Letter from the President

We aim through our activities to contribute to the socio-economic development of the areas where we operate.

Dear readers,

It is is a pleasure for me to present the 2018 Elawan Energy S.L Sustainability Report, in which we compile the most relevant information and our main developments, with the aim of combining economic, social and environmental performance with the creation of long-term sustainable value.

This report has been drawn up under the guidelines of the Global Reporting Initiative (GRI) standard and has been verified by the independent body EY. In addition, we have renewed our commitment to the United Nations Global Compact.

2018 has been a favourable year for our business, which presented a positive balance with a turnover in excess of 93 million euros, an EBITDA of 67 million euros and pre-tax profits of 23 million euros.

With regard to our activity, a total of 657 MW are currently operational, distributed throughout Spain, USA, Brazil, Poland, Belgium, Mexico and Turkey. Furthermore, the new Persimmon Creek 1 park in Oklahoma, with 200MW capacity, began operations, thus strengthening our presence in the USA.

Similarly, construction of different wind parks has begun in Belgium: Hannut, the extension of Beaumont and Salazine/Ciney; the extension of Adares in Turkey. The construction of the solar parks of Szerzawy in Poland and Torrijos in Spain has also begun, all of which plan to begin operating in 2019. The Pedra do Reino V wind park is expected to be completed in 2020 and the wind parks of Copperton in South Africa and Yaris in Turkey in 2021.

Looking at the future, the 7.8 GW that are in promotion in Mexico, Colombia, Argentina, Brazil, France, Belgium, Spain, South Africa, Turkey, Romania, Poland and Russia should be noted.

Beyond financial results, we are committed to pushing the Sustainable Development Goals (SDG), and integrate those into our business strategy. Our strong commitment to the environment stands out through Goal 7.2: “increase substantially the share of renewable energy in the global energy mix by 2030” and Goal 13.2: “integrate climate change measures into national policies, strategies, and planning”.

As a result of these two goals, we have generated 4,778,486 GJ of renewable energy, therefore avoiding the emission of 421,750 tons of CO2.

In addition to the environment, quality management and health and safety is key to our development, which is why we have a well-estabilished integrated Management System, duly implemented in accordance with the international standards ISO 14001:2015, ISO 9001:2015 and OHSAS 18001 for “the international promotion, development, operation and sale of installations for the production of renewable energy”. The system has been recertified in 2018 without any minor nor major non-conformities.

We have a team or 72 employees whose professional development is important to the company. Therefore, we develop initiatives aimed at improving their qualifications, development and the retention of talent, among others. In 2018, 1,942 training hours were given.

I do not want to miss the opportunity to talk about a fundamental aspect: Health and Safety. I am pleased to point out that for the last 7 years, Elawan has been recognized by the Ministry of Labour for Companies for its contribution to the reduction and prevention of occupational accidents by virtue of "Royal Decree 404/2010 of 31 March regulating the establishment of a system of reduction of contributions for professional contingencies for companies that have made a special contribution to the reduction and prevention of occupational accidents".

This drives us to keep working in this direction and is a clear reflection of our commitment to accident prevention, and these figures place our company´s occupational safety way above the sector´s average.

Finally, we are working to adapt to these truly transformative times, in which new technologies, digitalization, connected devices, among others, present us with an important future challenge. For this reason, via the “Digital Workplace” project, we are advancing in the digital transformation of the workplace. This project represents a cultural change to increase our digital competences, define new technologies to improve work and digital agility.

I would like to invite you to read and learn about the main milestones in our performance through this Report, I hope that they are to your liking.

-Jon Riberas


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.

For another year we present our Sustainability report. This Report, for the year 2018, is already the sixth. This document contains the company’s results in the economic, social and environmental areas. The report has been drawn up under the guidelines of the Global Reporting Initiative (GRI) standard, and has been verified by an independent body.

