Iberdrola to divest Mexican assets for $4.2 billion

MEXICO CITY, July 31, 2025 – Iberdrola has agreed to sell 15 power plants and related operations in Mexico for USD 4.2 billion, the company said on Thursday.

The transaction includes 2.6 GW of installed capacity across 1,368 MW of combined cycle and cogeneration plants and 1,232 MW of wind and photovoltaic assets, along with commercial operations and a portfolio of development projects.

The buyer, which has not been identified, intends to operate these assets under Mexico’s new generation frameworks. The deal is based on a valuation of USD 1.6 million per MW and remains subject to regulatory approval.

The move supports Iberdrola’s plan to invest EUR 55 billion in electricity networks in the US, UK, Brazil and Spain, aiming to nearly double its regulated asset base to EUR 90 billion. The group said its recent capital increase, combined with cash flow and liquidity, secures the resources needed to meet these targets.

Iberdrola is a global energy group headquartered in Spain focused on electricity generation, transmission and distribution. It operates through subsidiaries including Avangrid in the US, ScottishPower in the UK, Neoenergia in Brazil and i-De in Spain, with a strong emphasis on renewables and grid infrastructure.

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