ANNUAL REPORT Energy for the New Era

Transcription

1 ANNUAL REPORT 2008 Energy for the New Era

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3 Contents ANNUAL REPORT 2008 Letter to the shareholders 02 Eolia Renovables Description of the Company 07 Eolia in figures 11 Eolia in 2008 Highlights 15 N+1 Eolia High level experience 19 Shareholder base and Board of Directors of Eolia Renovables 23 Our strategy Growing on a solid base 27 Eolia Renovables Business developments 33 Our sector A solid and growing economic contribution in a favourable regulatory environment 45 Commitment to the environment and to research 53 Events after the balance sheet date 59 Alignment with the recommendations of the Unified Good Governance Code 65 Our Key Executives Track Record 73

4 Letter to the shareholders Luis Carlos Croissier Chairman Eolia Renovables de Inversiones, SCR, SA 2 It is with great pleasure that I present the 2008 Annual Report, Eolia Renovables first full year of trading following its incorporation in July In this very short period, Eolia Renovables has consolidated its position as one of the leading companies in the European wind and photovoltaic solar power sector. On the back of considerable investment, Eolia Renovables has increased its installed capacity by 267 MW to an attributable total of 434 MW (375 MW from wind power and 59 MW from photovoltaic solar power), up 159% on the end of Similarly, in 2008, the Company also expanded into Germany, France, Poland and Portugal, while continuing its development in Spain. Eolia Renovables has consolidated its position as one of the European leaders in the wind and solar power sector, with operations in six countries and operating capacity of 434 MW.

5 In 2008, gross operating profit (EBITDA) amounted to 50.1 million, up 101% on 2007, with an EBITDA margin of 72%, one of the highest in the sector. 3 This international expansion has come about primarily through the integration in 2008 of the pan-european group Renergys, the contribution of which clearly enhances our international footprint and market positioning in Europe, where by the end of the year we were managing 77 MW in operation with a further 40 MW under construction across three countries. In Spain, Eolia Renovables growth has continued unabated, with a further 150 MW of wind power (9 MW of which from the integration of 44% of the Canary Islands operator DECA) and a further 39 MW of photovoltaic solar power (3.5 MW of which from the integration of Asetym Sol de Murcia) having been added to its portfolio of operational assets. Eolia Renovables now ranks in the top ten companies in terms of installed capacity of wind power and one of the three leading operators of photovoltaic solar plants in Spain. For reference, it is worth noting that Eolia Renovables installed the fourth largest amount of wind power in 2008, namely 141 MW or 8.8% of the total installed in Spain. As regards the key financial figures, the Company s revenue was up 159% on pro-forma 2007 at 69.6 million in This strong performance stemmed both from the integration of new companies and the high level of investment, representing 670 million in 2008.

6 4 Forecasts regarding the future development of the sector estimate growth rates of around 22%. Eolia Renovables ended 2008 with a gross operating profit (EBITDA) of 50.1 million, up 101% on It should be noted that the EBITDA margin represented 72% of sales, one of the highest in the sector. At year-end, Eolia had wind farms under construction in Spain, France and Poland, with total capacity of 171 MW, thereby ensuring the Company s growth in the short term. Furthermore, these investments have a fundamental impact on the environment as they prevent greenhouse gas emissions and help reduce the import and use of fossil fuels. It should be recalled that every megawatt hour of wind or solar power saves 600 Kg of CO2 emissions annually. Although occurring after the balance sheet date, I would like to mention the success of Eolia Renovables first asset divestment in May 2009, with the sale to the German group RWE of its 49.32% interest in Danta Energías S.A, a company that owns three wind farms in Castile and Leon with total installed capacity of 129 MW, 64 MW of which were attributable to Eolia Renovables. This deal, which is in line with the strategy of investing in assets where we have a controlling interest, generated 52.2 million for Eolia Renovables including a capital gain of 11.8 million based on the NAV of the asset as of 31 December 2008.

