Informe Innovacion0910

I N N O V A T I O N
R E P O R T
20092010
Innovation Report
2009-2010
CONTENTS
Letter from the

Chairman
Executive
Summary
page 6
page 10
Projects
Annexes
Summary page 52
6.1 Innovation Policy page 100
Projects in the area of Generation page 55
6.2 Knowledge Management

Policy page 101
Projects in the area of Networks page 64

Projects in the area of Renewables page 80
Projects in the area of the Environment
page 86
Projects in the area of Safety page 90
Projects in the area of Energy Storage
page 92
Projects in the area of Icts page 93
Projects in the area of the Electric Vehicle
page 96
6.3 Public financing of projects

page 102
Innovation
Strategy
Benchmark in
R&D Management
3.1 Vision and values page 14
4.1 R&D Management System

page 21
3.2 Strategy page 14
4.2 R&D Internationalisation

page 22
4.3 Open Innovation
page 23
Letter from
the Chairman
LETTER FROM ThE ChAIRMAN
6 Innovation Report 2009-2010
It is a source of great satisfaction to me to present to you a new edition of the

IBERDROLA Innovation Report, which describes the main activities and projects
undertaken by the Company in 2009 and 2010 in the field of research, development and
innovation (R&D).
At IBERDROLA we are convinced that the great business challenge for the coming years
is to promote a culture of technological innovation. This crisis we are beginning to
overcome has taught us that innovative companies are capable of facing difficult periods
much better than others. This is why now, more than ever, we need to promote R&D and
turn it into the main tool for achieving continual improvement of our systems, products
and services, so we can become more productive and competitive.
IBERDROLA has a clear Innovation Policy in which R&D is considered a strategic variable,
a fundamental aspect for tackling the challenges facing the energy sector. This is borne
out by the 300 million euros invested over the last two years, which have been allocated
to more than 150 innovative projects, some of them related to new renewable energy
technologies, smart grids and the electric vehicle. Thanks to this investment volume,
which accounts for approximately 5% of the Companys earnings, we have become the
Spanish utility that earmarks the most resources to R&D, leading European companies in
this area.
This is the result of a proactive policy based on a common innovative strategy for all the
areas in the Company, and on ongoing collaboration with technological partners and
encouragement of innovation among its employees. Thanks to this open innovation
model and to the work carried out jointly with companies, universities, technology
centres, industrial organisations and public institutions, IBERDROLA today leads the
profound transformation process facing the energy sector.
One relevant example of the Groups commitment to sustainable innovation is the
IBERDROLA Green Mobility Plan, a pioneering project designed to contribute to the
implementation and use of electric vehicles in our country, which has been very well
received by our customers.
In addition, IBERDROLA has implemented the PERSEO initiative, a development capital
fund for investing in innovative renewable electric power generation technologies and
technologies that reduce the environmental impact of existing generation systems.
23 million euros have already been earmarked through this investment company to
promote research work in the energy sector, including programmes such as biofuel
generation from algae, wave and tidal energy, or CO2 capture and clean combustion
technologies.
In the coming years, and with the hard work and professionalism of its human team,
IBERDROLA will continue to advance its project, which dates back more than 150
years, reasserting every day its commitment to its shareholders, employees, customers,
suppliers and the societies in which it provides its services and creates employment,
wealth and well-being through innovation.
Ignacio S. Galn
Chairman of IBERDROLA
Executive
Summary
EXECUTIVE SUMMARY
2. EXECUTIVE SUMMARY
R&D at the service of efficiency, technology strategy and
sustainability
Over the
last decade,
IBERDROLA
has deployed
an innovative
technology, both
in management
and in
technology
Over the last decade, IBERDROLA has deployed an innovative technology, both in management
and in technology, which has led to its becoming the world leader and benchmark in R&D, thanks
to the implementation of a common model for all the areas, collaboration with its technology
suppliers and its encouragement of the culture of innovation.
This commitment to innovation, included in the Strategic R&D Plan for 2008-2010, has resulted
in a significant increase in investment over the last three years, which has amounted to 300 million
euros. In 2010, the Groups R&D activities accounted for 130 million euros, 44% more than in the
previous year.
IBERDROLAs more than 150 R&D projects, distributed across the Groups various business
units and companies, cover all operating areas traditional and renewable energy generation,
distribution, engineering, IT and telecommunications and extends to other non-technological
areas focused on new developments, business models, organisation, etc.
In 2010, continuing with its commitment to excellence in its activity management, the
certification perimeter for the R&D management system was extended according to standard UNE
166.002. Four areas have already obtained this certificate: IBERDROLA S.A., Iberdrola Ingeniera,
Iberdrola Generacin and Iberdrola Renovables.
IBERDROLA is committed to research, development and innovation as a strategic
variable for confronting the challenges facing the energy sector, based on sustainable
development, the promotion of renewable energy sources and emerging technologies.
R&D projects have been carried out in all areas over the two years. It is essential that we
collaborate with companies, universities, technology centres, industrial organisations and
public institutions through programmes and agreements. Working in partnership and
following an open innovation model allows R&D activities to be developed that not only
increase company competitiveness, but above all generate wealth at social and national
level.
Listed below are some of the R&D activities in future strategic areas at international
level: renewable energy sources, clean generation technologies, smart grids, energy
storage, electric vehicle and other disruptive technologies in sustainable energy.
300 million
euros invested
in the period
2008-2010
Renewable energy sources: Iberdrola Renovables started its participation in the

TWENTIES project co-funded by the European Union for demonstrating the feasibility
of mass integration of wind power into the grid while ensuring its stability. In offshore
activities we should mention the EMERGE project, which was launched headed by
Iberdrola Renovables, for developing a floating platform technology for deep waters. The
CENIT AZIMUT project addresses the technical knowledge needed for optimising the
development of offshore wind farms. Two projects stand out in marine energy (waves
and tides): CENIT OCEAN LIDER, headed by Iberdrola Ingeniera, for the development of
marine generation technologies, and ORCADIAN, aimed at the building and deployment
of the second-generation of wave energy converters based on the PELAMIS technology
off the Scottish coast. As for biomass, the LIGNOCROP demonstration project has been
launched for developing the biomass value chain based on lignocellulosic energy crops.
Clean generation technologies: IBERDROLAs R&D efforts in the area of generation aim
to optimise operating conditions, improve safety and reduce environmental impact by
reducing emissions through more efficient generating plants. A number of projects are
being carried out at the coal-fired power station in Longannet (Scotland), in CO2 capture.
The COEBEN project is being carried out at the Velilla power station, aimed at developing
and validating a combination of advanced NOX reduction technologies. Iberdrola
Ingeniera participates in the CENIT VIDA project, which researches active CO2 capture
techniques, together with environmental modelling techniques and their application in
urban settings.
Energy storage: An agreement was signed with the U.S. Department of Energy for
the carrying out of the first phase of the compressed air energy storage project (CAES
technology). Among other benefits, this system will promote the integration of
renewable energy sources into the grid. The agreement covers the carrying out of the first
phase, including design and engineering work, as well as a full feasibility study.
Electric vehicle: In 2010, IBERDROLA has intensified its commitment to the electric vehicle
throughout its value chain, through agreements with public administrations, major car
manufacturers and recharge system suppliers, and participating actively in standardisation
groups and in R&D projects, both national and international. The IBERDROLA Green Mobility
plan was launched this year, the first comprehensive solution in Spain for facilitating real
access to electric mobility. Customers are offered a full package: vehicle purchase, recharge
point installation, financing and the supply of 100% renewable energy.
PERSEO - Disruptive innovation in sustainable energy: PERSEO is an initiative that
uses IBERDROLA development capital to invest in innovative renewable electric power
generation technologies and technologies that reduce the environmental impact of existing
generation systems. The first edition of the PERSEO Awards was announced in 2010 with
two categories: CO2 capture and sequestration and clean combustion technologies, where
Westec Environmental Solutions was selected as the winner and Carbozyme won the second
prize, and energy storage technologies aimed at electrical grid use, where the winner was
Bright Energy Storage Technologies the second prize went to Ecovoltz.
RECOGNITIONOFTHER&DEFFORT
ASANHONOURFORTHER&DINITIATIVESANDPROJECTS
BEINGCARRIEDOUT,THEIBERDROLAGROUPRECEIVED
THEFOLLOWINGAWARDSINTHE20092010PERIOD:
PrinceFelipeAwardforQualityandIndustrialInnovation.
AwardforBusinesInnovationinthe19theditionofLaNochedelaEmpresaVasca.
Spanishutilitythatinveststhemostinthedomesticelectricitysectoraccordingtothe
EuropeanCommissionsR&DScoreboard.
AwardbytheBritishinstituteofEngineeringTechnology(IET)fortheSCOTTISHPOWER
Networks projectANovelSmartGridSolutionforActiveManagementofDistributedGenerators
usingRealtimeThermalRatings.
Theworldsmostinnovativeutility(2009),accordingtoBostonConsultingGroup.
OGECN2009AwardtoKnowledgeManagement.
EstablishmentandcertificationbyAENORoftheR&DManagementSystemaccording to
standardUNE166.002forIberdrolaGeneracinandIberdrolaRenovables.
11
In 2010,
IBERDROLA has
intensified its
commitment to the
electric vehicle
Smart grids: Various initiatives have positioned IBERDROLA among the most innovative
companies in this area, at both European level (OPEN NODE, OPEN METER, ADDRESS
projects) and in Spain, where the STAR (Remote Grid Management and Automation
Systems) project has been launched in Castelln. This ambitious initiative seeks to achieve a
technological transformation in the field of smart grids. In the United States, the Advanced
Metering Infrastructure (AMI) project will allow the integration of 600,000 customers into a
smart grid infrastructure. It has received a $96 million subsidy from the U.S. Department of
Energy. SCOTTISHPOWER has launched a smart grid test project in Glasgow for improving the
reliability and quality of electricity supply.
Innovation
Strategy
INNOVATION STRATEGY
3. INNOVATION
STRATEGY
The R&D activities allow IBERDROLA to address new challenges
and opportunities in an increasingly global world. This
pillar sustains the Companys leadership, guarantees its
competitiveness and maintains its future strength
3.1 VISION AND VALUES
Innovation currently represents a key to acquiring competitive advantages in a world
that is immersed in a culture of continuous transformation. The capacity for innovation
is one of the Companys resources, just as are its knowledge, finance, commercial and
production capabilities; and just like these, it should be managed systematically.
Our commitment is therefore to promote a culture of innovation as far as possible,
as this culture is the basis for creating value and improving every day the service we
offer our customers and the society in which we operate. As a result of its experience,
IBERDROLA has created its own innovation strategy as an internal and external
benchmark for any R&D effort within the Group.
But we are also aware that this is an effort that we cannot undertake alone. It is
essential that we collaborate with companies, universities, technology centres, industrial
organisations and public institutions through programmes and agreements. This open
innovation model, where collaborating and sharing knowledge, risks and costs are key
factors, goes beyond R&D projects and has repercussions for society at large.
3.2 STRATEGY
The IBERDROLA R&D Strategic Plan for 2008-2010 consolidates the strategic research,
development and innovation plans for this period. In line with the Groups strategy, the
Plan reinforces the commitment to sustainable development, promotion of renewable
energies and emerging technologies.
20082010STRATEGICR&DPLAN
WORLDLEADERSINR&DINTHEENERGYSECTOR
(E225millionin20082010/E400in20082012)
Developmentof
IBERDROLAsstrategic
R&Dareas
Innovationinprocesses
toimproveefficiency
Qualityofsupplyintransmissionanddistributiongrids
MaximiseassetvaluebyimprovingperformanceinR&Dactivities
to
createlongtermvalue
InO&M
Firmcommitmenttorespectfortheenvironmentandsecurity
BenchmarkinR&D
management
OpenR&Dmodel,integratingR&Dpartners
DecentralisedR&D,closetothebusinessareas
ExcellenceinR&Dmanagement(UNE166.000standards)
Cultureofinnovation,includingtrainingincreativityfor
employees
Systematictechnologymonitoringandintelligence
Benchmark
delconocimiento
Talentdevelopment/management
Shareknowledgeandbestpractices
Advancedtechnicaltraining
ClosecollaborationwithexcellenceR&Dproviders
It establishes three basic pillars supporting the goal of becoming world leaders in
R&D in the energy sector:
R&DEFFORT(inmillionsofeuros)
150
Development of the strategic R&D areas.

Being a benchmark in R&D management.
Being a benchmark in knowledge management.
130
120
2
,x
ars
ye
e
e
90.5
thr
In
73
90
The major innovation projects undertaken and IBERDROLAs internationalisation

have doubled the figure allocated to R&D over the last three years, with 130 million
euros in 2010. This confirms IBERDROLAs commitment to R&D as a central point of
its activity that will enable it to confront challenges such as energy shortage and
increased demand for energy, focusing on promoting the development of the strategic
areas of its business in order to create value, improve efficiency and strengthen its
commitment to sustainable development.
60
54
56
65
2005
2006
2007
30
0
2008
2009
2010
The result at the end of the R&D Strategic Plan has been very positive. From the
economic point of view, the forecast was exceeded by 30%, with 300 million euros
invested in 2008-2010.
From the technical point of view, the strategic R&D areas have been covered with
international initiatives and projects, basically in Spain, the United Kingdom and the
U.S. The chart shows the percentages allocated to each technological area:
- Generation, with lines of action aimed at improving operating conditions and
reducing environmental impact by reducing emissions and deploying new more
efficient generating plants.
R&DSTRATEGICPLANMONITORING (inmillonsofeuros)
R&DPlan
Executed
150
130
120
+44%
90
90.5
+23%
73
70
80
75
60
30
STRATEGICAREASINGENERATION
0
2008
Nuclearoperationandmaintenance
2009
2010
Engineeringofnuclearpower
generationplants
SECURITY
ENVIRONMENT
CO2captureandsequestration
R&DEFFORTDISTRIBUTION
BYSTRATEGICAREAS(20082010)
Operationandmaintenance
17%
Materials
Cogeneration
23%
33%
Energymanagement
27%
Energysaleprocess
15
Generation
Gener
ation
Renewables
Renewables
Networ
Networks
Other (Includes
ncludesIT)
IT))
Other(I
ncludesIT
INNOVATION STRATEGY
- Networks, with activities designed to improve the electric power distribution business
across its three main components: security, the environment and supply quality.
STRATEGICAREASINNETWORKS
Qualityofservice
Newmaterialsandequipment
TELECOMMUNICATIONS
ENVIRONMENT
SECURITY
All for R&D
IBERDROLA has
been and will be
in line with its
commitment to
sustainability
Protections
Smartgridstheintelligentgrids
ofthefuture
Wavequality
Distributedgeneration
Demandmanagement
Assetmanagement
Developmentoftheprocess
foradaptingtonewregulations
- Renewable energy, with projects aimed at improving the use and development of new
technologies.
STRATEGICAREASINRENEWABLEENERGY
Windresource
Integrationintothegrid
Improvementof
electicalpowerinfrastructures
ENVIRONMENT
SECURITY
Solarthermal
Biomass
OffShore
Marineandphotovoltaic
energyandothersources
Windenergyforecasting
Improvedoperation
- Other, including activities related to information and communications technologies

(ICT), engineering and other cross-cutting areas such as the electric vehicle and energy
storage.
It is worth pointing out that all IBERDROLAs R&D initiatives have been and
will continue to be in line with its commitment to sustainability and care for the
environment. They thus take into account protection of biodiversity and reduction of
environmental impact.
17
Benchmark
in R&D
Management
BENChMARK IN R&D MANAGEMENT
4. BENChMARK IN R&D
MANAGEMENT
IBERDROLA understands innovation as a decentralised and open process.
-
-
Decentralised because the process is carried out independently in each business

unit with the support and coordination from the Innovation Department.
Open because IBERDROLA considers itself a company that feeds on technology. As
such, its aim is to involve the technology suppliers of the Group such as universities,
technology centres and equipment manufacturers in the innovation process.
The chart below shows the different internal and external agents that form part of
innovation at IBERDROLA on a day-to-day basis.
-
The Innovation Department, manages the IBERDROLA Groups innovation

capacity rigorously and efficiently, providing it with the tools, resources and
structures it needs to create a suitable environment for innovation development.
R&D Coordinator Committee: responsible for innovation in the IBERDROLA
businesses. The coordinators exchange best practices at executive level and
monitor compliance with the Strategic R&D Plan.
R&DCoordinatorCommittee
Customers
LegalServices
BrusselsOffice
Manufacturers
Universitiesand
technology
centres
Partners
Public
Administration
Valuechain
R&DSystem
InnovationNetwork
Technologyplatforms
ova
ation
tionforurns
forur
fo
orurn
ns
Innovation
nageme
ement
ntPartners
Partners
R&DManagement
king
Benchmarking
PRI,
RI,CIGRE,etc
EP
AgreernentswithUniversitiesandTechnologyCentrs
DialoguewithPublicAdministrations
Manageme
ment
nttof
o taxiincentivesfor
fo R&D
Management
Prom
romotio
motion
otionofproject
p
Promotion
consortia
Communication
TaxExperts
Delegates
Quality
CorporateSocial
Responsibility
SupportforInnovation
InnovationDepartment
Europeanprojectcoordination
R&Dcommunicationplan
CursesandDissemination
ToolsforR&D
IdentificationandReporting
IndustrialPropertyManagement
Private
Funding
IBERDROLA
Corporate
University
SpecialInitiatives
InnovationNetworkNodes
InnovationClassroominCU
PERSEOCommittee
*PERSEOtechnicalmanagement
Knowiedgemanagement
ScientificAdvisoryBoard
(R&DManagement)
Fundacin
IBERDROLA
Training
AccountingandControl
PERSEO
BusinessUnits
R&DCommittees
R&DCoordinators
InnovationManagers
IT
R&DatIB
IBERDROLA
BERDROLABusine
Business
essUnits
R&D
Committee
Deregulated
Business
R&D
Committee
R&D
Committee
R&D
Committee
R&D
Committee
Networks
Engineering
IT
Renewables
Business Units: these are a fundamental part of the decentralised innovation model.
They carry out R&D activities and projects. The Innovation Committees have been set
up as a support and management structure. The work carried out by the Innovation
Coordinators is very relevant at management level, while the Innovation Manager
provides support to all R&D promotion activities.
-
-
-
Support for innovation: IBERDROLA units that assist innovation.

Special initiatives: IBERDROLA Corporate University, Fundacin IBERDROLA and
PERSEO (venture capital company)
Value chain: the Companys stakeholders, customers, manufacturers and other
external partners who collaborate in R&D projects through either the Innovation
Network or other exchange forums.
R&D System: universities and technology centres, government.
4.1 R&D MANAGEMENT SYSTEM

IBERDROLA is aware that innovation has to be planned to ensure that all the R&D
activities of all the businesses in the Group are coordinated and structured. For this
reason, an R&D Management System was implemented in mid-2007 in accordance
with UNE 166002:2006 standard and certified by AENOR. This provides systematised
and standardised criteria for R&D activities that can be implemented on an overall and
efficient basis. This model has been extended to IBERDROLA S.A., Iberdrola Ingeniera,
Iberdrola Generacin and Iberdrola.
IBERDROLA has organised its R&D Management System so that the Innovation
Department provides the business units with an overall model, as it believes that there
should be a standard, systematic and single innovation process for all the business
units. The development of the R&D committees in the different businesses as a specific
structure to deal with these matters has been fundamental for managing the innovation
process with a closer relation to each business.
To sum up, the R&D Management System values innovation as a basic activity of a
company that is managed consistently and effectively. It is organised according to a set of
well-defined and well-documented processes, with owners assigned to the various
activities and a proper allocation of resources. The chart below shows the international
process map for R&D management across the IBERDROLA Group.
GLOBALPROCESS
GLOBALMODEL,LOCALMANAGEMENT
LOCALPROCESS
PROCESSMAPR&DMANAGEMENT
RelationshipwiththepublicInnovationsystem(Universities,Government,etc.)
Technology Analysisand
Monitoring selectionof
ideasfor
R&D
planning
R&DProject
Results
Management
Carryingoutofprojectprotectionand
Publicfunding
exploitation
Taxcredits
TechnologyandKnowiedgeManagement
STAKEHOLDERS
StrategicR&DPlan
20082010
Innovativeinitiatives(PERSEO,InnovationNetwork,etc.)
Crosscultingworkgroups(international)
InnovationBudget
InnovationReports
Internalandexternalcommunicationrelatingtoinnovation
21
One aspect of R&D project management worth pointing out is the result assessment
process. R&D projects have an obvious risk component owing to the uncertain result.
This makes it difficult to provide an overall economic quantification for the projects.
Expenses are easy to follow and quantify, and processes are available within the
management system to carry out this task. A different matter is how to quantify the
benefits obtained by the projects.
In order to improve management of the Companys R&D results and clarify the value of
R&D, a project has been implemented to assess the Companys project pipeline.
Using a model developed internally in the past, a project assessment methodology
has been developed that enables monitoring of a projects expected and actual results
throughout its life and once completed.
As a result, the tool shows a number of economic indicators for the project, such as the
NCV and the IRR at various points in time and under different assumptions.
4.2 R&D INTERNATIONALISATION

The integration of ScottishPower and Energy East (now Iberdrola USA) and the
international expansion of the Group have resulted in a strong increase in the Companys
R&D activity, and have also opened up new possibilities for collaboration between the
Groups units. There is also a need to coordinate R&D activities in certain areas that have
a global and cross-cutting impact within the Company.
The so-called R&D Cross-cutting Groups have been set up in order to enable such
coordination. A number of areas have been selected which require this organisation, and
which also pose future challenges for the energy sector:

Smart grids
Electric vehicle
CO2 capture and storage
Energy efficiency
Energy storage
These groups are made up of representatives from the various departments in the
Group who are responsible for or have an interest in these matters.
The objectives of the groups are:
To share technical knowledge and coordinate activities.
To disseminate best practices resulting from R&D projects.
To implement strategic agendas and implementation plans for R&D activities.
To assess regulatory aspects.
Technology monitoring and competitive intelligence.
To coordinate IBERDROLAs presence at forums and platforms, and liaise with
external agents.
To identify required skills and abilities in the Group.

