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Enel Green Power Investor Day Rome, April 22 2009

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http://www.enel.it/azienda/it/investor_relations/presentazioni/doc/2009_02/EnelGreenPower_InvestorDay.pdf

http://www.enel.it/azienda/it/investor_relations/presentazioni/doc/2009_02/EnelGreenPower_InvestorDay.pdf

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  • 1. Investor Day Rome - April 22nd, 2009
  • 2. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 1
  • 3. Global installed capacity GW Wind installed capacity 383 Global installed capacity1 CAGR 10% 6,264 120 4,640 +35% 2008 2020 Fossil + Nuclear Solar installed capacity 72 1,150 +58% 1,820 Renewables 2008 2020 CAGR 18% 10 2008 2020 (1) IEA Reference scenario 2
  • 4. Enel Group renewable energy production 2008 By Company By Technology Enel 19.6 TWh1 Other 0.6TWh Enel Green Wind Power 3.4 TWh 17.2 TWh2 Geothermal 5.2 TWh Endesa 42.4 TWh3 Hydro4 70 TWh Total Enel Group production Total Enel Group production 79.2 TWh4 79.2 TWh4 (1) It includes Slovenske Elektrarne large hydro (2) Pro-forma 2008 (3) Endesa data consolidated at 100% and net of the agreed transfers to Acciona (4) Net of pumped storage production 3
  • 5. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 4
  • 6. Enel Green Power: a leading player in renewable energies Francesco Starace Investor Day Rome - April 22nd, 2009 5
  • 7. Renewable energies: strong fundamentals in all geographies Estimates of renewables installed capacity, 2008-2020 Europe 1,030 GW max North America 620 GW min 390 GW TOTAL WORLD 550 GW max 3,020 GW min max 230 GW 330 GW 2008 2020 1,820 GW min 1,150 GW 2008 2020 2008 2020 Latin America Africa Asia 1,000 GW max 600 GW min 330 GW max 110 GW max 350 GW 150 GW 200 GW min 70 GW min 30 GW 2008 2020 2008 2020 2008 2020 Up to 1,900 GW of renewable capacity additions Up to 1,900 GW of renewable capacity additions Source: Enel estimates based/WEO 2008/GWEC 2008 (2008); WEO 2008 Reference Scenario (2020 min); Industry reports/McKinsey (2020 max) 6
  • 8. Renewable energies: strong fundamentals in all technologies Global installed Global installed Technology base base Δ capacity CAGR Technological maturity 2008 2020 2% Very high (large hydro) Hydro 960 GW 1,280 GW +320 GW 8% Very high (small hydro) Biomass 50 GW 470 GW +420 GW 20% Very high Geothermal 10 GW 30 GW +20 GW 10% High High (on-shore) Wind 120 GW 800 GW +680 GW 17% Low (off-shore) Medium (c-SI) Solar Low (Thin Film) PV Solar 10 GW 440 GW +430 GW 37% Concentrated Low solar power TOTAL 1,150 GW 3,020 GW +1,870 GW 8% All technologies have potential for major capacity additions All technologies have potential for major capacity additions Source: Enel estimates based/WEO 2008/GWEC 2008 (2008); Industry reports/McKinsey (2020) 7
  • 9. Enel Green Power: large renewable player well positioned in growth geographies 2008* EGP presence Enel Green Power 4,464 MW 17.2 TWh North America 748 MW 1.8 TWh France Romania, 12 MW Bulgaria 0.01 TWh Pipeline Iberia Latin America 399 MW 667 MW 0.8 TWh 3.5 TWh Greece Italy 91 MW 2,547 MW 0.2 TWh 10.9 TWh * Proforma data Note: Endesa capacity not included (1,026 MW: 799 MW in Iberia and 227 MW in Latin America) 8
  • 10. Enel Green Power: active in all four key technologies Enel Green Power Technology Net installed capacity Net production Key areas 2008 2008 Italy – Iberia – Europe – North America – Hydro 2,498 MW 9.6 TWh Latin America Geothermal 678 MW 5.2 TWh Italy – North America Wind Italy – Iberia – Europe – North America – 1,237 MW 2.1 TWh Latin America Solar 4 MW n.m. n.m. Italy (retail and module manufacturing) Biomass 48 MW 0.3 TWh Iberia – North America and other TOTAL 4,464 MW 17.2 TWh 9
  • 11. Company structure Tot. 2,564 Employees 1,566 • Group holding • Italian geo, hydro Enel Green Power SpA Enel Green Power SpA and wind Italy activities 116 Italian solar PV Enel Green Power Enel Green Power Enel.Si srl activities Enel.Si srl International BV International BV Italy Italy Holding of all international activities 68 285 479 50* North North Europe Europe America Latin America Latin America Spain Spain America * Equivalent to 50% of EUFER 10