7 Although the current economic climate is affecting all business sectors, the renewable energy sector might just be one of the main economic drivers over the next few years. In this regard, most European Union governments are bringing in economic and legislative measures to promote faster expansion and meet the target of 20% of total energy consumption from electricity generated from renewable sources that each Member State must achieve by In the medium term, this increases the attractiveness of investments in the sector by firms such as Eolia, now with a European dimension. 5 The GWEC (Global Wind Energy Council) has noted the strong growth prospects for the wind power sector. In 2008, total global installed capacity was 120,791 MW, far exceeding expectations. Forecasts are also optimistic with growth rates of around 22%. The GWEC predicts that global wind capacity could triple to 332 GW by 2013, thereby saving 438 million tons of CO2 emissions. At Eolia Renovables, we are working to consolidate our position while also continuing to look for new development opportunities in order to increase returns for our shareholders. I would hereby like to thank all our investors for the confidence they have shown in us. Luis Carlos Croissier CHAIRMAN Eolia Renovables de Inversiones, SCR, SA

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9 01 Eolia Renovables Description of the Company

10 01 Eolia Renovables Description of the Company 8 Eolia Renovables de Inversiones, S.C.R., S.A., incorporated in July 2007, is one of the leading independent European operators in the generation of electricity from renewable sources. The group is dedicated to the development, construction and operation of wind farms and photovoltaic solar power plants and operates in six countries (Germany, Spain, France, Mexico, Poland and Portugal). Its strategy is based on taking equity interests in mid-sized renewable energy companies. Eolia has a geographically well-diversified portfolio of wind and solar projects with total gross capacity of 1,537 MW, 705 MW of which were in operation or under construction as of 31 December 2008 (59 MW of which from photovoltaic solar power projects in operation in Spain), and the remainder in various stages of development. According to figures from the AEE (Asociación Empresarial Eólica - Spanish Wind Industry Association), Eolia Renovables installed the fourth largest amount of wind power in Spain in 2008 with 141 MW, accounting for 8.8% of the total installed in Spain. In addition, Eolia Renovables brought 36 MW of photovoltaic solar power on stream. The Company controls over 50 renewable energy electricity generation projects bringing together over 20 independent developers and has a total of 187 shareholders. The Company s founders include alternative asset management companies such as the N+1 group, independent developers such as Preneal and financial entities such as Bankinter. In addition, its main investors include BBK, Kutxa, Fonditel and Banco Sabadell-Atlántico. N+1 Eolia SGECR, Eolia Renovables management company, is the leading company of its kind in Spain engaged exclusively in managing renewable energy projects. The Company is majority owned by the N+1 group.

11 Eolia Renovables de Inversiones, S.C.R., S.A., incorporated in July 2007, is one of the leading independent European operators in the generation of electricity from renewable sources About N+1. N+1 is an independent entity specialising in high added value financial products and services. Its activities can be grouped together into two major business areas: The management of alternative assets. Financial advice for companies (investment banking) and family groups (wealth advisory services). The group, which manages assets worth over 2.5 billion, employs in excess of 140 people and has offices in Madrid, Barcelona, London and Frankfurt. 9 Eolia Renovables on the Internet : and also at:

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13 02 Eolia in figures

14 02 Eolia in Figures 12 KEY FIGURES Consolidated key figures FY 2008 FY 2007 Change (1) Pro Forma (2) (08/07PF) 2007 Sales (in thousands of euros) 69,634 26, % Wind Power 45,448 19, % Photovoltaic Solar Power 24,186 7, % Gross Operating Profit EBITDA (in thousands of euros) 50,113 24, % Attributable Installed Capacity % (as of 31 December and in MW)) Wind Power % Photovoltaic Solar Power % Attributable Production (in MWh) 516, , % Wind Power 460, , % Photovoltaic Solar Power 55,949 16, % Capex (in thousands of euros) 670,283 n.d. n.d. Operating Profit (in thousands of euros) 17,872 7, % Net Finance Income (in thousands of euros) -23,948-14, % Earnings (in thousands of euros) -2,489-6, % EBITDA / Sales Margin (in %) 71.90% n.a. Net debt (in thousands of euros) 918, , % (1) 2008 sales only include six month sales for Asetym Sol de Murcia (3.5 MW photovoltaic solar power) and Deca (9 MW wind power attributable) and two months for Renergys (77 MW wind power). (2) In order to ensure the comparability of 2008 with 2007, pro forma data has been presented. The pro forma data for the financial year ended 31 December 2007 has been calculated on the assumption that the wind farms and photovoltaic solar plants in operation, contributed in the initial project investment stage in October 2007, were incorporated into Eolia Renovables on 1 January All the figures given in this document for 2007 are pro forma figures for that financial year as explained in this note. However, the data provided in the legal section of the Report and which refers to 2007 is actual rather than pro forma.