4.3 OPEN INNOVATION

Open innovation represents management of collaboration that contributes to maintain
and renew structures for innovation and is essential for large collaborative groups as
is the case of IBERDROLA, with 33,000 employees in 40 countries. This management
provides a communication environment for the Group together with the right tools to
ensure that collaboration is successful and objectives are met.
4.3.1 Technology platforms, associations and institutes

Technology Platforms are set up by a group of entities interested in a specific sector
and headed up by the industry. The aim is to define a strategic agenda for research
on subjects of strategic or great social relevance, in which objectives for growth,
competitiveness and sustainability depend on technological progress and research in the
medium and long term.
IBERDROLA is represented and cooperates actively on a great number of platforms,
both European and Spanish. This allows us to unite our efforts, keep up-to-date with
future trends, and ensure that our point of view is reflected in the results.
23
BENChMARK IN R&D MANAGEMENTi
4.3.1.1 European Platforms

NAME
OBjECTIVES
European SmartGrids Technology

Platform
Coordination and monitoring of the implementation of the goals set out in the
strategic documents for smart grid development.
IBERDROLA participates actively in this platform as a member of the smartgrids ETP
forum.
Sustainable Nuclear Energy Technology

Platform (SNE-TP)
Preparation of a strategic research agenda and a development strategy for nuclear

technology.
IBERDROLA has been a member of this technology platform since its creation in
September 2007. It is a member of the Steering Committee.
European Wind Energy Technology

Platform (TPWIND)
Identify areas for boosting innovation, as well as existing and new research and
development tasks.
Iberdrola Renovables was a founding member, a member of the Executive
Committee and the Management Committee, and participating actively in 4 of the 5
work groups set up.
European Technology Platform on

Industrial Safety
The objectives of this platform are: to boost innovation to make swifter progress
in environmental health and safety through coordinated and integrated research
and implementation; to assess, exploit and implement the results of research on
industrial safety; to improve safety in order to ensure the growth of a sustainable
industry in Europe; and to combine the different aspects of industrial safety.
The European Technology Platform for

Zero Emissions Fossil Fuel Power Plants
(ZEP)
Reduce emissions from fossil fuel power plants in Europe to zero by 2020.
European Hydrogen & Fuel Cell JTI

(Joint Technology Initiative)
Manage technological development and demonstration programmes related to
hydrogen and fuel cells promoted by the Fuel Cell and Hydrogen Joint Undertaking.
4.3.1.2 Spanish platforms

NAME
Plataforma Espaola de Seguridad

Industrial (PESI - Spanish Industrial
Safety Platform)
OBjECTIVES
The basic objective of PESI is to provide a global and comprehensive view of

industrial safety. It works on the following areas: safety of products and facilities;
health and safety at work; environmental safety; and company asset safety.
IBERDROLA chairs this platform and coordinates the work group in charge of
advanced technologies for risk prevention, reduction and management.
Plataforma Espaola de CO2 (PTECO2 Spanish CO2 Platform)
Contribute to improving energy efficiency and developing CO2 capture, transport,

storage and use technologies, and promote their implementation in the industry, so
that Spain can meet its emission reduction commitments.
IBERDROLA is very actively involved in this platform as member of its governing
board. It also participates in the working groups on CO2 Capture, CO2 Storage and
Regulation.
The Spanish CO2 Association (AECO2) has been created to complement this platform.
Its main aim is to undertake complementary and support activities for PTECO2.
IBERDROLA participates in this association as a founding member.
Wind Power Technology Platform:

REOLTEC.net
Integration and coordination of various research, development and innovation

actions to meet the needs of the Spanish wind power sector.
Consolidate the technological positioning of the Spanish wind power industry
through the strengthening and selective coordination of the scientific/technological
stages and the selective dissemination of the results and experience obtained.
Spanish Fusion Technology Platform

(PTF)
Provide Spain with the industrial technologies and processes needed to participate
competitively in both national and international fusion projects.
IBERDROLA is part of this platforms Executive Committee.
Spanish Fission Platform (CEIDEN)

Coordinate the various domestic R&D plans and programmes, as well as the
participation in international programmes, seeking to direct in a consistent manner
the efforts of the organisations involved.
IBERDROLA is a member of the Management Board and participates actively in the
Nuclear Industry Capabilities Project.
25
NAME
Spanish Electrical Grid Platform

(FUTURED)
OBjECTIVES
Integrate all the agents involved in the electricity sector to define and boost
strategies at a national level to consolidate a more advanced grid capable of meeting
future challenges.
IBERDROLA is a member of the governing board.
Spanish Energy Efciency Platform
Innovation in energy efficiency technology, generating new solutions through the

promotion of research and development of new techniques, products and services
that contribute to the reduction of energy demand through energy efficiency.
IBERDROLA is a member of the Management Board of this platform and is actively
involved in the coordination of its work groups.
Photovoltaic Technology Platform

(PTFV)
Promote collaboration among R&D groups, industry and government; define a

common vision for the photovoltaic R&D strategy in Spain; forge closer links and
improve coordination with European Union actions; disseminate solar photovoltaic
power and improve its social perception.
4.3.1.3 EIT and KIC Innoenergy

Since its creation in 2008, the European Institute of Innovation and Technology (EIT)
has promoted the innovative capabilities and resources present in Europe, in both
industry and in research centres and universities.
To achieve these objectives, agreements have been signed with three consortia
focused on various areas of innovation: energy, ICT (information and communications
technologies) and climate change.
IBERDROLA is a member of the energy KIC (Knowledge and Innovation Communities),
known as KIC Innoenergy. KIC Innoenergy was launched in September 2010 under a
7-year agreement with the EIT. Its mission is to promote and fund innovation projects
in the areas defined by the SET Plan: renewable energy sources, smart grids, energy
efficiency, biofuels, clean combustion and integration of nuclear and renewable power.
Six regional nodes have been established, each one tasked with coordinating the activities
in one of the aforementioned areas.
The Iberian node, to which IBERDROLA belongs, coordinates the activities related to
renewable energy sources carried out by the partners in Spain and Portugal. However,
IBERDROLA may participate in projects in any of these areas.
CC. BENELUX
CC. SWEDEN
Smart and energy-efficient

buildings and cities
SmartGrid and electricity storage
CC. IBERIA
CC. POLAND PLUS
Renewable energy (wind power,

concentrated solar energy,
photovoltaic, tidal and wave energy)
Clean coal energy
CC. GERMANY
CC. ALPS
Chemical fuel energy
Sustainable nuclear power and

convergence with renewable energy
4.3.1.4 IBERDROLA and EPRI (Electric Power Research Institute)

The American electricity research institute EPRI is an independent non-profit
organisation established in 1973 to carry out research of public interest in energy and
the environment. Its mission is to carry out collaborative R&D work by its members, who
are electricity companies and other organisations in the energy sector.
IBERDROLA is an international member and since 1999 has participated in EPRI
activities, in both its nuclear and non-nuclear Generation Divisions, and has been a
member of the Generation and Nuclear Committees. It also participates in the EPRI
programmes related to the Power Delivery and Utilization Division.
The innovations in the area of (non-nuclear) generation are focused on:
Maintenance of conventional thermal and combined-cycle IBERDROLA plants
that contribute to a reduction of O&M costs, improvement in the reliability of
equipment and extension of its working life.
Optimisation and improvement of planning and actions in energy markets. This
includes market analysis, forecast of fundamental variables, and optimisation and
improvement of contracting methods.
Clean combustion technologies (clean coal, emission control, advanced coal
plants, CO2 capture and storage) and efficient operation of generating plants.
Reliability of the main plant components (structural materials, advanced
automation, gas turbines, heat recovery steam generators, etc.) and matters
related to cybernetic security in order to ensure physical and energy information
protection in generation plants.
27
IBERDROLA is
an international
member and
since 1999 has
participated in
EPRI activities,
in both its
nuclear and
non-nuclear
Generation
Divisions
In the electricity distribution area, the EPRI R&D activities are focused on:
Automation of the power grid through the development of advanced
technological processes of smart grids for the future and prioritising activities
that allow a coordinated implementation of all the efforts to apply the solutions
available.
Intelligent distribution of energy with management of markets, demand and the
regulatory environment and the real-time operation of the grid, as well as active
demand management.
Electrical vehicles, focusing on the research on infrastructures for their
integration into the grid for recharging.
Particularly successful has been the participation in the Global Nuclear Programme
which has been managed since 2006 by UNESA within the framework of a global
agreement by the Spanish nuclear industry with EPRI. This has resulted in a cost/benefit
ratio of nearly 20 for Spanish nuclear plants over the last ten years. This agreement
has resulted in a very high number of engineering activities at IBERDROLAs nuclear
power plants through Iberdrola Engineering and Construction and in projects related
to material degradation, fuel reliability, nuclear asset management, advanced nuclear
technology, waste, spent fuel, etc.
IBERDROLA has also participated in some of the EPRI product user groups providing
technical assistance by EPRI specialists for problems at plants and the acquisition of
significant technical material that enables its products to be applied. This activity is
reflected in more than 20 specific projects applied to the facilities.
IBERDROLA has kept its technological training up-to-date with the EPRI agreement,
which has involved access to over 300 technical reports a year, individual training for
its technical staff through webcasts, specialised seminars and report reading, estimated
at more than 20,000 hours of training in three years and an intangible value of over 30
million dollars. International recognition has also been obtained with 6 EPRI Technology
Transfer Awards granted to several IBERDROLA staff.
IBERDROLA has collaborated closely with EPRI in corporate and strategic innovation in
the electricity sector through participation in the preparation of Strategic Science and
Technology and Technology Innovation reports such as Electricity Road Map 20302050, Reshaping the Electricity Industry in the Future, Intelligent Grid Program, Clean
Coal Technology: New Generation Fleet for Tomorrow, Innovation Technology within
the Electricity Industry, Distributed Resources Program, Emission Control Abatement
Strategy, Role of Renewable Energy in Future Electricity Supply, etc.
Through the Innovation Department, IBERDROLA represents the IBERDROLA Group
on the EPRI Generation and Distributed Resources Board, has full voting rights in the
preparation of the various annual and 3-year Generation, Distribution and Nuclear
Portfolios, and participates with a director as METT (Manager EPRI Technology Transfer)
at the meetings held by the Technology Council (TCM), the international METTs and the
International Advisory Council (IAC).
4.3.1.5 IBERDROLA and CIGR

The main aim of CIGR, the International Council on Large Electric Systems, is to
develop and exchange knowledge and information between technical specialists in all
countries as regards production and transmission of high-voltage electricity.
IBERDROLA chairs the B5 Protection and Automation committee, and is the secretary
of the A1 Rotating Electrical Machines committee. In addition, IBERDROLA provides the
members who represent Spain on the protection and automation, rotating electrical
machines, substations, distribution and distributed generation systems, electricity
markets and regulation groups.
4.3.2 The IBERDROLA Innovation Network

The Innovation Network is part of IBERDROLAs firm strategic commitment to R&D
and the need to organise partnership in these areas.
This Network integrates the innovation activities in the various technological fields
in which IBERDROLA operates in order to meet the Companys need for ongoing
improvement. Its creation is a reflection of the international trends that determine R&D
management, including the growing importance of collaboration in R&D at all levels.
There are many reasons, related to technology and other areas, including:
The growing complexity and interdisciplinary nature of technology.

The higher costs and uncertainty of R&D projects.
The shorter duration of product life and development cycles.
The greater availability of tools and ways of working that promote collaboration.
Companies focusing on their core competencies.
At the same time, collaboration provides unquestionable advantages, such as:
Creation of economies of scale.

Greater contribution of resources and division of risks.
Emergence of synergies and avoid overlapping.
Overall, the scope of the collaboration concept is considered within one of the current
paradigms of corporate R&D management, namely open innovation, which affects the
world of business, universities, research centres and government.
Since its creation in late 2007, 5 nodes have been launched, in which the company
collaborates with more than 50 external organisations. This partnership has yielded
more than 100 ideas, which have resulted in 20 R&D projects.
4.3.2.1 Mission
The IBERDROLA Innovation Network is a forum for technological partners, whose
ultimate goal is to foster real collaboration between its agents. This collaboration
always has to take place within a framework of loyalty that integrates partners into the
Companys innovation area and involves them in each of its projects.
4.3.2.2 Vision
The IBERDROLA Innovation Network seeks to become a benchmark at domestic,
European and global level in the energy industry, as a network of excellence in R&D
management, particularly in collaboration management.
29
4.3.2.3 Aims
The main objective of this forum is to share and promote new ideas between all of
the Companys technological partners: manufacturers, universities, technology centres,
associations, etc.
In addition, the Innovation Network initiative seeks to:
Create powerful groups to develop R&D projects and reinforce management
mechanisms in order to develop a knowledge culture.
Communicate the IBERDROLA innovation strategy and provide a channel for
managing ideas.
Carry out coordinated technological monitoring activities and promote actions
for joint management of knowledge, with the aim of using greater technical
resources and thus focusing projects from a broader point of view.
Consolidate leadership in the sector in terms of technological innovation, and
establish a capacity for innovation as another of the Companys resources, in
addition to its financial, commercial and production capabilities.
Create benefits for customers through its network of collaborators.
4.3.2.4 Methodology
IBERDROLA
Posetechnologicalchallenges
Proposaisforimprovement
R&Dprojects
Exchangeofexperiences
Technologymonitoring
PARTICIPANTS
Newideas
ResearchActivities
Proposaisforimprovement
Newproducts/services
4.3.2.5 Innovation Network Nodes

Node 1 - Electrical protection and supply quality
This Node includes organisations of excellence in research and development of protection
systems.
Why Protections?
Electrical protection systems ensure supply quality and security. It is essential for
these systems to grow, develop and adapt at all times to the configuration of the grids
topology.
The need to address this growth, development and adaptation of the protection
systems, combined with the significant knowledge gained by IBERDROLA and its partners
in this area, has resulted in the creation of this Protections Node.
Technological scope
The objectives of the Protections Node are:
To improve supply quality.
To improve the safety of facilities and people.
To facilitate the integration of equipment in substations.
To supply information of added value for the management of assets in the
distribution and generation network.
To protect smart distribution networks.
The Nodes scope is very broad, as it encompasses generation, transmission and

distribution.
Node 2 - Materials for electricity generation plants
This Node is focused on research of materials for construction of all types of plants, as well
as of elements for their operation and other related processes.
Why Materials?
This Node seeks to improve the operational performance of the materials used in
order to minimise contingencies as far as possible and optimise the related processes
(manufacture, assembly, finishing, inspection, control, degradation and assessment of
their integrity).
The need to address this improvement in the performance of the materials, combined
with the significant knowledge gained by IBERDROLA and its partners in this area, has
resulted in the creation of this Materials Node.
Technological scope
The objectives of the Materials Node are:
To improve the operational performance of the materials used in power
generation plants.
To optimise the processes related to them.

To supply information of added value for the management of generation assets.
To foster the integration of new developments into the IBERDROLA Generacin
facilities.
The Nodes scope is very broad, as it encompasses all the generation systems:

Hydropower generation.
Conventional thermal power generation.
Combined cycle thermal power generation.
Nuclear power generation.
Cogeneration.
Wind power.
Solar energy.
New generation technologies.
31
Node 3 - Prevention
This Node addresses the study and development of prevention systems for equipment,
tools, methodologies, software, etc. from a multidisciplinary approach to include all related
aspects.
Why Prevention?
This Node seeks to give special relevance to all aspects related to prevention:
equipment, methodologies, new procedures, software, help and learning tools, etc.
The need to address the increasingly demanding environment in this area, combined
with the significant knowledge gained by IBERDROLA and its partners in this area, has
resulted in the creation of this Prevention Node.
Technological scope
The objectives of the Prevention Node are:

To increase the occupational safety of own and contractors staff.

To improve the safety of facilities by using safety-oriented designs (smart sensors).
To develop advanced personal and group protection equipment.
To progress in interactive and documentary systems to minimise risks in the
complete life cycle of equipment and facilities through simulations.
The scope of this Node includes transmission, distribution and generation networks
from the point of view of all actors involved.
Node 4 - Distributed generation node
This Node seeks to ensure the sustainability, quality and security of the generation,
transmission and distribution network through the creation of smart and versatile grids and
an open market.
Why Dispersed generation?
With this Node, IBERDROLA seeks to focus on the future, anticipating the development
of the generation, transmission and distribution network and proposing solutions to be
implemented in the market which allow for the optimisation of the grids operation.
The need to address the versatility and significant technological needs in this area,
combined with the significant knowledge gained by IBERDROLA and its partners in this
area, has resulted in the creation of this Dispersed generation Node.
Technological scope
The objectives of the Dispersed generation Node are:

To reduce transmission and distribution costs.

To improve the efficiency of the electricity system.
To reduce environmental impact.
To improve supply quality and security.
To create smart distribution networks.
To create an open and competitive market.
This Node encompasses the market, the generation and the integration into the grid,
both in the traditional electricity system and in the smart grid to be developed in the
future.
Node 5 - Biomass
This Node seeks to bring together a group of experts from the full biomass chain value
in order to manage the knowledge required for evolving the biomass business and act
as advocates before the various agents on which the extension of biomass use for power
generation depends.
Why Biomass?
As the worlds number one wind power company with the largest project pipeline,
Iberdrola seeks to become involved in new strategic activities related to energy sources
in their development stage, such as biomass, which despite supporting 47.7% of the goal
for the 2005-2010 Renewable Energy Plan, has only achieved 38% of its objectives.
With the objectives for wind power and solar thermal energy about to be achieved,
biomass can become the next renewable energy alternative. Because the non-existence
of a mature supply market is one of the main barriers to its launch, with this Node
IBERDROLA seeks to address all the uncertainties that give rise to this situation through
the study of the entire value chain of biomass, by centralising in this Node the knowledge
acquired by all the actors involved in this chain.
Technological scope
The objectives of the Biomass Node are:
To advise on the IBERDROLA Innovation strategy as regards biomass.
To provide a channel for managing ideas.
To carry out coordinated technological monitoring activities and promote actions
for joint management of knowledge.
To set up consortia for R&D projects.
The scope encompasses an integral approach as regards the value chain:

Feasibility and development of energy crops.

