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onrenew Energy without limits · February | March * 2011
EDPR in North America
Five Power Purchase Agreements
online 24 hours in the life of Frédéric Lanoë on change Stephen Dictor Senior Performance Analysis Manager in Spain
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onindex February | March* EDP Renewables Successfully Signs Five Power Purchase Agreements and a REC Contract in 2010 in North America
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oncover Signs of Success
A message board available to all employees of EDP
6|10 oncover 12|13 online 14|15 on people Meet Veronica Hallum recruiting associate EDPR NORTH AMERICA, and David Talavan Luque EDPR asset operations director
EDP Renewables North America successfully signed 841 megawatts (MW) of long term revenue contracts, a truly significant accomplishment in the midst of an economic downturn.
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Responsible for both French and Belgium markets, Fréderic is a positive person who looks forward to the new challenges every day.
16 ontop Fernando Ilharco teaches how to perform a perfect executive presentation
online 24 hours in the life of Frédéric Lanoë
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22|24 ontrack EDPR’s most important news
ontarget MARIAN IORDACHE's comments For the Project Manager, in Romania, the first two years consisted of closing the first production cycle by completing the first two projects, Pestera (90MW) and Cerdavoda (138MW), both located in the Dobrogea area.
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onchange STEPHEN DICTOR, Senior Performance Analysis Manager Having worked for EDPR NA in Houston, Texas since July 2007, Stephen previously managed the North American Performance Analysis team and was well equipped to handle his new role as Senior Performance Analysis Manager in Madrid
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onpost Message board Ray also called Kitchen Interior (1725-1726). Oil on canvas, 114 x 146 cm. Paris, Musée du Louvre.
Museo Nacional del Prado Calle Ruiz de Alarcón 23 Madrid 28014 Opening hours: Tuesday to Sunday from 9am to 8pm (last access at 7pm) General ticket: 10¤
CHARDIN Since the exhibitions on Chardin organised in conjunction with the bicentenary of his death and the tercentenary of his birth, in 1979 and 1999 respectively, there have been no further revisions of the relatively small oeuvre (around 200 works) of this admired and highly original artist. Featuring 57 paintings, the present exhibition offers a rare opportunity to appreciate Chardin’s work and is the first on the artist to be held in Spain. The exhibition is structured chronologically, covering the most important phases of the artist’s career from his beginnings in the second decade of the 18th century to his late pastels of the 1770s. Visitors will encounter some of Chardin’s most celebrated paintings,
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shown alongside other, little known canvases loaned from private collections, and some recently identified compositions. In addition, the version to be shown in the Prado includes 16 works not exhibited in Italy. They include The Ray, one of Chardin’s most important paintings, loaned from the Musée du Louvre; The Attributes of the Arts, from the Musée Jacquemart-André in Paris, which is a large-format composition on an allegorical theme that has never previously been loaned to an exhibition; and the three versions of The young School Teacher (National Gallery, London, National Gallery of Art, Washington, and National Gallery of Ireland, Dublin), now shown together for the first time in Madrid.
The generous collaboration of a remarkable number of leading American and European institutions - particularly the Musée du Louvre, which has lent 11 works - as well as that of private collectors has made it possible to realise the challenging aim of bringing together some of Chardin’s most celebrated paintings for the present exhibition. Curator: Pierre Rosenberg, miembro de la Académie Française y director honorario del Museo del Louvre. Exhibition organised in collaboration with Ferrara Arte S.p.A. and the Museo Nacional del Prado, with the special collaboration of the Musée du Louvre
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onpost
Do you want to leave a message for your fellow colleagues? Now you can communicate across platforms in 250 characters or less Message board
cess Lince suctellus Me To: John
CONGRAT U
LATIONS To: Raque l Mendes
Sometime s th from talkin e lack of time preve nts us g to take this to people, this is wh y I want o your team pportunity to congr a on tu EDP Reno the work they develo late vaveis' com p municatio ed in n area. Kisses.
