Energy is once again a top priority in the international political agenda, highlighting its importance as a key strategic factor and anticipating a scenario of rapid and profound transformation. A concise summary of some of the issues which in the last twelve months have prompted government debate, international agreements, headlines and media analysis will serve to showcase the magnitude and complexity of energy challenges and their impact on a global scale.
Aspects such as the US ‘energy revolution’ and the geopolitical implications of the use of fracking to access vast shale oil and gas resources; the historic energy sector reform in Mexico; the energy alliance between Russia and China and the latter’s decision to triple its electricity production from nuclear sources in six years to meet emission reduction commitments, all coexist and interact with issues such as the collapse in oil prices, the loss of competitiveness of European industry due to rising energy costs relative to other countries like the United States; the insufficient interconnection of Europe’s electricity and gas networks and the diversity of EU fiscal policies hampering the creation of a single market for energy, or the possibility (and urgent need) to reach a binding international agreement to reduce greenhouse gas emissions at the upcoming climate summit in Paris in December this year.
These and other international energy challenges as well as finding solutions to ensure safe, sustainable and competitive energy supply will be analyzed and discussed this week in the new edition of the World Economic Forum in Davos, which I will comment on in my next post.
The Iberdrola Group is well-placed to face the global energy challenges and indeed to become one of the key drivers of energy model change. The best way to achieve this is by ensuring we meet the goals we set ourselves for this three-year programme, where we will invest €11.5 billion gross, and continue to advance the development of our major projects, as we did in our core markets in 2014.
The commissioning of West of Duddon Sands, our first offshore wind farm in the Irish Sea, along with new onshore wind farms being built in the United States, United Kingdom, Mexico and Brazil; the MPRP electricity transmission project and the installation of the subsea HVDC cable connecting Scotland, Wales and England; the implementation of smart grids in Spain; our plan to build and expand CCGT plants in Mexico, taking advantage of the opportunities provided by the energy reform, and the construction of new hydroelectric power capacity in Brazil, all demonstrate Iberdrola´s ability to contribute to the energy, economic and social development of the countries where we are present, with the most innovative, cutting edge and sustainable technologies.
But in addition to our financial strength, the quality of our assets, our technological expertise and the excellence of our teams, which are evident in projects like those mentioned above, we have a tool that I consider essential to successfully tackle the global energy challenges: a business model based on a long-term vision, ethics, transparency and integrating people and cultures.
These principles constitute the essence of our commitment to corporate social responsibility and sustainability, for the benefit of our shareholders, employees, customers, suppliers and society at large, whose interests and needs we aspire to meet in a balanced way.
An unequivocal and permanent commitment has consolidated the Iberdrola Group’s presence in the strictest and most relevant sustainability and reputation indices, and has earned the Company many prestigious awards. One of the most recent was the Responsible Capitalism Award, which I was honored to collect from the First Group on behalf of Iberdrola from Secretary of State and Leader of the House of Commons and former Foreign Secretary, the Rt Hon William Hague, last December.
