Iberdrola, who we are? Assets worth: €93Bn Installed capacity nearly 45 GW Hydro 10 GW CCGT 13 GW Renewable 12 GW Thermal 5GW Nuclear 3 GW Cogen 1 GW Leading wind producer worldwide: 12.5 GW installed and a pipeline over 61GW Over 27 million customers Electricity 24 MM Gas 3 MM 32.000 employees in more than 40 countries worldwide R&D and innovation effort ~ 150 M€ / year
Iberdrola, who we are?... In the US today + + (RG&E, NYSEG, CMP) Installed capacity (MW) 5,598 Wind installed capacity (MW) 4,634 Wind projects pipeline (MW) 25,000 Electricity customers (M) 2.5 Gas customers (M) 1 Thermal Gas Storage Hydro Present in 23 U.S. States and Canada Wind Distribution
Iberdrola, who we are? Some History...More than a 100 Years ofExperience... Iberdrola started off hydro power plants… And hydro is still one important activity for RG&E… + Sustainable energy is in our DNA as a company!
Innovation, what are we talking about?Thousands of definitions... It´s not always about the product/service, but it´s always about the value and the sustainable results!
Innovation, in a commodity business? Iberdrola offers a mature product, which is electricity / gas… kWh is a commodity! The difference is not in the product • Image We are green, sustainable,… • Business Model Renewables, combined cycles,… • Vertical Integration Our own engineering, gas storage,… • Added Services Quality, maintenance,… Efficiency is the driver of innovation
Innovation, how we implement it? (I) Governing Model of Iberdrola Decentralized Resources are limited Open
Innovation, how we implement it? (II) Governing Model of Iberdrola Decentralized R&D&Innovation Projects are developed within the business units, close to business!
Innovation, how we implement it? (III)Resources are limited Open IBERDROLA is aware that this is an effort that we cannot undertake alone. Therefore, we have an open innovation model where it is essential that we collaborate with: Companies, universities, technological centres, industrial organizations and public institutions through programmes and agreements. There are agreements with more than 70 universities in Spain, Europe and the US to collaborate in research activities. Some initiatives that involve collaboration with research departments and universities: In the US: EPRI (Electric Power Research Institute), GTI (Gas Technology Institute),... European Industrial Initiatives (EEI), EIT_KIC Innoenergy CIGRE Iberdrola´s Innovation Network
Major ongoing R&D and Innovation Efforts (I) Networks Networks (O&M) Quality of service (QoS) SmartGrids Power generation and Retail Electric Vehicle Clean technologies Energy efficiency
Major ongoing R&D and Innovation Efforts (II) Renewables Windpower (O&M) Offshore New technologies
What about the long term?New Ventures within Iberdrola´s Innovation FrameworkWhy Iberdrola invests in disruptive technology?As we have seen… Innovating in a “commodity” involves • Improving efficiency on the existing processes • Mostly: Incremental and evolutionary innovationAs we have seen… Best approach: Open & De-centralized Innovation Model • Innovation within the business units, close to business • So… Why investing in disruptive technology? Technology to generate new sustainable core business 12
New Ventures Program: PERSEOProgram Description Goal Minority participations in early stage companies Program Size 6-9 M€ / year Geographical Areas Worldwide; special focus on IBE´s priority markets Deal Size 500 k€ to 3 M€ per deal (IBE´s first round) Technology Focus Disruptive Energy Technology (see detail on next slide) 13
New Ventures Program: PERSEOInvestment Focus: Technology Areas• Renewable Energy: Solar (PV & thermal), Wind (i.e. offshore), Marine (tidal & wave), Biomass, ...• Energy Efficiency: Energy Management Systems, Green Mobility, …• Other energy related technologies: Emissions Abatement, Energy Storage, … 14
New Ventures Program: PERSEOProcess (I): Engaging with the business units PERSEO Committee: formed by Directors from IBE´s business units Internal & External EvaluationManagement: dedicated team + key input from business unitsInvolving the business units is key for…• Iberdrola: Learning (Strategic and Technological Returns)• Portfolio Companies: Business opportunities; increasing their value 15
New Ventures Program: PERSEOProcess (II) – Deal-flow: Perseo AwardThe PERSEO Award, is an initiative designed to promote innovativetechnological applications in the clean energy sector, through the support forprojects carried out in this field. I Perseo Award (2010) • CCS and Clean Combustion • Energy Storage II Perseo Award (2011) • New Products for Energy Efficiency • Innovative Biomass Technologies Start-ups from the US 16
New Ventures Program: PERSEOCompany Portfolio Renewable Energy Prometeo Emissions Abatement 17
New Ventures Program: PERSEOSummary …We use venture capital as a tool to ensure the sustainability of our future core investments by building the technology value chain and positioning Iberdrola on firstname.lastname@example.org 18
Innovation in Utilities?Summary Innovation is not always about the products and services! Model for innovating in a utility business: de-centralized and open. Goal: improving your efficiency! Even if you do great… long term solutions can disrupt your business… Gain first hand access to them to ensure the sustainability of your business! 19
R&D & Innovation Figures & Benchmark 136 MM € of Investment in 2011. 450 MM€ in 2011-2013 486 Gasto en I+D - 2010 (M€) 222 170 149 130 86 61 EDF GDF-Suez Vattenfall RWE Iberdrola Enel E-on According to EU 1000 R&D Scoreboard - 1st Spanish Utility - 4th EU Utility - 7th Spanish Company - 220th EU Company
Knowledge Management KM MISSION IN IBERDROLA Identify Knowledge Retain Knowledge Make Knowledge available to everybody Create a Knowledge culture Create more value from the company’s IC Standardize process for knowledge capture and spread
Communication and Indexes Indexes• The world’s most innovative utility (2009), according to Boston Consulting Group• Spanish utility that invests the most in the electricity sector according to the European Commission’s R&D Scoreboard.• Contribution to other rankings: DJSI, MERCO, REDTRACK Awards• Edison, EPRI Technology Transfer Award, Prince Felipe Award for Quality and Industrial Innovation, Award by the British institute of Engineering Technology (IET),… Communication• Communicaton (tv, radio, internet, social networks)• Innovation report 2009-10• Articles and press releases
Iberdrola´s Innovation Network• Objective: – Establish a well defined structure for implementing open innovation – Share Iberdrola’s strategy with partners – Create a channel for idea management – Establish strong R&D groups for project development – Improve technology watch – Promote actions for joint knowledge management BRING EXTERNAL KNOWLEDGE TO IBERDROLA
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