María Sicilia (International Energy Agency): “Electrification is the key lever for a more secure, competitive, and sustainable energy system”

“Electrification is now the key lever for a more secure, less import-dependent, more competitive, and sustainable energy system,” said María Sicilia, Head of the Electricity Systems and Markets Division at the International Energy Agency (IEA), during an event held today at Esade Madrid by EsadeGeo and Fundación Naturgy to analyze current challenges in the governance of energy systems and infrastructure.

Following the Strait of Hormuz crisis, it has become even clearer that “electrification is the best path for advancing the energy transition” globally, Sicilia said, while noting that challenges related to infrastructure and system governance must also be taken into account.

According to Sicilia, the main barrier identified by the IEA across all regions is the bottlenecks facing the sector, as the expansion of electricity grids is progressing much more slowly than the growth in electricity generation or demand. In this regard, China, India, and other emerging countries lead in grid investment, while advanced economies in Europe, the United States, Japan, and Australia have stalled.

Stalled electrification and a lack of regional integration pose challenges for European and Latin American markets

The discussion, moderated by Juan Moscoso del Prado, senior fellow at EsadeGeo, reviewed the global energy landscape, with a particular focus on European and Latin American markets. Alberto Pototschnig, Deputy Director (World of Practice) at the Florence School of Regulation, identified energy efficiency, renewables-based electrification, and the decarbonization of sectors that cannot be electrified as the core pillars of European policy.

According to Pototschnig, the EU’s challenges include stalled electrification, the absence of a 2050 renewable energy target—essential for energy security—the lack of an effective roadmap for decarbonization, and the need for investment in the power distribution grid.

Latin America has one of the world’s cleanest power generation mixes and highly competitive conditions for encouraging renewable energy investment, said Fernando Cubillos, an expert in electricity markets and infrastructure and energy finance in Latin America. However, Latin American countries face challenges including curtailed energy due to insufficient grid capacity, security of supply during climate events such as El Niño, a lack of regional integration, and regulatory hurdles.

The event opened with institutional remarks by Michele Quintano, Director of Esade Executive Education, and María Eugenia Coronado, CEO of Fundación Naturgy. Quintano stressed the need to view the energy transition not only as a technological challenge, but also as an economic, business, regulatory, and consumer-behavior transformation in which geopolitics plays an increasingly important role. For Coronado, predictable regulation is essential to give investors confidence while remaining adaptable to rapidly changing conditions. She also emphasized the need for grids that “play a vital role, as they must be ready to accommodate growing demand, integrate new energy sources, and safeguard security of supply.”