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04/01/2024Macroeconomic uncertainties will not halt progress on the energy transition in 2024 and beyond. COP28 will be remembered as the summit that snatched a remarkable victory from the jaws of defeat. For the first time, the world has new agreed language on transitioning away from all fossil fuels, and more than 110 countries have agreed to triple renewable energy capacity by 2030. The new commitments brokered by its president, Dr. Sultan al Jaber, were made possible by months of intense preparation and climate change diplomacy in the run-up to the summit, and constitute a pivotal moment in the fight against the climate crisis. An obvious question I was asked several times at COP, and one that is top of mind for many people, is whether these ambitious goals are feasible, especially against a backdrop of macroeconomic uncertainties. Given that delivering on the targets needs to start today, the question of feasibility is valid, bearing in mind the sheer scale of investment required to transition away from fossil fuels towards green energy. But I believe emphatically that in the next six years, the goals are achievable. Costs and benefits are shifting In 2023 global investment in clean energy reached a record $1.75 trillion, according to the IEA , and this trend is expected to continue to be driven by the need for additional energy sources to support economic growth. If you want to build new electricity capacity, renewables are better value than any other generation technology in terms of costs, security, risks, and environmental benefits. New versus new, it’s not even a close call. And by substituting aging and polluting fossil-based generation for renewables, many developed countries, such as those in the EU, are improving the balance of payments by reducing their vast energy imports. The industry has already shown it can meet ambitious targets. When the EU launched the 20/20/20 initiative in 2010, few believed we could disrupt the status quo in a meaningful way to cut emissions by 20% and increase the amount of green energy in the system to current levels. We have proved that change is possible. The challenge of high interest rates Cost inflation has affected renewables, as it has all other industrial sectors. Some recent auctions for renewable energy projects–such as the recent AR5 auction in the U.K. –did not recognize this fact. And in other instances, there were long lead times between auctions concluding and the time investments were made. This has created pain points, especially for companies that did not have the chance to hedge their costs. However, policymakers are already responding, recognizing that renewables remain the best way to secure new electricity capacity, and new auction designs and mechanisms are being put in place. The newly announced AR6 offshore wind turbine auction in the U.K. is a clear example. By setting a realistic maximum price, which allows for increases in supply chain costs and lending rates, companies will have the right incentive to bid and compete. This has been the basis for the massive cost reductions experienced in the renewables sector over decades. Of course, delivering on the goals set at COP28 will not be easy, nor will it happen by inertia. But rather than macroeconomic issues or lack of ambition, progress rests on urgent action to address the barriers that have held us back in the past. This includes ensuring stable, positive frameworks for investments, simplifying permitting processes, implementing a truly “green” tax system, bolstering global supply chains to ensure they are robust and secure, investing in green skills to drive the energy transition forward, and promoting the consumption of green products. The transformation may appear massive–but it is already under way. As we embark on a new year, fresh from a “COP for action” that has forged a global alliance for change, we are in the best position ever to deliver a real revolution in energy. * This article originally appeared on Fortune.com READ MORE
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04/01/2024Iberdrola starts commissioning Vineyard Wind I, the largest offshore wind farm in the U.S. Iberdrola has started to commission the Vineyard Wind I offshore wind farm – the first large-scale project of this technology in the United States. The facility, with 806 MW of capacity, has already begun to supply green energy to Massachusetts, a state that will be supplied with wind energy to more than 400,000 homes – that’s the equivalent of more than half the size of a city like Boston or the entire island of Palma de Mallorca. The Vineyard Wind I project –which is expected to have five turbines operating at full capacity by the beginning of the year– has had 3 billion dollars in investment (more than 2.7 billion euros at the current exchange rate) secured through contracts with the state's three main electric utilities. The wind farm began construction in 2021 and will be fully operational in 2024. By this time, it will prevent the emission of more than 1.6 million tonnes of CO2 per year, the equivalent of removing 325,000 vehicles from the road. Each of the turbines –whose transition pieces have been manufactured in Avilés by the Asturian company Windar Renovables– is capable of providing energy to more than 6,000 homes and businesses. Each of these turbines comprises a tower, three blades, and a nacelle, and they have a rated capacity of 13 megawatts (MW), making it the largest turbine in the Western world. A single rotation