CLOSURE OF COALS PLANTS

Iberdrola is committed to closing all its coal plants and moving towards green transformation

The company has decided to complete the process of closing all of its coal-based power plants worldwide, and in line with this objective, on 10th November 2017, the company asked the Spanish Ministry of Energy, Tourism and the Digital Agenda for the authorisation to close the Lada (Asturias) and Velilla (Palencia) power plants, plants that all together amount to 874 MW in power capacity.

The ordered closure of the last coal-based power plants operating in Spain will have no effect on the security of the electrical supply or on the price of energy —its production is less than 1 % of the national total— or on the company's demonstrated commitment to employment, since the company will relocate 100 % of the staff. Furthermore, the areas occupied by Lada and Velilla will be subject to a landscape restoration project.

Since 2001 Iberdrola has closed 15 coal and oil plants around the world, totalling almost 8,500 MW of installed capacity.

Thermal power stations closed and expected to be closed by Iberdrola.#RRSSThermal power stations closed and expected to be closed by Iberdrola.

 SEE INFOGRAPHIC: Thermal power stations closed and expected to be closed by Iberdrola [PDF]

GREEN TRANSFORMATION

To avoid job losses due to the closure of these two plants, Iberdrola has initiated several green transformation plans in these areas. These plans include investment in renewables, the creation of citizens' platforms, circular economy projects and stimulating businesses and local employment around green principles and innovation with support for local enterprise.

 100 % renewable investment

Iberdrola's support for consolidating forward-looking energy model is thus being topped off in Asturias — where the Lada thermal plant is located — with the acceleration of new wind project investments in the region, where the company is building four wind farms that together will produce a total of 130 MW of power, with which it will triple its renewable capacity. The company has also signed contracts with six local companies for new renewable projects, and for the deployment of smart grids.

In Castilla y León — where the Velilla (Palencia) plant is sited — in the coming years it will promote more than 1,800 MW in renewable projects, in which it will invest more than 1.3 billion euros, generating 18,000 jobs. The company will build the largest photovoltaic project in the region in Velilla itself, with 400 MW of installed capacity, also making it one of the largest in Spain.

Iberdrola is already operating plants that generate more than 5,100 MW in wind and hydraulic power in this region, in addition to a portfolio of wind power and photovoltaic projects currently totalling more than 1,100 MW, the plans for which will begin this year for a 2022 roll-out.

 Galvanising the local industrial fabric

The construction of these projects is contributing to stimulating the local and national industrial fabric, and to creating employment in the region, as practically all jobs in field and civil work are being done by local companies.

In Asturias, over the last 18 months the contracts assigned to local companies by Iberdrola have reached 300 million euros in value, and in Castilla y León the company now makes annual purchases for 150 million euros from over 700 companies in the community, allowing for the creation of 265 jobs a year.

 Citizens' Innovation Platform

Iberdrola's green recovery plan for both areas also includes the launch of Citizens' Innovation Platforms to channel entrepreneurial initiatives, which will serve to accelerate collaboration processes between the public, public bodies and companies. The programme also includes the promotion of training and informational programmes to improve employability.

 Circular economy

Another point is the promotion of the circular economy by installing plants for the recycling and reuse of ash, slag and plaster, to turn them into new materials for the construction sector.

 Sustainable mobility

All of this is complemented by greater investment in sustainable mobility, with the roll-out of a charging infrastructure for electric vehicles, and the analysis of innovation projects related to new technologies, such as energy storage, green hydrogen production, etc.

IBERDROLA, COMMITTED TO THE FIGHT AGAINST CLIMATE CHANGE

With these planned closures, the company is accelerating its firm commitment against climate change: reducing absolute Greenhouse Gases emissions by 2030 from a 2017 base-year and being carbon neutral by 2050 at a global level. Iberdrola is currently emitting 65,5 % less than the average of the European electricity sector (according to the Sustainability Report 2019 [PDF]) and has requested the European Commission and the European Parliament to approve some more ambitious environmental targets for the year 2030 [PDF], increasing the percentage of renewable energy to 35 % instead of the current goal of 27 %.

This way, and in reflection of its commitment to the decarbonisation of the economy, energy stability and clean energy, Iberdrola group is a world leader in renewable energy.

All of these actions are aligned with the commitments acquired by the company after the incorporation of the Sustainable Development Goals into its corporate strategy and its support for the Paris Agreement (COP21) and to subsequent Climate Summits.

The company also materialises its commitment through green financing: Iberdrola has become in the international benchmark of green credits, the perfect source for the long-term financing of projects that make a difference from the environmental point of view.
 

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 Sustainability Scorecard

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