The Chairman of Iberdrola, Ignacio Galán, met in Washington with the U.S. Secretaries of State for Energy and Commerce, Steven Chu and Gary Locke. During these meetings, Galan announced the intention of the Company to invest $6 billion in the U.S. by 2012.
Of this figure, 65% – $3.9 billion — will be devoted to the construction of new wind farm plants in the U.S., where Iberdrola Renovables, the world leader in renewable energy, is already the second largest wind turbines producer with 4,700 megawatts (MW) of installed wind power capacity. This will be possible, in part, thanks to incentives/grants awarded to the Company by the U.S. government, amounting to $1.0 billion.
The remaining investment of $2.1 billion will be assigned to improving the quality of supply to the 2.4 million customers Iberdrola has in the country. In the past three years, the Group has improved by 10% the electrical service provided to them.
Ignacio Galán thus communicated to Steven Chu and Gary Locke Iberdrola’s commitment to the United States. Iberdrola’ businesses now account for 16% of Group Ebitda, which in 2010 amounted to €7.528 million. The Company is present in 23 states, provides jobs for a total of 25,000 professionals in the country, of which 5,000 correspond to direct contracts and 20,000 to indirect ones.
Additionally, the Iberdrola Group has procured $5.5 billion worth of goods and services from U.S. corporations annually, and has paid $400 million in taxes each fiscal year. At present, the Iberdrola Group has assets based in the U.S. with a value of $31 billion which equates to 25% of the Group’s total value.
During his meetings with U.S. Government Department Secretaries, the Chairman of Iberdrola mentioned the high interest in his company expressed by U.S. investors who represent 15% of the Group’s shareholder base. This is due in large measure to the solid investment returns that the Group has offered to its shareholders which totalled 158% in the last decade.
U.S.-Based Iberdrola Projects
The U.S. state of Maine contains one of the most important projects that Iberdrola has in progress in the U.S. consisting of the 800 kilometers electrical transmission line between the U.S. and Canada, and requiring an investment of $1.4 billion.
This project will employ up to 3,000 people during its construction phase and generate $25 million annually in tax revenues for participating townships and $18 million annually for the state of Maine when completed. Furthermore, this transmission line will save $7 million worth of lost power each year and facilitate additional renewable energy generation.
Based on its commitment to quality as a leading energy supplier, Iberdrola will also develop an intelligent network which will benefit 620,000 clients through its subsidiary, Central Maine Power (CMP). Iberdrola will dedicate $166 million to building this project of which $96 million will be financed through U.S. Department of Energy grants.
Iberdrola Renovables is the company that has installed the most renewable energy in the United States in recent years representing 11% of U.S. installed wind power, with more than 25,000 MW in the U.S. representing 40% of its total portfolio.