Good morning, ladies and gentlemen. First of all, we would like to offer a warm welcome to all of you who have joined us for our 2021 Q1 results presentation. Secondly, we wish you a healthy year 2021 for all of you and your families. Now onto the reason why we are all here, our Q1 results presentation, which will follow our normal format. Firstly, we will begin with an overview of the results and the main developments during the period given by the senior executive team that we usually have with us: our Chairman and CEO, Mr.
Ignacio Galan Mr. Francisco Martinez Corcoles, Business CEO and finally, the CFO, Mr. Pepe Sainz. Following this, we will move on to the Q and A session. I would also like to highlight that we are only going to take questions submitted via the web.
So please ask your question only through our web page, www.iberdrola.com. Additionally, we expect that the today's event will not last more than 60 minutes. Hoping that this presentation will be useful and informative for all of you. Now with Atfar Deradu, I would like to give the floor to our Chairman and CEO, Mr. Ignacio Galan.
Thank you very much again, please, Mr. Galan.
Good morning, everyone, and thank you very much for your participation in today's conference call. The results we are presenting today demonstrate our commitment to promote community recovery and sustainable growth in all our geographies. In the 1st month of 2021, hyperdol is performing better than expected despite COVID-nineteen and its negative effect on economic activity. The key reason for this positive evolution are higher revenues, mostly due to increased demand, more production, new tariff frameworks, higher number of contracts and better prices. And also for our ongoing effort of operating efficiency with net operating expenses flat despite the increase in activity.
We have also accelerated our investment with all our major projects, most of them in offshore wind achieving relevant milestone. This allowing us to contribute to economic recovery. With close to 6,000 new internal recruits globally in the last 4 months and several deaths of thousands of new jobs created along the supply chain. The integration of PNM Resources of New Mexico and New Year Distribucia Brasilia are progressing better than anticipated as well. Continued improving our financial profile, driven by increasing cash flow.
And in the current volatile markets, we maintain FX impact better unexpected due to our geographical dedication and our aging policy. All this has allowed us to offset unexpected negative factors that happened in the 1st 3 months like the COVID impact that I mentioned, Which unfortunately is still affecting some of our markets. And also, the impact of major weather events in Spain with Filomena Storm in Mexico. As a result of these factors, in the Q1 of the year, adjusted net profit increased by 12% EUR 1,082,000,000 Reported EBITDA reached EUR 2,840,000,000 up 2%. Excluding COVID and foreign exchange impact, EBITDA grows 12%, showing the group strong underlying performance.
Investment increased by 45 percent to more than €2,500,000,000 confirming the acceleration anticipated in February despite difficult external circumstances. With 8,700 megawatt of renewable capacity currently under construction 65% growth in network investment. Thanks to these green investments in January alone, we have incorporated close to 2,500 professional to our group. And we combine growth with an even stronger financial position, as shown by all our solvency ratios and our liquidity to close €17,000,000,000 Driven by all these factors. And after record year reached in 2020, the Board of Directors has proposed to the Annual General Shareholders Meeting a total remuneration of EUR 0.42 per share, 5% increase compared with the previous year.
Reported EBITDA, as I mentioned, was up 2% to $2,840,000,000 mainly thanks to the good performance of our Renewable business, we grew almost 30%. Excluding common effect of €65,000,000 and foreign exchange impact with amounts €231,000,000 adjusted EBITDA growth 12%. Renewables EBITDA reflect the contribution of new operating assets like Isangljar 1 in the U. K, the group's largest offshore wind farm, as you know, up to date a higher production of existing assets driven by increased availability and load factors mainly in onshore wind in Europe and in Brazil and hydropower in Spain. Growth in networks EBITDA was driven by increasing result in United States, thanks to the New York rate case approved in November 2020, additional transmission project and teles reviews in Brazil and the expansion of UK regulated asset base.
Finally, generation supply was affected negatively by higher electricity prices to the storms in Spain and Mexico. The contribution of A rated countries to EBITDA like United States, U. K, Spain, Germany, Australia, France reached 81%, reflecting the group optimal geographical diversification. As mentioned, over the quarter, we have accelerated our investment up to €2,500,000,000 45 percent more than the Q1 2020. With 92% allocated to renewables and networks, In the coming quarters, we will continue progressing in line with our plans and doing our part to promote a community recovery through the creation of activity and jobs in the communities where we operate.
Net loss represent half of the total investment, up to 65%, Given mainly by Brazil, which includes €400,000,000 of the Interventional and Energia Distribu Sao Brasilia, Spain and United States. Renewables investment increased by 30% with growth coming mainly from European Union countries, Australia and United States. We continue to lead the build out of new renewables in all our markets. In Spain, since the beginning of 2020, we have installed more capacity than the 3 next competitors together. And we have 1700 currently under construction.
Globally, 1 third is being built mostly in European countries like Portugal, France and Germany as well as Australia, with almost another third in United the rest of the year. And the remaining 33%, mainly in Spain and Brazil. And by technologies, 2,600 megawatts correspond to offshore wind in Europe and United States, 2,800 Megawatt of Solar PV, 2,000 Megawatt of Onshore Wind and 1300 of technology, including Tamika Pan historic hydro facility as when 150 megawatt of battery is located in Australia, Ireland and U. K. And we add other secured projects, we reach if we add other secured projects, we reach 18,750 megawatt.
This. This means we have secured already 100 percent of the capacity for 2021 2022 and threefour of our target for 2025, when we expect to reach 60,000 megawatt of renewables. We also continue identifying and adding new high quality project in our pipeline. We have reached 78,000 megawatts with unexpected success rate of more than 60% in which a balanced mix that include more than 20,000 of offshore wind. Over the last 12 months, we have expanded significantly our portfolio in this technology market with high growth potential and ambitious target.
In Japan, the country with the largest offshore wind target worldwide, 45,000 megawatt. We have closed 2 transactions, creating a hub of more than 3,000 megawatt of projects. We also reached agreement to gain access to large projects in Sweden and Poland that will mature by the decade. And very recently entered Taiwan's attractive offshore market with 2 projects of 600 megawatt each. The country is already preparing action to achieve a target of 15,000 megawatt of offshore wind by 2,035.
