Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), is reportedly looking to expand its stake in Spanish utility giant Iberdrola, reinforcing its commitment to strategic investments in the energy sector.
According to Spanish media reports, the QIA plans to increase its existing 8.8% shareholding in Iberdrola to over 10%.
This potential move signals the Middle Eastern gas powerhouse’s growing interest in maintaining a prominent position within Europe’s energy market.
As it stands, the QIA’s 8.8% stake, according to data from the London Stock Exchange Group (LSEG), makes it Iberdrola’s largest shareholder, surpassing both BlackRock (5.39%) and Norges Bank Investment Management (3.11%).
This increase would not only solidify Qatar’s role in Iberdrola but also exemplify its broader investment strategy aimed at energy diversification and sustainability.
Qatar’s interest in Iberdrola dates back to 2011, when the QIA secured a 6.16% stake in the Spanish utility. Over the years, the QIA has steadily increased its investment, reaching a peak stake of 9.7% in 2017.
Iberdrola, a global leader in renewable energy, offers a valuable opportunity for Qatar as it diversifies its own energy investments beyond natural gas, while leveraging Iberdrola’s strong position in Europe’s renewable energy sector.
Despite the potential increase in its shareholding, Qatar’s deeper involvement is not expected to impact Iberdrola’s day-to-day management significantly.
While there may be some influence on board appointments, the overall strategic direction of the company will likely remain unchanged.
The Spanish government, however, holds the right to intervene or impose conditions on foreign acquisitions involving significant stakes in key strategic companies, such as Iberdrola.
Iberdrola is a dominant player in Spain’s energy sector. In 2023, the company commanded a 22.4% share of Spain’s power generation market, outpacing rivals such as Enel SpA (15.4%) and Naturgy Energy Group (12.4%).
This leadership in renewable energy and power generation has positioned Iberdrola as an attractive investment for foreign stakeholders like Qatar, as the world shifts towards cleaner energy sources.
In addition to its power generation dominance, Iberdrola has also been at the forefront of green energy initiatives. One of its latest ventures includes a partnership with bp to develop a 25 MW green hydrogen project at bp’s Castellón refinery.
The project, expected to be operational by the second half of 2026, will be the first hydrogen venture undertaken by both companies through their joint venture, Castellón Green Hydrogen S.L.
The project underlines Iberdrola’s commitment to advancing clean energy technologies, with funding of €15 million awarded from the European Union’s NextGenerationEU initiative.
On the domestic front, Qatar is also taking significant steps to expand its renewable energy portfolio. Through QatarEnergy, the state has recently unveiled plans to develop a new solar power mega-project in the Dukhan area.
This initiative aims to double the country’s solar energy production, adding 2,000 megawatts (MW) to Qatar’s current capacity, bringing the total to 4,000 MW by 2030.
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, announced the project during a press conference in Doha. He noted that the solar power plant would play a crucial role in Qatar’s sustainability strategy and energy transition, helping to reduce carbon dioxide (CO2) emissions by over 4.7 million tons annually.
This expansion aligns with Qatar’s broader efforts to diversify its electricity production and reduce its reliance on natural gas, while also contributing to global climate goals.
The move to increase its stake in Iberdrola fits into Qatar’s larger strategic vision of becoming a key player in the global energy transition.
As countries worldwide shift away from fossil fuels towards renewable energy sources, Qatar is positioning itself as a crucial player not only in the production of liquefied natural gas (LNG) but also in clean energy technologies such as solar power and hydrogen.
Iberdrola, with its vast renewable energy portfolio, offers Qatar a strategic partnership that complements its renewable energy ambitions. The Spanish utility has long been recognised for its investments in wind, solar, and green hydrogen projects, making it a critical player in Europe’s clean energy landscape.
By increasing its stake, Qatar will not only secure a stronger foothold in a vital European utility but also benefit from Iberdrola’s expertise and innovation in renewable energy.
