ENERGY TRANSITION AND DECARBONISATION

We are 20 years ahead of the current energy transition

#environmental sustainability #society #climate change

Iberdrola group is committed to a clean, reliable and smart business model that replaces polluting sources of energy with clean ones and intensifies the necessary decarbonisation and electrification of the world economy. A vision that has enabled us to gain 20 years on the current energy transition.

The fight against climate change is one of the biggest challenges humanity must face in the 21st century and we all need to be involved in the process of moving toward a decarbonised economy based on renewable energies. The minimum 32 % renewable energy target, set by the European Parliament and the Council for the 2030 Renewable Energy Directive is achievable, but it will only be possible in a scenario of a high level of decarbonisation and electrification of the economy.

Main benefits of the decarbonisation and electrification of the economy.#RRSSMain benefits of the decarbonisation and electrification of the economy.

Iberdrola group is committed to leading the energy transition, a task that it began 20 years ago, and in which it has invested €100 bn since then, making it the world leader in renewables. These investments, targeted at the electrification of the economy, innovation and technological advances as well as greater connectivity for the consumer, will exceed €10 bn in 2020 — 40 % up on the average for the last three years — and will translate into up to 4,000 new MW of installed capacity — an increase of 8 %. At the close of 2019, €31 bn were already in place or under construction and a total of 5,500 new MW were installed — compared with the 1,000 MW average for the preceding years.

Ignacio Galán, Iberdrola group chairman

The strategic vision and the company's capacity for delivery have enabled us to gain 20 years on the current energy transition

As part of the journey toward a sustainable future, the group has taken on its own commitments with regard to decarbonisation: the company has set a target to have virtually zero emissions in Europe by 2030 and become carbon neutral globally by 2050. Currently, our CO2 emissions remain two thirds below those of our European competitors.

This commitment to reducing emissions and driving the decarbonisation of the economy by promoting clean energy has led S&P Platts to recognise Iberdrola with the Energy Transition award, the only award not subject to nomination and based on an objective independent study.

2019 Energy Transition Award.#RRSS2019 Energy Transition Award.

Iberdrola is leading the energy transition towards a sustainable model through its investments in energy from renewable sources, smart grids, large-scale energy storage and digital transformation in order to offer its customers the most advanced products and services.

LEADERS IN RENEWABLE ENERGY

The commitment to an emission-free environment places high importance on further development of renewable energies. Mass deployment of these energies would certainly reduce emissions, but that's not all: it would also generate and sustain quality employment and increase the competitiveness of the industry. "Fighting climate change is far from a problem for us, it's an opportunity", as stated by the chairman of Iberdrola group, Ignacio Galán, during the Climate Action Summit 2019, held in New York on 23 September.

Galán explained that "for Iberdrola, the energy transition started 20 years ago", when the company pioneered investments in renewable energy sources. Since that time, "we have shown that doing things in a way that respects the environment does not hurt shareholders nor workers, but benefits society", he told.

Iberdrola is a global energy leader and the first producer of wind energy in Europe. At the end of 2019, Iberdrola had 52,082 MW (megawatts) of installed capacity, of which 76.8 % used zero-emissions technology. Iberdrola already generates 100 % of its energy with zero emissions in countries like the UK, Germany and Portugal. In 2020 we will continue to strengthen our position in other markets such as Italy and Greece and will commence our roll-out in others e.g. Australia.

 Renewable energies, key in the fight against climate change

LEADERS IN SMART GRIDS

The energy transition requires significant investments in the modernisation, digitisation and automation of networks to ensure an efficient, safe and reliable transition. New network equipment, software, IT applications and advanced communication systems will all need to be developed. The need for these technology solutions brings about investment in R&D, innovation and knowledge. It also contributes to the creation of an industrial framework which can also be exported, generating even more value.

The Iberdrola group is now a world leader in network efficiency and smart meter following its deployment of one of the world's most advanced smart grids in Spain, Brazil, the US and the UK.

Distribution networks in the Iberdrola group.#RRSSDistribution networks in the Iberdrola group.

 Smart meters installed by Iberdrola [PDF]

LARGE-SCALE ENERGY STORAGE SYSTEMS

The company is a leader in energy storage with a capacity of 4,400 MW installed using pump technology, the most efficient energy storage method currently available, as it does not release any polluting emissions into the atmosphere and performs much better than the best batteries on the market.

Iberdrola currently has five battery storage projects: three in Spain (the most important of which is Caravaca de la Cruz in Murcia — a first for Spain —, with 3 MWh capacity, as well as the one at Iberdrola Campus in Madrid, and SAGER, in Vitoria); one in the United States (Oregon), and one more in Brazil (Noronha).

In addition, the new facility to be opened in Puertollano (Ciudad Real) will also have a battery system with a rated power of 5 MW and a 20 MWh storage capacity.

AT THE FOREFRONT OF DIGITAL TRANSFORMATION

As part of this necessary energy transition process, Iberdrola has also committed to digitisation, setting aside nearly €5 billion in the run up to 2022 to implement innovative projects based on data analytics and Artificial Intelligence.

This strategy puts the customer at the forefront of every activity: networks are getting smarter and are able to adapt to new consumer needs and habits to achieve more efficiency and connectivity for customers. The digitalisation of the grid, i.e. having an infrastructure that carries electricity and data, facilitates the integration of distributed renewable energy, more active network management and the future mainstreaming of electric vehicles. Iberdrola will play a decisive role in the roll-out of the latter in Spain with the implementation of the 'Smart Mobility' Plan, which features the launch of the new Iberdrola Public Charge App for booking charging stations in Iberdrola's recharging network and the launch of the 'Smart Mobility Hogar' App, designed for controlling the charging of household equipment.

The transition toward a sustainable future will require a massive effort by all those involved, and the Iberdrola group will continue the path it started 20 years ago, a strategy which is fully aligned with Sustainable Development Goal 13 (Climate Action).
 

 The energy transition, a business opportunity

 Against climate change

 Investment in renewables