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19/01/2024In Davos: Ignacio Galán defends the importance of energy storage to boost investment in renewables At Davos Forum, the Executive Chairman of Iberdrola , Ignacio Galán, defended the importance of energy storage to boost investment in renewables – during his participation in the session Tripling Renewables: Make It Rapid and Responsible, together with the European Commissioner for Energy, Kadri Simson, and the American politician and US Special Presidential Envoy for Climate, John Kerry. "We need to invest in electricity distribution networks and in storage : not only short-term storage such as batteries, but long-term storage such as hydroelectric pumping, as well as promoting interconnections between countries," explained the Executive Chairman of Iberdrola. Regarding the goal of tripling renewables, Galán is optimistic: "We already have the technology, financial resources and ambition to make it happen. But we need to move faster”. He also emphasised the importance of involving local communities in promoting renewable installations. "I have 25 years of experience. I grew up in a village; I know countryside people, and big companies have to get involved with local communities". In this sense, he reiterated that "agreements must be reached with local communities before starting anything.” In this context, alternatives must be proposed to generate new industries and create employment, "and the electricity sector is in a position to do this", he asserted. In Galan’s opinion, the most important thing is to transmit this idea to the population. Communities "have to see an opportunity not in electricity production but in creating a new economy around it," he explained. Finally, he highlighted the future of the electricity sector together with Artificial Intelligence. "We have to optimise our production, especially in the areas where it is most needed.” READ MORE
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18/01/2024"The best to do for the planet and for people is to invest in renewables," states Ignacio Galán on CNBC "The best thing to do for the planet and for people is to invest in renewables. They are more efficient, cheaper, cleaner, and they are now creating millions of jobs worldwide". The Executive Chairman of Iberdrola , Ignacio Galán, made this statement in a live interview on CNBC, on the occasion of the Annual Meeting of the World Economic Forum in Davos , in which he is participating. Galán also highlighted how the world is aware of the need to boost energy efficiency and energy self-sufficiency: "We cannot depend on third parties". In his opinion, in order to be able to finance the tripling of renewables so necessary to achieve the decarbonisation targets, a coherent message must be given to the markets. Therefore, "extraordinary taxation in Europe makes no sense. Energy prices have already risen, in some cases, as a result of political decisions", he warned. Furthermore, Ignacio Galán defended the key role of grids in the energy transition in order to meet climate objectives, integrate renewables into the system and thus guarantee security of supply. In this sense, he recalled that "we need more interconnections" and "more investment, more than double". "Grids have been forgotten for years. It is good that the International Energy Agency and the European Commission are focusing on them". Along with renewables and grids, he stressed the key role of storage technologies, among which pumped hydroelectric installations stand out. He also mentioned the article published by the prestigious financial newspaper Financial Times on the Tâmega gigabattery, a key Iberdrola project in Portugal, which has involved an investment of more than €1.5 billion. If you want to see the full interview with Ignacio Galán on CNBC, you can find it here . READ MORE
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18/01/2024Business leaders are overwhelmingly positive about the green transition, but more needs to be done to implement green skills programmes Most business leaders believe that responsibility for driving the green transition rests with the private sector rather than policymakers, with the vast majority anticipating more opportunities than challenges. However, rapid progress to a lower carbon economy is under threat from the failure of companies to develop and source sufficient green skills, according to the Green Skills Outlook – new research from Economist Impact, supported by Europe’s largest electricity company, Iberdrola. The research explores the impact of the green transition on global labour markets and is based on a scoping literature review and data audit, a global survey of 1,000 business leaders, sector-specific workshops, and the convening of an advisory board of subject-matter experts. It looks at nine countries and four sectors of the economy playing a central role in the green transition, including IT and Technology, Construction and Infrastructure, Transport and Logistics and Energy and Utilities. Despite an overwhelming majority (79%) of business leaders agreeing that skills will be the most important driver of the green transition, just 55% are implementing or planning to implement relevant programmes to create these for their workforce. This leaves a large proportion of the workforce without training in the skills necessary for a greener economy, and risks obstructing progress on the green transition, at a time when it is gaining urgency in order to tackle the climate crisis and enhance energy security. Accordingly, the Green Skills Outlook found that 62% of global business leaders say shortages in green skills will create bottlenecks that will delay the green transition. Green transition will have net-positive impact on job creation As greener industries gain prominence, the Green Skills Outlook shows that business leaders are overwhelmingly optimistic about