How renewable energies influence business competitiveness

What are renewable energies?

Renewable energies include all energy sources that come from inexhaustible natural resources, as well as those that can regenerate continuously, such as solar energy, which harnesses sunlight trough photovoltaic panels and thermal systems; the wind (wind energy), which generates electricity through wind turbines; and water (hydroelectric energy), which generates energy by using the movement of water in rivers and reservoirs.

Biomass and geothermal energy also play a role as important renewable energies. Biomass is derived from the processing of organic materials such as agricultural and forestry residues or municipal solid waste, while geothermal energy harnesses the heat generated within the Earth to produce electricity or provide heating.

The growing importance and rapid expansion of these energy sources in the industrial sector stem from their ability to replace fossil fuels, their low greenhouse gas emissions, and their alignment with corporate sustainability goals.

Competing in sustainable markets

Working hand in hand with renewable energies allows companies to position themselves as strong competitors in markets where consumers, partners, regulating entities, and oversight bodies prioritise sustainable and environmentally responsible practices. In industries such as technology, food, and automotive, staying up to date with the transition to renewable energies is a major advantage, one that helps companies stand out and meet the growing sustainability demands of customers and other stakeholders with an interest in the company and its actions.

Since last year, Spain has set its sights higher in its mission to decarbonise its electricity system, thanks to a diversified energy mix that includes 19% solar energy, 4% hydroelectric energy, 25% wind energy, and 24% nuclear energy. Fossil fuels accounted for less than half of this energy mix, a balance that has enabled Spain to move forward, stand out among neighbouring countries, and position itself as a competitive player in the global energy sector.

Improving corporate image

Today, companies that integrate renewable energies into their production systems position themselves as responsible organisations committed to environmental protection, a distinction that considerably enhances their corporate image. A growing number of customers, users, and business partners value a company’s commitment to sustainability. This positive impact on its reputation and image helps strengthen customer loyalty, attract new clients, and foster strong relationships with partners, a combination of advantages that boosts its competitiveness in international markets where environmentally friendly practices are increasingly demanded.

Besides improving corporate image and reputation, the integration of clean energies also drives innovation and keeps companies at the cutting edge, enabling them to develop more environmentally friendly and efficient products and services. Adopting this type of energy ‘encourages’ companies to explore new technologies for energy management, both in distribution and storage. These ‘experiments’ not only help companies stand out from their competition but also help strengthen a corporation’s ability to adapt to a global market that is constantly changing and evolving.

Attracting investment, capital, and strategic partnerships

If a company demonstrates a strong commitment to environmental protection, it will undoubtedly attract more investment and financing opportunities than one that lacks a sustainable plan in its business proposal, since investors today prioritise projects that minimise environmental risk.

Initiatives such as sustainable investment funds, so-called green bonds, and loans with preferential rates, are readily available to companies that adopt sustainable practices. These tools in turn help boost their competitiveness in the global marketplace.

Being categorised as a sustainable business that champions renewable energies also opens the door to strategic partnerships with like-minded organisations and investors, such as renewable energy providers, government entities, and other stakeholders in the industry. These connections can help reduce implementation costs, improve access to renewable sources, and enable companies to benefit from tax incentives, financing options, and other forms of support that ease the transition toward clean energies.

Benefits and challenges in adopting renewable energies

In light of the growing number of national and international regulations aimed at enforcing environmental standards, companies that integrate renewable energies into their production processes are better positioned to access markets that require sustainability certifications by aligning with the requirements of regulatory bodies. This, in turn, increases business opportunities and opens doors to international markets.

However, beyond the benefits, there are also certain obstacles that companies must overcome when they decide to integrate renewable energies into their systems: high initial costs, the need to adapt existing infrastructure, or failure to meet all regulatory requirements. To address these challenges carefully and avoid surprises, it is essential to:

• Identify the most suitable renewable energy sources for the company's needs through a feasibility analysis and set sustainability goals in line with international standards.
• Form strategic partnerships with companies and organisations that share the same commitment to sustainability, in order to share costs and resources.
• Seek financing and take advantage of grants or subsidies to support sustainable initiatives.
• Train staff to optimise the use of renewable energies and energy management in corporate processes.
• Consider self-consumption solutions, such as installing wind turbines or solar panels, to help reduce long-term costs.

Ultimately, incorporating clean energies into a company’s operational system boosts competitiveness and strengthens its position and corporate image in the global market tied to sustainability. All of this is achieved alongside the environmental benefits generated by the progressive and widespread adoption of renewable energy in the business environment.

Renewable energies continue to gain ground within the global energy system. Currently, the decentralisation of energy and the emergence of smart grids have been transforming the way companies manage their energy consumption. Coupled with the growing demand for sustainability from customers, suppliers, and investors—as well as increasingly strict regulations— the adoption of renewable energies is a key factor in boosting a company’s competitiveness in the international market.