15 BREAKDOWN OF THE PORTFOLIO OF ASSETS IN OPERATION, UNDER CONSTRUCTION AND IN THE FINAL STAGE. AS OF 31/12/ Summary MW (gross) MW (net) In Operation Under Construction Final Stage Total 1,537 1,399 DIVERSIFICATION OF ASSETS IN OPERATION. AS OF 31/12/2008. Technology by country Attributable MW in % in % Wind % 87% Spain % 69% Germany % 18% Photovoltaic solar % 13% Spain % 13% TOTAL IN OPERATION % BREAKDOWN OF INCOME. AS OF 31/12/ % wind power 35% photovoltaic solar power

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17 03 Eolia in 2008 Highlights

18 03 Eolia in 2008 Highlights 16 January. Eolia Renovables signs a 94.4 million financing agreement with La Caixa and Banco Sabadell for the construction of two wind farms in Medinaceli (Soria) with a total capacity of 65 MW. February. Eolia Renovables signs a 22.7 million financing agreement with ICO, BBK, Kutxa and Caixa Galicia for the construction of a photovoltaic solar plant in Murcia with a capacity of 3.5 MW. March. The photovoltaic solar power plant in Bonete (Albacete) with a capacity of 750 KW comes on stream. May. Eolia Renovables signs an 80 million financing agreement with Banesto primarily for the purposes of buying wind turbine generators. June. Eolia Renovables signs a contract with Vestas for the supply of wind turbine generators for two of its wind farms in Catalonia for a total of 74 MW.

19 July. Eolia Renovables completes the integration of 44.76% of Desarrollos Eólicos de Canarias, SA (Deca), the owner of a wind farm on the Canary Islands with a capacity of 20 MW and 100% of Asetym Sol de Murcia, SL (Asetym), the owner of a photovoltaic solar plant with a capacity of 3.5 MW 17 Eolia Renovables announces the commissioning of three wind farms with a total capacity of 93 MW in Albacete and Guadalajara. September. Eolia Renovables inaugurates three new solar plants in Castile La Manche and Extremadura comprising a total capacity of 35 MW. October. Eolia Renovables completes the acquisition of the pan-european group Renergys through which Eolia Renovables expanded into Germany, France, Poland and Portugal. The deal was carried out by means of a capital increase in which a total of 3,429,206 new shares were issued, raising the total number of shares to 56,211,739. November. Two new wind farms with a total capacity of 50 MW come on stream in Burgos.

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21 04 N+1 Eolia High level experience

22 04 N+1 Eolia High level experience 20 N+1 Eolia manages Eolia Renovables with a high level team of professionals who have built up experience and expertise both in the energy sector and in other industrial and financial areas during their careers. The N+1 Eolia management team has substantial experience in the renewable energy sector and some team members have been involved in it since the outset. The team s asset management experience includes studying more than 150 renewable energy investment projects involving investments of approximately 6 billion in 9 different countries. Projects meeting pre-established criteria of profitability and risk have been selected and investments made in over fifty of them. The management team has also negotiated more than 500 MW in turnkey contracts or contracts for the supply of wind turbine generators and solar panels and put in place financing agreements for in excess of 1 billion.

