Avangrid, Inc. (AGR): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out how a major utility like Avangrid, Inc. (AGR) balances the old world of regulated power with the new world of clean energy growth. Honestly, their model is a fascinating dual-engine: stable revenue from serving over 3.4 million customers across New York and New England, paired with an aggressive push into renewables, backed by a planned $18.5 billion investment through 2028 to modernize the grid and expand clean capacity. It's a complex infrastructure play, so let's break down the nine essential blocks of their Business Model Canvas to see exactly where the stability and the growth meet.

Avangrid, Inc. (AGR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Avangrid, Inc. running and funding its growth, especially with its parent company taking a deeper stake.

Iberdrola, S.A. remains the foundational partner, providing both capital and global expertise as the controlling shareholder. In a move solidifying this relationship, Iberdrola, S.A. acquired the remaining $\text{18.4\%}$ of Avangrid, Inc. shares in May 2024 for $\text{\$35.75}$ per share, an investment totaling approximately $\text{\$2,551}$ million. This transaction reinforces the U.S. market as a top investment priority for Iberdrola, which announced plans to invest $\text{\$18.5}$ billion in the U.S. energy sector by 2028. Globally, Avangrid's success contributed to Iberdrola's total production surpassing $\text{66,000}$ Gigawatt hours (GWh) for the first half of 2025.

The domestic supply chain is vast, relying on a network that supports Avangrid, Inc.'s operations across its $\text{80}$ energy generation facilities. This network includes over $\text{7,000}$ U.S. suppliers, with whom Avangrid, Inc. increased its investment to $\text{\$4.3}$ billion in 2024 alone. This commitment to domestic sourcing is critical for Avangrid, Inc.'s $\text{\$20}$ billion investment plan for U.S. grid infrastructure through the end of the decade.

Regulatory bodies are a constant presence, as rate case approvals and permits are essential for expanding capacity. For instance, Avangrid, Inc. secured the final permit in November 2025 for the New England Clean Energy Connect (NECEC) transmission line, a $\text{233-km}$ high-voltage line set to deliver $\text{1.2}$ GW of hydropower from Québec to New England. Furthermore, Federal Energy Regulatory Commission (FERC) approval was received in late 2024 for Iberdrola's acquisition of the remaining minority stake.

For major construction, union labor organizations are key partners in delivering new capacity. The recent Camino Solar project in Kern County, California, is a concrete example of this partnership in action. Here's a quick look at the scale of that specific collaboration:

The involvement of organized labor on projects like Camino Solar ensures skilled workforce deployment and community benefit. You can see the direct impact through the following:

• IBEW Local $\text{428}$ members provided skilled craftsmanship for the project.
• LiUNA! Local $\text{220}$ members worked closely with contractors on the construction phase.
• The project brought meaningful, union careers offering strong benefits like healthcare and pension.

Regarding Power Purchase Agreements (PPAs), while specific commercial customer names aren't detailed here, the output from Avangrid, Inc.'s generation portfolio serves large-scale demand. The company's $\text{80}$ operating power plants generated approximately $\text{13,000}$ GWh in the first six months of 2025, enough to power about $\text{2.4}$ million U.S. homes. Also, Avangrid, Inc. currently has $\text{10}$ projects providing over $\text{1.5}$ GW of energy specifically to data centers and leading technology companies.

Finance: draft $\text{13}$-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Key Activities

You're looking at the core engine of Avangrid, Inc. (AGR), which is all about keeping the lights on and building the next generation of energy infrastructure. The primary activity here is the day-to-day running of the wires and pipes. Avangrid, Inc. manages and maintains eight electric and natural gas utilities across New York and New England, serving a massive customer base. Honestly, this utility operation forms the stable foundation for everything else they do.

The company is putting serious capital to work to ensure that infrastructure can handle future demand and weather. Avangrid, Inc. has committed to investing $18.5 billion into its U.S. electric and gas networks through 2028. This isn't just maintenance; it's about rebuilding aging assets and expanding capacity, especially to support things like data centers and major development projects across New York and Maine.

