EDP ON 17 - Evora Inovcity

Energy without limits Æ May | June * 2010 N…17

MARKET

Reforms attract more customers in Portugal and Spain

NATURAL GAS

New rules take effec

IN FOCUS

The role of ethic in business

Évora InovCity The first smart city on the Iberian Peninsula The latest on electric distribution

INTERVIEW Miguel Stilwell de Andrade e António Vidigal The next twenty years will see a revolution in the energy sector

Editorial

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On the Front Line of Innovation

n April, EDP launched its Inovcity initiative in Evora– or “intelligent city.” The hope is to launch Portugal as the head of innovative thinking in this field. The idea is to realize the potential in a city for micro-generation from electric cars to smart meters. Until the end of the year some 50,000 EDP clients will have access to new technology, which allows them to have closer control over their energy usage and will lead to better and less energy consumption. This is the first such Inovcity project on the Iberian Peninsula, and a prototype for the rest of Europe, potentially opening new doors for the national PME. With this initiative, witnessed by the Portuguese Prime Minister, José Sócrates, EDP puts itself at the front of international change in the way we think.

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Paulo Campos Costa Brand and Communications Director

This is the first edition of the new EDP Magazine. “ON” is designed to reach across new markets around the world, reaching beyond borders, to the people we work with everyday. From today forward, the magazine will have a common component for every region it reaches, sharing ideas in each country, and highlighting what we do best at the EDP Group. Additionally, each region will have section dedicated to what’s going on inside its own market and as a result we know that all news will be local.

We will keep the graphics updated in the magazine, with evolving layouts and images. We take pride in this new venture, and think you will too. We know you will find it useful and interesting!

Until the end of the year some 50,000 EDP clients will have access to new technology that allows them to have a closer control over their energy usage – which will lead to better and less energy consumption on 3

index May | June

Évora is the Portuguese pilot city for the InovGrid project.

EDP is on the cutting edge of smart grids – and promises to forever change the way it’s customers manage their energy use

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On is a bimonthly publication

António Vidigal and Miguel Stilwell de Andrade explain in an interview the impact of smart networks on the energy sector.

Published by EDP – Energias de Portugal, SA Praça Marquês de Pombal, 12, 1250-162 Lisboa Tel: 210 012 680 Fax: 210 012 910 gmc@edp.pt Director Paulo Campos Costa

Editor Península Press SL Rua dos Correeiros 120, 4º esq , 1100-168 Lisboa Executive Administrator Stella Klauhs info@peninsula-press.com Newsroom Eduardo Marino (editor), Joana Peres (assistant editor), Art Marta Conceição, Miguel Freire and Nuno Teixeira Photography Hugo Gamboa, José Reis, Adelino Oliveira, iStockphoto and SXC Copydesk Ana Godinho Coordinating for EDP Margarida Glória Free distribution in Portugal – 23.000 copies; Espanha – 2.000 copies; Brasil – 2.500 copies Heska Indústrias Tipográficas Campo Raso, 2710-139 Sintra – Portugal. Telf. +351 21 929 89 58 (Geral); Fax. +351 923 89 51

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Exempt from E.R.C. registration by rule 8/6, article 12º nº1-a

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ILUSTRARTE – IV International Biennial for Children’s Book Illustration charms kids and families at the Electric Museum

56 6 forum We asked EDP team members what are the greatest benefits of building smart networks

7 the strings of the market 8/13 EDP culture 14/16 market 18/19 causes APPT21 is an association of supporters of the Social Values Stock Exchange

20/23 innovation 24/33 cover A total overview of the InovGrid, debuting in Évora, and it’s success

38/39 in discussions How business ethics bring four people from different backgrounds together

40/41 human capital The i’m+edp program brings EDP team members together

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42/43 our energy The news that links power plants with growing communities

64 in focus Teresa Pereira, da secretaria-geral e assessoria jurídica do Grupo EDP

34 The framer of the Social Values Stock takes stock, on the initiative in Portugal

EDP joins in celebrating the UN’s International Year of Biodiversity.

34 Learn about the challenges of B Day – May 22

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forum* S M A R T N E T WO R K S · O n a s k s

What are the biggest advantages of the introduction of InovGrid in Portuguese cities? · The InovGrid project seeks to address the new energy paradime with investments in renewable energy, micro-generation and in the search for and use of more efficient sources. The EDP Group is an innovator in the building of smart grids (which are based on the installation of the Energy Box in customers’ homes). Évora is host of the pilot project. · WE ASKED OUR TEAM MEMBERS AROUND THE WORLD – PORTUGAL, SPAIN & BRAZIL – VIA OUR INTRANET AND WE GOT A VARIETY OF RESPONSES

Better energy efficacy and a reduction of CO2 through an increase of renewable energy and the promotion of the energy module forum

Modernization of the electric grid with more information, communication, and technology – and an increase in the quality of service

The economic advantages of the group, are allowing us to reach and serve more customers, offering new price plans and increased service

Substantial reduction of operating costs

40,2%

38,3%

9,1%

8,6%

Greater visibility of the EDP Group on a global scale, demonstrating the cutting edge of technology

3,8%

Commentaries “The possibility to turn on and off energy from far away is of vital importance to the good management of our energy sales. Any commercial losses will significantly decrease.”

PORTUGAL “(...) Our vision in the Control System of EDP Bandeirante is that the technology we have, in operation in the AT and MT networks, is close to the technology being implemented in Portugal. We have to move forward to learn and with the team from Portugal we are learning the processes and the challenges

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along the way a well as the solutions for the total management of the grid for the city Évora (...)”

Francisco Pires - BRAZIL “The big advantage is the evolution which this technology allows. The functionality moves everything close as to how the consumer uses energy, involving them in a more careful analysis of that use – which until now was impossible.

Now everyone can see how to save energy by using the benefits that smart grids bring.”

PORTUGAL

“I would do it all, but if I had just one choice I would opt for modernization... To EDP, congratulations for innovation, its pioneering spirit, and its openness to learning. We just wish for good luck and success!!”

BRAZIL “These situations show that the EDP Group is not stopped in time, but rather, trying to evolve and improve technology, and get it running.”

PORTUGAL

T h e st r i n g s o f t h e m a r ke t

EDP

3,0200

EDP infuses energy into the PSI-20 The national stock market closed up, along with other markets across Europe. And EDP was part of the up swing in the Lisbon Market. Lisbon’s PSI-20 gained by .92%, at 8,344.29 points, with 18 stocks up and two down in a trading session that saw 48.3 million shares change hands. On this day Lisbon had the biggest gains in Europe. On the rest of the Old Continent the movement was mostly positive with the exception of Greece. Investors rallied better than expected results from Intel and JP Morgan Chase, leading to the conclusion that the economy is turning around. The STOXX Europe 600 hit its highest level since September 2008. Only the Athens Exchange was down, losing 2.05%. The Greek Market was penalized for 1-year bond yields, jumping 26 base points to 7.07%, as investors demanded a greater return for financing Greece. The up tendency was spread across yields and investment lengths.

In Portugal the stock that boosted the national average the most was EDP. The electric utility led by António Mexia rose 1.13% to 3.035 euros. u Negócios,

April 14th, Carla Pedro

UBS projects an 8% yield on EDP Renewable UBS investment bank recommend EDP Renewables, with a hold for 12 months and a buy for 3 months.

Analyst Alberto Gandolfi put a target u Negócios,

range of 6.25 euros on the renewables arm of EDP, giving it an 8% return on investment based on Friday’s close.

April 1st, Susana Domingos

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culture edp The most efficient methods and the values that serve as an example

Best CEO in Europe in the realm of energy

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ntónio Mexia, EDP Executive President, has been hailed as the “Best CEO in Europe” in the energy sector. This honor was given by the publication Institutional Investors, based on the votes of more than

1,000 analysts that follow publicly listed companies. The management reputation of EDP in international financial markets led to three more awards, given to Nuno Alves, Miguel Viana and Rui Antunes.

AWARDS RECIEVED BY THE EDP GROUP: – 1st Place: CEO - Sell Side – Energy – António Mexia – 3rd Place: CEO - Buy Side – Energy – António Mexia – 3rd Place: CFO - Sell Side – Utilities – Nuno Alves – 3rd Place: IR Professional – Buy Side – Utilities – Miguel Viana – 3rd Place: IR Professional – Sell Side – Utilities – Rui Antunes (EDP Renewables)

EDP among Europe’s five best t 8 on

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DP is one of the best publicly traded companies in terms of investor relations. The company was named by IR Global Ranking as one of the five top companies in the category Best Ranked Financial Disclosure Procedures in Europe as well as Best Ranked Corporate Governance Practices in Europe. EDP was cited for the quality of financial reports and information it opens, the good results of the Group, and its

best practices in management. This ranking has been made for the past 11 years and in 2010, covered 490 companies in 35 nations with six different categories. Awards were decided by an independent jury, which evaluated results taken from a group of analysts of the selected firms by MZ Consulting. The IR Global Ranking is done in conjunction with Bloomberg, KPMG, Bank of New York Mellon and other respected institutions.

C u l t u re E D P

Pillar of Sustainability in Business EDP market leading companies listed on Euronext, Incorporated, from the outset that the issues of internal control have been regulated in the U.S. market, procedures and controls pertaining to their use in group

"The field of work involves diverse units of business, reports, processes and respective control achieved in 2010."

nvestors prefer investments in sustainable and credible companies; firms that are linked by group governance, using best practices, and that offer a mobilization of resources that allows for the implementation of an Internal Compliance System of Financial Reporting (SCIRF).

The new Corporate Code of Governance, or CMVM, published in 2010, recommended the establishment of an internal system of con-

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trols to maintain the market value of the company, and the transparency of management.

So a new program is evaluating a SCIRF, with the support of an external auditor, with the objective of a final financial report outlining on quality and the strength of the internal compliance systems of the EDP Group.

Our goal is to bring a single system of governance to a diverse set of businesses until in 2010.

The following business units are part of the project: Geografia de Portugal, HCE, NGE, EDP R Europa + HWE and EDP of Brazil with the coordination of our management team.

We are sure that this project merits the involvement and time of all those responsible for SCIRF. We are sure that we will emerge with a positive performance report by February 2011 with emission levels within the external auditor’s range. on 9

C u l t u ra E D P E d p w a y

“The only way to become and stay lean is to produce lean managers” - Jim Womack “A relentless barrage of “why’s” is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often.” - Shigeo Shingo

EDP launched the EDP Way program after taking into consideration a lot of things: the importance of business consolidation, value creation and the goals of growth in terms of execution under the company’s 2009-2012 Strategic Plan. And that is where the Lean project is found. This practice is designed to prevent waste of all of resources and activities that don’t create value for the end customer

Eliminate waste, with everyone pitching in The Lean II is an integrated project of EDP’s Way program aiming to mobilize and involve team members in solving day-to-day problems. Its objective is to develop a culture of continuous improvement, where everyone participates as part of the Lean approach to new business and global groups, by offering access to ideas of multi-level support and consolidation of existing projects.

The lean methodology started in the 1950s, 10 o n

right after the Second World War. Taiichi Ohnno and his precursors Sakichi Toyoda and Kiichiro Toyoda implemented this new method inside their company. Jim Womack, from MIT, analyzed and described this process in the early 1990s naming it Lean Manufacturing (this would later become known as Lean Management). Lean means “without waste”, “without fat.” Using the Japanese principle, initiated by Toyota, this eliminates muda

(wasteful activity), mura (unevenness), and muri (overburden) via Kaizen (continuous improvement, or accurately change for the better). All resources and activities that do not create value for the end customer are considered to be wasteful.

Lean has a bottom-up and incremental approach, involves the entire organization, and improvements are part of everyone’s day-to-day work.

