How Iberdrola's CEO Built Europe's Clean Energy Giant
José Ignacio Sánchez Galán, known as Ignacio, stands as a pivotal figure in the global energy transition.
As Executive Chairman of Iberdrola, one of the world's largest and most valuable utility companies, his influence on sustainable energy development is unmatched.
Under his stewardship, Iberdrola has positioned itself as a leader in renewable energy, demonstrating that commercial success and environmental responsibility can coexist.
His journey offers valuable insights for executives navigating the complexities of decarbonisation whilst maintaining shareholder value.
When Ignacio assumed the role of Executive Vice-Chairman and CEO of Iberdrola in 2001, the scale of his forthcoming sustainability-focused transformation could scarcely have been imagined.
Born in Salamanca in 1950, his career began outside the energy sector at Sociedad Española del Acumulador Tudor, where he spearheaded international expansion.
His professional trajectory then progressed through telecommunications, serving as CEO of Airtel Móvil during Spain's sector liberalisation, and aerospace, where he chaired Eurojet and led Industria de Turbopropulsores from its inception.
However, it was at Iberdrola – where he became Executive Chairman in 2006 – that he would forge his legacy as a champion of sustainable energy.
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Transforming through renewable investment
Ignacio's leadership has driven Iberdrola to invest more than US$165bn in renewable energies, smart grids, energy storage and green hydrogen.
This commitment to sustainable infrastructure has transformed the company from a primarily Spanish utility into Europe's largest by market capitalisation, reaching approximately US$142bn. Iberdrola now ranks among the two largest electricity companies globally by market value, a testament to the commercial viability of prioritising clean energy.
The figures illustrate the magnitude of this sustainability-focused transformation. As of 30 September 2025, Iberdrola operated 45,263 MW of renewable capacity. The company supplies energy to nearly 100 million people across dozens of countries through subsidiaries including ScottishPower in the UK, Avangrid in the US and Neoenergia in Brazil.
Its workforce exceeds 42,200 employees and assets surpass US$175bn. This global footprint demonstrates the scale of operations required to deliver clean energy at pace.
The transformation from traditional utility to renewable energy leader has required sustained capital deployment over two decades. Ignacio's vision has consistently prioritised long-term sustainability over short-term returns, positioning Iberdrola as a benchmark for the sector.
Strategic priorities for decarbonisation
Iberdrola's Strategic Plan for the next three years allocates US$64bn in investments, with significant emphasis on electricity networks to support renewable integration.
The Bilbao-based firm plans to invest US$37bn in distribution and transmission infrastructure, primarily in the UK and US.
"The opportunities that the United States offers at the moment are great," he says on Bloomberg TV.
This represents approximately 70% of the network investment, targeting an average nominal return on equity of about 9.5% in new projects. The focus on grid infrastructure reflects recognition that renewable expansion requires modernised transmission capacity.
The renewables portfolio receives US$23bn, with 38% dedicated to offshore wind projects. Developments under construction include East Anglia TWO and East Anglia THREE in the UK, alongside Windanker in Germany.
By 2028, Iberdrola expects to exceed 60 GW of installed renewable capacity, with 75% already under construction or ready to build. Approximately 85% of production will be secured through long-term contracts and power purchase agreements, providing stability whilst advancing decarbonisation objectives.
Shaping global climate policy
Ignacio's influence on sustainability extends beyond corporate strategy into international climate policy. His standing in the global energy market was demonstrated at COP30 in November 2024, where he was among only 10 private sector figures invited to speak with world leaders at the conference's opening discussions. During these sessions, Ignacio outlined investment priorities in electricity grids, renewable energy expansion and storage technologies as mechanisms to advance climate objectives.
His participation in high-level climate talks has been consistent since Copenhagen in 2009, reflecting Iberdrola's sustained engagement with international environmental policy. Ignacio chairs the Electricity Cluster at the World Economic Forum and sits on the steering committee of the European Round Table of Industrialists.
He holds membership in the JP Morgan International Council, the Renewable Hydrogen Coalition and UNICEF's Generation Unlimited Global Leadership Council. His advisory roles include membership on the Massachusetts Institute of Technology's (MIT) Presidential CEO Advisory Board.
Recognition for Ignacio's sustainability leadership has been substantial. In 2019, the Harvard Business Review selected Ignacio as one of the five most important CEOs in the world and the first in the utilities sector.
Institutional Investor Research recognised him as Best CEO in the European utilities sector for twelve consecutive years. In 2014, Queen Elizabeth II appointed him honorary Commander of the Most Excellent Order of the British Empire for promoting the British energy sector.
More recently, in 2025, he received the Business Person of the Year award from UPF Barcelona School of Management. Time Magazine included him in its first TIME100 Climate list in 2023, recognising the most innovative leaders driving business climate action. Sustainability Magazine has also recognised both him and his company among the world's most influential in recent years.
However, Ignacio's tenure has not been without controversy. In 2022, he testified privately in Spain's High Court regarding an investigation into alleged corporate espionage and bribery between 2004 and 2017. The allegations involved payments to private security company Cenyt for intelligence operations against energy competitors and officials.
Now in its 125th year, Iberdrola faces both opportunities and pressures in the sustainability landscape. Electric demand in the US is projected to grow by as much as 50% between 2035 and 2050, driven by data centres, artificial intelligence and industrial electrification. Iberdrola's investments position it to address this demand growth through clean energy solutions. The company expects to reach US$19.9bn in earnings before interest, taxes, depreciation and amortisation (EBITDA) by 2028, with approximately US$22bn allocated to dividends between 2024 and 2028.
At 75 years old, Ignacio continues to advocate for accelerated electrification through renewables. "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."
For an industry grappling with the pace and scale of decarbonisation, Ignacio's quarter-century track record at Iberdrola offers a model demonstrating that sustainability and profitability need not be mutually exclusive. Whether this approach of substantial capital deployment in networks and selective renewable growth proves replicable across the sector remains an open question. However, Iberdrola's performance suggests the strategy could resonate with investors and customers seeking sustainable energy solutions at scale.