23 N+1 Eolia management team. 21 Jorge Mataix Entero Chairman Miguel Salís Canosa Chief Executive Officer Fermín Matesanz Postigo Chief Operating Officer Cristóbal Rodríguez Aguirre Chief Financial Officer

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25 05 Shareholder base and Board of Directors of Eolia Renovables

26 05 Shareholder base and Board of Directors of Eolia Renovables 24 From left to right: Ricardo Egea Marcos, José María Cata Mestre, Ana Yábar Sterling, Ander Aizpurua Susperregui, Luis SHAREHOLDERS. Shareholder Shares % Preneal, S.A. 7,943, % Res Newco Ag 3,419, % Grupo Collosa 3,403, % Banco Sabadell 3,028, % Gesfesa Energía 2,731, % Eolia Mistral 2,176, % Bankinter 2,080, % BBK 1,888, % Fonditel 1,795, % Kutxa 1,556, % Resto 26,185, % TOTAL 56,211, %

27 25 Carlos Croissier Batista, José Pérez Arizaga, Eduardo Merigó González and Alejandro Llorente Muñoz. BOARD OF DIRECTORS. Name (*) Position Type Luis Carlos Croissier Batista Chairman Independent Eduardo Merigó González Vice-Chairman Non-independent José Pérez Arizaga, Director Non-independent representing Preneal, SA Ricardo Egea Marcos Director External José María Catá Mestre Director Non-independent Alejandro Llorente Muñoz, Director Non-independent representing Inverduero Eólica, SL Nemesio Fernández-Cuesta Luca de Tena Director Independent Ana Yábar Stérling Director Independent Ander Aizpurua Susperregui, Director Non-independent representing CK Corporación Kutxa - Kutxa Korporazioa, S.L. Peter Cohen, Director Non-independent representing RES NEWCO AG David García-Ochoa Mayor Non-voting secretary Pedro Ravina Martín Non-voting vice secretary (*) The professional profiles and curricula vitae of the key executives of N+1 Eolia as well as of the management team of Eolia Renovables and of the members of its Board of Directors are presented later on in this document.

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29 06 Our strategy Growing on a solid base

30 06 Our strategy Growing on a solid base 28 Since its incorporation, Eolia Renovables has consistently implemented a strategy designed to position itself as an independent financial partner integrating mid-sized developers of renewable energy projects in the key developing markets. In line with this strategy, Eolia Renovables significantly strengthened its competitive market positioning in 2008 by working on the following growth areas: Building and commissioning of the portfolio of wind and photovoltaic solar projects initially contributed by the independent developers upon incorporation. In 2008, Eolia Renovables commissioned 36 MW of photovoltaic solar power and 141 MW of wind power, becoming the eighth operator in terms of capacity installed during the year. Adding portfolios of mid-sized independent developers (between 50 and 300 MW). In 2008, Eolia Renovables expanded its portfolio by 185 MW (gross) in various stages of development, with an attributable 90 MW in operation. Diversifying its geographic presence through expansion in those markets with attractive renewable energy legislative frameworks, basically within the European Union. In 2008, and through the integration of the pan-european group Renergys, Eolia Renovables added assets in four European Union countries (Germany, France, Poland and Portugal) significantly increasing its presence in that geographic region.

31 29 International expansion in 2008 constitutes a major milestone enabling us to establish ourselves in markets with enormous growth potential within the European Union. The Company is now much bigger, with an international shareholder base and 32% of the asset portfolio outside Spain, our original market. Miguel Salís Chief Executive Officer of N+1 Eolia Eolia Renovables is now one of the major operators in Europe, active in 6 countries and with a portfolio of projects in operation, under construction and in various stages of development representing 1,537 MW