E d p w a y C u l t u ra E D P

Recent events

Expected results • Clarification and values of “Lean EDP”; • Improvement of team members training; • Higher motivation, involvement and communication; • Management flexibility with the methodology; • Adoption of sharing experiences and routines between the several existing and already implemented programs; • Reinstate collaborative knowledge sharing inside the company; • Generalize the cultural practice of root caused problem solving while using better tools – and by getting higher involvement during implementation; • Affirm the Lean concept in all businesses and geographical groups; • Nurture a participative culture focused on the belief of continuous improvement

Normally, waste (activities that do not create value) can be classified in 7 types: over-production, waiting times, transportation, over-processing, inventory, rework, and motion. To these, an additional one can be added: the waste of not hearing the people that actually handle the production or service – gemba (in Japanese).

The embracing and application of this methodology has produced impressive results for the EDP Group. It allows the company to analyze and solve problems, in a sustained way, identifying its root cause, eliminating waste and finding and implementing opportunities for improvement.

The use of Lean at EDP is bringing new management streamlining, bigger fluidity of the supporting processes, increases in terms of effectiveness, productivity and competitiveness. This is crucial, since Lean relates with people’s every day behaviors, and it is the team member’s sentiment that they actively participate and contribute to enhancing their daily performance.

Recently several objectives of EDP Way s Lean II were reached: - Lean extension to new geographies, including on EDP Valor and EDPGas. - Fellow companies participated in an exchange through the organization of 8 local lean days that got more than 550 team members involved and included a Lean discussion forum between EDPD and EDPP. - Guarantee sustainability — by promoting collaborative

Lean II Guidelines: • Generalize Lean at EDP – the launch of new programs (businesses and geographies) • Guarantee sustainability – reinforce mechanisms, role-modeling and structured routines • Experience exchange – establish Lean as a common methodology for operational improvement for the group

Pedro Gaivão Responsável Projecto Lean II o n 11

C u l t u ra E D P E d p w a y

What are the objectives, the teams, and who is responsible?

TEAM

OBJECTIVE

RESPONSIBLE

New Programs

Support fellow companies in new programs and expand the existing ones.

Diogo Cordeiro (EDPP)

Communications Plan

Communication of the Lean principles to team members of EDP and integrate the EDP Way Communications Plan

Robalo Jorge (EDP SC)

Offices Harmony

Top level meetings about Lean, sensitize middle-management, Lean as a way to achieve concrete objectives, site inspections performed by those responsible and support Lean Management routines

Virgínia Andrade (EDP D)

Corporative Lean Manual

A catalog of Lean rules and fair practices – common to the EDP group.

Fernando García Agudo (HC)

Partnerships

Experience an exchange between the universities and Lean at the EDP companies – training, presentations, case studies, and participation in PhD and Masters programs

Diogo Cordeiro (EDPP)

Lean Day

Lean event with guest speakers and industry guests, to discuss the Lean methodology

Training Program

Trainers recommend and outline the type of training (exchange of experiences from the companies that have Lean preparation) and lean integration in topics such as EDP University, aligned with PFM to enrich the Lean training catalog.

Networking lean

Creation of joint routines and debate between several of Lean, by those responsible for Lean at each company Information directory on the methodologies and programs/promote visits to fellow Lean companies.

Filipe Lucas (DSI)

João Gonçalves (EDPV)

Pedro Gaivão

WHEN AND WHERE IS LEAN THRIVING AT EDP?

Means “go and see for yourself" and it is an integral part of the Lean philosophy. It refers to the belief that the Lean managers do not simply rely on filtered and out of context information and observations, but also actually get to know first hand the “gemba”, the location where the activities take place.

Advantages of applying this principle include more adequate decisions and a higher sentiment of belonging to team members.

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João Manso Neto · Sponsor Lean

“ Lean promotes, embodies and gives examples of a more participative environment in resolving problems at all levels of the organization. This way, it translates into a different way of managing where the continuous search for excellence gets attached to a human resources policy that encourages a spirit of initiative in everyone.”

The embracing of Lean at EDP started in 2004.

It began at EDP Distribuição with a pilot project aimed to improve the availability indicators in the repair management area. In 2006, the program kicked off at EDP Produção, with the implementation of a pilot at the Production Center in Sines. Once the model was tested and success was achieved, the program was expanded throughout EDP Produção and at HC Energia. In 2007, new Lean programs were launched at Soluções Comerciais (Commercial Solutions) and at EDP Brazil. And, 2008 was marked by the beginning of the Lean program at EDP Renovaveis (Renewables) in terms of availability, efficiency and reactive energy, as well as at DSI on the distribution systems, maintenance and incidents at Naturgas. Since the startup of the Lean EDP Way in 2009, new teams have been launched at EDPSC, and new programs at EDP Produção followed by the launch of the Lean at EDP Valor and EPGas.

Cultura EDP

United Systems The Information Systems group (DSI) is the front line of EDP’s Corporate Center, which will operate on an Iberian level a real challenge in terms of management and organization

A session held simultaneously with the Lisbon, Oviedo and Bilbao regional offices was the first step toward a new era in information systems for the company. It began a process of cost and process optimization, as well as discussions on ways to maximize synergies and agility through the various businesses of EDP

1.

2.

3.

4.

Greater Integration of Information Systems Develop a strategy for information services integration that maximizes synergies and facilitates the flexibility required to operate throughout EDP’s various business landscapes.

Growth of Efficiencyin Information Technology Increase effectiveness throughout the Group on an Iberian level. (sharing service CPD, communication, service desk, applications).

Security of Information and Compliance Execute an information security plan to assure compliance with norms established under the internal auditing system and finance reporting.

Development of “Human” Resources of Information Systems Develop the human capital behind EDP’s information systems, and follow a plan for the professional development of staff.

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market E D P ’s B u s i n e ss

WHAT IS THE IMPACT OF A MORE OPEN MARKET? A more competitive market is one where various operators can compete freely on price and regulation allows competition. Transportation and distribution remain a public utility, but the power sellers and customers work out unique agreements for supply.

Customers

6 million in Portugal 50 million in Spain

Deregulation opens doors to new clients The EDP works in various deregulated markets as both a retailer and wholesaler. The company awaits the eminent opening up of the power market in Portugal n 2009, competitive market pricing was used to increase the final energy delivery to the market by 68%. The Earnings Before Interest, Taxes, Depreciation and Amortization of deregulated sectors also grew by 61%, based on an optimization of energy sourcing, and flexibility in the power plants of the EDP Group, plus an ability to buy on the open market and invest in mature markets. On the Iberian Peninsula, EDP competes in the supply of electricity, gas, and energy services with different brands and with a large portfolio of goods and services. The Group also faces strong competitors such as Bedroll, Endesa, União Fenosa and Galp in 100% deregulated markets,

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serving some 6 million customers in Portugal and another 50 million in Spain. In Portugal, where deregulation now impacts more than 40% of the market, EDP Commercial maintains the company’s market share through EDP Corporate, in the corporate energy market, and the brand edp5D, in the residential market.

Energy services

The energy services market is totally completive. And, for just that reason, the EDP Group looks to a variety of locations in the evolution of service and with a strategy of differentiation of the energy markets, active promotion

of energy efficiency, and the building of new business models with customers.

EDP Services – Energy Efficiency and Quality Services, founded in 2009, is the department of the EDP Group in Portugal, which opened in the energy services market (regulated and deregulated) under the brand of EDP Services and Consulting. It promotes sustainability, energy efficiency, and partnerships with clients.

In terms of the commercial energy market for power and services, these departments not only represent EDP’s vision, but also act as the front line for customer interface, building relationship with clients and managers alike.

m a r ke t

New business models

Given all the challenges and changes helping customers to change theirvarious challenges encountered in the energy market, the investment habits of consumption and bring new along the way included flexibility of the EDP Group has been in finding technologies and equipment into developing prices that can take new paths to energy efficiency while their homes and businesses. The advantage of new systems as new

The edp5D brand The edp5D sub-brand has complimented the offerings of EDP Commercial since September of 2006 (when the area of service was deregulated). It offers residential and small business customers attractive rates and many value added services. For example, home service plans and energy use reviews for lighting to help our customers save money. The latest innovation is the new “edp5D social “Community of customers”. w Did you know that edp5D could “virtually” go with you to the café?

With the edp5D community every edp5D

customer can take advantage of discounts at a variety of stores and restaurants who are also customers of edp5D. From cafés to shops and hairdressers, the customers just use their virtual customer card and take advantage of special offers. With this project, business customers can get their names out into the community through edp5D’s website www.edp5d.pt., and residential customers can save at numerous businesses throughout Portugal. Beyond the savings, the edp5D program built loyalty through a perception of being part of an exclusive club. This edp5D is innovative, and has set the company ahead in a very demanding

The EDP Corporate Brand In Portugal, the business of electric energy is the end route of the power generated by the EDP Group.

The sub-brand EDP Corporate used the values, partnerships and good will attributed to the EDP brand, while showing a range of ideas, agility and is a real B2B partner. EDP Corporate offers innovative products and energy in a close partnership with our business customers.

In Spain HC Energy and Naturgás, of the EDP Group offer their B2B and B2C customers the following array of energy services:

w B2C

1. Portfolio of Energy Efficiency: a) Ecofamiliess: using new meters to improve energy efficiency in customers’ homes b) Web Initiatives: b.1) Home: Advice, tests, and statistics of energy use on-line b.2) Sustainable Home On-line”: A space online to learn about HC Energy and Natural gas energy use and sustainability. b.3) Planting a tree for each customer who opts to use e-billing b.4) A giveaway of high efficiency appliances through the monthly Enewsletter. c) Battery of Capacitors: Offering capacitors batteries to avoid reactivation fees

inspection and legal coverage c) “Working Business”: maintenance and repair of gas and electric installations. Covers the cost of a required inspection or equipment including extinguishers and emergency lighting as well as offering legal coverage

d) “Works Plan Renewal for Clients”: replacing old boilers and heaters with new equipment at special prices e) Others: “responsible” points in a membership rewards program (crank charging flashlights, battery charger) electronic billing, offers of new low wattage light bulbs, and other initiatives 2. Technical assistance “Service Works” for the repair and maintenance of gas and electric appliances: a) Light works: maintenance and repair of electric equipment and appliances b) “Works dual/Plus”: maintenance and repair services of gas and electric equipment. Covers safety

3. Portfolio of services of decentralized energy production a) Solar Thermal b) Solar Panels link to the grid w PARA

• • • •

O B2B

Energy management Installation management Supply quality Economic and efficiency energy

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m a r ke t

New Rules in the Natural Gas Sector In February The Regulatory Entity of Energy Services approved a revision of the regulations of the natural gas sector from 2010 to 2012

ince the beginning of 2010 the Portuguese natural gas market has been totally deregulated. With the end of regulation and a few months of an open market new entities are entering the market bringing competition.

In February Portugal’s ERSE (Regulatory Entity of Energy Services) approved a revision of the sector rules for the period 2010 to 2012.

Several of the new rules for this period will impact EDP in the market: 1) Changes to the tariffs to use the GNL Terminal at Sines 2) Definition of the process of recouping tax numbers in the subsoil, today and tomorrow 3) Allowing the offering of operational services by regulated firms It is hoped that the revision of the access tariffs for the GNL terminal at Sines will make it more competitive, allowing for a short-term diversification for the companies of the GDP Group.

In terms of the subsoil tax, this is now in the hands of local governments and is supported

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The Portuguese natural gas market is fully liberalized since early 2010

by natural gas customers in towns who pay it in their gas bill.

And, in terms of the operational services, now gas network operators, distributors, and retailers can expand their services – going beyond regulation to offer optional services (such as sales, repair, maintenance and installation).

