Interview with Juan José Sánchez, CEO of Capital Energy, about the “Positive Energy” initiative

• “Energy is, without doubt, one of the pillars on which to build the post-Covid growth model”

We interview Juanjo Sánchez, CEO of Capital Energy who tells us about the "Positive Energy" initiative where they are the promoter Company along with other companies from the energy sector, with the aim of contributing to economic and social recovery in Spain after the crisis caused by COVID19. The CEO of Capital Energy told us about the future of energy and the Company's object, which makes a decisive contribution to the Fair and Green Transition of the economy and society, with a decided commitment to innovation and talent.

What are the main aims of Positive Energy?
 
Positive Energy is a joint project, between several companies in the sector, that seeks to contribute to economic and social recovery in Spain after the health, social and economic crisis caused by Covid-19 by supporting innovative start-up and scale-up projects relating to sustainable mobility, decarbonisation and sustainability, social impact, digitisation and 4.0, so that they can put them in motion immediately, and can, in this way, contribute to alleviating the economic and social effects of the current situation.
 
Can you tell us how you began to cook up this initiative, which has also been driven by large energy sector companies like: Enagás, Red Eléctrica, CLH, Iberdrola, BP, EIT InnoEnergy, Acciona and the DISA group?
 
The initiative arose as a call to action by the main companies in the energy sector in Spain, and we wanted to join them. Over the last few weeks, the situation has had an impact on us all, to a greater or lesser degree, and I think that there has been a general sense of wanting to rally round and do something, each of us as far as possible, to get together and contribute in some way to alleviate the unprecedented health and social crisis. To contribute and to help... This is the point of origin of the initiative which was forged in just a few days and gave rise to the creation of the platform, which is a pioneer in Spain, that seeks to face up to the crisis using innovation.
 
How many projects did you receive from the entrepreneurs? What were the selection criteria? Why did you choose the Liight start-up?
 
The initiative got an extraordinary response. After launching the urgent call for tenders on 7th April, and in just 13 days, the Positive Energy+ Platform received 396 proposals from start-ups and scale-ups.
 
In the first instance, 14 projects were selected to take part in a Demo Day. These had varying levels of maturity and trajectory and addressed interesting innovations in decarbonisation, renewable energy, energy efficiency, storage, sustainable mobility and the circular economy. 
 
For example, among the selected proposals, there was a solution to boost renewable energy generation using floating wind turbine platforms. There was also a storage technology to enable better inroads by renewables into the energy mix, but there were also innovative projects to face up to the immediate future of employment for many companies after the health crisis we have been through, for example, a tunnel for eco-friendly disinfection and devices to clean virus and bacteria from the air by generating airborne plasma.
 
However, these 14 companies will not necessarily be the only ones closing off collaboration agreements. We have followed up with the companies by meeting them, and also others who were not initially selected for the Demo Day.
 
In our case, several start-ups interested us and we are talking to them to try and close off an agreement with at least one of them shortly. At Demo Day we were delighted, for example, with the proposal from Liight, a start-up that has developed software that, using gamification techniques, tracks various sustainable activities (e.g., recycling, cycling, use of public transport, etc) from which users are awarded points known as “lights”. The lights make it possible to compete in various challenges and win redeemable rewards. We consider this to be an interesting angle and with huge potential to encourage sustainable behaviour by people and businesses, true drivers of the necessary transformation of our economic and social model into a model of prosperity and growth that can only be sustainable.
 
Amongst those not attending the Demo Day, we also came across many start-ups and interesting ideas and we are assessing possible agreements with them. This is the case, for example, with Voltaware, a white label data analysis platform based on a machine learning algorithm that processes information about electricity, improving comfort and safety in the home and enabling better electricity bill management.
 
The aim now is that, from June onwards, the start-ups/scale-ups that agreement is reached with will start work on developing and implementing their solutions within a one-year time frame, in compliance with the timetable set.

Some of the challenges for our society, even more so today, if possible, in the health crisis caused by coronavirus, are caring for the environment and sustainability. How do you envisage the future of energy post-Covid?

Energy is, without doubt, one of the pillars on which to build the post-Covid growth model. Our energy production and consumption patterns determine, to a high degree, our economic growth model. Our current patterns are not suitable. They are at the heart of some of the most significant challenges faced by humanity, like local pollution and climate change. If the Covid-19 crisis exit strategies don’t take these factors into account, it will be a false exit, with a huge negative impact on our lives from many angles, not just environmental, but also on health, the economy and safety, etc. It goes further, because, in spite of the fact that we have been living with and fighting against the pandemic for a short time, studies have already been done that, for example, link further spread of the virus to high levels of local pollution.

