Iberdrola “Energy Recoded” … Future Trends and Global Vision

March 4, 2026 at San Agustin de Guadalix, Spain (invitation)

The global energy system is undergoing the most profound transformation since the invention of the steam turbine. What powered the twentieth century — a centralised, fossil-fuelled model dominated by a small number of giant plants feeding electricity one-way to millions of passive consumers — is rapidly being replaced by a flexible, decentralised, data-driven ecosystem. In this emerging system, solar and wind provide the backbone of supply, batteries and other storage technologies balance variability, grids become digitally intelligent, and consumers become active participants. The result is a multi-decade shift driven by four powerful forces: decarbonisation, decentralisation, diversification, and digitalisation.

We explore these forces in detail, examines how leading companies — from Iberdrola and Enel to NextEra Energy and Vestas — are reimagining their strategies, and considers the obstacles and opportunities shaping the next era of energy: from wind and solar to hydrogen, nuclear, storage and beyond.

1. Decarbonisation: The Defining Imperative of Our Age

Decarbonisation is no longer merely an environmental aspiration; it is a structural economic transformation. Nearly every major economy now has a long-term emissions target, many aiming for net zero by mid-century. Investors expect firms to show credible transition pathways. Corporate buyers are signing renewable power purchase agreements at record rates. And electrification is expanding into sectors once thought immune to it.

The New Energy Build-Out

The first step in decarbonisation is the massive build-out of zero-carbon generation. Solar and wind are now typically the cheapest forms of new power capacity. Their falling costs have catalysed investment not only in Europe and North America, but in Latin America, Australia, the Middle East and parts of Africa.

Yet decarbonisation requires more than simply adding renewables; it requires transforming the entire value chain:

• replacing coal and gas with wind, solar, hydro and grids
• electrifying transport (EVs, charging networks)
• decarbonising buildings via heat pumps and insulation
• supporting industry through green hydrogen and low-carbon fuels
• integrating storage to balance variable renewables

How Utilities Are Responding

Many utilities are reshaping their portfolios accordingly. A common pattern is emerging: balancing regulated, stable-return network assets with selective investment in renewables and storage.

Iberdrola is perhaps the clearest example. It has evolved into one of the world’s largest renewable energy investors while shifting even more capital toward regulated grids in the UK, US and Spain. Networks offer steady returns in volatile energy markets, and Iberdrola is betting that grid expansion — to connect offshore wind, EV chargers and distributed solar — will define the next major wave of value creation.

Enel, similarly, has embraced what it calls a “platform” model. Alongside its enormous renewable development pipeline, it is investing in digitalised grids, customer services, flexible demand solutions, and electric mobility. Enel’s strategy recognises that decarbonisation is no longer just a generation play; it is an orchestration challenge across an increasingly complex system.

NextEra Energy in the United States represents a different flavour of the same shift. It is the world’s largest private investor in renewables and a pioneer in pairing solar with utility-scale batteries. NextEra’s model focuses on developing renewables and storage, combined with regulated utility operations in Florida. Its approach is highly data-driven, disciplined on project economics, and structured to take advantage of federal incentives and long-term customer growth.

Together, these companies demonstrate that decarbonisation is creating a two-speed model: stable network investment paired with higher-growth but more competitive renewable development.

2. Decentralisation: From Centralised Plants to Distributed Energy Systems

If decarbonisation is the “what”, decentralisation is the “how”. The old paradigm — one big plant, many passive consumers — is being replaced by millions of smaller assets spread across the grid: rooftop solar, community energy schemes, home batteries, EV chargers, heat pumps, industrial microgrids, and flexible loads.

The shift is accelerating for three reasons:

Technology Costs Have Crashed

Rooftop solar now often pays back within five to seven years. Batteries are becoming mainstream household items. EV adoption is rising fast. Industrial players are installing microgrids to cut costs and improve resilience.

Consumers Want Control

Decentralisation lets households and businesses:

• generate their own electricity
• reduce bills during price spikes
• sell excess energy back to the system
• maintain power during outages
• participate in local energy markets

The consumer is becoming a producer — a “prosumer”.

Systems Need Flexibility

With more wind and solar on the grid, flexibility is essential. Millions of small assets can collectively provide balancing services if they are aggregated, coordinated and incentivised. This is the rise of the virtual power plant (VPP): a network of distributed devices acting in unison like a single power station.

Strategic Implications

Utilities now recognise that value is shifting toward the edge of the grid. The most forward-thinking players are investing in:

• advanced distribution networks
• dynamic pricing models
• smart meters and sensors
• software to orchestrate EVs, batteries and heat pumps
• platforms that reward flexibility

Enel has been particularly bold here, building out its “Enel X” business for electric mobility, energy management and distributed services. In the US, companies like NextEra and Duke Energy are exploring demand-side flexibility as an integral part of system planning. Across Europe, network operators are racing to build the digital intelligence required to manage millions of distributed energy resources.

Decentralisation is fundamentally changing the shape of the energy industry — from top-heavy pyramids to dynamic, multi-node networks.

3. Diversification: Many Technologies, One Integrated System

No single solution can decarbonise the global energy system. This is why diversification — across technologies, fuels, and system services — is essential.