The Spanish reality

Since 2007, Spain’s natural gas market has been totally deregulated. Distributors dedicate themselves to the gas network and sellers focus on the customer. The Portuguese market has been competitive since the start of 2010.

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causes

edp

Economic capacity and social responsibility

APPT21 – One cause... and one business that makes all the difference!

ince its founding, the Portuguese Association of Carriers of Trisomy 21 (Down syndrome), or APPT21, assumed that just asking for funds was not a solution for the issues at hand. Taking into consideration the reality of this situation, it was decided to focus on the concept of developing a business that had a real social impact. This was the right cause to launch the concept of “social entrepreneurship”.

In the beginning, the initiative brought Portuguese and foreigner designers together, creating pieces that were “genetically

S

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altered”: i.e. watches, cups, clips and furniture, every piece that was produced was unique and all were exhibited at the Calouste Gulbenkian Foundation. The proceeds from the sale of these objects have gone to the Association. In addition to the proceeds, there were signs that the public was responding with excitement for the project, and there was big demand and high interest for the created art pieces and their significance.

The Portuguese Association of Carriers of Trisomy 21 (Downs Syndrome) unders-

tood that there was an opportunity to transform into a true social business, allowing the organization to become financially sustainable. To start a production process where products are made according to the customer’s needs, it was necessary to establish partnerships with retail and industrial businesses, which could distribute high volumes of products. When APPT21 applied and got listed on the Social Stock Exchange (BVS), its products were easily promoted to organizations, museum shops, design places, etc.

Causes

Haiti:

AN EXCEPTIONAL CASE

The tragedy of Haiti’s recent earthquake that killed and displaced hundreds of thousands of people was an event to which the Social Stock Exchange could make an impact. In response, its leaders embraced the Cause. To participate in “SOS Haiti” simply go to www.bvs.org.pt, register as a social investor and select a method of payment. For every contribution made, the EDP Foundation will double-match it. All donations will be given to the American Red Cross by BVS, as this is the institution coordinating Haiti relief operations worldwide.

Efeito, or Effect D, one brand of APPT21, is a project quoted at the Social Stock Exchange “ www.bvs.org.pt “ and is also a new brand of design articles

Effect D – Design effect; effect Difference. A brand of different objects, designed by different artists and inspired by different people ...

Efeito D, one brand of APPT21

This a project of social work that supports the child development center DIFERENCAS, one of the most creative and advanced European development centers, and currently tracks more than nine thousand children in all the country providing help to about 1,200 children with Downs Syndrome.

This project is listed at the Social Stock Exchange “www.bvs.org.pt” and is also a new brand of design articles. Created from different visions of the same concept, it is inspired by people with Downs Syndrome. This is

a chromosomal disorder caused by the presence of some or part of an extra 21st chromosome in the human genetic code. In the same way that this slight alteration creates people who are different from others, a slight change in the code of the word defect, gets a new meaning, that is positive and inspiring. Defect gets transformed into EFFECT, or Efeito D. Assuming the design is a tool that is capable of producing a difference, Efeito D challenged Portuguese and foreign designers to project objects that incorporate in their genetic code a difference that would make them

unique, original and attractive to consumers.

Efeito D, the result of the creativity applied to Social Service, was the theme of a project created by Pedro Bidarra and developed by BBDO Portugal, funded by the Calouste Gulbenkian Foundation, co-produced in pro-bono with Experimenta Design and has the legal support, also pro-bono, of Vda. The brand’s promise, besides to give a bigger visibility to this Cause, was to create a reliable stream of income to fund to DIFERENÇAS™, a child development center that helps and tracks children with cognitive and development challenges. on 19

innovation* An investment in energy co-creation is a big step for EDP in the realm of Innovation. With that as the goal, EDP organized with partner COTEC an event to announce the initiative to the Portuguese Business and Industry Association

Finding the future in co-creation Recently, the paradigm for innovation has shifted in big companies. Companies used to innovate solely through their internal R&D departments, but now they realize there is much to gain in fields that might seem distant from their own area of expertise. This shift has led to the idea of open innovation or rather, innovation that can 20 o n

absorb ideas from a variety of fields. Call it “open source,” as opposed to closed within the structure of an organization. With this move in business strategy comes the concept of “co-creation,” in which the players involved develop much stronger bonds that go beyond the ties between suppliers and customers.

i n n ova t i o n

You can learn by playing Power Trade

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EDP put to use the competitive spirit of its team members with the launching of Power Trade, an online game that simulates the open market for electric energy. The idea started with Pedro Neves Ferreira, director of energy planning for EDP, who saw that in the game there was a simple way to explain a complex market function. The first Iberian Peninsula championship included some 100 players, and only the best made it to the final rounds. During each day of the game, EDP team members had to make big decisions on energy capacity and planning. They were joined by university students, who had a lot to learn by playing Power Trade in a championship that is spreading to universities across the country.

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Of particular interest to EDP, the COTEC network is made up of small and mid-size companies recognized for their innovative ideas and potential

Long aware of co-creation, EDP Innovation organized a seminar on the topic last February through its partnership with COTEC (Association for Innovation in Business). It was attended by members of COTEC’s network of PMEs (small and medium-sized companies) INNOVATION. The event, with around 50 participants, allowed various departments in EDP to present their services, highlighting innovative initiatives and business opportunities for the companies in the network. Presenters included several leaders from EDP Innovation and EDP in Portugal, such as Rogério Carapuça and Daniel Bessa, from COTEC. Representing the EDP Group were Jorge Cruz Morais (administrator of EDP), António Vidigal (EDP Innovation), Miguel Stilwell de Andrade (EDP Distribution), António Ferreira da Costa (EDP Production), Paulo Pinto de Almeida (EDP Services and EDP Commercial), Luís Marques Ferreira (EDP Value), Luís Adão da Fonseca (EDP Renewables) and Inês Lima (Corporate Marketing).

Of particular interest to EDP, the COTEC network is made up of small and mid-size companies recognized for their innovative ideas and potential.

Biogrid at the LIFE Climate Change Seminar v

Naturgas Energy attended the LIFE Climate Change seminar in Helsinki this past January at the invitation of the Finnish Ministry of the Environment.

EDP joined fellow leaders from around Europe to discuss the initiatives of the LIFE+ program of the European Commission (EC). EDP members also presented the BIOGRID project as a vital way to reduce CO2 emissions in the atmosphere. Led by Naturgas Energy, this is the only project for capturing natural gas (biomethane) from organic residues that has been approved by the Commission.In 2008, the EC financed about half of the project’s budget, which is 2 million euros, for development between 2009 and 2011. BIOGRID is a pioneering project in Spain involving Spanish firms, Biogas Fuel Cell and das Astúrias, and two Dutch firms.

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i n n ova t i o n

EDP 2020: innovation path ompanies are capable of creating value when they use knowledge. This was the advice given by leading innovation guru Kjell Nordström at the first EDP Innovation forum, which took place last year in Sao Paulo, Brazil. This event initiated a new era inside the company: specifically, the launching of the EDP 2020 project, which is set to transform the group into a key reference player in the arena of business innovation.

Is this a challenging target? Definitely yes it’s a huge one. But EDP management believes that this is the proper way to build a leading company in the Brazilian energy market. “With this project, the idea is to introduce the innovation strategy inside EDP as an approach to responding to the competitive environment and constantly changing world.

One initiative of EDP 2020 is the Innovation Prize, which aims to stimulate project development in renewable energies, intelligent networks, micro-generation systems and sustainable cities. $R100,000 will be invested annually over the next 10 years, and until 2020, more than $R1 million will be applied to new businesses. “The Prize will follow the Richard Branson Innovation Prize lines launched at EDP Portugal in the beginning of 2009,” according to Laporta.

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The project, which includes a prize of 1 million Brazilian reales, aims to make the company a leader of Brazil’s energy sector Kjell Nordström speaks at the first EDP Innovation forum in Brazil

Electric bicycles, Espírito Santo military police

Electric Mobility

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EDP 2020 also focuses on electric mobility. Following the Portuguese example, which helped to pioneer investment in the electric car, EDP became the first company in Brazil to build a recharging points network for electric vehicles.

Implemented in partnership with the government of Espírito Santo state, 45 electric bicycles were donated to the state’s military po-

lice force under this initiative. The new vehicles replaced part of the military’s existing motorcycle fleet and are being used for security patrols along the coast lines and beaches of five cities of Capixaba County: Vitoria, Vila Velha, Serra, Guarapari and Cariacic. According

to Laporta, EDP has built a public partnership with social impact by providing services to the local population. “EDP is also stimulating the Brazilian economy, since the bicycles are manufactured and assembled right here in Brazil,” he explains.

Innovation Prize Launched: November 2009 Goal: to stimulate the development of innovative projects in Brazil’s energy sector Fields: renewable energies, intelligent networks, electric mobility, energy efficiency, micro-generation, sustainable cities Targets: entrepreneurs Investment: $R1 million until 2020 Support: Centro de Empreendorismo da FGV Example in the Group: Richard Branson Prize, EDP Portugal

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i n n ova t i o n

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Energy facilities with a unique system EDP created an integrated information system, Skipper, that brings together all the EDP power plants across Portugal and Spain more than 60 units in total. In its second phase, Skipper will expand to Brazil and other markets where it may grow to include new thermal or hydraulic power units. The total investment in this project was about 4 million euros. By integrating all the monitoring and management systems of its power plants, EDP will achieve savings in terms of productivity and efficiency.

It also guarantees a constant and real-time knowledge exchange at an international level and brings the diverse cultures of EDP a world closer together.

LABELEC studies electromagnetic fields

lectromagnetic fields (EMF) are always of concern to electricity producers and distributors for the potential risks they may pose to employees or members of the general public who are exposed to them.

Not surprisingly, EMF exposure has been the basis of several studies by the scientific community. LABELEC, developed by the Department of Development Studies, invested in a specialized software package that allows accessing of the priority CEM (Electromagnetic Fields) of an electric unit while it is undergoing installation. With this tool, it is possible to anticipate eventual problems, implement corrective measures or proceed with possible changes during the planning stage, thus reducing probable costs when compared with modifications that would be

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needed after the initial construction period.

CDEGS (Current Distribution, Electromagnetic, Grounding and Soil Structure Analysis), the software packaged used by LABELEC, was developed by the experienced Canadian consulting firm Safe Engineering Services & Technologies. Regularly upgraded with scientific investigation over the last 20 years, the software has a vast number of users, including IBERDROLA, Endesa, ABB and KEMA. The software offers great flexibility. It allows for the detailed representation of all the filiform conductors present in an electrical energy system, taking into consideration its geometric and electric characteristics (such as resistance, electric permittivity, magnetic permeability). This level of specificity allows for the development of a simple underground

cable, aerial lines (including support and ground wires) or even the main substation’s components, including fences, ground loops, blocks, cables and lines, etc. In addition, via its High Tension Department (DAT), LABELEC has been asked to monitor several CEM in electrical installations, such as aerial lines and substations of external companies and subsidiaries of the EDP Group. In addition, has frequently made EMF measurements in private houses located near electric installations, to address the concerns of local residents. The measurements performed by DAT comply with all regulations in force when customers’ complaints are submitted or electrical installations need licensing, as well as in accordance with the annual measurement plan elaborated by EDP Distribution and REN. o n 23

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InovCity

Be prepared for a revolution in the electric sector. EDP is on the front line of smart networks, and promises to forever change the way consumers manage their energy usage. The southern Portuguese city of Évora was the host of the InovGrid pilot program. And if we have one InovCity, in a few years we will be on the path to building an InovCountry. Who know, perhaps the world’s first

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ars powered by electricity, charged in garages by energy produced by the consumer and knowing in real times the numbers on your energy consumption. Remotely activating services, changing rates and your power contract. Knowing that any power issues to your home can be detected and addressed automatically.

