Iberdrola

Iberdrola, S.A.
Sociedad Anónima
Traded as BMAD: IBE
IBEX 35 component
Industry Electric utility
Founded November 1, 1992 (1992-11-01)
Headquarters Bilbao, Spain
Key people
 Jose Ignacio Sanchez Galan (Chairman and CEO)
Products Electricity generation and distribution, renewable energy, natural gas production, sale and distribution, telecommunications
Revenue 31.418,7 million € (2015)[1]
Profit € 2.421,6 million (2015)[1]
Total assets 104.664 million € (end 2015)[1]
Number of employees
 28,836 (average, 2015)[1]
Subsidiaries Elektro Holding, Avangrid, Scottish Power
Website

Iberdrola (Spanish pronunciation: [iβerˈðɾola]) is a Spanish public multinational electric utility company based in Bilbao, Basque Country. Iberdrola has a workforce of around 31,330 employees in dozens of countries on four continents serving around 31.67 million customers. Subsidiaries include Scottish Power (Scotland), Avangrid (United States) and Elektro Holding (Brazil), amongst others. The largest shareholder of the company was, in 2013, Qatar Investment Holding; other significant shareholders are ACS, Kutxabank and Bankia.[2]

Since embarking on its growth and international expansion plan in 2001, Iberdrola has become Spain’s largest energy group by market capitalisation,[3] the global leader in wind energy[4] and one of the world’s largest utilities by market capitalisation. The company is a component of the Euro Stoxx 50 stock market index.[5]

History

Iberdrola was created on November 1, 1992 as a result of the merge between Hidroeléctrica Española and Iberduero.[6] Hidroeléctrica Española, also known as Hidrola had started activity in 1907, while Iberduero started in 1944 as the result of the merge between Hidroeléctrica Ibérica (1901) and Saltos del Duero.

The origin of Iberdrola lies in the Spanish industrialisation in the early 20th century, when Hidroeléctrica Ibérica was formed. As of 2011 and with the integration of Scottish Power and Energy East, now renamed Iberdrola USA, the company has become a major multinational group.

In 1840, a group of American entrepreneurs created the Hartford City Light Company, setting in motion the incorporation on the eastern seaboard of the US of Energy East, which would much 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 South of Scotland Electricity Board (SSEB) 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[7] and Energy East.[8] Iberdrola has faced several merger attempts and made additional acquisitions:

Company Chairmen

Hidrola chairmen
Iberduero chairmen
Iberdrola chairmen

Lines of business

Deregulated business

Iberdrola’s liberalised business combines power generation, and gas and electricity supply. The company had assets with combined installed capacity of 46.471 MW at the end of 2015. 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: 58,076 GWh in 2013, of which 14,795 GWh were produced at hydroelectric plants. As a result, 79% of Iberdrola’s production in Spain was CO2 emission free.

Regulated business

Iberdrola provides service to more than 32.26 million people. In Spain has over 10.91 million supply points and a total distributed energy of 92,676 GWh. The TIEPI indicator for supply quality has been situated at a value of 61,8 minutes (2015). In the United Kingdom, the affiliate for the ScottishPower Group has over 3,51 million distribution clients. The volume of energy distributed has been 36.213 GWh. In USA, Avangrid has 2.2 million power supply points of electricity and 0,99 million of gas. The volume of energy distributed has been 31.337 GWh. In Brazil, Iberdrola has distributed a total of 29.941 GWh in 2015. The number of customers has been 13.1 million.

Renewable energy business

At the end of 2015, Iberdrola had operating installed capacity above 14.787 MW producing a total of 32.812 GWh of electricity in the year.

Main subsidiaries

ScottishPower

The UK’s 4th largest energy provider, ScottishPower has 5,79 million customers across the country and 7,380 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. The installed capacity in the United Kingdom has reached 6,342 MW and production has been 19,936 GWh in 2013.

Iberdrola USA

Iberdrola USA, which became part of the group in September 2008, distributes electricity and gas to 2.44 million customers in the states of Maine and New York. 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 State 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.[10] 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),[11] 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 30 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 the area of R&D, is developing the Iter project.[12]

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.

Assets in Spain

Aldeadávila dam (Salamanca).

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 finished on the 848 MW La Muela plant (at Cortes de Pallás, Valencia)[13] and on the 175 MW San Esteban II plan, on the Sil river. The San Pedro II project has started its construction. See also: Saltos del Duero.

Combined cycle plants

Nuclear plants

Iberdrola operates the following five nuclear plants individually or jointly with other companies:

Thermal plants

Iberdrola also owns some conventional thermal plants, mostly coal-fired, although they can also use fuel-oil and gas-oil. Two of these plants are:

Renewable energy

Iberdrola wind generators in the Park La Cotera (Burgos).

