CLOSURE OF COAL PLANTS

Iberdrola España completes the closure of its coal plants and moves towards green transformation

Iberdrola, group of which Iberdrola España forms a part, recognises that the fight against climate change is one of the main challenges facing the planet and, in order to minimise its negative impact, the global goal is to achieve a climate-neutral economy by 2050.  The transition to such a model will involve structural changes with a strong impact on certain regions, areas and groups. In order to leave no one behind, this transition must be fair and inclusive.

In its commitment to energy transition and the green economy, Iberdrola España promotes a fair and inclusive sustainable transition of shared value with society and aligned with the Paris objectives. Along this path, Iberdrola España is part of the "Agreement for a just energy transition for thermal power plants in closure: employment, industry and territories", together with the Ministry for Ecological Transition, the Ministry of Labour and Social Economy, other companies that own coal-fired thermal power plants in Spain and trade union organisations, assuming the commitments established for compliance with the 2015 Paris agreement and the Strategic Energy and Climate Framework in its Just Transition Strategy. This strategy promotes ensuring that workers and territories take advantage of the opportunities of the transition and minimise its negative impacts through accompanying and reactivation measures.

Green Transformation of the Lada and Velilla regions

To avoid job losses due to the closure of the Lada and Velilla plants, Iberdrola España has initiated several green transformation plans in these regions. These plans include investment in renewables, the creation of citizens' platforms, circular economy projects and stimulating businesses and local employment around green principles and innovation with support for local enterprise.

  Galvanising the local industrial fabric

The construction of these projects is contributing to stimulating the local and national industrial fabric, and to creating employment in the region, as practically all jobs in field and civil work are being done by local companies.

In Asturias, over the last 18 months the contracts assigned to local companies by Iberdrola España have reached 300 million euros in value, and in Castilla y León the company now makes annual purchases for 150 million euros from over 700 companies in the community, allowing for the creation of 265 jobs a year.

  Citizens' Innovation Platform

Iberdrola España's green recovery plan for both areas also includes the launch of Citizens' Innovation Platforms to channel entrepreneurial initiatives, which will serve to accelerate collaboration processes between the public, public bodies and companies.

In July 2023, the activity of both platforms came to an end after three years of intense activity. In order to detail the methodology used in the programme, a report has been prepared including various aspects of the projects dealt with and evaluated during the listening and co-creation processes of the activities. The Platform's work has allowed to create synergies between existing projects in the territory and to promote the development of new initiatives.

  Circular economy

Another point is the promotion of the circular economy by installing plants for the recycling and reuse of ash, slag and plaster that have come from old thermal power stations, to turn them into new materials for the construction sector.

  Sustainable mobility

All of this is complemented by greater investment in sustainable mobility, with the roll-out of a charging infrastructure for electric vehicles, and the analysis of innovation projects related to new technologies, such as energy storage, green hydrogen production, etc.

Get to know the Velilla project  [PDF in Spanish]

Get to know the Lada project  [PDF in Spanish]

Iberdrola España, committed to the fight against climate change

With these closures, the company is accelerating its firm commitment against climate change. This way, and in reflection of its commitment to the decarbonisation of the economy, energy stability and clean energy, Iberdrola Group is a world leader in renewable energy and is 20 years ahead of the current energy transition. 

All of these actions are aligned with the commitments acquired by Iberdrola España after the incorporation of the Sustainable Development Goals into its corporate strategy and its support for the Paris Agreement (COP21) and to subsequent Climate Summits.

The company also materialises its commitment through green financing: Iberdrola España has become in the international benchmark of green bonds, the perfect source for the long-term financing of projects that make a difference from the environmental point of view.

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