R's y of EDP unt e v r u s , e n h Hello Joh py with the way t es is going. We co ap ss I'm very h urope) local proce re Solution! E tu d r at u (USA an ss of the f he fantastic dinne e c c u s e h rt for t tire on you fo thank you provided to the en o t t n a w at you We also uston) th o H ( C R the B fin. team Eco cio,
Feli Ana Paula t jec
Lince Pro
Portugal
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Portugal
Saludos a todos to: A mis companñeros de EDPR
Hola a todos mis compañeros de EDP que Renováveis. Han pasado ya 2 meses desde sido me he cambiado a Lisboa, y aunque haya a todos! os men muy bien recibido aquí, os echo de Un gran abrazo
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Nuno Martins, EDP Renováveis
Portugal
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oncover EDPR North America signed five PPAs and a REC Contract in 2010
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Signs of Success EDP Renewables North America Successfully Signs Five Power Purchase Agreements and a REC Contract in 2010
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y year end 2010, EDP Renewables North America successfully signed 841 megawatts (MW) of long term revenue contracts, a truly significant accomplishment in the midst of an economic downturn. This was accomplished through the successful signing of five power purchase agreements (PPAs) and a long-term renewable energy credit (REC) contract. This major achievement has positioned EDPR NA as the top performer of any developer within the wind industry in 2010. The enormous effort by the EDPR NA Commercial Department demonstrated their persistence and patience as they stayed the course and kept their eye on the prize. Steve Irvin serves as Chief Commercial Officer for EDPR NA, and he fully recognizes and applauds the team’s hard work and determination. “The transactions required a great deal of analysis and perseverance, while we battled declining gas prices, regulatory uncertainty, changing energy markets and energy market declines,” said Steve Irvin. “It was the perfect storm of challenges, and it took persistence, creativity and hard work to overcome the obstacles necessary to achieve our goals. We
are extremely proud of the work we did in 2010 and the commitment and effort from each member of our team.” Several teams contributed to the success of completing these projects. They provided invaluable insight and expertise, and their contributions were vital to getting the transactions completed. The teams involved included the Origination Team, Market Intelligence Team, Market Operations Team and the Transmission Team. The process
When looking for PPA and REC opportunities, the Origination Team works from a pipeline of potential projects that span coast to coast. There are multiple factors when considering whether or not to pursue a particular project including location, size, timing, customer demand and return on investment. Each agreement from start to finish ultimately presents its own unique set of complexities, challenges, stringent rules and regulations and demanding timelines, but the overall benefit is in the long-lasting relationships and opportunities they each bring to EDPR.
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“We are extremely proud of the work we did in 2010 and the commitment and effort from each member of our team.” The Origination Team set out to do just that and they successfully accomplished much more than expected for the year. Steve Irvin
Tennessee Valley Authority 20-year PPA, 115 MW
While the process proved to be challenging and time-consuming, it represented the first time the Tennessee Valley Authority (TVA) looked to buy utility-scale wind farm projects under long-term PPAs, representing a desirable contract for EDPR NA. Historically, the southeastern United States did not represent a key market for the signing of PPAs due to the lack of wind presence. Through the EDPR NA Market Operations Team’s ability to schedule and move power from one area of the country to the other under longterm transmission rights, EDPR NA was able to leverage some existing transmission rights it had procured. This allowed energy to be delivered from the upper Midwest to TVA, an asset other competitors could not offer, and reignited negotiations with TVA, which led to the signing of the PPA in February 2010. This 20-year PPA with TVA to sell 115 MW of renewable wind energy from the first phase of the Pioneer Prairie Wind Farm will deliver energy to homes and businesses in TVA’s service area in parts of seven southeastern states. AEP Ohio 20-year PPA, 99 MW
AEP represents one of EDPR NA’s most noteworthy relationships, covering a large footprint and employing a focused renewables procurement group. AEP is one of the most sophisticated organizations in the United States, representing a desirable company with whom to do business. Prior to the latest PPA with AEP, EDPR NA had two PPAs with AEP in Oklahoma. The EDPR NA team met with the chairman of the Public Utility Commission of Ohio (PUCO) regarding its projects and the need for long-term PPAs in order to build projects with the purpose of achieving certainty of cash flow to finance and plan around. The meeting gave the EDPR NA team and the AEP team additional comfort that the PUCO would look favorably on approving long term rate recovery of the costs AEP would incur under the PPA. The extraordinary effort by the Ohio Development Team to accelerate the on-line date for the project, and EDPR NA’s proactiveness in meeting with the PUCO helped position 8 on
