How Iberdrola is Leading the World on Sustainable R&D

Iberdrola , one of the world's leading energy companies and Sustainability Magazine's most sustainable company of 2024 , has been recognised as the top private utility for Research and Development (R&D).
The Spanish company has achieved this accolade in 2022, 2023 and 2024.
This achievement, first announced via the European Commission 's 2024 Industrial R&D Investment Scoreboard, highlights the company's allocation of €384 million (approximately USD 411 million) to R&D activities in 2023.
The recognition comes as the European Commission evaluates the 2,000 largest companies worldwide, with Iberdrola standing out for its commitment to advancing sustainable energy solutions.
The company, led by Chairman Ignacio Galán , has positioned innovation as “the main tool for guaranteeing the sustainability, efficiency and competitiveness of the electricity company,” according to a statement released upon the announcement of the accolade.
Iberdrola's five-year plan
Iberdrola has committed to doubling its R&D investments by 2030, aiming to exceed €4bn (US$4.3bn) over the next decade.
These resources will primarily fund projects in renewable energy, smart grids, digital transformation and customized solutions for consumers.
“This seeks to accelerate electrification, addressing not only the climate crisis, but also improving energy security, competitiveness and sustainable job creation throughout the value chain,” Iberdrola says in its statement.
The company's investments are driven by its broader goal of decarbonising the energy sector while ensuring long-term energy security.
By integrating new clean and efficient technologies, Iberdrola has established itself as a key player in the global transition to renewable energy.
How Iberdrola is leading the global energy sector
At the forefront of Iberdrola’s initiatives is the Global Smart Grids Innovation Hub, located in Bilbao, the heart of the Basque Country, where the company is based.
Described as “an international benchmark,” the hub combines Iberdrola’s technological capabilities with the expertise of over 100 collaborating entities, including suppliers, universities, technology centres and start-ups.
According to Iberdrola itself, the centre serves as a “driving force for innovation,” fostering solutions to the challenges of electrification and attracting strategic suppliers and international talent, all with the aim of strengthening the global energy ecosystem.
In its work on smart grids, Iberdrola continues to integrate digitalisation and artificial intelligence into its energy distribution infrastructure.
The company says this approach will help “increase security and quality of supply” while supporting the broader energy transition. Investments like this are what has earned the organisation the top investor accolade three years running.
Renewable energy and advanced technologies
Iberdrola is also focusing heavily on renewable energy storage, particularly through pumped hydroelectric systems, which it describes as “the most efficient and mature system for storing energy on a large scale.”
The Tâmega gigabattery in Portugal, one of the most significant energy storage projects in Europe over the last 25 years, underscores Iberdrola's leadership in this area.
The company has also intensified its efforts in offshore wind energy, with projects under development in countries including the United Kingdom, France and Germany.
This expansion includes exploring deeper offshore sites, which offer greater wind potential and energy generation capacity.
Then, there's the company's investment in hydrogen, which has often proved to be an complicated and elusive energy source. Iberdrola's green hydrogen site is one of Europe's most advanced and its success attests to the company's ambition.
Additionally, Iberdrola is investing in innovative approaches such as recycling wind turbine blades and agrovoltaics, which combine renewable energy production with agricultural and livestock practices.
Investment in talent, as well as capital
Supporting its technological advancements is Iberdrola’s Innovation and Training Campus in San Agustín del Guadalix near Madrid.
Spanning 180,000 square metres, the campus is described as “the global centre for the company's knowledge, innovation and employability.”
With nearly 13,000 people trained annually, the campus plays a crucial role in fostering a culture of creativity and collaboration.
Iberdrola emphasises its commitment to “technology, R&D and collaboration with technology centres as levers to lead the energy transition, the green recovery of the economy and the employment and employability of young people and senior professionals in sectors of the future.”
Through these combined efforts, Iberdrola is demonstrating its leadership in the energy transition while addressing broader economic and social challenges.
The company’s sustained investment in innovation reflects its belief that sustainability, efficiency and competitiveness go hand in hand.
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