Galán: "We need to increase investment in networks to make the energy transition possible"
- The Executive Chairman of Iberdrola, Ignacio Galán, says that for every euro invested in renewables, one euro should be invested in networks.
- He estimates that investments in networks will be multiplied by three or four to integrate new renewables, offer security of supply and develop the digitalisation of the system
Ignacio Galán, Executive Chairman of Iberdrola, this morning called for accelerated investment in grids. "We need to increase investment in electricity grids to make the energy transition possible," he said at the Bloomberg New Energy Finance (BNEF) summit, which brought together the sector's main leaders in London.
The president said that in order to decarbonise the economy, there must be a greater commitment to the grids. "For every euro invested in renewables, one euro must be invested in electricity grids," he said. In fact, Galán estimates that investments in grids will be multiplied by three or four to be able to integrate new renewable power, offer security of supply and resilience against extreme weather phenomena and be able to develop the digitalization of the system, so necessary for the expansion of electric mobility, self-consumption and heat pumps.
"Energy companies are ready to invest because we have the technology, the people, the talent and the capacity to make it happen. It is vital that regulators recognize this need and create the conditions for this to happen. To be able to invest in grids we need predictability, stability and attractive returns," said the Executive Chairman.
Aware of the potential of electricity grids in the transition, two-thirds of the company's investment plan for 2023 and 2025 - the company plans to invest €47 billion in its plan - will be allocated to the electricity grid activity, with the aim of giving continuity to its deployment, consolidating a solid distribution grid and providing it with flexibility, based on an ambitious digitalisation process as a key element to respond to the future needs of the electricity system.
Iberdrola already operates one of the largest electricity distribution systems in the world; more than 1.3 million kilometers of power lines and more than 4,500 substations, distributing electricity to more than 35 million people worldwide.