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From top to bottom: Matthew Duffy Heather Wong Payton Wright Steve Irvin Manual Arancibia Thomas Greer
Renewable Energy Credit Marketing and Origination Erin Eckenrod John Morrow
EDPR NA as a leader to gain this contract. The signing of the 99 MW Timber Road II project with AEP Ohio represented Ohio’s first utility-scale wind farm, and afforded the company the opportunity to build on its PJM pipeline, expand into new territories and bring utility-scale wind to Ohio. Tennessee Valley Authority 20-year PPA, 83 MW
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The Origination Team set out to do just that - and they successfully accomplished much more than expected for the year
EDPR NA continued pursuing additional PPAs with TVA after securing the 115 MW PPA in January, and was able to differentiate themselves again by offering a “redelivery structure,” a product that would control the cost incurred by moving power to TVA, and would provide more certainty on the power they would be obtaining dayto-day. These product attributes were attractive to TVA. Equipped with the EDPR NA Market Operations Team and their ability to schedule and move power from one area of the country to the other under long-term transmission rights, EDPR NA was able to structure the PPA product to meet TVA’s needs and ultimately assist TVA from a planning resources perspective. Under this new 20-year PPA with TVA for 83 MW, the output of Pioneer Prairie Wind Farm, located in Iowa, is now fully contracted through long-term agreements and is no longer a merchant project. Irvin adds, “This product represents an excellent example of us understanding the needs of our customers and responding with a structure that met their needs.” on 9
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Constellation Energy Commodities Group 5-year PPA, 198 MW Market Operations Team Cedric Kouam Michael Weeks Aniruddha Joshi
This agreement was part of a strategy devised in mid-2010 in response to the considerable change in market conditions endured between 2008 and 2010. During this turbulent period, the vast majority of PPAs that were signed were with regulated utilities that would sign a PPA and pass all of their costs on to their customers with little concern regarding profit/loss. Their bottom line was unaffected if they signed a PPA higher than the cost of market energy because of their ability to pass on those costs. Given the current economic conditions and demand for PPAs, the EDPR NA team strategized to develop a product that would set them apart from the competition and appeal to competitive suppliers who were looking for short duration PPAs. To meet those needs, EDPR NA developed a five-year, short-term bundled product (energy and RECs) at a fixed price. By shortening the
"These agreements provide us with the long term price certainty that we need for our capital intensive investments,", said EDPR NA CEO Gabriel Alonso term, it provided more comfort to Constellation, helped to reduce credit exposure and provided price certainty in the medium term. The signing of the five-year 198 MW PPA ended the merchant position at Top Crop II Wind Farm in eastern Illinois and decreased the percentage of merchant generation in EDPR’s portfolio. Ameren & ComEd 20-year PPAs, 75 MW and 100 MW
The Illinois Commerce Commission (ICC) gave approval for the Illinois utilities Ameren and Commonwealth Edison (ComEd) to enter into long-term renewable energy contracts for 20 years. The ICC’s action marked the culmination of two RFPs proposed by the Illinois Power Agency (IPA), as part of a long-term procurement plan approved by the ICC in December 2009. Under the Illinois Renewable Portfolio Standard (RPS), all RECs procured on behalf of Ameren and ComEd were historically oneyear terms. EDPR NA, along with other industry colleagues, helped convince the IPA and the ICC that purchasing renewable energy under longterm contracts was an economically-viable choice for Ameren and ComEd. Purchasing energy under these long-term contracts was also 10 on
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the best way to promote the development and construction of wind farms in Illinois and neighboring states. The ICC and the IPA agreed and mandated that Ameren and ComEd procure approximately 700 MW of long-term PPAs. Since this RFP did not allow for the opportunity to renegotiate or rebid, the internal EDPR teams joined forces to develop the bid strategy. The procurement leading up to the PPA represented one of the most intense participation by EDPR internal teams in the company’s history. EDPR NA won PPAs with Ameren and ComEd for 75 MW and 100 MW respectively. The PPA with Ameren includes 25 percent of Meadow Lake II (25 MW); 25 percent of Meadow Lake III (25 MW); and 25 percent of Meadow Lake IV (25 MW). The ComEd PPA includes 25 percent of Meadow Lake II (25 MW); 25 percent of Meadow Lake I (50 MW); and 25 percent of Top Crop 1 (25 MW).
