As REN prepares for major changes in the sector, it is looking to establish a platform with the Iberian market and transform into an integrated energy exchange

Initially set up in 1994, Portugal’s Rede Eléctrica Nacional (REN) is a solid and expert operator, responsible for one of the country’s most essential activities: ensuring a continuous supply of electricity.

While REN holds the concession for the national electricity transmission grid, the network of transmission lines which covers Portugal, it also provides a wide range of services which include transmitting high voltage electricity (400, 220 and 150 kV), operating, building and planning National Electricity Transmission Network (RNT) infrastructures and guaranteeing access to that grid for all players in the sector. The company is likewise in charge of supervising technical aspects of the National Electricity System (SEN), managing the whole Public Electricity Supply System (SEP), forecasting electricity consumption and identifying the need for SEP generating centers.

REN’s qualified and dynamic team of almost 600 pursues a philosophy based on transparency, technological leadership, the rational use of resources and respect for the environment. This allowed the company to record a net profit of €110 million in 2005, making it the most financially successful company in Portugal. Investment projections for 2006 to 2011 are estimated to be €1.08 billion, and will focus on reinforcing and developing the electricity grid both domestically and throughout the Iberian Peninsula. José Penedos, the company’s president, says, “The key driver behind REN’s performance is its operational standards. We are the benchmark for many grid companies worldwide.”

Such success certainly gives way to growth, and REN’s current pursuit of an internationalization and diversification strategy is allowing it to branch out. Its wide ranging capacities have grown to include consultancy, planning and construction services in electrical systems in Portugal and abroad, electricity transmission, telecoms and green certification. REN is also planning and constructing the electricity transmission network towards the renewable energy generating centers, allowing them to connect to the grid and to provide the system with its energy while allowing Portugal to accomplish the European Community directive. REN has also been designated the high pressure gas transmission operator.

Within the sector, changing governmental needs have led to the liberalization and restructuring of the market. Mr. Penedos says, “We are absolutely committed to creating the most efficient environment to facilitate the market.” REN is undergoing changes, which will make it responsible for the transmission of electricity and gas. Meanwhile, the necessary grid infrastructure is being put in place to support the transmission of alternative and renewable energies, ranging from wind and hydro to bio-mass and wave energy. REN is hoping that such changes will help it to find a common ground with Spain and ultimately establish a platform for the Iberian market, thus becoming the third regional energy exchange in Europe to have an integrated system.