What is electrification?

Advantages of electrification

Economy Energy transition Electric mobility

Energy is part of our daily lives and is essential for us to carry out simple tasks such as heating our homes, starting the car or working on the computer in the office. However, our way of living has long been based on energy consumption that contributes to the emission of CO₂ –one of the most damaging greenhouse gases (GHG) in the environment. Shifting to a more sustainable, resilient and secure model requires us to change the way we generate and consume electricity.

In this context, electrification plays a key role. This concept refers to the process of using electricity generated from renewable energy sources –such as wind, solar, hydro or geothermal– to replace fossil fuels –such as oil or natural gas– to perform tasks or power systems. 

What are the advantages of electrification?

Electrification has a number of key benefits for our planet and our society. Here are some of its main advantages:

Advantage 1: greenhouse gas emission reduction

The generation and use of electricity from renewable sources produces lower GHG emissions compared to fossil fuels. This cleaner and more sustainable alternative is particularly relevant in sectors such as transport and industry – the main cause of global GHG emissions.

Advantage 2: Improved air quality

Fossil fuels are not only primarily responsible for climate change, but also generate harmful particulate matter that affects human health and causes millions of premature deaths around the world every year. The United Nations estimates that almost the entire world's population (99 %) breathes air that exceeds the air quality limits set by the World Health Organisation. Electrification can improve the state of this essential commodity by reducing dependence on fossil fuels for activities such as air conditioning in homes and transport.

Advantage 3: higher energy efficiency

Electrification can generate significant energy savings through increased efficiency in areas such as households, transport, construction and industry. For instance, electric engines are often more efficient than internal combustion engines, which means that they can obtain more useful energy from a given amount of source energy. This allows for a more efficient use of energy resources and a reduction in overall consumption.

Advantage 4: diversification in the energy matrix

Reducing dependence on fossil fuels makes the economy less vulnerable to changes in oil prices and the risks associated with oil extraction and transport. This is due to the integration of other energy sources —renewables— which generate greater flexibility in energy generation and boost the development of other emerging technologies.

Advantage 5: investment opportunities and new job creation

Electrification not only contributes to climate change mitigation, but also drives economic growth and job creation. This process can foster investment and employment in a wide range of sectors, such as in manufacturing and technology – with the deployment of new equipment and technologies, renewable energy systems, batteries, among others –, installation and maintenance, grid deployment, or in education and training – due to the necessary professional training of workers involved in electrification-related skills.

Advantage 6: Promotion of innovation and technological development

The drive for electrification promotes research and development of clean energy technologies, such as high-performance batteries, energy storage systems and smart grids. It also favours digitalisation, which provides more efficient solutions in electricity distribution and greater flexibility in energy use for consumers to optimise their energy use (e.g. thanks to smart thermostats). In turn, any technological advance exponentially drives others in the transition to a more sustainable model.

 SEE INFOGRAPHIC: Progress of the energy system towards the 1,5º C scenario [PDF]

Electrification in different sectors

Electricity from renewable sources is set to replace the direct use of fossil fuels in those sectors that are the main drivers of GHG emissions: cities and urban transport, heavy transport and industry.

Urban electrification and electric mobility

In the urban context, electrification involves a transition towards increasingly smart city models. In the building sector, it involves the use of efficient electrical systems for lighting, air conditioning, appliances and other equipment. It can also include the use of technologies such as LED lighting systems and energy-efficient appliances. Instead of relying on fossil fuels such as natural gas and oil for heating and cooling buildings, electrification can be driven by more efficient electrical systems.

In the context of sustainable mobility, electrification enables the increased use of electric vehicles in urban areas instead of vehicles with internal combustion engines. This involves using cars, bikes, motorbikes, buses and other means of transport that are powered by electricity, as well as implementing electric public transport systems and developing public charging infrastructure.

As part of our commitment to sustainability, at Iberdrola we work to promote the electrification of transport. In this regard, Neoenergia, Iberdrola Group’s subsidiary in Brazil, has been responsible for developing the largest electric corridor in the countryExternal link, opens in new window.  —which connects six capital cities along a length of 1,200 km and has 18 fast charging points.

We also have projects to boost mobility in corporations. ScottishPower (our British subsidiary) and Fleet Alliance (a car rental service in Glasgow, Scotland) provide a comprehensive solution for companies seeking to transition their fleet to electric vehicles: Fleet ZeroExternal link, opens in new window. . While Fleet Alliance is responsible for providing the appropriate models according to the needs of the companies, ScottishPower is responsible for the deployment of charging facilities.

Electrification of heavy transport

Road transport logistics is essential to the global economy as it enables the transit of goods and products, but it has become one of the most polluting sectors worldwide. Achieving energy autonomy through electrification and renewable energy sources is a major challenge. This may include using electric trucks for both urban distribution and long-distance transport, as well as developing charging infrastructure suitable for these vehicles, such as electric charging corridors and dedicated parking areas.

At Iberdrola we promote various initiatives in this regard, such as our alliance with the Business Association for the Development and Promotion of Electric Mobility (AEDIVE) for the electrification of heavy goods transport.

Industrial electrification

Electrification in industry involves using electricity instead of fossil fuels to power any kind of industrial process, such as manufacturing, food processing, mining or chemical production. These electric equipment and machinery are more efficient. This electrification may also involve developing electric heating and cooling technologies and implementing energy management systems to optimise final electricity consumption.

In addition to addressing the urban, industrial and transport sectors, Iberdrola has carried out various initiatives, especially through our PERSEO start-up programme, to seek solutions that facilitate electrification, for instance, in agricultural and livestock environments.

Electrification in favour of the energy transition

The international community has committed to reaching carbon neutrality by 2050 following the Paris Agreement. To achieve this goal, we need to bring about a step change in the way we produce, manage and use energy. At our current rate of consumption, electrification is the solution to achieve energy transition and decarbonise our society.

In fact, the International Energy Agency (IEA) published the "Electricity Grids and Secure Energy Transitions"External link, opens in new window.  report, in which it defends the key role of electricity grids in this transition. The organisation concludes that rapid action to improve and extend global electricity infrastructures is essential to effectively address climate change and secure electricity supply. The evolution of these infrastructures points to what are known as smart grids.

Electrification of the economy

The idea of electrifying the economy refers precisely to the process of using electricity as the main energy source in various economic sectors and activities to replace fossil fuels. This is a key step in moving towards a more sustainable and resilient economy, as it can reduce greenhouse gas emissions and dependence on fossil fuels, improve energy efficiency and promote technological innovation.

However, this transition to an electrified economy requires significant investments in electricity infrastructure, promoting clean and renewable technologies, as well as policies and regulations that favour the adoption of electricity technologies in all sectors. Electrifying the economy is an important part of global efforts to address climate change and move towards a more sustainable future.