Efficiency of the biomass transport/traceability logistic chain.
Optimisation of the storage logistics.
Efficiency and energy balance of the entire process.
Analysis of the environmental benefits provided by biomass projects.
Regional economic impact of biomass projects.
Fuel characterisation and biomass mix optimisation.
Technologies at generation plants and throughout the process in general.
The Node goes beyond technological innovation and reaches business development.
33
4.3.2.6 Companies collaborating in the Innovation Network

INNOVATION NETWORK NODES
Electrical protection and supply quality node
Materials for generation plants node
Prevention node
Dispersed generation node
Biomass node
4.3.3
IBERDROLA Chairs
4.3.3.1 Motives and objectives

The IBERDROLA chairs are a means for realising the Companys commitment to R&D, and
particularly its involvement in the promotion of research, training and collaboration with
the world of science and university, especially in those regions where it operates.
The objectives sought with the creation of the various chairs include:
To promote University-Business technology transfer.
To establish a framework for collaboration in the launch of R&D projects and
training initiatives in common areas of interest.
To promote specialised training in fields of greater interest to IBERDROLA.
Social commitment.
The existing agreements and the main actions carried out are described below.
4.3.3.2 IBERDROLA Chair at the University of Salamanca

This Chair is a framework that formalises the collaboration between both organisations
and promotes education, research and innovation in fields of knowledge which are of
special interest to both parties.
The main objective of this Chair is to promote University-Business technology transfer
and become a framework for collaboration in the launch of R&D projects and training
initiatives in common areas of interest. The Chair also seeks to promote specialised
training in fields of knowledge which are of greater interest to IBERDROLA, and to carry
out other social and cultural activities.
In 2009-2010, the research activities focused on three main areas:
Projects in the Environment and Renewable Energy area:
EMBECO: ecological study of the Villalcampo and Castro dams.
ZEBRA MUSSEL: monitoring and control of the zebra mussel in electric power
production plants.
ULTRASOUND: study to analyse the possibility of using ultrasound to keep
nesting birds away from overhead power lines.
WILD FAUNA/LADDER SNAKE: study of incidents caused in the electricity
distribution network by wild animals (e.g., ladder snake).
DEPOLIGEN: energy efficiency in zero-emission buildings through the

improvement of the demand for energy, poly-generation and integrated power
management.
CASTEJN BIODIVERSITY: characterisation of biodiversity in the Ebro River at
the facilities of the Castejn Combined Cycle Power Plant in Navarre, including
the inventorying of the main species and censuses of biotic populations (fauna
and flora) present on the banks of the Ebro River within the Castejn Plant
(IBERDROLA).
35
Projects in the Network Engineering area:

ARENAL: forecasting of underground power line behaviour.
CALMATE: research into earthing systems in substations.
3D substation design automation: substation design automation based on laser
data and digital images.
Projects in other areas:
Technological Monitoring: project for the carrying out of technological
monitoring and competitive intelligence activities.
Document management of the IBERDROLA historical archive: a study for

analysing the various options available for using new technologies in the
management of the IBERDROLA historical archive.
The following training and sponsorship activities have also been carried out:
CAD design course for substations in vila. Several students were also given a
scholarship with IBERDROLA.
Sponsorship of the biodiversity course organised by the Faculty of Biology:
Biodiversity in Castile and Len: inventory, management and conservation. The
exhibition associated with the course will be on display in the various provinces
of Castile and Len throughout 2011 (natural park lodges).
Sponsorship of training courses organised by the Green Ofce:
Training course for Environmental Teachers.
Course on mycological biodiversity management.
IBERDROLA Chairs support for the EMPIRIKA Fair.
Training and Research Scholarships:
Training: USAL students as IBERDROLA trainees.
Research: USAL researchers in areas of interest to IBERDROLA.
The IBERDROLA Chair Academic Excellence Awards will be launched in 2011. Awards
will be granted for final-year projects, postgraduate studies and doctoral thesis.
For more information, visit www.usal.es/catedraiberdrola
4.3.3.3 IBERDROLA Classroom at the Universidad Pontificia de Salamanca

In late 2008, both entities signed a partnership agreement that envisaged the creation
of an IBERDROLA Classroom at the Universidad Pontificia de Salamanca in order to
promote technological projects and training activities in areas of knowledge of special
interest to both parties. This created a University-IBERDROLA link that provides the
alliance with a strategic nature in the field of innovating knowledge creation and transfer,
beyond the strictly economic area.
The UPSA and IBERDROLA have since worked together to implement various initiatives
related to information systems and technologies, knowledge management and corporate
social responsibility.
The creation of the IBERDROLA Classroom together with the UPSA is a clear example
of the Companys commitment to R&D as a strategic central point in its activity and of
its involvement and collaboration with the world of science and university, especially in
those regions where it operates.
IBERDROLA-UPSA Innovation Club
The IBERDROLA-UPSA Innovation Club has been launched within the framework of the
IBERDROLA Classroom. This initiative will contribute decisively to further the education
of this universitys students as future enterprising and innovative professionals, as it
will enable them to work under conditions similar to those they will find outside the
classrooms. It will provide them with the basic equipment and support needed to carry
out their projects.
The main objectives of the Innovation Club include the promotion of research activity
in new technologies and energy, the encouragement of an enterprising spirit among
students and the application to the energy field of new technologies developed in
universities.
Initially, the working areas of greatest interest to IBERDROLA will include the
applications of mobility technologies, 3D technologies and reality applied to the world
of electricity, although it is a dynamic initiative and these working fields will evolve over
time based on the technological advances achieved.
37
The students themselves submit their ideas, with the support provided by the UPSA
and IBERDROLA through the Classroom, and carry them out.
Corporate Social Responsibility
Another initiative is a corporate reputation study designed to find out the opinion of
the various stakeholders about IBERDROLAs activities and news. The aim is to identify
and try to improve those aspects which are more relevant to them and the collaboration
project implemented to optimise management of the Companys R&D processes by
means of advanced multiple collaboration techniques through the Internet. Partnership
with universities is in line with the corporate social responsibility policy of IBERDROLA,
which as a world leader in the energy sector carries out and promotes multiple activities
aimed at encouraging research and training.
4.3.3.4 Orkestra Energa Chair (Basque Institute of Competitiveness)

Deusto Foundation
ORKESTRA is an initiative launched by the Basque Institute of Competitiveness, which
belongs to the Deusto Foundation, an organisation devoted to transferring scientific
knowledge to society. Through this organisation, IBERDROLA participates as a trustee in
the Energy Chair, which works around four areas:
1. Energy: economy and markets: analyses the flow of international and domestic energy
markets, European electricity markets, energy generation technologies, structures for
reducing CO2 emissions and the integration of wind power.
2. Transport and energy: works around four areas: the current situation from a national
and regional point of view, energy consumption in land transport, future technologies
for transport, the various options or alternatives to the use of oil for transport, and the
analysis of the situation and possible consequences of the incorporation of the electric
car.
3. Energy and industry: competitiveness and industrial development: studies the energy
market from the industrial point of view as an input and output. Analyses the role of
energy in corporate competitiveness, the energy saving and efficiency mechanisms, the
effects of incorporating new energy technologies, and the relationship between the
labour market and energy.
4. Energy geopolitics: analyses the national and Basque context of energy geopolitics,
the current level of dependence on raw materials and its consequences in the energy
market, from a socio-economic viewpoint.
It thus seeks to provide elements for debate in order to propose solutions for achieving
cost-effective and environmentally sustainable energy, thus contributing to competitive
and industrial development.
Academic Alliance between SCOTTISHPOWER and the CCS Centre of

Excellence
SCOTTISHPOWER has reached the first agreement in the United Kingdom between
industry and academia focused specifically on carbon capture and storage. This
partnership, known as the SCOTTISHPOWER Academic Alliance (SPAA), is designed to
meet the needs of the growing CO2 Capture and Storage (CCS) industry in the United
Kingdom. Some of the countrys leading professors from the Imperial College of London
and the University of Edinburgh participate in this initiative. These organisations were
chosen because of their proven experience in CCS.
It focuses especially on technological innovation in CO2 capture and storage on the open
sea, risk mitigation, CCS policy and regulatory aspects, and the search for actions in the
United Kingdom for making the most of the commercial opportunities afforded by this
technology.
The purpose of the Academic Alliance is to develop the skills and in-house experience
needed for implementing its Worldwide Centre of Excellence in CCS in the United
Kingdom, in order to help speed up large-scale deployment of this technology and
support the activities carried out by the IBERDROLA Group in this area.
PERSEO
4.3.4.1 Disruptive innovation

PERSEO is an initiative that uses IBERDROLA development capital to invest in
innovative renewable electric power generation technologies and technologies that
reduce the environmental impact of existing generation systems.
Within IBERDROLAs strategic R&D plan, PERSEO is a disruptive innovation vehicle
focused on long-term research and development in areas of great interest for the future
of the IBERDROLA Group.
Through this type of projects, IBERDROLA seeks to increase its technological value with
high-risk initiatives, while promoting the development of an innovative business fabric in
the area of new generation technologies.
Through PERSEO, IBERDROLA invests directly in technological development. Because
of its aim and approach, it is a pioneering initiative among the electricity sectors
companies worldwide.
4.3.4.2 Objectives
In order to ensure the sustainability of future IBERDROLA investments, the PERSEO
initiatives seeks to:
Ensure IBERDROLA has access to the renewable generation technologies of the
future.
Provide the IBERDROLA Strategic R&D Plan with a vehicle for ground-breaking
innovation.
Promote the creation of high technological value with high-risk initiatives.
Foster the development of an innovative business fabric in new renewable
generation technologies.
39
PERSEO
bet on innovative
renewable electric
power generation
technologies
and technologies
that reduce the
environmental
impact of existing
generation
systemss
4.3.4
4.3.4.3 General operation

To achieve these objectives, PERSEO has been provided with 100% IBERDROLA capital,
with an approximate annual budget for investments of E6 million, and it is managed
through a committee representing the Groups various businesses.
MANAGEMENT
Idea
Management
Identify
opportunities
Filterforthe
committee
Assessment
Select
projectsfor
assessment
Assess
projects
Launch
Tracking
Projects
approval
Agreement
signing
Technicaland
financial
monitoring
PerseoCommittee
InternalandExternalAssessors
COMMUNICATION
Participation of the various areas of the IBERDROLA Group in all the stages of the
life cycle of each project ensures their involvement in the development of the different
technologies, making PERSEO a disruptive innovation instrument for the entire Group
worldwide.
4.3.4.4 Technologies of interest

The main technologies that define the PERSEO investment portfolio are:

Solar energy (both photovoltaic and thermoelectric).

Marine energy.
CO2 capture and clean combustion.
Other technologies aimed at the production and distribution of clean electric
power.
Through PERSEO, IBERDROLA currently looks for projects that match the general
features described above and that represent disruptive technological developments.
These projects can be e-mailed to perseo@iberdrola.es. IBERDROLA will contact the
people responsible for all the proposals received and analyse the feasibility of each
project.
4.3.4.5 Investment portfolio

TEChNOLOGICAL PORTFOLIO
TECHNOLOGY AREA
PROJECTS
MARINE ENERGY
OCEANTEC (Wave Energy)
HAMMERFEST STRM
(Tidal Power)
SOLAR ENERGY
PROMETEO ENERGA SOLAR

(Solar Thermoelectric)
MORGAN SOLAR
(Concentration PV)
CO2 FIXING AND BIOFUELS
ALGAENERGY
Oceantec Energas Marinas

The objective of Oceantec Energas Marinas is to develop a high-performance and costcompetitive wave energy capture device in order to make the most of the huge energy
resource of sea waves.
Oceantec, in which Tecnalia is also a partner, also develops solutions for the
assessment, implementation and operation of any type of device related to marine
energy capture.
41
Hammerfest Strm (Tidal Power)

Hammerfest Strm develops a proprietary tidal power capture technology considered
a world leader in its field. The technology developed by the company has been tested
thoroughly in the marine environment over extended periods of time and is now in the
process of scaling for its marketing.
The company has offices in Hammerfest (Norway) and Glasgow (Scotland) and, in
addition to PERSEO, its shareholders include Statoil and the Austrian group Andritz
Hydro.
Prometeo Energa Solar (Solar Thermoelectric)
The main objective of Prometeo Energa Solar, a spin-off of IBERDROLA Engineering and
Construction, is to develop innovative proprietary technology in the thermal solar energy
field.
Specifically, Prometeo Energa Solar develops an innovative absorber tube and a new type
of structure for PCC (parabolic-cylinder collector) solar thermal plants.
Morgan Solar (Concentration Photovoltaics)
Morgan Solar Inc., headquartered in Toronto (Canada), was established with the aim
of making solar power a cost-effective alternative. Morgan Solar has developed the Sun
Simba HCPV (High Concentration PhotoVoltaics), a highly efficient and low-cost system.
The company has started to build the Sun Simba system for testing, demonstration and
certification purposes at its plant in Toronto.
AlgaEnergy
AlgaEnergy is a technology-based company that operates in the microalgae
biotechnology sector. Its shareholders and technology partners include IBERDROLA
(through PERSEO) and REPSOL.
AlgaEnergy carries out various R&D programmes aimed at making progress in the
development of microalgae production technologies for application in the energy
industry (biofuel production, CO2 fixing, etc.). The company has links with internationally
renowned universities and microalgae research centres.
4.3.4.6 PERSEO AWARDS - 1st Call

In 2010, IBERDROLA announced the 1st Call of the PERSEO Awards, an initiative
designed to promote projects or companies in their initial stage of development, based
on an innovative technological application in the clean energies sector.
Through the PERSEO Awards, IBERDROLA seeks to promote research in the clean
energies field by supporting projects that involve a substantial advance from the
economic, environmental and social point of view.
To do so, PERSEO offers the award winners the support of the IBERDROLA Group as a
business partner in their project.
In the first edition, the PERSEO Awards focused on two areas:
Energy storage aimed at electrical grid use.

Technologies for capture and storage of CO2 and clean combustion.
This 1st Call has been very well received, and given the high technological quality of the
proposals received, a 2nd Call will be announced in 2011, focused on innovative biomass
technologies and new products for energy efficiency.
ShORT-LISTED PROjECTS SELECTED
CATEGORY
WINNER
SECOND PRIZE
Bright Energy Storage

Technologies
EcoVoltz
Westec Environmental
Solutions (WES)
Carbozyme
ENERGY STORAGE AIMED
AT ELECTRICAL GRID USE
CO2 CAPTURE AND CLEAN
COMBUSTION
43
Bright Energy Storage Technologies / BrightCAES

Bright Energy Storage Technologies is developing a low-cost underwater energy storage
system. Wind power or surplus energy is stored by compressing air in flexible containers
at the bottom of a mass of water; the air is released at peak hours to generate electricity.
Bright Energy Storage Technologies can offer spectacular reductions in the net cost and
availability of grid-scale energy storage, while allowing energy storage during off-peak
hours directly from the grid.
The PERSEO
awards are an
initiative designed
to promote projects
or companies in
their initial stage
of development
EcoVoltz / Powerbank
EcoVoltz is developing a grid-scale energy storage system based on a flow battery. More
specifically, EcoVoltz is developing a low-cost flow battery whose performance is higher
than that of other batteries available today. The company is driving its performance
objectives by exploring alternative chemistries that address the cost matters, and many of
the performance questions, related to the technology and the systems available today.
Westec Environmental Solutions (WES), LLC / WES
The WES Absorber technology will offer unprecedented reductions in the height and
diameter of the absorbers and make possible higher solvent loadings than those of current
absorption columns using proprietary structured packaging. Its absorbers will provide
significant reductions in costs, efficiency and weight for a wide range of applications. The
WES Absorber technology applies to all industrial processes that require the transfer of a
mass of gas/liquid through absorption, and has been designed to optimise the gas/liquid
mass transfer processes in a huge variety of sectors and applications.
Carbozyme / CO2 capture through enzyme membrane
Carbozyme is now completing the development of its advanced carbon dioxide
separation and capture system. This proprietary design uses liquid membranes offering
high efficiency and low energy consumption to capture and separate the carbon dioxide
(CO2) from a wide variety of gas flows, with special emphasis on combustion gas. The
most important of the many potential applications of this technology is the capture
of CO2 from combustion gas flues in electric power generation. It is a fundamental
technology for fighting the increase in greenhouse gases and mitigating global warming.
45
Projects
PROjECTS INDEX
NDICE PROYECTOS
R&D in the area of Networks

52
R&D in the area of Generation

53
R&D in the area of Renewables

53
R&D in other areas

54
PROJECTS IN THE AREA OF GENERATION

55
Nuclear Operation and Maintenance 55
DROP Project 55
e-GIRALDA Project
55
REGPH Project
56
MEDECOM Project
56
NOZZLEINSPECT Project 57
CONTROL TURBINA Project

57
Engineering of nuclear generation plants

58
ACCELERATORS AND FUSION Project 58
CO2 capture, storage and recovery

58
SOST-CO2 Project
58
CASSEM Project
59
SOLVit Project
59
STUDY ON THE CAPTURE, TRANSPORTATION AND STORAGE OF CO2 PROJECT IN SCOTLAND
Efficiency in Operation and Maintenance

59
GIL Project 59
DIAGNOSTICA Project
60
e-MAINTENANCE Project 60
INSROCA Project
61
LABCON Project
61
Materials
62
CALDERE Project
62
HOREX Project
62
Energy sale and management

63
GESCOM Project
63
INDES Project 63
INTERNATIONALISATION Project
63
EDRP Project 64
VIRTUAL COLLECTIONS Project

64
PROJECTS IN THE AREA OF NETWORKS

64
Quality of service
64
ARENAL 2 Project
64
CORPRES Project
65
GARGAMEL Project
65
RELIFO Project
66
GIDIN Project 66
GR-REDIS Project
66
New materials and equipment

67
NEW GENERATION OVERHEAD CIRCUIT BREAKER Project

67
PNDC Project
67
PGAS HUB TRIAL Project 67
Protections
68
PROCESS BUS Project

68
MESEGIN Project
68
SASIRE Project
69
COMMUNICATIONS PROTOCOL Project

69
RESUENA Project
69
FAULT CURRENT LIMITER BASED ON SUPERCONDUCTOR DEVICES Project 70
LOCATION OF FAILURES DUE TO ARC USING RADIOMETRIC TECHNOLOGY Project

70
Smart grids - the intelligent grids of the future 70
OPEN-METER Project
70
OPEN-NODE Project
71
REDES2025 Project
71
SMARTSYS Project
72
LV GRID AUTOMATION project

72
Distributed generation
72
FENIX Project
72
59
MICRO-DG Project
73
GROW-DERS Project
73
H2SAI Project 74
MANTIS Project
74
Demand management
74
GAD Project 74
ADDRESS Project
75
SMART COUNTER GO-EARLY Initiative 75
UNIFI Project 76
Asset management
76
WORK ORDER MANAGEMENT Project 76
SIGOR Project 77
AURA-NMS Project
77
SMART BUILDINGS Initiative

77
THERMAL MODELLING AND ACTIVE GRID MANAGEMENT Project

78
Automation
78
CRISLIDA Project
78
ENDS Project 79
Gas distribution 79
INNOVATIVE OPERATIONS TECHNOLOGIES FOR SUPPLY COMPANIES Project
OPERATIONS TECHNOLOGIES FOR CUSTOMERS Project

79
PROJECTS IN THE AREA OF RENEWABLES

80
Energy resources
80
AVANZA WIND SOFTCOMPUTING Project

80
Integration within the grid 81
TWENTIES Project
81
WINDCORE Project
81
Solar thermal
82
GDV Project 82
THERMOSOLAR Project 82
Biomass
82
LIGNOCROP Project
82
Offshore
83
INNPACTO EMERGE Project

83
FLOTTEK Project
84
Marine, photovoltaic and other sources of energy

84
ORCADIAN Project
84
OCEAN LEADER Project 85
Prediction of wind production

85
METEOFLOW Project
85
PROJECTS IN THE AREA OF THE ENVIRONMENT

86
COEBEN Project
86
ZEBRA MUSSEL Project 86
BURNER Project
87
TURBISIN Project
87
PASODOBLE Project
88
REGALIZ Project
88
LEO Project 89
DEPOLIGEN Project
89
UROGALLO Project
89
PROJECTS IN THE AREA OF SAFETY

90
VULCANO Project
90
ARGOS Project
90
e-PREVENTION Project 90
SUARO Project
91
INTEG-RISK Project
91
PROJECTS IN THE AREA OF ENERGY STORAGE

92
ALIA2 Project 92
SAGER Project
92
CAES Project 93
PROJECTS IN THE AREA OF ICTS

93
BACKUP DATA PROCESSING CENTRE (DPC) Project

93
CONOP Project
94
SIOGAS Project
94
SERVER CONSOLIDATION Project

95
79
49
PROjECTS INDEX
FIS Project (PHASE I)

