THE PROJECT

An innovative project that stands as a reference in world electricity markets

PEGO POWER STATION WAS BUILT BY EDP – ELECTRICIDADE DE PORTUGAL – BETWEEN 1987 AND 1995, ADDING 628 MW TO THE DOMESTIC ELECTRICITY GENERATING SYSTEM, WHICH WERE NEEDED TO PROVIDE FOR INCREASED ELECTRICITY CONSUMPTION IN THE 1990S AND TO GUARANTEE THE NECESSARY DIVERSIFICATION OF ENERGY SOURCES.

 

An international consortium’s purchased, in a competitive public tender, the power station in 1993, representing an enormous advance in involving the private sector in a significant part of domestic electricity generation.

 

Since then, Tejo Energia, has become an innovative project which continues to be a benchmark in worldwide electricity markets.


Pego Power Station was also Southern Europe’s first major project finance, involving its shareholders as well as the major Portuguese and international banks. In fact this was the largest cross-border transfer in Europe, in 1993, which gives an idea of the importance of this financial operation.

 

The project involves 3 companies – Tejo Energia, Pegop and CarboPego, which operate on the basis of a culture of excellence deriving from the dedication, commitment and involvement of all of their personnel.


The project focuses on meeting the demand for energy and system services required by the national electricity network as well as on its environmental responsibility and safety, promoting the effective consumption of resources, minimising risks to the environment, workers and population.

 

OUR MISSION

Independent electricity production, with quality and reliability guided by strict compliance with the sectos' regulations

PEGO'S PROJECT OBJECTIVE: TO GENERATE ELECTRICITY AS EFFICIENTLY AS POSSIBLE AND TO GUARANTEE THE AVAILABILITY OF ITS GENERATING UNITS, ENSURING THE EFFECTIVE PROCESSING OF ITS WASTE AND EFFLUENTS, THROUGH INTENSIVE INVESTMENT AND RIGOROUS MAINTENANCE OF ITS STATE-OF-THE-ART EQUIPMENT.

 

Pego Project’s mission is to be an independent world class power generator, guaranteeing a high quality, reliable power supply strictly complying with the regulation of the sector in Portugal and in the European Union.

 

This approach includes the aim to comply with the highest safety and environmental standards, through the certification of the assets management systems, with the aim of protecting and caring for the environment and the surrounding community.

OUR VALUES

Finding solutions to the challenges inherent in our activity

PEOPLE
It is commonplace to state that people are companies’ main assets.
The Pego Project endeavours to materialise this statement, , in our respect for the performance of our employees, recognising their work, promoting the development of their skills, both professional and personal and placing value on team spirit.

 

 

ENVIRONMENT
We are aware of the fact that our activities have environmental impacts and as such we do our best to minimise them by using state-of-the-art technology and reducing gas emissions, while, at the same time endeavouring to recycle most of the waste.

 

 

SAFETY
The safety of everyone working on the Pego Project, whether employees or service providers, is more important than any commercial objectives. We have, since the start-up of operations the power station, promoted a culture of safety along all stages of operations. Our objective is to achieve zero accidents at site.

 

 

TECHNOLOGY
The use of cutting edge, efficient technologies, both for electricity generation and control of the gas emissions and waste and the constant upgrading of our processed are a goal we continuously pursue and one of our most defining qualities.

 

 

COMMUNITY
The search for achieving the best local community relationships is part of Pego Project’s DNA.
Our goal is to develop fruitful and profoundly respectful relationships with the community in which we operate, participating in the sustained development of the region, creating value and opportunities.

THE STAKEHOLDERS

A structure formed by two major shareholders.

TrustEnergy is a 50%/50% joint venture between French business group ENGIE and the Japanese multinational Marubeni.


TrustEnergy is a business group with a strong presence in the energy sector in Portugal.


It bases its activity in electricity generation, with the objective of producing electricity in a safe and efficient manner, with due respect for the environment and at a competitive price.


To do so, it manages a diversified set of assets that combines the benefits of renewable energy with the competitiveness of coal and the flexibility and efficiency of natural gas.


TrustEnergy is the second largest player in the electricity sector in Portugal, with an installed capacity of 3.4 GW. It is also the fourth largest company in the wind segment.