As was laid out in previous years, the progression of the decarbonization of the global production of electric energy cannot be stopped. This is no longer only due to pressure from public opinion, social demand and climate change, but now costs too have become another reason. Today, there is no competition in costs for solar or wind energy. No other current technology can compete with our costs nor with the long duration which we can guarantee them for. We are only limited by the lack of “manageability” in our production, and the solution to this problem is advancing steadily. Batteries, their different applications and technologies, their reduction in costs, the massification of their use, with the electric vehicle being the main exponent and the intelligent distribution networks, will lead us to the solution to this inconvenience in a relatively short time.

Within this framework and with this perspective, renewable energies account for most of the new electricity generation installed worldwide.

Information on installed capacity, percentage of demand coverage, etc. are detailed in this report and in the annual reports of the main associations and specialized companies that issue these.

It is important to highlight that energy storage technologies continue to advance in leaps and bounds. The significant evolution of batteries and storage systems, paired with their substantial cost reduction, will lead to a revolution not only for renewable energies, but for the energy sector as a whole. Through these systems, renewable energies will no longer need the support from conventional energies to cover production gaps, the distributed energy will become widely available, much more efficient and more cost-efficient and we will see the traditional systems in the electric sector change.

The points mentioned above provide Elawan Energy with the proper environment to continue developing the projects that will bring us energy in a near future.

Throughout 2018, as a part of the Group´s corporate strategy, sales operations were agreed for some assets in Brazil and Spain, which generated substantial capital gains for the Group and served to reduce the company´s debt as well as handle the promotion and construction of new projects.

With regard to the economic results, we have surpassed the target budget, with a turnover of €93 million, an EBITDA of €67 million and €23 million in profits before taxes.

This year we have begun the construction of new projects in Belgium (Hannut Wind Park), South Africa (Copperton Wind Park), Spain (Torrijos Solar Plant), Brazil (Pedra do Reino V Wind Park) and Poland (Szerzawy Solar Plant) which, together, total 190 MW.

The 200-MW wind park Persimmon Creek I in Oklahoma began operations in 2018. Over the years, Elawan has put a total of 1,232 MW into operation.

In addition, the Group has 7.8 GW in promotion in Mexico, Colombia, Argentina, Brazil, France, Belgium, Spain, South Africa, Romania, Poland and Russia.

The approval of the European target to produce 32% of energy from renewable sources will lead to a significant opportunity for our development in the European Union, especially in Spain, a country in which the Integrated National Energy and Climate Plan augments these targets to 52%. Over 3,000 MW are being developed by Elawan in Spain, of which, projects totalling 782 MW, both in photovoltaic and wind energy, already have Access and Connection, are processing the permits and authorizations with the different Autonomous Communities and have a large part of the land already contracted. France, Belgium and Poland are other countries which should provide good opportunities in 2019.

Another important challenge for the company is the reconstruction of the Punta Lima Wind Park in Puerto Rico, which was devastated by Hurricane Maria in September 2017. We continue working on this project, which Puerto Rico and its inhabitants need to have operational, and we count on the support of the insurance company and the park´s financing entities to restore it and restart energy production in 2020.

To meet all these goals, we will continue to be a highly-efficient company, with comprehensive cost-control and with our exceptional team, with their vast experience and excellent abilities. Moreover, we have our sound and sustainable management model to face the future successfully.

I cannot let the opportunity pass to thank all our staff for their effort and commitment, and our customers, suppliers and investors for the trust they placed in Elawan.

-Dionisio Fernández Auray


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Part I:General Standard disclosures

  • Our company
  • Main effects, risk and opportunities
  • Governance
  • Materiality

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Part II: Specific Standard Disclosures

  • Economic Dimension
  • Social Dimension
  • Environmental Dimension

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Part III: Annex

  • Independent Review Report
  • Report profile
  • GRI Content Index
  • Content related to the Principles United of the Nations Global Compact
  • Perimeter considered