95
IMPULSO Project
96
PROJECTS IN THE AREA OF THE ELECTRIC VEHICLE

EPV Project 96
GREEN Project
97
ULCVDT Project
97
MUGIELEC Project
97
96
51
PROjECTS
5. PROjECTS
IBERDROLAs commitment to innovation grows each year. The company is now involved
in a large number of R&D projects, on most occasions with the collaboration of our
technological partners. This report presents a summary of activities per area and a
selection of the projects executed between 2008-2010.
R&D in the area of Networks

Over recent years, the efforts made by R&D of Iberdrola Networks have focused
toward improving operations of the electricity distribution business in the realms of
occupational health and safety, respect for the environment, and improvement of supply
quality.
Special emphasis is being given to occupational risk prevention. Within this realm,
we must highlight the efforts made through the e-PREVENTION project with the goal
of developing an advanced platform based on ideas and concepts from new e-learning
methodologies for training operators on hazardous situations.
As to actions for improving or minimising the environmental impact of our activities,
we must mention the tasks carried out through the REGALIZ Project, aiming to create a
globally innovative technology for treating decomposition sub products of the SF6 gas, an
excellent electrical insulator, the use of which is broadly extended across manufacturers
of electrical cut-off devices (switches, switchgears).
Smart Grids
IBERDROLA has promoted a variety of initiatives which have situated it amongst
the most innovative companies in this area, at both the European level (OPEN METER,
ADDRESS projects) and in Spain, where the STAR (Smart Metering Systems and Grid
Automation) project has been launched in Castelln, an ambitious initiative which seeks
the technological transformation of Smart Grids. Castelln is the first Spanish city to
have a Smart Power Grid. Therefore, 175,000 clients will have this service, improving
power supply quality by reducing incidences. To carry this out, IBERDROLA will renew
over 100,000 counters currently at the service of its Clients. Furthermore, it will adapt
the citys transformer stations to render services remotely, perform readings of metering
equipment, and manage registrations and cancellations or modifications to subscribed
power.
In the United States, the AMI (Advanced Metering Infrastructure) project will integrate
600,000 customers of Central Maine Power, a subsidiary of IBERDROLA USA, into a smart
grid infrastructure. The DoE (Department of Energy) has granted the project a $96 million
subsidy. In 2010, infrastructure deployment began after selecting the most adequate
technology providers, reaching numbers of 100,000 smart meters and over 250 grid
devices installed with over $97 million already invested in 2010.
An important project for testing smart grids to improve both reliability and quality
of the electric power supply, as well as for increasing energy efficiency and reducing
carbon emissions, was launched through the SCOTTISHPOWER subsidiary in the
region of Liverpool. This project entails a major investment in the infrastructure of the
current grid south of Liverpool and will place this region at the head of global smart
grid development. It will be the first of this kind in the United Kingdom, and will offer
several advantages for both customers and the environment, in addition to boosting the
areas economy, strengthening investments in green technology capable of generating
employment. It will also introduce new information and communication technologies
within the energy supply system.
R&D in the area of Generation

IBERDROLAs R&D effort in the area of generation aims to optimise operating
conditions, increase safety and decrease environmental impact by reducing emissions and
deploying new, more efficient power generation plants.
Leading the capture of CO2 is the CCS (Carbon Capture & Storage) project portfolio
of the coal-fired thermal plant in Longannet (Scotland), the first unit for capturing and
storing CO2 in operation in the United Kingdom. The carbon capture device was installed
in Longannet in 2009 and during this time, numerous tests carried out have implied
highly significant data collection for progressing along the advancement of the complex
technology which allows for capturing CO2 emissions during the energy generation
process. This data will contribute toward reducing the costs associated with this process
and will allow for developing the carbon capture concept.
Iberdrola Ingeniera participates in the CENIT VIDA project, which researches active
CO2 capture techniques, together with environmental modelling techniques and their
applicability to urban settings.
As to thermal production, the COEBEN project is now underway at the Velilla plant
with the goal of developing and validating the combination of advanced technologies
for reducing NOX. These very innovative technologies permit operations in ultra-low
NOX conditions. Furthermore, we participate in the CENIT SOST-CO2 project, which aims
to progress beyond the capture and storage of CO2 by investigating new large-scale
applications, developing suitable technologies for these applications and studying the
revaluation of captured CO2 for high added-value applications.
In the area of nuclear energy, development has continued in nuclear safety projects,
management of power station service life, management and analysis of fuels, generation
III plants, decommissioning of plants and minimising environmental impact. There
has also been progress on technological development for the engineering of large
accelerators and nuclear fusion. A project has been launched in the Cofrentes plant to
design and develop a new water treatment process which aims to partially substitute
sulphuric acid with carbon dioxide as the normal pH neutralising agent. Finally, another
project has been launched to develop a novel means of measuring channel deformation
within the pool of fuel elements.
The project at the combined cycle plant in Castejn is worth highlighting, given its
impact in ecological and financial terms. Research is being done on life cycle of the zebra
mussel in order to develop a methodology for preventing and controlling its condition as
an invasive species at power generation plants.
R&D in the area of Renewables

IBERDROLA, as global leader in wind power, focuses its R+D+i on two areas: improvement
of efficiency and development of new generation technologies.
Iberdrola Renovables started its participation in the TWENTIES European project, cofunded by the European Union, with the objective of demonstrating the feasibility of mass
integration of wind power into the grid while ensuring its stability. Launched in 2010, the
project will have a duration of three years, and has a budget of close to E60 million.
In offshore activities we should mention the EMERGE project, which was launched
headed by Iberdrola Renovables, for developing a floating platform technology to permit
the generation of wind power in deep waters.
Two projects stand out in marine energy (waves and tides): CENIT OCEAN LEADER,
headed by Iberdrola Ingeniera, for the development of marine generation technologies,
and ORCADIAN, aimed at the building and deployment of second-generation wave energy
converters based on the PELAMIS technology off the Scottish coast.
As for biomass, the LIGNOCROP demonstration project, cofinanced by Plan-E, has been
launched for developing the biomass value chain based on lignocellulosic energy crops.
53
PROjECTS
R&D in other areas

Electric vehicles
In 2010, IBERDROLA has intensified its commitment to the electric vehicle across
its entire value chain through agreements with public administrations, major car
manufacturers and recharge system suppliers, and has participated actively in both
national and international standardisation groups and in R&D projects.
The IBERDROLA Green Mobility plan was launched this year, the first comprehensive
solution in Spain for facilitating real access to electric mobility. Customers are offered a
full package: vehicle purchase, recharge point installation, financing and the supply of
100% renewable energy.
The Groups interest in promoting this type of transportation dates back to over
10 years ago with the ZEUS project, carried out between 1996 and 1998 with the
Mondragn Group; VIEL, conducted at its centre in San Agustn de Guadalix between
2002 and 2004; and a pilot project backed by Valladolid City Council to introduce
electric motorcycles and the necessary recharging points.
In 2010 IBERDROLA received the first electric vehicles for its corporate fleet, to be used
for tasks related with urban interoffice mail and courier services and for managementrelated activities of distribution units.
The Company plans to substitute 40% of its vehicular fleet, about 300 units, with these
types of vehicles, much more efficient and environmentally-friendly than combustionbased motors, in line with its commitment to sustainable development and the reduction
of CO2 emissions.
This addition represents a second step taken by IBERDROLA, after its installation at the
end of last year of recharging points at its main corporate buildings in Madrid, Valencia
and Bilbao, to promote electric mobility at all of its work centres.
Today, IBERDROLA develops different R+D+i projects related with this field, such as
CENIT VERDE, together with SEAT, with the aim of developing technology in Spain for
this type of transportation, or MERGE (Mobile Energy Resources in Grids of Electricity), to
study the impact of the integration of these vehicles within actual and future distribution
grids.
Furthermore, the Company has formalised an agreement with FCC to promote electric
vehicle development as a means by which to reinforce the fight against climate change
and in favour of sustainability. Specifically, both companies have launched three lines
of work for promoting this type of transportation: promoting electric fleets, installing
recharging points, and participating in demonstrations on electric mobility in cities.
IBERDROLA sees the hand of various Spanish public administrations that have shown
interest in the electric vehicle: Castille and Leon, Valencia, Basque Country, Murcia
and Madrid. With these, the company develops projects both related with recharging
points (agreements signed for over 300 recharging points) as well as for electric mobility
services (carsharing).
Beyond our national boundaries, through its subsidiary SCOTTISHPOWER the Group
participates in a project focused on promoting the required electric infrastructures for
electric vehicle use in Glasgow and in the United States, and through IBERDROLA USA, a
work group has been established to study different pilots across the state of Maine.
These actions, along with studies the Company participates in along with General
Motors Europa to analyse the technical requirements of infrastructures for supplying
electric vehicles, are in addition to our participation in international groups for charging
standardisation, such as the ISO/IEC Joint Working Group V2G worldwide, and our
presence in prestigious forums such as Foreve in Spain and GreenCars at the European
level.
Energy storage
An agreement has been signed with the U.S. Department of Energy for the carrying
out the first phase of the compressed air energy storage project. CAES (Compressed Air
Energy Storage) technology basically consists of using a compressor to store air during
low-demand periods and to release this air during high-demand periods for generating
electricity. Amongst other benefits, this system will promote the integration of renewable
energy sources into the grid. The formalised agreement, with a budget of $5 million,
half of which will be funded by DoE, covers the execution of the first phase during
which tasks related with design and engineering as well as a full feasibility study will be
completed.
PROjECTS IN ThE AREA OF GENERATION

Nuclear Operation and Maintenance
DROP Project
Calculation of stability margins in BWR (Boiling Water Reactor)
The project intends to develop a system of precise prediction for calculating the
stability margins in BWR nuclear reactors and implement it as a pilot project at the
Cofrentes nuclear plant.
Its main application is to speed up and facilitate power plant commissioning processes,
thus preventing their unscheduled stoppages, and increasing their profitability.
The objectives reached are the following:
Development of a stability monitor as a mechanism for controlling stability and
thus facilitating power variation manoeuvres.
Creation of a new predictive model for the vapour fraction present in the boiling
mixture that refrigerates the reactor core combined with the monodimensional
kinetic model. Finally, an alternative was sought for online data collection by
analysing the quality of these data for use in analysing reactor stability.
e-GIRALDA Project
Comprehensive fuel management system for nuclear reactors
The main aim of the project is to develop a comprehensive system for recharging
nuclear fuel as a way of reducing the time needed to design fuel elements and increase
the reliability, integrity and safety of the process.
The objectives reached have been:
Extending the operating cycle from 12/18 up to 24 months.
Fuel licensing for high temperature burning of element rods.
Management of the recharging design (tasks and times), depending on different
operational scenarios.
Simultaneous implementation of various recharging designs, thus achieving an
automated fuel recharging process.
55
PROjECTS
Increasing and guaranteeing quality of the nuclear plant fuel recharging process,
avoiding possible human error in complex processes requiring significant
exchanges of information.
Access, control and monitoring of execution through a number of calculator
simulators (CASMO, INTERPIN, SIMULATE).
Automatic workflow management of the recharging design process.
Rendering of services to external clients of IBERDROLA (CSN - Nuclear Safety
Council, fuel suppliers, etc.).
Creation of a service platform for fuel-related management activities: efficient
data management, process automation, process coordination and creation of
monitoring patterns.
REGPH Project
Design and development of a new water treatment process in the
refrigeration cycle of nuclear plants of the electricity sector
The objective of this project is the design and development of a new water treatment
process for regulating the pH of waters in the cooling and service water circuits which
operates permanently and partially replaces sulphuric acid, used as a Ph-regulating agent,
with carbon dioxide to reduce the water sulphate content. Likewise, the design and
development of a monitoring system for the permanent control of critical installation
parameters.
In this way, we manage to lessen the incrusting nature of water used at the plants
for supplying the condensers cooling circuit and as service water and reduce the
secondary contamination produced in the effluents by lowering their sulphate content.
Furthermore, the safety and service life of the installations are improved in treating the
CO2 of an innocuous, non-corrosive and non-incrusting substance.
The results obtained have been as follows:
Acquired technical know-how on water treatment through CO2.
Validation of a new water treatment process in the refrigeration cycle.
MEDECOM Project
Development of a device for measuring deformation of irradiated fuel
channels
Iberdrola Ingeniera y Construccin intends through this project to develop an
innovative device for measuring the deformation of channels used for fuel elements
within the pool of fuel elements in order to know with precision the condition of these
elements and make a more safe and efficient use of the same.
Up to date, no tool exists capable of performing this measurement on the basis of a
capacitative sensor. Therefore, the development of this prototype would be an important
innovation on a global scale.
The project plans to carry out the following activities:
Preliminary research and definition of specifications.
Development and integration of components.
Pilot experience.
NOZZLEINSPECT Project
Autonomous robot for the automated inspection of welded nozzles
The project focuses on the development of an advanced, intelligent robotic system for
inspecting the weldings of cooling nozzles at nuclear plants. The final goal is to design a
globally novel device which allows for increasing both the reliability and speed of these
inspections.
The main activities of the project are:
System specifications and procurements of samples.
Test phase design and modelling.
Development over the course of the test phases of an intelligent technique via
ultrasound and of a prototype.
Development of an advanced navigation system and a monitoring system.
Low-cost, robotic scanning system.
Integration system and laboratory testing.
CONTROL TURBINA Project

Design and development of new digital systems for turbine and supply
water control at BWR nuclear plants
The project seeks the integration of new technologies in digital control and
instrumentation systems as well as techniques for self-monitoring which improve manmachine communications, and thus render the process more reliable by improving
nuclear plant operations.
The project seeks to develop new control systems for turbine and bypass, recirculation,
and control systems and feedwater instrumentation by using a digital control platform at
nuclear plants of this type.
The results obtained to date have been:
Integration of the systems within the digital control platform and study of their
behaviour within the same.
Execution of the first preliminary test at a plant in order to evaluate the
functioning of the newly developed systems.
Carrying out of a pilot experience at the plant for the definitive validation of the
prototype.
Attainment of a reliable system with a robust design, capable of identifying
operating errors which put at risk the safety of simple errors independent of
reactor operations.
Reduced uncertainty and difficulties during the start-up of the new system.
Through all of this we have achieved the creation of a management programme which
aims to extend the life of BWR nuclear plants and thus enable long-term, guaranteed
operations. In this way, the reliability and availability of BWR nuclear plants is optimised.
57
PROjECTS
Engineering of nuclear generation plants

ACCELERATORS AND FUSION Project
Construction and start-up of accelerator installations and engineering of
fusion generation constructions
The goal of this project is to advance in the know-how required to make the use of
nuclear fusion as a clean source for power generation a reality. Both lines of research
focus on the design of accelerators and design of critical components for the ITER
(International Thermonuclear Experimental Reactor) experimental facility.
So far, the following advances have been achieved:
A commissioning methodology for accelerators is available, defining the steps
required to use accelerators of any type in real-life environments, having a broad
applicability.
The analyses required for considering the design of installations with
TECHNOFUSIN accelerators are underway, identifying those aspects of higher
technological risk.
Technical viability study which assesses the technological complexity of a facility
for the comprehensive demonstration of the use of TBM (Test Blanket Modules) of
the ITER facility.
Development of the First Wall Panels for the ITER facility.
CO2 capture, storage and recovery

SOST-CO2 Project
New sustainable, industrial uses of CO2
The project aims to investigate new large-scale applications of CO2, developing suitable
technologies for these applications and studying the recovery of the CO2 captured as an
alternative to its emission or geological storage.
The ultimate aim of this project is to promote research into, and the development of,
new technologies which incentivise the capture and use of captured CO2, avoiding its
atmospheric emission and generating added value, combining both capture and recovery
technologies, leading this sustainable use in Spain and extending it worldwide.
The following activities are planned:
Investigation of the use of CO2 from thermal plants and its applicability to
horticulture.
Acidification of freshwater from thermal plants cooling cycles.
Study of the adequate conditions for avoiding the development of macrofouling
in cooling systems using seawater.
The following results have been obtained:
Analysis of the gas emitted by the Castejn thermal plant have concluded, along
with analyses on the mid and long-term stability of bottled gas.
Development of algorithms for controlling the amounts of atmospheric CO2 in
the greenhouse.
Compilation of data and pedagogical materials in audiovisual format for the
elaboration of a manual of good practices for using CO2 for agronomy-related
purposes.
Assessment of the technical and financial viability of using gas emissions from a
combined cycle plant for controlling water pH.
Experimental evaluation of the concentration of CO2, depending on the ideal pH
limits, in order to avoid the development of macrofouling.
CASSEM Project
Evaluation of aquifers as sites for CO2 storage
SCOTTISHPOWER has led a successful project on the selection, evaluation and
monitoring of an aquifer for storing CO2 (CASSEM CO2 Aquifer Site Selection,
Evaluation and Monitoring). The CASSEM Project is financed by the Engineering and
Physical Sciences Research Council (EPSRC). This organism brought together companies
and organisations of the entire CCS chain in order to develop methodologies, workflows
and viewpoints essential for the correct identification and evaluation of safe and effective
aquifers for storing CO2.
The project used two different, typical sites in the United Kingdom located at power
plants belonging to different project partner utilities (SCOTTISHPOWER and Scottish and
Southern Energy), in order to assure that the research and approximations carried out
were correct.
Progress is being made in preparing the second phase of the project in order to
continue to advance along these lines.
SOLVit Project
SCOTTISHPOWER participates in the SOLVit project, with the goal of developing,
testing and selecting different amine-based solutions for capturing CO2 and reducing the
energy required to separate CO2 from the chimney exhaust gases, the most costly part of
CCS processes.
This project seeks to reduce by 30% the energy required for post-combustion CO2
capture using solvents by the end of 2010, with a long-term goal of reducing the need
for energy by 50% at a reference plant. As part of the SOLVit Project, the Mobile Test Unit
(MTU), a prototype unit for CO2 capture, has been installed at the Longannet electric
power plant since May 2009, capturing up to 180kg of CO2 per hour. The MTU is a
fundamental step forward in the capture of CO2 on a commercial level at the Longannet
plant.
STUDY ON THE CAPTURE, TRANSPORTATION AND STORAGE OF CO2 PROJECT IN

SCOTLAND
SCOTTISHPOWER has taken part in the Scottish Regional Study led by Scottish Carbon
Capture and Storage (SCCS). This study is the continuation of another one carried out in
May 2009 titled CO2 Storage Around Scotland, and its goal is to confirm the estimates on
carbon storage for the Captain Aquifer located at the Central North Sea. Results will be
available in 2011.
Efficiency in Operation and Maintenance

GIL Project
Design and development of an innovative, automated auscultation
system for dams and their foundations
This project, carried out through the collaboration of a large number of companies,
intends to develop an innovative, automated auscultation system for dams for the
59
PROjECTS
purpose of analysing and obtaining more reliable conclusions on data collected from dam
auscultation. This entails the definition of a new architecture for information management
and communications and the use of new dam-related data networks, establishing new
protocols for data transmission.
So far, the following results have been achieved:
Design and development of a signal concentrator for controlling
telecommunications.
Development of new statistical algorithms and functions, oriented at the analysis

of data collected through dam auscultation.
Synchronisation of the actual data collection equipment and the new system in
order to guarantee, over the long term, the installation of new equipment based
on PLC (Programmable Logic Controller) technologies.
DIAGNOSTICA Project
Research and development of a system to evaluate the condition of
electrical machinery
The objective of this project is to develop a new system for evaluating the condition of
electrical machinery in order to integrate different predictive techniques and facilitate
the diagnosis of the real condition of the machines in order to increase electricity
generation efficiency.
Thanks to the achievements of this project, we expect to gain a better planning and
definition of maintenance tasks, elaboration of recommendations on the most suitable
operating modes, and, definitely, machine operations under optimal conditions, thereby
extending their service life. Furthermore, we expect to achieve a substantial reduction of
stoppages at facilities and an improvement of efficiency and energy exploitation during
generation processes.
The project entails the following activities:
Definition of evaluation parameters and tests.
Execution of tests for parameter evaluation.
Analysis and interpretation of results.
Design and development of an evaluation system.
Validation tests.
e-MAINTENANCE Project
Applying new technologies to the operational safety of production
systems
This R+D project focuses on new, advanced maintenance-related methodologies which
would allow for predicting possible failures which may occur in the production system
and, therefore, would substantially improve the functioning and operability of electric
plants, initially focusing on combined cycle plants.
For this, the critical assets of the productive systems are analysed and an exhaustive
study is done on their maintenance-related strategies, analysing their variables regarding
status, transitioning and modelling of critical activity blocks. On the basis of this
modelling results the development of new algorithms in order to define new, advanced
management strategies for physical assets.
The specific objectives of this project are:
Definition of specifications and analysis of criticality.
Design and development of new models and algorithms.
Design and validation of advanced maintenance methodologies.
Design and validation of a support software package.
The most relevant results obtained are:

