| Type | Sociedad Anónima |
|---|---|
| Traded as | BMAD: IBE |
| Industry | Utilities |
| Founded | 1 November 1992 |
| Headquarters | Bilbao, Spain |
| Key people | Ignacio Sánchez Galán (Chairman and CEO) |
| Products | Electricity generation and distribution, renewable energy, natural gas production, sale and distribution, telecommunications |
| Revenue | €30.43 billion (2010)[1] |
| Operating income | €4.830 billion (2010)[1] |
| Profit | €2.871 billion (2010)[1] |
| Total assets | €93.70 billion (end 2010)[1] |
| Total equity | €31.66 billion (end 2010)[1] |
| Employees | 31,340 (average, 2010)[1] |
| Subsidiaries | Iberdrola Renovables, Iberdrola USA, Scottish Power |
| Website | www.iberdrola.com |
Iberdrola (IBEX 35:IBE) (Ticker Bolsa de Madrid: IBE), headquartered in Bilbao, is a private utility with a global footprint and over 150 years of experience. It has a workforce of around 33,000 employees in over 40 countries on four continents serving around 30 million customers.
Since embarking on its growth and international expansion plan in 2001, Iberdrola has become Spain’s largest energy group by market capitalisation,[2] the global leader in wind energy[3] and one of the world’s largest utilities by market capitalisation.
Thanks to major corporate transactions entered into in recent years –particularly the integration of Scottish Power (Scotland) and the acquisition of Energy East (USA)- and its operations in Mexico and Brazil, where it recently acquired distribution company Elektro, the group focuses its business around the Atlantic region, where it plans to continue growing.
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On 1 November 1992, Hidroeléctrica Española and Iberduero4 merged, taking the name of Iberdrola. • Hidroeléctrica Española (also known as Hidrola) was founded in 1907. • Iberduero was established in 1944 following the merger between Hidroeléctrica Ibérica (founded in 1901) and Saltos del Duero. Horacio Echevarrieta, a businessman from Bilbao, played a major part in the deal.
Iberdrola’s roots lie in Spain's industrialisation in the early 20th century, when Hidroeléctrica Ibérica was formed. But with the integration of Scottish Power and Energy East, and the company’s transformation into a major multinational group, this heritage has widened and now extends back into the 19th century on the other side of the Atlantic.
In 1840, a group of US entrepreneurs created the Hartford City Light Company, setting in motion the incorporation on the eastern seaboard of the US of Energy East, which would later become Iberdrola USA. Meanwhile, thousands of kilometres away in Spain, a similar process was underway. In 1901 in Bilbao, a group of entrepreneurs headed by engineer Juan de Urrutia established Hidroeléctrica Ibérica. In 1907, Hidroeléctrica Ibérica shareholders created Hidroeléctrica Española to supply Madrid and Valencia. A decade later, Saltos del Duero was founded, opening the country’s first hydroelectric facility in 1935,the Ricobayo power plant.
World War I forced the industry to seek new sources of energy and to install large distribution networks. Amid huge instability, US power companies began to join forces, attempting to become strong enough to withstand the economic and financial uncertainty. However, no one foresaw the magnitude of the stock market crash of 1929, which brought these emerging groups to the verge of ruin. In Spain, which had experienced a period of economic growth at the start of the 20th century, the industry suffered a severe setback in 1936 whose impact would be felt for the following two decades:the Civil War abruptly halted development, destroyed facilities and made maintaining the little equipment that remained extremely difficult.
Spain suffered international isolation in the 1940s and experienced extreme difficulty in acquiring technology and materials, prices of which were soaring. It was against this backdrop that Hidroeléctrica Ibérica and Saltos del Duero joined forces to form Iberduero.
In 1955, the Scotland Electricity Board came into being, paving the way for the creation of Scottish Power four decades later, in 1990. Two years after that, Hidroeléctrica Española and Iberduero[4] teamed up, creating Iberdrola. In the latter part of the 20th century, Iberdrola began expanding into Latin America, mainly Mexico and Brazil.