Market Intelligence Team Michael Finger (not pictured) John Mi
NYSERDA REC Auction 10-year contract, 171 MW
In an effort to build out the Marble River Wind Farm project, the EDPR NA team responded to an RFP issued by the New York State Energy Research and Development Authority (NYSERDA) in accordance with the Public Service Commission (PSC) to sell RECs for a volume equivalent to 171 MW of capacity for 10 years. The contract awarded represents New York’s fifth competitive solicitation, and is funded through the New York RPS, which supports and finances the development of renewable energy resources in order to ultimately build a clean energy economy. EDPR NA previously won a REC contract with NYSERDA in 2005 for Maple Ridge Wind Farm, a 10-year contract for 231 MW. Based on previous experience with NYSERDA, the EDPR NA team went into the competitive bid with an idea as to what price would clear. With one opportunity to submit the right price in order to be awarded the contract, the team strategized to ensure they were being competitive. According to Irvin, “This was a project that we really wanted to build, so we priced it such that we could clear and have a REC contract that would make the project attractive from an investment standpoint.” Benefits to EDPR
"These agreements provide us with the long term price certainty that we need for our capital intensive investments," said Gabriel Alonso COO of EDPR NA. "In this environment with declining energy prices and flat energy demand,
securing long term selling prices is the right way to protect our investments which is key in an investment model that is so front loaded. However, we need to be mindful that some of these PPAs will not deliver the value that we originally projected. These PPAs have allowed us to reduce our exposure to spot prices and brings our percentage of long term contracted output to close to 90% on a global basis. " Innovation with the products and pricing further provided opportunities for EDPR to structure the PPA contracts more strategically and specifically in order to meet the needs and requests of the customer. This further showed the EDPR NA Commercial Department’s creativity and productivity; they listened to the
customer’s requests and requirements and responded, making the agreement a true win-win for both parties. According to Irvin, these agreements afforded EDPR NA with the opportunity of price certainty. When EDPR NA spends significant amounts of capital for an investment, price certainty helps from a financial standpoint. This allows for better planning of year-to-year earnings and with the year-to-year business plan process. EDPR continues to commit its resources to the future of wind development in the United States, and is dedicated to the long-term growth of renewable energy. 2011 promises to be a profitable year. on 11
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online 24 hours in the life of...
24 hours
Frédéric Lanoë Country Manager for EDP Renewables in France and Belgium
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Frédéric Lanoë is the Country Manager for EDP Renewables in France and Belgium and he has been with EDP Renewables since June 2010. Prior to joining EDPR, Frédéric was the general manager of a German offshore windpower subsidiary where he successfully developed more than 2000 MW of pipeline. The first 5 years of his career were in operation oriented projects for Procter & Gamble in an international setting. He subsequently took a more business oriented approach with positions in Marketing & Strategy, Consulting and entrepreneurship. Frédéric graduated from ENSAM Engineering School 16 years ago and completed an MBA at INSEAD. When Frédéric is not working, he spends a lot of his time with his wife Aurelie and his two young children Paloma and Odilon. He believes that one of the most fulfilling experiences on earth is watching his children’s journey as they develop their skills whether it is speaking, reading or swimming. Frédéric juggles prioritizing his leisure time spending time with friends or enjoying his favorite hobbies like touring museums, running, cycling, and collecting aboriginal tribal paintings. Reading about sustainable living is also a passion for him and a deeply rooted motivation towards renewable energy.
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Responsible for both French and Belgium markets, Frédéric is a positive person who looks forward to the new challenges every day. In these two countries, EDPR has 341 MW of installed capacity and he believes it is possible to go further
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8h15
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ARRIVES AT THE OFFICE BY BYCICLE Frédéric uses this clean method of transportation to go to work every day.
MORNING COFFEE It's time for a morning coffee before the journey.
MORNING PREPARATION The quieter office and the fresh morning mind is ideal for analysing and stepping back.
