Electrification, a process of "no return" despite the great blackout

MadridThe massive blackout of April 28th has not only put the spotlight on the Spanish electricity system, but also on the transformation that the state has been undergoing for some time, which has to do with the electricity mix, with much greater penetration of renewable energies and less participation of technologies such as gas plants, which runs parallel to the process of electrification of the economy, the activity of businesses, transport, and homes, thus reducing emissions.

Although the incident has sparked debate about whether it is being done correctly or not, there are those who have no doubt that the electrification process and everything surrounding it is "one of no return," in the words of Juan Ba'. "There is a clear trend toward the decarbonization of industry. Processes that emit emissions are being replaced by processes that are powered by renewable electricity, and this will continue. There is also an improvement in [business] efficiency," says Bachiller. "I think that in any case, measures to strengthen the [electricity] grid will be accelerated."

"Precisely, one of Spain's advantages is that, by having renewable resources, it produces electricity at a cost that helps companies' competitiveness," Bachiller told ARA. In this context, the multinational does not believe that investments linked to the energy transition and electrification will slow down. "After the blackout, we are in an initial phase in which companies are reviewing their specific situation, whether they have generators or batteries, but I believe that in the medium term, investments in the [electrical] grids will continue," the executive added.

Towards a "reliable, secure, and competitive" supply

"What we need to ensure is that the [electricity] supply is reliable, secure, and competitive in the future," Bachiller recalls. For someone who has been working at ABB for more than 20 years and knows the sector firsthand (he spent time at Red Eléctrica), the key to this equation will be the deployment of storage that accompanies renewable energy, but also those "technical solutions," in Bachiller's words, that guarantee the inertia of the system. This is what makes it possible to compensate for or avoid potential disturbances in the electricity grid, and which naturally contribute to the generators of hydroelectric, nuclear, or thermal power plants.

Multinationals like ABB have been working for some time to provide these "solutions," both for energy generators (the companies that produce) and for the system operator—in the Spanish case, Red Eléctrica. Essentially, it's about incorporating elements that allow the safe penetration of technologies such as photovoltaics or wind power, which do not contribute inertia to the system, according to ABB. "The technology is [...] A lot of work is being done from a technical and rigorous perspective around technologies that are in line with this reinforcement of the grid to integrate renewables," explains Bachiller, who gives the example of synchronous compensators, already recognized in the regulations.

Regarding storage, Bachiller believes that the role of pumping in the case of hydropower or the deployment of hydrogen have a "promising future," although currently their deployment is progressing slowly, he acknowledges. However, he points to an increase in the hybridization of solar and wind technology with storage projects, such as batteries. "We don't believe there will be storage linked to the transmission [electricity] grid itself," he adds.

"What we will have to review is whether, beyond the criteria that must accompany new wind or solar plants that connect to the grid in the future, it is necessary to make any additional investment in existing renewable generation to ensure its proper functioning. In any case, I have no doubt that the process will continue." Here, the sector has long been demanding a clear remuneration framework. Finally, ABB points to digitalization as a key element in managing the system. "It means making [electricity grids] more intelligent and even allows for the management of microgrids that will be part of the electricity mix in the future," ABB indicates. These grids, which are outside the main grid, operate autonomously even when the grid is disconnected.