Mother earth is the source of all our energy. For her sake, we believe that the future is generating cleaner energy. For her sa
annual report 2009 index edp 7 10 11 12 14 18 22 MessaGe to sHareHolders vIsIon, CoMMItMents and values edp In tHe world CoMpan
5
annual report 2009 6
edp MESSAGE TO SHAREHOLDERS In a difficult market environment… we achieved record results Yet again, 2009 confirmed in numbers
annual report 2009 edp We made the right choices, a reflection of the value of our staff, their confidence in knowing where the
But as has become our habit, we want to go further. in 2009 we defined a new vision – “a global energy company that leads the w
annual report 2009 edp ViSiOn, COMMiTMEnTS AnD VALuES trust of shareholders, customers, suppliers and other stakeholders. excel
EDP in THE wORLD usa employees installed Capacity (MW)* net Generation (GWh) Generation from renewables sources** 303 2,624 5,9
annual report 2009 edp COMPAnY HiGHLiGHTS 06 Feb – Fitch confirms eDP’s long term credit rating to ‘a-’assigning stable outlook
07 oCt – eDP Bandeirante: aneel approves final parameters for the oct 2007/oct 2011 regulatory period 20 oCt – eDP sells stake
annual report 2009 edp EDP CORPORATE BODiES board oF tHe General MeetInG rui eduardo Ferreira rodrigues pena, Charmain antónio
of Banco Finantia and President of the Portugal Venture Capital initiative, an equity fund promoted by the european investment
annual report 2009 edp and Commodities institute (iFCi) and the european Capital Markets institute (eCMi). He was awarded the t
1995). He served as assistant to the secretary of state for Foreign trade (1986-1988) and served as Vice-Chairman of the Board
annual report 2009 edp SuMMARY OF KEY METRiCS EBITDA (EUR millions) FInanCIal IndICators eur thousands edp Group Consolidated t
operatInG HIGHlIGHts 2009 number of employees * electricity business (excluding Brazil) electricity generation (excluding eDP R
annual report 2009 edp envIronMental IndICators 2009 primary energy Consumption (tJ) total for generation Coal Fuel oil natural
soCIal IndICators 2009 employment employees (no.) (1) Gender ratio (%) overall satisfaction rate turnover (2) employees average
annual report 2009 edp STRATEGiC AGEnDA eDP presented in lisbon on november 6, 2008 its strategic agenda for the four years 200
superior efficiency • Capture of 109 million euros savings with oPeX Project, Program Office surpassing the 96 million euros go
annual report 2009 business 26 28 28 30 32 36 36 46 48 organizational structure business framework Macro-economic framework Ene
25
annual report 2009 business organizational structure electricitY (Excluding EDP Renováveis) reneWaBles gas Portugal sPain Portu
eDP, s.a. Brazil otHer sHareHolDings sPain electricitY 100% eDP soluções comerciais eDP valor 3,5% ren 100% 65% GENERATION 21%
annual report 2009 business Business FraMeWork macro-economic framework There was a strong economic contraction during the cour
economic performance of the countries where eDp carries out business The impact of the international economic and financial cri
annual report 2009 business The US economic activity has revealed itself to be much heartier than expected, but there is still
The price at Henry Hub, the reference hub for the United States, had an even more significant drop, suggesting a lower demand f
annual report 2009 business regulatory framework Developments in the european union energy-climate package The European Council
and the amount to acquire these auctions by EDP SU, as the last resort supplier (CUR), quantities that were purchased under tha
annual report 2009 business Comparing with other countries, electricity prices in Portugal in the 1st half of 2009, for househo
Developments in the regulatory framework of the spanish gas sector Relevant regulatory changes in the natural gas sector in Spa
annual report 2009 summary of activities electricitY Business (excluDing Brazil) generation in iberia generation in iberia - po
presence of eDp group in the electricity generation activity in portugal* Viana do Castelo Braga Bragança repowering venda nova
annual report 2009 summary of activities generation in iberia generation in iberia - spain unit installed capacity in spain * e
presence of eDp group in the electricity generation activity in spain* Produção Espanha under construction · soto 5 CCGT 400 MW
annual report 2009 summary of activities eDp renováveis unit wind installed capacity EDP Renováveis Installed Capacity Source:
presence of eDp group in the operation of winD farms in the worlD 2.859 mw 99 MW usa france 220 mw 39 MW belgium 57 mw 13 MW po
annual report 2009 summary of activities Distribution unit portugal energy input in the Distribution griD For the regulated mar
Distribuição Ibérica presence of eDp group in the activity of electricity Distribution in the iberian peninsula asturias 9.241
annual report 2009 summary of activities supply in iberia unit last resort market in portugal number of costumers Very high vol
Comercialização Ibérica presence of eDp group in the activity of electricity supply in the iberian peninsula Portugal 6,1 Milli
annual report 2009 summary of activities gas business in iberia unit iberia number of costumers (thousands) Regulated Last Reso
presence of eDp group in gas activity in the iberian peninsula Gás Ibérico Portugal 3.508 Km Distribution Grid 6,1 TWh Gas Dist
annual report 2009 summary of activities electricity business in brazil unit generation number of generating groups Hydroelectr
presence of eDp group in brazil Porto PECÉM CEARÁ Fortaleza Pecém* Coal 720 MW 2012 repowering uHe Mascarenhas Hydro 17,5 MW 20
annual report 2009 contribution to sustainability 52 54 57 59 59 59 60 60 61 62 62 62 63 63 63 64 64 64 65 65 65 66 reCoGnItIon