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10h30
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PROSPECTION MEETING Looking for new greenfield & acquisition opportunities in France and Belgium with Eric who leads one of the development teams. It is just the begining of the onshore windpower growth!
COORDINATION MEETING Discussing transversal topics with colleaguesfrom involved departments of the Europeanplatform. Every two weeks at business unit level, every 2 months with all directors.
LUNCH A quick lunch to get ready fot the afternoon.
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OFFSHORE MEETING A new team has been created and is in charge of the new offshore tender in France. Frédéric supports the work of the key members.
ONE TO ONE MEETING This time with Daniel the asset manager. Frédéric makes sure he meets personally with each of his direct reports every 2 weeks.
LEAVING THE OFFICE It is time for story telling with the children and diners with friends once in a while...
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onpeople G e t t o k n ow yo u r co l le a g u e s b e t t e r
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Veronica Hallum · RECRUITING ASSOCIATE, EDPR NORTH AMERICA
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eronica Hallum, Recruiting Associate in the Human Resources Department of EDPR North America, has been with EDPR NA for quite some time. “I joined in 2005 as a full-time employee; however, I worked part-time with the company from 2001 to 2003 before leaving to finish college. I’m a veteran,” Veronica said. Veronica began working at EDPR NA, then Zilkha Renewable Energy, as an Accounting Associate before the company had a Human Resources (HR) Department. Once the company established the HR Department, Veronica worked as an HR Analyst and then transitioned to her current position as a Recruiting Associate. She has been with EDPR NA so long that she can recall when the company consisted of just a handful of people. “I am proud to have seen the company mature and develop throughout the years and to have been at the forefront of recruiting and helping this company grow in size,” said Veronica. As Recruiting Associate, Veronica develops and implements recruiting and selection programs for Human Resources. She sites her tenure with the company as a great help in doing her job. “Knowing EDPR’s background and the foundation of the company enables me to understand the needs of each department and the types of people we want to join our team,” said Veronica. As the wind industry grows, more competitors are targeting people with the same technical knowledge and expertise in wind as EDPR, therefore, making it more challenging to retain the top talent. “However, being a leader in the industry and a company of reverence gives us a competitive edge,” she explains. Veronica loves not only the challenges associated with her position but also the people. She enjoys the teamwork and camaraderie within her department and the opportunities she has to work with employees outside of her department. “Interacting with so many different people at one time keeps my job very interesting,” Veronica explains. Outside of work, Veronica has many interests to keep her busy. She enjoys running, fishing, painting, writing and, above all, spending time with her son, Wallace. Wallace is almost 2 years old and learning how to talk. He has stated that he would like to be a CEO one day. “Move over Gabriel Alonso,” laughs Veronica.
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The effort and dedication of our employees allow us to excel as a group. In each issue, we highlight employees who have demonstrated diligence in their work at EDPR
David Talavan Luque · EDPR ASSET OPERATIONS DIRECTOR
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avid Talaván has grown professionally with EDP Renováveis. He began working with the company in 2001 and, after spending time the business management and constant improvement departments, he is now the Asset Operations Director, where he supports senior executives in ensuring that EDPR maintains its competitive edge in wind farm operations. In regards to strategy, David applies it to all activities in the value chain throughout the life of the wind farms, attempting to establish measures and best practices in areas that are not exactly the most glamorous in the sector, but are nonetheless essential. His job requires a strong background, and his experience in various departments has given him different
points of view and the opportunity to gain in-depth knowledge of the sector. Over an entire decade, he has benefited from witnessing the evolution and growth of the company from the inside, and now he can highlight what he likes most about EDPR. He says the best experience has been being able to grow alongside the multinational. Because everything is yet to be defined, he can work with a team that is pro-active, and create a department and watch it grow. He feels privileged to interact with colleagues from around the world. David contributed when EDPR was just starting out and the company in turn has helped David develop and grow in his career. David advises new employees to not limit themselves, because the dynamics at EDP Renováveis mean that
He recommends not limiting yourself and being dynamic to keep pace with EDPR
they cannot just settle for the status quo; they must always accept challenges and learn about all types of activities. EDPR is the perfect setting for growing professionally, Talaván says. When David hangs up his suit and tie after work, he dons his shorts and jersey and spends his free time mountain biking, running or playing padel tennis, although his favorite pastime is motor sports. He hasn't missed a world championship since he was very young. He says that he “learned to imitate the sound of an engine before talking.” He considers himself to be a simple man, very patient and ready to help his colleagues at any time. He will welcome you in his department with a smile and will offer you a hand or a talk, for sure. o n r e n e w 15
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Motivational keys to becoming a competitive leader by Fernando Ilharco. He has a degree in law, specializing in economic and international relations, and is considered to be a communications guru. His conferences on leadership have been heard all over the world.