With ScottishPower and Iberdrola formed in Europe, in 1998 Energy East Corporation came into being in the US following New York State Electric & Gas's acquisition of Central Maine Power, Southern Connecticut Gas Company, Connecticut Natural Gas Company, Berkshire Gas Company and RGS Energy Group (the parent of Rochester Gas & Electric). Following the arrival of Jose Ignacio Sanchez Galan in 2001 Iberdrola began focusing on renewable energy. In 2007, the company continued its international expansion, increasing its presence in the UK and the US via the integration of Scottish Power and Energy East. Iberdrola has faced several merger attempts and made additional acquisitions: • Attempted merger between Iberdrola and Repsol in 1997, which failed due to a lack of agreement between the companies. • Attempted merger between Iberdrola and Repsol in 1999, which was rejected by La Caixa (Repsol’s main shareholder). • Attempted merger between Iberdrola and Endesa in 2000, which was stopped due the conditions imposed by Spanish Prime Minister José María Aznar. • Attempted hostile takeover bid by Gas Natural for Iberdrola in 2003, which was vetoed by Spain’s National Energy Commission (Comisión Nacional de Energía, CNE). • Acquisition of Scottish Power by Iberdrola in November 2006, which led to the integration of this company in April 2007. This gave rise to Europe’s third largest utility. • Acquisition of US company Energy East by Iberdrola in 2008. • Acquisition of Brazilian company Elektro in 2011.
Hidrola chairmen • José Luis de Oriol y Urigüen (1907-1941) • José María de Oriol y Urquijo (1941-1960) • Iñigo de Oriol Ybarra (1960-1992) Iberduero chairmen • Pedro de Careaga and Baseabe, Conde de Cadagua (?-1977) • Pedro de Areitio (1977-1981) • Manuel Gómez de Pablos (?-1992) Iberdrola chairmen • Iñigo de Oriol Ybarra (1992-2005) • Jose Ignacio Sanchez Galan (2005 to present)
• Deregulated business Iberdrola’s liberalised business combines power generation, and gas and electricity supply.The company had assets with combined installed capacity of 44,991 MW at the end of 2010. Iberdrola manages its production assets, comprising hydroelectric, combined-cycle gas, nuclear and co-generation plants located in 40 countries, mainly in Europe, North America and Latin America.
Output in Spain increased by 10.4% in 2010 to 60,852 GWh, of which 19,965 GWh were produced at hydroelectric plants, more than double the level of 2009. As a result, 79% of Iberdrola’s production in Spain was CO2 emission free.
• Regulated business Iberdrola Distribución Eléctrica, a subsidiary of Iberdrola in Spain, provides service to nearly 17 million people in 32 provinces across Spain. At the end of 2010, it had 10.6 million electricity supply points spread out across Spain, 1% more than the year before. Through these, it distributed more than 102,000 million kWh of power, an increase of 2.6% from 2009. The company’s market share of distributed electricity stood at close to 39.6% of the total for mainland Spain.
• Renewable energy business At the end of 2010, Iberdrola had operating installed capacity above 12,530 MW -51% outside Spain- producing a total of 25,400 million kWh of power in the year. The company plans to install 3,500 MW of additional capacity between 2011 and 2014. Its project pipeline at the end of 2010 comprised 62,613 MW at various stages of development in Spain and abroad.
• Latin America At the end of 2010, Iberdrola had 5,565 MW of installed capacity in Latin America. It produced over 37,800 GWh in the year and distributed some 33,400 GW to approximately 9.1 million users. This region accounted for 12.8% of group EBITDA in 2010.
• ScottishPower The UK’s 4th largest energy provider, ScottishPower has over five million customers across the country and 8,500 employees. It has generation assets in hydro, coal, combined cycle gas and cogeneration, as well as a distribution network covering 65,000 km of underground cables and 47,000 km of overhead lines. ScottishPower is involved in smart grid projects in Glasgow and Liverpool, and provides charging points as a member of the Glasgow consortium which is developing an electric vehicles project. At 31 December 2010, ScottishPower’s installed capacity in the UK (excluding ScottishPower Renewables) came to 6,036 MW. Production rose 8.3% in 2010 to 26,530 GWh. ScottishPower had 3.2 million electricity customers and 2.0 million gas customers at 31 December 2010. The volume of energy distributed during 2010 totalled 36,452 GWh, a decrease of 0.1% year-on-year.
• NuGeneration Iberdrola holds a 50% stake in NuGeneration (NuGen), a company planning to build a new nuclear power station of up to 3.6GW capacity at Sellafield in the United Kingdom.[4] The other 50% of NuGen is held by GDF Suez.