51
annual report 2009 contribution to sustainability 1. RECOGNITION Dow Jones Sustainability Index 2009/2010 For the second year r
eDp renováveis wins Ipo of the Year Edp Renováveis, the third largest wind energy company in the world, and the third largest i
annual report 2009 contribution to sustainability 2. CORPORATE APPROACH Edp’s commitment to integrating sustainability at the h
Five management guidelines have been defined in accordance with Edp’s Strategic Agenda until 2012: • Improve the integration of
annual report 2009 contribution to sustainability 2.1. DIaloGue WItH StaKeHolDerS As set forth explicitly in its Sustainable de
3. R&D AND INNOvATION The R&d and Innovation policy followed by Edp is aligned with its strategic pillars: • photovoltaic energ
annual report 2009 contribution to sustainability • Desulphurisation Gypsum project – researching the In terms of partnerships,
• Futured plataform – HC Energía is on the Management 4. EDP COmmuNICATION 4.1. InStItutIonal CoMMunICatIon The mission of the
annual report 2009 contribution to sustainability evolved into Edp; and in the USA, the Edp Renewables brand has replaced Horiz
5. EmPlOyEEs HuMan reSourCeS group employment Employees (no.) (1) permanent Fixed-term contract part-time Male employees (%) di
annual report 2009 contribution to sustainability 5.1. HuMan reSourCe polICIeS The Edp Group has been implementing an Organisat
Employees Eligible for Retirement • To introduce students to the Edp Group’s strategy, culture and people; • To promote closer
annual report 2009 contribution to sustainability • providing incentives for employees to update their professional skills; • O
improvements introduced into the Group’s management of its human potential. i’m+edp learning Maps 5.10. CoMMunICatIon anD ManaG
annual report 2009 contribution to sustainability In order to better manage this strategic objective, an Occupational Health an
alCoHol preVentIon anD Control polICY Edp’s Alcohol prevention and Control policy was approved in 2009, together with the regul
annual report 2009 contribution to sustainability DIStrIButIon oF eDp CuStoMerS BY tYpe oF MarKet 2009 Regulated Market Free Ma
Customer experience Index A broad-ranging survey of residential electricity customers’ experiences was conducted in portugal in
annual report 2009 contribution to sustainability General Service Quality Indicators Customers with service reconnection within
as promoting its efficient use. Internal installation kits and energy-saving light bulbs were provided, in addition to electric
annual report 2009 contribution to sustainability eXpeCteD enVIronMental IMpaCt oF aCtIonS ppeC 2009-2010* ppeC 2009-10 Intangi
• New website – Edp launched a new, more interactive and easy-to-use website. Intimacy, simplicity and clarity were the factors
annual report 2009 contribution to sustainability corresponding to an annual consumption of 3,577 GWh. In portugal, Edp supplie
One of Edp’s objectives for 2010 is to increase the amount of information requested from suppliers, to cover their social perfo
annual report 2009 contribution to sustainability To help it better respond to its partners’ expectations, Edp asked them to ex
ContrIButIonS(a) to tHe CoMMunItY In 2008 anD 2009 total value of contributions (€)(b) Category Nonstrategic Investment Strateg
annual report 2009 contribution to sustainability • “Edp Solidária Barragens” – This programme sponsors charitable projects run
the live, dynamic models in its exhibitions help visitors to acquire a broad knowledge of the importance of biodiversity and th
annual report 2009 contribution to sustainability towards the integration and development of children from disadvantaged social
• San Silvestre Run – The Hidrocantabrico Foundation sponsored the races held on 31 december 2009 in Gijón and Oviedo. For each
annual report 2009 contribution to sustainability 9. ENvIRONmENTAl PERfORmANCE enVIronMental InDICatorS Group 242,878 132,628 6
9.1. ManaGInG enVIronMental ConCernS Edp’s environment policy expresses the company’s ambition to be a role model in the enviro
annual report 2009 contribution to sustainability 9.1.3. WaSte Edp’s generation activities produce large quantities of fly ash
This ambitious target is in line with Edp’s sustainable development policy, which makes it one of the leading companies in this
annual report 2009 contribution to sustainability Primary Energy Consumption (TJ) 310,473 282,147 261,157 environmental concern
87
ANNUAL REPORT 2009 corporate governance report 90 STATEMENT OF COMPLIANCE Statutory framework in respect of independence and in
89
ANNUAL REPORT 2009 corporate governance 1. STATEMENT OF COMPLIANCE EDP – Energias de Portugal, S.A. (“EDP”) is a company that i
STATEMENT OF COMPLIANCE Recommendation I.6 COMPANY CONTROL MEASURES No measures designed to prevent successful takeover bids ha
ANNUAL REPORT 2009 corporate governance STATEMENT OF COMPLIANCE Recommendation II.1.5 REMUNERATION II.1.5.1 The remuneration of
STATEMENT OF COMPLIANCE Recommendation II.3 CEO, EXECUTIVE COMMITTEE AND EXECUTIVE bOARD OF DIRECTORS II.3.1 When asked to do s
ANNUAL REPORT 2009 corporate governance 1.1. STATUTORY FRAMEwORk IN RESPECT OF INDEPENDENCE AND INCOMPATIbILITIES The Articles
in which the member specifically declares: (i); (ii) the absence of any incompatibility situation under the law or EDP’S Articl
ANNUAL REPORT 2009 corporate governance General and Supervisory Board registered its conclusions in its Annual Report, which ca
2.3. CORPORATE bODIES The current members of the corporate bodies were elected at the annual General Meeting held on the 15 Apr
ANNUAL REPORT 2009 corporate governance • Monitor the definition of the necessary or appropriate criteria and responsibilities
