Iberdrola’s Investment in Mexico Dropped by 38% During 2022

In 2022, Iberdrola’s investment in Mexico’s renewable energy sector fell 38% compared to 2021. However, at an international level the Spanish company increased its investments by 13% as its revenue ticked up by 11.7%.

According to a report by the energy giant, at the end of 2022 investment for renewable energy in Mexico stood at US$16.4 million, 38% less than in 2021 when it invested US$26.5 million. However, investments started to tail off earlier, since in 2020 Iberdrola reported investments for US$256 million. It was during this period that relations between the Spanish company and the Mexican Government soured due to President Lopéz Obrador's controversial energy policy, which privileged state companies over private ones. The president furthermore took aim at the company in his morning press conferences.

At the close of 2022, Iberdrola reported an installed capacity of 1,335MW in Mexico, the same as in 2021. Nonetheless, onshore wind energy production grew by 7.1% and solar photovoltaic energy rose by 4.1%.

In 2022, Iberdrola’s assets in Spain fell by 20% as a result of the European energy crisis. In addition, the Spanish government launched a windfall tax on Spain’s largest banks and energy companies including Iberdrola, Endesa and EDP as a response to the extraordinary profits they generated on the back of the Ukraine war. Ignacio Galán, President, Iberdrola, qualified this measure as discriminatory and pointed out that the company’s legal department is already taking action to defend the interests of shareholders.

Despite this situation, the Spanish company’s revenues climbed by 11.7%, reaching US$4.5 billion at the end of 2022. Galán stressed this was possible thanks to strong growth in the US and Brazil, which helped the company offset weaker market performances in Europe linked to the region’s energy crisis.

During 2022, Iberdrola’s investments increased by 13%, reaching US$11.3 billion. Of this amount, 38% went to the EU, with about US$3.1 billion being allocated to Spain, and US$1.2 billion to other countries like Germany, France and Portugal. Moreover, 25% went to the US, 20% to Latin American countries and 13% to the UK. As a result of these investments, Iberdrola marked 40,000MW of installed renewable power capacity. An additional 7,675MW will be operational in the next four years, of which 3,500MW will be powered by offshore wind energy sources.