In the next three years Spain’s utility group IBERDROLA plans to spend €225 million on research, development, and innovation, in keeping with its strategic plan for the 2008-2010 period, unveiled at the end of 2007 by Chairman Ignacio Galán. The group’s research projects reflect its commitment to remain at the forefront of innovation among the world’s electrical utilities.
The company, which regards R&D as a mainstay of its business that enables it to meet such challenges as the shortage of energy and the increase in energy demand, will centre its efforts on fostering development of the strategic areas of its business in order to create value, improve efficiency, and strengthen its commitment to sustainable development.
At the same time, IBERDROLA intends to become one of the most outstanding companies in R&D management, implementing a common strategy for all business areas, cooperation with its technological suppliers, and nourishing a culture of innovation among its employees.
Specifically, the company plans to spend €140 million on R&D in its renewable and deregulated power business areas —€70 million, or 31% of the total budget, on each— while €50 million (22%) will be spent on research in the regulated business, leaving €35 million (16%), for other areas, such as information technology.
IBERDROLA’s R&D initiatives in the renewables area will focus on the optimisation of the least developed technologies, such as solar thermal, biomass, and wave energy, and on new infrastructures that facilitate the transmission to the grid of the energy generated from these sources.
In the unregulated electricity business, IBERDROLA plans to launch projects in such fields as the operation and maintenance of power plants in ways that increase their efficiency, and in clean-energy technologies such CO2 sequestration.
Over the news three years the company will also seek new ways to soften the environmental impact of power plants, along with new tools for enhancing their safety and surveillance.
A better quality of service
R&D efforts in the regulated electricity business will be aimed at improving the quality of service, and will entail work on improving the integration of compact substations, increasing the capacity and reliability of overhead power lines, and developing new underground lines with higher yields.
In this area IBERDROLA will also seek new materials and equipment, develop intelligent networks to improve efficiency, devise new forms of natural gas distribution, and develop communications networks for monitoring, control, and management systems.
All IBERDROLA’s research, development, and innovation efforts are aligned with its commitment to sustainability, protection of the environment and of biodiversity, the reduction of environmental risks, and the softening of the visual impact of its installations.
Within this framework, the company’s €225 million R&D budget for the 2008-2010 period reflects a strategy aimed at the constant optimisation of available resources and knowledge to ensure the introduction of the most appropriate technologies that bring benefits and competitive advantages to shareholders, customers, and employees.
This information does not constitute an offer to buy, sell or exchange, nor does it constitute the solicitation of an offer to buy, sell or exchange securities. Iberdrola, S.A. shares may not be offered for sale or sold in the United States except through a statement of effective notification in conformity with the provisions of the Securities Act or when a valid exemption from the obligation to provide such notification has been granted.