Iberdrola narrowly avoided a near total disruption in Mexico, surviving a dramatic 80 percent risk of exit and emerging with strengthened footing in one of its most pivotal markets. The move, a high-stakes deal valued at approximately 5.5 billion euros, is set to reshape the company’s presence in Latin America while reinforcing its growth trajectory in Europe and North America. Analysts expect the agreement to become clearer as closing formalities unfold later this year, and the executive team described the arrangement as carrying significant value for 2023 and beyond.
The leadership outlined that the arrangement unlocks immediate opportunities to accelerate expansion in Europe and the United States, while keeping Mexico and Brazil as central arenas for long term strategy. The group’s chief financial officer, Jose Saiz, clarified in a meeting with analysts that the firm would periodically reevaluate its renewables program in the United States as part of a broader, measured growth plan. He emphasized a disciplined approach, reinforcing confidence that the company would align investments with policy signals and market dynamics in key regions.
During the conference, analysts highlighted the scale of the position, noting that Iberdrola currently manages roughly 8,436 megawatts of capacity with about 7,000 MW tied to government concessions that begin maturing from 2027 onward. A smooth transition with the Mexican government stands out as a crucial element of the agreement, underscoring how regulatory certainty can help secure ongoing development and investment. Executives noted that this marks a new phase in the company’s relations with the state, potentially opening doors to additional collaboration and favorable policy alignment in the coming years.
The financial manager explained that the deal does not commit to any future outright power purchases. Instead, a memorandum of understanding was signed to maintain a constructive dialogue between the government and Iberdrola, ensuring that the relationship remains collaborative even as market conditions evolve. The company has been clear that it would be glad to invest further in Mexico if policy and commercial terms remain favorable, but there is no special arrangement guaranteed beyond the agreement reached.
As discussions progressed, Iberdrola urged observers to monitor how the Mexican administration shapes its renewable energy agenda, noting that new policies could influence project timelines and investment priorities. The leadership referenced Mexico’s stated intent to bolster renewable capacity and highlighted an opportunity for the country to position itself as a key energy hub near the United States, potentially reshaping regional energy flows as markets in North America diversify away from dependence on any single supplier. The executives suggested that advances in infrastructure and industry development would be necessary to meet growing energy demand, and they indicated openness to initiating fresh investments once policy directions become clearer.