Iberdrola explores sale of UK smart metering business to raise £1bn

Spanish utility Iberdrola is considering the sale of its UK smart metering business, aiming to raise £1 billion ($1.27 billion), according to Reuters. The company is working with the Royal Bank of Canada as an adviser on the deal, though the sale process is in its early stages and no deal is guaranteed.

The potential sale is part of Iberdrola’s larger £24 billion investment plan for its UK arm, ScottishPower, which includes a focus on power transmission and distribution networks. 

ScottishPower currently manages 2.5 million smart meters through its SP Smart Meter Assets unit, which helps households and suppliers save money by providing real-time electricity consumption data.

Investor interest in the smart metering sector has grown, as demonstrated by recent acquisitions, including EQT and Singapore’s GIC acquiring a majority stake in Calisen and Arcus’ Horizon Energy Infrastructure merging with KKR’s Smart Metering Systems.

The sale could further support Iberdrola’s UK expansion plans, which include a €36 billion investment in the country since its merger with ScottishPower in 2007.