On the generation side, Avangrid, Inc. is actively building out its clean energy portfolio. They are generating renewable power from a capacity of 10.5 GW spread across 80 operating power plants coast to coast. A key part of their development pipeline involves major transmission projects, such as the New England Clean Energy Connect (NECEC) corridor, for which they secured the final permit, paving the way for energization.

To boost immediate grid reliability, especially against more frequent severe weather, Avangrid, Inc. is deploying advanced technology across its distribution companies. This focus on digital modernization is concrete and measurable. Here's the quick math on their 2025 deployment efforts:

• Deploying over 650 smart devices across Central Maine Power, NYSEG, and RG&E territories in 2025.
• These smart devices allow remote sectionalizing and rerouting of electricity.
• The technology can restore service in as little as five minutes in some outage scenarios.
• Other reliability initiatives include replacing utility poles, with 24,000 replacements planned for this year across the Northeast.

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Key Resources

You're looking at the core assets that power Avangrid, Inc. (AGR) right now, the stuff that makes their business run day-to-day. These aren't just line items; they're the physical and human capital underpinning their dual utility and renewables strategy.

The regulated utility side, which is Avangrid Networks, Inc., is built on tangible infrastructure. This includes the electric and gas distribution networks across New York and New England. As of recent reporting, this Networks segment commands a regulated utility rate base of approximately $11.7 billion. This infrastructure serves more than 3.3 million customers in New York and New England. The company operates eight electric and natural gas utilities in total.

Financially, Avangrid, Inc. holds substantial assets on its balance sheet. As of mid-2025, total assets were reported to be approximately $48 billion. This scale supports both the regulated operations and the significant capital needs of the renewables pipeline.

On the generation front, Avangrid, Inc. owns and operates a considerable renewable portfolio. The company has reached 10.5 GW of total installed energy generating capacity across 24 states in the U.S. This capacity is spread across 80 energy generation facilities. This power output is enough to supply electricity for about 3.1 million average U.S. homes.

The human capital is also a major asset. Avangrid, Inc. maintains a highly skilled workforce of approximately 8,000 employees as of 2025. That's a lot of expertise needed to manage complex grids and massive clean energy projects.

Finally, the intellectual property and expertise in large-scale offshore wind development is a critical, albeit less quantifiable, resource. Avangrid, Inc. is actively involved in this sector, which is a key part of its overall renewable strategy, backed by its parent company's global leadership in renewables.

Here's a quick snapshot of these core physical and financial resources:

The operational footprint of the Networks segment is detailed by its utility components:

• NYSEG Electric Rate Base (2023): $3,715 million.
• RG&E Electric Rate Base (2023): $2,319 million.
• NYSEG Gas Rate Base (2023): $789 million.
• Berkshire Gas distribution pipeline: 738 miles.
• CMP distribution lines: Approximately 33,165 miles.

The generation capacity is also geographically distributed, which is key for reliability:

• Capacity in the West: Approximately 3.8 GW.
• Capacity in the Midwest: Approximately 2.7 GW.
• Capacity in Texas and New Mexico: Approximately 2.2 GW.
• Capacity in the East: Approximately 1.7 GW.

The development pipeline represents future resource potential:

• New generation capacity in the development pipeline: Approximately 27 GW.

Avangrid, Inc. (AGR) - Canvas Business Model: Value Propositions

You're looking at the core promises Avangrid, Inc. (AGR) makes to its customers and the market as of late 2025. These aren't just vague goals; they are backed by concrete infrastructure and capacity numbers, which is what matters for a utility this size.

The most fundamental value is the steady, regulated delivery of power and gas. Avangrid, Inc. provides stable, regulated delivery of electric and natural gas to over 3.4 million customers across its networks business in New York and New England. That's a massive, essential service base that depends on consistent operation.

When it comes to the clean energy transition, Avangrid, Inc. is putting serious capital to work to back up its leadership claims. The company is enhancing grid resilience through a massive $18.5 billion investment plan slated through 2028, aimed at rebuilding aging infrastructure and expanding capacity. This investment is key to supporting future energy needs.

