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IBERDROLA to spend over €735 million on spanish power transmission and distribution infrastructure in 2008

  • To Continue to Improve Electricity Supply Quality
  • €400 million is earmarked for 45 new substations and the enlargement of 150 existing ones in Spain.
  • €225 is destined for power transmission lines, including 3,700 kilometres of new lines.
  • €105 million will be spent on some 3,000 new transformers to help meet growing demand.

IBERDROLA plans to spend at least €735 million on its electricity transmission and distribution infrastructure in Spain. This budget item, which may be enlarged to cover additional specific projects, is intended to continue to improve electricity supply quality to the utility’s Spanish customers.

The company will spend some €400 million on substations, building 45 new ones that together will add more than 2,700 megavolt amperes (MVA) of capacity. It will also refurbish and expand approximately 150 existing substations in its effort to meet demand growth in its market areas. Electricity demand in those areas climbed by 3% in 2007.

IBERDROLA will spend some €225 on very high, high, medium, and low voltage power lines, and another €105 million on transformers.

These investments will enable the company to commission 3,700 kilometres of new power lines and 3,000 transformers to meet growing demand in its electricity market. Of the power lines, 270 km. will be very high voltage, 170 km. high voltage, 1,900 medium, and 1,400 low.

The new installations will substantially beef up the company’s transmission and distribution infrastructure, which at the end of 2007 comprised 869 substations with an aggregate capacity of 57,000 MVA, nearly 82,000 transformers, 18,500 km. of very high and high voltage power lines, and 208,000 km. of medium a low voltage lines.

Objective: Improve Supply Quality by 26%

One of the pillars of IBERDROLA’s new strategy is to improve the reliability and quality of electricity supplies. It has set a goal of reducing outages by 20% in the 2008-2010 period, when it will also replace a large proportion of power meters, and add new 220 kV urban installations.

In 2008-2010, IBERDROLA plans to spend a total of some €2 billion on these infrastructures, 35% more than the total spent in 2005-2007, adding more than 5,800 km of power lines and building or expanding some 100 substations.



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.

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