the green transition, with 79% saying it presents more opportunities than challenges for their organisation. European business leaders, albeit generally optimistic, show a slightly more cautious stance. Smaller majorities of survey respondents in the UK (68%), Germany (72%), France (74%), and Spain (75%) were confident that opportunities will surpass challenges compared to near unanimity (94%) in Brazil and China (94%). However, the green transition is expected to have a net-positive impact on job creation, with particular benefits seen in clean energy, electrification, energy efficiency and research and development. Almost three quarters (73%) of respondents agreed that the green transition will create more jobs than it eliminates, and 81% say that it will create higher-quality jobs for workers. At a global level, the International Labour Organization (ILO) estimates the transition could lead to 25 million net new jobs by 2030, particularly in green sectors and activities. For example, in the energy sector, the expansion and maintenance of electricity grids and storage facilities provides millions of additional jobs around the world, up to 3,500 jobs per 100,000 jobs in Europe. The growing demand for green skills across the economy The green transition will require all workers to acquire green skills – not just those working in explicitly green roles. Such skills will range from non-vocational, non-technical soft skills that are needed to excel in green jobs, to more technical, role-specific skills. For example, over a third (38%) of respondents in the Energy sector identified smart grid implementation as one of the most important green skills to enabling their organisation’s green transition. More broadly, the most important cross-sectoral green skills are sustainability and disclosure reporting (39%), environmental impact assessment (35%) and sustainability compliance (32%). However, skills in compliance and disclosure, and reporting remain some of the most challenging to source. In addition, soft skills will be important to supporting business leaders’ efforts in transitioning their businesses towards greener ways of working. The top three which businesses are looking for are environmental awareness (45%), innovation and creativity (37%), and problem solving (31%). Innovative strategies from governments, educational institutions and the private sector are required to bridge emerging green skills gaps The Green Skills Outlook shows that there is overwhelming positivity for the green transition from business leaders globally, and two thirds (63%) say responsibility for leading it ultimately lies with them, over policymakers. However, bridging emerging gaps in green skills will be imperative to driving the transition forward, and will require coordination and innovative strategies on the part of governments, educational institutions, and the private sector. The role of government policy in fostering the green transition cannot be overstated. The top three policies that business leaders think should be prioritised to ensure the supply of green skills in the labour market meets the needs of the green transition are: * Support for businesses' investment in up-skilling and re-skilling programmes (e.g. through grants or tax relief) (53%) * Support for the establishment of green skills courses at educational institutions (e.g. through strategic funding) (49%) * Adapting existing work and training programmes for the unemployed to increase the emphasis on and support for green skills (46%) As well as introducing active labour market policies that nurture the supply of green skills, in the longer term, governments will need to create an enabling environment that incentivises the greening of the economy more broadly. Such as through stricter standards, putting a price on emissions, and removing subsidies for polluting industries, such as fossil fuels. Ignacio Galán, Iberdrola's Executive Chairman, says: “The opportunities presented by the transition are vast, but it is critical that both businesses and policymakers are sharply focused now on ensuring people are equipped with the right skills and training. Without skilled workers, the transition will not be delivered, and the benefits will not be realised." “As the world emerges from COP with a clear focus on phasing out fossil fuels, as well as tripling renewables in six years, every company in every sector is fully aware that change is coming fast." “Those who plan well will lead and be at the forefront of the transition. For two decades at Iberdrola we have been helping workers and industries to refocus and retrain to make the most of the green transition. We have helped aeronautics companies to take the lead in wind power, shipbuilders to diversify into offshore wind fabrication, and oil and gas workers to retain their offshore expertise, but switching to renewables." “Iberdrola and the energy sector also have much more to do, and we are not standing still. We continue to work with schools, universities and policymakers across the world, as well as delivering our own new initiatives, such as the Global Green Employment platform, and cross-sector initiatives, such as Reskilling 4 Employment. In producing this Outlook we also now have detailed thoughts from a thousand business leaders across the world, giving us valuable insight into where the pinch points are and how they can be addressed.” Commenting on the demand for green skills, Kevin Nilsen, President of ECO Canada, says: “All individuals will need to acquire green skills - if a person doesn’t have basic green literacy skills, they won’t be able to effectively carry out their role.” On the role of different stakeholders in the green transition, Simon Schmid at SkillLab emphasises, “What is important is having an ecosystem that enables communication and alignment between educational institutions, employers and governments.” Matus Samel, Senior manager and the Green Skills Outlook programme lead at Economist Impact, says: “We see green skills as the key to a just and equitable transition to a more sustainable economy. The Greek Skills Outlook highlights that much more needs to be done across private and public sectors in advanced as well as emerging economies to enable workers and communities to participate in this crucial transition.” READ MORE