  • 12. Organizational model Renewable Energies Renewable Energies F. Starace Regulatory Regulatory Corporate Corporate Human Human Legal Affairs Legal Affairs Affairs Affairs Affairs Affairs Resources Resources F. Egidi F. R. Napolitano G. Fazio G. Stratta Administration Administration Business Business Procurement Procurement Finance and Finance and Internal Audit Internal Audit Engineering Engineering Development Development Control Control D. Marcozzi A. De Paoli S. Fiori R. Deambrogio V. Vagliasindi (a.i.) North North Latin Latin Italy Italy Italy Italy Europe Europe America America America America Operations Operations Development Development Spain Spain Area Area Area Area Area Area Area Area Area Area M. Bezzeccheri T. Volpe V. Cecchi V. Vagliasindi R. P. I. Wilhelm M. Bezzeccheri 11
  • 13. Enel Green Power: four pillars to build upon Balanced technology mix Balanced technology mix Diversified geographical presence Diversified geographical presence Low dependence on incentive schemes Low dependence on incentive schemes Growth flexibility Growth flexibility 12
  • 14. Balanced technology mix 2008* Production Load factor Incentivized production** EBITDA/MW (TWh) (%) (%) (k€) 17.2 0.3 69% 99% n.m. n.m. Other Geo 5.2 88% 34% 686 Hydro 9.6 44% 7% 201 Wind 2.1 22% 95% 191 2008 Avg. 46% Avg. 27% Avg. 278 High load factor and High load factor and low dependence on incentive schemes low dependence on incentive schemes * Proforma data ** Includes production from plants entitled to PTCs (North America) 13
  • 15. Diversified geographical presence 20081 Regulatory framework Country Capacity Incentivized production2 Avg. remuneration3 (affecting future projects) Italy 2,547 MW 24% 99 €/MWh Green Certificates, Feed-in Feed- Feed-in, Market Feed- Spain 399 MW 100% 104 €/MWh +Premium Europe France 12 MW 100% Feed-in Feed- 89 €/MWh Greece 91 MW 100% Feed-in, Grants Feed- North America 748 MW 59% 56 €/MWh PTC, ITC Green Certificates, Latin America4 667 MW 0% 76 €/MWh Fiscal Incentives Total 4,464 MW 27% 90 €/MWh Diversified geographies Diversified geographies with low dependence on incentive schemes with low dependence on incentive schemes (1) Proforma data (2) Includes production from plants entitled to PTCs (North America) (3) Does not include effects of hedging policy (4) Includes Panama 14
  • 16. Growth flexibility 2008* A solid pipeline… …with projects in four technologies (GW) (GW) 0.6 0.1 16.7 10.7 16.7 0.6 0.5 14.9 3.8 1.6 0.6 Under Under Highly Highly confident Likely Likely (50%) Potential Potential (20%) Total Total Wind Hydro Geo Solar Other Total construction construction (90%) confident (50%) (20%) (100%) (100%) (90%) 6 GW 6 GW of solid pipeline plus 10.7 GW of additional opportunities 6 GW of solid pipeline plus 10.7 GW of additional opportunities * Proforma data; Endesa not included (accounting for 12.4 GW in terms of pipeline) 15
  • 17. Development model Staff Functions: ICT, Communication, Corporate, AFC, Regulatory, Legal, HR, Audit, Procurement EPC Business O&M Development Integration M&A Project identification Realization of approved Plant operation Screening projects Production optimization Valuation Integration of acquisitions Continuous improvement Permitting CapEx expenditure EBITDA generation Approval process CapEx allocation Industrial approach to value creation Industrial approach to value creation 16