Finally, we closed an agreement to develop the portfolio of 3,000 megawatt in Ireland. And we are already working in the Brazilian market as well. After 40 years working in the offshore wind industry today, we have a team of high skilled professional of 30 different nationalities, fully dedicated to offshore, which in the next month, we'll reach 1500 people. In ten offices across the globe and engineering, construction and maintenance, with operation coordinated from our core centers in Boston and London and more recently also in Tokyo to the below the Asia Pacific market. And we are expanding our presence in a hub approach to combine critical mass and global know how with a strong local support.
All this together with our proven true record of project delivery and our long term strategic agreement with suppliers. That's reinforced Iberdrola's excellent position to lead the development of offshore wind and benefit from the impressive momentum of this technology all over the world. We want to take full advantage of our expertise at First Mover to reach at least 12,000 megawatt operational by 2,030. We already have 1300 operation in the U. K.
And Germany, which contributed close to €600,000,000 EBITDA last year. A 4 project construction totaling 2,600 megawatt with our progress in according to plan. 500 megawatts and brief project in France will be commissioned in 2023 already in construction. And in United States Vineyard Wind off the coast of Massachusetts, we become the 1st largest scale offshore wind farm in the country. The project completed yesterday all permitting and authorization process with the record decisions submitted by Boeing and it has secured its PPA with Massachusetts' selected distribution companies.
The past. The past TT wind already secured a PPI with the State of Connecticut as well with 100 megawatt and is progressing through the permitting and procurement process. The process. Finally, for the Baltic Eagle in Germany with nearly 500 megawatt, we closed the selection of main contractors and started the construction of the offshore substation with full commission of the wind farm expected by 2024. Beyond this project already under construction, the auction announces in the next 18 months will bring new routes to market for our project in different geographies.
We already have 3,600 eligible to compete in auction that will take place in the United States. In U. K, 3,100 is Angela Hub. We'll be ready to participate in the 4 round of allocation contract for difference. In Bindacker in Germany, a 300 Megawatt project will take part of the next offshore wind auction, which is a preferential ride for the site.
We also have projects to compete in the next 3 auctions in Japan And are looking and buying in process in France, where Iberdrola has already been prequalified up to 1050 Megawatts in Normandy and Scotland, Poland, Denmark, Ireland and Taiwan. Moving to Networks. This business takes 50% of the group's investment with increases in all markets. In United States, the New England Clean Energy Connect transmission project initiated construction last January. The first steel pole had been installed and works on the DC converter station have started.
This high voltage transmission light to transport 0 carbon hydrogen generation from Quebec to New England will involve a total investment of almost $1,000,000,000 in New York State, the Rochester Area Reliability Project was fully completed after several years of work, and we are increasing transmission and distribution investment following the new rate case closed last November. In Brazil, network investment almost tripled, driven by the integration of the Energia Distribers of Brasilia, increased investment in LoRa with distribution companies and the significant expansion of the transmission grid driven by the auction won in the last year. Finally, in Spain, we continue to invest in development of smudge grease and distributional reinforcement. But as recognizing the National Integrated Energy and Climatic Plan, more investment will require in the future to achieve expanded carbonation target. We already had presented to the government a plan of €4,353,000,000 for this activity, We represent 80% more than the previous period, providing a great tool to accelerate green recovery in the country.
The group's strong operational performance is fully reflected in our generation of cash flow, which reached EUR 2,270,000,000 in the Q1, up 7%. As a result of our financial ratios improved with FFA or adjusted net debt growing 140 basis points to 23.2%. In addition, our liquidity position reached EUR 17,000,000,000 proving our access to financial to financing in very competitive terms. Over the Q1, to give you some example, Iberdrola signed a new credit line with 21 banks linked to sustainable indicators for 2,500,000,000 launching the largest sustainable commercial PayPal program of a Spanish company with a maximum balance of $5,000,000,000 linked to our contribution to United Nations Sustainable Development Goals. With these two transactions, the group reinforce its global leadership in green and sustainable financing, reaching EUR 32,100,000,000 to date.
As you know, our listed subsidiaries, Avangrid and Neoenergia, release the result in the last days showing a strong performance. In the case of ABAN Grid, adjusted net profit increased by 50% to $354,000,000 EBITDA reached $752,000,000 up 21%, thanks to the increase in renewables and networks. The year. Gross investment rose by 24 percent to $663,000,000 In the case of renewables, the company is building 1600 megawatt of offshore wind, 900 megawatt of solar and 400 megawatt of short wind. Inelcos, investment grew by 42% following the approval of new year rate case, as mentioned.
As you know, we also expect to close the transaction with P and L Resources New Mexico in the coming months, creating additional growth opportunities for Abengrid Network's business. Major federal permits have been had already been obtained as well as the approval from the Public Utilities Commission in Texas last week. And the company has reached a settlement with several key parties in New Mexico. So the transaction is on schedule to close in the second half of the year. The performance of this quarter has driven an increase in the company guidance with full year's adjusted net profit now expected to reach between $693,000,000 7.50,000,000 dollars in 2021.
This will represent an increase up to 21% compared to 2020. In the case of Nenergia, in Brazil, registered 50% increase in EBITDA to BRL 2,884,000,000 driven by ongoing investment in the networks business and a strong growth in renewables. This, together with the reduction of financial expenses, led to a 75% increase in net profit, exceeding BRL 1,000,000,000 for the first time in a quarter in the company's history. Following the tariff review just approved by Selpe, Pernambuco Company, up to March 2025, all Neoenergia distribution companies have already regulatory framework fixed at least up to April 2023. The year.
