News
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22/06/2020Iberdrola agrees deal for the acquisition of a majority stake in eight projects from Svea Vind Offshore AB in Sweden Iberdrola has agreed a deal to take “majority acquisitions” in the projects with the renewables company Svea Vind Offshore AB (SVO) for the future development of up to 9GW of offshore wind energy capacity in Sweden. Eight projects in total are in various stages of development, and are expected to begin operations from 2029 onwards. They are grouped around two geographical clusters: Gavle (six wind farms with a total of 5.1 GW) and Oxelosund (two offshore wind farms with a combined capacity of 3.9 GW) The framework agreement will allow Iberdrola in the future to take a majority stake in each of the offshore projects being developed. SVO's first offshore wind farm, the 250MW Utposten I, is in the advanced stages of obtaining environmental permits. The Swedish government aims to have 100 % of its electricity coming from renewable energy sources by 2040. In 2020 Iberdrola will make record investments of 10 billion euros, and the agreement in Sweden marks the fifth significant advance in renewables for the company during the current Covid-19 crisis. This month the company announced the launch of a friendly bid to acquire the Australian renewable energy company Infigen Energy. This followed the company’s decision to Increase its stake in a major offshore windfarm in France (the €2.4 billion 496MW Saint-Brieuc offshore wind farm in France, stake increased from 70 % to 100 %) and the acquisition of French renewable energy firm Aalto Power for €100 million. Two separate agreements to develop 165MW of onshore wind in central Scotland that could see investment of over £150 million was also recently completed. READ MORE
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19/06/2020Iberdrola is stepping up its investment in renewables in Castilla y León for the green transformation of the region of Velilla Iberdrola is stepping up its strategy for the consolidation of an energy model for the future with a boost in its renewables investments in Castilla y León. The company's plans will contribute towards the green recovery and create opportunities for sustainable economic growth in the area, and the transformation of the Velilla region. Iberdrola is to develop more than 1,800 MW in the community over the coming years in renewable projects - wind and photovoltaic - for which it will allocate investments in excess of €1.3bn. This volume of resources will galvanise the industrial fabric and create 18,000 jobs, according to estimates by the National Integrated Energy and Climate Plan (PNIEC)*. In Velilla, the company will build the largest photovoltaic plant in the region, with a total of 400 MW of installed capacity, making it also one of the largest in Spain. These actions will involve an investment of €300m and, according to calculations used by the PNIEC, create over 4,000 jobs. Its transformation plan in the area also includes investments in smart grids and sustainable mobility, the installation of a waste assessment plant, training programmes and the creation of a Civic Innovation Platform to incentivise entrepreneurship in the region. The dismantling work for the thermal plant over the next four and a half years will allow collaboration with local suppliers to continue. Their involvement in these tasks will constitute greater volume than that enjoyed at the moment. 650 renewable MW and an ongoing project portfolio of over 1,100 MW Iberdrola's strategy for the transformation of the Velilla municipality hinges on three points: investment in 100% renewable projects, energising of the business fabric and local employment based on green principles, and support for local enterprise. Iberdrola has over 650 MW of renewable energy under construction and in the pipeline in the region, in wind and photovoltaic projects. The company has just begun work on the Herrera wind power complex, with the Spanish market's most powerful wind turbines to date, and the Fuenteblanca plant; and is working on the Buniel and Valdemoro wind power schemes - whose164 MW of power make them one of the company's and the nation's biggest - as well as three photovoltaic plants of over 400 MW, including a solar plant in Ciudad Rodrigo. Additionally, Iberdrola is backing a renewables investment plan in the area with the development of a portfolio of wind power and photovoltaic projects currently totalling more than 1,100 MW, the plans for which will begin this year for roll-out from 2022. In Castilla y León, Iberdrola has been leading the field for over 15 years in its support for renewable energy, with 5,100 MW of wind and hydro power in operation, making this the region with the most "green" power installed by the company. More investments and circular economy projects: waste assessment plant Iberdrola's accelerated green recovery plan will be enhanced by more investments in the fields of renewal, improvement and digitisation of the company's distribution network infrastructure, in which it is to invest €70m per year, as well as in the promotion of electric mobility, with the installation of electric vehicle recharging points in the region and surrounding area. Iberdrola will be promoting circular economy projects in the region, such as the installation of a waste assessment plant for the processing and recycling of ash, rubble and plaster with the aim of turning them into new materials for