32 06 Our strategy Growing on a solid base 30 International presence: greater geographic diversification. Without doubt, one of the highlights of 2008 for Eolia Renovables, with regard to its strategic growth targets, was the group s geographic diversification and expansion into new markets. Eolia acquired 100% of the European group Renergys, thereby gaining access to countries such as Germany, France, Poland and Portugal. The acquisition of the Renergys group was done via the capital increase approved at the Extraordinary General Meeting of Eolia Renovables of 16 September resulting in the issue of a total of 3,429,206 new shares, raising the total number of the Company s shares to 56,211,739. As a result of this capital increase, RES Newco AG, the sole shareholder in RENERGYS, acquired an equity interest in Eolia Renovables and will henceforth have a seat on the Board of Eolia Renovables. The shareholders of RES Newco AG are GermanCapital, Ramius Capital, Sopaf and Morgan Stanley. Eolia Renovables is now one of Europe s major independent wind and photovoltaic solar power operators and is the eight largest wind operator in Spain, as well as being one of the three largest photovoltaic solar plant operators in the country. It also owns and manages one of the largest wind farms in Germany with 77 MW located in Brandenburg State. As a result of this deal, the geographic diversification of the portfolio of projects in operation, under construction and in various stages of development (which has grown to 1,537 MW) accelerated significantly in 2008, so much so that 32% of this capacity is now located outside Spain.

33 DIVERSIFICATION OF THE ASSET PORTFOLIO. AS OF 31/12/ Country MW % Spain 1, % Rest of Europe % Mexico % Total 1, % BREAKDOWN OF WIND FARMS IN OPERATION,UNDER CONSTRUCTION AND UNDER DEVELOPMENT OUTSIDE SPAIN. AS OF 31/12/2008. Farm MW (gross) MW (net) Status as of 31/12/2008 Country Dahme Operation Germany Caen Construction France St Riquier I Construction France Krzecin 6 6 Construction Poland Project Jallais Final stage France Project Loge Fougereuse Final stage France Oyré - Saint Sauveur Final stage France Fresnoy-Brancourt Final stage France Eoliatec Istmo I Final stage Mexico Eoliatec Istmo II Final stage Mexico Eoliatec Istmo III Final stage Mexico Eoliatec Pacífico I Final stage Mexico Eoliatec Pacífico II Final stage Mexico Total

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35 07 Eolia Renovables Business developments

36 07 Eolia Renovables Business developments 34 By the end of 2008, Eolia Renovables had a total of 16 wind farms in operation with net capacity of 375 MW and 6 photovoltaic solar plants with a net total of 59 MW.

37 WIND FARMS IN OPERATION. AS OF 31/12/ Farm MW gross % MW net Urano 30 49% 15 Luna 49 49% 24 Juno 49 49% 24 Moral 40 75% 30 Moralejo % 18 Cerro Oliva % 10 Cerro Moreno 6 100% 6 Cabeza del Conde 8 100% 8 El Pino 24 43% 10 Guijo I % 38 Guijo II % 26 Majogazas I % 28 DECA (1) 20 45% 9 Dahme % 77 Negredo % 18 Calzada % 32 Total (1) This plant is currently increasing its capacity. On completion, it will have an additional 9.6 MW. PHOTOVOLTAIC SOLAR PLANTS IN OPERATION. AS OF 31/12/2008. Plant MW gross % MW net ASETYM 4 100% 4 Sol de Vinalopó % 20 Bonete 1 100% 1 Alconchel % 10 Argasol % 10 Mahora % 15 Total 59 59

38 07 Eolia Renovables Business developments 36 The attributable installed capacity of 434 MW represents a 160% increase in 2008 compared to the net installed capacity of 167 MW at the end of During 2008, the Company commissioned or added to its portfolio of wind farms and solar plants in operation an attributable total of 267 MW of wind and photovoltaic solar power, more than doubling its installed capacity. Last year, Eolia commissioned five wind farms in Spain, adding a total net capacity of 141 MW and four photovoltaic solar power plants with a combined capacity of 36 MW. With the commissioning of these new plants, the group now operates wind farms and solar plants in eight Autonomous Communities in Spain: Andalusia, Castile La Manche, Castile and Leon, Catalonia, Extremadura, Valencia, Canary Islands and Murcia. Moreover, in 2008, Eolia Renovables demonstrated its ability to grow through the integration of new companies, thus enabling it to expand its portfolio to a total gross capacity of 1,537 MW in operation, under construction and in various stages of development compared to the 1,358 MW at the end of These portfolio additions included three new assets in operation which increased Eolia s net installed capacity by 90 MW, (two wind farms with a combined capacity of 86 MW and a photovoltaic solar plant with 4 MW). The portfolio was expanded primarily through the integration of the pan-european group Renergys, but also as a result of the 44.76% equity interest in Desarrollos Eólicos de Canarias, SA (a company owning an operating wind farm with an installed capacity of 20.1 MW on the Canary Islands) and the acquisition of 100% of Asetym Sol de Murcia, SL (a company owning 3.5 MW in photovoltaic solar power capacity).