Design and development of new algorithms for voltage transformers.
Initiation into the development of a methodology for study and analysis in order
to improve diagnoses on viability-related problems.
Design of advanced maintenance-related methodologies and strategies on the
basis of existing signals of different variables of equipment and processes.
Design of advanced maintenance policies for what was considered the data base
of signals at the Aceca combined cycle plant.
Start of the validation tests of different developments.
INSROCA Project
Design and development of a robot for inspecting pressurised elements in
power plant recovery boilers
The objective is to develop, together with the Universities of Malaga and Seville,
inspection-related technologies capable of resolving problems of recovery boilers at
combined cycle plants. To this end, we part from the experience obtained through a
previous project (ROBOCA) and of a demonstrator designed and developed through that
project.
Based upon a series of tests, the development of a new system capable of reliably
approaching detection-related problems will be considered, if deemed of interest. The
great advantage of this system is its use for carrying out corrective maintenance of boilers
by locating the area for action before the operators carry out the repair, thereby avoiding
lost time in searching for the cause of breakdown.
The project will focus on the following actions:
Design of experiments and development of the demonstrator.
Research and development on the positioning and sensory subsystem.
Development and integration of the inspection system.
Experiments and validation.
LABCON Project
Laboratory for the development of advanced control strategies for thermal plants
The objectives of this project are:
Availability of an environment in which to develop control strategies for critical
elements of the plant (steam drum level, vapour tempering, control of exported
vapour, etc.). Specifically, the goal is to develop algorithms based upon advanced
control (fuzzy logic, adaptive control based on models, sliding mode control, etc.).
Availability of an environment in which to carry out tests which allow for
analysing the behaviour of the plant unto specific technical/technological
innovations prior to their actual implementation, such as, for example, the
validation of new software and hardware.
Increase of the Companys know-how on the behaviour of the plants different
critical components.
To this end, the following tasks are developed:
1. Software description:
5. On-line/Off-line mode
2. Architecture design:
6. Plant model process selection
3. Physical connection of
equipment
7. Implementation of the plants

mathematical models in
LABVIEW
4. Software configuration of I/O

wiring
8. Programming of user interfaces
9. Physical connection of
instrumentation equipment
10. Testing and adjustment of
models
11. Programming of existing
control
61
PROjECTS
Materials
CALDERE Project
Research and development on a new methodology for analysing
breakdown and evaluating the remaining useful life of boiler pipes
The main aim of this project is to develop a system and methodology to analyse the
breakdown and assess the remaining useful life of recovery boiler pipes in order to
increase the availability of the facilities and extend the useful life of the recovery boiler
pipes at thermal plants.
The different objectives of this project include:
Preliminary analysis and definition of parameters and tests.
Research into the mechanisms of the breakdown.
Design and development of a method for analysing breakdown.
Development of a methodology for evaluating remaining useful life.
Validation in the real setting.
The results obtained to date have been:
Final design and development of the data analysis methodology based upon the
selected breakdown mechanisms and their differentiating characteristics.
Design and development of a methodology for evaluating the remaining useful
life of recovery boilers, depending on operating conditions, types of materials,
location of the boiler, and other variables.
Research on systems for evaluation and prediction of damage in order to obtain
the maximum benefit of the materials composing the recovery boiler pipes.
Acquisition of knowledge on the characteristics of the materials in order to
enable proper management of the life of the facilities.
HOREX Project
Research on the phenomenon of concrete expansion caused by chemical
agents in dams in order to develop new methodologies for its diagnosis,
monitoring and treatment
The objective of this project is to investigate the phenomenon of chemical expansion
of concrete in structures subject to high loads in order to expand and generate new
scientific and technical knowledge in the field, as well as to develop mathematical models
for defining new methodologies for auscultation, diagnosis, monitoring, repair and
prevention. This will increase the safety of dams and prolong the useful life of concrete
structures.
The following actions are performed:
Research on the phenomenon of chemical expansion of concrete.
Development of new methodologies.
On-site testing and validation.
Amongst the results obtained to date are:
Broadening of scientific knowledge on the phenomenon of chemical expansion

of concrete.
Study on the symptoms of dams and hydroelectric power plants worldwide which
suffer concrete expansion in or to promote the speedy detection of the pathology
and, therefore, its immediate intervention.
Development of a kinetic model of the primary reaction of oxidation and
application of transversal profiles to dams.
Testing of aggregates and samples extracted from the San Esteban dam.
Obtention of important conclusions which propose the development of a robust
methodology which allows for studying concrete expansion.
Energy sale and management

GESCOM Project
The deregulation of the electricity market has resulted in an increased
potential market as well as in heightened competition, wherefore
the need arises for gaining greater knowledge about clients (actual
and potential) in order to personalise the offer and identify business
opportunities, thereby reducing market-related uncertainty
The project aims to develop models to acquire customers by using the value
contributed to IBERDROLA, build customer loyalty and value, and improve the customer
service process to increase their satisfaction and decrease service-related costs.
INDES Project
Design and development of a new management process for incidences,
unavailability and discharges
Through this project we aim to design and develop a unique, innovative scenario in the
electricity sector for integrating all of the necessary functionalities of generation control
centre operations, with real-time progress for elaborating optimal planning of incidences,
unavailabilities and discharges, to improve process efficiency , guarantee worker safety
and allow for reliable operations of the power generation plant in its contribution toward
the supply guaranteed to the customer.
INTERNATIONALISATION Project
Development of new solutions for global management of the energy
market
The main objective of this project is to develop new systems for managing,
coordinating and exploiting new energy markets, having a global scope, in such a way
that these may be used through all Company facilities.
With the purpose of creating conditions which foster greater reliability, quality and
safety of energy supply, this project entails a series of important advances through the
design, development, adaptation and expansion of tools to support decision-making
within the global energy market.
In order to achieve the main objective, the following actions are to be carried out:
Integration within models for planning and offers of international facilities, the
analysis of requirements and the definition of solutions.
Development of models and tools for operations and risk management of
wholesale electricity markets in Europe.
Development of prospecting models for emission reduction credits.
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PROjECTS
EDRP Project
Research into energy demand (Energy Demand Research Project)
This project, with the participation of SCOTTISHPOWER, has evaluated the impact on
domestic energy spending of a number of initiatives designed to promote energy saving.
Four energy providers have participated in this project carried out in the United
Kingdom, and impact tests have been done on several interventions (individually or
combined) between 2007 and 2010. These interventions were primarily aimed at
reducing domestic energy consumption. Over 60,000 homes participated in the project,
including 18,000 with smart meters.
The behaviour research tests, financed by the government of the United Kingdom,
started in April 2007 and were completed in March 2010.
VIRTUAL COLLECTIONS Project

The goal of this project is to lay the bases for self-service management of payments
to utility companies for energy. The inclusion of the Virtual Collections SelfServe application enables customers to manage their own payments directly with
SCOTTISHPOWER through a personalised web portal to be available 24 hours per day. The
customer will find through this web specific payment options based on their economic
profile, offering the consumer personalised alternatives while lessening the risk of nonpayment by basing the options offered on the circumstances of each customer.
PROjECTS IN ThE AREA OF NETWORKS

Quality of service
ARENAL 2 Project
Design and development of a system for simulating the behaviour of
underground lines
The main goal of this project is the design and development of a system for simulating
the behaviour or underground lines to facilitate the predictive maintenance of cables.
Based upon real data on the operations of LV underground grids, the new system
developed is capable of predicting cable behaviour depending on operating conditions as
well as their degree of wear in order to predict breakdown and failure and determine its
remaining useful life and service conditions. It may also generate thermographic maps
which locate conflictive points, such as grid saturation and the possibility of breakdowns.
Thereby, it aims to increase efficiency and optimise the potential of LV underground
power lines, based on pattern recognition resulting from tests which classify the
condition of the cables and allow for detecting faults.
CORPRES Project
Research on underground power lines for the subsequent design and
development of new applications for the location, classification and
diagnosis of breakdowns
The main objective of this project is the design and development of new applications
for the location, classification and diagnosis of underground power lines. Its purpose
resides in increasing the efficiency and optimising the potential use of these types of
lines, decreasing the number of incidents and the duration of repairs.
The objectives reached have been:
Definition of the most relevant technical criteria for the future development of
underground power lines and technological procedures and recommendations
which, when applied to these, allow for optimising existing resources.
Development of advanced diagnosis systems for underground power lines,
definition of criteria on malfunctions, and estimation of remaining useful life of
each component.
GARGAMEL Project
Design and development of an automated system for detecting failure
and comprehensive management of zero defects in electrical materials
The GARGAMEL Project is born of the need for improving inspection equipment used
during the electrical material manufacturing processes. IBERDROLA, with other members
of the consortium, will design and develop a new technology for evaluating quality of
aluminium-steel conductors during their manufacturing process in order to improve the
quality of the electricity supply.
The main objective of the project is to study and develop a new technology for
evaluating the quality of conductors for overhead lines throughout the entire
manufacturing process.
During the first phase, an exhaustive study was done of the existing manufacturing
process, as well as of the main defects which may arise during the same. For the
characterisation of defects, a prior study was required on the manufacturing methods
used for this type of product. To this end, different in-factory visits were made to gain
knowledge about the factory and discover the different quality control methods used,
the possibilities inherent to the production line, and the indispensable requirements and
needs of both parts, for the design and implementation of a quality control system using
induced currents on the line.
As a conclusion to the first phase, the decision was made to study the possibility for
introducing a fault detection system which would allow for classifying the raw materials
by quality and which would generate information and statistics on defects resulting of
the production process. Finally, the study and analysis phase prior to the manufacturing
process resulted in the need for implementing a system for detecting faults at two critical
places of the process: one at the stage of wire reception, and another upon completion of
wire drawing.
65
PROjECTS
RELIFO Project
Development of a new artificial vision system for inspection and predictive
maintenance of LV and MV overhead power lines
The main objective of this project is to develop a new, completely automated system
for the predictive maintenance and inspection of LV and MV overhead power lines.
This new system is based on the development of new algorithms and artificial
vision patterns to characterise power lines and identify anomalies. It includes a totally
automatic system of data collection that uses unmanned aircraft and a new software
system to analyse anomalies and predict the probability of events, acting as a support for
decision-making and corrective or preventive measures.
The following objectives have been reached:
Development of hardware, image capture software applications and a programme
for detecting hot spots in distribution lines.
An image capture system has been obtained, capable of satisfying the needs
inherent to overhead power lines and allowing for the quick and efficient
identification of anomalies.
New artificial vision algorithms have been created.
GIDIN Project
Smart management of incoherent data
The main objective of this project is to research, design and develop a documentary
management system that organises information structurally in order to create and
maintain regulatory documentation, guaranteeing uniqueness of the information by
creating a methodology and series of tools which add consistency to the documentation
which allows for organisational management.
GR-REDIS Project
Design and development of a new visualisation system for electricity
distribution grids
The main goal of this project is the design and development of a new visualisation
system oriented at distribution grid management. This new visualisation system
permits grid analysis as well as management of the grids growth to satisfy new supplies
and manage the information generated. Furthermore, it allows for behavioural
simulations of the same to consider different parameters (loads, saturation, voltage
drops, power losses and limits) and the integration and centralisation of all information
proceeding from multiple systemic processes. In this way, a more reliable and adequate
representation of the grid is obtained, providing applications which allow for recording,
accessing and managing the information required for optimal maintenance and
operations.
The functionalities described below are developed in order to fulfil this projects main
objectives:
Graphical application for grid simulation: Diverse functionalities are
implemented through this application for the technical management of supply
related with the power distribution grid.
Interaction between the different systems and databases which store information
on distribution grid management.
Management of new supplies: Automation of the process used for managing new
supplies.
New materials and equipment

NEW GENERATION OVERHEAD CIRCUIT BREAKER Project
Grid shutoff device
This project consists of the study, research and development of a new generation
overhead circuit breaker. This is a motorised, overhead circuit breaker for shutoff and
insulation, also known as a grid shutoff device, designed for its external installation upon
all types of posts. It may be installed on overhead distribution lines in rural and semiurban areas.
The devices will be integrated within the electricity distribution system in order to
obtain major improvements in the reliability of distribution grids. It will possess a
remote-control system through which failures are detected and insulated, and will allow
remote grid reconfiguration, thus reducing travel expenses and augmenting quality of
service.
Currently, the shutoff devices available in the market are supplied power from the
electricity grid they are protecting and monitoring itself. MV transformers are used for
this purpose. Through this project, the MV transformer is to be replaced with a series
of solar panels and a highly efficient DC/AC power converter with intelligent controller
which will optimise energy use while separating it from the electricity grids power
supply system and reduce costs.
This change to the power supply system for another more efficient one implies the
redesign of the rest of the shutoff devices components to adapt these to new power
supply conditions, thereby improving the efficiency of each while simultaneously adding
new functionalities which actual products do not offer.
PNDC Project
Power Network Demonstration Centre (PNDC)
The purpose of this project is to develop a large-scale prototype of an 11kV LV grid as a
test bench for management techniques of active grids and other high-risk technologies.
In collaboration with its partners (Scottish & Southern Energy, Scottish Enterprise
and the University of Strathclyde), SCOTTISHPOWER intends to achieve the following
objectives:
To provide a demonstration grid which allows for testing new technologies within
a real grid.
To make available a real grid which integrates 11kV LV equipment and contains,
in reality, loads, power generation, and technological testing.
To create an installation accessible by the worlds of academe, R&D centres,
manufacturers and grid operators.
The goal is to create a real-scale model which represents different urban, semirural and
rural grids. The proposed system integrates real equipment to assure representativity and
credibility of the model, thereby reducing future risks and decreasing integration times
of new technologies at facilities.
PGAS HUB TRIAL Project

This is a collaboration project between SCOTTISHPOWER Energy Retail Lts (SPERL)
and Green Energy Options (GEO), a leading manufacturer of energy monitoring systems.
The goal is to research and develop the next generation of products for monitoring
energy which will function with or without smart meters, and will provide all domestic
consumption-related information to customers.
67
PROjECTS
Protections
PROCESS BUS Project
Development of a new process bus architecture for the protection and
control of HV equipment at electric substations
The main objective of this project is to develop a new process bus architecture for the
protection and control of HV equipment at electric substations. The main purpose of the
new solution is to introduce a substantial improvement at HV electric substations.
Technical goals associated with the main objective include, on one hand, maximising
system reliability thanks to the introduction of new electronic devices with intelligence
capable of supervisory tasks. On another hand, designing a more efficient system will
permit improvements both during testing phases as well as later maintenance. Finally,
this project pursues the development of technologies which permit interoperability of
receptor elements with control relays and protections made by different manufacturers,
as well as the validation of using non-conventional current transformers with
communications in compliance with the IEC-61850 standard.
MESEGIN Project
Research into solutions for improving the functionality and safety of LV
electrical protections in homes
The main objective of this project is to analyse, identify and define new specifications
which allow for obtaining new designs for electrical protections of LV installations
depending on the type of installation and/or grounding system for the purpose of
making progress which improves safety for both persons and equipment.
Throughout 2009, the project has culminated in success for improving the
functionality and safety of LV electrical protections in homes.
The execution of this project has resulted in the definition of protection systems which
are more adequate for improving the safety and functionality of actual homes per their
needs, focusing on the compatibility between electronic receptors of homes in Spain and
the protection practices followed by installers and distribution companies.
The main objectives achieved through this project are as follows:
Behavioural analysis of differentials available in the market under conditions of
transitory phenomena.
Identification of specifications for necessary protections depending on the
type of installation and/or grounding system, definition of new protections
and development of complementary specifications to those legally in effect for
those points where loopholes exist in order to improve the safety of LV electrical
installations in homes.
SASIRE Project
Automated treatment system for grid-related incidences
The main goal of this project is to develop a new system capable of automated
monitoring of the behaviour of electrical transmission and distribution grids during
incidences.
General objectives arising from the main objective include:
To improve grid reliability and rendered service quality.
To considerably reduce the number of major grid-related incidences.
To optimise preventive and predictive maintenance systems.
COMMUNICATIONS PROTOCOL Project

Development of communications protocol and multi-manufacturer
electric substations
The main goal of this project is to develop an electric substation at which equipment
made by different manufacturers and with different origins coexist, in accordance with
the IEC-61850 standard, so as to guarantee their interoperability.
The objectives reached during the execution of this project have been:
Creation of the first global pilot experience of a multi-manufacturer electric
substation with the subsequent standardisation of equipment and systems at
electric substations, promoting and fostering its development, which until now
had been merely theoretical.
Development of a new solution which permits the exchange of information
and operations between different electricity operators at a shared, multimanufacturer substation.
Validation from theoretical to practical levels of the IEC-61850 standard so that
it will be interpreted in the same way by equipment and systems manufacturers
which integrate actual electric substations, proposing modifications or additions
to the same when it is ambiguous or limits usage, given its novelty and, therefore,
scarce development and application.
RESUENA Project
Design of new systems for grounding
The main goal of this project is to design new systems for grounding, including the
new active grounding system, which overcome the limits of conventional, passive
grounding systems and optimises grounding for MV systems across Spains grid.
The objectives which have been reached are:
To demonstrate the technical viability of the resonant-grounded system in Spains
electricity grid with guarantees of quality and safety required for designing the
new system.
To optimise MV grounding systems through a new system which permits
interventions in failure-related values and characteristics.
69
PROjECTS
FAULT CURRENT LIMITER BASED ON SUPERCONDUCTOR DEVICES Project

The purpose of this project is to design, develop and test three superconductor devices
that limit defects originated by fault currents at three grids in the United Kingdom.
The level of fault current intensity has always restricted the development of electricity
networks. It has been controlled by increasing network impedance or introducing
components designed to support higher intensity levels. The continuous increase in the
demand for energy, increased installed capacity near cities and other parameters will
require work with higher levels of fault currents.
This has increased interest in controlling or reducing the impact of these discrepancies
or faults, which is why this project is particularly relevant.
The goal is to develop a serial ceramic superconductor of nonlinear electrodynamics
with automated switching for contention and dissipation of fault currents.
In order to develop and comprehend the objectives associated with this project, testing
will be done to help develop commercially available devices capable of containing fault
levels below the grids design level. Once contrasted, the option will ensue for handling
grid fault levels, providing an alternative for grid reinforcement.
LOCATION OF FAILURES DUE TO ARC USING RADIOMETRIC TECHNOLOGY Project

The goal of this project is to study the possibility of precisely locating failures in overhead
power lines using a radiometric system. The principle of this technology is:
There exists a correlation between radiofrequency downloads and overhead
power line failures with the radiofrequency signal captured by a radio antenna
within a distance of up to 70km.
If the antennas are distributed along the entire grid, a network similar to the GSM
cellular network is created.
If a failure may be detected with precision and in a timely fashion, it may be
delimited from a number of stations to establish an approximate (precision of
300m) geographical location and connect a GIS/SCADA system for an even more
precise location of the failure.
Smart grids - the intelligent grids of the future

OPEN-METER Project
Development of a non-proprietary and standard technology for the
remote management of meters (Open Public Extended Network Metering)
The main goal of this project underway is to specify a complete and exhaustive set
of standards for AMI (Advanced Metering Infrastructure) which will be used to control
and measure different basic services (electricity, water and gas), based upon agreement
between the leading, most important actors of this field.
In order to fulfil this main objective, the OPEN-METER Project carries out the necessary
research activities to cover current gaps and limitations in know-how within this area and
therefore allow the most relevant industries to agree on, implement and adopt the new
set of standards to be determined.
In this way, the specific objectives defined for this project are:
To assure interoperability between different devices which comprise a
communications system using an AMI infrastructure.
To improve the operating conditions of advanced metering systems.