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17/01/2024Ignacio Galán in Davos: "Electrification with renewables and the creation of value for society in the form of lower emissions, better prices, better service and more employment are the cornerstones of our strategic plan". "In a little over two months, we will present the company's new strategic plan," explains Iberdrola's Executive Chairman, Ignacio Galán, in an interview with the prestigious Spanish business daily Expansión, on the occasion of his speech at Davos Economic Forum. During the next Capital Markets Days, Galán asserted that we will have a "strategic thrust based on electrification with renewables, grids and storage" and "a social axis with value creation for society in the form of lower emissions, better prices, better service and greater activity and employment," he asserts. "Financial strength, investor remuneration and growth" will be the pillars of the financial axis. You can read the full interview at: Ignacio Galán: "Iberdrola will grow and will continue to invest and increase its dividend" | Energía (expansion.com) READ MORE
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17/01/2024Iberdrola and Norges Bank Investment Management double their alliance, with more than €2 billion renewable Iberdrola and the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, are to double their clean energy investment alliance, adding 1,300 MW of additional renewable energy capacity to unlock more than €2 billion joint investment over the next three years. As of today, 674 MW of wind and solar has been added to the alliance, with the rest to be included in the coming months, to reach a total capacity of 2,600 MW. The 674 MW of new renewable energy capacity is in the development stage – 40% wind and 60% solar PV – across the Iberian Peninsula. Final negotiations on exclusivity are also taking place on including an additional 643.5 MW of operational and under development solar PV capacity to the alliance. Both companies have joined forces to accelerate decarbonisation in the Iberian Peninsula, and the agreement could be extended in the future to other countries. Iberdrola will have a majority stake of 51% in the assets. The executive chairman of Iberdrola, Ignacio Galán, announced the agreement during meetings at the World Economic Focus held in Davos. "Today we have expanded our clean energy alliance to advance the development of renewables in the Iberian Peninsula in a faster, more consolidated and competitive way. Innovative agreements like this allow us to combine our knowledge in clean energy and our financial strength with those of Norges Bank Investment Management, a truly progressive partner, building on our alliance that has been growing for many years," said the executive chairman. Norges Bank Investment Management CEO, Nicolai Tangen, said: “We are really pleased to announce this new important deal with our great partner Iberdrola. It gives us more critical mass in Spain and is also our first step into Portugal. We look forward to adding more attractive renewable infrastructure projects going forward.” Under the terms of the agreement, the valuation of 100% of the 674 MW now incorporated amounts to €627 million, excluding extra margins for asset management, provision of operation and maintenance services, as well as other corporate services. This renewable portfolio will have the capacity to supply energy to more than 400,000 homes each year, resulting in more than 350,000 tonnes of CO2 avoided per year. The perfect partner to co-invest Norges Bank Investment Management, which manages Norway's sovereign wealth fund, has assets under management of around €1.4 trillion and stakes in more than 9,000 companies. It owns on average 1.4% of all listed companies in the world and 2.5% of all listed companies in Europe. Norges Bank Investment Management is also one of Iberdrola's main shareholders, holding a stake of 3% for more than seven years. As a result of this relationship, Norges Bank Investment Management has decided to make its first direct investment in renewable assets in Spain with Iberdrola, the largest European electricity company by capitalisation. Iberdrola and Norges Bank Investment Management have formed a secure alliance, between two preferred partners, which could be extended to additional renewable opportunities in other geographies. Partnerships for growth In recent months, Iberdrola has closed several long-term alliances to promote the decarbonisation of the economy: * In December, Iberdrola closed an agreement with Masdar to seek to co-invest €15 billion in offshore wind and green hydrogen in Germany, the United Kingdom and the United States * Masdar also signed an agreement last year to co-invest in the 476 MW Baltic Eagle offshore wind farm , which valued the project at €1.6 billion * Last September, Iberdrola partnered with GIC for the expansion of transmission networks in Brazil for 430 million euros * The original alliance with Norges Bank Investment Management was to develop 1,265 MW of renewable energy in Spain * The company has signed an agreement to sell more than 8,400 MW of gas-fired combined cycle plants in Mexico for $6 billion . * Iberdrola and MAPFRE have continued to advance their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW. * Iberdrola and BP also signed a strategic alliance in March to deploy 11,700 fast charging points in Spain and Portugal. * In addition, in 2022, Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio. READ MORE
