Global energy and electricity provider Iberdrola announced plans today for a major electrification-focused investment program, pledging to allocate €41 billion in its network and renewable energy from 2024 through 2026, and to hire 10,000 people.

The investment plans were announced as part of a strategic update by Iberdrola Executive Chairman Ignacio Galán at the company’s Capital Markets Day on Thursday, noting that the “electrification of energy is unstoppable and will expand exponentially in the years ahead, supporting decarbonisation, boosting energy security, and reducing the volatility caused by fossil fuels.”

The strategic plan includes a significant focus on network-based growth, which represents 60% of the planned investments, of which approximately two-thirds will target distribution, and one-third to transmission. Iberdrola estimated that the investments will result in an increase in its network asset base of 38% in 2026, and improve its geographical diversification, with more than 40% of the investment anticipated to be allocated to the U.S.

The company’s network expansion plan comes as investment in grids is seen as a key component to enabling the achievement of global climate goals. According to a recent report by the International Energy Agency (IEA), 80 million kilometers of power lines will need to be added or replaced globally by 2040, roughly equal to the entire global grid today, with investment doubling to over $600 billion per year by 2030, in order to remain on track to achieve the Paris Agreement goal to limit temperature rise to 1.5 °C, and to keep up with the increasing deployment of new renewable energy capacity.

The plan also anticipates investments of more than €15 billion in renewable energy, with more than half allocated to offshore wind projects in the US, UK, France and Germany.

The investments also include €2.8 billion for the previously announced acquisition by Iberdrola of the 18.4% of its US subsidiary Avangrid that it does not already own, with €5 billion of the renewables spend to be contributed by partners in projects already identified. Net of these factors, anticipated investment by region from 2024-2026 include 35% to the U.S., 24% UK, 15% Iberia, and 15% to Latin America, with the remainder in Germany, France, Australia and other areas.

Galan added:

“Our strategic pillars focus on networks, geographical diversification, and a balanced energy and customers mix. This plan will allow us to grow our asset base, grow our profitability and strengthen our finances, as well as increasing dividends and driving jobs and skills and economic growth.”