To provide distribution grids with a standard connectivity environment by
establishing standard communications systems.
OPEN-NODE Project
Open architecture for smart power grid nodes
One of the main challenges faced by electricity companies is to connect a wide variety
of different systems, including measurement and control systems such as components
for distributed generation. A network of devices based on open and secure standards is
needed in order to mitigate the risks derived of system diversity.
The project will focus on the internal parts of the distribution grid, that is, the
secondary nodes of substations as an important component for monitoring and
controlling the distribution grid status. By implementing an open, interoperable,
extendable and modular platform in the intelligent and secure grid, electricity companies
may benefit from analysing demand and make the corresponding decisions.
This development allows for monitoring and measuring the demand for electricity and
will serve as a control system for autonomous, remote-controlled decision making.
REDES2025 Project
Development of technological solutions for Spains Electricity Grid of 2025
The unique and strategic REDES2025 Project, based on the vision and agenda of the
FUTURED technological platform, has as its main objective the design, definition and
development of technological solutions which make possible this vision by approaching,
on the one hand, applications based on electronics associated with power, energy storage
and superconductivity, and on another hand, tools for integrating distributed energy
resources within the grid and for information management of the electricity grid of the
future.
Regarding electricity grid information management, the main achievement has
been the obtention of an initial version of the objective architecture and functional
specifications as well as a plan for its practical implementation at Iberdrola Distribucin
facilities. This includes the relations between installations with engineering, control and
corporate inventory systems by defining a shared data model which permits transparent
access between these and the SCADA at the substation.
In this period, the impact of these definitions is already visible in the substation
engineering tool iSAS@Works, currently under development, and different changes
made to corporate data models, specifically in the inventory of protections and Iberdrola
Distribucin equipment.
This project intends to demonstrate how it is possible to evolve from a conventional
electric company toward an architecture which achieves maximum profitability of these
capabilities. As real evidence, we expect to achieve, upon the termination of the project,
a practical implementation within Iberdrola Distribucin through which, working
mainly on interphases and data models and integrating a series of developments within
company systems, we may evaluate its functionality and extrapolate the experience to
other electricity companies.
71
PROjECTS
SMARTSYS Project
New grid control system
The main goal of this project is to develop a new control system to act as the power
distribution grids brain. The results of this project seek to lay down the bases upon
which the future smart grids will rest, thereby converting the Spanish system
LV GRID AUTOMATION project

The goal of this project is to provide a system for testing of the LV grid which may
demonstrate the capacity for making changes in the grid remotely using PLC (Power Line
Communications) and obtaining indicators on statuses and alarms.
Distributed generation
FENIX Project
Design and development of a large-scale virtual power plant for
integrating distributed and renewable energy resources within the
eclectic system
FENIX (Flexible Electricity Networks to Integrate the eXpected energy evolution) is
an integrated project, part of the VI European Union Framework Programme, led by
IBERDROLA. Its goal is to achieve that the distributed generation evolves from passive to
active generation, contributing to power grid functioning and thereby assuming a role
which is similar and complementary to that of centralised generation: providing support
to grids through its contribution of reactive power and voltage control, contributing
reserve active power when required by the system, and helping to resolve grid overload.
The main objective of this project is to design and develop a large-scale virtual power
plant that will be able to integrate the distributed energy resources within the electricity
grid, so that they may be managed by a decentralised control system and thus cover grid
requirements in terms of maintaining safety.
The execution of the tasks has allowed for fulfilling the following objectives:
Final evaluation of the FENIX BOX and development of the control software.
New hardware and software components have been designed which allow for
the large-scale integration of distributed energy resources, following the FENIX
vision. This has resulted in a set of tools which combine already existing and new
solutions in order to provide support for the real implementation of the virtual
power plant concept.
Demonstrations/validations have been carried out in real settings. Tests
corresponding to the southern setting were executed at IBERDROLA installations
with grid units in lava, with successful design, modelling and validation.
MICRO-DG Project
Development and integration of power microgrids within the
distribution grid
The project seeks to contribute toward the transition from the actual situation - a
power distribution grid with very few distributed energy resources, basically connected
to LV grids and without power system operator control - to a situation in which the
penetration of distributed resources as a source of generation is high and that the
operation of the same is through coordinated microgrids, understood as VPP (Virtual
Power Plants). The inclusion of these microgrids will imply a great virtual generation
plant manageable by the distribution system operator or, when applicable, the
transmission system operator.
Based upon the aforementioned premises, the projects declared main objective is the
development of new projects, equipment and systems that allow for advancing toward LV
power microgrids integrated within the power distribution grid so that these may help
sustain the power system as the demand for both power quantity and quality increases.
Likewise, it is necessary to carry out real experiences with microgrids to prove the
viability of both the analyses done in advance as well as the developments targeted as the
main objective. Therefore, it is also a goal of the overall project to create microgrids for
different demand scenarios and power distribution grid conditions: high concentration of
offices with a good distribution grid, rural with a weak distribution grid, and residential
in recently developed semi-rural areas.
GROW-DERS Project
GROW-DERS (Grid Reliability and Operability With Distributed generation
using flexible Storage)
Systems for storing electricity are required to provide the means with which to
overcome technical and financial obstacles for the large-scale introduction of distributed
and sustainable energy sources. The costs of different storage-related technologies have
decreased over the last five years, thus advancing the viability of introducing power
storage systems. However, ignorance of the techniques and lack of trust and uncertainty
as to costs and benefits result in withdrawal by the end users (companies and investors).
GROW-DERS offers a solution through the use of flexible storage systems, possible
thanks to new advances in power electronics. This innovative demonstration project
will enable the acquisition of operational experience and will prove the technical and
financial viability of storage systems, evaluating three different storage systems and a
combination of these, with a technical-financial analysis tool which includes intelligent
prediction software.
73
PROjECTS
H2SAI Project
Development of an uninterruptible power supply (SAI) for repeater
stations having access based on hydrogen batteries
The objective of this project is to develop an auxiliary uninterruptible power supply
system which guarantees electric power supply to repeater stations accessing the
communications network for remote control and remote metering of the power grid.
Some of the objectives reached have been:
Analysis and identification of the optimal characteristics and parameters for the
environmentally responsible power supply of direct current power required for
operating low-consumption repeater stations.
Study of the different components for production and storage of hydrogen
(electrolyser and storage system using metallic hydride, methanol reformers, etc.).
Analysis of electric power generation through low-pressure, modular fuel cells of
the PEM (Proton Exchange Membrane) type.
Equipping of access stations with a significant autonomy, depending on their
required electric power.
MANTIS Project
MANTIS (Managing Active Networks Through Intelligent Systems)
This project intends to demonstrate the development and integration of key
technologies, incorporate innovative grid control systems and protection mechanisms,
and facilitate a better acceptance of distributed generation.
The project covers those scenarios in which fault currents are the greatest obstacle to
the implementation of distributed generation.
The benefits obtained through the execution of this project have been:
Development of techniques which assure functioning through islanding or
interconnection, including the disconnection of charges.
Capacity for overcoming failures through the control done by limiting devices of
fault currents.
Availability of tested technologies which allow for anticipating the levels in order
to apply distributed generation.
Achievement of the ability to allow a greater penetration of generated
distribution without requiring costly grid reinforcement.
Demand management
GAD Project
Active demand management
The ultimate goal of the GAD (Active Management of Demand) project is to optimise
the way in which electric power is consumed, and thus the cost associated with this
consumption, while at the same time satisfying consumer needs by offering the same
quality.
For this, it centres on researching and standardising diverse consumer patterns so that
it is possible to provide end users with determined signals which, in an automated or
intelligent manner, allow them to freely make decisions based on prices, energy source,
environmental impact, comfort, etc. These actions aim to optimise the way of consuming
electric power first through identifying different types of charges, customers and grids,
and then subsequently through developing control algorithms for actively managing the
demand and its integration with distributed generation.
ADDRESS Project
Active distribution grids with full integration of demand and distributed
energy resources
The main objective of this project resides in researching, developing and testing in real
settings new technologies and processes which increase the use of distributed energy
and of renewable energy resources, establishing a new relationship between customers,
generators and operators of the grid.
This project seeks to develop new, innovative technologies for active distribution
grids, making possible an equilibrium of the generation of energy and the demand in
real time, allowing grid operators, consumers, retailers and other implicated parties to
benefit from the increased flexibility throughout the entire system. The innovative use
of communications, automation and domestic technologies will be combined with new
mechanisms and commercial algorithms, providing active distribution grids with lowcost, safe solutions.
SMART COUNTER GO-EARLY Initiative

The British Government announced in 2008 that all old natural gas and
electricity meters at homes in the United Kingdom would be replaced with
smart meters by 2020
Smart meters for natural gas and electricity are the base for a safe and bidirectional
information system between SCOTTISHPOWER and consumers. The precision with which
information is collected by smart meters will help to manage the demand for power and
optimise the energy chain. Finally, they may help all of the United Kingdom use energy
more efficiently, helping the Government fulfil its objective of reducing carbon emissions
by 20% by the year 2020. It is another step toward a greener future, and a programme
was successfully initiated with the launch of smart meters in July 2010, with the goal
of installing 30,000 smart meters at 17,000 customer installations, both residential and
commercial, by December 2010.
Part of the proposal for improvement for customers using a smart meter is the
possibility to know their consumption of natural gas and electricity on-line, in addition
to being able to establish weekly or monthly energy consumption goals through the
Smart Energy Trackers. Through this advanced technology, homes may monitor their
own energy consumption and, for the first time, understand both the financial as well as
environmental costs of their actions.
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PROjECTS
UNIFI Project
Residential centre for consumption measurement and product
management
SCOTTISHPOWER has launched UNIFI, a system which allows customers to manage
their energy consumption at home and control their electrical appliances from anywhere,
even over the telephone. The soul of UNIFI is a transmitter which registers the amount
of total electricity consumption in the home, and how much particular appliances
connected to several specific plugs of the system (the Uniplugs) consume. The customer
may follow-up on this information almost in real time through three channels: a small
monitor installed on the wall at home (very similar to those of thermostats), their private
area in the UNIFI website, or an application which SCOTTISHPOWER has developed for
iPhone.
UNIFI offers the user measures for using energy more efficiently and helps users
understand (and, if required, modify) their consumption habits and know which electrical
appliances consume the most energy. In addition, users may programme, turn on and
turn off from outside the home those appliances which are connected to the Uniplugs.
In summary, this innovative system allows customers to:
Monitor from outside the home and almost in real time their energy
consumption, in addition to setting goals for reducing it.
Check via iPhone or Internet how much a specific electrical appliance consumes.
Programme schedules so that specific appliances turn on and off at
predetermined times when one is away from home.
Generate warnings if an electrical appliance remains on or in stand-bymode.

Compare ones energy consumption with that of a determined period of
preceding days, weeks or months.
This idea, given its design and added value, has been recognised with the Best
Improvement Project at the IQPC Process Excellence Conference, one of the most
prestigious conferences within this field.
Asset management
WORK ORDER MANAGEMENT Project
Design and development of a technological platform for real-time
management of maintenance work orders and incidences in the power
distribution grid
The WORK ORDER MANAGEMENT Project is born with the goal of developing a
technological platform which optimises mobility, generating an advanced connectivity
between field crews and the operation centres, in order to manage distribution-related
works orders in an integrated manner.
The initial idea behind this new management platform is for it to manage, in addition
to scheduled work orders, unscheduled work orders generated by incidences or
breakdowns in the electricity grid through the introduction of on-line communications,
thus implying a new mobility model which improves communications and, therefore,
relationships between field crews and distributed operation centres, optimising all
activities related with the resolution of incidences and breakdowns in the electricity grid.
Its objectives include aspects such as quality, efficiency, sustainability and safety.
SIGOR Project
Design and development of a new technological platform for managing
works which integrates new management processes and models for the
power distribution business
The main objective of this project is to develop a new integral management system
for works capable of responding to the needs of the power distribution sector, which
improves company productivity thanks to greater efficiency in project planning,
monitoring and follow-up along all stages from initial proposal presentation through to
project completion.
AURA-NMS Project
AURA-NMS Autonomous Regional Active Network Management System
The goal of this project is to create a control structure and define a series of control
algorithms which optimise the distribution grid and improve service provided by the
grid operator at generation and consumption points, improving grid performance (use of
assets, etc.).
In general, its development is focused on the following areas:
Distributed generation.
Management of the demand to facilitate the connection between the distributed
generation and the grid.
Development of a controller to monitor power grids, isolate faults quickly and
allow for the distributed generation to remain connected and in operation.
It is expected that the following milestones will be achieved upon completion of the
project:
Reduction of grid losses, thanks to the proximity between generation and
consumption points.
Improvement in supply quality and safety.

Enhancement of the grids capacity for recovery.
Reduction of actual deficiencies in the market to increase the capacity of the grid
toward distributed generation.
SMART BUILDINGS Initiative

Smart Buildings is an innovative initiative which brings together technologies used
in smart buildings and telecommunications and computer services which allow for
optimising the building management system through an innovative diagnosis and
fault analysis tools. The optimisation of the building management system will result in
energy saving and a reduction of carbon emissions derived of heating, cooling and air
conditioning equipment. This 5-year project seeks to reduce energy consumption at
different SCOTTISHPOWER facilities in the United Kingdom by up to 30%.
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PROjECTS
THERMAL MODELLING AND ACTIVE GRID MANAGEMENT Project

This project intends to optimise grid design, operation and control through the
implementation of dynamic factors for circuit evaluation. This collaboration between
SCOTTISHPOWER, University of Durham, Areva, PB Power and Infoterra, has the goal of
exploring potential benefits derived of a better use of power system assets through real
time knowledge of its thermal condition and the development of an active controller
to facilitate this type of exploitation and balance out the issues which require the
intervention of operations personnel with those which may be treated through artificial
intelligence. The developed solution defines the thermal condition of the energy systems
key components by using physical methods of measurement (wind speed and direction,
ambient temperature, solar impact and measurements of system voltage and current)
and prediction techniques. This information provides the basis for calculations used to
classify circuits in real time.
Automation
CRISLIDA Project
Convergence of intelligent and secure networks for electrical applications,
innovating in environmental design
The overall goal of this project is to carry out strategic research in the field of
secondary electric power distribution to obtain multi-disciplinary knowledge that allows
for developing a new concept for a MV grid toward 2015.
This power distribution grid of the future will provide increased safety for persons and
property, lower environmental impact, and higher safety and quality of the power supply,
all of this while considering the regulatory framework and competitiveness within which
the power distribution activity is carried out.
Some of the objectives reached are as follows:
The algorithms to be used as the basis for the computer application for the
calculation of grounding have been developed, and work has started on
developing a computer application which will allow for the calculation of
grounding necessary for a specific Transformer Station (TS).
Simulation tests have been completed to study the minimisation of fire-related
risks.
Regarding operation and maintenance systems for the transformer stations,
a tool has been created for maintenance management and occupational risk
prevention.
Concerning tasks on the modelling of electromagnetic fields, a methodology has
been defined for the optimal design of transformer stations from the perspective
of electromagnetic fields.
As to the eco-design and evaluation of environmental impact of the transformer
stations, design scenarios for these centres have been formulated, implementing
the diverse improvements identified in the results obtained from analyses of the
life cycle and evaluation of recyclability carried out at a representative number of
centres.
Through the research on new typology models for electricity distribution grids,
an operative grid model has been obtained, which integrates both the MV part as
well as the associated LV part.
For new concepts of automation, remote management and communications
systems, models of adaptable electronic circuits for research on diagnosis-related
applications using on-line detection of partial discharges have been developed,
and the algorithm for calculating the hottest point has been elaborated.
ENDS Project
Design and development of an integrated system for measurement,
connectivity and traceability of LV grid digitisation
The main purpose of this project is to develop an innovative system for receiving and
transmitting data related with measurement, connectivity and traceability of the LV
grid. With this, the goal is to make possible the future complete digitisation of the grid,
making the process viable in technical and financial terms by substantially reducing the
time and equipment required and allowing for the capture of new parameters which
increase the quality of the digitisation obtained.
In-depth knowledge of the electricity grid enables the correct installation of smart
meters.
The development of this project will result in a new system for receiving and
transmitting data which will be capable of identifying and tracing the cable in both
directions (transformer to customer and vice versa), capturing all data on connectivity
and traceability of all transformer station lines, and geo-referencing the data.
Gas distribution
INNOVATIVE OPERATIONS TECHNOLOGIES FOR SUPPLY COMPANIES Project
This project develops a portfolio of innovative operations technologies for natural gas
through NORTHEAST GAS ASSOCIATION (USA), a regional organisation for collaboration
and financing composed of members from gas supplier companies (amongst these
IBERDROLA USA).
The entities involved provide financial support and technological consulting for new
technologies of supplier companies in the following areas:
Installation, maintenance and repair of pipelines.
Gas pipeline integrity.
Locating pipelines and leaks.
Breakdown prevention.
Real-time detection.
Environment.
A large variety of gas-related tools, codes, regulations and information on operations
result, thereby reducing costs, increasing efficiency and improving safety for both the
public and workers.
OPERATIONS TECHNOLOGIES FOR CUSTOMERS Project

This project develops a portfolio of operations for the end user (customers) of natural
gas through NORTHEAST GAS ASSOCIATION.
The entities involved provide financial support and technological consulting for new
customer-focused technologies in the following areas:
Residential.
Commercial.
Industrial.
Transportation.
Carbon dioxide emissions management.
This project generates a large variety of products, codes, regulations and information
on operations with gas, thereby reducing costs for customers, increasing efficiency,
improving public safety and minimising CO2 emissions.
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PROjECTS
PROjECTS IN ThE AREA OF RENEWABLES

Energy resources
AVANZA WIND SOFTCOMPUTING Project
Predictions and series analysis of wind at wind farms through soft
computing
The project approaches, using soft computing techniques (terms used in computing
which encompasses diverse problem-solving techniques used for managing incomplete
information, with uncertainty or inexactness), a system for predicting wind resources
based upon measurements and the experience of IBERDROLA in wind resource
measurement campaigns.
The goal of this project is to develop a system for long-term prediction of wind
based upon the unsupervised classification of synoptic situations associated to an MCP
(measure-correlate-predict) process improvement system, both applications based upon
the use of soft computing techniques for prediction and series analysis of wind at wind
farms.
The following tasks are carried out through the project:
Analysis of the state of the art.
Treatment of input data.
Design and specification of algorithms.
Implementation, debugging and performance tests.
Development of visual tools.
Validation in real settings.
These tasks will serve to reach the following goals:
Locate pressure-related patterns and their relationship with wind speed
measurements at wind farms.
Obtain a tool which provides reliable clustering of pressures with criteria of wind
series proximity for predicting long-term wind speed and analysing wind farm
production, which may be applicable to studies on the suitability of installing
new wind farms or as a powerful analytic system.
Optimise MCP processes at wind power installation to improve their
management.
Integration within the grid

TWENTIES Project
Demonstration of new technologies for integrating wind energy within
the grid
The TWENTIES Project is the response to a concern of the European Union to help
achieve the fulfilment of the 20-20-20 objectives. To this end, the European Union,
through the VII Framework Programme, launched a call for demonstration projects,
seeking the massive integration of renewable energies within the grid (considering,
mainly, wind power), without this affecting grid stability. The TWENTIES Project
englobes 26 European partners (national grid operators, large wind power operators,
manufacturers, technology centres and universities) and has designed 6 large
demonstrations which intend to show that wind power is part of the future energyrelated solution, that it may assume an active participation in grid management, and that
tools exist which allow for its efficient and intelligent management.
Iberdrola Renovables has led one of the demonstrations, which seeks to demonstrate:
That wind energy may be regulated through reactive-voltage and frequencypower control systems.
- That this control may be effectuated at the levels of wind turbine, wind farm,
group of parks, and large areas under regulation.
- That wind power may be an active agent in the control of grid stability.
In addition, it participates in transversal work groups through which general indicators
and specifications are defined, as well as in drafting of the projects conclusions, largescale replicability and dissemination.
-
WINDCORE Project
Technology for defining control centres in different settings of renewable
energy generation
The purpose of this project is the design and development of a new control and
management architecture for renewable energy, whether wind power, solar or hydraulic,
through the design of a basic integrated tool which permits centralised control,
impacting the grid in real time for any setting which uses renewable energy generation,
to include:
Communications protocols and elements integrated within the high capacity,
expandable and programmable SCADA system through the use of databases and
interfaces, both through graphics and communications, based on technologies
oriented toward objects and hierarchical structures.
Control and management algorithms for operations at large-scale renewable
energy generation facilities.
We have been able to obtain a highly configurable technology which allows for
managing renewable energy facilities:
Closed environment or web service.
Integrable options (alarms, protocols, interfaces, etc.).
Control algorithms (automated generation control, generation quality control,
etc.).
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PROjECTS
Solar thermal
GDV Project
Direct steam generation in cylindrical parabolic collectors
The GDV (Direct Steam Generation) project seeks to design, build and evaluate an
innovative solar thermoelectric plant with cylindrical parabolic collectors and direct
steam generation in the field of solar energy.
This direct steam generation, known as the GDV process, will allow for the elimination
of thermal oil used actually as the working fluid at solar thermoelectric plants with
cylindrical parabolic collectors.
The development of this project is the natural continuation of the DISS (Direct Solar
Steam - 1996-2001) and INDITEP (Integration of the Direct Steam Generation Technology
for Electricity Production - 2002-2005) projects carried out at the Almera Solar Platform.
THERMOSOLAR Project
Viability of technologies for thermosolar generation
The objective of this project is to carry out a technical-financial analysis of the different
thermosolar generation technologies in order to overcome the current limitations of
these plants and to achieve a return on implementation and maintenance costs:
Different models of solar concentration (cylindrical parabolic concentrator, linear
Fresnel reflectors, tower technology).
Storage-related possibilities (thermal storage in tanks with molten salt).
Direct steam generation.
Management system for materials based upon a single database.
Amongst the results obtained to date are worth highlighting:
Basic designs for:
o Plants with tower technology.