Headquartered in Valencia (Paseo de la Alameda), the Iberdrola Renovables subsidiary had been listed on the stock exchange from December 2007 until July 2011, when Iberdrola decided to re-acquire the minority shares and integrate it into the parent company. At the end of 2013, Iberdrola had operating installed capacity above 14,247 MW -53% outside Spain- producing a total of 33,899 million kWh of power in the year.

Major assets

Iberdrola's Renewable Energy Operations Centres (CORE for their initials in Spanish) in Toledo, Portland and Glasgow are the world's most important renewables facilities and pioneers in the industry for their cutting-edge technology.These centres control all Iberdrola's renewables facilities and their related substations worldwide 24/7, 365 days a year. Iberdrola's first CORE was set up in Toledo in 2003, with the other two coming on stream since.

With initial installed capacity of 322 MW, it is currently being enlarged to 539 MW. The complex is situated south of Glasgow and covers an area of 55 square kilometres, the same as that occupied by Glasgow itself. It boasts the first renewables learning centre in the UK, enabling a large number of people to find out more about the various renewable energy sources.[14] Whitelee has obtained the prestigious Queen’s Award for its commitment to sustainability. The award recognises excellence in habitat management and the promotion of local community involvement in the renewable energies project.

The El Andévalo wind farm, which was commissioned in 2010, is the largest wind power facility in Spain and continental Europe. It has installed capacity of 292 MW and is located between the towns of El Almendro, Alosno, San Silvestre and Puebla de Guzmán in the south of Huelva province. To transfer the power generated by these wind farms and connect them to the transmission grid, Iberdrola has built a new 120-kilometre line between Spain and Portugal, which means this complex occupies a key strategic position in the power interconnections between the two countries.[15]

The Peñascal wind farm[16] is the largest facility operated by the company worldwide, with installed capacity of 404 MW. Located in Kenedy County, Texas, its innovative features include a radar that detects the arrival of large flocks of migratory birds and shuts down the turbines if visibility conditions represent a danger.

See also

References

  1. 1 2 3 4 "2013 Quarterly Report" (PDF). Iberdrola. Retrieved 2015-04-18.
  2. ↑ "2013 Sustainability Report". Iberdrola. 2013. Retrieved 2015-04-18.
  3. ↑ "IBEX35 Stock". Invertia.com. Telefónica de España, S.A.U. Retrieved 2015-04-18.
  4. ↑ "World leader achieves record output in first quarter of 2011". Energías-Renovables.com. Haya Comunicación, S.L. 2011-05-06. Retrieved 2011-05-06.
  5. ↑ Frankfurt Stock Exchange Archived 2015-11-19 at the Wayback Machine.
  6. ↑ Juan Carlos García Adán; Yolanda Diego Martín (September 2005). "El archivo histórico de Iberdrola y la industria eléctrica en España" (PDF). Santiago de Compostela. Congreso de historia económica. Retrieved 2012-01-16.
  7. ↑ Tim Sharp (2012-06-23). "Iberdrola plans to see out £5bn investment plan". HeraldScotland.com. Newsquest Media Group. Retrieved 2015-04-18.
  8. ↑ "Iberdrola to acquire Energy East Corp.". PowerEngineering.com. PennWell. 2007-06-26. Retrieved 2015-04-18.
  9. ↑ Steve Orr (2012-06-22). "Rochester Gas & Electric parent to invest $414 million upstate". DemocratandChronicle.com. Gannett Company. Retrieved 2015-04-18.
  10. ↑ "Spanish owned RG&E to invest $414 million". theLCN.com.
  11. ↑ "Iberdrola USA/CMP Near Completion of Largest Construction Project in Maine History". Electric Energy Online. Jaguar Media. 2015-03-25. Retrieved 2015-04-18.
  12. ↑ "Iberdrola Ingeniería spearheads development of key ITER project, valued at over €150 million". Iberdrola. 2013-02-01. Retrieved 2015-04-18.
  13. ↑ 14/10/2013 "HRH The Prince of Asturias and Iberdrola chairman dedicate Cortes-La Muela pumped-storage scheme in Valencia (Spain)" Check |url= value (help). Iberdrola. 2013-10-14. Retrieved 2015-04-18.
  14. ↑ "Whitelee Wind Farm joins major tourist attractions body". BBC. 2012-06-20. Retrieved 2015-04-18.
  15. ↑ "Griñán inaugura el complejo eólico de El Andévalo, el más grande de la Europa Continental". 20minutos.es (in Spanish). Schibsted Media Group. 2011-03-09. Retrieved 2015-04-18.
  16. ↑ "Iberdrola Opens 404-MW Penascal Wind Farm". RenewableEnergyWorld.com. PennWell. 2010-06-22. Retrieved 2015-04-18.

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