Energy Transition as a Service

Energy transition as a service (ETaaS), paving the way for industrial decarbonisation

Energy transition

Iberdrola intends to make its growth compatible with the goal of zero emissions in all its activities by 2040, a commitment that in turn represents a great opportunity to create wealth and generate employment. In this regard, the group is committed to spearheading the energy transition, a path it began 20 years ago and which has led it to invest 120 billion euros since then. Iberdrola will allocate 41,000 million euros until 2026 to promote the electrification of the economy as the only alternative to respond to the current challenges of the energy industry. The group also offers the ETaaS service to contribute to an efficient energy transition, aiming to become the energy partner of choice for its customers.

If the current rate of greenhouse gas emissions continues, global temperatures could rise by 2.7 ºC by the end of the century, far from the 1.5 ºC target agreed in the Paris Agreement, which would mean irreversible damage to the Earth. To achieve decarbonisation, energy transition is necessary, a structural change that eliminates CO₂ from the production of electricity and from the largest number of production processes. Many companies, aware of the importance of their role in reducing greenhouse gas emissions, are choosing to change and adapt to more responsible, greener consumption.

The regulatory framework is particularly important for moving towards emission-free energy solutions that lead to efficient decarbonisation at the lowest possible cost. In recent years, Europe has been the most active driver of the global energy transition, building a network of environmental targets and policies that apply to the activities of citizens and businesses. The European Green Deal is the European Commission's strategy launched in 2019 to put the energy and green transition at the centre of political action.

What is ETaaS and what services does it include?

The ETaaS concept refers to Energy Transition as a Service (Energy Transition as a Service) and encompasses the series of services offered by Iberdrola to accompany organisations and companies in reducing their carbon footprint. These services cover the entire life cycle of the decarbonisation process, so that commercial and industrial customers can meet their environmental objectives and become the main drivers and players in the energy transition. But what options are available to support an efficient energy transition?

Decarbonising processes through renewables and electrification

One of the most efficient ways for industrial groups to reduce their carbon footprint, especially in terms of electricity consumption, is to switch to a fully renewable energy supply (both wind and solar photovoltaic).

This energy development is made possible by signing a Corporate Power Purchase Agreement (CPPA), i.e., a long-term power purchase agreement (PPA) whereby Iberdrola commits to directly supply a company with the electricity produced by a renewable installation.

On the other hand, electrification also opens the door to reducing the carbon footprint of industry. There are several options for this transformation:

 Use heat pumps

This option envisages replacing air conditioning systems or generation of hot water from industrial processes with emissions by others based on heat pumps. This thermal machine allows heat to be pumped from a cold point to a warm point, using renewable energies such as ambient thermal energy from air, water or soil, or residual energy from the industry itself. It can be applied to heating, air conditioning and domestic water, as well as all those industrial processes with temperatures below 120 ºC, such as food industry processes, paint drying processes, or others.

Heat pump technology is under development and working temperatures are increasing, so projects may be viable in the near future, even generating process steam.

 Going electric mobility

The aim is to replace combustion vehicles with electric cars, providing the corresponding infrastructure of charging stations and ensuring recharging with 100% renewable electricity. These cars emit hardly any polluting waste and are a more efficient option to reduce traffic in cities.

 Self-consumption

Industrial photovoltaic self-consumption is a self-consumption model aimed at large companies and industrial SMEs. The installations are similar to those of large photovoltaic plants prepared for sale to the grid, but in this case, the panels are installed on the roof and are intended to generate energy that will be consumed directly in the company's facilities. Industrial self-consumption is considered a key point in industrial decarbonisation.

 Harnessing the benefits of batteries

This practice envisages the inclusion of battery energy storage systems. The benefits of this option include efficiency, savings and sustainability by allowing for renewable sources and reduced consumption.

 Prioritising the use of green hydrogen

Incorporating green hydrogen into industrial processes opens the door to more sustainable production: it is a clean energy source that emits only water vapour and leaves no residues in the air, unlike coal and oil. Producing it would save the 830 million tonnes of CO₂ per year that arise when this gas is produced by fossil fuels, according to the International Energy Agency (IEA).

 Electrifying industrial processes

This option envisages replacing heat generation sources with emissions by electrified processes (directly or indirectly through green hydrogen) with renewable energy, either supplied by self-consumption facilities or by other sources of renewable generation through the grid.                         

Giving a second life to former industrial sites

Another vector for reducing the carbon footprint is the recovery of land where industrial activities have been carried out in the past and which, at the end of their useful life, are sometimes degraded, polluted and/or simply abandoned. Most often, these sites represent an obstacle on the road to energy transition, as they have an impact on costs related to site security, environmental monitoring or decontamination obligations. Giving them a second life reduces their impact on the environment. Iberdrola offers its customers the possibility of building renewable generation projects on these sites (photovoltaic projects, storage projects, etc.), providing them with a local, emission-free energy supply.