Digital transformation and innovation

Taking maximum advantage of digitalisation necessitates a new corporate culture and different ways of working. Within Iberdrola group, various technologies and tools are being implemented along these lines:

• Microsoft Yammer: a corporate business network for staff around the world.
• The use of Microsoft Teams, as a crucial collaborative tool for implementing remote working throughout the group.
• Workplace transformation: the digital workplace uses Microsoft O365 productivity tools and encourages mobility, making it possible to work from anywhere, anytime.
• The implementation of an agile methodology not only for software development projects but in many areas of the company.
• Digital Mentoring programme aimed at employees, with the objective of contributing to the process of digital transformation in the company, as well as the creation of opportunities to transmit knowledge and experiences and foster an environment of teamwork.

Iberdrola believes that blockchain is a key tool in speeding up the process of decarbonising the economy, as it makes transactions traceable, secure and fast. The company uses this technology for a variety of tasks:

• Participation in the Alastria network.
• Marketing operations for wholesale energy.
• Certification of the origin of renewable energy.
• Document authentication and certification.
• Carrying out of financial transactions in asset management scenarios (contracts between companies).
• The Cryptotrust: platform: facilitates the assessment of third parties, providing efficiency and reliability on matters of compliance to these information exchanges.

Robots and drones support humans in difficult and hazardous operations, which improves work efficiency. Some of the uses to which Iberdrola puts these devices are:

• Drones to inspect wind farm components where access is tricky, such as turbine blades, in Spain and Mexico.
• Inspection procedures at hydroelectric plants (water pipes) and thermal power stations (steam turbines).
• Robots to inspect underwater pipework in combined cycles and underwater deposits at the Cofrentes nuclear power plant.
• The use of drones in the distribution network for: applying LIDAR technology to inspect high voltage lines using thermal imaging; corrosion on poles; reducing service downtime after extreme weather conditions and emergencies in the US; detecting fraud through recognition of images captured by drones in Brazil.

The company uses Augmented Reality and Virtual Reality in the following ways:

• Technical training school in Madrid and on the Bilbao Campus that simulates a substation and uses virtual Geographic Information Systems (GIS) in 3D, VR headsets and holograms to train workers and check the design of thermal plants.
• Training and assessment simulator for engineer training on renewable energy operations and maintenance.
• Mobile devices with Augmented Reality for undertaking field operations on overhead cables and pipework systems.
• Augmented Reality technology which guides field engineers remotely using digital information and smart glasses.

Thanks to advanced digital communication in devices, systems and internet services, Iberdrola offers improved and faster service to customers, guaranteeing efficiency and safety. Some applications of the Internet of Things are:

• CORE (Renewables Operation Centres): the platform from which the group operates and controls its renewable generation facilities, in a way that is centralised and standardised in the different countries in which it operates.
• Smart Home: intelligent climate, lighting etc. control from just a smartphone.
• Asset Smart Tagging (NFC): a mobility solution for network assets.
• Biometric technology to ensure the correct identification of shareholders during the General Shareholders' Meeting.
• STAR Project: implementation of smart meters in Spain, the UK, the US and Brazil. The company expects to install 21 million smart meters by 2025.
• Supervision of UK wind power plants using data and visual sensors.
• Smart Buildings: management of spaces (sensors that measure real time occupation) and facilities (automated control of heating, lighting, electrical systems, etc.).

The virtual replication of a product, service or system allows the company to anticipate possible problems and do risk-free testing of new features before launching them. Iberdrola has used digital twin technology for:

• Increasing the capacity of the fuel handling crane at the Cofrentes nuclear plant. The actual crane was implemented using digital twinning and machine learning models were used to anticipate potential problems.
• Optimising combined cycle plants using the digital twin of a gas turbine, with the aim of adjusting the operation of the turbine in question to adapt to different climatic conditions and energy demands.

Mobile technology is transforming the company, customer service and the way work is carried out on a daily basis. Iberdrola applies it in environments as diverse as:

• Operation and maintenance tasks in the areas of Renewables, Networks and Generation.
• Mobility for internal employee processes: SAP Fiori implementation for the Procurement Department.
• Online management of wind farms.
• Apps for customers, investors and consumers, such as the Iberdrola Charging App for electric vehicles and the Investor Relations App.
• Inspections and mobility in reception procedures for new Renewable and Network facilities.
• TechLocker: a locker to supply staff with small IT devices, using their smartphones.

The group is working on new solutions using Big Data:

• The MeteoFlow, system, which has been predicting the production of the group's renewable facilities for over 20 years by analysing meteorological variations, has incorporated new Big Data techniques to make the most of the vast quantities of asset information gathered, and the latest climate prediction models.
• Fraud detection and minimisation of distribution network losses, as well as maximising the efficiency of inspection campaigns (by up to three times).
• Big Data analysis for predictive maintenance for offshore turbines.
• Advanced analysis of information received from smart meters for decision-making and energy demand prediction.
• Analysis of customer behaviour when using websites and apps.
• Customised plans y segmentación de los clientes: Smart Mobility, Smart Home y Smart Solar, Planes a Tu Medida, etc.
• Sedar project (High Resolution Wind Power Simulation): simulation software that makes it possible to determine the best place to site a turbine.

Iberdrola continues to develop new capabilities through the application of Artificial Intelligence and Machine Learning to a variety of processes, helping with decision-making:

• Early identification of anomalies and automatic identification of faults in photovoltaic plants.
• Application of Machine Learning techniques to forecast daily flow and predict the production of hydroelectric plants.
• Iberdrola operators use Machine Learning models to predict market liquidity, long-term production, etc.
• Machine Learning to predict natural disasters that could affect infrastructure.
• Application of RPA (Robotic Process Automation) technology to automate processes.
• Development of AI models to predict faults in onshore turbines components.
• Speech Analytics: real-time voice analysis of conversations with customers who phone Customer Services, to determine their state of mind.
• Algorithms to offer the most suitable tariff to each customer depending on their consumption habits and patterns.
• Use of chatbots as virtual assistants in customer relations.

Cloud Computing is based on offering services (hardware, platform or applications) over the internet and using them according to pay per use model. The strategy of software providers and market trends are forcing companies to use this type of paradigm, and currently the cloud is one of the keys in the digital transformation of companies.

Iberdrola only considers cloud scenarios that comply with the group's privacy and security policies. Thus:

• Only four of the 82 essential company systems have moved to the cloud, following the software as a service (SaaS) concept.
• Only 7 % of inherited infrastructures are in the cloud and offered in the infrastructure as a service (IaaS) mode.
• Some cases of cloud usage are of interest because they provide greater scalability, flexibility, improved performance and cost reductions.
• Iberdrola uses private, hybrid or public clouds depending on each business case.

In conjunction with the Cybersecurity department, the group has implemented a Global Security Action Plan 2019-2020, which incorporates various security measures and deals with different threats and vulnerabilities:

• With the introduction of new standards set by the General Data Protection Regulation (GDPR) and the recommendations of KPMG auditors, it has become necessary to protect the company's data and improve access control to the business applications.
• Automated analysis of incoming and outgoing malicious traffic on the internet as well as encryption of credentials.
• Improved incident detection and response. All businesses have backed the initiative to technologically enhance the response team in the event of IT security incidents (CSIRT).
• Greater protection for devices and servers against advanced threats.