generates energy for a home in Massachusetts for an entire day. Pedro Azagra, the CEO of Avangrid, Iberdrola's subsidiary in the United States, stated: "We are finally supplying clean offshore wind energy to the Massachusetts grid. We are at a turning point for climate action in the United States, and we are witnessing a dawning for the nation's offshore wind industry. As the capacity of this historic project gets started, we will continue to support all of the partners who made this achievement possible". Last October, Avangrid and the Danish investment group Copenhagen Infrastructure Partners (CIP), co-owner of the project, announced that Vineyard Wind I project closed $1.2 billion (approximately 1.135 billion euros) first-of-its-kind tax equity package for commercial-scale offshore wind with three US-based banks. A large chain of suppliers The Spanish company Windar Renovables has been in charge of manufacturing the 62 foundations for the wind turbines. The contract – worth nearly 100 million euros – has created around 400 jobs at its facilities in Asturias. The Italian Prysmian Group was responsible for the commissioning of the submarine cabling system that will connect the offshore wind farm with the Continental US power transmission grid. The project required more than 134 kilometres of high-voltage alternating current electric cable. The U.S. company Southwire was responsible for the design, manufacture and installation of more than 51 kilometres of high-voltage overland cable. In July 2023, the installation of the offshore substation, which will serve the entire Vineyard Wind I project, was completed. It is the first substation of its kind installed by Iberdrola in the United States and the sixth in the world, weighing more than 5,000 tonnes, making it the largest the company has ever installed. Leader in offshore wind energy Within Iberdrola's renewable portfolio, offshore wind energy is an important technology. The company has committed to new growth platforms with great potential, such as Poland, Sweden, Ireland, the United States, Brazil, the Philippines, and Japan – which has enabled our offshore wind portfolio to currently exceed 30 GW. In this way, the company ensures compliance with the plan to 2025, when it will reach 3,100 MW in operation. Besides Vineyard Wind I, among the company’s most important projects, the East Anglia Hub complex stands out in the United Kingdom, which contains three projects with a total installed capacity of 2,900 MW; as well as Saint-Brieuc in France, and its three wind farms in the Baltic Sea: Wikinger , Baltic Eagle , and Windanker . READ MORE
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27/12/2023Iberdrola USA workers restore supply in Maine after historic storm More than 1,500 teams of employees, including those from subsidiaries of Avangrid - Iberdrola's subsidiary in the United States - from Central Maine Power, New York Gas and Electric and United Illuminating, have worked in extreme conditions to restore electricity supply in the wake of the severe storm in the state of Maine. Millions of people in the United States have been affected by severe storms over the past week that have caused power outages in several states. One of the affected areas was the state of Maine, where Iberdrola's US subsidiary Avangrid operates. There, the historic storm affected more than 420,000 customers and left around 355,000 without power, knocked down more than 1,100 poles and damaged several transmission lines. In addition, many roads were blocked due to the effects of the storm, which has felled more than 3,000 trees. Avangrid workers worked around the clock alongside hundreds of crews in Maine who have been working around the clock in critical conditions to restore power to customers on Christmas Eve. Avangrid aims to be the leading sustainable energy company in the United States. Headquartered in Orange, Connecticut, with some $41 billion in assets, a workforce of 7,600 people and operations in 24 US states, Iberdrola's US subsidiary has two main business lines: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electricity and natural gas utilities serving more than 3.3 million customers. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. More information about this news can be found in the Avangrid Newsroom. READ MORE
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26/12/2023Iberdrola to install Spain's first hybrid hydroelectric and solar plant Iberdrola has obtained environmental approval for Spain's first hybrid photovoltaic and hydroelectric plant with the publication of the Environmental Impact Statement (EIS) in the Official State Gazette (BOE). HIDRO Cedillo, as the project is called, will have a capacity of 86.4 megawatts (MW) with more than 160,000 photovoltaic modules and a fixed structure, located in Extremadura, in the municipality of Cedillo. Hybridisation allows optimising the use of the grid and minimising the environmental impact of projects in the locations where they are located. By having two technologies capable of alternating, dependence on changing environmental conditions and limitations due to possible lack of resources such as wind or sunshine is significantly reduced, facilitating more stable and efficient renewable production. If you would like to read the full story, you can do so in the Iberdrola España's Communication Room. READ MORE
