Felipe Montero
2023 – Reliability is key: Why Iberdrola is focusing on clear expansion paths
With Baltic Eagle on the grid and the investment decision for wind anchors, Iberdrola will build in 2024 at the largest offshore wind hub in the German Baltic Sea. For Felipe Montero, it's clear: The expansion will only succeed with stable political goals, predictable tenders and industrial policy support.
Mr. Montero, 2024 was all about implementing the expansion goals of the traffic light coalition government. What role do these goals play in your work on the "Baltic Hub" with three Wind farms in the Baltic Sea?
"Reliable expansion targets are essential for our business. In 2024, we launched Baltic Eagle completed and invested in wind anchors – making Iberdrola the largest offshore developer in the German Baltic Sea. Our Baltic Hub will produce over 2026 gigawatts from 1,1 and around 4 Billions Euro investments. This strengthens security of supply, Value creation and employment. Political clarity is essential for this – Premature target debates jeopardise investor and supply chain confidence."
Iberdrola is active in many countries. What is going particularly well in Germany – and where Do you see any catching up to do in order to efficiently achieve the legally defined goals?
"Germany remains a key market for Iberdrola with great potential. To increase the attractiveness To secure the location, bilateral contracts for difference are now needed, so-called CfDs. A reliable tender design prevents speculative bids, reduces costs and strengthens competition. The Federal Government should act quickly to ensure the positive effects to use early."
Where do you currently see the greatest risks for further expansion and Project implementation?
"In recent years, Germany has made considerable progress in developing Offshore wind energy has been achieved. However, we must not rest on these successes or reduce their ambitions. If we look at other countries, we see how quickly the tide can turn and investor interest can quickly wane. We therefore look with some concern at the emerging debate on targets and the proposals for high development and peak capping. The calculation here falls short: A lower Expansion of offshore capacity will always lead to lower energy yields. But we need every kilowatt hour."
What is your wish for politicians to make the expansion path as efficient and predictable as possible? do?
"Clarity and reliability are crucial for investment and offshore development. What is needed are secure expansion targets and a stable financing framework through bilateral CfDs, reduce risks and costs. Our appeal to the federal government: OOffshore wind must remain a priority. For the benefit of Germany as a business location."
What was also important in 2024:
- 2,6 GW of offshore wind power will come into operation in Europe
- In Germany, 718 MW will be newly connected: 476 MW Baltic Eagle and 242 MW Gode Wind 3 will be connected to the grid
- Tender winners: 5.500 MW go to RWE, Total Energies, Luxcara
- New area development plan: change of direction in favor of areas with lower installed capacity and higher yield