Arbro Consulting, as technical advisor for an international group, has developed the Technical Due Diligence of one of the main electricity distribution companies in the country within an acquisition operation of 40% of its shares.
This company, the fourth largest in the country, has more than 700,000 connection points, distributes more than 6.3 TWh/year of electrical energy and has a maximum capacity of 1 GW. The distributor owns and operates an infrastructure of more than 30,000 km of lines, and more than 7.30 GVA of transformation capacity along 123 substations to serve its customers, most of which are located in northern Spain.
With regard to the company’s generation capacity, it should be noted that it has a balanced mix of wind power plants, mini hydroelectric plants and thermal plants, reaching a total of 1,400 MW of installed power.
The scope of the technical Due Diligence work consisted of a detailed analysis of the following issue:
- Overview of the distribution business in Spain, with emphasis on regulatory changes and the remuneration framework and scheme.
- Evaluation of the assets, taking into account their Capex and Opex, analysis of the investment and efficiency programs, and the planned restructuring of the distribution business.
- Distribution system technology analysis, with special focus on system design, integrity, performance and reliability, and asset management.
- Overview of operation and maintenance, including a review of corrective, predictive and preventive maintenance activities, evaluation of maintenance KPI’s and audited maintenance procedures based on reference standards.
- Evaluation of costs including CAPEX and OPEX of existing assets and planned investments, OWC, which is essential for the remuneration of assets, and the new regulatory terms of COMGES and ROTD.