Sounds like the world of the future, but it is reality in a city in the plains of southern Portugal where EDP is testing these ideas. It’s a revolution in how people have control over their energy access.

And, that is the promise of the InovGrid pilot project, which brings new smart equipment to the system. That means energy efficiency, micro electric generation, and a flexibility that is fundamental to sustainable development. Évora, the historic capital of the Alentejo, was the host for the project. And, EDP’s objective is to have every Portuguese home wired into the SmartGrid. And when the project is up and running, there will be numerous benefits for consumers. Customers will be able to access their consumption information in real time, and change their usage habits to save money and power by using power at off peak times at a lower price. And v on 25

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And in other countries?

the bill will show real energy use since it is based on readings by the powerful Energy Box – in their home. Energy Boxes are at the point of use and generation, allowing remote activation, and do not need the EDP team to be installed.

Consumers have the power to chose rates, cycles, and billing. All this is possible thanks to smart networks that allow for the control and modification of the consumption and perdition of energy. This smart network has all types of innovative equipment installed long the way. Now the entire grid can be controlled, balanced and outages can be avoided before they happen. The network reacts immediately to changes on both ends, consumption and production – for example when a consumer puts energy into the grid, or needs more power.

With a smart network, the consumers have the ability to be producers too because now they have options to produce power in there own homes. Anyone can install electric panels, and even wind turbines, but with the smart grid they are plugged into a network where they can maximize their production, and cut waste. The consumer/home producer will have at their disposal a selection of new services and plans with prices tailored to their lifestyle. Energy management becomes a snap, given that everything the customer uses or produces is right there online, via the web, picking the best times to use or generate. The concept is guided by the principle of sustainability, innovation, and energy efficiency. EDP also supports customers with planned charging stations for electric cars as part of this new network. The network will allow electric cars to be charged and will upload excess energy - all at the best times to save and so that the driver can figure how much of a charge they will need to get to their destination.

The smart network allows the consumer to control their energy use via the charging stations.

The implementation of this pilot project has no cost to the customer. EDP covers the cost of installation and operational costs of the equipment – just as with traditional electric meters. The cost for the Energy Boxes is not yet set. This is because the technology is getting better each month. Better equipment, based on real feedback and testing – and more production (economies of scale) will mean better boxes, and better functionality.

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While there are several projects being planned around the world, there are no other Smart Cities under way, either in terms of consolidation or conclusions. Boulder, Colorado and Amsterdam are on their way. Stockholm, Sweden is nearing the implementation phase, while in Spain smart meters are being installed in Castellón and in Málaga by the start of 2011

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Why Évora?

A multi-criteria analysis showed that Évora had ideal conditions, from the number of customers, network types, socio-economic indicators, and demographics all indicating that this was the right place to start. But, Évora was not alone – Beyond our 31,000 InovCity customers getting the Energy Box (EB), another 10,000 EB's will be tested in other places

31 thousand 54 thousand Energy Boxes

inhabitants

The InovGrid Team (from left to right): David Estevão, São Miguel de Oliveira, Pedro Vinagre, Gonçalo Lacerda, Filipe Vasconcelos, Dionísio Carneiro, Nuno Simões, Inês Marques, Aires Messias, Lélia Moita and Paulo Campos

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Welcome to the Intelligent City

More information at: www.inovcity.pt

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credits: anyforms design

Évora has the privilege of being the first Portuguese InovCity. In this illustration you can see the main changes made to transform this UNESCO World Heritage City

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The Sertório Square in Évora, was the venue of the InovCity kick off

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Q&A Energy Box Forget the old meters. This little box will change how we see and use energy. Not sure? Here are the answers...

As an EDP customer with an EB, will I be without power during the installation?

An EB installation is a process identical to the current meter replacement process. It is just a brief period without power.

Will the installation of an Energy Box impact the way I am being billed right now?

As a rule, your billing will now be based on your actual usage. Except in a case where we cannot get a real reading, the billing process will be just as it is now.

Will my bill be different because I now have an Energy Box?

No. No, the billing process is unchanged.

Will the meter reader still come every month to read my meter?

No, once the system is up, the meters will be read automatically.

Will the Energy Box have some sort of limit, either a maximum or minimum amount of power I can use?

No. Will the installation of an Energy Box mean an extra cost to customers?

No, EDP will cover all installation costs.

Will the Energy Box be a different size than my old meter?

The Energy Box is the same size as traditional meters.

Can I ask to have my meter upgraded to an Energy Box?

In this phase, only the households in the pilot program will be getting an Energy Box installed.

Can I set up the installation of an Energy Box for after work hours or on the weekend?

Under the law, we can only install between 8:00 a.m. and 6:00 p.m.

With an Energy Box can I check the billing, rates, and cycle?

Yes. Readings, tariff type, and billing cycles pop up on the screen automatically and are there for the customer.

How do changes made on the installation level show up and are they available in real time?

Any changes would be completed, under normal circumstances, in the same day the request was made.

With Energy Box will the rates change?

Can I get my bill on the same day?

I have an open market contract.

Will my Energy Box be included?

Yes. The operation of the network is the responsibility of EDP Distribution and applies to all power sellers’ customers.

Traditional meters can fail, and not read usage.

With the Energy Box are anomalies less likely?

Anomalies can always happen. The advantage here is that the Energy Box network can detect the location and likelihood of an eventual anomaly. A traditional meter can only do that at the scene.

In terms of account service, what are the advantages of the Energy Box?

The Energy Box puts the consumer on the network, with rapid detection and resolution of anomalies.

Will it be necessary to communicate the meter reading in the future?

No. It will not be necessary to communicate a reading. It will be done just in the instance that there is no real reading of the Energy Box, and that would be used for billing.

There is no change to the rates between the customer and the power seller.

Yes, you can keep the same billing dates.

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InovCity

What is being said about this project?

ANTÓNIO MEXIA President of EDP “The intelligent electric network is transforming Évora into a showcase and getting the attention of Europe’s big players”

JOSÉ SÓCRATES Portuguese Prime Minster “It is a global, a real front line, innovative project.

EDP designed, thought and conceived this project with a main goal, to be on the cutting edge of technology.

This is exactly the kind of ambition we need”

CARLOS ZORRINHO Secretário de Estado da Energia "Não voltaremos atrás, à dependência energética total de combustíveis importados"

MIGUEL STILWELL Administrator EDP Distribution

ANTÓNIO VIDIGAL President of EDP Innovation

"This is the kind of project that is a global baseline in the realm of smart networks”

“This is a mighty revolution in the energy sector. I think that in the next 20 years it will be to energy what the last 20 were to communications and informational technology”

JOÃO TORRES President EDP Distribution “We are talking about a device, installed in a person’s house which is a meter but does so much more. You can change your contract, change the power usage, change the rates, and get information right in your home, or anywhere via Internet”

Strong words on an event with a lot of energy

JOSÉ ERNESTO D’OLIVEIRA Mayor, City of Évora “In Évora, we made room for creativity and excellence. We want to carry forward the values of centuries past, into the future. It was with tremendous pride that I got the news that our city had been selected to lead the InovCity project. I know that the population, always ready for the next technology, will embrace this opportunity to be on the cutting edge of technologies and whose impact will go way beyond…”

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JOSÉ PEÇAS LOPES Coordinator of Energy Systems at INESC Porto

“We want there to be diversity. This project can reach people in both rural and urban settings.

In the same way it is not limited to traditional households – because business clients are also welcome”

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Partners’ forum 1. How would you describe InovGrid?

2. What was the result of your partnership with EDP? 3. What would you like to highlight in the project?

– EFACEC, LOGICA and JANZ/CONTAR – to develop equipment. These partners guarantee the integration and coordination on the ground with the installation and operation of all the components and promises to offer real benefits in the evaluation of the project.

w INESC Porto 1. This is a brave undertaking, which enables better technical and economic distribution of electricity, the very platform which will allow for advances and development of the concept of SmartGrid.

2. This was an excellent partnership, which allowed us to put into effect concepts that we theorized through research, even if the work of was not always visible to the public.

3. The platform allowed us to test advanced theories in a real environment – in terms of managing the distribution network and placing Portugal in the position of a world leader.

w EFACEC 1. InovGrid brought together all the partners to meet European objectives for sustainability, energy efficiency, and setting up SmartGrids.

2. The partnership with EDP allowed the

partners to take a leadership role on an international level with practical results in the realm of SmartGrids.

In terms of EFACEC, this opened a new horizon for us in business, one that we were well suited for with our expertise in automating energy networks.

3. I would point to the environmental, social and technological benefits and the quality of service – all of which is great for Portugal on an international level; as well as all the partners in the InovGrid, including EFACEC.

w CONTAR 1. In line with SmartGrids, this was a bold move.

Now, in the implementation phase, the effort responds to the need of change and is pushing progress in the electrical industry: The viability and quality of service, the environmental sustainability, the empowerment of the customer, and the

increase in competition.

2. Really positive and innovative.

3. The capacity to build synergies through this project between Portuguese firms gave a big boost to the shareholders, partners, workers, and above all the people of Portugal.

w LÓGICA 1. InovGrid was a break with old ways that had not changed. It opened the door to new ways based on innovation with lessons for the world on managing new energy networks. It is a magnificent example of cooperation between companies and shows the real leadership role that EDP has on a global level in the areas of innovation and energy.

2. Developing this network was a huge opportunity for us to grow our capabilities in the areas of smart networks, telebilling, reading and other new services. For us at Logica the partnership with EDP haled to make us an

important exporter of technology, basically helping us to get a deeper knowledge of the business. The International Utilities Competence Center in Sacavém is a tremendous example of this, as it was there that Inovgrid was unveiled to some of the biggest utilities in the world.

3. The synergies of the partnership, and the innovative nature of it are worth noting. The long road to the launch of InovCity in Évora and the public role of the partnership with EDP and the other team members were important too. I must point out that the InovGrid project is still ongoing with its phased implementation for the InovCity and will eventually reach the 6 million clients in Portugal.

But in this early phase EDP is working with INESC Porto to develop it with three industrial partners.

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Who’s who Social Stock Exchange

CELSO GRECCO fter graduating with a degree in communications and marketing, Celso has always aspired to create a project in the Social Solidarity field. His dream came true with the Social Stock Exchange, a concept that he created and that is already revolutionizing the way people look at socially responsible companies.

After Brazil, it was Portugal’s turn, where since last November, more than 18 institutions had been involved and more than 100 thousands euros had been invested. EDP Foundation has a track record of supporting socially relevant projects and this is, without doubt, one.

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What is a Social Stock Exchange?

The Social Stock Exchange (BVS) is a replication of a stock exchange. But, instead of ha-

of all of the investments, and can observe what happened with the money invested. It provides the investor with copies of invoices (for example, how many computers were purchased by that organization) and reports on the impact of the money invested (for example, how may children began school).

Is this like setting a philosophy that believes that it is better to teach how to fish rather than give out the fish?

We’ve changed this saying a bit. I often say that BVS’s proposal is not to look for organizations that give away the fish or teach how to fish; instead it is to seek corporations that challenge the logic of the “fishing industry.” For example, we have seen organizations being di-

A exchange to do good In 2008, the first conference of social entrepreneurism was held in Portugal, highlighting Bolsa de Valores Sociais (Social Values Exchange). On the dais were a director from Euronext and a member of the EDP foundation, and they took an immediate interest in the project.

