ENERGY TRANSITION

Pioneering the energy transition through the decarbonization of the economy

#environmental sustainability #society #climate change

The Iberdrola group is committed to a sustainable, safe and competitive business model which replaces polluting sources of energy with clean ones and intensifies the decarbonisation and electrification required worldwide.

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 Iberdrola group has committed to championing this energy transition by investing more than €32 billion by 2022 in the electrification of the economy, innovation and technological advances and better consumer connectivity. With this investment, the company expects to increase its renewable power by 24% on 2017 to a total of 36,200 megawatts (MW), as well as increasing its storage capacity from 80 gigawatts hour (GWh) to 100 GWh by the end of the investment period.

The minimum renewable energy target of 32% established by the European Parliament and the Council in the Renewable Energy Directive for 2030 is attainable, but only if we see high levels 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.

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 reduce the intensity of its emissions by 50% by 2030 with respect to 2007 levels and become carbon neutral by 2050. Currently, Iberdrola's emissions levels are 32% below the average for European utility companies.

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.

Ignacio Galán, Chairman of Iberdrola

The electricity sector is already contributing to the decarbonisation of the economy with technologies like renewables and smart grids

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.

Iberdrola is a global energy leader and the world's biggest producer of wind power. At the close of the first Nine months of 2018, Iberdrola's installed capacity totalled over 48,900 MW, 67% of which is emission-free. 60% of this capacity comes from renewable energies.

Between 2018 and 2022 the Renewables area will pursue sustainable growth mainly based on investments in onshore and offshore wind power and solar power in the group's key countries: the USA, the UK, Spain, Portugal, Brazil and Mexico. The plan for this period is to install 7.1 GW — which will come from several installations currently under construction — as well as maintaining some of the lowest emissions levels in the sector.

 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. By 2022, storage capacity is planned to increase by 25% to 100 GWh, the equivalent of 100 million 1 kWh batteries.

Also, work has begun on two projects to install lithium-ion battery storage systems in Caravaca de la Cruz (Murcia, Spain) and in Oregon in the USA. Both will be operational in 2019.

AT THE FOREFRONT OF DIGITAL TRANSFORMATION

As part of this necessary energy transition process, Iberdrola has also committed to digitisation, setting aside €4.8 billion to implement 75 innovative projects per year from now until 2022 which will be 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 digitisation of the grid, which translates to having an infrastructure that transports electricity and data, facilitates the integration of the renewable energy distributed, increasingly active management of the grid and, in the future, the integration of electric vehicles. Iberdrola will play a decisive role in deploying EVs in Spain with its Smart Mobility Plan.

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