Redeia Corporacion SA · BME:RED
Redeia Corporacion SA — Red Eléctrica de España — Debt Investor Presentation (October 2019)
28 slides from Redeia Corporacion SA's debt investor presentation, October 2019
Slide 1: Sustainability and Green Finance at Red Eléctrica de España
Sustainability and Green Finance at Red Eléctrica de España October 2019
Slide 2: Overview
Overview • Red Eléctrica at a glance • Sustainability at Red Eléctrica de España: a leader in the sector • Green Finance at Red Eléctrica: enabling the energy transition in Spain • Examples of Eligible Green Projects • Portfolio and debt structure Disclaimer Sustainability and Green Finance at Red E
Slide 3: Red Eléctrica at a glance
Red Eléctrica at a glance Sustainability and Green Finance at Red Eléctrica de España October 2019 3
Slide 4: Red Eléctrica de España at a glance
Red Eléctrica de España at a glance • Red Eléctrica de España is the owner and transmission system operator of the high voltage electrical grid in Spain. Founded in 1985, REE operates 44,000 km of transmission lines and in 2018 managed over 253 TWh of energy Key indicators (2018) (*) Established in
Slide 5: The Spanish electricity sector
The Spanish electricity sector 2009 Installed capacity ~ 97.8 GW 2018 Installed capacity ~ 104.1 GW 2030 Installed capacity. PNIEC forecast ~ 157.0 GW Energy from RES: 73,959 GWh – 26.4% of total energy generation Energy from RES: 100,340 GWh – 38.4% of total energy generation Energy from RES: 249,3
Slide 6: Integration of renewables in Europe
Integration of renewables in Europe Overview of RES-E capacity in Europe in 2017 RES-E capacities, per capita in the EU and its Member States (2005 and 2016) Excluded pump storage hydro RES-E capacity in the European Union: 35% 41% 98% Oslo 61% Helsinki Tallinn 13% Stockholm Riga 43% 55% 25% Vilnius
Slide 7: Sustainability at Red Eléctrica de España: a leader in the sector
Sustainability at Red Eléctrica de España: a leader in the sector Sustainability and Green Finance at Red Eléctrica de España October 2019 7
Slide 8: A long track-record of sustainability projects…
A long track – record of sustainability projects… 1) Projects aimed at supporting the connection of REE´s clean transportation investments renewable energy generation • High speed rail lines and electrical connections • Connections to: ❖ 17.0 GW Hydro ❖ 7.0 GW Solar Renewables 40.2 % ❖ 23.5 GW Wind
Slide 9: … and a challenging future to make the energy transition possible…
… and a challenging future to make the energy transition possible… Red Electrica’s activities are key to achieving Spain´s energy objectives Integrated National Plan Energy and Climate – 2030 Targets 2020 2030 2050 GHG Over 1990 Over 2005 Over 1990 Over 2005 Over 1990 21% reduction in GHG emissions
Slide 10: …and reduce emissions of CO2 equivalent in Spain
…and reduce emissions of C02 equivalent in Spain Reduction by sector (MtCO2-eq) Kioto’s Spain objective for 2008-2012: increase of 15 % compared to 1990. Spain fulfilled its Kioto’s objective in 2013. Spain should reduce emissions in a 36% to meet its 2030 goal. Emissions coming from electric genera
Slide 11: Contribution to the UN Sustainable Development Goals
Contribution to the UN Sustainable Development Goals • Red Eléctrica carried out a process for the identification and prioritisation of the most relevant SDGs for the Red Eléctrica Group in the countries and sectors of activity in which it carries out its activities, both for the direct operations o
Slide 12: Leadership in sustainability
Leadership in sustainability Sustainability signatories External Recognition: Indexes, Awards and Ratings In 2018, Red Eléctrica: 2002 UN Global Compact and Spanish Global Compact Network o has been recognized by the Dow Jones Sustainability Index (DJSI) as one of the best companies in the world in
Slide 13: Green Finance at Red Eléctrica: enabling the energy transition in Spain
Green Finance at Red Eléctrica: enabling the energy transition in Spain Sustainability and Green Finance at Red Eléctrica de España October 2019 13
Slide 14: Introduction to Red Eléctrica Green Finance Framework
Introduction to Red Eléctrica Green Finance Framework Rationale: Enhancing REE´s sustainability strategy Overview: Red Eléctrica Green Finance Framework structure By issuing Green Finance Instruments, REE intends: • Align its funding strategy with its sustainability strategy and its commitment to 1
