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Brussels gives green light to joint business venture between BP and Spanish energy giant
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Brussels gives green light to joint business venture between BP and Spanish energy giant

The British Petroleum news comes as Iberdrola announced an upward revision of its economic forecasts which point to a new record net return of around five billion euros

Manu Alvarez / Olatz Hernández

Madrid

Friday, 27 October 2023, 13:49

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The European Commission has given the green light to a joint business venture between Iberdrola and British Petroleum to install, operate and maintain electric vehicle charging stations across the Iberian Peninsula.

After analysing the documentation, Brussels concluded this Friday (27 October) that this “would not pose competition problems, given its limited impact on the markets in which the two companies” operate. The operation mainly refers to the markets for the installation, operation and maintenance of a network of electric vehicle charging stations, with fast and ultra fast loading speeds in Spain and Portugal.

The Commission added, in a statement, that this operation does not pose competition problems due to “the presence of a sufficiently large number of alternative charging point operators”. Brussels expects these markets “to grow significantly” in the next three years. The decarbonisation of road transport is one of the environmental priorities of the European Union which, in March, approved the ban on the sale of combustion cars from 2035.

According to a report published by ECODES and the Sustainability Observatory, it is estimated that by 2030, between 22,900 and 289,130 connectors for electric vehicles will be needed in the Iberian Peninsula; to reach that figure it will be necessary to install 25,860 connectors each year.

Five billion euros

Approval of the joint venture comes as the Basque electricity company, Iberdrola, announced on Thursday that it hopes to end the year with a double-digit percentage increase over profit reaped in 2022, which will place the company's net return at around five billion euros.

Iberdrola presented an upward revision of its economic forecasts for this year that points to a new profit record next December. Results for the first nine months of the year, also unveiled on Thursday, show that the company earned 3.6 billion euros, which represents an increase of 17.7% compared to the same period of the previous year. The increase is 22% if the effect derived from various generation facilities in Mexico is left out of the equation.

The strong results, which follow a 7.7-billion-euro investment by Iberdrola this year, come from a substantial increase in the company’s renewable energy production and from an improvement in weather conditions compared to 2022.

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