The company will thus be able to supply an additional 327,600MWh to its Portuguese consumers in the second and third quarters of 2008, a capacity that becomes part of Iberdrola’s energy portfolio in the European market and enables the company to strengthen its position in the Iberian Electricity Market (Mibel).
The initiative, under which a total of 873,600MWh were put on the block, is intended to allow new players to enter the Portuguese market, and drive further liberalization. These supply capacity auctions come within the framework of the regulatory harmonization accords between Spain and Portugal.
The power capacity acquired by Iberdrola will come from Portuguese power stations managed by Redes Energeticas Nacionais (REN) Trading, which owns the long-term contracts for the Pego and Tapada plants. The electricity will supply Iberdrola customers in Portugal.
Iberdrola’s position will reportedly be further strengthened by the construction of a combined cycle power station with a capacity of some 850MW in Figueira da Foz, at an investment cost of some E450 million. The new plant is expected to lift the Spanish company’s Portuguese generation capacity to above 1,000MW.
