1. A new Spanish-French interconnection 13 february 2007 CEER Electricity Infraestructure workshop Brussels Dr. MARTÍN PORTILLO Deputy Transmission General Manager

2. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 2 Necessity for the interconnection q Spanish electrical magnitudes (Penninsular system) m Demand in 2006: 252.878 MWh m Maximum hourly power: 43.378 MW (27 January 2005) and m Instaled generation capacity: 78.200 MW q Barcelona EC Summint, March 2002. An interchange capacity between member states of a minimun of 10% of installed generation capacity was stablished : 7.820 MW q Actual commercial interchange capacity with France: 1.400 MW q Interchange capacity deficit: 6.420 MW q Project proposal: m A 400 KV double circuit between Santa Llogaia and Baixas. m Triplex Condor 402,30 mm2 aluminium m Rating 2.441 MW/ circuito

3. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 3 Demand evolution q Evolution of the demand between 2002 and 2006 Demand evolution in January 2007: 3,7% (*) Due to labour demand and temperature

4. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 4 Annual demand coverage of electrical energy

5. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 5 Spanish Administrative process summary q First phase: Prior consultation of the Project Summary q Second phase: Drawing up Environmental Impact Study and Preliminary Project q Third phase: Environmental Impact Statement and Administrative Authorization q Fourth phase: Drawing up detailed project implementation q Fifth phase: Approval of the Project implementation and Public Utility Statement

6. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 6 Second phase of the spanish administrative process: Drawing up Environmental Impact Study and Preliminary Project q Punto 1: Environmental Inventory q Punto 2: Agreement over the Spanish-French border cross- point (Awaiting agreement in conjunction with a mediator) q Punto 3: Establishment of alternative corridors for the electrical line q Punto 4: Determining of a lower impact alternative q Punto 5: Establishment of electrical line “right of way” q Punto 6: Drawing up Environmental Impact Study and Preliminary Project

7. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 7 q February 2005: Beginning of Prior Consultation Process for the Project Summary (Section of the line between Bescanó substation and the French border) q February 2006: Receipt of the Prior Consultation of the Project Summary Actions taken

8. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 8 REE border cross-point proposal q In the vicinity of La Jonquera, with a “right of way” from the Santa Llogaia Substation relatively parallel to the route of the TGV train Girona-Perpiñán. q This is the cross- point preferred by REE and by Generalitat de Catalunya for having the least environmental impact. q The alternative of unfolding of the current line Vic-Baixas is not possible since the Spanish part needs the construction of a new double circuit line and crosses many protected and densely inhabited zones. Also, the increase of the capacity of energy exchange is a lot smaller.

9. A new Spanish-French interconnection RED ELÉCTRICA DE ESPAÑA 9 Main points to solve immediately q Appointment of the mediator determining the ideal border cross-point for the interconnection for the CE q To continue with the administrative process in both countries m Definition of the alternatives of corridors for the electrical line m Drawing up the Environmental Impact Study and Preliminary Project q To obtain the social acceptance of the project on both sides of the border