the construction sector. Galvanising the local industrial fabric Electrification is set to become a lever in the revitalisation of the economy and jobs, and will offer development opportunities for local suppliers. Iberdrola will make annual purchases worth €150m from more than 700 local companies, creating 265 jobs per year. This collaboration has allowed progress to be made in the configuration of a new industrial fabric to participate in the building of renewable developments, the implementation and maintenance of electricity grids and environmental consultancy work. Civic Innovation Platform to incentivise entrepreneurship in the area Iberdrola's transformation plan for the Velilla region includes the establishment of a Civic Innovation Platform to focus enterprise initiatives - the key to innovation for the energy transition - to act as a catalyst in the processes of collaboration between society, public entities and businesses. The intention is to incentivise entrepreneurs and start-ups that are considering setting up in the region and to study finance options for R+D+i initiatives from local providers. The company will make available to the community a team made up of academics from the Universidad Politécnica de Madrid who are part of EIT Climate-KIC, a knowledge and innovation network which is an offshoot of the European Institute of Innovation and Technology, and dedicated to accelerating the transition towards a decarbonised economy. The initiatives in this field also include the promotion of training and awareness programmes aimed both at Dual Professional Training and at institutes and universities in the area, with the aim of improving employability. Through a number of different schemes - agreements with local institutions, the ‘Iberdrola U’ youth enterprise programme, and training activities at the Iberdrola Campus in smart solutions concerned with electric mobility, self-generation and climate control - the company will promote employability for young people and local professionals with the aim of turning them into active contributors in the energy transition. Backing clean, sustainable and competitive technology Late in 2017, Iberdrola requested authorisation to close its last remaining thermal power stations in the world, located in Velilla (Palencia) and Lada (Asturias), in response to its decision to replace CO2 emitting facilities with the latest clean energy sources, thereby leading the energy transition towards a new sustainable energy model. The company hopes to be practically free of emissions in Europe by 2030 and has a target of achieving carbon neutrality by 2050 globally. Since 2001 Iberdrola has closed 15 coal and oil plants around the world, totalling almost 8,500 MW. This commitment to green renewal has led it to commit record investments this year of €10bn into renewable energy sources, smart grids and large-scale storage systems, having earmarked €25bn since 2001 in Spain (rising to €100bn throughout the world) which has allowed the creation of 80,000* jobs nationally. Iberdrola is the leader in renewable energies in Spain, with an installed wind capacity of more than 6,000 MW and over 16,500 MW in renewables as a whole. Worldwide, the total amounts to more than 32,000 MW, making its generation facilities among the cleanest in the energy sector. *Assessment according to the PNIEC's estimates of between 12 and 14 jobs/yr created per €1m invested * PwC report “Iberdrola's economic, tax, social and environmental impact on the world”. READ MORE
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18/06/2020The Women’s Universe Tour launches its digital version The eighteenth stop on the Women’s Universe Tour will not land, as it has before, in a city due to the population’s new post-Covid-19 social and sports habits. In this new scenario, the programme that is part of the "Women’s Universe” from the Higher Sports Council, the Youth Sports Foundation and which is promoted by Iberdrola, has adapted its project to a new audiovisual and digital format. The aim of the Women’s Universe Tour remains the same, which is to promote women's presence in the sports world and recognise their efforts and successes, but its format is adapted to digital media. This new on-line event aims to further project the image that women have as an active and fundamental part of sport in Spain. For three consecutive weekends, 20 and 27 June and 4 July, big names in women's sports such as Carolina Marín (badminton), Sandra Sánchez (karate), Amanda Sampedro (football), Eva Moral (triathlon), Teresa Díaz (fencing), Desiré Vila (athletics) and Silvia Arderius (handball), among others, will lead training sessions, address challenges, participate in forums and share experiences in the world of fitness or lifestyle together with leading figures in these disciplines. The Women’s Universe Tour will be broadcast through its usual digital channels and through RTVE's sports-themed channel, Teledeporte, in three programmes dealing with the different women's competitions in the 16 federations promoted by Iberdrola: football, badminton, handball, volleyball, rugby, triathlon, canoeing, gymnastics, athletics, hockey, karate, surfing, table tennis, track and field, boxing and ice sports. The first episode will be this Saturday from 18:15. Iberdrola, main promoter of the ‘Women’s Universe’ programme The ‘Women’s Universe Tour” is part of the Women’s Universe programme from the Higher Sports Council (CSD), behind which Iberdrola has been the main driving force since July 2016. In this agreement, the company supports 16 sports federations chosen for their extraordinary records, their level of participation, the existence of base sports promotion programmes and other social projects. Iberdrola is the first company to make a global commitment to promoting women's participation in the sports field as a way to promote equal opportunities, a commitment that is part of the company's essential values. By promoting women’s sport, Iberdrola contributes to creating new references in society and promoting healthy habits from an early age. READ MORE