Find out more about TrustEnergy at: http://www.trustenergy.pt

Endesa is the leading company in Spain’s electricity sector and the second largest trader in the Portuguese electricity market with more than 10,000 employees and more than 11 million customers.

 

Endesa operates in the electricity and gas business mainly in the Spanish and Portuguese market (generation, distribution and trading). To a lesser extent, it trades electricity and gas in other European markets as well as other value added products and services related to its core business.

 

Endesa, as all the companies that are part of the Enel Group, has always been at the forefront of developments in the energy sector, providing safe, affordable and sustainable energy to millions of customers around the world. Aware of the deep change that the industry is currently experiencing, the Group is positioning itself in a new era of energy, more open, participating and digital. This strategic positioning is called Open Power. 

 

Find out more about Endesa at: http://www.endesa.com

THE COMPANIES

One of the majour private companies in Portugal.

56.25%
TrustEnergy
43.75%
Endesa

TEJO ENERGIA IS A JOINT VENTURE BETWEEN TRUSTENERGY,
WITH A 56.25% STAKE OF AND ENDESA GENERACIÓN WITH 43.75%.


EDP started the construction of units 1 and 2 of the coal-fired Pego Power Station in 1987. In 1990, as part of a Government initiative to restructure EDP and to encourage private sector investment in the electricity sector, units 1 and 2 were marketed for sale in an international bid.


Thus, Tejo Energia was created as owner of Pego Power Station. Subsequently two other limited liability Project companies were incorporated: Pegop and CarboPego, to operate and maintain the Power Station and to supply coal to Pego respectively.


Tejo Energia is responsible for the management of the Power Purchase Agreement with REN - Redes Energéticas Nacionais (the off-taker), the Operation and Maintenance Agreement with Pegop and the Coal Supply Agreement with CarboPego, in addition to other contracts related with the project as well as managing the relationship with the banking institutions involved, strategic planning and relationship with its shareholders.

 

Tejo Energia was created under a project finance structure in 1993. At the time its legal/financial framework was regulated by more than 100 agreements. The percentage of borrowed capital, at the time of the first refinancing operation, in 1997, was 85%.


A new refinancing agreement took place in 2006, including the funding of environmental investments under Directive 2001/80/EC (Large Combustion Plant Directive – LCPD), resulting in a banking syndicate of 13 banks, including leading national and international banks.


In addition to shareholders, the banks play a relevant role in overseeing the project’s technical and financial parameters. Historical results and forecasts figures are periodically revised and reference ratios checked. Tejo Energia’s financing requires active involvement and multifaceted and permanent contacts with its diverse financial and commercial partners.

 

56.25%
TrustEnergy
43.75%
Endesa

The company responsible for the operation and maintenance of the Pego’s Electricity Production Center.

PEGOP IS RESPONSIBLE FOR THE OPERATION AND MAINTENANCE OF PEGO’S ELECTRICITY PRODUCTION CENTER - OWNED BY TEJO ENERGIA, AND PEGO’S COMBINED CYCLE NATURAL GAS POWER STATION - OWNED BY ELECGÁS (50% TRUSTENERGY / 50% ENDESA GENERACIÓN).

 

Totally based in Pego – Abrantes, it employs most of the project’s collaborators and, in addition to ensuring the direct operation of the power stations, manages a large number of contracts with other companies which operate parts of the installations or maintain certain items of equipment.

 

EQUITY STRUCTURE:

 

50%
Endesa
50%
TrustEnergy

The fuel supplier from Pego Power Station.

CARBOPEGO IS THE COMPANY RESPONSIBLE FOR SUPPLYING THE COAL TO PEGO POWER STATION - IT PURCHASES THE COAL IN THE INTERNATIONAL MARKETS AND IS RESPONSIBLE FOR ALL OF THE LOGISTICS UP TO THE TIME OF DELIVERY TO THE PEGO SITE.

 

Pego Power Station burns coal to generate electricity. The imported coal is delivered to Portugal by sea. It is unloaded at the coal terminal in the Port of Sines (TMS), and then carried by rail to the Power Station, at a distance of around 290 km.

 

EQUITY STRUCTURE:

 

50%
Endesa
50%
TrustEnergy