Gross organic investment increased almost by 85 percent to BRL 2027 million, mostly allocated to construction and transmission project, the expansion of distribution networks and the addition of more than 1,000 megawatt of wind capacity. As I said, Neoenergia Distribucia Brasilia acquisition was closed in early March. This integration is moving faster than expected. The company has achieved already one of the best monthly indices for quality supply even recorded, and we expect already positive contribution from April. Our investment plan for the coming years are increasingly supported by global ambition and climate action.
The year. A consensus on this subject was shown once again in the Leaders' Summit on Climate organized by the Biden administration 3 weeks ago, while all major economies announced reinforced target to achieve next 0 emission. The European Union We have led Elite Action globally for years, reaching agreement for new climate law that include an emission reduction target of at least 55% in 2030 from 2,090 levels. Junet Kingdom, which will host the oncoming COP in Glasgow, increased his reduction commitment for 20,235 to 78%. This is the world's most ambitious target in comparison terms in this moment.
And after United States re uniting the Paris Agreement, the country has now committed to cut emission at least by 50% to the end of the decade compared by 2,005 levels. By the transformation of the energy sector implies by this announcement will only be implemented if there is full coherence between target energy policies and regulation. And we also have a good news on this front. Some government are already creating the framework required to read net 0 and at the same time to build back better from the pandemic. In the Casual United States, American Jobs plan.
We dedicate $100,000,000,000 to reach a fully decarbonized power system by 2,035 with more tax incentives to promote investment in renewable, storage and high voltage interconnectors. There will also be an additional initiative to modernize electricity grids a boost innovation in technologies like green hydrogen. The federal administration is also promoting the development of the offshore wind industry with Moragile permitting and new leasing areas to reach 30,000 megawatts of capacity by 2,030. In Spain, the climate change and energy transition law is concluded its approval process with its ethical consensus, And the government has already submitted to European Commission its recovery and resilient plan, choosing clean energy investment as one of the main destination for European Union Funds. A proposal to create capacity market has also been published.
We are still hard to see the final version of this regulation, But this shows the awareness of Spanish authority about the relevance of maintaining fan capacity in the system and bringing more storage to secure supply in the context of growing penetration of renewable generation. Finally, the U. K. Is promoting its Green Industrial Revolutions based on the 10 points plan, the support initiative in offshore wind, green and building, solar emission cars and green hydrogen. This increased climate ambition is fully aligned with Iberdrola's pioneering strategy.
We anticipated any transition 20 years ago and started taking decision at that time. To close all our coal and oil power plants and to invest heavily in renewables, networks and storage. Over this period of 20 years, we have often found the position of energy company regulators in climate change denials. Fortunately, today. There is a consensus on the need to reduce emission and instead of opponent, we only have competitors.
And we are still continuing improving. This Q1 of the year, we emitted only 28 grams of CO2 per kilowatt hour produced, which is around 10x less than average emission in our peers. On top of that, 90% of April Jolene long term plan is included in the list of investment considered sustainable by European commissioning its taxonomy. We have also 0 coal in fuel oil production. This will avoid additional risk as well as the commissioning and labor cost that other competitors will probably need to incur.
And through green investment, we will accelerate net 0 and contribute to the economic growth and the occasion of 1,000 of qualified jobs. All in Spain. Our investment, actual investment are sustaining 30,000 new jobs in our supply chains. But the challenge is huge. Net 0 implies transforming the energy consumption all sectors to promote electrification and investing in the renewable energy power networks and the energy storage required to support it.
We need all public and private agents on board. And Eberdola, after 2 decades leading this effort, is now creating several strategic alliances with major companies from different industries to accelerate green investment. In the financial sectors, We have formed a co investment vehicle with a leading insurance company in Spain, MAPFRE, to accelerate the build out of solar PV and onshore wind in the country. We're also partnering with other energy companies, the rest in a specific larger scale investment project, mainly in offshore wind, like Total, with a joint venture to participate in the next auction of offshore wind in Denmark and to develop onshore wind and solar projects together in In electric mobility, we are closing a strategic partnership with leading car manufacturers like Volkswagen, Renault and Mercedes to accelerate the deployment of charging infrastructure, manufacture batteries, create a full value chain for electric vehicles and the carbonite day facilities. Also with charging system developers at WorldBox.
And we are entering commercial alliance with leading distribution company in Mercadona to start Turning Point electrified their fleets. Finally, we are closing agreement with industrial companies interested in reducing the carbon footprint to lead development of green hydrogen for different uses: green ammonia production for Fertiberia, the supply of hydrogen to the fleet of buses of Barcelona Metropolitan Transport Company, the generation of heat in distilleries for companies like the Arguello in the U. K. Or the produced ceramics in Porzingonos among others. This agreement and synergies are the ones need to take full advantage of the potential of the coming European recovery funds to create job in industrial development.
In our previous presentation, I announced we had proposed more than 150 projects for the Spanish recovery transformation and facility plan access to the Next Generation You program. Involving close to 3.50 small and medium sized companies, We will mobilize investment for more than $21,000,000,000 But we have continued working with several companies to bring new ideas and strengthening our proposal for a strong rate recovery. As a result, we are already leading or taking part in 175 projects with a safe €30,000,000,000 investment with the capacity to generate 60,000 jobs along the supply chains. I can say that all our projects are included in the scope of the plan presented by the Spanish government in Brussels. I will now hand over to the CFO, who will present the group financial today.
Thank you.
Thank you very much, Chairman. Good morning to everybody. As you can see in the slide, Q1 reported EBITDA was €2,814,000,000 up 1.5% versus last year. Excluding €65,000,000 COVID impact. Our adjusted EBITDA increased almost 4%.
FX impact in this quarter has been large, €231,000,000 after the devaluation of all our reference currencies, €9,100,000,000 the dollar, €3,700,000,000 the pound and 27 percent the real. Excluding also the FX impact, our EBITDA would have grown 12.2%, showing the real recurring performance of the business as the Q1 of 2020 was marginally affected by COVID. Revenues increased 7% to €10,100,000,000 And procurement's 12.4 percent reaching €5,500,000,000 Gross margin rose by 1.3 percent to €4,600,000,000 10.7 percent excluding COVID and FX impact. Net operating expenses remained flat €1,000,000,000 thus improving the efficiency of the group by 110 basis points as gross margin grew by 1.3%. Excluding positive FX impact, net operating expenses grew €99,000,000 due to the contribution of new businesses, including Neo Brasilia from 2nd March onwards as well as storm costs in the U.