o GDV plants.
o Fresnel plants.
o Thermal storage systems.
Technical-financial evaluation of the former and proposals for improvement.
Biomass
LIGNOCROP Project
Research on crops as fuel
The main objective of this project pursues the promotion of a national market for
biomass, based upon an exhaustive knowledge of the complete process entailing the
implementation, monitoring and exploitation of energy crops in Spain, and through
the definition of those which are most appropriate and have the greatest energy-related
potential, as well as the definition and development of conditions to be fulfilled in
technical, financial and environmental terms to facilitate its sustainable implementation
in Spain.
Offshore
INNPACTO EMERGE Project
Research and development of a system for offshore wind power
generation in deep waters
The INNPACTO EMERGE Project emerges as a continuation of the activity begun with
the EMERGE Project of Strategic Importance. This project represents the initial steps
taken to generate knowledge for the development of floating technology which allows
for installing and operating wind power in deep waters.
The primary purpose of the INNPACTO EMERGE project is to generate the knowledge
and develop the technology needed to extend and lead the construction of offshore wind
farms in deep waters.
The project has been divided into 4 large activities:
Design of a wind turbine for floating technology.
Development of a model for the floating supports.
Definition of wind turbine-platform interaction.
Development of the electrical engineering for connecting the plant with the
coast.
These activities will focus their developments on achieving the following specific
objectives:
Development of the design for wind turbine floating supports, and the evaluation
of their feasibility.
Design and development of a new wind turbine model that meets the operating
conditions and specifications required for operating at offshore installations in
deep waters.
Study and development of the electrical engineering associated with offshore
wind power generation in deep waters.
Study of the possible environmental impact of each of the various elements of a
floating wind farm - support, wind turbine and electrical connection - upon their
surroundings. The impact of environmental factors on the sites selection and
characterisation must be established in relation to each of these three elements.
Development of the technology for integrating the wind turbine and the floating
support to fulfil the various operation conditions and specifications required for
operating in offshore installations in deep waters.
Development of a prototype as a result of the developed designs and defined
specifications to enable the development of various trial and test stages that will
result in the validation of the prototype developed.
Obtention of significant environmental and energy benefits by developing a
technology which is fundamental in advancing wind power generation, one of
the renewable resources that can most decidedly help to achieve the energy
targets set for Spain and the European Union.
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PROjECTS
FLOTTEK Project
Development of infrastructures for offshore wind power in deep waters
The goal is to design the different components for offshore sites (>40m), such as
steel and concrete floating infrastructures, infrastructures for building, operations and
maintenance and for power transmission (cables and switchgear).
The main objectives of this project are as follows:
To analyse and correctly classify waves and currents at marine sites at which to
situate an offshore wind farm for the generation of wind power along the Basque
coast.
To complete the design of a floating steel structure for supporting a wind
turbine for deep waters, where foundations upon the seabed are not viable.
The design will be made on the basis of the results of other project tasks (site
selection, planning of an offshore wind farm, the oceanographic-meteorological
characteristics of the area, etc.) as well as information on the wind turbine and
the loads which the structure must support. The final objective of this task is to
build a full-scale prototype and perform channel tests to validate the models used
during the design phase.
To study the viability and development of a floating concrete structure for
supporting a wind turbine for deep waters. This platform must provide the
conditions of naval floatability and stability required for the correct operations
of the generator, given the sites weather conditions. All of the above leads to the
need for researching special, very high durability concretes, having high physical
permeability and elevated chemical resistance unto chlorides and sulphates,
with the necessary study of compatible cements with the necessary prestress and
durability.
To develop a complete infrastructure for the generation and transmission of
the same so that society may have available the obtained electric power under
optimal conditions of competitiveness and sustainability.
This project intends to research and seek, considering the new infrastructure and
logistics created, those synergies which allow these new offshore installations to
be compatible with new, complementary uses of energy. Of special interest is the
exploitation of energy from other natural resources available in the area of the
installed offshore floating wind turbines, such as those associated with the energy
of marine currents and waves, which at the moment are scarcely exploited power
resources. Other possible uses of the installations include activities related with
aquaculture.
Marine, photovoltaic and other sources of energy

ORCADIAN Project
Demonstration project of PELAMIS second-generation technology
The ORCADIAN project, carried out in collaboration with E-ON, has as its objective
the construction and start-up of a second-generation Pelamis device at the Orkeney Isles
north of Scotland, at the European Marine Energy Centre. This new device will measure
an additional 50 meters in length over the first-generation device, and with a converter
efficiency higher than that of its predecessors.
To date, the results achieved consist in a device currently under construction, with an
expected deployment date of summer 2011.
OCEAN LEADER Project

Leaders in ocean renewable energies
This project aims to generate and create the knowledge and technologies required to
efficiently and comprehensively exploit ocean renewable energies (wave energy, current
energy and hybrid systems: wave/wind power and current/wind power).
This will allow for the development of new facilities, devices, structures, vehicles, boats
and systems for classifying sites as well as methodologies for generation, distribution and
transmission of the electric power captured in the oceans, which facilitate its sustainable
use and the implementation of intelligent management and exploitation models for
these energy sources, preserving the marine environment and the safety of human life at
sea.
The following results have been obtained:
Knowledge on the energy potential of different installations and their viability, as
well as analyses of resources, distribution and transmission methodologies, and
environmental impacts, amongst others.
New designs of devices used for exploitation.
New designs of elements for the installation of devices.
Modelling tools.
Resource atlas.
Tools for maintenance of facilities.
Methodologies for installation.
Specifications for electric transmission elements (dynamic cables, connectors).
Environmental modelling systems.
Prediction of wind production

METEOFLOW Project
Development of a mid and long-term prediction system for generating
wind and thermosolar power
This project is a response to the need for having a forecast on production available
in order to participate in the electricity spot market. The main goal of this project is to
develop an integrated system for predicting the generation of renewable power (wind
and solar) which allows for obtaining reliable predictions in the mid and long-term at
different national and international sites.
Specifically, over the last year work has been done to achieve the following results:
To create a mid-term (16 day) wind power generation prediction system,
independent of the 10-day prediction currently available.
To create a long-term (31 day) wind power generation prediction system,
independent of the 10-day prediction currently available.
To adapt the METEOFLOW prediction system to wind farms exploited in Hungary.

To develop a valid system for predicting the power of a thermosolar plant.
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PROjECTS
PROjECTS IN ThE AREA OF ThE ENVIRONMENT

COEBEN Project
Research and development of a new fuel system, optimised for scenarios
of low emissions of NOx at carbon thermal plants
This project approaches the design and development of a new system which permits
operations at the plant under conditions of ultra low emission of NOX (200 mg/Nm3),
through highly innovative, advanced technologies for reducing NOX.
Based on a thorough study of the characteristics of an arc boiler, the different actions
to be carried out in the home are identified and defined, evaluating the technical
characteristics and specific monitoring needs, and achieving the design and development
of new elements which allow for a better distribution of temperature within the home
and a reduction of the NOX generated by the boiler, without prejudice to the remaining
operating parameters.
The results obtained have been as follows:
Definition and analysis of gas concentrations and temperatures in the area of the
furnace arc and in convective banks of pulverised coal arc burners, taking as an
example the boiler at Group 2 of the Velilla Thermal Plant, facility at which the
pilot experience will take place later.
Identification and definition of the specifications for the equipment required for
the projects optimal development.
Thermal and fluid dynamic modelling through advanced simulation programmes
and their subsequent validation.
Adaptation and adjustment of the existing installation at which the pilot
experience and validation testing will take place.
Definition, incorporation and validation of the materials and equipment needed

for introduction to the furnace through TRIAL-ERROR techniques.
Optimisation of the new system through the necessary adjustments until the
definitive design is obtained.
ZEBRA MUSSEL Project

Research on the life cycle of the zebra mussel and development of a
methodology for its prevention and control at power generation plants
The main goal of this project is to ddevelop a methodology for preventing and
controlling its condition based upon an early detection of its larval stages for the purpose
of avoiding its binding and proliferation at electric power plant facilities.
Amongst the specific objectives of the project we highlight the following:
Research on the biological cycle of the zebra mussel.
Study of physical-chemical techniques for the biological control of this species.
Development of a methodology for prevention and control.
Pilot experience and final validation.
BURNER Project
Research and development of new NOX reduction systems for burners in
conventional coal-fired plants
The main objective of this project is to design and develop new systems for reducing
NOX emissions at conventional coal-fired plants to achieve reductions of 50%, through a
better stratification of fuel, without prejudice to other limiting parameters, as well as to
control and optimise the combustion process.
To date, the following milestones have been achieved:
Development of a series of technology-related actions for burners and other
elements of the furnace at electric power plants for the purpose of obtaining an
even greater reduction of NOX emissions.
Design and development of all of the new elements and modifications required
for the rest of the elements of the furnace to achieve a better stratification of
the combustion and reduction of NOX, on the basis of advanced techniques for
simulation of fluid dynamics and computing.
Validation of new systems for reducing NOX through a pilot experience at the
Velilla 2 thermal plant.
Adjustment of the thermal plant fuel control system to optimise long-term
operations.
TURBISIN Project
Research and development of new hydraulic turbine elements to prevent
the dumping of lubricants
This project consists of developing new elements for conventional oil-lubricated
hydraulic turbines, with the aim of making them function in both dry conditions and
submerged in water, without alterating the original systems functions or operating and
productive conditions.
This eliminates the need for lubrication with oil and the consequent risk of accidental
spills of lubricants into rivers, thus reducing the environmental impact derived of their
activity and improving the overall efficiency of the process.
In order to reach the objectives, the following results have been obtained:
The development of the project has eliminated 2,300 litres of lubricant oil and
has increased turbine performance.
Development of new elements for conventional oil-lubricated hydraulic turbines,
with the aim of making them function in both dry conditions and submerged
in water, without alterating the original systems functions or operating and
productive conditions.
The experience and knowledge acquired through this project allows for
implementing these solutions at other IBERDROLA turbines.
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PROjECTS
PASODOBLE Project
Development of a design and modelling tool for new overhead power
lines and infrastructures
The objective of this project is to develop an innovative design and modelling system of
new HV and MV overhead lines that minimises impact on both the environment as well
as historical and socioeconomic patrimony. The planned information system integrates
within a single tool all of the characteristics available to electricity transmission and
distribution companies and which affect overhead lines and the area at which their
installation is foreseen: effects on the technical, legal, socioeconomic, and historical
patrimony environments, as well as water, vegetation and birdlife. At the same time, this
new tool evolves toward a more powerful and advanced cartographical model equipped
with innovative geographical information systems.
The final product of the PASODOBLE R&D Project is a tool for designing and modelling
new HV and MV overhead lines that fully integrates the minimisation of environmental
impact as well as on historical and socioeconomic patrimony. The project allows for
determining not only whether or not the installation may be built, but also provides a
stereoscopic vision of the layout and semi-automatically provides the documentation
required for legal procedures and management as well as for organising the works and
assemblies.
The technological innovation of the product obtained is, for the first time, the
availability of a tool which gathers together legal, socioeconomic, historic, environmental
and technical information of a zone where the installation of overhead lines is planned
(which with slight modifications may be applicable to other linear infrastructures).
REGALIZ Project
Recycling and elimination of gas located at zonal installations
IBERDROLA has as a technical objective the development of a globally innovative
technology for treating decomposition sub products of SF6 (sulphur hexafluoride), one of
the gases which cause the greenhouse effect (its capacity for affecting climate change is
estimated at 23,900 equivalent units of CO2).
The new technology seeks to allow for the decontamination of LV and MV switchgear
equipment at the end of their useful life. Thus, treating and recovering SF6 would allow
for its reuse in new equipment, thus reducing this gass environmental effects.
The goal is to achieve a thermal process for achieving, at the same time, high efficiency
and a substantial reduction in equipment decontamination and treatment-related costs.
Through this project, for the first time research is to be done on SF6 and its sub
products, applied to MV and HV electrical equipment.
LEO Project
Optimisation of the use of lubricant oils in gearboxes
The purpose of the LEO Project is to carry out a comparative study of different
gearbox lubrication oils. This experience will result in the identification of the most
adequate type of oil for use in wind turbines. The ultimate aim of this study is to
maximise the oil use cycle without prejudice to its lubricating properties. This allows
for optimising replacement operations and the handling of lesser oil quantities, thus
resulting in a lowering of operating costs and associated environmental risks.
DEPOLIGEN Project
Energy efficiency in zero-emission buildings through the improvement
of power-related demand, poly-generation and integrated management
This project aims to research and develop technologies which allow for obtaining
zero-emission buildings, districts and residential neighbourhoods, or within the tertiary
sector. The development of new systems for reducing the demand for energy in buildings,
new systems for poly-generation integrating high-efficiency and low-impact (geothermal,
gas, hydrogen) and renewable energies (solar photovoltaic and thermal, mini-wind and
biomass) and new systems for integral demand management will result.
Main activities:
Improvement of the power-related demand in buildings and installations at
urban settings through an energy-focused analysis of the design of buildings and
their surroundings.
Poly-generation of energy with the integration of renewable energy sources,
geothermal, gas and hydrogen, attending to global microgrid use.
Integrated management of installations, buildings and urban areas.
UROGALLO Project
Urgent actions for the conservation of the capercaillie and its habitat at
the Cantabrian Mountains
The main objective of this project is to decrease the drastic reduction of the native
subspecies of the Cantabrian capercaillie in order to achieve its recovery.
The objectives of this project are:
Improvement of the capercaillies habitat.
Control of predators and competitors which threaten the capercaillies survival.
Availability of a preserve for capercaillies in captivity.
To achieve the compatibility between traditional practices and the conservation
of the species.
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PROjECTS
PROjECTS IN ThE AREA OF SAFETY

VULCANO Project
Development of a methodology for the prevention and evaluation of the
risk of fire in areas surrounding power and railway lines
The main objective of this project is to develop a methodology for evaluating and
preventing fire-related risks and conflicts between power and railway lines and their
surroundings in order to minimise their interaction with the environment, through the
ongoing assessment of the grids over the different phases of power line and railway
service life, from design to scrapping.
ARGOS Project
Research and development of safety applications for industry to reduce
exposure to electromagnetic fields at electrical installations
The main goal of this project consists of researching, designing and developing new
applications for electric power distribution and transmission infrastructures, mainly for
LV and MV, which allow for minimising environmental and occupational exposure to
electromagnetic fields, making these safer infrastructures for persons, environmentally
friendly, lasting and sustainable; on another hand, significantly improving grids by
providing higher power supply quality.
e-PREVENTION Project
Smart e-prevention platform
The main objective of this project is to develop an advanced, smart e-prevention
platform based upon ideas and concepts taken from e-learning methodologies as well as
methodologies associated with this field, to provide services related with occupational
risk prevention as well as for training users on hazardous situations and how to respond
to these, and for all situations which allow for preventing accidents at the workplace.
This project seeks to achieve a safety culture, through a safer behaviour amongst
all persons involved in industrial processes, improving their safety-related knowledge,
abilities and conduct through education and training.
The results achieved have been:
Design of the specifications for requirements.
Definition of the initial profiles, including features inherent to measurementrelated activities themselves.
SUARO Project
Integrated, dynamic management of risks at electrical installations
The goal is to provide a solution for the weaknesses and gaps in the area of safety
present in current electrical infrastructures, all of this while considering the regulatory
framework and competitiveness within which power distribution activity is carried out.
In order to carry out this research for developing future distribution grids, the
following strategic objectives are planned:
To increase safety at electric installations by minimising the risks of MV and
LV electrical infrastructures (electric substations, transformer stations and
centralisation of meters) and through the use of reliable preventive techniques
during their design and construction to account for failure modes, effects and
criticality over the installations entire life cycle.
Development of new products (electric substations, transformer stations and
centralisation of meters) with advanced safety features (early detection and selfdiagnosis; low fire load and generation of fumes and toxic gases; integrity and
isolation for controlling emergencies and reuse and industrialisation of structural
systems).
INTEG-RISK Project
Initial detection, monitoring and integrated management of emerging
technological risks
The purpose of the INTEG-RISK European project is to improve management of
emerging risks. It focuses on emerging risks associated with new technologies (for
example, CO2 capture), new materials and products (for example, risk management of
materials used in nanotechnology), new production systems (for example, subcontracting
of critical tasks in high-risk sectors) and regulations.
It also seeks to develop and validate an innovative methodology for the management
of emerging risks associated with the implementation of European legislation applicable
to small and medium enterprises and its application to companies of the renewable
energies sector (wind and photovoltaic).
91
PROjECTS
PROjECTS IN ThE AREA OF ENERGY STORAGE

ALIA2 Project
Storage of Li-ion for advanced applications
The general goal of this project is to develop a storage system composed of a Li-ion
battery, power electronics converter and associated control system.
Following this general idea, the project proposes the following applications:
Power distribution grid systems: these storage systems, along with power
converters, associated management and communications devices, may offer
features aimed at improving the integration of renewable generation systems
installed locally, as well as for optimally managing power generation, distribution
and consumption. As these become mass-installed, these devices may become a
genuine virtual storage system which renders services for both the grid and its
customers/users.
Black-Start application at generation plants: The development of a storage system
based on Li-ion batteries is motivated by the search for alternatives to the current
Black-Start system (diesel generators). Greater simplicity of assembly, lower costs
and higher supply guarantees are required for the start-up of generation plants,
as well as greater ease and speed of this task, especially in critical situations, such
as zero power.
SAGER Project
Large-scale energy storage systems for the electricity grid
A large-scale storage system is to be developed, based upon electrochemical agents and
compressed air energy storage (CAES) in artificial caverns.
This main objective is broken down into the following strategic objectives:
Analysis of the market potential for storage systems. To this end, an in-depth
study will be done of the different electrical power storage-related requirements
not only at present but also in the future, considering the operations criteria of
the electric system and legislation both in effect and under development.
Development of energy storage technologies, designed for responding to
detected needs:
o Electrochemical storage systems.

o CAES in artificial caverns.
In addition, an analysis of business models for exploiting the energy storage
systems will be completed. This study will consider both initial markets,
fundamental for the early development of the industry, as well as future markets,
which are highly promising.
Also, this project seeks to develop the technologies needed to correctly connect,
integrate and operate the storage systems with the electricity grid.
CAES Project
CAES (Compressed Air Energy Storage)
The goal of this project is to build a compressed air energy storage plant between
110MW and 180MW next to a gas storage site. It is expected that this R&D project will be
executed in three phases.
Phase 1: a final design is to be developed, including the capital investments and
financing required based upon the definitive design and updates of forecasts
regarding energy market resources. Also will be done a characterisation of a
salt silo for air storage, a draft of permissions and environmental exposure,
and a NYISO (New York Independent System Operator) draft for classifying the
interconnections. Phase 1 will be finished toward the end of 2011.
Phase 2: the construction of the plant with the goal of its commissioning toward
the end of 2014.
Phase 3: includes the commercial demonstrations, tests, presentation of reports
during a period of two years after the commissioning of the plant.
PROjECTS IN ThE AREA OF ICTS

