Iberdrola España will invest over €110 million in 2027 to upgrade and digitise the electricity distribution network in the Basque Country

Iberdrola España's planned investment in electrical networks in the Basque Country amounts to €332 million for the period 2027 to 2029, with over €110 million already earmarked for 2027.
Following the Basque Government's success in securing a more than 40% increase in the capacity of the Basque Country's transmission network, it is necessary to boost investment in the distribution network to reach end customers.
75% of the investment approved by the Basque Government is directed towards the development and repowering of the electrical network, with the remaining 25% allocated to the modernisation and digitalisation of the current network.
These investments will accelerate the adaptation of the Basque Country's electrical network to the needs of industry, the electrification of transport and the creation of new housing.
This is a necessary step, but not sufficient, to meet the electricity demand of around 117 large industrial consumers, SMEs and other consumers.

Smart Grids

i-DE workers at an electrical substation, overseeing equipment and observing wind turbines in the background.

i-DE workers at an Iberdrola España substation

This week the Basque Government approved the Annual Investment Plan for the electricity distribution network for the 2027 financial year, presented by i-DE, Iberdrola España's distribution arm. Iberdrola España's investment forecast for electrical networks in the Basque Country stands at €332 million for the period 2027 to 2029, exceeding €110 million in 2027 alone. This volume of resources allocated to strengthening the electricity infrastructure is a key factor for economic development, industrial competitiveness and attracting new productive activities to the region.

This investment drive will enable the networks’ capacity to be strengthened, modernised and digitised. This is necessary to meet the Basque Country's demand for electrification and decarbonisation.

Thus this new Annual Investment Plan responds to the growth in industrial electricity demand, the roll-out of electric vehicles, the decarbonisation of road transport and the increase in new housing. In this context it is essential that the distribution network has the necessary capacity to transmit the planned improvements in the transmission network to end-use points.

The approval of the plan also comes at a key moment following the Basque Government's success in increasing the capacity of the Basque Country's electrical network by more than 40%, as part of the 2025 to 2030 Electrical Networks Plan. Proper coordination between both levels of the electrical network — transmission and distribution — is essential to ensure that the investments made translate into a sufficient, secure and high-quality electricity supply for the whole of Basque society.

Of the total investment planned for 2027, 75% will be allocated to the development and repowering of the electricity distribution network, with measures aimed at increasing its capacity and robustness. The remaining 25% will be dedicated to the modernisation and digitalisation of existing networks. This allocation will enable progress towards a more flexible network that is better equipped to integrate new energy demands and emerging technologies.

The investments outlined in the plan are necessary, but not sufficient, to meet the needs of around 117 large industrial consumers, SMEs and other consumers. The expansion of the distribution network will facilitate access to electricity for the development of new industrial projects and will help meet the decarbonisation needs of the Basque productive sector. Over the last two years the demand for decarbonisation from SMEs has tripled its share of requested power increases. Furthermore the investments will improve the quality of supply for all Basque consumers.

The content of the Annual Investment Plan for the distribution network is the result of joint work carried out between the Basque Government and i-DE as well as other institutional and electricity sector stakeholders. The Plan prioritises projects that meet the demands of industry and society in the Basque Country. This collaborative approach ensures that investments are aligned with the region's energy planning and strategic objectives.

However the Basque Government considers that despite the significant efforts made the pace of development of the electrical networks is still insufficient and must continue to increase in the coming years to keep pace with the expected growth in electricity demand. In this regard it will continue to monitor the implementation of the investments.

The Basque Government wishes to ensure that the Basque electrical network can develop at the pace required by the Basque Country's decarbonisation and industrial competitiveness. To this end the final approval of the transmission grid plan and the adaptation of the regulatory framework for remuneration of distribution companies will be decisive.

Both parties agreed that the development of network investments is essential to enable the growth and sustainability of the Basque Country. In this regard the urgency of approving the necessary regulations to modify the current investment constraints imposed on electrical networks in Spain by the existing regulatory framework has been emphasised. The focus is on an incentive-based framework to develop electricity infrastructure that accelerates the electrification and decarbonisation of industry.

Iberdrola España will invest over €110 million in 2027 to upgrade and digitise the electricity distribution network in the Basque Country

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Iberdrola España will invest over €110 million in 2027 to upgrade and digitise the electricity distribution network in the Basque Country

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