S. From Q1 2021 onwards, NEX external services include as other operating results the gain and loss on the sale of control assets following the Spanish Securities and Exchange Commission recommendation and ES1 draft expected to be approved. In this respect, Q1 'twenty one has not registered any relevant amount. In the annex, in page 44, there is a more detailed explanation of this change. Analyzing the results of the different businesses and starting by networks, EBITDA grew 4.3 percent to €1,300,000,000 19.5 percent excluding €161,000,000 negative FX impact and €26,000,000 negative COVID impact that will be partially recovered.
Excluding FX and COVID impact, EBITDA grew in all geographies. As you can see in the slide, Spain contributed 32%, Brazil reached 25%, the U. S. Were 23% of the total and the U. K.
Contributed another 20%. In Spain, EBITDA grew 8.8 percent to €421,000,000 due to the impact of €15,000,000 of positive settlements from previous years as a consequence of improvements in quality and 11% lower net operating expenses driven by efficiency plans. And despite lower remuneration that came down from 6% in 2020 to 5 58% in 2021. In the U. S, IFRS EBITDA was 17% off to US358 $1,000,000 due to increasing investments and to pass cost recognition, but affected by storm costs.
Excluding COVID impact, EBITDA would have grown 21%.
The year. U. S. GAAP EBITDA
amounted $438,000,000 $125,000,000 over IFRS EBITDA, Q1 mainly due to the difference in the timing of accounting of the deliveries that in the IFRS are fully accounted in the Q1 and in U. S. GAAP along the year. In Brazil, EBITDA grew 44% to BRL26 1,000,000, €8,000,000 are due to the Neo Brasilia integration from March 2 as well as cost contention due to efficiency plans. Excluding COVID impact on demand, EBITDA would have been growing 48%.
Finally, in the U. K, EBITDA fell 1.6 percent to £235,000,000 affected by £7,000,000 lower demand due to COVID. Excluding COVID EBITDA would have grown 1.4%. In renewables, EBITDA grew close to 28% €932,000,000 and 34%, excluding €46,000,000 of negative FX impact, 8.5% more installed capacity that reached 35,200 megawatts and higher load factor with average price in Spain and the U. S.
As you can see in the slide, Spain contributed 35% to EBITDA, U. K. 25% the U. S. 23% and Iberdrola Energy International 10%.
In Spain, EBITDA was €322,000,000 76% over last year, thanks to higher sales price to the supply business and 40% higher output, with 54% higher hydro, 17% higher onshore and 128 higher PV whose installed capacity has already reached 1264 Megawatts. In the U. S, EBITDA increased 76 percent 74 percent to $260,000,000 with positive impact from the Texas Gold Snap from the new capacity. In the U. K, EBITDA fell 2.5 percent to £209,000,000 due to 29% lower onshore production, partially compensated by 56% higher offshore production due to Istofangla 1 contribution and also the decrease has to do with lower prices.
In the international business, EBITDA fell 16% to €91,000,000 due to the lower contribution from Wikinger and higher development costs despite Infigen and Alto Power increased contribution. In Brazil, EBITDA grew 64 percent to BRL197 million, thanks to positive impact on settlements in hydro concession agreements. And finally, Mexico EBITDA grew 68 percent to $46,000,000 thanks to higher operating capacity coming from Pierre Santiago Onshore Plants and CuyahuaCo PV Plant. Generation and Supply EBITDA decreased 31.8% EUR528,000,000 and 24 percent excluding EUR 21,000,000 negative FX and COVID impact. The business has been negatively affected by extreme weather conditions, as I will comment.
In Spain, EBITDA was down 39 percent to €279,000,000 with 13% lower output higher energy purchases at higher prices, with additional impact of the phenomena storm and COVID. In Mexico, the EBITDA decreased 33 percent to $147,000,000 negatively affected by the Texas cold snap on price guidices of around €50,000,000 that are expected to be recovered as CFE tariffs will reflect the higher cost of gas. In addition, there has been an increase in access fees. In the U. K, the EBITDA grew 30% to 106,000,000 Pounds with higher sales despite COVID effect, mainly due to weather conditions and improved margins in electricity and gas.
Excluding COVID, EBITDA grew 49%. In Brazil added BRL118 1,000,000 to EBITDA highlighting the better performance of our CCT plant. And in the international business, EBITDA was €14,000,000 negative affected by coal snubs, development costs and lower revenues due to COVID. EBIT was up 3 percent to €1,700,000,000 Excluding FX and COVID, EBIT grew 14.4%. D and A fell 2.6 percent to €986,000,000 but excluding FX grew 4.3%, mainly due to the increased asset base and activity.
Provisions were up 20 percent to $115,000,000 but excluding FX and COVID impact, grew 56%, mainly due to Texas Gold snap provisions and others. Net financial expenses grew €85,000,000 to 265,000,000 Driven by EUR111,000,000 mainly linked to one off positive FX hedges accounted for in Q1 'twenty. More than offsetting the $26,000,000 improvement in debt related costs, dollars 13,000,000 due to the lower cost of debt that improved 12 36 points and €30,000,000 positive results due to lower average debt. Our reported credit metrics improved. 1st, the adjusted net debt due to the decrease in adjusted net debt of €1319,000,000 to 36 €3,000,000,000 despite the investment efforts and thanks to the hybrid issues during last year.
2nd, due to our resilient business model, improving cash flow generation even in these difficult times. As a consequence, our adjusted net debt to EBITDA remained at 3.6 times, FFO adjusted net debt improved 1.4 percentage points to 23.2 percent, retained cash flow net debt improved to 21% And our leverage ratio strengthened to 41.9%. As the Chairman has mentioned, 21 banks at €2,500,000,000 new sustainable credit facility at pre COVID levels. After this transaction, 90% of the group credit lines are sustainable expecting to reach 100% certainty. The line was linked to 2 sustainability indicators related to environmental and social issues.