  • 18. Leveraging on competencies Hydro Geothermal Wind Solar PV 2.5 GW installed globally 0.7 GW installed globally 1.2 GW installed globally Strong position in the fast growing Italian market • Long lasting • Skills in development, • Large pipeline, split • Leading retail network in competencies exploration, engineering among geographies to Italy (Enel.si) • Skills ranging from and construction, O&M maximize optionality and return on investment • Competence Centre development to operation • Development of new (within R&D Division) in and maintenance projects in Latin America • Flexibility in turbines Italy • Project pipeline in Italy and North America procurement, taking advantage of industry • Upstream integration into and Latin America cell/module shake-up (overcapacity, cost reduction) manufacturing (in progress) Established Well positioned to take Fully integrated Unique position in the competencies in advantage of sector geothermal operator solar PV value chain development and O&M shake-up Leveraging competencies across all geographies Leveraging competencies across all geographies 17
  • 19. Balanced growth on multiple technologies Enel Green Power technologies Financial attractiveness… …and long-term sustainability Wind Geo Hydro Geo EGP competitive >12% on-shore High Solar EGP return* Biomass Hydro PV advantage Solar Wind 10-12% PV Medium on-shore CSP CSP Wind Biomass Wind 5-10% off-shore off-shore Low Low Medium High Low Medium High Potential capacity additions Potential energy cost (2008-2020, GW) abatement (2008-2020, %) Maximizing returns and enhancing long-term sustainability Maximizing returns and enhancing long-term sustainability * Unlevered project IRR after taxes 18
  • 20. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 19
  • 21. 20
  • 22. Worldwide installed capacity GW 4% CAGR 19 13 10 8 2000 2008 2015 2020 Slow but constant growth due to Slow but constant growth due to scattered resources and long development time scattered resources and long development time Source: IEA; IGA; Worldwatch Institute; United Nations; Enel analysis on WEO 2008, industry reports. 21
  • 23. Resource availability Geothermal Ring of Fire Geothermal activity 22
  • 24. Geothermal systems Type of reservoir Application/technology Heat pumps Heat pumps 0 - 500 m Dry Shallow reservoir Heat exchange Heat exchange Hydrothermal Depth 500 – 5,000 m Electricity generation - Electricity generation - Systems: shallow and Conventional technologies Conventional technologies deep reservoir > 5,000 m Hot deep dry rock Engineered geothermal Engineered geothermal reservoir systems - Future perspectives systems - Future perspectives Application and technology driven by reservoir characteristics Application and technology driven by reservoir characteristics 23
  • 25. Conventional technologies Dry steam Flash steam Binary cycle power plants power plants power plants Water with temperatures higher Water at lower temperatures Dry Steam. than ~180ºC. between ~ 110-180ºC. 195 237 Units Units 58 Global Installed capacity 2008 2.6 5.6 0.8 Capacity Capacity (GW) (GW) Highly cost competitive Most dominant in terms of Useful alongside geothermal but geographically limited global capacity heating, hot springs, etc Aver. size Aver. size ~45 ~29 ~3 (MW) (MW) 24
  • 26. Technological evolution Medium term Long-term Past 5-10 outlook 5-10 outlook 10+ years years years Today • Dry steam • Flash steam Conventional Conventional Binary cycle technologies technologies Binary cycle Break-through Break-through technologies EGS technologies Long term break-trough is expected Long term break-trough is expected with Engineered Geothermal Systems with Engineered Geothermal Systems 25
  • 27. Typical development process Surface Deep exploration Feasibility Field Surface Deep exploration Feasibility Field exploration (Drilling) study Development exploration (Drilling) study Development Duration Duration 4-8 10-14 10-14 24-36 (months) (months) • Geological, • Permitting and • Permitting and • Permitting and geochemical and procurement procurement procurement geophysical • Production and • Well pads and roads • Well pads and roads prospecting design/construction design/construction reinjection wells • Integration of geo- (10-15 new wells) • Well design/planning • Drilling scientific data and (2-3 additional wells) • Steam separation Description Description resource modelling • Drilling and gathering (min. 2 wells) • Well testing system installation • Power plant and transmission line construction Key Key • Resource • Drilling • Project design • Project competencies competencies characterization • Resource • Project management characterization integration and integration 26