In less than a year the project took flight and now can be reviewed at www.bvs.org.pt

ving listed companies, there are listed social organizations. Instead of having investors interested in a financial profit in the market, there are social investors, people concerned about the fate of their donations and with the end result. In this environment, donors are encouraged to become philanthropists, but there is a new twist: they are people that are concerned with the total impact of the money that they donate.

How can social investors see the results?

From the moment you become a social investor and register at the website (www.bvs.org.pt), you have your own entry page. Through it, one gains access to data listings

gitally inclusive. So, you start ask: where will these young graduates work? You gave them the fishing rod and taught them how to fish, but they live in the desert. The problem is that you need to challenge the logic of the fishing concept and say that it is not worthwhile to do things this way, because there are no long term perspectives for them. You have to think of something bolder, craft the answer to the situation.

How can a potential investor reach BVS?

All the information about BVS and listed social organization’s portfolios are available at the website. It is possible to select the project by theme or geographic area, and then be directed to the websites of those organizations v

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Ciência Portuguesa Quem é Quem

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Quem é Quem Ciência Portuguesa

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A SOCIAL ENTREPRENEUR Celso Grecco was born in 1962 in São Paulo, Brazil. Worked in Advertising and Marketing but was always involved in the social services sector. He was a board member of several foundations and founded Aldeia do Futuro in Brazil. “I always dreamed of becoming rich so that I could do just this type of work.” In 1998/99 he started noticing his clients’ interest in doing more social responsibility work. Motivated, he sold his agency and founded Atitude, a consulting firm dedicated to thinking, planning and creating social responsibility projects.

Today, we can say that his dream has come true. He became a “social entrepreneur,” a term created by Ashoka, an American association with a network of more than 3 thousand social entrepreneurs around the world. Ashoka focuses on people that have innovative ideas. This was the case of Celso Grecco, who for the last decade has had the privilege of being employed to do what he enjoys most and to work with the “most wonderful” people in the world. As he admits “I spend all my time with social service organizations and entrepreneurs that want to challenge the world, that don’t accept the social exclusion or poverty. On my path I’ve met a large number of angels.” The compensation for him is clear, he makes a difference.

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to find out more about their own programs. It also lets you acquire all stocks that you want from any project that you like. You just need to pay by credit card or via wire transfer, and then start following the progress of those “stocks.”

How did this innovative idea come to light?

This idea emerged in Brazil, in 2003. That year I created the first BVS in the world. In those days Bovespa, Brazil’s Stock Exchange, was starting to realize that the movement of social responsibility was gaining strength, mainly in terms of the valued given by company stakeholders. Many wanting to participate in this social movement, and Bovespa asked me to develop a social responsibility platform. So, the idea I suggested had its own core business platform as the starting point. In any Stock Exchange in the world, there is al-

Social Stock Exchange Who’s who

ways an environment for creating value. On one side there is the listed company, that needs to attract capital, and on the other side there is an investor saying, “in all these companies I can hold shares and I prefer the ones whose values I share.” The stock share itself is an environment that promotes the connection between the organization and the investor that creates the rules and ensures its transparency.

What critical principal makes social responsibility socially important to the company?

Most social projects are peripheral to the business of the company. That said, a company is about business, but that is not an excuse not to give back. Giving back can become so distant an idea that it falls off the plate. You draw up a budget, let things happen as they will, and go on with your core business. That is why we

Exchange. Companies and the media have been wonderful, and joined in big numbers… in fact we are going to have a program on RTP2 TV, and also a page in the Jornal de Negócios newspaper every week. Folks get to understand that it takes a lot more coordination to make a real impact. When you hand out food, or you have an aid organization, you address the symptoms. But who will address the causes? The BVS heads right to the cause, solving and healing problems.

Can you offer some examples of organizations you have helped?

Yes, the Red Nose Association would be one.

The idea is that laughing heals. So, we got them listed on the market. But we changed it to Laughing is better? The “?” added a lot. So now they will test that idea with the Minho University, the Braga Pediatric Hospital and the Institute of Children’s Studies over two years. And that

brought in some 100 thousand euros. That is still small, but the founders here are very motivated. First in the years end, there were lots of year-end holiday tasks going on, and that brought in strong results and mobilized people. Second, the BVS is such an innovative concept that I have no doubt whatsoever that it will reach a whole new generation of donors.

To business, the BVS makes sense, since they are the ones who join it. They know how a budget must be justified and have metrics. They also know that if you ask for a certain budget – you can dedicate some 10% and now we have some 400 people registered on the site. An interesting but small number. But, a good start.

What has EDP’s role been in this project?

EDP has been the big force behind this project. The EDP Foundation was the catalyst behind the idea. My first conversations with Euronext were about how there were no condi-

EDP saw that Portugal really needed a project of this type. Be cause of the financial world crisis.

The company agreed to mobilize the funding and the partners to make it happen. Our base of operations ended up being the EDP Foundation.

turned to Bovespa: what we can do best for society is to lean on the business talent to help solve problems. Create a market of socially conscience stock, use your infrastructure, and talk to people who have financial resources to apply to nonprofits The first BVS in the world became a UN case study. And, not long after the UN recommend it be applied in other places around the world, something that had never happened before. So, last year it came to Portugal, through Euronext.

So what are the results?

It has been very interesting, the Portuguese market has worked out better that the one in Brazil on a few levels. First, it has a better technology at the base. Second, the Portuguese are more united than their Brazilian cousins - more solidarity. Also, given the economic crisis in Europe, Portugal realizes the immediate need. And this understanding of urgency brings great results to the Portuguese

will put a smile on kids faces, and the hospital staff, too. It will alleviate some of the stress of the medical staff that help kids with cancer, and assist them in dealing with the emotional issues they face. So what is the benefit of helping kids and hospital folks smile? There are clowns all over the world, but no one ever tried a study along these lines. Okay, so it’s a nice idea… but what is the real worth? . Well, we will find out, and tell the whole world!

So, how many organizations in Portugal work with BVS? Right now there are18 and our goal is to reach 30. When the project hits 100% in terms of receiving and using resources, what emerges is a new organization. There can only be 30 organizations maximum because of operational resources and staff.

What is the total value of the investment?

We launched this in November and have

tions to get financing for the project.

EDP said that Portugal, being in the midst of the world economic crisis, needs this type of a project and they got the resources and the people together to make it happen. Our base was the incubator space we were given in the EDP Foundation. And, EDP brought in more resources from the Calouste Gulbenkian Foundation.

So what is next for the BVS? We have a lot of options inside of Euronext, which is a network of markets in Amsterdam, Brussels, Paris and New York. Since the organization was founded they have been looking for a social project to share what they do so well. The issue is that the problems of one city or place are not the same as another. The BVS of Portugal is a pilot that can be replicated by Euronext. I think the next steps will be taken in Europe, and there is talk of taking the concept to other nations of Portuguese expression in Africa. o n 37

in discussion PROF. JOSÉ MANUEL MOREIRA · Business Ethics Expert

Ethics. How do you “measure” progress over the long term and not

just in the short-term business of a company and its team members?

Some people may question if Companies now in terms of professional dethe current economic financial velopment with system of give increasing crisis is the result of the colevaluation along the way. lapse of our cultural and moral attention So, how does one guaransystem after focusing only on the possible tee that the work of employthe short term. That might ex- tension between ees is in sync with the ongoplain the proliferation of “im- motivations ing values of a company? mediate results” that are not so and results Should the evaluation critegood over the long term. ria be quantitative or qualiAnd that begs the question, tative? is the crisis is the result of a rush to make In a world of production efficacy where short-term profits without a long-term vi- the creation of worth is well viewed as insepsion? arable from the concept of sustainable deYes, incentives work, as long as they are velopment we cannot stray from a culture aligned with a long-term outlook, especially based on the idea that “what cannot be 38 on

measured does not exist.”

The result is often solely quantitative results.

So, the challenge is of measuring ethical progress over the long and short term of the company and its team members.

At what point do we measure the intangible? And, if not, how do we know we are heading in the right direction?

This is what must be considered on the way to balance out ethics and incentive. There are bad motivators, but also good ones that help us to reach our company goals, and there is the trick that in working to achieve rewards, we can lose sight of what we are trying to do.

Working in the public sector was once a simple path of public service – one that gave value to a mission. But today-even public service has become measured by results.

One way of looking at it is to see beyond results and understand how they were achieved: From participation, to the use of individual talents, and the ethical dimensions.

It would be as if the EDP Group, with the outstanding motto “we are what we do”, were to add; “and also the way that we do it”. Maybe it’s not simple, but in the long term it makes sense.

Look, at it this way, the long-term goal of motivation and results can cause a real clash in many modern companies.

But, sure it’s too easy to get off track and lost in the results and put ethics in the backseat saying; “the ends justify the means.” We are always learning, and we know that the best way to learn is to study. But, if we tell students that passing the exam is all that counts, then we send the message that cheating is ok, as long as you pass. It is the process, not the end result that counts.

That’s why anyone who takes pride in their work knows the worth of discipline, principals, values and the culture of a business.

A variety of outlooks

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Carlos Loureiro

Figueiredo Soares

Vanessa Pina

Æ EDP Ethics Offer

Æ DSA Management (project Ethics EDP )

Æ EDP Distribution (Newest member of the

The excellent introduction here shows the complexity that thinking about professional ethics requires.

It is not a small challenge to measure professional ethics.

It is often a confirmation that every “should be” in the light of a code of ethics give us a practical guide and a yardstick to acquire good habits and an internal ethical compass.

This firms vision is like leadership—it leads to the creation of values, innovation and sustainability. We have a social license to operate that is jointly renewed. That means that we are always seeking – excellence, responsibility and integrity – proportional to the work of the company. We work in open transparency.

We are responsible for our actions.

Just as in our personal life, in our professional life there must be balance. Balance between our goals and how we achieve them. An obsession with hitting back may lead us to skip some, and diminish the quality of our work.

After all, the belief in the virtues of ethics is on a greater or lesser scale by how the company integrated it into real life. It is that which get us through the most challenging of situations.

I think of the lesson from here at EDP are the strength of our ethical code; Our procedures and how we implemented the “EDP Ethics” project. The words of this code give us the inspiration to take to heart the values of the company as we move ahead on the paths we walk.

And, on-going success implies that we are always reviewing why and how we do things – from the business level to our structures and to our organizational procedures, interpersonal and management. Everything must align with the values of the company.

Work is not a hole to be filled, rather it is a journey where we keep our eye on the way we get things done, and the quality of our work.

By this I don’t just mean the time it takes, but rather how we structure it to address the tasks at hand.

A professional career has moral and cultural values at its core. In fact, the definition of priorities needs to be our priory when we start a new project - we need to set the goals to be reached as we move forward.

José Manuel Moreira is a Professor of Politics and Social Science at the University of Aveiro. He had contributed to the reemergence in Portugal of four business themes: economic and business ethics, Austrian business traditions, economic analysis of politics and governance, and public policy. He is the co-author of some 40 books, and more than 100 magazine articles in a variety of publications around the world.

It would as if the EDP Group, with the outstanding motto “we are what we do”, were to add to that: “and also the way that we do it”. Maybe it is not that simple, but in the long term it makes sense.

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human capital

The program i’m+edp (sou+edp) brings together all team members of the EDP Group in support of a common culture, vision, dialog and strategy. It began in Portugal last January and has spread to Spain, France, Belgium, Poland, Romania, and Brazil

I

n a new effort to embrace the culture and values of EDP, the company will continue to identify, share and align points of view on the challenges of business across the geographic boundaries where EDP operates between 2009 and 2012.

The entire 12,009 company team members will take part in a i’m+edp half-day work session, in partnership with Mychange, a firm that specializes in strategies for Change Management directed to the individual, teams

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and organizations.

