Avangrid, the US subsidiary of Iberdrolaplans to invest $14.6 billion (about 14,787 million euros) until 2025, including the acquisition of PNM Resources, according to data offered by the group on the occasion of its Investor Day.

Specifically, the US energy company will invest that total figure in the next three years, of which the majority, some 12,800 million dollars (about 12,964 million euros) will be allocated to the Networks business, thus absorbing 88% of investments in the period.

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For its part, the business of Avangrid Renewables will allocate a total of 1,800 million dollars (about 1,823 million euros), mainly to offshore wind, with 1,200 million dollars (about 1,215 million euros).

This total investment figure for the period includes the slightly more than 6,500 million dollars (about 6,583 million euros) that the purchase of PNM Resources, operation that was blocked by the New Mexico Regulatory Commission at the end of 2021, a decision that the company appealed and that it trusts to be able to close throughout the coming year.

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In fact, earlier this year, following the decision of the New Mexico Regulatory Commission, Avangrid and PNM Resources agreed to a new merger schedule, giving each other a new deadline until April 2023 to close the operation.

PNM Resources would be the largest purchase in the United States of the Spanish energy company and the second in its international expansion, after that of Scottish Power, the British group acquired in 2006.

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Excluding this operation, the group investment plan for the next three years it would be about 8,100 million dollars (about 8,210 million euros).

Avangrid foresees an annual growth rate of between 6% or 7% in the next three years, including PNM resources”

With regard to its adjusted net profit per share, Avangrid expects a annual growth rate between 6 and 7% in the next three years, including the resources of PNM, according to the figures communicated by the subsidiary of the group chaired by Ignacio Sánchez Galán.

Likewise, it has confirmed its forecast of adjusted net profit per share for 2022 in a range of 2.20-2.38 dollars (about 2.23-2.41 euros) per title.

The CEO of Avangrid, Pedro Azagra, indicated that the company is “driven by its commitment to execution, growth and value creation”, highlighting that the business combination of regulated businesses and renewable energy contracts “It is one of its main differentiators”.

“In the coming years, we plan to strengthen our position with a disciplined investment plan of approximately 15,000 million dollars until 2025, 8.1 billion without PNM resources. Through our Networks business, we are working to modernize the network and further integrate clean energy into the system. We are also one of the leading renewable energy companies by installed capacity and we lead the way in the development of offshore wind energy, which is a fundamental step in the energy transition,” he added.

Consolidation of onshore and offshore wind business

Additionally, the company noted that it is optimizing its onshore and offshore wind assets and strengthening its balance sheet through asset turnover and partnerships. It also aims to achieve carbon neutrality in scope 1 and scope 2 emissions by 2030.

In this sense, Avangrid already announced a few days ago the consolidation of its wind business offshore Y offshore to maximize human capital, supply chain synergies and experience in project execution.

In this way, Avangrid has advanced its ‘road map’ to 2025. Iberdrola will launch its new strategic plan next November 9at its Capital Markets & ESG Day, to be held by the energy company in London, after it was postponed in March due to the uncertainty caused by the outbreak of war in Ukraine following Russia’s invasion at the end of February.

In its Networks business, Avangrid has assets worth approximately 12,000 million dollars (about 12,168 million euros)which expects to increase to 20,000 million (about 20,280 million euros) in 2025, including organic and inorganic growth.

Iberdrola is present in the United States for 15 yearsand has assets that exceed 40,000 million dollars (about 40,558 million euros) in 24 States, serving a population of more than seven million people.

Iberdrola’s US subsidiary began trading on the New York Stock Exchange six years ago, is present in 25 states and manages more than 9,000 megawatts (MW) of generation capacity (8,000 MW renewable) and more than 170,000 kilometers of power lines through eight public service companies in New York, Connecticut, Maine and Massachusetts, serving a population of seven million people, with 3.3 million supply points.

Furthermore, it is pioneer in the development of offshore wind power in the United States, where it is building the first large-scale offshore wind project in the country, Vineyard Wind 1, and has a portfolio of nearly 5,000 MW in this technology thanks to the Park City Wind projects in Connecticut; Commonwealth Wind, in Massachusetts; and Kitty Hawk, in North Carolina.