  • 28. The industry is mostly local, with only a few players operating supra-regionally Installed capacity* - 2008, GW Sites: 4 Capacity: 1,341 MW Sites: 5 Sites: 6 Capacity: Capacity: 362 MW Sites: 6 1,930 MW Capacity: 353 MW Sites: 3 Capacity: 390 MW Sites: 13 Capacity: 1,200 MW Sites: 3 Sites: 2 Capacity: Capacity: 678 MW 953 MW Sites: 12 Capacity: 430 MW * Installed capacity indicated represents highest figure between field and plant capacity Source: Company Web sites, press releases, team analysis 27
  • 29. Value chain Corporate activity Leading operators in terms of installed capacity Within top players Project Project Plant Plant Plant Plant R&D R&D Development/ Development/ Exploration Exploration Drilling Drilling design/ design/ operation operation Finance Finance construction construction Enel Green Power Geysir (Iceland) Ormat (Israel/U.S.) PNOC EDC (Philippines) CFE (Mexico) Pertamina (Indonesia) Caithness Energy (U.S.) Calpine (U.S.) CalEnergy (U.S.) The industry is highly fragmented along the value chain The industry is highly fragmented along the value chain 28
  • 30. Typical project economics for a new entrant Key drivers Example Italy Drivers Values 2008 2020 • CapEx1 • EUR 4.00 million/MW • EUR 3.50 million/MW Investment Investment • OpEx • EUR 50,000/ MW • EUR 45,000/ MW • Load factor • 8,000 hours • 8,200 hours2 Operating Operating • Useful life • 30 years • 30 years (1) Highly variable and subject to site characteristics (2) At same natural conditions, higher load factor achieved thanks to improved plant operations from better plant components (e.g., separator) 29
  • 31. Remuneration scheme by country Average remuneration Country Type of remuneration scheme EUR/MWh Italy • Green certificates1 171 France • Feed-in tariff2 128 Greece • Feed-in tariff3 85 • None; under discussion Chile 704 introduction of certificates USA • Choice between 30% capex subsidy (ITC) or tax deductible credit (PTC) 675 Turkey • None 604 (1) Assuming 0.9 green certificates (in addition to wholesale price) (2) In addition, accelerated depreciation allowed (3) In addition, 30% CapEx subsidy awarded (4) Wholesale price (5) Assuming wholesale price of 50 EUR/MWh + tax deductible credit equivalent to 17 EUR/MWh 30
  • 32. Enel Green Power installed base and pipeline 2008 EGP presence Total N. plants 33 678 MW North America* 5,218 GWh N. plants 1 Pipeline 535 MW 7 MW 37 GWh Pipeline 127 MW Latin America Pipeline 299 MW Italy N. plants 32 810 MW (671 MW net) 5,181 GWh Pipeline 110 MW * As of 15/04/2009, an additional 65 MW of gross geothermal capacity have become operational 31
  • 33. Focus on Italy geo plants Enel Green Power Key competencies GWh 6000 Geothermal generation 5000 from 1900 to today 4000 3000 2000 1000 0 19 4 19 9 19 4 19 9 19 4 19 9 19 4 19 9 19 4 19 9 19 4 19 9 19 4 19 9 19 4 19 9 19 4 20 9 04 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 19 Continuous growth of production for over 100 years Continuous growth of production for over 100 years thanks to our field cultivation expertise thanks to our field cultivation expertise 32
  • 34. Enel Green Power’s strategy on geothermal • Leverage our unique • Leverage our unique competencies competencies • Selectively develop capacity in • Selectively develop capacity in North America and Latin America North America and Latin America CapEx (m€) Installed capacity (MW) Energy production (TWh) Total 09-13 = 652 m€ +16% +12% 807 35% 678 5.8 5.2 65% Growth Maintenance 2008 2013 2008 2013 33
  • 35. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 34
  • 36. Hydroelectric Vittorio Vagliasindi Investor Day Rome - April 22nd, 2009 35
  • 37. Worldwide installed capacity GW 2% CAGR 1,240 1,069 962 783 2000 2008 2015 2020 The most important “traditional” renewable energy The most important “traditional” renewable energy Source: REN21, UDI database; McKinsey; Enel analysis on WEO 2008, industry reports. 36
