In a press release regarding the agreement, Energias de Portugal (EDP) said that HC Energia will sell its transmission assets in Valencia, Spain for E16.8 million. Red Electrica de Espana (REE) is responsible for Spain’s transmission network and electricity system.
EDP said that the transaction represents an important first step to comply with the European directive for the electricity market for each company. This directive outlines the need for a single transmission network manager for each country.
The utility said that, once HC Energia has divested its transmission assets in Valencia, the subsidiary will still own some electricity transmission assets in the region of Asturias, Spain.
The transaction is subject to the approval of the ministry of industry, EDP said.
According to Dow Jones, the Spanish and Portuguese governments are planning to launch a single electricity market for Iberia, which will integrate the management and distribution activities of the two countries’ power grids and leave them under the control of two national power operators. The governments plan to launch the so-called MIBEL market by July 2008.