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21/12/2023Iberdrola signs its largest ever credit line for €5.3 billion with 33 banks Iberdrola continues to strengthen its liquidity position, confirming today that it has refinanced €5.3 billion by signing its largest ever credit facility. The agreement, signed with 33 international banks, also helps to consolidate its leadership in sustainable financing, with the conditions of the facility linked to of a series of ESG objectives. The operation has been completed at competitive rates, similar to those agreed by Iberdrola in 2019. The transaction was oversubscribed by more than 40%, demonstrating the banking world’s strong confidence in the strategy and solvency of Europe’s largest electricity utility by market capitalization, and the second largest in the world. Ignacio Galán, Executive Chairman of Iberdrola, said: "This credit line is yet another example of the financial community's strong confidence in our strategy, based on value creation through investment in the energy transition and financial discipline. The transaction also enhances our commitment to our ESG goals." With an initial duration of 5 years, the multi-currency credit facility has an option to extend for two additional years. The agreement strengthens Iberdrola’s commitment to maintain optimal liquidity, which stood at €20.2 billion at the end of the third quarter. The rates agreed as part of the credit facility are subject to the fulfilment of two strategic ESG objectives for the group. Firstly, the reduction of carbon equivalent emissions under scopes 1, 2 and 3. Including scope 3 emissions reduction, which is not typical in this type of transaction, highlights Iberdrola’s continuing leadership in energy decarbonisation. The second ESG objective focuses on increasing the percentage of women occupying relevant leadership positions in the company. The rates agreed for the credit facility can be adjusted up or down annually according to the delivery of objectives. In total, 96% of the Iberdrola’s credit lines are sustainability-focused, contributing towards the UN's Sustainable Development Goals (SDGs) . As well as contributing to goals 7 (clean and accessible energy) and 13 (fight against climate change), the new operation broadens Iberdrola’s objectives to also include goal 5 (gender equality and empowerment, empowerment of women and girls). BBVA acted as global coordinator and agent bank. The sustainability coordinators were BBVA, Santander and Credit Agricole. Global leader in sustainable and green financing Iberdrola has established itself as a global benchmark in sustainable finance. The company was the first Spanish group to issue green bonds in 2014 and is now the world's leading private issuer of green bonds. The group currently has almost €20 billion of outstanding green bonds. Iberdrola agreed its first green loan in 2016 for €500 million, before focusing its strategy for loans and credit lines to be aligned with sustainability objectives. This financial strategy (ESG + F) strengthens Iberdrola’s record €47 billion investment plan announced in November 2022, for the period 2023 through 2025. The plan aims to boost the decarbonisation of the economy and the move away from fossil fuels, with a strong commitment to smarter electricity grids and renewables. Iberdrola will update this plan in March 2024 at its next Capital Markets Day. READ MORE
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19/12/2023All wind turbines at Iberdrola’s Saint-Brieuc offshore wind farm in France have been installed Iberdrola has announced that turbine installation at the Saint-Brieuc wind farm in France has been completed. Norwegian company Fred Olsen's Brave Tern jack-up vessel installed the l ast 8 MW wind turbine at position SB49 on 17 December 2023. The ship has made 18 rotations from Le Havre, with the components of 3 to 4 wind turbines on board. Work to install the wind turbines began in May 2023. In the space of eight months, the 62 wind turbines built at Siemens Gamesa Renewable Energy's Le Havre plant were installed on their jacket foundation. Stéphane Alain Riou, Director of offshore wind Iberdrola France, said: "We are particularly proud of the work carried out by our teams within the schedule initially announced. Iberdrola once again demonstrates its ability to carry out a large-scale project here in Brittany, and at the same time confirms its status as a leader in offshore wind power. Saint-Brieuc is the first French offshore wind farm and the 4th in Europe developed and built by the group. In total, Iberdrola has offshore wind projects worth more than 10 billion euros under construction globally, all fully financed and with supply chain secured, and all being delivered on-schedule." Commissioning ongoing to reach a capacity of 496 Megawatts The technical commissioning of the wind farm started with the connection of the first wind turbine to the national electricity grid in July. It will be completed during Q1 2024. The commissioning of the wind farm is undertaken in phases. A first tranche of 20% is already operational. A second tranche of 50% will be completed in early 2024, rising to 100% in the first quarter of 2024. On completion, the wind farm will have an installed capacity of 496 MW, producing approximately 1,820 GWh/year, which corresponds to the annual electricity consumption of 835,000 inhabitants (including heating), or 9% of the total electricity consumption of Brittany. About Ailes Marines Winner of a national call for projects with the Baie de Saint-Brieuc offshore wind farm project, Ailes Marines oversees the development, construction, installation, and operation of the offshore wind farm. It is a French simplified