The Spanish utility and green power heavyweight Iberdrola has revealed that its net earnings in the second quarter grew by 35% against the prior-year period.

Iberdrola recorded net income of E414.6 million, up from E306.4 million a year ago, but its main Spanish electricity operations saw pretax earnings decline by 2.3%. This is in part due to the cap imposed on wholesale prices by the Spanish government, which is harming the generation side of Iberdrola’s domestic business.

The company – Spain’s number two power generator – cited its renewables arm, international business and property gains as the key drivers behind the profit growth, the strongest seen since it adopted IFRS accounting rules 18 months ago.