of the Executive Board of Directors and participate in the discussion of matters to be submitted to the General and Supervisory
ANNUAL REPORT 2009 corporate governance For more information regarding changes to the composition of the General and Supervisor
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RelatóRio e Contas 2009 annual report 2009 Caderno Inst
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Mother earth is the source of all our energy. For her sake, we
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annual report 2009 index edp 7 10 11 12 14 18 22 MessaGe to sHa
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annual rep
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edp MESSAGE TO SHAREHOLDERS In a difficult market environment…
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annual report 2009 edp We made the right choices, a reflection
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But as has become our habit, we want to go further. in 2009 we
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annual report 2009 edp ViSiOn, COMMiTMEnTS AnD VALuES trust of
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EDP in THE wORLD usa employees installed Capacity (MW)* net Gen
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annual report 2009 edp COMPAnY HiGHLiGHTS 06 Feb – Fitch confir
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07 oCt – eDP Bandeirante: aneel approves final parameters for t
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annual report 2009 edp EDP CORPORATE BODiES board oF tHe Genera
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of Banco Finantia and President of the Portugal Venture Capital
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annual report 2009 edp and Commodities institute (iFCi) and the
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1995). He served as assistant to the secretary of state for For
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annual report 2009 edp SuMMARY OF KEY METRiCS EBITDA (EUR milli
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operatInG HIGHlIGHts 2009 number of employees * electricity bus
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annual report 2009 edp envIronMental IndICators 2009 primary en
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soCIal IndICators 2009 employment employees (no.) (1) Gender ra
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annual report 2009 edp STRATEGiC AGEnDA eDP presented in lisbon
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superior efficiency • Capture of 109 million euros savings with
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annual report 2009 business 26 28 28 30 32 36 36 46 48 organiza
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2
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annual report 2009 business organizational structure electricit
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eDP, s.a. Brazil otHer sHareHolDings sPain electricitY 100% eDP
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annual report 2009 business Business FraMeWork macro-economic f
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economic performance of the countries where eDp carries out bus
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annual report 2009 business The US economic activity has reveal
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The price at Henry Hub, the reference hub for the United States
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annual report 2009 business regulatory framework Developments i
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and the amount to acquire these auctions by EDP SU, as the last
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annual report 2009 business Comparing with other countries, ele
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Developments in the regulatory framework of the spanish gas sec
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annual report 2009 summary of activities electricitY Business (
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presence of eDp group in the electricity generation activity in
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annual report 2009 summary of activities generation in iberia g
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presence of eDp group in the electricity generation activity in
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annual report 2009 summary of activities eDp renováveis unit wi
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presence of eDp group in the operation of winD farms in the wor
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annual report 2009 summary of activities Distribution unit port
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Distribuição Ibérica presence of eDp group in the activity of e
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annual report 2009 summary of activities supply in iberia unit
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Comercialização Ibérica presence of eDp group in the activity o
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annual report 2009 summary of activities gas business in iberia
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presence of eDp group in gas activity in the iberian peninsula
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annual report 2009 summary of activities electricity business i
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presence of eDp group in brazil Porto PECÉM CEARÁ Fortaleza Pec
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annual report 2009 contribution to sustainability 52 54 57 59 5
