Spanish wind energy group Iberdrola plans to invest 75 billion euros ($88 billion) in its renewable energy production, grids and retail operations by 2025 to capitalise on growing global demand for clean power, it said.
Countries and companies the world over are seeking to cut emissions to combat climate change, buoying renewables-focused companies including Iberdrola.
Pursuing the opportunities created by the “energy revolution” facing the world’s major economies should help to boost net profit by more than 40% from 2019 to 5 billion euros in 2025, Iberdrola said.
Shares rose throughout morning trade and were up 3.1% on the day at 1300 GMT, outperforming a positive Spanish stock index and taking Iberdrola's gains so far this year to around a quarter. It has become Spain's second biggest company after Zara owner Inditex.
For years, renewable companies have struggled to generate big profits, while fossil fuels have provided easier margins, but as COVID-19 lockdowns have hobbled energy use and hammered oil and gas markets, the investment focus has been transformed.
Oil and gas companies, including Royal Dutch Shell, BP and Total, are moving towards renewable power, but Iberdrola's new spending plan eclipses their combined planned investments in low carbon.
Other utilities are joining Iberdrola in building green capacity and wind energy is set to reach record growth globally over the next five years.