Here's a quick look at the scale of their generation portfolio, which is heavily leaning toward cleaner sources:

The company is definitely leading the U.S. clean energy transition by building out its renewables portfolio, though we see that the total capacity includes natural gas and fuel cells alongside wind and solar. Still, the commitment is clear in the numbers; they are actively growing their clean footprint.

For your large commercial users, especially those in high-growth areas, Avangrid, Inc. offers specific reliability propositions. They are focused on providing structured energy solutions and risk management, which you see reflected in their current project load:

• Currently involved in 8 active projects powering data centers.
• Has 10 projects providing over 1.5 GW of energy to data centers and AI leaders.
• Has 5 more projects under construction totaling nearly 700 MW for technology and AI firms.

This focus directly addresses the need for a reliable power supply for high-demand sectors like data centers and AI, which are driving much of the current grid investment need. The $18.5 billion infrastructure spend is designed to harden the grid and expand capacity specifically for these growth areas. That's the kind of concrete action that builds customer trust, you know?

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Customer Relationships

You're looking at how Avangrid, Inc. manages the people who rely on their power and gas-the core of their regulated utility business. For Avangrid, customer relationships are fundamentally tied to meeting mandated service levels, which is a different kind of pressure than pure market competition.

Regulated service model focused on mandated reliability and safety.

The relationship here is one of essential service provision under regulatory oversight. Avangrid's networks business serves more than 3.4 million customers across New York and New England. This service delivery is non-negotiable, meaning reliability and safety are the primary customer value propositions, especially as the sector faces load growth pressures. To be fair, maintaining this trust is harder when projections show residential electric rates could climb between 15% and 40% over the next five years. That puts a spotlight on every outage and every service interaction.

Digital engagement via mobile apps and energy management tools.

Customers are definitely interacting with Avangrid through digital channels more than ever before. This shift drives the need for seamless self-service options. You see this focus in the ongoing development and promotion of their mobile application suite and various energy management tools offered to help customers control usage and costs.

• Focus on mobile app adoption.
• Integration of energy management tools.
• Leveraging AI for service improvements.

Customer Experience and Digital Center of Excellence for service improvement.

Avangrid established its Customer Experience and Digital Center of Excellence in 2023 to consolidate strategy across digital product development, marketing, and journey redesign. Since its formation, this dedicated cross-functional unit has demonstrably increased customer satisfaction and reduced hold times for customer calls. The September 2025 Digital Summit, themed "Unlocking AI," shows a commitment to using advanced technology like artificial intelligence and machine learning to solve challenges specifically in customer service and smart grid operations.

Community engagement through local non-profit sponsorships (over $200,000 in 2025).

Beyond the meter, Avangrid builds goodwill through targeted local support. In 2025, the company supported over 80 local non-profit organizations across 20 states where it operates facilities. Through its Community Sponsorship Programme, Avangrid distributed over $200,000 to these groups, reinforcing its commitment to the immediate neighborhoods it serves. This is relationship building at the grassroots level.

Dedicated account management for large industrial/commercial clients.

For your largest energy users-the big industrial and commercial clients-the relationship model shifts to dedicated account management. These relationships focus on customized service, load management, and ensuring the high-capacity infrastructure meets their specific operational demands, which is critical given the overall grid strain.

Here's a quick look at some key customer-facing statistics as of late 2025:

Finance: draft 13-week cash view by Friday.

Avangrid, Inc. (AGR) - Canvas Business Model: Channels

You're looking at how Avangrid, Inc. gets its product-reliable electricity and gas-to the end-user, which is a mix of regulated monopolies and direct energy sales. It's a massive physical footprint coupled with modern digital interfaces.

The core of Avangrid, Inc.'s delivery system is its physical infrastructure, which is heavily regulated in specific geographic areas. This forms the backbone for serving its utility customers.

For its wholesale power business, Avangrid, Inc. uses direct, long-term contracts to secure revenue and manage portfolio risk. These Power Purchase Agreements (PPAs) are key for its renewable generation assets.

• Direct PPA with CPS Energy extended to 320 MW from the Peñascal wind farm.
• Signed a 57 MWdc (41 MWac) solar PPA with Amazon for the Oregon Trail Solar project.
• Executed a 120MW PPA with Portland General Electric (PGE) for the Tower Solar project.
• Owns and operates 80 energy generation facilities across the U.S., totaling 10.5 GW of power capacity.
• Currently has 10 projects supplying over 1.5 GW to data centers, with nearly 700 MW more under construction.

