Two-thirds of the investment will be for Scotland, primarily to develop both onshore and offshore wind farms, smart grids and carbon capture technology.
Iberdrola chairman Ignacio Galan said that the company will continue to act as a driving force behind development in Scotland and the Basque Country, two regions that are very important to the company and where it has significant plans for the future.
In February, Iberdrola said that its total investments over the period 2010-2012 may reach €18bn, including €7bn in the US.
Through its subsidiary ScottishPower, Iberdrola aims to play a key role in the UK energy sector and contribute to the plan to curb greenhouse gas emissions through its investments in wind power, nuclear energy and clean coal.
