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Electrification

Electrification: the most efficient solution for decarbonising the European economy

Energy produced by renewable energies is the most efficient and cost-effective solution to reach EU decarbonisation targets.

Within the framework of the European Green Deal, the European Union aims to achieve climate neutrality by 2050. To do so, it has increased its goals for 2030, committing to reduce emissions by at least 55% from 1990 levels.

To reduce current levels of greenhouse gas emissions, we must focus on renewable energies and increase the number of vehicles, products and processes that can be changed to electric. Today, energy from renewables is the most efficient and cost-effective solution to reach these targets. 

 

What are the benefits of electrification?

 

Electrification by sector: transport, construction and industry

Electricity produced by renewable energy is the best way to decarbonise energy use in the sectors that cause the majority of greenhouse gases. These are mainly in transport, construction and industry.

Transport: If we wish to reach zero net emissions by 2050, 60% of vehicles sold worldwide will need to be electric by 2030. This is why at Endesa X, we work to facilitate access to charging points for all electric vehicle drivers. Our target is to reach 66,000 recharging points by the end of 2025 (public and private), five times more than at the end of 2022. 

The construction sector accounts for 40% of total energy consumption, 75% of which is produced with fossil fuels, mainly for heating. For this reason we are working to offer our customers digital solutions for their installations and energy consumption. From Endesa X we offer smart devices to efficiently manage heating, installation of solar panels and charging points for electric vehicles.

Companies in the industrial sector that transform raw materials into consumer products, must also focus on reducing greenhouse gas emissions. Direct electrification of industrial processes will need to reach 37% by 2030 and 46% by 2050 to meet European targets. This can be achieved by changing the fuel used in industrial processes such as iron and steel through the use of electric arc furnaces. In sectors that are difficult to electrify, indirect electrification with green hydrogen or e-fuels may be used.

The electrification of end-uses will have to rely on generation of increasingly decarbonised energy, with the share of renewable energy increasing to 60% by 2030 and 84% by 2050. For this reason we are making a great effort to develop renewable energy parks and to digitalise the network. We aim to be a 100% decarbonised company by 2040.

“We aim to be a 100% decarbonised company by 2040”.

Indirect electrification, another great ally

Another way to decarbonise the economy is with indirect electrification. For those “hard-to-shrink” sectors, such as aviation and long-distance shipping green hydrogen can be produced from renewable electricity and thus carbon neutral fuels in gas or liquid form.

Green hydrogen costs remain higher than blue. But it should begin to decline as manufacture of electrolysers increases. Monitoring the evolution of the green hydrogen market is key to identifying additional business opportunities and contributing to decarbonisation in the coming years.

Gráfica que representa la electrificación directa e indirecta por sector.
Gráfica que representa la electrificación directa e indirecta por sector.

Electrificación directa frente a indirecta por sector

Transporte

  • Vehiculos

Electrificación directa: sí

Electrificación indirecta: no

  • Naval

Electrificación directa: sí (Cold ironing)

Electrificación indirecta: sí (Larga Distancia Sistema de propulsión naval)

  • Trenes

Electrificación directa: sí

Electrificación indirecta: sí (Si directa no es posible)

  • Aéreo

Electrificación directa: no

Electrificación indirecta: sí

 

Edificios

Electrificación directa: sí

Electrificación indirecta: no

 

Industria

Electrificación directa: sí

Electrificación indirecta: sí (En sectores difíciles de reducir, H2 como materia prima y reemplazo para producir calor de calidad superior).

Investment in infrastructure and distribution networks

Distribution networks are essential to electrification and must gain flexibility to ensure quality of supply.

The digitalisation of distribution networks allows consumers to take a proactive role in the energy system and favours more efficient and sustainable use models.

To achieve zero emissions in 2050, investment in electricity networks will be very important.

Therefore, in our 2024-2026 Strategic Plan, 2,600 million euros will be allocated to the digitalisation of the grid, with the aim of further improving the quality of service and facilitating access to new ways of producing and consuming electricity.

Our projects about promotion of a better service

Continue reading about Sustainability Plan

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