The regulated utilities use standard customer service channels to interact with the 3.4 million customers they serve. You see this in their digital offerings and their centralized operational oversight.

• Digital self-service portals and mobile applications are used for billing and outage reporting.
• A 24/7 National Control Center manages the real-time portfolio for the generation assets.

Finance: confirm the latest customer count for United Illuminating (UI) and The Southern Connecticut Gas Company (SCG) to refine the 3.4 million total by end of Q4 2025.

Avangrid, Inc. (AGR) - Canvas Business Model: Customer Segments

You're looking at the core groups Avangrid, Inc. (AGR) serves across its Networks and Power businesses as of late 2025. It's a mix of regulated utility customers and wholesale power purchasers.

The utility customer base in New York and New England is substantial, driven by the operations of its eight electric and natural gas utilities.

For large-scale power needs, Avangrid, Inc. is actively serving major energy consumers, particularly those in high-demand sectors like technology.

• Data centers and technology/AI companies are currently served by 10 projects, providing more than 1.5 GW of energy.
• An additional 5 projects, totaling nearly 700 MW, are under construction to meet further demand from these large off-takers.
• Avangrid, Inc. operates 80 energy generation facilities across the United States.

The Renewables fleet targets wholesale energy markets, selling power generated from its substantial asset base. The total generation capacity across all facilities is 10.5 GW.

Here's a look at the scale of the power generation portfolio that feeds these markets:

Engagement with state and municipal entities centers on grid modernization and clean energy mandates, often involving significant capital investment or federal contract awards.

• Avangrid, Inc. has an announced investment plan of $20 billion in U.S. electrical grid infrastructure through 2030.
• A specific investment in Ithaca, NY, totals $41 million across five projects to improve local electrical grid capacity.
• The company secured a $425 million capacity contract from the U.S. Department of Energy for its Aroostook Renewable Project in Maine.

Avangrid, Inc. (AGR) - Canvas Business Model: Cost Structure

You're looking at the heavy investment required to keep the lights on and the gas flowing across New York and New England. The cost structure for Avangrid, Inc. (AGR) is dominated by the sheer scale of its physical assets. This isn't a software company; it's about steel, wires, and pipes that need constant upkeep and massive upgrades.

The most significant outlay is heavy capital expenditure (CapEx) for infrastructure. You see this commitment clearly in the latest plan: Avangrid, Inc. has announced plans to invest $18.5 billion in U.S. electric and gas infrastructure by 2028. This builds on prior commitments, like the $\mathbf{\$20 \text{ billion}}$ investment planned through 2030 to rebuild and strengthen critical infrastructure in the Northeast. This CapEx is designed to reinforce utility networks, expand capacity for things like data centers, and harden systems against severe weather, which helps avoid escalating storm restoration costs down the line.

Next up is procurement costs for equipment and services. This is where the infrastructure spending translates into direct supplier payments. Honestly, Avangrid, Inc. is a major domestic spender. They grew their investment with U.S. suppliers by 16% compared to 2023, hitting $4.3 billion spent with U.S. suppliers in 2024. They partner with over 7,000 suppliers across all 50 states to source American-made equipment for their utility and power generation operations.

The day-to-day running of the business involves substantial operating expenses. These cover everything from routine utility maintenance to the unpredictable costs of storm restoration and labor for their approximately 8,000 employees. Here's a quick look at how total operating expenses have trended, based on their reported financials (in millions USD):

You also have to account for the cost of money. Given the massive $\mathbf{\$18.5 \text{ billion}}$ CapEx plan, interest expense on debt financing is a material line item. For instance, their Total Debt was reported at $\mathbf{\$12,965 \text{ million}}$ at one point, which carries a financing cost. Looking at the income statement, the Net Interest Expense was $\mathbf{-\$409 \text{ million}}$ for Fiscal Year 2023, rising to $\mathbf{-\$487 \text{ million}}$ for the Trailing Twelve Months ending September 2024. If interest rates climb, that number defintely gets bigger.

