REN continued to follow and implement the strategic plan approved in 2015 for the three-year period of 2015-18. With regard to business development, the aim is to diversify REN’s business growth by investing in international projects.
The Business Development Team continued the work carried out in recent years. The following actions may be highlighted:
- Ongoing assessment of different markets with emphasis on countries that are part of the Pacific Alliance including Chile, Peru, Mexico and Colombia as well as other geographically strategic areas for international expansion, such as Europe and Africa;
- In 2016, REN continued to develop its proactive sourcing of business opportunities and to establish contacts with potential partners through the regular presence of REN teams in the abovementioned markets.
More specifically, the following milestones were achieved by the Business Development Team, broken down into investment project areas and engineering consultancy:
- Investment projects
- Agreement to acquire a 42.5% stake in the share capital of Electrogas, a company which operates a 166 kilometres gas pipeline in central Chile, from ENEL Generación Chile, in a transaction valued at 180 million dollars;
- Binding and non-binding offers - along with an indicative offer -were made in 2016 to acquire shares in energy transmission assets in Chile and Peru;
- Development of contacts to establish partnerships for co-investment in projects in Chile, Peru and Mexico.
- Engineering consultancy
Engineering services are promoted commercially by the Business Development Team with specialized support from REN’s operational and engineering areas. The following activities are:
- Participation in the Eastern Europe consultancy market. Services were provided in the electricity sector to GSE (TSO in Georgia) and Ukrenergo (TSO in the Ukraine). In the latter case, REN was mandated by consultancy company AF Mercados.
- Supervisory services in Portugal, particularly in projects envolving the constructing of very high voltage lines connecting power plants to the national grid;
- Active origination effort for consultancy work through numerous meetings with organizations in Portugal and abroad to promote and inform on REN consultancy services;
- Work carried out to sign partnership agreements with organizations in the international market for specialized engineering consultancy that provide services which are complementary to those offered by REN.
In 2017, REN will continue to develop its international work in the areas of investment projects and engineering consultancy, seeking to:
- develop partnerships with power network operators on an international level, which can result in cooperation agreements for the technical exchange of information and evaluation of business of common interest;
- formalize relationships with multilateral agencies providing support in the development and financing of infrastructures, with the aims of identifying business opportunities, facilitating access to financing and finalising engineering consultancy proposals.