39 37 Investment in 2008 amounted to 670 million and enabled Eolia to increase its attributable installed capacity by 160% to 434 MW. This sharp growth has enabled Eolia Renovables to move up to 4th in the sector in terms of the new wind power capacity installed in Spain in 2008 and 8th place in terms of total installed capacity. Jorge Mataix Entero Chairman of N+1 Eolia Eolia more than doubled its installed capacity in 2008 increasing it by 160% to 434 MW

40 07 Eolia Renovables Business developments 38 INCREASE IN THE TOTAL INSTALLED CAPACITY OF EOLIA RENOVABLES (in attributable MW) % 08/ FY Q1-08 Q2-08 Q3-08 FY 2008 In 2008, Eolia Renovables posted consolidated sales of 69.6 million, 159% up on the previous year Eolia Renovables increased its EBITDA 101% to 50.1 million

41 NEW WIND CAPACITY INSTALLED IN SPAIN IN Wind farm owner Capacity in % of total 2008 (MW) Endesa % Iberdrola % Grupo ACS % Eolia Renovables % Gamesa % Other % Total in , % Source: Prepared by the Company on the basis of figures from the AEE. TOTAL WIND CAPACITY IN SPAIN. AS OF 31/12/2008. Wind farm owner Capacity in % of total 2008 (MW) Iberdrola 4, % Acciona + ECyR 4, % Neo Energía 1, % Gas Natural + Eufer % Grupo ACS % Grupo FCC % Grupo Elecnor % Eolia Renovables % Molinos del Ebro % RWE % E.ON Renovables % Medwind % Other 3, % Total capacity 16, % Source: Prepared by the Company on the basis of figures from the AEE.

42 07 Eolia Renovables Business developments 40 In 2008, Eolia Renovables posted consolidated sales of 69.6 million, up 159% on the 26.9 million posted in The Company, managed by N+1 Eolia, ended the year with a gross operating profit (EBITDA) of 50.1 million, up 101% on The Company s EBITDA margin amounted to 72% in 2008, one of the highest in the sector. This strong performance reflects the strong growth achieved by the Company as a result of the commissioning of new facilities and the integration of three new companies during the course of EOLIA CONSOLIDATED SALES PERFORMANCE (in thousands of euros). 80,000 70,000 60, % 08/07PF 24,798 69,634 50,000 40,000 19,042 30,000 20,000 26,870 14,826 10,000 0 FY 2007 PF 10,968 Q1-08 Q2-08 Q3-08 Q4-08 FY 2008 Consolidated sales of wind power in 2008 amounted to 45.5 million, representing 65% of total consolidated sales for the year. Solar power accounted for 35% of the total sales of Eolia Renovables, representing 24.2 million. At the end of 2008, Eolia Renovables had a further 7 wind farms under construction in Spain, France and Poland, with a total capacity of 171 MW, thereby ensuring the Company s continued growth in 2009.