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18/06/2020Iberdrola awards Navantia-Windar record offshore wind power contract, worth €350m Iberdrola, through its subsidiary Ailes Marines, has awarded the Navantia-Windar UTE (temporary business consortium) the construction of 62 jackets - the structures that support offshore wind turbines - and the necessary piling for the Saint-Brieuc offshore wind farm which the energy company is developing off the coast of Brittany. The contract, worth €350m, is the largest offshore wind contract for Navantia-Windar to date and was signed this morning in Navantia's shipyard at Fene (A Coruña) by Iberdrola Chairman, Ignacio Galán, the Chairman of Navantia, Susana de Sarriá and the Chairman of Windar, Orlando Alonso, in the presence of the Head of the Galician Government, Alberto Núñez Feijóo, and the Spanish Government representative in Galicia, Javier Losada. Specifically, the agreement signed comprises the fabrication of the jackets by Navantia at its Fene facilities and the piling by Windar at its Avilés site. The final assembly of all component parts will be completed at the Galician shipyard facilities. This award cements the relationship between Iberdrola and Navantia-Windar which spanning over six years totals contracts worth nearly €1bn, including the already completed jobs for the Wikinger wind farm, in German waters of the Baltic Sea, and East Anglia One, in the North Sea. As the Chairman of Iberdrola highlighted in his speech, this move reaffirms the ability of Navantia-Windar to make the most of the opportunities offered by a very promising market such as offshore wind, where Iberdrola is moving forward to global leadership. During his speech, Ignacio Galán pointed out that with this contract, in addition to fostering a clean energy source like offshore wind power, "we are showing that the green economy is a major source of industrialisation and sustainable, quality jobs, now that revitalizing the activity is more important than ever. “It confirms Europe as a great common project for the benefit of all. A Europe united and strong, where companies can make very relevant contributions to infrastructures like Saint-Brieuc offshore wind farm,” Galán added. For her part, the Chairman of Navantia, Susana de Sarriá, highlighted the many challenges of this very dynamic sector, which continues to grow and open up new perspectives, and in which Navantia and Windar hope to continue accompanying Iberdrola by offering the best service and promoting industrialisation in the areas where we are established. Creating over 2,000 jobs in Galicia, Asturias and France The contract signed today between Iberdrola and Navantia-Windar will help create 2,000 direct jobs. Of these, almost 1,000 are jobs in Galicia and Asturias, and over 1,100 are distributed among several companies in France, specifically, new fabrication facilities around the ports of Brest, Le Havre and the future marshalling port which is still to be announced. A new feature of this contract is that Navantia-Windar is to open a plant in Brest, to make the stabbings, lower joints and truss structures for 34 of the 62 jackets. Over and above these 2,000 direct jobs, several thousand more will be created by local contractors, both in Spain and France. This contract has a marked European character, combining the experience and know-how of Spanish and French skilled professionals while endorsing the path to green recovery and sustainable growth marked out by the European Union. Projects like Saint-Brieuc offshore windfarm showcase that a green recovery and speeding up the energy transition towards a low-carbon economy are engines for prosperity and sustainable growth The Saint-Brieuc offshore wind farm Saint-Brieuc offshore wind farm will have 496 MW capacity, and will generate enough clean energy to meet the electricity needs of nearly one million people. Located off the coast of Brittany in an area covering nearly 78 km2, the facility is due to go onstream in 2023. To achieve this, Iberdrola will invest €2.4bn. This new facility reaffirms Iberdrola's commitment to the French market, where it expects to invest up to €4bn over the next four years. READ MORE
