In November last year Iberdrola announced the adoption of ScottishPower. This friendly transaction with a value of € 17.1 billion was completed last week. Chairman of Iberdrola Mr. Ignacio Galán expressed his satisfaction at the closing of the transaction, which “marks a major milestone in the 100-year history of the company with the birth of one of the largest electricity companies in the world”.

The combination consolidates Iberdrola’s position in large scale hydropower, and it reinforces the group’s share in wind power. ScottishPower added almost 2,000 MW of wind capacity to the 5,000 MW of Iberdrola, an increase of 40%.

Since the announcement of the integration of ScottishPower and Iberdrola, the new group has shown a significant growth. In the first quarter of 2007, the enterprise value rose to more than € 67 billion. The electricity production by the new group rose by 6.6% to 24,750 GWh.

The new company has big plans for the coming years. It plans to reach 7,000 MW installed capacity of renewable electricity generation technologies by 2009, and to surpass 10,000 MW of renewable power capacity by 2011. Its strategy is to continue to invest in proven renewable energy technologies such as wind farms, and to increase its investment in technologies like wave energy, biomass, and biofuels. Over the next three years Iberdrola plans to invest € 3.25 million in renewable energy.

Between 2007 and 2009, the combined company plans to expand its overseas business and has already acquired the firm CPV Wind Ventures LLC to enlarge its presence in the wind energy market in the United States. Furthermore, the company has signed an agreement with the API Group to develop wind farms, has raised its stake in the Greek company Rokas to 52.7%, and has begun the construction of two wind farms in France.

Iberdrola is already building a pioneering biomass plant in Corduente, in the Spanish province of Guadalajara. This will be the first power plant in Spain that uses forestry waste. In Barcial del Barco, Zamora province, the company will build a bioethanol production plant.

Iberdrola-ScottishPower mainly operates in Spain, the UK, continental Europe and the United States.

More information:

Press Release ScottishPower in pdf