Red Electrica focuses on the transmission of electricity and operation of the Spanish electricity system. In addition, the company manages and leases telecommunications infrastructure. Headquartered in Alcobendas, Red Electrica also operates through subsidiaries and affiliates in a number of countries, including the Netherlands, Luxembourg, Peru, Chile and France. The company and its 1,700 employees maintain a network of electricity lines that stretches more than 42,000 kilometers.
Red Electrica has a strong set of corporate responsibility policies, starting with its environmental commitment. This commitment is focused upon minimizing the impacts of its facilities, promoting energy efficiency and fostering biodiversity conservation. Red Electrica has conducted environmental monitoring at 87% of its substations in the last six years in order to integrate its operations into surrounding communities. The company also has an environmental management system for its facilities that is certified to ISO 14001 standards. Over the last three years, 40% of Red Electrica’s energy demand has been sourced from renewable electricity. Additionally, the company has a 2020 goal to decrease its emissions another 21% and has a variety of demand-side management measures to reduce its customers’ use. In order to advance biodiversity measures, Red Electrica abides by strict sustainability criteria, such as an environmental assessment of all projects that it undertakes. The company has also operated the Red Electrica Forest since 2009. This project has planted nearly 500,000 trees and shrubs to offset emissions and contribute to the conservation of biodiversity.
Red Electrica has been accused, along with other energy distributors in Spain, of operating an anti-competitive oligopoly market of electric utilities. Additionally, the company was recently fined more than $10 million for a power blackout.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.