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18/06/2020EMT and i-DE have signed an agreement to electrify Madrid's urban bus network The Madrid Municipal Transport Company (EMT) and i-DE , Iberdrola's electrical distribution company, have agreed to work together on the electrification of the urban bus network in the city of Madrid, with the aim of consolidating sustainable mobility as an alternative to traditional transport. This initiative was finalised this morning with the signing of a collaboration agreement to develop and implement the optimal Smart City model for Madrid. i-DE will advise on and facilitate the electrification of EMT's urban bus network and will collaborate in studying the options for the electricity supply to EMT facilities from which the urban buses operate, as well as in planning the charging infrastructure network for present and future electric transport. In fact, both companies have already identified optimal locations in the first EMT garages to be electrified, such as those in Fuencarral and Carabanchel. The agreement was signed between the managing director of EMT, Alfonso Sánchez, and the i-DE director for the Madrid Region, Efigenio Golvano, in the presence of the Madrid City Council delegate for the Environment and Mobility Area, Borja Carabante, accompanied by Antonio Espinosa de los Monteros, CEO of i-DE. The agreement also establishes the creation of a joint monitoring committee to be chaired by the EMT, which will set the actions to be completed each year and monitor compliance with them. The smart electricity grids are configured as part of the new energy model's distribution system and the smart platform necessary for the transition towards a decarbonised economy. They thus make it possible to incorporate a 'neural trace' into the grid to promote a smart city model with more efficient and sustainable services. The EMT is becoming one of the main European actors in the promotion, development and implementation of measures to improve air quality and combat climate change in the city of Madrid. The company is a benchmark in the development of less polluting, more efficient alternative fuels and energies with much less acoustic impact for transportation and it considers the electric vehicle to be a strategic element in this. Five strategic areas for a smart city The project the company is now undertaking with Madrid City Council focuses on the five strategic areas for a smart city, from the point of view of the electricity grid, namely electrification of the most polluting sectors, electric mobility , network infrastructure, energy efficiency and public awareness with the following objectives: * Electrification of the most polluting sectors (such as transport and heating) to reduce polluting emissions. * Consolidation of electric mobility as an alternative to traditional mobility systems. In this area, i-DE brings its knowledge of electrical grids to promote an efficient and competitive charging point deployment plan, accessible to all citizens. * Incorporate new monitoring, automation and intelligence functionalities in the electrical distribution grid to improve the use of the existing infrastructure. * Implement energy efficiency measures and solutions to reduce the city's energy consumption and costs. * Public awareness of energy, through information technologies, providing distribution grid data related to consumption, integration of renewables and penetration of electric mobility. i-DE has integrated Electric Mobility Control Centres into its 6 Distribution Control Centres in Spain, one of which is in Madrid, to monitor and assess the impact of electric vehicles on its distribution network. The centres provide real-time information on charging points: locations by zones, hourly charge data for the charging points and CO2 emissions avoided. Likewise, they are also able to track how use of the charging points and energy demand change over time. In the near future, the integration of data analytics tools will make it possible to make predictions about the impact electric vehicles are having. Smart grids and the energy transition The transformation of grids towards a smart, more reliable and safer infrastructure will provide a response to the challenges of this transition towards the electrification of the economy, with a greater presence of renewables, sustainable mobility, smart cities, decentralised consumption (self-generation) and a consumer with greater decision-making capability and connectivity. In recent years, i-DE has installed almost 11 million smart meters - 2.1 million of them in the community of Madrid - together with their supporting infrastructure, as well as adapting around 90,000 transformer centres, where remote management, supervision and automation capabilities have been incorporated. i-DE, Smart Electricity Grids i-DE -Iberdrola's electrical distribution company- operates a distribution system with 270,000 km of power lines in Spain and has a presence in 10 autonomous communities, serving a population of 17 million. Iberdrola's distribution business is investing some €500m in Spain in projects designed to improve its procedures and customer service channels; complete the roll-out of nearly 11 million smart meters and the supervision and automation of the grid. Iberdrola's network business is a significant driver of the Spanish economy, generating more than 10,000 jobs in total (both direct and through its suppliers). The company makes purchases to the value of €500m from 2,000 local companies. READ MORE
