Iberdrola has completed the acquisition of an 88% stake in Electricity North West (ENW), a UK-based electricity distributor. The transaction values ENW, including its debt, at around €5 billion.
This acquisition aligns with Iberdrola’s strategy to strengthen its network business in markets with strong credit ratings, such as the UK, which holds an AA rating. With the deal, the UK becomes Iberdrola’s largest market by network asset base, valued at €14 billion, surpassing the US, where it holds €13.3 billion in assets as of mid-2024.
ENW operates in a strategic location for Iberdrola, between the existing ScottishPower networks in central and southern Scotland, and Merseyside and North Wales. It distributes electricity to nearly 5 million people across the North West of England, including Manchester and the Lake District, through 60,000 kilometers of electricity distribution networks.
This acquisition enhances Iberdrola’s presence in the UK, making it the second-largest electricity network operator in the country. The company now serves approximately 12 million people across a network exceeding 170,000 kilometers and employs over 8,500 people in the UK.
Iberdrola has also entered into a shareholders’ agreement with a Japanese consortium led by Kansai, which will retain 12% of ENW’s capital, to collaborate long-term on this venture.
The transaction is subject to review by the UK Competition and Markets Authority (CMA) as per regulatory requirements for such deals.
Iberdrola’s Growth in the UK
Since merging with ScottishPower in 2007, the UK has been a major focus for Iberdrola’s investments. Recently, Iberdrola’s chairman, Ignacio Galán, announced plans to double its UK investments to £24 billion, with a focus on networks and renewable energy between 2024 and 2028. ScottishPower, now a fully green utility, is a cornerstone of this strategy.
Two-thirds of Iberdrola’s planned investment will be allocated to distribution and transmission networks, with increased transmission investments anticipated under the RIIO-T3 regulatory framework, set to be approved in 2026. This includes projects like the new Eastern Green Link 1 subsea interconnector.
ScottishPower remains one of the largest investors in renewables in the UK, managing distribution networks in Scotland, Merseyside, North Wales, and Cheshire. It operates over 111,400 km of power lines and 42 wind farms, including both onshore and offshore installations, with a total renewable capacity of 3,000 MW—enough to power more than two million homes with zero emissions.
As part of its continued growth, Iberdrola is constructing the 1,400 MW East Anglia 3 offshore wind farm. The East Anglia 2 project (960 MW) recently secured a Contract for Difference (CfD), which will involve an investment of around £4 billion (€4.8 billion). This project will supply enough clean energy to power nearly one million homes, alongside Iberdrola’s ongoing investments in onshore wind, solar PV, and battery storage projects.
