Iberdrola increases R&D spending

The focus of the extra R&D spending was directed to offshore wind power, smart grids, clean generation and new technologies and business models for the company that has been acknowledged as the most innovative Spanish utility and the fourth most innovative in Europe, according to rankings drawn up by the European Commission.

Since 2008, Iberdrola SA has already invested over €40m on technological start-ups that ensure the future sustainability of the energy model. With their investment of €159m in the field of R&D in 2013, this equates to a 10% increase on the previous financial year. The company announcement states that with an “unwavering commitment to remaining at the forefront, they have become a benchmark in this field.”

The company reports that their commitment to R&D is also reflected in their support to technology-based entrepreneurs and companies through the €70m Perseo venture capital scheme. During 2013, the Perseo portfolio was expanded to include the firm ‘Stem’ based in Silicon Valley, intended to develops solutions to improve energy efficiency at facilities belonging to retail and industrial customers, also included was the Spanish firm Arbórea Intellbird, which focuses on the manufacture of unmanned aerial vehicles.

It is in the field of renewable energies that Iberdrola SA can rightly claim to be amongst the world leaders and it is within this sector that they set up various offshore projects last year. Some of the most important of these projects include: ‘Innpacto Emerge’ and ‘Aqua Ventus’, which focus on the development of floating platforms in deep waters; ‘Cenit Azimut’ and ‘EERA Dtoc’, geared towards optimising the development of offshore windfarms; the ‘Low Impact’ initiative, which aims to promote gravity foundations for installation at intermediate depth or the ‘Offshore Wind Accelerator’, a special programme run by the UK Carbon Trust to find solutions that allow reductions with the costs and risks associated with this technique.

In their outlook for 2014-2016 Iberdrola SA are planning for €9.6bn of investments, €4.4bn of which will be committed to growth. Twenty two percent of this investment will be in renewables and significantly, the largest share (41%) will be in the UK. Their UK offshore wind portfolio includes a 50% share (along with DONG Energy) in the 389MW West of Duddon windfarm in the Irish Sea through their subsidiary company ScottishPower Renewables. The West of Duddon project passed a milestone in January this year when the first energy was generated. Growth drivers for the period 2014-2016 include new capacity in renewables in UK, USA, Mexico and Brazil.

By Peter Barker