How Iberdrola is Building Global Energy Infrastructure
José Ignacio Sánchez Galán, widely known as Ignacio, stands as a central figure in the energy sector. As Executive Chairman of Iberdrola, he oversees a vast portfolio of built assets and infrastructure projects that position the firm as one of the largest utility companies globally.
His guidance has seen Iberdrola establish a significant footprint in the built environment, developing a portfolio of renewable assets that rivals major competitors.
While Ignacio began his career outside the energy sector, his path to becoming a key architect of European infrastructure development is notable. Born in Salamanca, he initially led international expansion at Sociedad Española del Acumulador Tudor before moving into telecommunications as CEO of Airtel Móvil.
He also chaired Eurojet in the aerospace sector. However, it was his arrival at Iberdrola in 2001 as Executive Vice-Chairman and CEO, and his subsequent elevation to Executive Chairman in 2006, that marked the beginning of a major construction and development era for the company.
Under Ignacio's leadership, Iberdrola has invested more than US$165bn in renewable energies, smart grids, energy storage and green hydrogen.
At the close of several quarters in 2025, the company operated 45,263MW of renewable capacity, supplying energy to nearly 100 million people via subsidiaries such as ScottishPower in the UK and Avangrid in the US.
Investing in grid infrastructure
The forward-looking strategy for the Bilbao-based firm involves significant capital expenditure in physical infrastructure. Iberdrola’s Strategic Plan for the coming three years outlines US$64bn in investments, with a distinct pivot toward electricity networks.
The organisation plans to invest US$37bn specifically in distribution and transmission infrastructure, with a primary focus on the UK and US markets.
"The opportunities that the United States offers at the moment are great," Ignacio says on Bloomberg TV.
This allocation represents approximately 70% of the total network investment, aiming for an average nominal return on equity of about 9.5% for these new construction projects. The renewables portfolio is set to receive US$23bn, with 38% of this figure dedicated to offshore wind developments.
Major infrastructure projects currently underway include East Anglia TWO and East Anglia THREE in the UK, alongside the Windanker project in Germany. By 2028, the company anticipates exceeding 60GW of installed renewable capacity, with reported figures suggesting 75% is already under construction or ready to build.
Driving global infrastructure growth
Ignacio maintains a high profile within the discussion of global infrastructure development. His role in the sector was highlighted at COP30, where he discussed investment priorities in electricity grids and storage technologies with world leaders.
He serves as chair of the Electricity Cluster at the World Economic Forum and sits on the steering committee of the European Round Table of Industrialists.
Recognition for this focus on development has come from various quarters. In 2014, Queen Elizabeth II appointed him an honorary Commander of the Most Excellent Order of the British Empire for his work promoting the British energy sector. More recently, Time Magazine included him in its 2023 TIME100 Climate list.
However, his tenure has faced scrutiny. In 2022, he testified regarding an investigation into alleged corporate espionage involving the private security company Cenyt, though the company continues to focus on its operational goals.
Future demand and construction
Looking ahead, the demand for energy infrastructure appears robust. Projections suggest electric demand in the US could grow by up to 50% between 2035 and 2050, driven by the construction of data centres to support artificial intelligence and broader industrial electrification.
Iberdrola positions its asset base to capitalise on this projected growth.
Ignacio continues to push for rapid development of the necessary infrastructure.
“We need to accelerate the expansion of electrification through renewables to reduce our dependence on fossil fuels,” he says.
“Tripling renewables by 2030 is feasible and will mobilise investments of US$2.4tn a year.”
As the industry faces the logistical challenges of the energy transition, the strategy of heavy capital deployment in networks and selective renewable construction projects presents a specific model for sector growth.
Whether this approach of massive infrastructure investment yields the expected long-term returns remains a focal point for investors, yet the current trajectory suggests a continued expansion of the physical energy landscape.