joint-stock company (SAS), 100% owned by Iberdrola. Key figures for the Bay of Saint-Brieuc offshore wind project: * 75 km² of surface area * 62 Siemens Gamesa SG 8.0-167 DD wind turbines of 8 MW * 496 MW of installed capacity * 1,820 GWh/year of production, equivalent to the annual electricity consumption of 835,000 inhabitants (including heating) All information about the Saint-Brieuc offshore wind farm project developed by Ailes Marines is available on the website https://ailes-marines.bzh/ About Iberdrola Iberdrola, Europe’s largest electricity utility by market capitalization and one of the world's top two electricity companies, is a leader in renewables, spearheading the energy transition to a low carbon economy. T he group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks, storage, and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others. The company has a workforce of over 41,500 and assets of approximately €146 billion. In 2022, Iberdrola posted revenues of nearly €54 billion, net profit of €4.34 billion, with €7.5 billion paid in tax contributions in the countries where it operates. The company helps to support more than 400,000 jobs in communities across its supply chain, and global supplier purchases topped €17.8 billion in 2022. A benchmark in the fight against climate change, Iberdrola has invested more than €150 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles. READ MORE
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18/12/2023Ignacio Galán participates in the dedication ceremony of the Larraskitu corporate centre to José Ignacio Berroeta Ignacio Galán wished to pay a solemn tribute to the figure of José Ignacio Berroeta, former CEO of the Basque company and Chairman of BBK. The Executive Chairman of Iberdrola received the family of José Ignacio Berroeta, who died last September, at the Larraskitu headquarters in Bilbao, accompanied by the Lehendakari, Iñigo Urkullu; the Deputy General of Bizkaia, Elixabete Etxanobe; and other authorities. Among them, the Mayor of Bilbao, Juan Mª Aburto. During the remembrance ceremony, the widow of José Ignacio Berroeta, María José Aurrecoechea, accompanied by family members, unveiled a commemorative plaque inside Iberdrola's Larraskitu complex in Bilbao, and unveiled the new name of the Larraskitu Complex in Bilbao on the exterior of the main building. From now on, it will be known as the José Ignacio Berroeta Corporate Centre. Ignacio Galán referred to the honoree as a man of great truths in a few words. "His legacy will remain everlasting alongside the values of the land, which he embodied. From today he gives his name to this Iberdrola centre of technological excellence in Bilbao". Galán pointed out that "part of my professional life was linked to José Ignacio Berroeta, a decisive person in the financial sector and industrial fabric of the Basque Country". The Lehendakari, Iñigo Urkullu, closed the event by highlighting the figure of Berroeta: "his good practices and ways of doing things took him away from the noise and he transmitted calm in times of doubt and uncertainty" and added that, "thanks to people like him, today we can speak of a Basque business fabric that is more diversified and competitive, rooted and open to the outside world". For her part, María José Aurrecoechea, thanked the tribute and signed the Basque company's book of honour together with the Executive Chairman of Iberdrola and the rest of the Basque authorities. A man of vision and commitment to society José Ignacio Berroeta, who died on 16 September at the age of 84, had a renowned career as a banker from his first steps in the financial area of General Electric. He later joined Banco Vizcaya (1978) and then BBK (1990-2003). During this period, he worked intensively for the merger of the three savings banks in the Basque Country, although it finally materialised in 2011 through Kutxabank. Berroeta was a pioneer in solidarity banking, starting with his collaboration with Cáritas, granting microcredits to people with limited resources. Visionary in his decisions, he supported the financial rescue of the company CAF. He was also a director of Iberdrola, where he established a solid and close collaboration with Ignacio Galán, with whom he always had great complicity. Since 2003, he decided to devote himself entirely to his family life. READ MORE
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16/12/2023Iberdrola's solar community in Cedillo, Europe's best sustainability initiative Iberdrola's community solar project in Cedillo (Extremadura, western Spain) has won the award for best European initiative at SolarPower Europe's Solar Sustainability Award 2023, held in Brussels, which recognises the sector's best sustainability performers for their work in maximising the positive impact of solar energy on communities, the climate and the environment. The aim of the award is to highlight and share the industry's best practices in sustainability and thereby advance the industry as a leading sustainable energy technology and was open to any company that has undertaken noteworthy activities to improve sustainability through the use of solar energy. In the case of the solar community promoted by Iberdrola in Cedillo, the jury highlighted its status as a "visionary project" for setting up a self-consumption solar community in a village of 400 inhabitants, "which all the neighbours can join and benefit from savings of up to 50% on their bills". If you want to read the full story, you can do so in the Iberdrola España Communication Room. READ MORE