A co n s e l h a m e n to p a ra g e st ĂŁ o
How to perform a perfect executive presentation: 1 Anyone can be a leader. With a bit of effort, where there is a will there is a way.
2 3
A competitive leader is coherent and treats others fairly.
Never ask of others what you would not ask of yourself. Set an example.
4 A team leader should be human and know his or her colleagues. Being a professional means getting the best out of others.
5 The end goals are results of the path you take and people.
7 Incorporating a dream into your work makes you different and gives meaning to what you are doing.
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Always work with passion, embracing challenges. Never work just to do “something nice,� you must go beyond that.
8 Do not let things become routine. You have to renew, improve and always try to be different.
10 Effective leadership is derived from technical and emotional characteristics.
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11 Do not forget that what makes people real is their emotions.
9 Good work comes from effort and small details. A great leader is a great observer.
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Marian Iordache "EDPR is among the pioneers in the renewable energy field in Romania. This was not just a challenge but also a responsibility for each member of the Romanian team."
M A RI A N I ORDAC HE – Pro j e c t M anage r, Ro mani a
Close cooperation with local authorities To respond to emerging demands in the field Improving the team results
Marian Iordache has worked at EDPR for almost two years as a Project Manager and assumed responsibilities in the Technical area. He actively works with to the company’s stakeholders and partners in Romania. For Marian and the Romanian team, the first two years consisted of closing the first production cycle by completing the first two projects, Pestera (90MW) and Cerdavoda (138MW), both located in the Dobrogea area. Working on these two projects has improved knowledge and skills and thanks to a dedicated EDPR team, they have successfully managed to understand the everchanging Romanian renewable energy market and were able to respond to its demands. The next two projects, Vutcani and Sarichioi, are currently at SoC level. The
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construction is about to begin and will be completed later this year. The 33 MW Sarichioi Project (11 turbines of 3MW) is located in the Dobrogea region near the Danube Delta, a legally protected environmental area. This project is being developed in the same area as the previous two projects, thus creating a major advantage: the Electrical Company that EDPR will be working with Enel Distribution Dobrogea - is the same company EDPR collaborated with in the previous projects. The 24MW Vutcani Project (12 turbines of 2MW) is the first one located in the northeast of the country, in the Moldova region, which is considered to be the second area of potential wind energy in Romania. As Marian points, Romania is an interesting place for renewable energy. There are approximately 17 GW of wind
energy potential, however the electrical infrastructure which operates at the moment can't accommodate for more than 3600 MW. The need for investment in green energy production is essential and is closely related to strategic decisions taken at EDPR. EDP RenovĂĄveis is among the pioneers in the renewable energy field in Romania. This was not just a challenge but also a responsibility for each member of the Romanian team. At this time, the current legislation in Romania is not able to answer all the necessary requests that occur during the wind farm development. Making it is necessary to establish a close cooperation with local authorities in order to identify and resolve problems encountered by explaining the particular features of wind farm construction.
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STEPHEN DICTOR Age 26 / Senior Performance Analysis Manager
“One recurring experience is attending a meeting where we all understand each other while switching between Spanish, English, Portuguese, and Portuñol.”
