Iberdrola: Electrification is essential for the industrial growth of the EU.

Electrification and significant grid investments are essential for promoting industrial growth in Europe, according to Ignacio Galan, CEO of Spanish utility Iberdrola, speaking at the European Round Table for Industry in Sweden.

Galan emphasized that electrification should be the "driving force for industrial growth and a cornerstone of a more self-reliant energy system." He highlighted the importance of enhancing electricity grids across Europe and improving cross-border connections between countries.

The European Commission plans to release an electrification action plan expected by early 2026, although it has faced delays and criticism regarding a previous plan. German Green MEP Michael Bloss also expressed discontent with the EU's energy crisis strategy for lacking a definitive electrification target.

Last week, Iberdrola obtained £150 million (€173 million) in funding from the UK energy regulator Ofgem to support major grid projects in Scotland via its subsidiary ScottishPower. In September 2025, Iberdrola revealed a significant change in its investment strategy, focusing on regulated grids in the UK and the US, with plans to increase investments by 30% during the 2025-2028 period.

The Spanish utilities association Aelec, of which Iberdrola is a member, has previously criticized the Spanish transmission system operator Red Electrica for insufficient investments in the transmission grid. According to Aelec, this underinvestment has resulted in "precariousness" in the grid, and the association proposed an "urgent investment mechanism" in February to support grid improvements.