EDP chooses to use the “Learning Maps” technology with content designed to help build dialogue. But, not only: The facilitator and team members of the group had a mission with an even loftier goal – to get the i’m+edp to the entire company. And, to come up with a question and answer challenge.

EDP Strategic Pursuit – allow us to get to know the numbers, projects and other facts associated with the activities of the company.

Through these sessions, beyond the common vision and greater knowledge of the company and its values, comes another breakthrough. ClickIdea – a game of ideas that recognizes good thinking in how we do things at EDP, and how we can do even better.

The main points of orientation

The success of this initiative hangs on two crucial points as important as North and South in getting to where you want to go: the element

human capital

… e vocês? …y usted? … and you?

HR communications More is better The Human Resources Department is working on a new HR Manual for the EDP Group.

It is a work whose time has come – and will be offered in three languages (Portuguese, English, Spanish) to guarantee lateral communication across a variety of global areas.

It shines a spotlight on the HR process, sharing the company’s mission and values clearly to its various team members around the world.

The Manual is designed to do more than lay out a plan in terms of managing staff; it aims to stimulate a team mentality from practice to policy. The great accomplishment here is the ability to build consensuses though it simplified structure and ease of reading and design.

This effort has had the input of 6,679 partners in Portugal, 1,214 in HC Energy and 414 in Naturgas.

And, it is reaching out to our partners is renewable energy and EDP in Brazil

of enabling – “Energizing” – with Chairman of the Board, António Mexia, who was directly involved in a variety of work groups. Only with these points did we get to where we had to be.

Up to now, in Portugal, this successful process included the input of 6,679 team members, the motivation and input of 226 “energizers,” held in 41 different settings, throughout 31 localities. In total, we held 1,362 sessions.

In Spain, to facilitate, some 65 team mem-

bers from HC Energia with 24 from Naturgas, joined together to promote the sessions to some 1,241 of their coworkers from HC and 414 from Naturgas.

This May, there will be the chance for team members from EDP Renováveis (Renewable), including professionals from across Europe and the U.S. to meet in Spain. Also, in 2010 the initiative will reach out to Brazil.

So, i’m+edp will reach around the world to every EDP Group member. o n 41

ourenergy* Annual number of visitors: 2004

35.743

2005

26.884 19.545

2009

2008

2007

2006

28.959 35.583

39.958

Eco-management and Auditing

Plants welcome more visitors

In January, The Sines Power plant was the stage for the presentation of a Communitarian system of Eco-Management and auditing, or EMAS. The work group took advantage of the occasion to discuss the conditions necessary under the certification. The team was made up of: Jorge do Carmo (plant director), Hélder Faia (work group coordinator), Carlos Leal, João Furão, Augusto Grácio, Mário Jorge and Maria José Vales. Together they are working to obtain the EMAS certification work in Sines by the end of the first quarter of 2010.

During 2009 EDP Power Plants welcomed 40,000 visitors, mostly 2nd and 3rd grade students, and some upper school kids as well.

And, they were not just from Portugal. In 2009, the number of foreign visitors, led by firms associated with the sector came to check out the EDP facilities. The biggest attraction was the damn at Alto Lindoso that welcomed more than 14,500

visitors. In fact, the number of visitors grew despite a dip at the Carregado and Setúbal plants. The interest seems to be in our hydro plants. As an example, our Ribatejo facility doubled its 2008 numbers.

An exceptional way to promote the group and it’s work to the general population – and one that is ever more relevant.

State Visits top EDP Facilities over the Past 5 Years

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2004

2005

2006

2007

2008

2009

Sines

2576

1408

1116

1542

1320

1964

Setúbal

1048

584

557

100

1066

515

Ribatejo

700

1230

1784

2268

1453

2723

Carregado

1903

961

1088

1044

1328

919

Douro

7701

7200

8290

6988

7475

8277

Tejo-Mondego

10123

7294

6710

7297

10516

8271

Cávado-Lima

11692

8207

8101

9720

12425

17289

TOTAL

35743

26884

19545

28959

35583

39958

our energy

What does Peixe Angical HAVE TO TEACH US?

EDP Production was recognized by the Portuguese Environmental Agency (APA), for its EMAS certification as an excellent environmental manager in a seminar called the Marco Infrastructure Seminar of EDP University.

The seminar was held in Lisbon on January 22, 2010 and was overseen by João Manso Neto, president of the administrative board. In its first phase, the program of activities looked at the registration of the EMAS at EDP Production at the thermal plant at Central do Ribatejo, and the dams at Alto Lindoso, Miranda do Douro and Cascata da Serra da Estrela (Lagoa Comprida, Sabugueiro I and II, Desterro, Ponte de Jugais and Vila Cova).

When we plan a dam we plan for a better future EDP has a website that offers everything on new dams, geothermal and wind plants. www.a-nossa-energia.edp.pt offers technical specs of all the EDP projects, and as EDP moves forward with a set of Principals of Sustainable Development. The ways we offset our carbon footprint are but a click away. As are the local economic investment initiatives.

v

Excellence in environmental management

v

There is an ancient craft of weaving grass into products. A sports fishing group, 128 families housed, 135 miles of road rebuilt - no small feat.

Not even a court case declaring extra compensation. This the good news out of the Peixe This the good news out of the Peixe Angical project in Brazil, EDP’s newest dam.

At the end of the decade, when the EDP Group will have 11 projects almost done in Portugal what will be the final conclusion? “Our ambition is to do better, really because we know so much these days”, says Sérgio Figueiredo, president of the EDP Foundation. “Avoiding mistakes” was what the Foundation had in mind when they brought Eduardo Santarelli to Portugal. For two days the environmental manager at EDP of Brazil talked about what he learned at Peixe Angical to the EDP Production and other Group members, including the dams committee.

Figueiredo explained how at Peixe Angical the 30 programs both social and environmental all had the same values: equity and technical, criteria in the process of compensation, an open and transparent negotiations process with the local populations, respect of the local authorities, and following local contracts to the letter. Plus, lots and lots of communication – like sitting down and talking whenever necessary.

Follow the wave of our energy http://www.a-nossaenergia. edp.pt/homepage/index.php

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Spotlight A conversation with

ANTÓNIO VIDIGAL MIGUEL STILWELL DE ANDRADE “The next 20 years will see a revolution in the electric sector” If the last 20 years were a radical change in terms of information and communication technologies, the next 20 will see a revolution sweep the electric sector. We know what the future holds, with new smart networks impacting over daily life…

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Spotlight

What impact will smart networks have on customers?

Miguel Stilwell de Andrade – Smart networks will impact the customer on four levels: First, on the quality of commercial service level we will see tele-controls–meaning the allowance for changing the contract in terms of potency, connections, and other changes. All can be made remotely, and immediately via the Internet or by phone.

So, within this the customer no longer needs to call a service technician to make a change.

Second, in terms of energy efficiency the consumer will get all kinds of information about their power use. Beyond a bill, they can look each day online at how they are consuming energy and they can make adjustments as a better-informed and aware consumer.

Third, we now have the conditions to build a new market of electric services and rates – all more flexible and meeting the consumers’ lifestyle.

Can we start calling this a revolution in the area of energy?

IN CHARGE OF DISTRIBUTION Miguel Stilwell de Andrade was born in Lisbon. He has a degree in Mechanical engineering from the University of Strathclyde (Glasgow, Scotland) and an MBA from the Sloan School of Management at MIT. He is married, with two children. Miguel began his career at the UBS Investment Bank in London. Currently, he is a member of the governing board of EDP Energy distribution, EDP Innovation, Portgas and president of the InovGrid ACE. Before that Miguel filled various positions in the EDP Group – including most recently the areas of Strategy and corporate Development, M & A for the company. He oversaw various parts of the acquisitions and spin offs of EDP from 2005 to 2009.

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António Vidigal– It is a huge revolution inside the sector. I think that in the next 20 years we will see happening with energy the same shifting we saw over the past two decades in communications and information technology. The electric sector, more specifically the distribution company, will be reinvented. I think every day about how if by some miracle Marconi and Edison were to come back some 100 years later what would they say. Marconi would be stunned by the communications evolution, while Edison would recognize his patents still at work. The sector has not changed radically because it works so well. The paradigm was always the optimization of cost and to seek viability. And, on that level the sector is perfect.

Why did it have to learn to use the Internet? Because there were contents that were not found in the central database, so we needed a more flexible system. Pretty much what we call “plug and play”. All you need is a smartphone or a laptop, take it anywhere and log on the Internet. And this is the challenge to distribution. With sustainable sources we need to build an “Energy Web” as was done with communications two decades ago. We are talking

Spotlight

about an Internet of energy. The InovGrid is exactly an example of that.

What do we have to do to change this paradigm now?

AV– A bunch. First, need. The issues of climate and CO2 emissions oblige us to decentralize forms of generating – which are much more expensive yet have a much smaller climatic impact.

So, with the growth of environmental awareness we see that energy is still scarce.

When I was at the Superior Technical Institute in Lisbon, IST, we never discussed environmental regulations. Cost was key, not the environment.

MSA– No one talked about CO2 in days past. Today it is a top priority of any company especially in the energy sector.

If you look at the European Union’s 20-2020 Plan of Portugal’s National energy Plan, all focus on renewable energy reducing use, and reducing CO2 emissions. All this leads to a need to find new technologies, and to better use the ones that we already have.

Do smartgrids solve this problem?

reading. What is pioneering here is the intelligent networks and the integration of new equipment and sensors in the distribution network.

There are few projects like that around the world.

AV – The example I like to give is the elec-

tric car, a place where Portugal is ahead of the curve - so, what does a smart grid enable? A big problem in an electric grid is that it is hard to warehouse power. It goes right from production to consumption, via distribution.

Warehousing it is very expensive and often costs more than a million dollars to build storage per Megawatt. So, what if everyone had an electric car, all parked in a garage? The cars would be on the network to charge their batteries, and they would be on line to get the incremental price of energy too. If the cost of power was high, the car could “sell” energy back to the grid, and we could charge it at night to get cheaper power off the grid. So, if we had more renewable energy the cost would be much lower, and electric car would charge by night, and return access power by day. This was not even part of the discussion a few years ago, and now InovGrid makes it possible.

It makes sense to invest in possibilities and options and see things in more than one direction.

What does EDP get out of this process?

AV – Customer loyalty. EDP is a very ethical company, and we are 100% committed to the environment. Today we are the world’s third largest wind power operator.

We sell renewable energy and innovation.

We are here to help and solve problems.

This is a global problem. We don’t want to be part of the problem, we want to be a part of the solution.

MSA– I totally agree – we want to be in on the solution, not part of the problem in the first place. Look at our role in the electric system, EDP Distribution has a role to play in responding to issues that come up. And that is good for everybody.

Can we say that in the future all Portuguese will have an Energy Box at home?

MSA– Our idea is that consumers will have something similar to the Energy Box.

“What is pioneering and distinct is that this is a project of intelligent networks with the integration of various equipment and sensors in the distribution grid. There are not a lot of projects that have been developed on this scale around the world”

How is this project pioneering on an international stage in terms of how it related to other projects?

MSA– There are lots of international projects with tele-access and remote access and

MSA – Imagine a neighborhood where every house had a solar panel on the roof. A big cloud comes along, and production falls.

The sun returns and so does the production.

So, you need some sort of system to control and manage energy consumption, if the grid is thrown off, and has problems with the supply of energy. So a smart grid allows us to make better use of the same energy…

AV – … and let a lot more renewable power into the grid. A real case: in the Algarve, in a resort village, where being green is part of the sales pitch. Each house has a solar panel, and there is lots of sun. Assume that from May to June the houses are empty, and it is very sunny. The system can be overtaxed, making power but not using it. With InovGrid the production is sent to the grid or powered down, saving energy and effort.

