- Letter from the President
- Letter from the CEO
- Part I: General Standard disclosures
- Part II: Specific Standard Disclosures
Letter from the President
We aim through our activities to contribute to the socio-economic development of the areas where we operate.
It is with pleasure that I present Elawan´s 2017 Sustainability Report, which shows the most relevant data and figures related to our performance, in line with the directives defined by the new Global Reporting Initiative (GRI) standards and the results of our materiality study. In addition, we have renewed our commitment to the United Nations Global Compact.
This year, there has been a significant global growth in renewable energy projects. A total of 167 GW in new capacity was installed, amounting to a cumulative capacity of 2,179 GW worldwide, which represents an annual growth rate of around 8.3%.
This progress is boosted by falling costs for the installation and management of renewable energy facilities, primarily for wind and solar energy facilities, and by technological improvements, an increasingly favorable political environment and the big social demand for renewable energies over conventional energies.
In this context, Elawan shows another year of sustainable growth, as is reflected by our economic results. Reaching a turnover of €171 million enables us to face new challenges and invest in new locations, with the aim of diversifying our investments in different countries applying different technologies.
Regarding our growth, there have been many changes this year. The sale of the Noblesfontaine wind farm in South Africa stands out as one of these changes, as does the sale of the majority of our wind farms in Brazil.
On the other hand, we have expanded our business with the construction of three new wind farms: Persimon Creek in Oklahoma (USA), Hannut in Belgium and Copperton in South Africa, with a combined total capacity of 324 MW.
In addition, we have a total of 3,820 MW in the advanced promotion stage, which includes the upcoming construction of our first photovoltaic farm in Torrijos (Toledo).
This year we have conducted an extensive revision of our management system concerning quality, environment and health and safety, adjusting it to the new corporate structure, in addition to switching to the new version (2015) of the ISO 9001 and ISO 14001 standards. This has allowed us to design, implement and certify a new Policy and a more flexible Integrated Management System, with its scope being the ¨International promotion, development, operation and sale of renewable energy production facilities¨. This helps us to improve the integration of the system into our strategic processes, adjusting to the new regulatory requirements.
Regarding the health and safety of our employees, we are proud to not have had any work-related accidents in 2017.
Due the nature of our activity, the fight against climate change is a key feature in our business. Therefore, we actively work towards achieving the Sustainable Development Goals (SDG), primarily objective 7 (Affordable and clean energy) and objective 13 (Climate action), and we avoided the emission of 606,459 tons of CO2. In the environmental chapter we elaborate on our performance on this matter.
Nevertheless, we have been affected by two important events this year. First of all, Hurricane Maria passed through Puerto Rico in September 2017, which, in addition to the devastating consequences throughout the country, caused severe damage to our Punta Lima Wind Farm, which has been inoperative since then. The earthquake that struck Mexico in February should also be mentioned, and whilst it did not affect our facilities directly, it did cause major damage to the region and to the connections of the country´s electrical system.
Finally, I would like to congratulate Elawan´s great team of professionals for their commitment and dedication, and who allow us to keep growing and moving forward sustainably.
Letter from the CEO
Elawan wants to contribute to change the current polluting and unsustainable energy model through the development of renewable energy as inexhaustible and clean energy source.
As every year, we present our Sustainability Report. This is the fifth report, corresponding to the year 2017. This document reflects our economic, social and environmental results. The report has been drawn up under the guidelines of the Global Reporting Initiative Standard (GRI), and has been audited by an independent entity.
As was mentioned last year, the decarbonization of electrical energy production is in constant progress. It is now not only the pressure from public opinion, the social demand and the problem of climate change - costs are now another reason.
Today, there is no competition in costs for energies like solar and wind energy. No other current technology can compete with our costs, nor with the long-term that we can guarantee them. We are only limited by the lack of the ¨manageability¨ in production, and the solution to this problem is moving at a good pace. Batteries, their different applications and technologies, the reduction of their costs, their massification, for which the electric vehicle is its main example, and intelligent distribution networks will bring us the solution to this problem in a relatively short period.
With this in mind, renewable energies represent the majority of the new electrical generation installed worldwide.
I'm not going to go into the figures of added capacity, the coverage of the demand, etc. You have them in the report, and in the annual reports from the main associations and specialized companies that produce these in great detail.
It is important to note that fast progress continues to be made regarding energy storage technologies. The remarkable evolution of batteries and storage systems, together with their very significant cost reductions, is going to cause a revolution, not only for renewable energies, but throughout the whole energy sector. Through these systems, renewable energies will not need the support of conventional energies to cover production gaps, the energy will be distributed on a mass scale, it will be more efficient and more affordable and we will see the traditional systems of the electricity sector change.
All of this puts Elawan in an excellent position to continue developing projects that will provide us with energy in the near future.
In 2017, we have rebalanced our operational project portfolio, to follow a strategy of having one third of our income in dollars, another third in euros and the remaining third in other currencies. With this strategy in mind, we have sold part of our operational project portfolio in Brazil and South Africa. The income obtained has enabled us to reduce our company debt and manage the construction of new projects in Belgium, the USA and South Africa.
Regarding our economic results, we have surpassed our target budget, with a turnover of around €171 million, an EBITDA of €100 million and a pre-tax profit of €12 million. This year, we started production at 6 wind farms in Brazil (Pedra Rajada, Pedra Rajada II, Cabeco Vermelho, Cabeco Vermelho II, Boa Esperanca I and Pedra do Reino IV) totaling 130 MW, and at a mini-hydraulic plant in Tacotan, Mexico, with a total power output of 6.9 MW. 324 MW are under construction, of which 200 MW will be put into operation in Oklahoma in August 2018, 24 MW will start production in December 2018 in Belgium and the remaining 100 MW, in South Africa, will begin production in 2020.
Over the years, Elawan has put 1,032 MW into operation and we aim to continue growing, with over 3,800 MW in projects spread over 12 markets/countries, in different stages of development.
In 2018, we start the construction of a 30 MW photovoltaic farm in the town of Torrijos, in Toledo, Spain, as well as two additional wind farms in Turkey, with a total output of 57 MW. The approval of Europe´s objective to reach 32% renewable energy production will lead to a major opportunity for our development in the European Community, especially in Spain, where we have over 600 MW in the advanced promotion stage, in both photovoltaic and in wind farms. France, Belgium and Poland are also countries that should be an opportunity in 2018.
Another important challenge for the company is the reconstruction of the Wind Farm in Punta Lima, Puerto Rico, which was devastated by Hurricane Maria in September 2017. We are working on this project, which Puerto Rico and its inhabitants need to be operational, and we count on the help of the insurance company and the wind farm´s financing entities to rebuild the installations and start producing energy again in 2019.
To meet these challenges, we will continue to be a highly-efficient company, with an exhaustive cost control and an exceptionally professional number of staff, who have a broad range of experience and excellent skills. In addition, our management model is solid and sustainable, which will allow us to confront the future successfully.
I cannot let the opportunity pass to thank our entire team for their effort and dedication, and for the trust placed in Elawan by our customers, suppliers and funders.
-Dionisio Fernández Auray
Part I:General Standard disclosures
- Our company
- Main effects, risk and opportunities
- Relevant points: materiality analysis
- Report profile
Part II: Specific Standard Disclosures
- Economic Dimension
- Social Dimension
- Environmental Dimension
Part III: Annex
- Independent Review Report
- GRI Content Index
- Content related to the Principles United of the Nations Global Compact
- List of consolidated subsidiaries companies