BACKUP DATA PROCESSING CENTRE (DPC) Project
Data backup system for data of high criticality
The goal of this project is to equip the DPC with backup having properties of a hot
backup centre for systems catalogued as highly critical, by adopting systems for the
permanent copying of data onto the hard drive and magnetic tape between both primary
and backup centres.
To this end, systems have been developed for the continuous line transmission and
control of data, and the reception of complete images consisting of data copies, to the
backup DPC. A contingency plan has been updated with new procedures for recovering
and activating the hardware infrastructure required to make possible the reset and
exploitation of critical services, reducing data losses as well as their recovery times.
Last of all, the capacity of IBERDROLA informational system processing has been
optimised by transferring the exploitation of non-production services to this new centre.
The technological challenges fulfilled through this project have been:
Data Replication/Recovery.
Separation of environments.
Obtention of a copy (online asynchronous) consisting of applications in the
backup DPC.
93
PROjECTS
CONOP Project
Integrated technical management systems
This project consists of unifying tools used by different Iberdrola Generacin
departments for managing quality, environment and occupational risk prevention into a
single Integrated System Platform Quality Environment Prevention platform (PSICAP in
Spanish: Plataforma Sistema Integrado Calidad Ambiente Prevencin). Over 450 users
access this platform from different Generacin centres.
It is composed of several modules:
Non-conformities: provides support for processing non-conformities, corrective
and preventive actions.
Objectives and goals: inclusion of area-specific programmes, objectives, goals
set by management, and derivation toward the centres. Allows for evaluation and
follow-up.
Legal requirements: manages the updating of applicable legal requirements at
different centres and the follow-up of their fulfilment by different organisations.
Design modications: stores, manages and analyses information related
to design modifications made during the implementation, maintenance
and continual improvement of management systems implanted across the
organisations involved.
Hydraulics-related incidences: allows for managing analyses of exploitationrelated incidences emerging from hydraulic generation management.
Functions and managers: manages information related with documentary
control, relationships between standards, manual and documents, records,
functions and managers included in the PSICAP platform.
Evaluation of aspects: manages the identification and evaluation of
environmental aspects, both initial and periodical.
Management review: permits for the automation of chapters included in the

management review.
This application is developed using Microsoft .NET technology.
SIOGAS Project
Information management system for gas-related operations
The purpose of the SIOGAS project is to gather all information related with operations
carried out associated with the gas business, as well as basic information needed for
different functions of the business, from billing to risk management, passing through the
gas balance sheet and its planning systems.
It is also used to manage the needs related with programming and nominating
infrastructures which owners of transmission, regasification and gas storage system
facilities must remit to Enags for correct system planning and operations. Furthermore,
the system provides the data required to report operations related with the exchange,
purchase and sale of the MS-ATR (Secondary Market - Access to Third-Party Platforms)
platform.
The model for billing gas-related operations allows:
To control operations related with ATR, exchanges, purchases and sales, supply
and associated operations, as well as billing of the same.
To settle gas-related operations performed monthly.
The global information system on the procurement market allows for managing
relevant information accessed by gas operations through Enags, publications, CNE
(National Energy Commission), and its own information sources, in order to be able to
issue graphical and numerical reports which improve decision-making within the gas
unit.
SERVER CONSOLIDATION Project

Server consolidation
The main goal of this project is to reduce ownership costs in terms of maintenance,
operations and support, by decreasing the number of servers at SCOTTISHPOWER
and transferring part of these to Spain. All of this in accordance with the following
parameters:
To update and adapt these to the IBERDROLA Group standards.
To optimise the physical space of DPCs.
To remove obsolete applications and servers which derive in very high
maintenance and support-related costs.
To rationalise and consolidate databases and storage, thereby reducing the costs
for licenses and administration.
To improve the use of and control over computer resources.
To increase availability levels of services rendered.
To guarantee platform scalability.
To enable future technological progress.
FIS Project (PHASE I)

FIS (Fully Integrated System)
Within the framework of integrating SCOTTISHPOWER within the IBERDROLA Group,
a systems plan was designed for SCOTTISHPOWER, analysing the situation of support
systems for different business and their associated technological infrastructure.
As a result of these analyses, the main identified impacts were:
Difficulty in providing support for the evolving business model and the growing
client database.
Insufficient operating efficiency due to the quality of the information and the
difficulty of monitoring complete processes.
Lack of agility for facing new business challenges.
As a result, the substitution of a number of significant business systems currently in
use by SCOTTISHPOWER with a new integrated system platform was considered, which
would allow for:
Simplifying the current systems map.
Reducing maintenance, development and operating costs.
Providing an agile response to the evolving business model.
Executing the improvements established by improvement and efficiency
programmes.
The new solution focuses on support for residential customers and small and medium
enterprises. The business processes to be supported are:
Supplier role
a. Marketing
b. Sales and retail catalogue
c. Customer service
d. Billing
e. Debt collection and management
f. Hiring and industrial procedures
Metering
a. Readings
b. Work Orders
95
PROjECTS
The new solution will be integrated within systems currently in use at

SCOTTISHPOWER in the retail sphere (tools for the call centre, analytical marketing tools,
systems for industrial and retail clients, market applications for aggregations, settlements
and other niche-related systems), external systems (banks and means of payment,
industry message exchange systems, prepayment infrastructures, etc.) and other external
systems (financial and trading).
IMPULSO Project
Integrated platform for international business management
This project seeks to develop an adequate integrated platform for companies with a
high level of international development, capable of comprehensive management of all of
its business areas and projects. This platform includes the following applications:
Automated report system.
Design and development of a global financial tool.
Definition of an analytical accounting structure for international offices.
Resource management tool.
Management system for materials based upon a single database.
PROjECTS IN ThE AREA OF ThE ELECTRIC VEhICLE

EPV Project
New urban transportation system based on EPV (Electrical Powered
Vehicles) vehicles integrated in the electricity grid and powered by
renewable energies
The goal of this project is to develop a new solution for energy-efficient urban
transportation based on the use of electrical and hybrid vehicles integrated in the
electricity grid and powered by renewable energies.
The specific objectives pursued by this project are:
To increase the energy-efficiency of urban transportation and decrease
environmental contamination (reduction of CO2 and noise in urban areas)
resulting of the same, creating a new clean and energy-efficient urban
transportation mode, and contributing toward compliance with the European
20-20-20 objectives.
To guarantee the integration of electric vehicles within the smart power
distribution grid.
To optimise the functioning of different key elements which compose the electric
vehicle.
To improve and optimise the operating infrastructure of electric vehicles and
their interaction with the environment and, more specifically, with the electricity
grid.
To assure correct planning for the recharging of vehicles and efficient
incorporation of a determined amount of power from renewable sources.
A thorough, exhaustive analysis has been made of the distribution grid to seek links
with renewable energy generation. In this way, the specifications of two scenarios to be
studied to convert the use of electric vehicles in a more sustainable activity have been
defined. The first is the construction of a large generation farm, away from consumption
points. The second is the installation of a considerable number of small generators close
to consumption points.
GREEN Project
Applied research for the development of technologies for the electric
vehicle in Spain
The GREEN Project centres on research and generation of knowledge required for the
future production and marketing of green vehicles in Spain, basically electric (EV) and plugin hybrids (PHEV).
The objective of the GREEN Project is to research and generate knowledge on key issues
required for producing and marketing green vehicles in Spain, which will allow for lowering
our countrys dependency on petroleum, reduce CO2 emissions from the transportation
sector, favour the penetration of renewable energies, and guarantee the automotive
industrys future and R&D in Spain.
ULCVDT Project
Ultra Low CO2 Vehicle Demonstrator Trial (ULCVDT)
The purpose of this project is to impulse the electrical infrastructures needed for
using these vehicles in Glasgow, where 40 vehicles and their corresponding, associated
recharging points would be put into operation. The vehicle manufacturer Allies Vehicles
participates in collaboration with Glasgow City Council.
The vehicles belong to the fleet of the administration (mostly Glasgow City Hall, but
also those of other public services). As part of the process, the grid infrastructure and
impact on the local electricity grid are being tested. SCOTTISHPOWER will maintain 4
vehicles as part of its fleet for internal use.
MUGIELEC Project
Development of infrastructures and management systems for energy
associated with the electric vehicle
The main goal of this project is to develop all of the necessary systems and equipment
which will allow for optimising the supply of energy for electric vehicles at the different
points of the electricity grid up to the charge point.
This project is framed within the needs which arise, at all levels, in the process of
transitioning from the actual mobility model towards a more sustainable model, passing
through the electrification of transport. Therefore, so that this change will be possible,
it is necessary, in addition to the availability of vehicles, to deploy a grid in advance for
their power supply. At the moment at which there is a considerable deployment of an
electrical fleet, the infrastructures must be available for users in a practically ubiquitous
manner. For this reason, it is necessary to approach this problem from a global
perspective at all points of the electricity distribution grid, and for all usage models, with
regards to recharging vehicles.
Given that the intention is to develop technological solutions under an integrated
focus, and for a market to be exploited when definitive standards have yet to be defined,
the decision has been made to collaborate in the development of systems compatible
with all usage models at all points of the grid.
One of the greatest contributions of this project has been the creation of a framework
for technological collaboration and development in the market between leading
companies of the sector which traditionally, due to being direct competitors, have faced
difficulties in cooperating together. On this occasion, they have come together to reach
the technological objective which drives the project: the development of all of the
necessary systems and equipment which will allow for optimising the supply of power
for electric vehicles, at the different points of the electricity grid up to the charge point.
97
Annexes
ANNEXES
6. ANNEXES
6.1 Innovation Policy
Innovation is a
strategic variable
which affects
all Company
businesses and all
of the activities it
develops
IBERDROLA S.A. INNOVATION POLICY

The Board of Directors of IBERDROLA, S.A. (the Company) focuses Company
innovation toward an increasingly efficient management of available resources
and knowledge, at the same time assuring that the most adequate technologies are
introduced efficiently, generating benefits and competitive advantages for shareholders,
customers and employees.
Innovation is a strategic variable which affects all Company businesses and all of the
activities it develops.
The Company understands innovation as a decentralised and open process.
Decentralised because it is carried out independently within each business unit with
support and coordination provided by the Innovation Department. Open because the
Company considers itself a company that drives technology and, as such, its vocation
is to involve in its own innovation process the technology providers of the Group of
companies of which the parent company, as established by law, is the Company (the
Group), such as universities, technological centres and equipment manufacturers.
Likewise, the Company believes that the innovation process should be standard for all
business units, and to this end, the Innovation Division is responsible for this pooling.
The Company aspires to be a leading company in innovation within the energy
sector, having as the core of its business activity in this field sustainable development,
the promotion of renewable energies and of emerging technologies, always in strict
compliance with legislation in effect as well as other agreements in which the Company
takes part.
The Companys Innovation Policy is based on the following basic principles for action:
1. To practice a culture of innovation that permeates the organisation and develops
working environments that motivate, encourage and reward the generation of ideas
and innovative practices carried out by employees by accepting risk and recognising
creative contributions.
2. To ingrate innovation in all the training provided by the companies belonging to the
Group through specific courses and programmes for developing creative capacities.
3. To implement an innovation management system that includes setting of annual
targets and objectives within a process of continuous improvement and managing the
Companys human and intellectual capital as the key supports of the entire process of
creation and innovation.
4. To promote a system of monitoring and technological prospecting that may identify
opportunities and challenges for the Groups businesses and detect innovation-related
needs of its processes or services and thus anticipate technological changes in the market.
5. To promote collaborations and alliances with stakeholders through links that multiply
the Companys capacity for innovation.
6. To disseminate internally the knowledge generated so that all the employees know
the best practices applicable to their activity as a way of increasing efficiency and
effectiveness of all Company processes.
7. To protect the results of the innovation processes by proper and ethical management
of intellectual property rights.
8. To disseminate the activity of innovation; making compatible the return of part of
the acquired knowledge to society with the discretion required in terms of business
activity.
9. To boost innovations that give added value to users and increase the satisfaction of
shareholders, customers and employees.
6.2 Knowledge Management Policy

IBERDROLA S.A. KNOWLEDGE MANAGEMENT POLICY
The Board of Directors of IBERDROLA, S.A. (the Company), aware that its intellectual
capital constitutes a basic pillar for the creation and protection of its corporate value,
recognises as a strategic objective, the need for implementing an adequate Knowledge
Management Policy to promote initiatives, procedures and tools which allow the
Company to effectively make use of its intellectual capital. The ultimate aim is to
disseminate and share the Companys existing knowledge, continuous learning and
cultural exchange to increase operating efficiency thanks to the appropriate use of
intellectual capital, always acting in the interest of the Company and of the companies
which belong to the Group of companies of which the parent company, as established by
law, is the Company (the Group), and without prejudice to specific policies which may
be established by specific companies within the Group.
In a world in which traditional production assets are increasingly accessible, it is
intellectual capital which differentiates those companies which are competitive from
those which are not, and those companies which generate sustained value from those
which gradually lose their wealth-generating capacity, leading to their extinction.
The intellectual capital of the Company depends largely on the whole of its
personnel, but also on its operative and organisational structures and on its internal and
external relationships with all stakeholders. Therefore, learning at the personnel and
organisational levels must be permanent and continuous, as well as be aligned with the
Companys strategy.
The Companys Knowledge Management Policy is founded upon the following basic
principles for action:
1. The consideration of the Group as a system of existing connections between persons
and working groups. The knowledge that exists within each working group should be
identifiable and accessible by the whole, thus giving rise to knowledge-based operating
leverage.
2. The identification of knowledge existing in the Group, recognition of its value and
promotion of its development as a basic tool for the creation of value.
3. The integration of the Groups tangible and intangible assets in order to provide the
objective conditions necessary to structure an intelligent organisation, focusing on the
creation of value by developing its permanent capacity for learning and innovation.
4. Alignment of knowledge management and the skills and requirements defined by the
Groups strategy.
5. Defining the models needed for management, measurement, processes and systems by
integrating the vision of different business units in order to understand and develop
the mechanisms for freeing knowledge flows within the existing organisational
structure. In this manner, experiences are shared and continuous attention to the
organisations operation as a whole is guaranteed.
6. Enhance knowledge-sharing within the Company as much as possible by facilitating
the resources needed for its development, internal dissemination through training
actions, and efficient use. This shared intelligence is by nature creative and innovative
and superior to the simple sum of individual intellectual capacities. Emphasis will be
placed on the creation and improvement of organisational connections (networks), as
well as the cohesion of working groups.
101
Intellectual
capital
constitutes a
basic pillar for
the creation and
protection of its
Corporate value
The markedly strategic nature which the Company imposes on knowledge

management requires constant efforts for improving initiatives and applying these to all
of the Companys business units.
ANNEXES
7. To evaluate in a consistent and sustained manner over time, the intellectual capital
existing in the Group in order to be able to evaluate the effectiveness of initiatives
undertaken in accordance with this Policy, correct defects and promote new actions.
8. To implement actions for improvement so that the Group is increasingly closer to
excellence in knowledge management.
6.3 Public financing of projects

Some of the projects described in this Report are cofinanced by different public
administrations, as detailed in the following table.
FUNDING PROGRAMME
PROjECTS
COEBEN
GESTOR ORDENES DE TRABAJO: TSI-020100-2009-581,
GIDIN: TSI-020302-2010-68, E-PREVENCIN: TSI-0203022009-80, SMARTYS TSI-020100-2009-365, GESCOM (TSI020100-2009-604), CONOP (TSI-020100-2009-616), CPD
(TSI-020100-2009-471), IMPULSO (TSI-020100-2009-389),
GR-REDIS: TSI-020100-2009-669, SURTIDOR (TSI-0203022010-127), AVANZA ELICO (TSI-020100-2010-663)
HOREX, ARENAL II, RELIFO, TURBISIN, CALDERE, REGPH,
MEDECOM, REGALIZ, ENDS, SASIRE, DALIA, ITER Blankets,
TBM, TECHNOFUSIN, BUS DE PROCESO, LABCON,
MEJILLN CEBRA, SOLTUBE, INSROCA
PROGRAMA CENIT
GAD, SOST-CO2, VERDE, OCEANLIDER, AZIMUT, VIDA
INTERRUPTOR AREO DE NUEVA GENERACIN
HYCHAIN, ADDRESS, FENIX, GROW-DERS, OPEN-METER,

OPEN NODE, MERGE, LASTBEG, WATERCHANGE, GREEN
EMOTION, TWENTIES, CAPIRE, INTEG-RISK, ASAMPSA2,
NOZZLEINSPECT
GOBIERNO VASCO (GAITEK-ETORGAI)
H2SAI, MICRO-DG, SICT, MUGIELEC, SAGER, ALIA2, SUARO,
PLID, FLOTTEK, ECLIPSE
ARENAL II, ARGOS, GARGAMEL, VULCANO, BIODIESEL,

CENTRAL SUPERCRTICA CARBN, PARQUES ELICOS
OFFSHORE, TERMOSOLAR
ARGOS, CORPRES, RELIFO
PSE
SOFCMETAL, REDES2025, SA2VE
FUNDING PROGRAMME
PROjECTS
GENERALITAT VALENCIANA
EPV, INTERRUPTOR AUTOMATICO
INNPACTO
EFESOT, DEPOLIGEN, EMERGE, DATOS SUBS
PLAN E
LIGNOCROP
LIFE +
BEST4VARIOUSE, UROGALLO, BIOENERGY & FIRE
PREVENTION
PROGRAMA INTEREMPRESAS INTERNACIONAL
ACCION SMART GRIDS, ACCIN NUCLEAR, ACCIN GREEN

CARS, EOLICO
103
Prepared by: IBERDROLA

Design and Layout: IBERDROLA
Photography: IBERDROLA
Printed by: GRAFO
Legal Deposit: BI-2101-2011
Copyright: IBERDROLA
Printed on ecological recycled paper
IBERDROLA
Innovation Department
c/Toms Redondo, 1 - 28033 MADRID
innovacin@iberdrola.es

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I N N O V A T I O N

Letter from the

6.1 Innovation Policy page 100

Projects in the area of Generation page 55

6.2 Knowledge Management

Projects in the area of Networks page 64

6.3 Public financing of projects

3.1 Vision and values page 14

4.1 R&D Management System

3.2 Strategy page 14

4.2 R&D Internationalisation

LETTER FROM ThE ChAIRMAN

6 Innovation Report 2009-2010

It is a source of great satisfaction to me to present to you a new edition of the

Renewable energy sources: Iberdrola Renovables started its participation in the

10 Innovation Report 2009-2010

14 Innovation Report 2009-2010

Development of the strategic R&D areas.

The major innovation projects undertaken and IBERDROLAs internationalisation

All for R&D

- Other, including activities related to information and communications technologies

16 Innovation Report 2009-2010

BENChMARK IN R&D MANAGEMENT

Decentralised because the process is carried out independently in each business

The Innovation Department, manages the IBERDROLA Groups innovation

20 Innovation Report 2009-2010

Support for innovation: IBERDROLA units that assist innovation.

4.1 R&D MANAGEMENT SYSTEM

BENChMARK IN R&D MANAGEMENT

4.2 R&D INTERNATIONALISATION

22 Innovation Report 2009-2010

4.3 OPEN INNOVATION

4.3.1 Technology platforms, associations and institutes

BENChMARK IN R&D MANAGEMENTi

4.3.1.1 European Platforms

European SmartGrids Technology

Sustainable Nuclear Energy Technology

Preparation of a strategic research agenda and a development strategy for nuclear

European Wind Energy Technology

European Technology Platform on

The European Technology Platform for

European Hydrogen & Fuel Cell JTI

24 Innovation Report 2009-2010

4.3.1.2 Spanish platforms

Plataforma Espaola de Seguridad

The basic objective of PESI is to provide a global and comprehensive view of

Plataforma Espaola de CO2 (PTECO2 Spanish CO2 Platform)

Contribute to improving energy efficiency and developing CO2 capture, transport,

Wind Power Technology Platform:

Integration and coordination of various research, development and innovation

Spanish Fusion Technology Platform

Spanish Fission Platform (CEIDEN)

BENChMARK IN R&D MANAGEMENT

Spanish Electrical Grid Platform

Spanish Energy Efciency Platform

Innovation in energy efficiency technology, generating new solutions through the

Photovoltaic Technology Platform

Promote collaboration among R&D groups, industry and government; define a

4.3.1.3 EIT and KIC Innoenergy

26 Innovation Report 2009-2010

Smart and energy-efficient

SmartGrid and electricity storage

CC. POLAND PLUS