Wind and Solar as the Foundation

Wind and solar remain the beating heart of the transition. Their costs continue to fall, they can be deployed at scale, and they benefit from enormous industrial learning. Offshore wind, in particular, is becoming a competitive global industry, although recent cost inflation has forced developers to revisit pricing and supply-chain structures.

The Rise of Storage

As renewables expand, storage becomes indispensable. Lithium-ion batteries now dominate for short-term balancing, and multi-gigawatt projects are being built across the US, UK, Australia and China. But next-generation, long-duration storage technologies — flow batteries, compressed air, thermal storage, hydrogen — will help smooth weekly and seasonal variability.

Hydrogen’s Promise and Pitfalls

Hydrogen is central to many national energy strategies, especially in Europe and Asia. It has real potential:

• fuel for heavy industry

• energy vector for long-duration storage

• feedstock for chemicals and fertilisers

• fuel for shipping and aviation

• balancing agent for renewables-rich grids

Yet the sector remains embryonic. Costs are high. Infrastructure is minimal. Many announced projects struggle to reach final investment decision. Green hydrogen’s success depends on abundant cheap renewables, stable policy and major investment in transmission, pipelines and storage. It is promising, but not guaranteed.

Nuclear’s New Moment

Nuclear energy — long controversial — is receiving renewed attention. Existing reactors provide steady, low-carbon baseload, and new small modular reactor (SMR) designs aim to cut construction times and costs. While no SMR has yet been deployed at commercial scale, several countries view them as essential for energy security and grid stability.

The New Role of Equipment Manufacturers

Companies like Vestas, long known as turbine suppliers, now position themselves as lifecycle service providers. Software-driven optimisation, performance upgrades, repowering and predictive maintenance generate steady margins and strengthen customer relationships. The future value in equipment markets lies increasingly in digital intelligence, aftermarket service, and circular supply chains — not just hardware.

Diversification does not mean abandoning a focus on renewables. It means building an integrated system where different technologies reinforce each other — electricity, hydrogen, heat, storage, mobility, and digital infrastructure all working together.

4. Digitalisation: The Nervous System of the New Energy World

Digitalisation is the least visible but most transformative force of all. Without intelligence — sensors, software, data, analytics, automation — the new energy system simply cannot function.

What Digitalisation Enables

• Smart Grids
  Real-time flow management, predictive maintenance, automated reconfiguration, and improved power quality.

• Optimised Generation
  AI models adjusting turbine pitch, forecasting solar output, identifying faults before they occur, and refining maintenance schedules.

• Virtual Power Plants
  Aggregating millions of small assets into a single dispatchable resource.

• Dynamic Markets
  Consumers can respond to price signals, charging EVs or running appliances when renewable supply is abundant.

• Decarbonisation Tools for Industry
  Digital twins, process optimisation, emissions tracking, and integration of electric and hydrogen systems.

Why Digitalisation Becomes the Core Business Model

Energy companies increasingly see themselves as data companies. For example:

• Enel’s digital platform strategy

• NextEra’s data-driven development and operations

• Iberdrola’s investment in grid intelligence

• Vestas’s service platform VestasOnline, which uses advanced analytics to optimise performance

Digitalisation unlocks efficiency, reliability and customer value at a scale no traditional utility could ever deliver.

Obstacles: The Frictions Slowing the Transition

The shift to clean, decentralised, diversified and digital energy is underway, but far from smooth. Major obstacles include:

Grid Congestion and Connection Delays

Perhaps the biggest structural bottleneck in many markets. Developers often wait years for grid connection approvals. Transmission build-outs lag behind renewable growth. Without accelerated planning and investment, renewable expansion will slow dramatically.

Supply Chain Instability

Offshore wind, in particular, has faced rising input costs, tight turbine manufacturing capacity, and financial pressures on developers. Without more robust supply chains, costs may fluctuate unpredictably.

Policy Uncertainty

Subsidy changes, permitting delays, shifting regulations and geopolitical tensions create investment risk. Long-term clarity is vital for capital-intensive projects, especially hydrogen, nuclear and offshore wind.

Financing Challenges

Many renewable projects, especially in emerging markets, struggle to secure finance at reasonable rates. Developers face rising interest costs, and banks must balance climate commitments with commercial risk management.

Public Acceptance

Large energy infrastructure — transmission lines, onshore wind, new nuclear — often faces local opposition. Even the clean energy transition requires social licence.

(f) Skills Gaps

The sector needs thousands more electricians, engineers, data scientists, grid planners and hydrogen specialists than are currently available. Human capital may become the next critical bottleneck.

Opportunities: The Generational Upside

Despite the challenges, the opportunities are vast — arguably greater than in any other industrial transition this century.

 Global Investment Boom

Energy is becoming a growth sector again. Investment in clean energy technologies now exceeds investment in fossil fuels. By the early 2030s, annual global spending on clean energy could exceed the scale of the telecoms and automotive industries combined.

Electrification Everywhere

EVs, heat pumps, electric industrial equipment and data centres are expanding electricity demand. Utilities with strong grid positions stand to benefit enormously.

