Iberdrola has signed two agreements to acquire 17 photovoltaic projects in the UK, according to an emailed statement accessed by Bloomberg. The projects are in an advanced stage of development, with a total capacity of 800 megawatts and start-up will require an investment of around £500 million (about €600 million).
The company headed by Ignacio Sánchez Galán made the purchases through its British subsidiary ScottishPower. The acquisition has been signed with Elgin Energy, which owns 12 projects, and with Lightsource BP, which controls the rest. Through these operations, Iberdrola’s share of the UK solar market will increase from 2% to 9%.
The increased demand for energy fueled Iberdrola’s profits, which benefited from selling renewable energy at higher prices. Earnings before interest, taxes, depreciation and amortization (ebitda) increased 11% in the first nine months of 2021.
In total, Iberdrola’s net profit, at 2,410 million euros between January and September last year, is 10.2% lower than the same period in 2020, due to the impact on UK tax deferrals and an exceptional decline last year, when it sold its stake in Siemens Gamesa for 485 million euros. The higher electricity prices, which generated higher income in the sale of renewable energy, were offset by the lower selling margin. Iberdrola maintains that it generally takes a hit from the higher prices.
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