IGNACIO GALÁN BACKS A NEW ENERGY MODEL IN SPAIN TO STIMULATE THE ECONOMY, Iberdrola
Release Date: 2009-05-25
During his appearance before the Senate Economy and Finance Committee
The chairman of IBERDROLA advocates wind and hydro power while retaining the contribution from nuclear power and improving supply and efficiency
He calls for stable regulation to encourage investment in the sector, which contributes 2.4% of GDP, employs 400,000 people and could be a driving force to overcome the crisis
IBERDROLA chairman, Ignacio Galán, supports a change in the Spanish energy model, allowing for improvements to be made to supply and infrastructure while at the same time helping stimulate the Spanish economy.
During his appearance today before the Senate Economy and Finance Committee, Ignacio Galán stressed that Spain “must confront significant challenges which offer an important opportunity for the energy sector and the country”. He added that “investment will then resume, once boosting the related industrial fabric and injecting liquidity into suppliers”.
Mr. Galán stressed the importance of the energy sector which is able to obtain financial resources in the international markets, create highly-qualified jobs, boost investment in RDI and export know-how thanks to its international presence.
In this regard he advocates changing the current “unsustainable” energy model, characterised by its high dependence on overseas markets (81%), lower energy intensity, high CO2 emission levels and scant interconnections.
Ignacio Galán promotes boosting efficiency, improving security and fostering a “cleaner, safer” supply by introducing local energy sources such as wind and hydro while preserving the country’s nuclear assets and replacing less efficient technologies. This way Spain will achieve a more secure and cleaner generation mix with 40% from renewable sources, 40% from efficient thermal sources and 20% from nuclear sources thus reducing energy dependence and lowering emissions.
Mr. Galán also highlighted the need to develop power networks, infrastructure and interconnections to improve the quality of service and make the production sector more competitive.
Stable and predictable regulation
For the chairman of IBERDROLA, regulation should encourage investment in this strategic sector which could become the economic driver to overcome the crisis. The sector contributes 2.4% to Spain’s GDP, invests around €9 billion a year and makes purchases totalling €12 billion as well as employing 400,000 people, both directly and indirectly, and being a huge RDI investor.
He also stated that official rates, some of the lowest in Europe, must send out efficient signals to consumers to avoid wasting a scant resource and triggering higher raw material costs.
Speaking about the current economic situation, Mr. Galán is in favour of implementing structural changes to create a new energy model which is “more competitive, open and deregulated and which fosters innovation and international expansion”. “A model that will also create value from the bottom up with long-term industrial projects, not based on speculative transactions that only seek short-term returns”.
Ignacio Galán also referred to the size of IBERDROLA which in 2008 consolidated its leading position in the energy sector. This leadership has been achieved thanks to hefty investment –over €50 billion in the past eight years-, earmarked for the company’s international expansion, and a strategic vision which has seen it leapfrog its competitors to become the leading power group in Spain, the fourth largest company on the Ibex 35 index based on market capitalisation, a world leader in wind power and one of the world’s largest utilities. Because of Iberdrola’s commitment to regional and business diversification, two thirds of the company’s EBITDA comes from outside Spain.
| Type: | NORMAL |
| Company: | Iberdrola |
| Country: | Spain |
| Url: | http://www.iberdrola.es/webibd/corporativa/iberdrola?IDPAG=ENMODULOPRENSA&URLPAG=/gc/prod/en/comunicacion/notasprensa/090525_NP_01_GalanSenado.html&WT.rss_a=IGNACIO_GALAN_BACKS_A_NEW_ENERGY_MODEL_IN_S |