Ingenuity and innovation for the energy transition

Since the appearance of human beings, energy has driven the economic progress of civilizations, being a decisive factor in all industrial revolutions.

2023 has been key.

At COP28 in Dubai, almost two hundred countries agreed to progressively abandon fossil fuels, an unprecedented milestone that demonstrates global conviction about the need for the energy transition.

The good news is that we have the technological solutions to carry out this transformation and, in the specific case of Spain, an excellent position in terms of natural, industrial and human resources.

The high availability of wind, sun and water, to produce clean, indigenous and inexhaustible energy, results in lower energy costs and increased energy independence.

In 2023, more than 50% of the electricity consumed in Spain was of renewable origin.

On the other hand, there is a first-class innovation ecosystem.

In a hyperconnected world, the collaboration of all actors in the energy sector (public administrations, universities, technology centers, companies, suppliers, startups, consumers,...) is vital to move forward with agility and speed.

We have the courage to face the challenges we are working on, although we must not forget that the transformation we need is enormous.

Fossil fuels still account for more than 80% of the energy consumed worldwide and two thirds of primary energy consumption in Spain, according to the International Energy Agency.

Its weight is still high in uses such as transportation, building air conditioning and part of the industry.

That is where we have to focus, since electrification is unstoppable: electric vehicles, heat pumps and electrification of industrial processes, for which digitalized distribution networks and energy storage are essential.

To achieve this we need a collaborative and stable framework, with public and private financial commitments.

It is especially relevant for institutions to streamline bureaucracy and optimize the use of public funds for the development of innovative green technologies.

All this brings us to the central role of innovation, both in the short term (incremental innovation) and on a more distant horizon (radical innovation).

Improved or disruptive technologies that allow us to gain self-sufficiency and decarbonization without giving up competitiveness and security of supply.

It is necessary to continue researching and developing solutions such as green hydrogen and its derivatives, new materials to improve the capacity and duration of batteries, and energy efficiency solutions for demand, among others.

Another relevant area is digital technologies and artificial intelligence, fundamental to integrate, coordinate and operate an electrical system with intermittent energy, decentralized producers and new elements.

The energy transition is a long-distance race that began more than 20 years ago.

The advances that make it possible for us to meet climate objectives are the fruit of decades of innovation.

As an example, at Iberdrola we have been analyzing, testing and investing (or discarding, if it is not viable) for years in new technologies - smart grids, offshore wind energy, storage, electric mobility - key to demonstrating that sustainable business models in the transition energy are a current reality.

If Don Quixote were to travel from the 17th century to the present day, he would see that, thanks to ingenuity, the windmills of La Mancha are today true giants in the sea.

Ingenuity and innovation to achieve an electric and sustainable future.

Beatriz Crisóstomo Merino

is global director of innovation and environment at Iberdrola.