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06/05/2009

King Juan Carlos I opens the Riga plant (Latvia) built by IBERDROLA INGENIERIA

The first turnkey combined-cycled power plant developed by the Iberdrola group subsidiary abroad
  • The Spanish monarch was accompanied by the president of the Republic of Latvia, Valdis Zatlers, and the chairman of IBERDROLA, Ignacio Galán
  • Galán stated that the new, cutting-edge combined-cycle power plant would meet 20% of the country’s entire energy needs, thereby contributing to its energy independence

This morning, King Juan Carlos I opened the combined-cycle power plant (CCPP) built by IBERDROLA Ingeniería in Riga, the capital of Latvia. The Spanish monarch was accompanied by Latvian president Valdis Zatlers and Iberdrola chairman Ignacio Galán.

Also attending the opening ceremony were Latvia’s Economy Minister, Artis Kampars; the chairman of Latvenergo —the plant’s owner—Karlis Mikelsons; and the chairman of IBERDROLA Ingeniería y Construcción, Ramón de Miguel.

After unveiling a plaque commemorating the event, Juan Carlos I, accompanied by various Latvian authorities and executives from IBERDROLA and its engineering subsidiary, visited the new CCPP, the most modern plant built to date in the Baltic countries.

During the opening ceremony, Ignacio Galán explained that this new CCPP, which was brought on stream by IBERDROLA Ingeniería y Construcción and is at the technological forefront, would meet 20% of all of Latvia’s energy needs and thereby contribute to its energy independence.

In addition, the IBERDROLA chairman underscored that the subsidiary has emerged as one of the world’s leader in energy and become the group’s technology cornerstone. With 2,500 employees and operations in 25 countries, it is one of our main sources of growth and international expansion. It has helped make Iberdrola one of the five largest energy companies in the world, the global leader in wind power and as a benchmark in sustainability.”

The Riga CCPP has installed capacity of 420 MW. This is the first turnkey combined-cycle power plant built by the IBERDROLA group subsidiary abroad and marks a major milestone in the company’s international expansion strategy.

After the plant passed the test period successfully, IBERDROLA Ingeniería delivered it to the Latvian state-owned company Latvenergo. In addition to construction of the plant, the contract, signed two years ago, included the supervision of the its operation and maintenance. Worth around €300 million, this was the largest contract won by any Spanish company in Eastern Europe at the time.

Now that the Riga CCPP has come on stream, IBERDROLA Generación will oversee its operation and maintenance for a period of 12 years. This is the first contract of this type won by this business unit.


Electricity, heating and hot water

IBERDROLA Ingeniería built this modern combined cycle facility on the site of an existing thermal plant (TEC-2) put into service between 1973 and 1979, using some of the original infrastructure.

The electricity efficiency of the plant is over 57% and its total efficiency (electricity + heat) is over 85%. By using residual heat, the plant provides heating and hot water to the southern part of the city of Riga, with a population of over 700,000.

The new plant’s configuration is 1+1 (1 gas + 1 steam turbine). IBERDROLA Ingeniería provides solutions already tested in the construction of other combined cycle plants for the group in Spain, Mexico and Brazil.

Winning and executing the contract are further proof of the company’s technological and logistical excellence. This IBERDROLA subsidiary has become the group’s technology cornerstone, a differentiating factor that has put the company at the forefront of innovation in the international energy sector.

Created in 1995 to group together and strengthen IBERDROLA's engineering and construction activities, the subsidiary has seen enormous changes: its workforce has grown twelve-fold to 2,400 (of whom 83% hold five- or three-year degrees and 30% are women); output has increased 4.5 times over the last five years; the company's project pipeline has quadrupled and today its EBITDA is 3.2 times greater than when it was set up.

The company currently has projects in 25 countries, driving development as it opens new markets while clearly demonstrating the key role of international expansion in IBERDROLA's strategy. In fact, contracts outside Spain accounted for 90% of its €2.3 billion project pipeline at the close of 2008.

Furthermore, the company no longer provides services only to IBERDROLA and its subsidiaries; today around 80% of sales are to non-group companies.












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