Spanish energy companies prepare to lead the creation of major trans-European champions

Spain's major energy companies are positioning themselves on the European chessboard. Faced with the increasingly widespread trend in favor of creating trans-European corporations capable of competing with giants from the United States, China, and Russia, Spanish multinationals are seeking to play a prominent role.

This is being demonstrated by multinationals such as Iberdrola, Naturgy, Enagás, Acciona, Repsol, Moeve, and Exolum, whose moves in recent years follow a similar logic: unwinding positions in the Americas to focus their efforts on the Old Continent, and thereby standing up to the major powers at one of the most geopolitically unstable moments in decades, with very tangible consequences in the energy sphere. With less fanfare than in other sectors such as banking or telecommunications, Spanish energy companies are developing this pattern of raising cash on the other side of the Atlantic in order to subsequently expand their European footprint.

Iberdrola is one of the firms that has read this scenario earliest — a scenario driven, from an academic standpoint, by the Draghi and Letta reports, which advocate gaining size and scale in the pursuit of greater global competitiveness. The Basque electricity company sold all its assets in Mexico for around 10 billion euros and within a year has acquired two major grid distribution companies in the United Kingdom (ENW) and Finland (Caruna), jointly valued at around 10 billion euros.

Industry sources point out that close attention should be paid to the multinational chaired by Ignacio Sánchez Galán, which since 2025 has raised around 20 billion euros in a combination of equity and debt instruments — further ammunition for acquisitions. Financial sources explained to this outlet two months ago that the firm is scouting opportunities in the European space for growth, in line with its strategic plan.

Another of Spain's major electricity companies, Naturgy, was boasting last week of entering a new phase of growth, now that the firm — whose majority shareholder is Criteria Caixa — has freed itself from the funds that have held a significant stake in its share capital over the past ten years. In this new scenario, the company stated it has 12 billion euros available for acquisitions. In the past, the firm always had its eye on Europe's leading electricity company, EDP, where its majority shareholder controlled by the Chinese state has spent years in a position from which it has been unable to expand.

Enrico Letta, a key figure

But beyond rumors, the market has not failed to notice that the firm chaired by Francisco Reynés has appointed Enrico Letta as an independent board member. The former Italian prime minister is one of the most influential and authoritative voices among the higher echelons of Brussels. He is regarded as a figure with the political persuasiveness needed to overcome the objections that companies seeking to acquire other firms in a strategic sector in another country invariably encounter.

Enrico Letta was, in fact, the one chosen to deliver the keynote address at the event organized by Acciona in Hamburg on May 5th, marking the tenth anniversary of its entry into Nordex, the wind turbine manufacturer. At that forum, Acciona's chairman, José Manuel Entrecanales, expressed his support for creating a major European wind energy champion in the face of the threat posed by Chinese competition.

Two months later, Entrecanales did not shy away from criticism at a forum held at the Italian embassy in Madrid, in the presence of Italy's Deputy Prime Minister Antonio Tajani. The Spanish executive openly denounced the difficulty his company faced in entering the Italian market. Acciona is also continuously raising capital and rotating assets in order to strengthen its balance sheet from a financial standpoint, which gives it a stronger position when it comes to potential opportunities.

There are more companies within the energy sector that are betting on gaining European scale through trans-European alliances. This is demonstrated by the joint venture formed by Repsol and TotalEnergies to exploit their North Sea oil assets, as this publication previously reported. Or the alliance that Moeve and Galp have been working on since last year, which aims to pool their strengths in their industrial and petrol station businesses on the Iberian Peninsula.

Another company that is betting on Europe and moving away from the Americas is Enagás. Its roadmap in recent years has focused on exiting countries such as Chile, Peru, Mexico and the United States in order to concentrate its efforts on Europe. In 2023 it already took positions in Germany, the United Kingdom and the Netherlands; and more recently, in the French operator Teréga, a transformative milestone for the firm. Also noteworthy is the strategy of another Spanish operator — in this case the hydrocarbons operator Exolum (formerly CLH), which is gaining weight at the European level. The firm operates in countries such as the United Kingdom, Germany, Ireland and the Netherlands.

Leading the consolidation

Industry sources believe that Spain is well positioned to lead this European consolidation process, which still needs to overcome certain reservations. Óscar Barrero, partner responsible for energy, utilities and natural resources at PwC Spain, notes: "The potential of the European energy market is enormous — on a similar scale to the United States in terms of population or energy consumption — but, despite efforts made towards convergence into a single market over recent decades, the reality is that we still have a highly fragmented market, both physically (interconnections and prices) and in regulatory terms."

"The economic prescriptions identified by Enrico Letta regarding the need for a more integrated economy and capital market in Europe are entirely applicable to an energy sector in transformation that requires a major investment effort and greater coordination between institutions and companies," Barrero adds.

And while many of the most widely heeded experts are clear on the formula, the reality is that Brussels has for many years prioritised effective competition in favour of the consumer over the competitiveness of companies in strategic sectors. Major proposals for trans-European banking integration have been thwarted. And the telecoms sector has been calling for a reduction in the number of operators, so far without success. Telefónica has also been pursuing that expansion towards the Old Continent in recent months, unwinding positions in Latin America.

But it is the energy sector where more tangible movements are being seen. The PwC energy partner concludes: "There are already major European players competing at a global level and I am convinced they will continue to lead and act as catalysts for the consolidation process that will take place in the sector in the coming years, provided that governments facilitate it."