Energy transition
Driving a sustainable transition
We need energy policies and actions for a energy transition. The fight against climate change is one of the most important challenges that humanity must face in the 21st century.
The commitment to a decarbonised society is everyone's task. At Iberdrola, we are committed to spearheading the energy transition, a challenge that we undertook 20 years ago and that has made us a world leader in renewables. We are committed to the electrification of the economy, the promotion of green energy and technological innovation to guarantee a greener future for future generations.
What is the energy transition?
nergy transition is defined as a set of changes in energy production, distribution and consumption patterns to achieve greater sustainability. The aim of this process is to transform the current energy system based on fossil fuels into an electricity model based on renewable energies and other forms of emissions reduction.
The process of energy transition is not new. Other major changes have preceded the current one throughout history, such as the shift from wood to coal as a means of energy production in the 19th century and from coal to oil in the 20th century.
However, what characterises this transition as compared to previous ones is the need to protect the Earth from the worst threat we have experienced so far: climate change. A defence for which we must prepare ourselves as quickly as possible. A necessary transformation in which we must all be participants and protagonists.
The Energy Transition: Iberdrola's commitment
What benefits will the energy transition bring?
Environmental benefits
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Reduction of CO₂ -
Reducing the greenhouse effect and global warming -
Use of renewable, inexhaustible and clean energies -
Improving air quality -
Preservation of biodiversity and natural resources -
Development of more renewable energy projects
Social benefits
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Improving people's health and well-being -
Increased environmental awareness -
Boosting energy efficiency -
Conflict mitigation for scarce resources -
Energy democratisation and social equity -
Proliferation of green jobs
Climate change: a major challenge for humanity
Climate change is today's greatest environmental challenge. For years we have been experiencing unprecedented rapid global warming as a consequence of human activity, mainly due to the burning of fossil fuels that generate greenhouse gas emissions. In this sense, the electricity sector plays a key role in achieving the goal set by the historic Paris Agreement to limit the increase in global temperature to 1.5 ºC and to halt the decarbonisation of the economy through the energy transition.
The effects of climate change
The impacts of climate change are already perceptible, according to data from the World Meteorological Organisation (WMO):
The global average temperature has risen by about 1.11 °C since pre-industrial times.
The decade from 2011 to 2020 was the warmest on record.
The world's glaciers have shrunk by 33.5 metres and 76% of this loss has occurred since 1980.
The oceans have reached record temperatures in the early 2020s.
Committed to the energy transition
Only by addressing the major challenges can we achieve a resilient and planet-friendly change of model. That is why we are committed to spearheading the energy transition, a task that we set in motion 20 years ago and that has made the Iberdrola group the world leader in renewables. We are now making progress on our historic climate action plan, the most ambitious of the COP 27.
At Iberdrola, we are committed to making investments of €41 billion by 2026 to drive the energy transition, employment and net zero emissions. For us, grids are the backbone of new renewable capacity integration and will enable the implementation of new distributed solutions and services. For this reason, we plan to invest €21.5 billion in grids in the US, UK, Brazil and Spain, representing 60% of net investment.
In addition, aware of our role as a driving force and benchmark for many other companies in their goal of electrifying the economy and investing in clean energy, we participate daily in different events and meetings of multilateral organisations and alliances to promote the energy transition.
Key actions to accelerate the energy transition
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Boosting technological innovation
Technological evolution is enabling the transition of the entire sector, from improvements in power generation to the drive for smart grids and the provision of new services to customers.
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Electrification of the economy
Electrification of the economy, transport and buildings is the main energy driver of the energy transition towards decarbonisation.
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Renewable energy deployment
If the objective of the energy transition is to achieve decarbonisation, it is essential to achieve maximum integration and stability of renewable energies.
Energy transition at Iberdrola: electrification, renewable energies and innovation
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Iberdrola brings the most innovative wind power generation technologies to WindEurope
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Iberdrola closes the sale of 55% of its business in Mexico for $6.2 billion
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Iberdrola Q-Cero, the alliance for the decarbonisation of thermal demand in Spain
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Interview with Ignacio Galán at the launch of the Q-Zero Alliance for decarbonisation
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Iberdrola presents its alliance with Enlit for the energy transition
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Construction of a photovoltaic plant starts in Texas
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We will supply clean energy to Vodafone in Germany, Portugal and Spain
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Reinforcing our alliance with MAPFRE with almost renewable 450 MW in Spain
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We sign an alliance with BP to accelerate the electric mobility
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Working with Amazon to accelerate a clean energy system
ETaaS: the energy transition as a service
The energy transition is everyone's job. Part of the energy industry, increasingly aware of the effects of climate change, has been working for years to improve the sustainability of its activity. Against this backdrop, the ETaaS (Energy Transition as a Service) concept has emerged, covering all those energy services that will help companies to reduce their carbon footprint.
Read more about ETaaSETaaS: the energy transition as a service
The energy transition is everyone's job. Part of the energy industry, increasingly aware of the effects of climate change, has been working for years to improve the sustainability of its activity. Against this backdrop, the ETaaS (Energy Transition as a Service) concept has emerged, covering all those energy services that will help companies to reduce their carbon footprint.
Read more about ETaaSWhat energy policies are driving this transition in the world?
The adoption of the Paris Agreement in 2015 was a historic milestone in the global climate agenda because of the multilateral framework for climate action that was created. This pact, led by the United Nations, set the goal of limiting the global temperature increase to below 2 °C by the end of the century compared to pre-industrial levels, leaving the door open to an increase of up to 1.5 °C.
The current agreement requires all signatory countries to submit national climate contributions to be updated periodically and obliges developed countries to continue to take the lead in financial contributions.
Energy transition in Europe
The European Union (EU) was one of the first players to set a course towards the energy transition by presenting in 2007 the first climate and energy targets for 2030 based on three main pillars: the reduction of greenhouse gas emissions, the deployment of renewable energies and the improvement of energy efficiency.
The final step came at the end of 2019 with the presentation of the European Green Deal. Supported by major companies such as Iberdrola, this agreement establishes a strategic roadmap that places the just and green energy transition at the centre of political action. The commitments are based on achieving a climate-neutral EU by 2050, protecting biodiversity and developing clean energy, among others.
Current European energy targets for 2030 include:
55 % reduction in greenhouse gas emissions compared to 1990.
A 32 % share of renewable energies in total gross final energy consumption.
32.5 % improvement in energy efficiency.
Countries with pioneering energy policies
Sustainability is increasingly high on the political agenda in many countries. However, only a few of them can be considered true pioneers in adopting legal frameworks for energy transition. This is the case of Denmark, which stands out for its plan to reduce greenhouse gas emissions by 70 % by 2030 - one of the most ambitious programmes in Europe. By 2050, the country expects to be carbon neutral.
Neighbouring countries Sweden and Finland also stand out as historical forerunners of climate policies that are committed to the deployment of renewable energies and the total abandonment of fossil fuels. Various reports point to progress in green policies in other countries beyond the European Union, such as the United Kingdom, Iceland, Canada and New Zealand. However, the United Nations warns that there is still a long way to go.