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17/06/2020Iberdrola announces recommended cash takeover offer for Australian renewables entity Infigen Iberdrola Renewables Australia Pty Ltd (“Iberdrola Australia”), a wholly owned indirect subsidiary of Iberdrola, S.A., is pleased to announce its intention to make a takeover bid for Infigen Energy Limited and Infigen Energy Trust (“Infigen”). A takeover bid implementation agreement has been entered into with Infigen Energy Limited and Infigen Energy RE Limited, under which Iberdrola Australia has agreed to make a recommended cash takeover offer of A$0.86 per stapled security for all of the issued stapled securities of Infigen (“Offer”). The acquisition of Infigen is a unique opportunity for the Iberdrola group to consolidate its presence in the attractive Australian renewable energy market through a friendly transaction. Infigen will allow the Iberdrola group to add critical mass to its existing Australian platform which comprises the 320 MW Port Augusta Renewables Energy Park currently under construction in South Australia, through Infigen’s portfolio of 670MW of wind generation assets, 268MW of firming assets, 246MW of additional renewable capacity through offtake PPAs and a strong development pipeline of projects as well as its widely diversified and high quality customer base. This Offer is the result of a long, friendly relationship between the Iberdrola group and Infigen. Iberdrola Australia strongly believes Infigen provides an attractive platform for future growth and is consistent with Iberdrola group’s strategy to become the largest renewable energy player in the world, reaching a total renewable installed capacity of 33 GW. The Iberdrola group intends to integrate Infigen’s operational expertise into Iberdrola group’s worldwide footprint. Infigen’s contribution, with an EBITDA and a Net Income of A$165.3m (€102.0m) and A$40.9m (€25.2m), respectively, in 2019 (according to Infigen’s 2019 Annual Report) is expected to be accretive to Iberdrola group’s earnings from the first year onwards. Compelling Offer for Infigen stapled security holders The Offer is unanimously recommended by the Infigen Board in the absence of a superior proposal. It implies a diluted equity value of A$840.6 million for Infigen representing compelling cash value for Infigen stapled security holders. The Offer values Infigen at a: * 7.5% premium to UAC Energy Holdings Pty Ltd’s (“UAC Energy”) unsolicited, conditional takeover bid of A$0.80 per stapled security announced on 3 June 2020; * 45.8% premium to Infigen unaffected share price as of June 2nd 2020; and * 54.2% premium to the one month volume weighted average share price up until and including June 2nd 2020. In addition, the most significant shareholders of Infigen, the TCI Funds, which together own 33.1% of Infigen’s issued stapled securities have entered into a Pre-Bid Agreement with Iberdrola Australia. Under this agreement, the TCI Funds have agreed to sell 194,139,613 Infigen stapled securities, representing 20% of Infigen stapled securities on issue to Iberdrola Australia no earlier than two months after the commencement of the Offer, conditional on FIRB approval being obtained and subject to the Offer becoming unconditional and upon Iberdrola Australia either having a relevant interest in more than 50% (including the TCI Funds’ securities) or where TCI Fund's acceptance of its securities into the Offer, together with acceptances submitted into any institutional acceptance facility, would result in Iberdrola Australia having a relevant interest in more than 50%. The Pre-Bid Agreement includes termination rights, including in certain circumstances if a superior offer emerges which is unmatched by Iberdrola Australia. Iberdrola Australia will support Infigen seeking any required consents and waivers to any change of control and review event arising from the Offer from financiers to Infigen. If Infigen’s Corporate Facility Lenders: * Call for a review subsequent to the change in control occurring; or * Require repayment subsequent to the review, then if it is necessary, it is Iberdrola’s intention to provide an unsecured loan on arm’s length terms to Infigen to refinance its Corporate Facility. Transaction Details The Offer is conditional upon Iberdrola Australia acquiring a relevant interest in more than 50% of Infigen stapled securities (on a fully diluted basis), approval by the Foreign Investment Review Board, no material adverse change, no prescribed occurrences in relation to Infigen, and certain other limited customary market conditions. The Offer is not subject to further due diligence or refinancing and will be funded from Iberdrola group’s cash reserves. Iberdrola Australia has factored into the value of its cash offer of A$0.86 per stapled security that the Directors of Infigen have determined not to pay a distribution in respect of the Infigen stapled securities for the period ending 30 June 2020. The proposed defeating conditions of the Offer are set out in the Annexure. Bid Implementation Agreement and Bidders Statement Infigen has entered into a takeover Bid Implementation Agreement with Iberdrola Australia in respect of the Offer. In addition to setting out the agreed takeover bid terms, the agreement imposes certain requirements on Infigen in respect of the Offer, and certain restrictions on the conduct of Infigen business during the Offer period. The agreement also contains customary exclusivity provisions, and requires Infigen to pay a break fee of 1 % of the equity value of Infigen implied by the Offer (~A$8.4 million) in certain circumstances. Iberdrola Australia intends to issue its Bidder’s Statement shortly. The Bidder’s Statement will contain detailed information relevant to the Offer, including how to accept and is intended to be sent to Infigen security holders in due course. Forward Looking Statements and Disclaimers This communication contains forward-looking information and statements and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions. Although Iberdrola Australia believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Iberdrola, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of either Iberdrola Australia or Iberdrola, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the documents sent by Iberdrola, S.A. to the Spanish Comisión Nacional del Mercado de Valores, which are accessible to the public. Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of either Iberdrola Australia or Iberdrola, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to Iberdrola Australia and/or Iberdrola, S.A. or any of their respective members, directors, officers, employees or any persons acting on their behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to Iberdrola Australia and Iberdrola, S.A. on the date hereof. Except as required by applicable law, neither Iberdrola Australia nor Iberdrola, S.A. undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. READ MORE
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17/06/2020Iberdrola will provide 100 % renewable energy under a long-term agreement with Vodafone in Spain Iberdrola and Vodafone España have entered into an agreement to promote sustainability, with a long-term power purchase agreement (PPA). The alliance reinforces Iberdrola’s strategy to undertake renewables projects in Spain through bilateral agreements that promote the supply of power at competitive and stable prices to large customers who are committed to sustainable consumption. This alliance will enable the telecommunications operator to consume energy from renewable sources in Spain and to make progress with its strategic framework as a sustainable, environmentally responsible company, having pledged to purchase only 100 % renewable energy by 2025 and to reduce its greenhouse gas emissions by 50 %. This agreement will mean that Vodafone España will have complied with 75 % of its objective to buy energy produced by renewable means in 2021. Iberdrola will supply green energy to 13,500 supply points from Vodafone’s own grid in Spain. The contract will take effect in January 2021 and part of the energy consumed — 140 Gwh/year of the total 540 Gwh/year — will be supplied under a PPA associated with a newly built renewable asset, the Puylobo wind project , now under construction in Aragón. The remainder, 400 Gwh/year, will be supplied under another agreement, that guarantees green energy through the delivery of the company’s Guarantee of Origin (GoO) certificates. Puylobo is in the town of Borja, in Zaragoza, and will have an installed capacity of 49 megawatts. With an investment of 50 million euros, more than 120 professionals will be involved in its construction. Once the facility is operational, it will prevent the emission of 32,000 tons of CO2/year. Puylobo forms part of Iberdrola’s strategy to invest in clean power generation projects in Spain and its commitment to using bilateral agreements with big customers who are committed to sustainable consumption as a way to promote the supply of energy at affordable, stable prices. "PPAs offer numerous opportunities to develop the renewable projects that are transforming the present and future energy in our country. These long-term energy purchase and sales contracts provide stability to investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption. They also demonstrate the competitiveness of renewables and their ability to supply energy at affordable, stable prices," explained Eduardo Insunza, Iberdrola's director of large customers. "Our strategic framework as a company that is sustainable and responsible toward the planet requires that by 2025, all the electrical energy we purchase must come from renewable sources and we will have reduced our CO2 emissions by 50 % compared to 2016-17. The energy used to operate the network accounts for more than 97 % of our total consumption, so it is key to implement energy efficiency measures and establish agreements to purchase energy from renewable sources, such as the one we entered into today with Iberdrola," said Ismael Asenjo, managing director of Technology at Vodafone España. Renewables for a green recovery Iberdrola is a global reference point in the area of PPAs and has long-term power purchase agreements (PPAs) in markets that include Spain, the United Kingdom, the United States and Mexico, with wind and photovoltaic power projects totalling over 2,500 MW. In Spain, the company has been a pioneer in promoting this type of agreement with companies from various sectors (banking, telecommunications, brewery distribution and sports brands). The company is confident that electrification will act as a lever for financial recovery and employment in the post-COVID landscape. To drive that recovery, it is considering investments of €10 billion this year to launch new projects, industrial activity throughout the value chain, and innovation in fields such as renewables, smart grids and large-scale storage systems. In Spain, Iberdrola is the leader in renewable energies, with an installed wind capacity of more than 6,000 MW and over 16,500 MW in renewables as a whole; totalling more than 32,000 MW worldwide and making its generation facilities among the cleanest in the energy sector. For further details: What is a PPA and what are the main benefits? Vodafone’s environmental undertakings According to Vodafone, caring for the environment means operating responsibly, reducing the environmental footprint of its operations and helping customers and society to be more efficient. Vodafone is sure that urgent, sustained measures are required to tackle climate change