Will the cultural change be a challenge?

AV– Who, 20 years back, would think that every Portuguese would have a cell phone today? I have no doubt that this change will take place. If the model offers value, then people will embrace it. And, that model will have a lot of potential, too. The technology that we are talking about here already exists on some levels – television and cell phones.

We might see the day when we can forget that we need to turn off the lights, or the light might go on when someone enters a house.

MSA – Our object here is to make things easier for the end user. And, to see if we can automate many of the tasks involved. People want things to be easy, practical and intuitive. v

MSA – The smart grid is the key to solving the age-old problem. The smart grip unlocks the potential of renewable energy as well as microgeneration and the electric car attached to the network. It also offers better service to the customer as well as supply guarantees. And that has always been a key objective of EDP Distribution. After all, the theme of energy efficiency is that if customer has more information, they have more power. There are a lot of things that have come together to make the InovGrid make sense right now.

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Spotlight

We are talking about changes in Portugal. Can you recreate the system we are discussing in the future in other cites?

AV– That is the way we see things going.

And that is a big advantage for Portugal, and EDP. We believe that the technology is within the reach of Portuguese companies because it is based on software, which is well defined. This can be an opportunity for companies to sell their products to a global market. We are building a test shop in Évora, and this is an effort that may be a huge advantage to the companies that are coming along with us on this path.

Is it relatively easy to build this system in a small or mid-level city - and what about a big city?

AV- There is no difference. Big or small, the challenges are there. In a big city, you have more customers, so the challenges multiply, but from a technical standpoint it may be eas-

a smartgrid, just like it is silly to grow renewable energy distribution without smartgrid – you loose the key benefits.

Do we have an idea about when the number of electric cars will surpass the number of fossil fuel driven cars?

AV– There are a few different studies out there. One from California found that by 2050 the internal combustion car will be gone. So, that means that the age of polluting cars would be over. Many Middle Eastern nations are investing in the auto industry, but specifically in electric mobility, which is the next paradigm. I personally believe in the future of this technology, because the electric car is better in every way than the internal combustion engine car, except for its range. But look at the evolution of cell phone batteries…

Why did you pick Évora as the InovCity pilot? Was there some special consideration?

MSA – There are other cities where we will have more specific objectives. We don’t look at it as one city after another -The next step is to look at the concept, refine it and start spreading it across Portugal.

How long will the Évora pilot project take?

MSA–The pilot is aimed to establish a technological and commercial balance by the middle of 2011 so that we can draw some conclusions and shape a format for new projects and move ahead.

AV – It takes a while to understand the social impact. How people react, if they do change habits, if they accept the new system….

MSA– the project has been closely watched

by ERSE and DGEG. We have to show the value to our various stakeholders, such as ERSE and DGEG and to our shareholders and the rest of the country. Just like António said how customers change their consumption habits

“InvoGrid brings a big advantage to EDP and the Portugal. We believe that it is an industry in reach of Portuguese firms and an opportunity that they might sell their products on a global scale.”

ier. It is easier to put the system into place in a building with 100 customers, versus a rural setting where houses are miles apart.

Getting back to the electric car, will this system help to get them into the mainstream?

AV– It will not promote it, it will make it possible. This type of smartgrid will allow smart charging: a network where the current system just keeps charging, a smart system will stop when the car is fully charged. That is the real “enabler” of electric cars.

MSA– The two go together. The fact that there are electric cars makes the network even stronger. This justifies the investment. A smartgrid helps to get more electric cars on the road, and that is a big plus.

AV – When we start to see the real numbers of these vehicles, which we know is going to happen. It makes no sense not to have 48 o n

MSA– There were several factors, start-

ing with its size and location. The city is an UNESCO World Heritage Site, and has had an electric network in place for 100 years… so I like connecting the distant past to the smartgrids of the future.

How did you get the word out to the community?

MSA– That is an on-going effort. We spoke to all the local officials and offices and our EDP team members on the ground in Évora. We are planning a series of initiatives for the coming months to reach out to the population that they are the first InovCity, and all the benefits that they bring to the people of Évora.

What other InovCities are coming on line soon?

AV – From InovCity we will move to InovCountry. (laughs)

it’s hard to measure, but we should be able to draw some early conclusions so we can analyze it and move forward.

What was EDP distributions biggest challenge in the development of the first InovCity?

MSA – I think the challenges are ongoing.

But up to now it has been technology. We have several suppliers, so we have to be sure that each piece of equipment is tied to the system and works with it. Next, we have to be sure to be well connected to the population of the city and bring our customers real value. Sometimes when a new technology fails, it is not due to the technology itself, but the lack of understanding among its consumers who could not get real value out of it - so we are focused on connecting with our customer about the real value of this new technology and how it helps them. Évora is a university town, was the university involved in this?

Spotlight

MSA – In a growing way: We met with them, and they were involved in some studies. I think it will be a big help in the project.

What was EDP’s role in the innovation of this project?

AV– We have communications and technology architecture… Really, EDP Innovations are more on the technical part. Innovation works here to stimulate ideas and alternatives and to question the solutions at first glance.

MSA– Innovation is always an excellent help. They have had an active role working with distribution and Innovation teams and other partners.

What was the project budget?

MSA- The amount we have budgeted goes beyond Evora but in a few other small pilot programs we have about 15 million euros to test this.

Can there be a self-sustaining Portugal??

AV- I think so, yes by the year 2050.

At that point we should have 100% renewable energy.

MSA– We have the right condition for this: solar, wind, offshore... and last year some 4,000 clients took on microgeneration. I think things are moving much faster than we had planned. And if the price drops more, we will reach that critical mass, and these new ideas will be more competitive with traditional technologies. If we had a greater CO2 tax, then fuel prices would jump as they did in 2008, who knows…

On a personal note, are you proud to have been a part of this?

IN CHARGE OF INNOVATION AV– Of course! My experience over the

years at EDP is that there was never a lack of funding for a good project. This is one of the most ambitious projects in which I have been involved.

MSA- That is for sure. The energy sector is strategic, and there is a moment of history that changed the old paradigm.

I know that EDP is a leader in so many areas that it will go on to lead in smart grids and InovGrid.

General Director of the Director EDP Group, President of EDP Innovation and of Labelec. He has a diversified career, having been crucial in Energy technology and Information Systems. He was the Executive Director of the holding company for EDP. He was on the team that launched the cell company Optimus, where he also served as CEO. He was also the CEO of the next generation cell company Oniway.

He was on the team that built Edinfor (now Lógica Portugal), and served as the company’s founding; For EDP he has been “Chief Risk Officer” a department he designed. He has an electrical engineering degree from the Instituto Superior Técnico (Portugal’s leading engineering school), and is a member of the Engineering Academy.

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foundation* In the first quarter of 2010 the Museum of Electricity (Museu da Electricidade) in Lisbon welcomed 36,000 visitors – an increase of 31% over the same period in 2009, making the museum a leader in Portugal

M U S E U M O F E L E CT R I C I T Y

One of the most visited in Portugal

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EDP Foundation

World Press Photo 2010

Science and Education

Celebrating the Republic

From May 6, 2010.

The best photos, selected by the WPP Foundation, in the world's largest photojournalist contest. This will be the 4th consecutive year at the Museum of Electricity.

From May 14 to June 7, 2010. The museum will celebrate the “Month of Science” (O Mês da Ciência). The biggest month of the year will be filled with the 1st Rally and the 2nd Solars Festival (Manor houses), 4th National Science Challenge, 3rd Children’s Festival, and the 14th Physics Olympics.

The Museum will present an exhibit called POVO or PEOPLR from the first week of June until the end of September 2010. The exhibit is supported by the EDP Foundation and is part of the official commemorations of the Centennial of the Portuguese Republic.

I

n December of 2009,the publication of a report on the sector of public palaces and museums in Portugal made it possible to draw some conclusions on the Museum of Electricity.

The numbers speak for themselves; the Museum of Electricity has a maintained momentum of growth, but also the ability to capture the interest of the visitor –as well the ability to capture new visitors and supporters.

“We are all thrilled, as success is always based on the hard work of the team, and I need to point out that the results show the dedication and professionalism of that team,” says Eduardo Moura the Museum Director. “We strive for quality from our exhibits to the guest experience. We look closely at the feedback we get. In January, for example, guest surveys gave us a 94% positive rating, a clear sign of the quality of experience.”

All together in 2009, the Museum was second in guided visits right after the National Palace of Mafra (which was in 1st place). In terms of domestic visits, the Museum was third after the Paço dos Duques in Guima-

rães and the National Palace of Mafra, but #1 in terms of museums. In terms of the general public, Museum of Electricity was in 7th place, right after the National Palace of Sintra, the Paço dos Duques, the National Palace of Mafra, the National coach Museum of Lisbon, the National Museum of Ancient Art and the National Palace of Queluz.

So, the Museum of Electricity was the third most visited museum on the list.

The number to watch is the doubling of visitors, in two years, growing from 65,614 in 2007 to 130,307 in 2009. It is a notable achievement, and one that the Museum Director also sees as a challenge: “We now should compare ourselves not just to the museum, but to the National Palaces. We have the ability to see those kinds of numbers.

It will be a huge challenge, but we are starting to explore it, as it is a fascinating idea to evolve the number of foreign and domestic visitors.”

For 2010, the Foundation has established a goal of seeing some 150 thousand visitors, and being the second most visited museum in Portugal.

EDP in the arts opens second edition in Brazil

The premiere in 2009 was -a su cess.

So much so that EDP in Brazil through its EDP Institute, an partnership with the Tomie Ohtake Institute, took part i second round of the awards to encourage artist output in - un versities.

EDP in the arts is open for n applicants, and this round - is so open to the works of profe sors. During the application riod for works of art, the - ap cant can nominate their profe sor as well, and if the appli is selected, they both win.

The application phase is open until June 20, 2010, by mail at the Tomie Ohtake Institute S o Paulo. The winners will b announced in August, at the opening of an exhibit of -the nalists work at the Tomie - Oh take Institute.

The award is based on the - int national experiences of the E Group, whose Foundation in Lisbon has had a similar -pro gram for eight years.

Ant nio Pita de Abreu, presid of EDP in Brazil said At first glance we saw that re are lot of young people wi

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sustainability R e s p o n s i b i l i t y fo r t h e E n v i ro n m e n t

A year dedicated to biodiversity

EDP will be a part of the commemorations of the International Year of Biodiversity, an initiative of the United Nations to alert people of the threats to global biodiversity as thousands of species disappear

he International Year of Biodiversity’s mission is to raise awareness of the threats to our planet’s biodiversity.

Scientists estimate that some 34 thousand species of plants and 5,200 animal species are at risk of extinction. Scientists also estimate that the “sixth mass extinction” of species is already underway. The last mass extinction was the disappearance of the dinosaurs some 65 million years ago. Throughout 2010, numerous initiatives will be held to raise awareness of the consequences of this global event.

In Portugal, the program Bioeventos 2010 has a series of events planned to raise awareness. The theme will be the importance of biodiversity in various aspects of human society, as well as the role that each one of us

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plays in the preservation of biodiversity. The effort is being promoted by the University of Lisbon’s National Museum of Natural History (Museu Nacional de História Natural) and the Biological Environment Center (Centro de Biologia Ambiental).

EDP has also joined the cause, as one of the founders of Bioeventos. The company hopes that through this program it can mobilize some 65,000 participants, and reach more than 1 million people in Portugal with its message.

B i o d i ve rs i t y S u st a i n a b i l i t y

DID YOU KNOW THAT? • The diversity of species suffered a 40% decrease between 1970 and 2000.

• The fish populations of the North Atlantic have suffered a decline of 66% over the last 50 years.