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pon being offered a position to work at EDPR’s Corporate Headquarters in Madrid, Spain, Stephen Dictor gladly accepted the new opportunity. This cross-platform transfer is another example of EDPR’s continued commitment to foster culture integration and share best practices by promoting employee mobility. Having worked for EDPR NA in Houston, Texas since July 2007, Stephen previously managed the North American Performance Analysis team and was well equipped to handle his new role as Senior Performance Analysis Manager. He is confident that the American team is in good hands following his move. Stephen’s current focus in his new role is to maximize wind farms' performance by improving the way EDPR leverages its wind farm operations data. His team analyzes and interprets data into accurate and timely information that managers and technical specialists are able to use to improve performance. Additionally, the team is responsible for in-depth analysis used to assist in predicting failures or tuning turbines to increase production. “In my new role, I am coordinating between the two platforms to make sure the best ideas for adding value are implemented globally,” Stephen adds. The transition to the European platform has been a smooth one for Stephen. “I like EDPR Europe,” said Stephen. “In many ways it is similar to EDPR NA: a young, vibrant team that wants to work hard to make our company the best. Every office has a different feel to it, but people are always nice when you approach them.”
Bridging the Gap Steve Dictor joins the Corporate Technical Unit at EDPR Europe serving as a liaison and bridging the gap between platforms
One thing he misses from downtown Houston, the 4th largest city in the United States, is the abundance of lunch options available. There are hundreds of restaurants that are located within a 10 minute walk from EDPR NA’s Corporate Headquarters. Working abroad has also presented several interesting experiences for Stephen. “One recurring experience is attending a meeting where we all understand each other while switching between Spanish, English, Portuguese, and Portuñol,” said Stephen. “I like languages, and it's interesting to be in a multilingual environment every day.” Stephen agrees that EDPR benefits from cross-platform transfers. “I think the benefit to the company is huge in terms of knowledge transfer, process alignment, and employee retention,” said Stephen. “A company of our size gains a lot when three engineers in America start working with three engineers in Europe. We reduce duplication and improve performance.” His best advice for employees transferring to other EDPR platforms is to “be ready to give 100 percent, make sure this is what you really want, and don't take yourself too seriously.”
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ontrack World events EDP
EDPR European employees spent two days sharing ideas and goals for this year and volunteering in Madrid
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we are edp
Flow 2011 – EDPR Europe meets in Madrid
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n the 2nd and 3rd of March the city of Madrid hosted the Annual Meeting of the European Platform: Flow 2011. The aim of the annual meeting was to outline for employees the company’s status at the end of 2010, the goals established for 2011 and the challenges that lie ahead over the coming years. João Paulo Costeria, after giving a presentation detailing our status and goals for 2011, concluded the first part of the Annual Meeting with a slide that had the following sentence as a recurring theme: “It is never their problem. It is always our problem”. The conclusion offered by Ana Maria Fernandes was a resounding "thank you" for the effort and work done so far, and a positive message to continue on the same path of growth and effort in the future. As usual there was a team building activity enabling employees from different geographic locations to have the opportunity to work together for a day and strengthen ties. Moreover, this year's team building had an additional goal: to carry out a social initiative and so it was undertaken to repair the facilities of the Spanish Autism Association CEPRI.
WELCOME DAY: THE FIRST OF FIVE SESSIONS TO WELCOME NEW EDP RENOVÁVEIS EMPLOYEES EDP Renováveis conducted the first Welcome Day of 2011, a gathering that has taken place in the past to allow newly arrived employees to get to know the company’s internal processes, its various departments and the respective areas of activity. EDPR welcomed nearly 40 employees from various countries during a day that began with a visit to the Cerros de Radona Wind Farm in the province of Soria. After gaining firsthand knowledge of the business, the participants watched a series of presentations given by members from EDPR Departments. o n renew 23
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EDPR sponsors the Second Conference on Ocean Energy EDP Renováveis sponsored the Second Conference on Ocean Energy. The event, organized by Unidad Editorial, aims to promote this type of energy in Spain. The event featured a presentation by Enrique Álvarez-Uría, Head of offshore wind at EDPR, as well as representatives of associations and companies within the sector: John Huckberby, International Energy Agency, Robert Lagaraz, President of the Association of Renewable Energy Producers (APPA) and Jose Luis Villate, European Ocean Energy Association (OEA), among others. In this second conference sponsored by EDPR various issues were addressed relating to marine energy. The most significant of which were: the relevance of this innovative power and the need for government support in order to carry out the development of projects.
