Iberdrola Unloads 2.6 GW of Mexican Generation to Finance €55 Billion Network Expansion

Iberdrola Unloads 2.6 GW of Mexican Generation to Finance €55 Billion Network Expansion

(IN BRIEF) Iberdrola will sell 2.6 GW of power generation assets in Mexico—comprising 15 plants and development projects—at US $1.6 million per MW, with up to US $4.2 billion in contingent payments tied to future project completions. The transaction, together with a recent capital raise, funds the company’s plan to invest €55 billion in its transmission and distribution businesses in the U.S., U.K., Brazil, and Spain, aiming to grow its regulated asset base from around €45 billion today to €90 billion in the coming years. This follows ScottishPower’s €5 billion purchase of Electricity North West and underscores Iberdrola’s focus on regulated networks. Regulatory clearances are pending.

(PRESS RELEASE) BILBAO, 1-Aug-2025 — /EuropaWire/ — Iberdrola has entered into a definitive agreement to divest 15 power plants totaling 2.6 GW of installed capacity in Mexico, along with the associated commercial operations and a pipeline of planned generation projects. This transaction, structured at a valuation of US $1.6 million per operating megawatt, supports the company’s commitment to invest €55 billion in its electricity transmission and distribution network subsidiaries—primarily Avangrid Networks in the U.S. and ScottishPower Energy Networks in the U.K.

Alongside the recent capital increase, the proceeds from this sale ensure Iberdrola has the funding necessary to nearly double its regulated asset base to €90 billion over the next few years. The deal covers 1,368 MW of combined‐cycle and cogeneration facilities and 1,232 MW of wind and solar assets, with additional payments of up to US $4.2 billion contingent on the completion of the development projects that the buyer intends to bring online under Mexico’s new generation incentives.

This move follows Iberdrola’s 2024 acquisition of Electricity North West by ScottishPower for €5 billion, reinforcing its strategy to bolster regulated networks across its core geographies—including Brazil’s Neoenergia and Spain’s i-De. The agreement remains subject to customary regulatory approvals in each jurisdiction.

Media Contact:

Corporate Communication (contact for Media)
Tel.: +34 91 784 32 32
Mail: comunicacioncorporativa@iberdrola.es

SOURCE: IBERDROLA

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