THE BIODIVERSITY TRAIN On March 31, 2010, people from various walks of life, including political, business, economic leaders as well as environmental leaders and scientists got on board a Biodiversity Train. The trip left Lisbon’s main rail station and crossed the Tejo Estuary on route to the Sado River Valley. The point was that the loss of biodiversity threatens the very existence of the human species. Any solution has to embrace three fundamental points: science, technology and culture.

The conservation of biodiversity is not possible without the inclusion of all elements of human society, and it has to be part of any political or economic approach. These were the conclusions of the train trip that was in support of the candidacy of the Arrábida Natural area to UNESCO World Heritage Status. The trip was narrated from station to station by scientists from the University of Lisbon, putting the concept out for discussion among the passengers.

• Since 2000, the world has lost 6 million meter acres of forest a year.

• The destruction of and damage to natural habitats is the greatest threat to the survival of species, some 86% of bird species are at risk, 86% of all mammals are at risk and 88% of all amphibians are at risk.

• The International Union for Conservation of Nature’s Red List 2009 contained some 16,928 species at risk around the world of extinction, including 21% of all mammals, 12% of birds, 31% of all reptiles, 30% of all amphibians and 37% of all fish.

B DAY

May 22nd is B Day, the International Day of Biodiversity. The challenge is to include the Portuguese people in the process of preserving their natural environment.

People are

asked to go outdoors and make a list of the plants and animal they see.

The Bioeventos 2010 has called on all those who want to see positive movement in the conservation of biodiversity in

• In Portugal 30% of vertebrate land species are at risk, while 70% of vertebrate water species are at risk.

Source: Bioeventos 2010

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S u st a i n a b i l i t y B i o d i ve rs i t y

Econnosco and Noah’s Ark

With an Ark as the symbol, this program is covering Brazil at full steam ahead

Have the strength

Ideas can be simple words on paper.

and energy to go forward

Making things happen takes people.

and focus on an ideal.

who believe and don’t give up .

his is the motto of the Ambassadors of Sustainability of Econnosco (or Ecowith-us), a program created in Portugal to preserve natural resources with EDP and now beginning its 4th phase in Brazil.

The program is made up of team members from around EDP of Brazil, who are working to build the program. According Paloma Cavalcanti, from the EDP Institute, ambassadors are essential to Econnosco: Beyond being the lifeblood of the teams, they find solutions, and start projects. As an example, look at the work of Carlos Aguiar, from the Corporate Accounting Department. In a simple and cost-free way, this ambassador is helping the construction project at Alto Tietê, in São Paulo, to save 10,000 pages of paper per year. “Traditionally, all bills from

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suppliers were printed. Now it is all done via PDF sent by e-mail and sent to the right departments”, he explains. Next, Aguiar will take this best practice to new departments of EDP to find similar savings.

Portugal here I come!

Good ideas like these will be rewarded with a trip to Portugal. Over the next three months, they will be trained at EDP’s partner, the Akatu Institute, where they will learn how to build sustainable projects. The most talented will be able to oversee the work of the EDP Foundation in Lisbon, the second quarter of the year. The goal of Econnosco is to turn these ambassadors into “thinking heads”.

“The project is like a college end of term project. First they get the classroom instruc-

tion, then they see it in the real world”, says Paloma.

All in the same boat

Like great teams that have their mascots, for the Ambassadors it is a ship, much like Noah’s Ark, but made of people, or in this case the ambassadors themselves. The Akatu Institute had the idea and turned to artist Andresa Santos. She asked all the ambassadors to make a doll of themselves, and then she used the dolls to make the symbolic ship, showing that we are all in the same boat on this planet. “It is a symbol, I wanted to transform it into a place of symbolism, where people can to see how we are all connected” she says. Who knows if the boat might go down in history?

B i o d i ve rs i t y S u st a i n a b i l i t y

In “line” with nature The EDP Group focuses on the environment, namely through programs that manage and preserve different types of combustible lines. It is a way to protect forests, and guarantee the supply of energy electricity

In Spain…

before

after

In Portugal…

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n mainland Portugal there are more than 100,000 miles of aerial power lines in forested areas. EDP Distribution has a plan underway to spend 15 million euros to build and maintain the Secondary Line of Management of Power Lines, and to maintain medium and high-tension power lines. This is a program to conserve the forest by preventing forest fires and at the same time guarding the habitat of wildlife. It also safeguards the power supply by reducing power outage due to tree branches and other contact. So, the effort protects the customer and the environment at the same time.

The plan calls for an on going balance between the flow of power and the biodiversity of the forest groundcover. Based on previous pilots and then detailed in the company’s Good Practices Manual (part of the Environmental Impact Program promoted by Portugal’s Energy Services Regulatory Authority), to put into place safeguards for biodiversity through analysis and management of the groundcover in each specific forest to create a lasting benefit. This Good Practices Manual is in place in all of Portugal, as part of an Action Plan that has a vibrant buy-in by local governments.

In Brazil…

EDP Escelsa has been upgrading its line to protected space cable, in both rural and urban service areas. The idea is to protect wildlife, such as the rare sagüis-de-cara-branca (white fronted marmoset), that live in the coastal forests as well as in city parks. The company has been upgrading line for the past three years, so that new lines were 25.58% of the grid by 2008 and 28.31% in 2009. Those numbers underline the Third Principal of Sustainability – Respect for the environment. In fact, the distributor in Espírito Santo signed a letter of understanding with the State Institute for the Defense for the agriculture, forest and livestock industry, and setting up a Standard Operating Procedure for maintenance, construction, cleaning and security on lines in their operating area. With this they meet the real conditions of regular service, continuity, efficiency and security.

HC Energy came up with the every three year program “Corte e Poda” (Cut & Plant) to protect the environment in the areas where power lines cross. Just in the last year they cut and replanted some 270 miles of area below power lines at a cost of 3.5 million euros. The plan is to reach about 3,000 miles of the HC Energy medium and high tension lines, most in difficult to reach areas, and 22% in heavily forested areas, every three years. With conservation from the Consejería de Medio Rural y Pesc and the Escuela Politécnica de Ingenieros Técnicos Forestales de Mieres, the team is working on a manual for the environments that the lines cross.

The replanting is part of a pilot program called Forest Intervention, that focuses on specific plant types which hold back the growth of trees that might grow into the power lines, and at the same time allow native plant species to proliferate and to co-exist with the lines.

This multi-purpose, and environmentally balanced plan was approved by a firm that has the patent for the process – and one that in the long term will benefit the environment, and save the company money in maintenance. The pilot kicks off this year with a 132 kV double line between Posada and Corredoria, in the Astúrias province.

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photo essay I LU S T R A R T E 0 9 – IV International Biennale of Children’s’ Books Illustration

The award winning images from the 4th edition of the Biennial are on exhibition in Lisbon’s Electricity Museum (Museu da Electricidade).

They are powerful examples of the strength of multimedia design woodcuts in the style of Isabelle Vandenabeele.

ILUSTRARTE reached it goals once again, by creating a space for discussion and people getting together to see the best of children’s book illustrations.

And along the way it helps to put Portugal on the map for international events in this area.

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Photos by Alex Gandum

Charming images

"Prologue of a Departed Love" Isabelle Vandenabeele, Belgium, Winner

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"The Everyday Life Of Animals" Alessandro Lecis + Alessandra Panzeri, Italy, Honorable Mention o n 57

I LU S T R A R T E 0 9 – IV International Biennale of Children’s’ Books Illustration

"Family Chores" Martin Jarrie, France, Honorable Mention

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I LU S T R A R T E 0 9 – IV International Biennale of Children’s’ Books Illustration

"Family Chores" Martin Jarrie, France, Honorable Mention

"O The Everyday Life Of Animals" Alessandro Lecis + Alessandra Panzeri, Italy, Honorable Mention

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P h o t o e ss a y

"The Everyday Life Of Animals" Alessandro Lecis + Alessandra Panzeri, Italy, Honorable Mention

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I LU S T R A R T E 0 9 – IV International Biennale of Children’s’ Books Illustration

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"Prologue of a Departed Love" Isabelle Vandenabeele, Belgium, Winner

P h o t o e ss a y

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in focus TERESA PEREIRA is EDP’s legal counsel

BUSINESS How many years have you worked at EDP?

I have been at EDP since 1984. I came to fill in for someone for six months and ended up staying. I have worked for the last seven years on the ONI Project, because of my work in the personnel sector of EDP. What was the most gratifying experience you have had at the EDP Group?

It is not easy to “make up my mind” as to what was the most gratifying experience I have had at EDP. I like what I am doing a lot, but ONI has been an amazing opportunity that has helped me to grow – be it in personal or professional terms. I did it all.

What are the biggest challenges you face right now, in the legal counsel office?

I have a big caseload, and that keeps me busy. We have a lot of legal questions to review, and are always cautious that we meet our deadlines.

Since the company is a multiinternational – with different locations and legal considerations – how does this impact your work? In what way?

Obviously EDP has numerous locations, but that often has a positive effect on my work. I am always learning! Legal issues are always unique, and we often have different solutions to similar issues.

Tell us about your average day?

I would say rather busy. When I don’t have appointments that require me to be out of the office, I get to work by 10 a.m. take a break around 2 in the afternoon, and then work until around 10 p.m.

What haven’t you done that you would like to do, or change inside of EDP? 64 on

“When I first started some people thought that coming up against a woman would be easy.

But, they soon found out that that was not the case” I am really doing what I like. When I was a kid, and they asked me what I wanted to be when I grew up, I said a lawyer. I still love my work. Of course, there are always things we could change! I would always hope we could work for “excellence” and not just get simple results.

Has being a woman every impacted your career?

I never encountered any impact from being a woman. Well, when I first started some people thought that coming up against a woman would be easy. But, they soon found out that that was not the case.

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World Press Photo

Douro Wine Country Marathon

Energy Efficiency Project

The EDP Foundations hosts the World Press Photo exhibit. Don’t miss seeing the world though a lens. Museum of Electricity (BelÊm, Lisbon).

Now in its fifth year, with sponsorship from EDP, this popular marathon had more than 3,000 participants and was broadcast throughout Portugal

Naturgas Energy presented a new project on renewable energy and energy conservation in buildings.

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MIT Clean Energy Prize Competition 2009 International Day of Biodiversity

Carbon Disclosure

At the awarding of the prizes sponsored by EDP Innovation in 2009, the Track Renewable received the MIT Clean Energy Prize. Part of the 100K Competition, the Clean Energy Prize is the largest university-level competition of its kind.

The results of 2009 will be presented to the European Parliament. Highly visible on the world stage, this project encourages the best-performing companies toward sustainability.

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This initiative, promoted by the Center for Environmental Biology in partnership with EDP, strives to increase awareness of biodiversity issues.

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EDP Live in Madrid

Final Balance

Classical Music

The team members of EDP Renewables, HC Energy and Naturgas get together in Madrid for their annual meeting. It will be a full day of activities and agenda setting for the coming year.

The EDP Group shared its results at the APIMEC meeting in São Paulo with investors and analysts.

EDP sponsored a chorus that performed in an open-air performance of Beethoven’s Ninth Symphony, part of two performances to celebrate the 50th anniversary of the city of Brasília.

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Arterial Hypertension Campaign

American Wind Energy Conference

Annual Meeting of EDPR North America

EDP Brazil will launch a coordinated effort through the company’s Human Resources department to educate team members on the dangers of arterial hypertension.

EDP Renewables North America will have a booth at the Wind Energy Association’s WINDPOWER 2010. Various EDPR representatives will attend the conference.

Dallas, Texas.

EDPR NA team members will meet for their annual meeting in Houston, Texas. They will discuss ways to reach their future objectives, as well as the balance of activities in the past year.

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