• Iberdrola USA Iberdrola USA, which became part of the group in September 2008, distributes electricity and gas to 2.5 million customers in the states of Maine and New York. With a staff of approximately 4,000 workers, it has offices located in its principal distribution centres in the two states. In New York, the business is shared by two operating subsidiaries -New York Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E)- both headquartered in Rochester. In Maine, Central Maine Power (CMP) has headquarters in Augusta. NYSEG serves 878,000 electricity customers and 261,000 natural gas customers across more than 40% of upstate New York, whereas RG&E serves 367,000 electricity customers and 303,000 natural gas customers in nine counties around the city of Rochester. CMP is the largest energy supplier in Maine, serving over 600,000 customers.
Iberdrola USA promotes important infrastructure projects in both Maine and New York. In Maine, CMP began construction in September 2010 of the Maine Power Reliability Program (MPRP), a $1.4 billion upgrade of the state’s transmission network which will also improve grid connections to Canada. It also began the roll-out of a smart meter installation plan for 625,000 customers in Maine. In New York, important infrastructure projects have been undertaken at Ithaca and Corning Valley.
• Iberdrola Ingeniería With projects in more than 40 countries and subsidiaries and branch offices in 27 countries throughout Europe, Asia, Africa and North and South America, Iberdrola Ingeniería and Construcción’s services include engineering, supply, construction and commissioning, turnkey projects and operational support. In 2010, the company’s portfolio of projects surpassed €2 billion.84% of this project portfolio is abroad, mainly in the US, UK, Latin America, Middle East, Russia and Eastern European countries.
• Iberdrola Inmobiliaria Iberdrola Inmobiliaria offers a range a real estate products, with a focus on residential property, holiday homes, offices, factory premises and shopping centres. In 2010, Iberdrola Inmobiliaria carried out the Koral Beach Elite (Bulgaria) and the Laguna del Mar (Puerto Peñasco, Mexico) projects. The Torre de Occidente is expected to be completed in Lisbon in 2011.
Iberdrola also owns hydroelectric plants, especially in the Duero river basin (provided by Iberduero) and the Tajo and Segura river basins, etc. (provided by Hidroeléctrica Española). Construction is still underway on the 848 MW La Muela II plant (at Cortes de Pallás, Valencia), scheduled to come on stream in 2012, and on the 175 MW San Esteban II plan, on the Sil river. The San Pedro II project (23 MW) has obtained a favourable Environmental Impact Statement (EIS). The Santa Cristina plant is in the public information stage. See also: Saltos del Duero
• C. T. de Castejón 2, in Castejón (Navarre), with 386 MW. • C. T. de Castellón, in Castellón, with two units with a combined 1,650 MW. • C. T. de Santurce, in Santurce (Vizcaya), with 402 MW. • C. T. Tarragona Power, in Tarragona, with 424 MW. • C. T. de Arcos de la Frontera, in Arcos de la Frontera (Cádiz), with two groups with a combined 1,613 MW. • C. T. Bahía de Bizkaia, in Ciérvana (Vizcaya), which is operated jointly with three other operatoes (EVE, Repsol YPF and BP with 25% each), of 780 MW. • C. T. de Aceca, in Villaseca de la Sagra (Toledo), of 391 MW. • C. T. de Escombreras, in Cartagena (Murcia), with 831 MW.
Iberdrola operates the following nuclear plants individually or jointly with other companies:11 • Santa María de Garoña • Almaraz • Cofrentes • Vandellós II • Ascó II
Iberdrola also owns three conventional thermal plants, mostly coal-fired, although they can also use fuel-oil and gas-oil). These are: • C. T. de Velilla, in Velilla del Río Carrión (Palencia), with two units, one of 148 MW and one of 350 MW, in operation since 1964 and 1984, respectively. • C. T. de Lada, in Langreo (Asturias), which had as many as four units, but now only has one of 155 MW and one of 350 MW, put into operation in 1967 and 1981, respectively. • C. T. de Pasajes, in Guipúzcoa.
Iberdrola wind turbine generators at Parque La Cotera (Burgos). Headquartered in Valencia (Paseo de la Alamdea), the Iberdrola Renovables, S.A. subsidiary had been listed on the stock exchange until July 2011, when Iberdrola decided to integrate it into the parent company.12 At the end of 2010, Iberdrola had operating installed capacity above 12,530 MW -51% outside Spain- producing a total of 25,400 million kWh of power in the year. The company plans to install 3,500 MW of additional capacity between 2011 and 2014. Its project pipeline at the end of 2010 comprised 62,613 MW at various stages of development in Spain and abroad.