The Covid-19 crisis exit strategy should be based on a profound transformation of our energy model into a fully sustainable model that accelerates take-up of low carbon generation technologies, such as renewables, that make the most of new technologies and digitisation to maximise efficiency and ensure more, better services for end consumers, who will become the centre of the energy playing field.
Looking after the environment is one of the aspects we have learned to value even more, if that’s possible, during these weeks, as a much needed asset for our health and our lives. Recently, we have been surprised to read news about the improvement to local air pollution levels in many cities, that have seen the “pollution cloud” disappear, revealing views of the mountain ranges that couldn’t be seen before or a night sky that has never been so full of stars. These things, after these weeks of lockdown and reflection, have contributed to intensifying necessary debates on the importance of kick-starting with our sights set on more sustainable energy. For these purposes, renewable energy has many, many advantages, because it is not just technology that does not pollute. There are already many cheap technologies, and technologies that, when installed and operational, can create evenly distributed employment and wealth, contributing to recover prosperity in what has become known as “emptied” Spain.

Sustainability has formed a part of Capital Energy’s DNA since our beginnings when, in 2002, the Company was incorporated in a context where there were still some years to go before the renewable energy boom. However, the Company’s management was always clear that the future had to be in the hands of renewable energy. 

How does Capital Energy plan to go into the post-Covid energy sector consolidation process?

Our purpose as a Company makes a decisive contribution to the Fair and Green Transition of our economy and society, with a decided commitment to innovation and talent. As a result of this commitment to contribute the transformation of the energy system since it came into being, Capital Energy now has one of the largest platforms of wind-based and photovoltaic energy projects in development and in the pipeline on the Iberian market. Renewable energy is the key to the new energy model and to compete effectively in these surroundings in the long term. We are immersed in an action plan to become a company that is integrated into the entire renewable energy and energy storage value chain - development, construction, generation and operation and, coming soon, retailing. We want to be the first 100%-renewable integrated electricity Company, taking the renewable energy that we ourselves develop and operate to our end-customers.

What criteria would have to govern Spanish energy sector companies after the crisis for it to continue being a sustainable/renewable energy development model? 

Energy companies must be completely scrupulous, respecting and conserving the environment, socially responsible and be governed by the highest standards of corporate governance, if we want to be an example and a driving force for the new growth and prosperity model.
 
Energy is the cornerstone of the model and we, as sector companies, must rise to the occasion. It’s not only all about developing renewables. It’s also about ensuring that new developments take into account the potential environmental, social and economic impacts on the areas, it’s about pitching in when the situation and society need it, it’s about operating transparently and honestly with all our interest groups.

Which are the sustainability areas where the energy sector has the greatest impact, and which must be more closely focussed on in the short/medium term? 

The energy sector must, on the one hand, try to give better service to the end-customer, with less energy consumption, and, on the other, resulting energy consumption should be supplied in the most sustainable way possible.
In the short term, replacement of polluting electricity generation technologies with competitive renewable technologies is probably the most economical way to create a more tangible impact in terms of sustainability. However, there's also a lot going on in terms of energy efficiency and electrification of end consumer sectors.

As the electricity we generate becomes more renewable, we should pair it up with new manageability solutions, such as energy storage and active demand management.
However, electricity that is more renewable, and higher percentages of electrification, will probably not be enough in the long term, due to the difficulty in electrifying some end consumers. Hydrogen, produced from renewable sources, should play a leading role here.

At any event, although some of these technologies, like energy storage or green hydrogen, will not have a differential impact in the very short term, if we want them to do so in the medium or long term we need to start to act now. At Capital Energy we have been working on unique, innovative projects along these lines for some time, preparing the way for technological diversification and to have a differential contribution to the energy model in the areas we operate in.

How important is communicating your responsible initiatives and how you work on them for the Company? 

As we said before, within our Company object we have the mission of contributing decisively to the Fair and Green Transition of our economy and society, reconciling the aim of decarbonisation, using renewable energy, with local interests where our infrastructures are located. To do so, we manage our business model responsibly and sustainably, including economic, environmental and social aspects, we promote the development of talent and innovation, and give differential value along the entire renewable energy value chain with an integrated focus.

Apart from the initiatives we have been developing, given the exceptional situation caused by Covid-19, Capital Energy has rallied round, supporting initiatives at various levels that enable the health and social impact to be mitigated. This is something that has also been highly valued by our employees.

Specifically, apart from getting involved in the Positive Energy+ project, the Company has donated 12,000 face masks, 400 coveralls, surgical glassed and hand sanitiser to various health organisations, such as the Hospital la Paz, Hospital General Villalba, Hospital Quirón Madrid and HUCA in Oviedo, and also donated 73 hospital beds to the Hospital Gregorio Marañón and the Hospital Clínico San Carlos. We are also collaborating on the Ennomotive innovation project, a non-profit initiative to develop OxyVita, a low-cost respirator.