EDPR Launches the Energizing Development Program EDPR has launched a training and development program using the EDP University’s Leadership Development School framework. This High-Potential (HIPO) Program has been split into two curricula for nominated employees at different levels of the organization: the Energizing Development Program and the Executive Development Program. The Energizing Development Program began with a two-day training session in Houston, which included a course on communication and presentation skills. Three more sessions are planned for 2011, including negotiation, strategy and team leadership training and four additional sessions will be planned for 2012. Employees from all EDPR platforms (Corporate, Europe, North America, and Brazil) were selected to participate. This year, there are 17 total participants in the Energizing Development Program, including five from North America. The Energizing Development Program is being implemented to augment the professional development of a select group of employees via high-quality training, mentoring, and networking opportunities. The goal of the program is to build and further develop various leadership and management skills in participants who are viewed as EDPR’s next generation of leaders. Participants will be assigned mentors from within their respective platforms and will begin quarterly mentoring sessions in March. The next training course, Negotiation Skills, will be held in May. It is expected that a new group of employees will be selected to participate in the 2012 HIPO Program. 24 o n renew
COOKING CLASS A morning spent among pots and pans to encourage teamwork
During the Annual Flow 2011 Meeting, EDP Renováveis employees that were hired in 2010 enjoyed a different morning, which according to the Human Resources Department, “helped bring together newly hired employees and increase productivity in a different and fun way, making the daily work of the new employees easier.” The activities came to life in a large kitchen where the employees participated in cook-
ing workshops with the aim of creating nine delicacies – one per European country where EDPR is present – ranging from Portuguese codfish to Romanian salmale or Spanish pisto con huevo. The best was saved for last when the employees were able to share and taste the result of their gastronomic efforts and creativity at a lunch that was enriching for the mind and taste buds.
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EDPR participates in EWEA 2011
Annual Results Presentation
EBITDA up by 31% to €713 million
The wind sector’s most important business fair in Europe, EWEA, took place at the Brussels Exhibition Center March 14 - 17, 2011.. EDPR was present once again in the capacity of sponsor. In particular, EDPR was the sponsor of the coffee breaks at the fair, and its corporate image appeared alongside several interactive screens where information was displayed on the different markets of the company
within Europe, including information on sustainability and other topics. Those who attended the fair were surprised by the application of technology used in EDPR’s interactive screens (50” touch screens), on which, using a general map of Europe, the exact location of the company’s wind farms was displayed, as well as data on the installed wind capacity and other information on each wind farm.
In a presentation made in Madrid, EDP Renováveis announced that an additional 1.1 GW of capacity had been installed during 2010, a 20% growth reaching a total of 6.7 GW worldwide. The company’s electricity output rose by 32%, reaching 14.4 TWh. EDPR was able to maintain system-wide load factors of 29%, one of the highest in the industry, underlining the quality and diversification of its operational portfolio. Gross profit rose by 31% to ¤ 948 million in 2010, in line with electricity output and price stability. The EBITDA margin, stable at 75%, reflecting operational efficiency, supported a 31% growth in EBITDA to ¤ 713 million. Financial expenses totalling ¤ 174 million, on the back of debt increase to fund capacity growth and controlled funding costs at 5.2% fixed rate, on debt denominated in Euros, US Dollars, Polish Zloty and Brazilian Reals. Net profit for the full year 2010 ended at ¤ 80 million. Cash from operations rose 45% to € 567 million, reflecting the cash generating capabilities of the existing assets. Operational cash flow, combined with tax credit monetisation in the US of ¤ 398 million, totalled approximately 70% of the € 1.4 billion capex programme in 2010.
Analysts recognize EDP Renováveis Rui Teixeira (CFO) and Rui Antunes (IR Director) were recognized as the best in their categories, in a survey conducted by Institutional Investors. Investment analysts recognized the investor relations work performed by EDP Renováveis as the best among renewable energy companies EDPR’s recognition came after analyzing various surveys answered by investment managers (buy-side) and securities houses (sell-side) when they were asked to vote on which entities offered the best investor relations services. A majority of those surveyed chose EDP Renováveis over other companies in the renewable energies sector. Accordingly, the company’s IR Director Rui Antunes was recognized for a second consecutive year as the best at his job among renewable energy companies. Company executive Rui Teixeira was voted best CFO in the sector, as per the analysts’ responses. o n renew 25