Capital Markets & ESG Day
21 March 2024
Legal Notice
Capital Markets & ESG Day
Disclaimer
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Important information
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- This document and the information presented herein was prepared by Iberdrola, S.A. solely with respect to the presentation "Capital Markets & ESG Day" on March 21, 2024. The financial information contained in this document has been prepared and is presented in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS").
- In addition to the financial information prepared under IFRS, this presentation includes certain alternative performance measures ("APMs"), for the purposes of Commission Delegated Regulation (EU) 2019/979, of March 14, 2019 and as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415es). The APMs are performance measures that have been calculated using the financial information from Iberdrola, S.A. and the companies within its group, but that are not defined or detailed in the applicable financial information framework. These APMs are being used to allow for a better understanding of the financial performance of Iberdrola, S.A. but should be considered only as additional information and in no case as a substitute of the financial information prepared under IFRS. Moreover, the way Iberdrola, S.A. defines and calculates these APMs may differ from the way these are calculated by other companies that use similar measures, and therefore they may not be comparable. Finally, please consider that certain of the APMs used in this presentation have not been audited. Please refer to this presentation and to the corporate website (www.iberdrola.com) for further details of these matters, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS.
Legal Notice
Capital Markets & ESG Day
Important information
- This document does not contain, and the information presented herein does not constitute, an earnings release or statement of earnings of Avangrid, Inc. ("Avangrid") or Avangrid's financial results. Neither Avangrid nor its subsidiaries assume responsibility for the information presented herein, which was not prepared and is not presented in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"), which differs from IFRS in a number of significant respects. IFRS financial results are not indicative of U.S. GAAP financial results and should not be used as an alternative to, or a basis for anticipating or estimating, Avangrid's financial results. For financial information regarding Avangrid, please visit its investor relations website at www.avangrid.com and the U.S. Securities and Exchange Commission ("SEC") website at www.sec.gov.
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- Iberdrola, S.A. commits to carrying out its best efforts to achieve its ambition of carbon neutrality for its Scope 1 and 2 in 2030. For these purposes, it will align its strategy, investments, operations and public positioning with this ambition. Additionally, Iberdrola, S.A. is also committed to undertake the energy transition in a way that creates value for its shareholders, employees, clients, suppliers and the communities where it operates. Accordingly, Iberdrola, S.A. reserves the capacity to adapt its planning to successfully face its performance in key material aspects such as the value of Iberdrola, S.A., the quality of supply or the social, labor, and fair transition conditions. The abovementioned commitments are of aspirational nature.
www.iberdrola.com | 3
Strategic Vision
Ignacio S. Galán
Executive Chairman
Capital Markets
& ESG Day
Energy outlook
www.iberdrola.com | 5
Energy Outlook
Capital Markets & ESG Day
Electrification is unstoppable…
Self-sufficiency | Efficiency | Competitiveness | Decarbonisation |
…increasing energy security | …the only viable route | ||
Transport | Digitalization | |||
Elec: Road | Heating & | & Data | ||
Electricity | ||||
Industry Green H2 | Gr H2:Marine, Air | Buildings | Cooling | |
(Domestic & Ind) | ||||
Customer value & | New Industries | More | ||
experience | Affordability | |||