Finally, there are the costs associated with operating under state oversight. Regulatory compliance and rate case preparation expenses are ongoing. While I don't have a specific dollar amount for the compliance budget for late 2025, you know these costs are real because the company actively engages in advocacy, such as securing the New York Utility Corporation Securitization Act to resolve legacy storm debt exceeding $\mathbf{\$750 \text{ million}}$ for their NYSEG and RG&E customers. Furthermore, their utilities are subject to periodic rate reviews by commissions like the NYPSC, MPUC, PURA, and DPU, all of which involve significant administrative and legal preparation costs.

Here are the key cost drivers you need to track:

• Capital Intensity: $\mathbf{\$18.5 \text{ billion}}$ planned investment through 2028.
• Debt Servicing: Interest Expense trending toward $\mathbf{\$500 \text{ million}}$ annually.
• Supply Chain: $\mathbf{\$4.3 \text{ billion}}$ spent with U.S. suppliers in 2024.
• Operations: Total Operating Expenses near $\mathbf{\$7.4 \text{ billion}}$ recently.

Avangrid, Inc. (AGR) - Canvas Business Model: Revenue Streams

You're looking at how Avangrid, Inc. (AGR) actually brings in the money, which is really the core of its business model, especially now that it's part of the Iberdrola Group following the May 2024 acquisition. The revenue streams are clearly split between its regulated utility operations and its growing renewables portfolio. Honestly, the regulated side provides the stability you want to see in a utility.

The primary, most predictable income comes from Regulated tariff revenue from the Networks business. This unit manages eight regulated electric and natural gas utilities serving customers across New York, Maine, Connecticut, and Massachusetts. Revenue here is based on approved rate plans, like the ones driving Networks segment earnings in New York and Maine, which contributed to a segment earnings of $152 million in the second quarter of 2024. You can expect this to be a steady flow, tied to the rate base and allowed returns.

For the forward-looking picture, the Estimated 2025 total revenue projected at nearly $8.90 billion is the number you should anchor to for planning purposes, even though the trailing twelve months revenue as of late 2024 was reported at $8.70 Billion USD. This projected growth reflects the combined strength of both segments moving into the new fiscal year.

The Renewables business drives revenue through Power sales revenue from the Renewables business via long-term PPAs (Power Purchase Agreements). Avangrid, Inc. targets having over 80% of its renewable capacity secured this way to limit exposure to volatile spot markets. As of September 30, 2024, about 77% of capacity was contracted under PPAs with an average term of 10 years, with another 9% hedged. This structure locks in cash flows for the long haul.

Beyond the contracted power, you also capture income from Wholesale market sales of generated electricity and renewable energy credits (RECs). This portion is more exposed to market fluctuations but can provide upside when power prices spike, as seen with some merchant price increases noted in the third quarter of 2024 results. For context on the scale, Avangrid's portfolio produced approximately 13,000 Gigawatt hours (GWh) of electricity in the first six months of 2025 alone, enough to power about 2.4 million U.S. homes.

Finally, there's Revenue from transmission services (e.g., NECEC project). The New England Clean Energy Connect (NECEC) project, a joint venture with Hydro-Quebec, is a major component here. While initial estimates suggested a $950 million investment, the total planned spend is now closer to $1.5 billion. This project is designed to generate revenue through Tariff Service Agreements (TSAs) with Central Maine Power (CMP) and Massachusetts utilities, providing capacity for 1,200 MW of clean hydropower. Older estimates suggested this could yield roughly $60 million a year in net income over its 20-year contract life.

Here's a quick look at some key operational metrics that feed these revenue streams, based on the latest available segment data:

You should note that the Networks segment earnings in Q2 2024 were significantly up, reaching $152 million, compared to $85 million in net income for the entire company in Q2 2023. This highlights the importance of the regulated utility performance to the overall top line.

The Renewables segment also saw strong performance in the first half of 2024, with adjusted earnings of $165 million for the first half of 2024, driven by strong balancing resource performance and increased pricing. Finance: draft 13-week cash view by Friday.