Spanish Big Power Companies Invested Over €1.15 Bn In Spain Between 2016 and 2018

Big power companies invested over €11 Bn in Spain between 2016 and 2018Spain's electricity sector had an average economic return of near 3.62% per year in 2016-2018

The five main integrated utilities operating in the Spanish electricity sector (EDP, Endesa, Iberdrola, Naturgy and Viesgo) invested 11.021 billion euros in their activities in this market between 2016 and 2018. This is according to the report prepared by Deloitte, entitled “Economic and financial situation of the main companies in the electricity sector in Spain”. Of this total investment figure, 1.15 billion euros corresponded to R&D&I in those three years, of which almost a third was allocated to electricity in Spain over the period. Between 2016 and 2018, investment in this item in electrical activities grew by 40%.

The report also highlights that Spain’s electricity sector had an average economic return of approximately 3.62% per year in 2016-2018. On the other hand, the average economic return on the activities carried out under a free competition regime (generation and commercialization) was around 0.51% per year over the same time period.

With regard to 2018, results were “strongly affected” by the deterioration of assets in the sector to the tune of some 4.530 billion euros related, fundamentally, to the loss in value of certain assets. This is the result of the process of energy transition and decarbonization of the economy. Less than half of the turnover of the five main companies in the electricity sector comes from their activity in Spain (41 billion euros out of a total of more than 96 billion.), according to the report.

Finally, the data regarding renewables collated by the report demonstrates Spain’s commitment to developing this energy. In 2018, the installed capacity of renewable energies in the Iberian Peninsula accounted for 52% of the total, while production from renewable sources reached 42%.

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