The Rise of Energy-as-a-Service

Instead of selling kilowatt-hours, companies will increasingly sell outcomes:

• guaranteed heating/cooling

• zero-emissions mobility

• optimised industrial processes

• subscription-based home energy systems

• resilience packages combining solar, storage and controls

This is a major commercial shift.

Corporate Decarbonisation Markets

Companies worldwide need credible paths to net zero. Utilities that can deliver integrated solutions — renewables, electrification, hydrogen, flexibility, storage — will capture enormous enterprise value.

Repowering and Upgrading Existing Assets

Early wind farms are reaching the age where replacement turbines can produce two to three times as much power. Repowering will become a core strategic focus for turbine manufacturers, investors and utilities.

Energy Independence and Geopolitics

Many governments now view renewables, nuclear, and domestic hydrogen as strategic assets. Energy security is becoming an economic imperative, driving faster permitting and state support.

How Leading Companies Are Navigating the New Landscape

Iberdrola

• One of the world’s largest renewables producers

• Strong emphasis on regulated grids

• Significant expansion in offshore wind

• Digitally advanced networks in the UK and US

• Strategic balance of regulated and merchant assets

Iberdrola’s model is increasingly viewed as a blueprint for the modern utility: predictable cash flows from networks, combined with selective growth in renewables and services.

Enel

• Aggressive pivot toward digitalisation

• Major renewables developer through Enel Green Power

• Large investment in smart grids

• Growing customer platform businesses

• Focus on electrification and distributed services

Enel is transitioning from traditional utility to infrastructure-and-services platform, betting heavily on data, automation and consumer integration.

NextEra Energy

• World’s major private renewables investor

• Strong battery storage leadership

• Regulated utility operations via Florida Power & Light

• Data-driven project development and portfolio management

• Disciplined focus on cost, scale and long-term contracts

NextEra exemplifies the idea that renewables + storage + grids is a winning combination in high-growth markets.

Vestas

• Leading global turbine manufacturer

• Strong service business with recurring revenue

• Focus on digital optimisation, predictive maintenance

• Supply chain improvements to protect margins

• Clear strategy around lifecycle value, not just hardware

Vestas demonstrates how equipment manufacturers can evolve into system partners.

The Shape of the Future Energy System

The future energy system is neither a simple extension of the past nor a utopian break from it. It is a hybrid: cleaner, smarter, more distributed, more electrified, and more integrated. It blends gigawatt-scale offshore wind farms with rooftop solar, nuclear with hydrogen, batteries with AI, and grids with millions of flexible devices. It is a system in which energy becomes:

• clean, because carbon has a cost

• decentralised, because resilience and flexibility demand it

• diversified, because no single technology can do everything

• digital, because intelligence is now the core asset

Companies like Iberdrola, Enel, NextEra and Vestas are not simply adapting to this future — they are helping shape it. They understand that the transition is not just technological; it is structural, cultural and economic. The winners will be those that think in systems rather than silos, that build partnerships rather than empires, and that invest in flexibility as much as in capacity.

The future of energy is not a distant vision. It is a rapidly emerging reality — one that will redefine industries, reshape geopolitics, create new economic winners, and determine the quality of life on a warming planet. The challenge now is to accelerate what is already underway, remove the bottlenecks, scale the solutions, and ensure that the benefits of the new energy world are shared broadly and equitably.

The transition is vast, complex and difficult. But it is also the greatest opportunity of our time.

Iberdrola 2025 Strategic Plan

 

Objectives

• Explore the drivers of future change, learning from the world’s most innovative companies
• Consider the challenges and opportunities of disruption, and specifically related to data
• Evaluate alternative future scenarios, and how we help our clients develop better futures
• Explore what innovation and transformation, means for every part of our business
• Reflect on what it takes to lead today and tomorrow, to be a performer and transformer.

 

Agenda

Session 1: World Changing

• Riding the waves of change – purpose, profits and value creation
• Customer agendas, health to home, social to sustainable
• Rethinking everything, discontinuities and disruptors
• Inspired by SpaceX and Biontech, Jio and DBS

Session 2: Future Scenarios

• Exploring alternative futures, change drivers and uncertainties
• Strategies and plans, making choices from the future back
• Building a future portfolio, to exploit and explore
• Inspired by the rapidly changing world of mobility

Session 3: Moonshot Innovation

• Moonshots and Gamechangers, breaking free of old mindsets
• Human and tech, customer and brands, sustainable and better
• Rethinking the future of energy, beyond traditional boundaries
• Inspired by Google and Twelve, Northvolt and Lanzatech

Session 4: Business Models

• 10 types of innovation, new business models and ecosystems
• Business models as a source of competitive advantage
• Dynamic business modelling and transformation
• Inspired by Seimens and Tesla, Schneider and Orsted

Session 5: Performer Transfomers

• What it takes to be a “Performer Transformer” – in mindset, roles and actions
• Creating tomorrow while delivering today, turning purpose into practical action
• Using the catalyst of external change to drive and guide your internal change
• Inspired by Satya Nadella, Anne Wojcicki, Melanie Perkins and Hamdi Ulukaya