THE WORLD ECONOMY CONTINUES ON THE ROAD TO RECOVERY
REN's core business is energy transmission and the management of energy transmission systems and we are present in the electricity and natural gas markets. We are one of the few operators in Europe with this characteristic:
- in electricity, REN works in the transmission of Very High Voltage (VHV) and the Overall Technical Management (OTM) of the national electricity system, under a 50 year public concession, which REN – Rede Eléctrica Nacional, S.A., a company wholly owned by REN, has held since 2007;
- in natural gas, through the high pressure (HP) transmission of gas and the OTM of the national natural gas system, from the reception,
storage and regasification of liquefied natural gas to the underground storage of gas, under the 40 year public concessions held by the REN Group companies REN Gasodutos, S.A., REN Atlântico – Terminal de GNL, S.A. and REN Armazenagem, S.A. (respectively), since 2006.
2016 REN achieved one of its medium and long-term aims: to acquire a relevant stake in a foreign company as part of our internationalization strategy.
Through REN Trading, S.A., REN manages the energy to be acquired from two electrical power plants, as part of energy acquisition contracts which were not subject to early cancellation.
Since 2002, REN has also been present in the telecommunications sector through RENTELECOM – Comunicações, S.A., established with the aim of using the surplus capacity of the telecommunications networks which are vital to electricity and natural gas transmission.
In November 2010, the Portuguese state awarded Enondas, Energia das Ondas, S.A., a company wholly owned by REN, a concession for wave energy production in a pilot area to the north of S. Pedro de Moel. The concession has been granted for a period of 45 years and includes authorization to build the infrastructures required to connect to the public power grid.
Group business functions are conducted by REN Serviços, S.A. (REN Serviços), more specifically, this includes support functions for the concession holders and with regard to the back-office. In addition to this support work, REN Serviços also operates as a commercial extension of REN, providing consultancy and/or engineering services to third parties within the energy sector.
At the end of 2016, REN finalized one of its medium and long-term goals by signing a contract to acquire a 42.5% stake in the capital of Electrogas, S.A.1, a Chilean company operating an important gas pipeline in central Chile. This operation was a key milestone in REN's internationalization. The operation took place through a company with registered office in Chile (Aerio Chile SpA), which is wholly owned by REN through its subsidiary REN Serviços, S.A.
REN has the following relevant holdings:
a) Further to the agreement between Portugal and Spain on the forming of a Iberian electricity market, REN has:
- Holdings of 40% in the capital of OMIP – Operador do Mercado Ibérico (Portugal), SGPS, S.A. (which in turn holds (i) 10% of the share capital of OMEL – Operador del Mercado Ibérico de Energia, Polo Español, S.A., (ii) 50% of the capital of OMIP – Operador do Mercado Ibérico de Energia (Pólo Português), Sociedade Gestora de Mercado Regulamentado, S.G.M.R., S.A. and (iii) 50% of OMI – Pólo Español, S.A. (OMIE) The company OMIP - Operador do Mercado Ibérico de Energia (Pólo Português), Sociedade Gestora de Mercado Regulamentado, S.G.M.R., S.A. in turn holds 50% of OMI CLEAR – Sociedade de Compensação de Mercados de Energia, S.G.C.C.C.C., S.A.; and
- Holdings of 10% in the capital of OMEL - Operador del Mercado Ibérico de Energía, Polo Español, S.A., the Spanish law company which is the counterpart of OMIP – Operador
do Mercado Ibérico (Portugal), SGPS, S.A.. These companies hold also a stake (direct and indirect) of 21% and 12%, respectively, in the share capital of MIBGAS, S.A.. OMEL - Operador del Mercado Ibérico de Energía, Polo Español, S.A., in turn, holds (i) 10% of the share capital of OMIP – Operador do Mercado Ibérico (Portugal), SGPS, S.A., (ii) 50% of the share capital of OMIP – Operador do Mercado Ibérico de Energia (Pólo Português), Sociedade Gestora de Mercado Regulamentado, S.G.M.R., S.A., and (iii) 50% of OMI – Polo Español S.A. (OMIE).
Through these holdings REN works in the development of the Iberian Peninsula energy market.
b) MIBGAS, S.A., a company which is the Organised Gas Market Operator or gas hub on the Iberian Peninsula, in which REN, through its subsidiary REN Gasodutos, S.A., has a stake of 6.67%;
c) Coreso, S.A., operator of the Regional Security Coordination Initiative (RSCI), which collaborates with several European TSOs and other RSCI, in which REN – Rede Eléctrica Nacional, S.A., held from the end of 2015, a stake of 10% and with the entry of the Spanish TSO (REE – Red Eléctrica de España, S.A.U.) at the end of October 2016, REN now holds 8.317%, through its subsidiary REN Rede Eléctrica Nacional, S.A.;
d) Hidroeléctrica de Cahora Bassa, S.A., a concessionaire of the Cahora Bassa, Mozambique hydro electric plant, and in general, of the production, transmission and sale of electrical power, including import and export, where REN has direct holdings of 7.5%;
e) Red Eléctrica Corporación, S.A., a company operating the Spanish electricity transmission network, where REN Serviços, S.A., a subsidiary of REN, holds a 1% stake
1 In December 2016, REN signed a contract for the acquisition of this stake, which was finalized in February 2017.