The Red Eléctrica Group will invest 6 billion euros over the next five years seeking to facilitate the energy transition, consolidate its position as a benchmark operator of telecommunications infrastructure, expand its international business and accelerate innovation in Spain by providing technological services to third parties and contributing to the development of an entrepreneurial environment by launching a ‘start-up’ accelerator programme.
These are the four pillars on which the Company’s new 2018-2022 Strategic Plan will be based and which proposes a balanced business model between the Company’s regulated activities and those operations subject to market risk. To achieve this goal, businesses will be diversified in a controlled manner, favouring the expansion of operations both in Spain and internationally. Moreover, this will provide the Group with a more coherent business structure, and the capitalisation of its different subsidiaries will be strengthened in order to comply with the debt and financial capacity ratios of the new official memo issued by the CNMC (National Commission on Markets and Competition).
The new Strategic Plan is the Company's response to the challenges posed by the transformation of the electricity generation model, marked by technological disruption and sustainability. Nowadays, electricity, telecommunications and talent represent the cornerstones of economic development and are also the hallmarks of Red Eléctrica's new strategy.
In line with the key role that Red Eléctrica is playing in the energy transition, the integration of renewables will be the core vector of investment, representing 25.5% of the total investment the period. In addition, interconnection capacity will be increased, both nationally and internationally, in order to guarantee the electricity supply when faced with the variability of renewable generation. Further actions include: the incorporation of new equipment and systems based on power electronics, smart maintenance of the transmission grid, and support for distribution networks, as well as those investments associated with the high-speed train.
As a whole, Red Eléctrica de España, as sole transmission agent and operator of the electricity system, will invest 3.221 billion euros, 53% of the total investment in the period. Furthermore, additionally to the 1.538 billion earmarked for the integration of renewables, a further 908 million will be added to strengthen the reliability of the transmission grid and the security of supply, 560 million for expanding and implementing the technological and digital tools required by an electricity system that demands a greater share of renewable generation and 215 million euros will be invested in bolstering electricity storage programmes, specifically the commissioning of the Soria-Chira pumped-storage hydroelectric power station in Gran Canaria and the development of energy-storage systems in the Balearic Islands and on the island of Tenerife.
With regard to the rest of the subsidiaries of the Group, investments will be mainly earmarked for the development of telecommunications and to boost international business expansion.
Red Eléctrica Internacional, present in Chile and Peru, will have a budget of 1.057 billion euros, 20% of the total budget foreseen in the period, in order to deploy new electricity transmission infrastructure in geographical areas outside of Spain, taking advantage of the Company's experience as the Spanish TSO. In addition, the technological area of the Company will have 1.708 billion euros, 17% of the total, which includes the acquisition of the shareholding of Hispasat, the launch of 5G and new advances in the development of the dark-fibre optic business.
The Red Eléctrica Group will continue to strengthen its 2030 Sustainability Commitment, understanding that its commitment is linked to the creation of shared value for all its stakeholders in the responsible execution of its activities. In this regard, the Company will continue to implement and carry out the four priorities defined in this field: be proactive agents in the fight against climate change through the decarbonisation of the economy; promote a responsible value chain; contribute to the development of the socio-economic environment, and anticipate change and take action.