in the transformation of the industrial fabric and for a green recovery in the economy and the job market. To achieve this, the company has launched a historic €150 billion investment plan over the next decade, €75 billion by 2025, to triple renewable capacity and double network assets and take advantage of the opportunities of the energy revolution that the world’s leading economies are facing.
In Spain, it will invest €14.3 billion by 2025, most of which has been earmarked for an ambitious renewable and smart grid plan. The company is currently building 1,800 MW of photovoltaic and wind generation projects in the country and will have a portfolio of 12,900 MW by year end 2020. In Spain, the company leads the renewables sectors with an installed capacity of 16,700 MW, which its investment plan will increase to 25,000 MW by 2025.
After investing €120 billion in the last 20 years, Iberdrola is at the cutting edge of renewable energies, with almost 35,000 MW installed worldwide, a volume that makes its generation facilities among the cleanest in the energy sector.
With 98 grCO2/kWh emissions, which is already two thirds lower than the European average, the investment strategy in clean energy and grids will make Iberdrola a “carbon neutral” company in Europe by 2030.
Iberdrola is one of the world’s principal energy companies, a leader in renewables, and is spearheading the energy transition towards a low-emission economy. The group supplies energy to almost 100 million people in dozens of countries and operates its renewables, grids, and sales activities in Europe (Spain, the UK, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia, while maintaining platforms for growth in markets like Japan, Ireland, Sweden and Poland, among others.
With a workforce of more than 37,000 and assets of over €122.518 billion, it recorded turnover in excess of €33 billion and net profit slightly exceeding €3.61 billion in 2020. The company contributes to the maintenance of 400,000 jobs in its supply chain, with an annual procurement budget of €14 billion. A leader in the fight against climate change, Iberdrola has committed more than €120 billion over the last two decades to building a sustainable energy model based on sound environmental, social and governance (ESG) principles.
MAPFRE is a global insurance company with a presence on all five continents. A benchmark company in the Spanish market, it is the largest Spanish insurer in the world, the leading multi-national insurer in Latin America and is ranked sixth among the largest in Europe in Non-Life by premium volume. MAPFRE has almost 34.000 employees and, in 2020, its revenue was almost €25.5 billion.