Data, Cloud & AI
…driving new sources of demand
www.iberdrola.com | 6
Networks: the enabler of the energy transition
Capital Markets & ESG Day
Networks investments need to double by 2030
SMARTER AND MORE RESILIENT NETWORKS…
More security of | • | Safe • Reliable • Flexible • Digitalized |
supply | ||
• | Integration of new onshore renewables | |
Renewable | • | Connection of new offshore wind projects |
penetration | • | Self-consumption |
• Reduction of congestion costs
…WITH ADDITIONAL INVESTMENTS AS NEW USES TAKE PLACE
Electric vehicle | Heat pumps | Data Centres |
Annual networks investments1
1,081 | |||||||
Bn $ | |||||||
Additional | |||||||
x3 | investment in | ||||||
the high | |||||||
scenario | |||||||
679 | 875 | ||||||
Bn $ | Bn $ | ||||||
Investment in | |||||||
330 x2 | 620 | ||||||
Bn $ | the low | ||||||
scenario | |||||||
Bn $ | |||||||
2022 2030 2040
1 Eur of Networks for 1 Eur invested in renewables (1.25 Eur in advanced economies)
1. Based on data from IEA WEO 2022-'23: Total Global Final Energy Consumption | www.iberdrola.com | 7 |
Low scenario: International Energy Agency's Announced Pledges Scenario; High scenario: IEA's Net Zero Emissions |
Transformation of the Electricity Mix
Capital Markets & ESG Day
Acceleration of renewable deployment to replace fossil fuels and cover new demand…
Power Demand (TWh)
Installed Capacity (GW)
…in Advanced Economies…
2022 | 2030 | |
~10,000 | +1.7% per | ~11,500 |
annum | ||
Renewables | ~5,600 GW | |
Fossil Fuels | 1.5x | |
Nuclear | 300 | |
~3,600 GW | 1,200 | |
Fossil fuels | ||
300 | -500 |
1,700 Renewables 4,100
+2,500
1,600
2022 | 2030 |
- Full coal/oil closure by 2030 (500 GW in US & Europe)
- Replacement of coal/ageing gas with renewables and new gas (mainly in the US)
- Start of replacement of first renewable projects (repowering opportunity)
2030 Outlook based on IEA APS Scenario
…and in Developing Countries
2022 | 2030 | ||||
~14,750 | +3.2% per | ~19,000 | |||
annum | |||||
Renewables | 1.8x | ~9,200 GW | |||
Fossil Fuels | 200 | ||||
Nuclear | |||||
2,800 | |||||
~5,000 GW | Fossil fuels | ||||
150 | |||||
-50 | |||||
2,850 | Renewables | 5,800 | |||
2,000 | +3,800 | ||||
2022 | 2030 |
- Gradual substitution of coal/oil with new gas (average age of existing coal 10-15years)
- Significant expansion of renewables
www.iberdrola.com | 8
Wholesale markets
Capital Markets & ESG Day
…driving a deep change in wholesale markets: Non-manageable renewables will require other technologies to balance supply and demand at all times…
Spain 2023 - Average generation mix
Pumping &
Exports
System Demand
Peak Thermal
Storage
Non Manageable Renewables Manageable renewables
Base Thermal
Exports
Pumping
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Source: ENTSO-e, OMIE
Spain 2030 - Average generation mix
Pumping &
Exports
System Demand
Peak Thermal
Storage
Non Manageable Renewables
Manageable renewables
Base Thermal
PumpingExports
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
www.iberdrola.com | 9
Wholesale markets: Value of manageable renewables and storage
Capital Markets & ESG Day
…increasing the value of storage in daily, weekly and seasonal cycles…
Storage Weekly Cycle1 | |||
>4 energy | |||
generation hours | |||
• | Energy mix | ||
leading to more | Generation | ||
intraday price | |||
volatility | |||
• | The number of | ||
prolonged | |||
periods (>4 | Pumping | ||
hours) of lower | >4 energy | ||
prices is | storage hours | ||
increasing | Average daily price | ||
Weekend | Weekdays | ||
Pumping | Generation |
Pumped Storage
- Ability to store energy for more than 18 consecutive hours
- Capacity to modulate daily, weekly and seasonal cycles
- Provide ancillary services
Battery Storage
- Short-termarbitrage: 2 to 4h
- Provide ancillary services
…and maximizing competitive advantages of manageable renewables and pump storage
1For illustrative purposes. Source: Iberdrola's information | www.iberdrola.com | 10 |
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Neoenergia SA published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 12:23:53 UTC.