43 41 A good example of the performance achieved by Eolia Renovables is the high EBITDA margin of 72% achieved in 2008, one of the highest in the sector. Cristóbal Rodríguez Aguirre Chief Financial Officer of N+1 Eolia Consolidated production in 2008 amounted to 516,113 MWh, a 72.4% increase on These figures reflect the Company's strong growth. Fermín Matesanz Postigo Chief Operating Officer of N+1 Eolia At the end of 2008, Eolia Renovables had projects under construction in Spain, France and Poland representing a total of 171 MW

44 07 Eolia Renovables Business developments 42 WIND FARMS UNDER CONSTRUCTION. AS OF 31/12/2008. Farm MW gross % MW net Carrascalejo-Monte Alto % 15 Caramonte % 50 Páramo % 24 Jerez 43 80% 34 Caen % 12 St Riquier I % 22 Krzecin 6 100% 6 Total Total Op + Construction

45 WIND FARMS AT FINAL STAGE OF DEVELOPMENT. AS OF 31/12/ Farm MW % MW net Juan Grande enlargement 10 45% 4 Parideras % 48 Escaravela % 32 Majogazas II % 21 Barbers % 30 Sant Antoni % 48 Auliver % 25 Solans % 50 Monclues % 30 Les Rotes % 44 Aligars 42 70% 29 La Tossa 36 70% 25 Carabuena % 48 Eoliatec Istmo I % 22 Eoliatec Istmo II % 72 Eoliatec Istmo III % 70 Eoliatec Pacífico I % 80 Eoliatec Pacífico II % 80 Eolien Fresnoy-Brancourt % 12 Project Jallais % 10 Project Loge Fougereuse % 12 Oyré Saint Sauveur % 10 Total

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47 08 Our sector A solid and growing economic contribution in a favourable regulatory environment

48 08 Our sector A solid and growing economic contribution in a favourable regulatory environment 46 The renewable energy sector has been one of the most dynamic and fastest growing sectors in Spain in recent years. Due to its strategic importance, renewable energy might just be one of the main economic drivers. According to a study published in November 2008 by Deloitte (1) on behalf of the AEE, the direct contribution of the wind sector to Spanish Gross Domestic Product in 2007 was billion, equivalent to 0.21% of GDP, higher than that of other more traditional sectors of the Spanish economy such as leather and shoemaking (0.16%) or fishing (0.18%). This contribution is expected to increase over the next couple of years (it is anticipated that by 2010 it will represent 0.25% of Spanish GDP at billion) on the back of a growth rate that is clearly higher than that of the economy as a whole. The sector also includes a significant number of different types of companies that make a balanced economic contribution to GDP, from manufacturers of wind turbine generators and components to developers and service providers. 706 companies have made a significant contribution to the development of the industry in Spain. According to figures from the GWEC, total global installed wind capacity amounted to 120,791 MW in 2008, a figure that despite the global economic situation far exceeded expectations. The GWEC itself had estimated in 2008 an increase of 23.1 GW for 2008 and as of 31 December that forecast had risen to 27 GW. The United States and China, with 8,358 MW and 6,300 MW of installed capacity, respectively, accounted for 54.2% of the worldwide total. During 2008, 1, MW of wind power was installed in Spain (5.9% of the worldwide figure) and total capacity as of 31 December was 16, MW, according to the AEE Wind Observatory. These figures rank Spain third worldwide in terms of installed capacity and should mean that the target of 20,155 MW set out in the Renewable Energy Plan will be achieved by Spain together with Germany, where Eolia Renovables also operates, remain the European leaders in wind power. (1) Macroeconomic Study of the Impact of the Wind Sector in Spain, published by Deloitte on behalf of the AEE. November 2008.

49 The renewable energy sector has become a strategic component of the Spanish economy 47 Forecasts for the coming years remain positive. The industry itself, through the GWEC, estimates that by 2013 total worldwide capacity could rise to 332 GW, almost three times the 120 GW achieved in This figure would make it possible to produce 730 TWh of clean electricity and save 438 million tons of CO2 annually, thereby demonstrating the major role of wind power in combating climate change. This spectacular development is driven by strong growth in China and expansion in Europe and North America. Year-on-year growth rates will continue to be high in the period between 2008 and 2013, at around 22% compared to 28% over the past 10 years. ANNUAL GROWTH AND TOTAL WIND CAPACITY IN SPAIN MW 18,000 16,000 14,000 15,131 16,740 12,000 10,000 8,000 6,000 4,000 2, ,623 10,028 8,504 6,206 4,879 3,389 2,198 1, Annual Total Source: AEE s Wind Power Observatory