and that business success should not be at the expense of the environment. Evidence of this commitment is the recent signature of the United Nations’ “Recover Better” pact, which calls upon government to set scientifically based objectives when determining the route to achieve zero emissions by 2050. Vodafone's commitment to reduce its environmental impact is helping to make the future more sustainable for everyone. Focused on energy efficiency, renewable energies and waste reduction, it is helping to palliate the environmental impact associated with its customers’ growing demand for data. During the last financial year, Vodafone España, through its energy projects, has encouraged remote working and the circular economy, developing products and services for its customers and directly or directly avoiding the emission of 656,924 tons of CO2 in Spain. READ MORE
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15/06/2020Galán: “The electrification of the economy is key for economic recovery since our sector has one of the most powerful ripple effects” The chairman of Iberdrola group, Ignacio Galán, sent out a clear and positive message during his turn to speak at the business summit organised by the CEOE (Spanish Confederation of Employers' Organisations), highlighting the electricity sector’s potential key contribution to the economic recovery that faces us in the wake of the coronavirus pandemic . “The electrification of the economy is key for economic recovery , since our sector has one of the most powerful ripple effects,” asserted Galán, before going on to explain that investments in this sector mean that “for every job created within our sector, 12 more are created in sectors such as construction, manufacturing of capital goods, engineering and installation services and machine tools.” According to Galán, Spain’s National Energy and Climate Plan that is currently taking shape in Parliament means that the country already has a roadmap that should see investments in this sector over the next decade give rise to 300,000 jobs in the country. He also urged the implementation of the Plan to be brought forward to 2025, explaining that it “would have an immediate impact on economic growth and employment, boosting competitiveness, lessening our dependence on foreign energy, evening out the balance of payments and reducing our harmful gas emissions – all without putting any pressure on public funds.” Iberdrola’s chairman was invited to sit on the energy panel at the CEOE’s forum for Spanish Enterprise Spearheading the Future, which kicked off today, where he gave several examples of the positive impact that greater investments in the energy sector would have on the economy. “A significant increase in investments in distribution networks could generate up to 40,000 jobs in Spain,” but that would call for measures such as “lifting the maximum investment limit of 0.13% of GDP currently set out in Spanish law.” In the field of renewable energy , speeding up the installation of new capacity to 2025 “would entail investments of €32 billion and would quickly generate 90,000 jobs across the country, especially in rural areas.” He also argued in favour of boosting energy storage capacity, which makes the system more flexible: “Investing €5 billion in hydroelectric pumping and batteries between now and 2025 would help create 14,000 jobs.” Boosting the electrification of other energy uses This morning, Ignacio Galán explained the advantages of encouraging the electrification of other energy uses, leading to highly relevant investments in sectors such as air conditioning: “Replacing gas boilers for heat pumps would mean a €40 billion investment and 110,000 new jobs including manufacturers and installers, as well as leading to better air quality in cities.” In the transport sector, bringing forward investments in charging infrastructure and the electrification of urban bus fleets to 2025 would entail investments of €5 billion and 14,000 jobs. Lastly, the chairman of Iberdrola urged Spanish businesses not to miss the chance to develop new technology like green hydrogen. “Decarbonising 25% of industrial hydrogen would involve investing over €4 billion and creating 11,000 jobs in a new national industry,” he explained. Taking urgent measures To leverage the opportunities that the electrification of the economy entails, “we have the technology, the human capital, and access to the necessary financial resources,” assured Galán, “but it is crucial to take several urgent measures.” Among those measures, he mentioned adjusting taxes based on the 'polluter pays' principle, revisiting the electrical market model, solving the issue of economic precariousness concerning basic and back-up power generation needed to ensure a secure supply, simplifying administrative procedures, providing greater support for R&D&I, training professional teams to specialise in this new digital and renewable reality, and defining an industrial policy that encourages Spanish industry’s development in these areas. He also ratified the group’s willingness to support and streamline the process. “We have already brought forward our investments, which will amount to €10 billion this year – almost double the average from the past few years.” Plus, in recent months, “we have placed early orders with our suppliers worth nearly €5 billion. This way we can continue to drive the industrial fabric’s progress and encourage its growth and competitiveness on an international level.” READ MORE