It is also the first transaction of a Spanish company reference to risk free rate instead of LIBOR. And let me also highlight the social innovation component. For the first time, a facility will include an annual contribution to a sustainable project. The contribution will vary according to the degree of utilization of the line and will be making collaboration with all the financial institutions that have signed this sustainable Credit Line. Also last April 15, Iberdrola launched a €5,000,000,000 sustainable promissory note program.
And Iberdrola, as of today, remains the world's largest private issuer of green bonds. Adjusted net profit grew 12.4 percent to €1082,000,000 compared to the Q1 2020 adjusted net profit of 963,000,000 Adjusted net profit, exclude extraordinary impact, including COVID and other nonrecurring items, but not FX impact as we consider FX part of the risks that brings being a global player. Regarding corporate taxes, in March, The U. K. Government presented a new tax package that increased the corporate tax rate from 19% to 25% starting on the 1st April 23.
As a result, we expect to account €450,000,000 negative impact of deferred taxes 2021 in our P and L, but with no cash impact. This will be accounted when finally acted either in the second or the third quarter of the year. We expect this negative impact to be totally or partially compensated by other positive impacts. The rest today in the press some related news that we are still analyzing. In the annex, you will find the calendar for the final dividend payment.
Now the Chairman will conclude this presentation. Thank you very much.
Thank you, Pepe. To conclude, I would like to highlight that the Q1 result have exceeded our expectation and forecast. 20 years ago, we saw clearly the need to decarbonize the economy and the opportunities that this could bring in terms of investment, industrial development and job creation. Since then, we have been leading the deployment of clean energy and power networks, and now we continue accelerating. In fact, we are already ahead of the plan we presented to you last November.
75% of the renewable capacity additions expected by 2025 our operating under construction of Secur. 90% of our distribution investment are covered by regulatory frameworks already closed at least to 2023, and we continue to expand our transmission activities. We expect our subsidiaries in Brazil in United States to continue performing ahead of estimate, driven by a strong business outlook the integration of Neuenergia, Distribuza Brasilia and Benjamin Resources. Our offshore wind projects are progressing faster than initially planned, We are and we will benefit from increasing opportunities, thanks to the new auction and the growth platform we have Rest articulated in countries like Japan, Poland, Ireland or Taiwan. And finally, we are reaching relevant strategic alliances to accelerate electrification leading companies in different industries.
All this give us an even additional assurance to reaffirm our guidance for 2021 and beyond. Today. So we confirm our 2021 outlook to €3,700,000,000 to €3,900,000,000 in reported net profit. This. This excludes, as mentioned, potential adjustment to the changes in tax regulations underway in some countries, which is the case like U.
K, we will largely be noncash items. Growth will be driven by the contribution of new renewable capacity, positive impacts from new rate cases and additional network investment and the ongoing improvement in operating efficiency in all countries. Given this net profit outlook today, we can also ratify our outlook for a shareholder remuneration of EUR 0.44 Persea Against 2021 results. Now we'll be more than happy to answer your question in this moment. Thank you.
The guidance 2021. The net income guidance now excludes nonrecurring items and the deferred tax charge. Does this therefore exclude COVID impacts and if so to what quantum? Can you give us a guidance for EBITDA in 2021 at least your views on the different business countries.
So well, I think What I can say is what I said already. The execution of our plan is progressing better than expected 2021. I think we have already had higher revenues, the demand recovery, new tariff, prices, higher production, operational efficiency, the acceleration of investment, Sambreed, Vinyar, etcetera, integrations of P and L Resources and Energia as well our financial performance, which is improving our ratios, the FX impact and the control due to the geographical footprint, which are already upsetting all these negative factors. So we are already expected to close Tenet Resources along the second half of the year. And in terms of net profit, which we are not already expecting despite reserves of hydro higher than average, they are not already expecting anything different than that one.
With relation to countries, I think in networks, I think United States It's performing well, and I think their expectation is they're going to continue performing well. They already updated their outlook. In Brazil, I think the results are moving very well as well, and I think they are increasing heavily. And I think we are not expecting any negative things in this direction. So in renewables, we are already expecting to add between 4,004,500 megawatts, new megawatts before the year end, which I think they are going to contribute as well.
And the new prices, I think we expect and they are already to as well to have already positive impact in our I think it's in another side, I think the negative side of the COVID. We hope with the vaccination which is being made and the situation which is in most of the countries coming back to certain normality. I think that can be already be much minor than it was already in the 1st month. So I think the only thing what we can already say it as nonrecurring, I think is this tax in part with non cash, which we need to already to adapt to adjust already to our accounts of because of the British changes in the tax corporate tax from 2019 to 25, I think, So which I think that can represent something of a few €100,000,000 €400,000,000 €300,000,000 which we can already adjust of our for now deferred taxes. That is what we are contemplating in this moment.
There are things, as Pepe mentioned, which still we have not already Included because we are still not properly analyzed this recent news which appear in the media today about the hydro tax in Spain, but I think still we have not already had time to presentation. We will let you know, I think, in this moment, we will provide results as soon as we make already an impact about the numbers will be Should be certain positive, but we will let you know how much it's going to be. In any way, That is something which is not affecting to the tariff deficit. That is going to be something which is directly connected between the Ministry of Athene and the Companies. It's not at all already not related with the tariff itself.
So but I think those are the main things I would like to clarify to you. We are very comfortable with the outlook we are giving to you because I think the things are going better than expected, and we are not seeing, for the time being, apart of these tax things which I'm mentioning, We have not seen already a special risk is in the horizon. So we are already positive in our approach.
