Villar Mir Energia

VM Energía
Torre Espacio
Ps de la Castellana 259-D
28046 Madrid. España
T: +34 91 722 3900
F: +34 91 561 7606



VM Energía is the head of Grupo Villar Mir for the development of its energy sector activities.

Grupo Villar Mir has engaged in energy sector activities from the outset, although the relevance of this field for the Group as a whole has diminished to date.

VM Energía manages the production of Ferroatlántica S.A.’s seven hydroelectric plants and Hidro Nitro S.A.’s five plants, which have a total installed power of 210 MW and an average annual production of 600 million kWh.

During 2010, VM Energía acquired 100% of Céntrica Energía, S.L. (currently named Enérgya VM, S.L.). This company engages in electricity and gas commercialisation, representing specialregime producers and performing important tasks in relation to the interconnections existing among the main countries in Western Europe, and in particular, the one between Spain and France.

VM Energía

VM Energía manages all of Grupo Villar Mir’s activities in the energy sector. The Division achieved turnover of EUR 614 million in 2014, with a 2.8% increase compared to the figure recorded in 2013.

In 2014, the Energy Division turnover accounted for 9.5% of the consolidated turnover of Grupo Villar Mir.

The main financial figures of the Energy Division are as follows:


It should be noted that during the year 2014 it has continued the implementation of the agenda of reforms that was initiated in 2012 that aims to balance the so-called electricity tariff deficit. Major policy changes were developed to increase revenue through tolls and to reduce the system regulated costs, especially the costs for the renewable generation.

The generation was conditioned in 2014 by the entry into force of Royal Decree 413/2014 of 6th June and by the Order 1045/2014, by which it is regulated the electricity production from renewable energy sources, co-generation and waste.

By these two new regulations, and in accordance with what was already approved in July 2013 by Royal Decree-Law 9/2013, it is defined the new compensation under the Special Regime, and in the event that there is a prime over market prices, it defines what should be the remuneration for new Investments (in €/MW) and when applicable, defines the additional remuneration to be receives from operation (in €/MWh). This regulation is applicable, retroactively, since the adoption of RD-Law 9/2013 of 13th July.

During 2014, while most of the proposals for electricity sector reforms were approved, they still have not been processed. Simultaneously, different reforms affecting the gas sector were initiated in 2014.

Year Performance

Management of FerroAtlantica’s and Hidronitro’s hydropower plants

Grupo Villar Mir is the largest independent producer of hydroelectric power in Spain, with twelve hydroelectric plants managed by VM Energía, S.L.U.

  • Seven on the Jallas and Grande basins (Galicia), owned by Ferroatlántica, S.L.U.

  • Five on the Cinca and Esera basins (Aragon), owned by Hidro Nitro Española, S.A.

Furthermore, Grupo Ferroatlántica has two hydroelectric plants in France that are managed directly by FerroPem S.A., the French subsidiary of the Group.

The Energy Division produced 834.9 GWh in 2014, of which 737.0 GWh were produced in Spain and the remaining 97.9 GWh in France. This total figure was the second highest in the last five years, just below that of 2013 in which 865.9 GWh were producwd, as this year had very high hydraulic activity.

Group plants in Spain have continued to receive income in feed-in tariff scheme during the first months of 2014. In June, with the entry into force of the Royal Decree of renewable energies, a new remuneration scheme for the Group plants was defined, and they began to sell their production at market pool price. This scheme applies retroactively from the entry into force of RDL 9/2013 of 13th July. Plants have concentrated their production on peak-hour prices and ancillary services markets. Novo Pindo plant, which belongs to Ferroatlántica, additionally, receives an additional premium according to that regulation. The retail price of the energy sold was €48.4/MWh in 2014, a figure that is higher than the pool daily average price (€42.1/ MWh), which was lower than in previous years. Revenue from energy sales is lower than in 2013, having reached EUR 35.7 million. The new regulation that is currently under development is expected to allow participating in new adjustment service markets, something that will increase the revenues of plants. One of the three new hydroelectric plants in the Jallas (Galicia) basin, whose construction began in 2014, is expected to start production at the end of 2015. This will lead to an increase in Ferroatlántica’s production of approximately 42,000 MWh



Commercialization of electricity and natural gas.

VM Energía supplies electricity and natural gas directly and through its subsidiary Enérgya VM.

In 2014, approximately 27,000 points were supplied, meaning a total of 4.0 TWh of electricity, compared to the 4.6 TWh supplied in 2013; furthermore, 2.9 TWh of natural gas were supplied, which has consolidated our presence in this market.

Enérgya VM will continue to cover about half of the natural gas supply needs of Fertiberia during the years 2015, 2016 and part of 2017, representing approximately 3,100 GWh of annual supply.

Representation of special-regime producers

Enérgya VM represented a total power of 2,000MW from special-regime producers in 2014, consolidating its presence in this area of activity. The company Enérgya VM, GmbH was created in Germany to carry out this activity in the German market.

Shares in european electricity and natural gas interconnection systems

During 2014, Enérgya VM continued to increase its presence on the European electricity interconnection systems, consolidating such on the borders of France, Germany, Austria, Italy, Switzerland, Belgium, the Netherlands, Denmark and Slovenia. Moreover, Enérgya VM continues to penetrate further into different European electricity financial markets. Energya has increased its presence in the French gas interconnection system, engaging in conducted capacity auctions.

Wind farm projects

At the start of 2011, VM Energía S.L. was awarded a concession for a 20MW wind farm in the town of Castelflorite (Huesca), as part of the wind power public tender launched by the Government of the Autonomous Region of Aragon.

Throughout 2012 and 2013, we made every endeavour to obtain all the permits necessary to receive authorisation to start construction. The project is expected to begin commercial operations in 2017.

In addition, the Monte Alegre and Pedra Miñón (Galicia) wind farm projects are also being processed, with a total capacity of 112MW, taking advantage of the many opportunities appearing on the market at the present time, on the understanding that they continue to be viable projects even if generation facilities of this nature do not receive any kind of premium.

Income for the year

VME obtained very satisfactory results in 2014 despite the difficult economic environment.

Thus, in 2014, the Energy Division achieved turnover of EUR 614 million, which represents an increase of 2.8% compared to the EUR 597 million reached in 2013, thanks to the positive performance of Enérgya VM.

On the other hand, EBITDA was EUR 30 million, against EUR 45 million achieved in 2013 (-34%) due to the drop in hydroelectric production and energy selling prices.

Finally, net attributable income totalled EUR 19 million, a figure lower than the EUR 25 million made in 2013.

At 31 December 2014, the Energy Division had a solid balance sheet structure, with guarantee ratio (Total Assets/Total Liabilities) of 1.4x and a solvency ratio (Current Assets/Short-term Liabilities) of 1.7x.

Forecast for 2015

In 2015, the Energy Division is expected to obtain a turnover of EUR 842 million, which should lead to EBITDA of EUR 28 million and a net attributable income of EUR 15 million. Furthermore, we expect to investment EUR 26 million in property, plant and equipment.