The Group’s worldwide R&D activities in the area of electric energy distribution focus on improving the distribution grid, with an emphasis on worker safety, environmental issues, and improvement in the quality of supply.

IBERDROLA is blazing a path in smart grid development with various projects that seek to implement a modern electric grid based on remote management. In Europe, IBERDROLA Distribución leads the GRID4EU and iGREENGrid projects for the development of precise methods that allow the integration of renewable energy into the electricity distribution networks.

Other European projects recently approved are DISCERN, where different smart grid solutions are compared and the most optimised group of architectures is sought, and ADVANCED, which continues the work of the Address project and seeks to develop an action plan for the development of active demand management in Europe. In Spain, the Company started to install smart grids in seven Autonomous Communities (Castile-La Mancha, Castile and Leon, Extremadura, Madrid, The Basque Country, Murcia and Navarre) in 2012 after finalizing the first phase of the Star project in Castellón (Autonomous Community of Valencia).

Along the same lines, the Bidelek-Sareak project has been implemented in the Basque Country and the Price project is being carried out in the Corredor del Henares (east of the Community of Madrid and Guadalajara). In addition, IBERDROLA is at the point of completing its first smart grid projects in the United States of America, where it has installed more than 550,000 smart meters in Maine, and in Scotland, where 30,000 customers also enjoy the benefits of this technology in Glasgow.

| More information about these projects at Networks |

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