Slide 15: Use of Proceeds: focus on the decarbonisation of the economy
Use of Proceeds: focus on the decarbonisation of the economy The net proceeds of Green Finance Instruments will be exclusively used to finance and/or refinance in whole or in part eligible projects (“Eligible Green Projects”), including related partnerships and joint ventures, in the eligible catego
Slide 16: Process for project selection and evaluation at a glance
Process for project selection and evaluation at a glance REE Green Finance Framework: Grid Planning team suggests eligible Eligibility Criteria Core team grid projects Sustainability, Control and Analysis of Investments, Finance, System Development and Construction REE internal Sustainability Pre-se
Slide 17: Management of proceeds and Eligible Green Project Portfolio
Management of proceeds and Eligible Green Project Portfolio Management of Proceeds Eligible Green Project Portfolio overview • Eligible Green Project Portfolio: Eligible Project Portfolio – Split by Eligible Category o Green Finance Instruments proceeds are Date: October 2019 allocated to an Eligibl
Slide 18: Green Finance Instruments Reporting
Green Finance Instruments Reporting REE will make and keep readily available reporting on the allocation of net proceeds to the Eligible Green Project Portfolio and, wherever feasible, reporting on the impact of the Eligible Green Project Portfolio, at least at category level, after a year from the
Slide 19: External Review
External Review Pre-issuance verification: Second Party Opinion (SPO) 1 • Investments in the integration of renewables into “Sustainalytics views positively investments in Projects aimed at directly Use of the electrical grid as well as the provision of increasing the production of renewable energie
Slide 20: Examples of Eligible Green Projects
Examples of Eligible Green Projects Sustainability and Green Finance at Red Eléctrica de España October 2019 20
Slide 21: Aragón – Valencia corridor
Aragón – Valencia corridor Electricity balance: Aragón: The Mezquita – Morella an the Mudéjar – Morella axes: • 15,207 GWh generation ✓ avoid overloads in the Morella-La Plana and Vandellós - La Plana lines • 10,709 GWh demand ✓ avoid additional thermal generation in Castellón and Sagunto • 56.4% RE
Slide 22: Canary Islands electric system
Canary Islands electric system Isolated system: - Low tension levels: 66 kV simple circuit axis - Low meshing - Grid incidents - Difficulty for repairs - Difficulty for RES integration 21.2% of Energy Not Supplied in Spain Lanzarote – Fuerteventura axis Gran Tarajal-Matas Blancas: This project allow
Slide 23: The transformation of the Balearic Islands energy mix
The transformation of the Balearic Islands energy mix Rómulo I Rómulo II • The Rómulo I project represented an electricity interconnection challenge that proved to be successful in paving the way to Mallorca – Ibiza interconnection eliminating the electrical isolation of the Balearic Islands and ena
Slide 24: Spain-France submarine interconnection
Spain-France submarine interconnection • The electricity interconnection between Gatika (Spain) Increase exchange and Cubnezais (France) will be the first fundamentally capacity up to: submarine interconnection between Spain and France • The new electricity link through the Bay of Biscay will 5,000
Slide 25: Portfolio and Debt Structure
Portfolio and Debt Structure Sustainability and Green Finance at Red Eléctrica de España October 2019 25
Slide 26: Portfolio and Debt Structure: ~EUR 2.3 billion
Portfolio and Debt Structure Investments Debt Structure at 30/06/2019 As forecasted in the Strategic Plan 2018 - 2022 Gross debt: €5.340bn 1200 800 400 0 2018 2019 2020 2021 2022 Total investments €3,228 M, mainly broken down as follows: Transmission Grid €2,880 M, Storage in the Canary Islands €185
Slide 27: Disclaimer
DISCLAIMER This document has been produced by Red Eléctrica Corporación, S.A. for the sole purpose expressed therein. It should not in any event be construed as an offer of sale, exchange or acquisition, or as an invitation to make any kind of offer, in particular for the purchase of securities issu
Slide 28: Thanks for your attention
Thanks for your attention www.ree.es
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