Sustainability

Sustainability

Socio-economic contribution of projects

The activity carried out by Red Eléctrica has undeniable benefits for society, among which the most obvious is that of maintaining the continuity and security of electricity supply. This benefit is more directly perceived by Society, but Red Eléctrica makes a major investment effort to ensure electricity reaches consumers under suitable conditions.

The significant level of investment made by Red Eléctrica also entails other benefits for society as the investment has a boosting effect on the country's economic activity. By encouraging production, an increase in wealth generation (measured through GDP) and, as a consequence, employment is promoted, and public administrations have more income that can be devoted to improvements in the general well-being of society.

In 2017, the Company adopted a methodology that allows us to estimate the total impact generated from an initial investment. The calculations are made taking into account direct, indirect and induced impacts.

Total impact of the investment in the transmission grid

(Investment in Spain in 2017)

 

  Direct Indirect Induced TOTAL
Production (m€) 310 300 30 640
Income - GDP (m€) 121 126 10 257
Employment (No. of jobs) 2,100 2,276 307 4,683
Tax revenue (m€) 48 48 4 100

 

  • Direct: Estimation and valuation of the following: the production chain, the creation of employment and the incomes generated in the national economic system as a result of an initial investment.
  • Indirect: In order to execute the initial investment, the direct awardees need to acquire other goods and services (intermediate consumption) from the rest of the production systems, which, in turn, demand other goods and services from their own suppliers, which ends up generating new income and new employment.
  • Induced: This impact reflects the effect derived from all the income generated in the previous stages. In this regard, it incorporates both the impact of final consumption derived from all the income generated, as well as the tax collected by all public administrations when applying the various taxes to the total of the activity and the income generated.