Iberdrola, the Spanish utility giant, is exploring the sale of its UK smart metering business, SP Smart Meter Assets, in a move aimed at raising £1 billion ($1.27 billion). This decision aligns with growing investor interest in the smart metering sector.

The potential sale, still in its early stages, would support Iberdrola’s £24 billion investment plan for its British subsidiary, ScottishPower, set to run until 2028. Two-thirds of this investment will focus on power transmission and distribution networks.

The UK’s Department for Energy Security and Net Zero recently reported 37 million smart and advanced meters installed across Great Britain by September 2023. These devices provide real-time electricity consumption data, aiding households and suppliers in optimizing energy use.

Iberdrola has made significant investments in the UK, committing €36 billion since its 2007 merger with ScottishPower. In August 2024, the company strengthened its presence by acquiring a majority stake in Electricity North West, further solidifying the UK as a key market for its renewable and grid-focused initiatives.

Recent activity in the smart metering sector highlights its growing appeal, with deals such as EQT and GIC acquiring a majority stake in Calisen and the merger of Arcus’ Horizon Energy Infrastructure with KKR’s Smart Metering Systems.

The sale, advised by the Royal Bank of Canada, remains uncertain, as neither Iberdrola nor RBC has commented on the process.

Source: power-technology.com