#decarbonisation

Contracts for Difference (CFDs) are increasingly consolidating their position as one of the most effective tools for driving investment in renewable energy, guaranteeing stable prices and protecting both companies and consumers from electricity market volatility. Originally conceived as a public support mechanism for clean energy, CFDs provide predictable revenues for producers while promoting the decarbonisation of the energy system. Similar structures also exist in the free market, such as bilateral Power Purchase Agreements (PPAs), which can be designed following the same underlying model. In this article, we explain what CFDs are, how they work, their benefits and limitations and why they are set to play a key role in energy security and the transition to a more sustainable model, with particular focus on their application in Europe and Spain and Iberdrola’s leadership in this field.

The International Energy Agency’s World Energy Outlook 2025 offers one of the most comprehensive analyses of how global energy systems are evolving at a time of profound transformation. Its conclusions are clear: electrification, supported by renewable energy, modern networks and digital technologies, is now the most cost-effective and secure pathway to achieving net zero emissions. The report sets out three scenarios to understand how different policy and technology choices could shape the coming decades. In all of them, electricity plays a central role.

Iberdrola España , the Group's subsidiary in Spain, and Grupo Disfrimur are moving forward with their decarbonisation and electrification strategy under the framework of the agreement reached between the two companies to commercialise...

Iberdrola was chosen by the multinational pharmaceutical Bayer for promoting industrial electrification using innovative solutions, key to meeting European decarbonisation targets. The German company gives the Bayer Procurement Decarbonisation...

Organisations such as the International Energy Agency (IEA) consider carbon capture, use and storage (CCUS) technology essential to achieving net zero emissions targets and tackling climate change. This technology not only helps reduce emissions but also enables the reuse of CO₂ in sectors such as construction and synthetic fuel production.

Iberdrola and Air Liquide have signed a long-term power purchase agreement (PPA). Renewable energy will be supplied to Air Liquide to support its operations in Spain and Portugal . The agreement is the result of close collaboration between...