The second question comes from Jorge Guimaraes, JV Capital and Fernando Garcia, RBC and is related to the topic you mentioned before is related to the tax effect and the writing of this question is the following. Could one of the tax effects mentioned as compensation for UK impact to be related to today's news in the Spanish press about the recovery of the hydro tax in Spain for 2013 2014. If so, is it possible to quantify this hydro tax recovery? Probably the question has been already answered, but you could add something additional.
As Efe mentioned, in the U. K, I mentioned. I explained already. In Spain as well, I just insist on the other one. I think that is positive.
We have noticed still we are studying the impact and how many years will be affected. We will know in the next That is something which is between the companies and the Minister of Finance.
3rd Your question comes from Javier Suarez, Mediobanca, Jorge Guimara is JV Capital, Emmanuel Palomo of San BNP Paribas. Comments from other company on aggressiveness from other suppliers in Spain. What is our commercial policy, sustainability in supply margins currently?
Well, it's funny. So well, I don't know. I think it's true and the country is increasing competition in the entrance. So I imagine they are talking about that one. I think I will say in all time the welcome competition.
I've never been already criticizing the new intense camp. I think it's good. So that's why I don't know what about what competitors are talking about. What I can say is in Iberdrola, we have a very good marketing team. So I think our marketing people are already making a good product, good services.
They are already very competitive cost of sale. They are a wide range of offers a brand which is already well positioned in the country. And I think that is helping ourselves to maintain our customer base. We don't need to go already to the price war for that one. It's not our style and I think that is not what we are making already in this particular time.
I imagine they're talking about another the newcomers, which I think they're job to do. I don't know what they're talking about. Pat, what I can say, our marketing team is gaining their money. So I think they are well paid, but they are working very hard.
The next question comes from Harry Weidberg, Bank of America Merrill Lynch, Rolfe Poulain, Morgan Stanley and Antonella Bianchese, Citigroup. Is related to the power prices in Europe. What is Iberdrolabium? The sustainability of the higher prices given the forward cube in Spain this heavily back word dated 2024 forward well below 2022. 2nd point is, do you fear any windfall tax to compensate?
Number 3, are you seeing renewables PPA prices rise in response to higher power prices. And finally, can you remind us on power price hedge for 2021 2022?
Well, the first thing is the prices which happen in Europe is very simple. I think the CO2 is represent roughly €50 which I think that is more or less is contributing to the price on the range of €20,000,000 to €25,000,000 on the tariff. The second one is the price of the raw material. I think the gas is already at levels of 60 or 65 per megawatt hour, which I think altogether, it makes a price on the range of what is we are achieving today, on the range of this one. In the case of Spain, we have already 7% increase, a 7% tax in the production.
So I think it's something which is absolutely logic. And as I used to say, the carbon prices are not coming from Saudi Arabia. The carbon is already a tax, which It's already been used for another proposes for decarbonizing the economy. I think that is collected by the fiscal authorities in different countries And which can be used already and is being used for already for giving already support on other activities In taking the decision to move from one part on day 1. So what that makes that one?
Certain, we expect then the PPAs prices can already be made according with the prices of the market. So I think PPAs is not something different. It's not a broad of the reality. So I think those are the times. I think it's something which is all across Europe.
So the natural gas prices are increased. The CO2 prices are increased for helping to make already the carbonization of the economy. And I think that, too, is driven already the price of electricity, which is already making in this moment. Saying that, I think position Paco of our position of prices and hedges, etcetera. Can you explain on that in detail?
Yes. Starting with the figures for 2021, we don't expect any impact because all price driven output is fully hedged right now. For 2022, 70% is hedged around this at €75 to €80 per megawatt hour are in the United Kingdom Similarities and in this case, 100% of the price driven output of the planet. This is very important because planet is one thing and the reality is another one. So when we have to Phase the Reality.
There are adjustments in terms of demand increases and production that cannot be produced. And that's for 2022, as I finished as I right tell you or told you. And for 2023 onwards, we have sold decreasing annual quantities according with customers' appetite. And can say that, for instance, for 2023, we have 30% already sold and so on. So that's our position.
The open position now with the forecasted prices at higher levels will allow us to recover more money that we probably have forecasted before. And in this case, this 30% that is sold for the next year will allow us to get more money. Still early to provide specific figure, but this is what we are seeing coming on. And for sure, when you have extreme weather conditions that we had in Mexico or in Spain. All these hedges work partially.
I think I would like to add at this point that Paco has already mentioned, I would like to add that I mentioned that the storm of Filomena has already affected our P and L in Spain, however, returns in Spain. Why? Because we are forced to buy electricity or buy already gas at very high prices to sell to our customers, we already agreed, fixed prices. And we have already hedged. We have hedged already a normal demand, but not a punctual excess of demand and nothing that is affecting to our results for this reason.
I think we are already covering hedging the normal than expecting normal demand. But I think when there are already extraordinary circumstances, I think we are already affecting negative. The same thing already in positive. So I think we have not we have already not all the electricity hedged, as Paco mentioned. So I think if the prices are higher, we are 30%, which still is not already ahead for 2022.
If the prices are higher, we can already benefit of these better prices for the future as well.
The next question comes from Rolf Pulleyn, Morgan Stanley and Nicolas Kearns, 19 point and is related to offshore wind. What impact from global supply chain inflation and bottlenecks should we anticipate for Iberdrola? Isiberdrola concerned by inflectionary pressures reducing offshore wind IRRs given fixed price for future and costs yet to come?
Today. So the first thing I hope that this temporary situation on the price of the raw material, steel, copper, oil, etcetera. In our case, our needs for investment already are almost covered. All the projects underway, have a very high share of CapEx costs already fixed, let's say, 80%, 90%. A major equipment contract has been had price indexation generally hedged as well.
And I think I will remind to you that I think last year, we advanced orders for €14,000,000,000 this year for €4,000,000,000 I think altogether €18,000,000,000 Which I think that is already with prices. We have already reached an agreement. I think in the case that's become structural, I think I'm sure that will be passed into the price in same way, which has already happened with increases in price of equipment in the past. I can give you the example of solar in the last few years, which has been already happening in this manner. So which I think give you already tranquility that most of our investment are already for the next period already with contract already signed and with hedges already done.
