Red Electrica de España S A : Financial results (January - March 2023)

For the purpose of facilitating the understanding of the information provided in this document, certain alternative performance measures have been included. Their definition can be found at:

https://www.redeia.com/en/shareholders-and-investors/financial-information/alternative-performance-measures

Contents

1. Mainhighlights

Spanish electricity sector

Demand for electricity in Spain in the first quarter of 2023 amounted to 62.7 TWh, down 2.6% year-on-year.

Regarding electricity production, the wind generation represented 27.6% of the national generation mix, was the most used source in our country in the quarter. Another highlight was the increasing weight of solar generation, to nearly 11% of the total for the period on the back of a 43% increase. Lastly, the period featured a large jump in hydro generation, of nearly 70% compared to the first quarter last year, taking total renewable generation to 36 TWh, over 50% of the total electricity generated in Spain in the first three months of the year.

Meanwhile, the average daily spot electricity price in the first three months of the year was slightly over EUR 96/MWh, more than 40% lower than in 2022. This sharp decline was due to the fall in natural gas prices in European markets and the larger contribution by renewable energy sources.

TSO activity in Spain

Red Eléctrica continues to provide high service quality levels. The rates of availability at 31 March 2023 were 98.4% for the national transmission network, up slightly from 98.2% in 2022; in the Balearic Islands this availability rate was 98% in the quarter, compared to 98.5% in 2022, in the mainland it was 98.4%, compared to 98.2% a year earlier, while in the Canary Islands it was 98.8%, compared to 98.7% a year before.

A highlight for the year was the agreement entered into on 2 March between the Spanish and French energy regulators, Commission de Régulation de l'Energie (CRE) and Comisión Nacional de los Mercados y la Competencia (CNMC), on the distribution of the financing of the Bay of Biscay power interconnection project between France and Spain. This agreement marks key step to the definitive launch of key infrastructure for Spain's electricity system, doubling the interconnection capacity between the two countries from 2.8 GW to 5 GW.

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