Ángeles Santamaría. The Energy Transition, an Unavoidable Responsibility

Ángeles Santamaría, CEO of Iberdrola Spain, was our opening speaker for the 2019-2020 academic year. With a long professional career at the company, to which she has belonged since 2001, this energy expert addressed current topics.

Our speaker began by sharing her career, marked by her engineering studies at ICAI, a fairly common path in the energy sector, and expressed her gratitude to the Forum for the opportunity to discuss the energy transition.

So, what is the energy transition? It’s a change in the energy model, moving from the current model, which emits a significant amount of CO2, to an environmentally sustainable model that minimizes the impact of global warming.

To start discussing this, she wanted to share a reflection on the responsibility of companies, which was recently raised by The Economist in an article asking, “What are companies for?” This article started with the premise that capitalism has failed, and the 2008 crisis left deep scars on Western society. Many citizens were disappointed with the attitude of both companies and the state in difficult situations. As a result, citizens now demand more from both the public sector (the state and other administrations) and the private sector (companies). They call for a focus on fighting inequality, promoting diversity, and taking environmental responsibility. The response from the private sector to these demands is rooted in the recent definition of their purpose, understood as the reason for their existence and the values upon which they base their activities. This idea contrasts with the purely economic view of companies in the 1960s, surpassed in the 1980s by the concept of a mission. In line with this, Iberdrola’s purpose is defined as the pursuit of a more electric, healthy, and accessible energy model, ideas that respond to social demands and are fully aligned with the energy transition toward a decarbonized economy.

Focusing on the energy sector, Santamaría wanted to clarify the foundations of the current and future reality that are leading this sector down a single path: the need for evolution. This evolution is based on two pillars:

1. Environmental Aspect: Not just sustainability but joining forces to combat climate change from the energy sector.
2. The New Consumer: A more informed and environmentally conscious consumer who wants a service tailored to their needs.

Anticipating future developments, Iberdrola placed the development of renewable energy at the center of its strategy in 2001, which initially surprised its competitors. However, over the years, they have seen the wisdom in this decision, as it has positioned them as leaders in renewable energy. Nevertheless, our speaker admitted that this is only a small start on the long road ahead.

Regarding the challenge of combating climate change, she shared some specific figures:

• According to the International Energy Agency, the only model that could work is one in which emissions return to 1990 levels, while energy consumption remains the same as in 2017. To achieve this, we would need to change our way of life and energy consumption, affecting not only electricity usage but also sectors such as transportation, the chemical industry, and the mix of primary energy sources. This would require the implementation of truly disruptive policies.
• Focusing on Europe, the continent leading the fight against climate change, we can say that currently, the largest emissions occur in transportation, electricity generation, and industrial processes for heating and cooling.

The reality is that, at present, with available technologies, the most competitive emission-free power generation technologies are wind and solar. Therefore, the current trend is to try to electrify all possible sectors using these renewable sources of generation, reserving the use of fuels for sectors where a viable clean energy technology doesn’t yet exist.

Finally, she highlighted that Spain, as a member state of the European Union, has taken on its commitments by delivering the “National Energy and Climate Plan.” This plan outlines the measures that Spain will take by 2030 to meet European objectives for emissions reduction and energy efficiency. From this plan, a series of laws and regulations should emerge in the near future to aid in regulation and achieving these objectives. Furthermore, the implementation of the National Energy and Climate Plan will be highly beneficial for Spain. It will help reduce the country’s heavy dependence on fossil fuels, create industry and employment opportunities, and leverage investments in renewable energies, taking advantage of the favorable natural conditions we have.