And the minor party is already still not But Aglin, if that is not already temporary, that is a structural that will be passed to the prices, I'm sure that is going to happen.
Question Question number 6 comes from Harry Weiber, Bank of America Merrill Lynch and Javier Suarez, Mediobanca. What are your most recent expectation for European Union stimulus funding from projects and could there be upside to the CapEx this plan if you are successful with your funding applications.
So I think you know that Spain has already sent the plan to Brazil. As far as I know, has been welcome because that is absolutely fitting with the European plans and expectation. We have already we are leading this part on that one. As I mentioned, we have already make presented 175 projects in several fields, in floating offshore, green hydrogen, electric mobility, energy storage with very many partners. I think it's 300, 150 people, already companies which are together with us.
In certain of those projects, we are leading. In certain of the projects, we are already participating, but we are not already leading those projects. As you know, together, that represent roughly EUR 30,000,000,000 investment already presented. We can already create a difference of 1,000 of jobs, EUR 65,000 people. As far as I know, all who has been presented in Brazil, all our plans are already allowed to participate in this one.
So I think all are already been included in this. So But I would like to insist on that one. In our investment plan, in our long term plan, it's not already included those things. I think that is an additional thing that has to be already added to our existing targets. So I think our 2025 plan.
And you know €75,000,000,000 investment is not included. All these things, which shall depend already of the different process of what once will be approved in Brazil have to already pass through to the countries and they will make already imagine just a certain market mechanism or whatever for making or the option or whatever thing to have access But we will see when that is will be up to.
Next question comes from Rob Pulley, Morgan Stanley. What impact does Iberdrola see from the U. S. Climate plan and proposed tax credit changes for its business, given the company 2,030 plan was outlined before the U. S.
Announcements and is there sufficient balance sheet flexibility to do more growth CapEx?
So with no doubt that we'll bring massive investment opportunities. I think it's but the positive thing is the main proposals are very well aligned with the Berdola land, so which I think is we've been for 20 years dreaming that that happened and it's already happened. So tax incentives for clean energy and storage really accelerate renewables. Push for power grids driven by tax incentives of transmission the transmission and measures to improve resiliency is positive as well. New target of 30 gigawatt of offshore wind by 2,030 is good They make already more agile permitting.
I think you know that yesterday, we got already the final permit which allow us to build a windy yard wind in Massachusetts. So I think it took a long time now. Now they would like to make already this in a more agile manner. But I think we have already 7,000 megawatt of pipeline in this area for that one in the United States. So all the things which are related to this ambition of offshore.
We are ahead of the rest because we have already decided, the site is analyzed, the project design, etcetera, etcetera. And I think the networks, I think the only point is the potential increase in corporate tax. We don't know if it's going to happen or not. But in any case, I would like to stress that our 80% of our business is networks and has already regulatory framework, Which are based on after tax returns. So means whatever changes in taxation is going not to affect in an important manner, partly the one off that can already happen as is going to happen in the case of Britain, no cash item cannot already affect to our P and L.
In renewables, I think that their increases in taxation has a positive effect in the sense of a faster monetization of our tax credit. So I think that is going to help already in all these things. So Which I think globally, we feel is very positive. So I think it's already absolutely in line what we've been dreaming for years. And I think that I'm sure that is going to provide to our subsidiary, Avangrid, just a huge opportunities of growth either in renewables, onshore, offshore, especially offshore And as well in terms of net loss and transmission.
We have a couple of questions from Kim Mamadouff from Bloomberg. First of it is. Can you please provide an update on the regulatory political situation in Mexico and Brazil?
Well, in the case of Mexico, there are no news, I think from the last presentation. I think, as you know, the proposed modification of electricity law was now suspended by ports. In case of Enel has approved just a new tariff for Felpe, for Pernambuco's company, for Pernambuco. It has already addressed the annual tariff for COLL by Conseil. The integration of Brazilian utility is going well.
I think that is going to start in April. The construction of the transmission line, what we 1 in the past are going very well. And we continue for looking new opportunities of the new auctions which is going to happen. So I think the administration is maintaining very stable and predictable regulation. And I think it's a good example was already the contact COVID that they make for helping finance the distribution companies during last year already COVID confinements, so which I think that is the news.
So Mexico. Nonios are part of the modification of the law. It's already suspended by courts and the company is already performing with normality. And in Brazil, the teams are going really very well.
The additional question from Elkem Mamadouff is related to offshore wind. Some peers had problem with offshore transmission cabling. Is that a risk for Iberdrola?
So it's funny that one. Well, I see the answer, No, we have not that one. I think it's we've been already making this sort of projects of in networks and transmission for 100 years. So I think we know a bit all those things. Our offshore wind farms are designed to minimize this impact of water stream and cable.
So I think that is not new for us. I think that Remind to me what is happening and what's already happened a few months ago when one of these guys was already suffering this problem, talk about the blockage and wake effect. So which I said the same thing. Thanks of our experience. We consider all these operating scenarios when we design, and we include all these in our future operation and maintenance costs.
I think for us, it's not a secret. And we are already taking all this when we make already in our design to avoid negative surprises. I think what we design and we make our calculation of CapEx and OpEx for coming into the auctions, we take into consideration all these potential scenarios included in our design, included in our operation cost for the future. So I think we have not the
Q1. Next question comes from Fernando La Fuente Alantra and Elkem Mavadou Blumberg. Your cost of debt fell 12 basis points in Q1 year on year. How do you expect your cost of debt to develop in the coming years in the recent if the recent increase of the bond yields continues, debt expected by year end as well.
Okay. Well, first, what I have to say is that We have most of our debt fixed even with forward swaps. So at this level, Our group debt is fixed at levels of 75%, mainly the euro and the dollar because in the Brazilian real, There is a pass through between the remuneration and the cost of debt. That is the part that we have more open and a little bit also with the British pound. So we are Obviously, if interest rates well, the loan part of the curve, that doesn't mean that interest rates are going to rise.
