The new strategic plan outlines essential strategies that define the actions that we must carry out, and transversal strategies that arise from the criteria on how the actions need to be executed. The new plan represents a substantial change from the previous one, as it strengthens the criteria of efficiency in order to adapt the Company to new, more restrictive regulatory and remuneration scheme, and provides a greater scope for expanding the Company’s business base as an alternative path for the growth of the Company.
Essential strategies of the Plan
The essential strategies of the plan are centred on the efficient management of the TSO and the fibre optic networks, which will provide Red Eléctrica a solid growth in consolidated activities. The Company will further boost this growth through additional improvements based on new system operation tools, as well as on new opportunities arising in stable markets capable of offering adequate returns.
To achieve these goals, more than €3.5 billion will be invested in these activities, of which €3.1 billion is earmarked for investment in the power transmission grid in Spain and €475 million for the management of fibre optic networks, including in this amount the assignment agreement regarding ADIF’s dark fibre optic network. Moreover, around €1.0 billion will be invested to boost new activities such as energy storage in the Canary Islands and international investment in the electricity transmission activity.
Investments in the peninsular transmission grid will enable progress to be made towards achieving the minimum level recommended by the European Union regarding the commercial exchange capacity with the European system. In addition, investments are aimed at reducing system costs, allowing the evacuation of more efficient energy generation. In addition, investments in the two archipelagos seek to improve grid meshing – whereby boosting competition in the generation market of the Islands – the safe integration of renewable energy, the progressive substitution of fossil fuels by renewables and the reduction of system costs.
This integration of renewables will be achieved through energy storage as a tool of the system operator. The role of the system operator will be key in all the activities necessary to achieve a sustainable energy model.
The role that telecommunications will play will also be decisive and Red Eléctrica is the neutral operator of fibre optic networks in Spain. It is expected that, once the agreement of assignment of rights to use ADIF’s dark fibre optic network is formalised, the contribution of the telecommunications business to the Group’s revenue and EBITDA will be around 4% at the end of 2019.
In addition, the Company will analyse those investment opportunities in electricity transmission grid that may arise in stable markets and that offer adequate potential profitability.
Transversal strategies of the Plan
Red Eléctrica’s mission is geared towards the achievement of sustainable development. This entails the promotion of a more efficient electricity system, focusing on ensuring the economic sustainability of the Company in the mid and long term, and fostering socially-responsible relationships with the value chain, paying special attention to shareholders, customers and suppliers.
All this adapting the best practices in Corporate Governance, to increase stakeholders’ trust in the way we conduct our business, promoting at all times a corporate culture based on the values and commitments set out in our Code of Ethics. Additionally, the plan is focused on people and on seeking talent development, thereby promoting stable and quality employment, in a safe and healthy environment.
Red Eléctrica cannot disregard the environment in which it operates, and must build quality ties with the different stakeholder groups that integrate it, developing a relationship with society that aims to generate shared value, with a high commitment to the protection and preservation of the natural environment, ensuring the preservation of biodiversity and fighting against climate change.
Overall Objectives 2014-2019