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5
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annual report 2009 contribution to sustainability 1. RECOGNITIO
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eDp renováveis wins Ipo of the Year Edp Renováveis, the third l
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annual report 2009 contribution to sustainability 2. CORPORATE
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Five management guidelines have been defined in accordance with
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annual report 2009 contribution to sustainability 2.1. DIaloGue
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3. R&D AND INNOvATION The R&d and Innovation policy followed by
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annual report 2009 contribution to sustainability • Desulphuris
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• Futured plataform – HC Energía is on the Management 4. EDP CO
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annual report 2009 contribution to sustainability evolved into
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5. EmPlOyEEs HuMan reSourCeS group employment Employees (no.) (
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annual report 2009 contribution to sustainability 5.1. HuMan re
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Employees Eligible for Retirement • To introduce students to th
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annual report 2009 contribution to sustainability • providing i
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improvements introduced into the Group’s management of its huma
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annual report 2009 contribution to sustainability In order to b
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alCoHol preVentIon anD Control polICY Edp’s Alcohol prevention
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annual report 2009 contribution to sustainability DIStrIButIon
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Customer experience Index A broad-ranging survey of residential
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annual report 2009 contribution to sustainability General Servi
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as promoting its efficient use. Internal installation kits and
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annual report 2009 contribution to sustainability eXpeCteD enVI
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• New website – Edp launched a new, more interactive and easy-t
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annual report 2009 contribution to sustainability corresponding
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One of Edp’s objectives for 2010 is to increase the amount of i
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annual report 2009 contribution to sustainability To help it be
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ContrIButIonS(a) to tHe CoMMunItY In 2008 anD 2009 total value
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annual report 2009 contribution to sustainability • “Edp Solidá
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the live, dynamic models in its exhibitions help visitors to ac
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annual report 2009 contribution to sustainability towards the i
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• San Silvestre Run – The Hidrocantabrico Foundation sponsored
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annual report 2009 contribution to sustainability 9. ENvIRONmEN
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9.1. ManaGInG enVIronMental ConCernS Edp’s environment policy e
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annual report 2009 contribution to sustainability 9.1.3. WaSte
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This ambitious target is in line with Edp’s sustainable develop
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annual report 2009 contribution to sustainability Primary Energ
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8
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ANNUAL REPORT 2009 corporate governance report 90 STATEMENT OF
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8
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ANNUAL REPORT 2009 corporate governance 1. STATEMENT OF COMPLIA
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STATEMENT OF COMPLIANCE Recommendation I.6 COMPANY CONTROL MEAS
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ANNUAL REPORT 2009 corporate governance STATEMENT OF COMPLIANCE
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STATEMENT OF COMPLIANCE Recommendation II.3 CEO, EXECUTIVE COMM
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ANNUAL REPORT 2009 corporate governance 1.1. STATUTORY FRAMEwOR
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in which the member specifically declares: (i); (ii) the absenc
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ANNUAL REPORT 2009 corporate governance General and Supervisory
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2.3. CORPORATE bODIES The current members of the corporate bodi
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ANNUAL REPORT 2009 corporate governance • Monitor the definitio
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of the Executive Board of Directors and participate in the disc
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ANNUAL REPORT 2009 corporate governance For more information re
EDP
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