So this means that not necessarily an increase in bond yields will affect strongly our cost of debt. It could affect, as I was saying, the Brazilian real race, but that is compensated by a bigger by a bigger EBITDA. So in principle, obviously, if we finance our long term, that will have some impact. But we don't think it's going To be very big if it happens at least in the next couple of years. And the debt that we are expecting by the end of the year, if we including You know the PNM acquisition will be around $43,000,000,000 If we exclude that, we'll be in the $36,000,000,000 $37,000,000,000 but we expect us as the Chairman has said to to close PNM before the year end.
Antonella Biancheesi from Citigroup makes the following question. At which level are currencies hedged for 2021?
[SPEAKER IGNACIO CUENCA ARAMBARRI:] We have already done them, I would say, around 80%, 90%. We always leave a margin depending on the results, etcetera. But I think that We are comfortably fixed and at better rates what we are seeing today for example in the dollar.
Javier Suarez, Mediobanca and Elkin Mamadouff Bloomberg makes this following question. After BOEM approval, what other projects should follow Vanjar Wind in the U. S? Do You See Permitting Process Accelerating. What IRRs are we targeting?
So as I mentioned, in United States, we have already in this moment, Dinja Wind start construction. And I think we have already a Parcity, but we have already a PPA with Connecticut, so which I think is the next one. We are going to continue construction. I think one is we plan to be by 2023, another one I think is 2024, so which I think that one followed another one. So altogether, it's 1600 megawatt.
I think we have already another additional 6,000 megawatt, which I is mostly concentrated in Kitty Hawk in North Carolina And in the soon, 522 in the Massachusetts water, which I think is going to be part of the new offshore auction, which is going to be already produced in the next few months. I think it's announced new auctions in New York and announced new auction in Massachusetts and I think Long Island, I think as well, one of those. So I think that is our point the point. In terms of our returns, so I think the return of Parcities is similar levels of Vinyard. And I think we will see already for the next one.
We will try to make as we are making always that they will already and gave already some basic point over our work in all cases, which I think that has been happening up to now, which returns in most cases is over 200 basis points above the WACC, and that is our expectation. So we are already the next we start construction is already parasitic, which is already awarded. We have the PPA. We have all the team, and we are already in the process of the permitting, which I hope with the new administration that is going to take much shorter than Binjar for obtaining. And I think our plan on the other one is the 1 in 'twenty three, another one in 'twenty four, will be fully in operation.
And another one, we will already with our 7,000 close to 7,000 megawatt of CBET available, site available. I think we will participate in the new auction, which is going to appear in the next few months and for Massachusetts, for New York, for certain of New England and as well for Carolina, one of those states as well. So which I think we are working on that one. And we are very good positioned on this. I think I mentioned We have already in Boston just a very good team in design, and I think we are already making all this for development of the zones of North Carolina, which is called Kitty Hawk project and the zone 522 we won a few years ago as well for being ready for participating in disruption in the future.
Question number 13 from James Brandt, Deutsche Bank. What news markets would you like to enter in Renewables Offshore?
Well, I think we've been ready it's a good question because in the last 12 months, we've already opened very heavily the number of markets. I think we have started 15 years ago in Britain. So I think because that process takes a long time, I Now we have already 1300 megawatt already close to that one in operation. We follow with Germany. With we expanded to France, but we are already in fine construction.
We continue with Germany when they're running construction. We moved to United States, but we have already a couple of them already awarded with PPAs and we have started construction of both. And I think in the United States, we won already sites in North Carolina for Kitty Hawk. We won already site as well in the Massachusetts area, 522 area. And during the last months, we had already got new opportunities in Japan, in Taiwan, in Ireland, in Poland, in Sweden.
And we are even we are looking at some opportunities in Brazil. I think we are I'm telling you that because this project It takes, in most cases, very long period of maturity. I was telling you that we are starting with that one. In Sangria, I think if I don't remember, but it was we got already the permit of Sibet on the 2,008, 2009, 12,000 or 13 years ago. So it took 12, 13 years before this wind farm start already in construction.
So that's why I think we have to move already fast in all these things and try to get already new opportunities. But I think we I can say we are all across the globe in this moment, from Japan to the state, from Taiwan to Sweden and from Poland to Britain and from Britain to Germany and from Germany to United States or Brazil.
Last question for today comes from Javier Suarez, Mediobanca and is the following. How important do you think that for a utility is to be vertically integrated and structurally long clients versus generation? Would this mean that expansion on Renewable has to come together with a proactive supply strategy?
Well, I think we've been traditionally, yes, an integrated company, so which I think is not new for us. I think it depends on the places. I think certain, if they are not ready, you have to look who is going to buy your electricity. I think you are in a country You have already millions of customers, and I think we have dozens of millions of customers in some countries. So certainly, you have already the possibility of selling your electricity through your customers.
But if not, you have to make your you have to look for your customers as well. Unless they were already in auction, then the system already takes all this electricity. But I think we are already this very proactive supplier strategy. I can tell you, for instance, the case of Brazil, and we have started recently to We're already active on that one. I think we have in this moment some 100 of 1000 or some 1000000 of customers where we are selling electricity.
We are the same thing already doing in Britain or you are doing the same thing in Australia, where we went recently. So yes, I think we feel I'm coming from the industry, and I think it's you need in the industry, you need a factory, but you need as well a market. I am very much convinced that we need already to be very efficient in our factory, but to be very efficient in our marketing approach. So the question And some of your colleagues make before about our behavior in Spain. I was saying that our marketing people are doing very well their job, and I think that is what they have to do.
The marketing people and the sales force to do the necessary for selling in a good condition the electricity we produce. But I think that's positive in any case.
Okay. Now please let me now give the floor again to Mr. Galan to conclude this event.
So Thank you very much for being part of this conference call. As always, our Investor Relations team We'll be available for any additional information you may require. Thank you very much, but I think I would like to give you the last word. I'm optimistic