  • 38. Resources availability Average Annual Precipitation (Millimeters) 0-100 100-200 200-400 400-600 600-1,000 1,000-1,500 1,500-2,000 2,000-3,000 More than 3,000 Source: IIASA 37
  • 39. Hydropower technology can be classified according to usage and water head Enel Green Power technologies Water usage Reservoir Run of river • Power plants • Medium/small with high plants, with High head capacity production 15-1,000 m and flexible linked to water Head of water production flow availability • Medium/small • Medium/small Low head hydropower plants with <15 m plants with big production usage of water limited to water flow flow availability 38
  • 40. Typical development process Preliminary Preliminary Engineering Permitting Construction assessment Engineering Permitting Construction assessment Duration Duration 1-2 1 1-2 1-7 (years) (years) • Site investigation • Planning of civil, • Water diversion • Civil works (dams, electromechanical license penstock, building) • Hydrological and electrical and hydrological studies • Environmental works works impact evaluation; Description Description • Head • Grid connection • Machinery and measurements • Construction turbines assembly authorization • Electrical works and connections • Resource • Design • Relationship • Project evaluation optimization management management Key Key with Local competencies • Project competencies integration Authorities 39
  • 41. Typical project economics for a new entrant Key drivers Example Italy Drivers Values 2008 2020 • CapEx • EUR 2.20 million/MW • EUR 2.20 million/MW Investment Investment • OpEx • EUR 28,000/MW • EUR 25,000/MW • Load factor • 3,500 hours • 3,500 hours Operating Operating • Useful life • 30 years • 30 years 40
  • 42. Remuneration scheme by country Average remuneration Country Type of remuneration scheme EUR/MWh Italy • Green certificates 180 Spain • Feed-in tariff or wholesale + 89 premium1 Greece • Feed-in tariff2 80 France • Feed-in tariff3 78 Portugal • Feed-in tariff 76 (1) Operator can choose preferred remuneration scheme. A cap is defined by the regulation (2) In addition, 30% CapEx subsidy awarded (3) In addition, accelerated depreciation allowed 41
  • 43. Enel Green Power installed base and pipeline 2008 EGP presence Total N. plants 376 2,498 MW North America 9,653 GWh N. plants 62 Pipeline 600 MW 314 MW 964 GWh Latin America Spain N. plants 31 N. plants 5 643 MW 26 MW Greece 3,425 GWh Italy 27 GWh N. plants 1 Pipeline 541 MW N. plants 277 5 MW 1,510 MW 2 GWh 5,235 GWh Pipeline 10 MW Pipeline 50 MW * Endesa hydro assets (221 MW) and hydro pipeline (0.6 GW) not included 42
  • 44. Focus on Italy hydroelectric power plants Domodossola Bergamo Business Unit Business Unit 70 Plants 124 Plants 493 MW 587 MW 1,971 GWh 2,943 GWh Rusià Castelnuovo Napoli Business Unit Garfagnana 83 Plants 430 MW 1,631 GWh Pettorano 43
  • 45. Italy: re-powering of hydroelectric plants 94 New turbines 92 90 88 +5 % 86 Old turbines 84 82 Efficiency 80 +12 % (%) 78 76 74 72 70 68 66 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Power (MW) More energy with same water More energy with same water 44
  • 46. Enel Green Power’s strategy on hydroelectric • Leverage EGP’s unique • Leverage EGP’s unique long-standing competencies long-standing competencies • Selectively develop capacity in • Selectively develop capacity in North America and Latin America North America and Latin America CapEx (m€) Installed capacity (MW) Energy production (TWh) Total 09-13 = 520 m€ +5% +3% 2,497 2,627 9.7 9.9 38% 62% Growth Maintenance 2008 2013 2008 2013 45
  • 47. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Coffee break • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace • Lunch (Q&A) 46
  • 48. Wind Maurizio Bezzeccheri Investor Day Rome - April 22nd, 2009
  • 49. Worldwide installed capacity GW 383 % 10 R C AG 196 121 56 2000 2008 2015 2020 Very strong growth expected worldwide Very strong growth expected worldwide Source: Enel analysis on WEO 2008, GWEC 2008, industry reports. 48
  • 50. Resource availability Wind (Intensity) Wind speed over land 3 6 9 m/s 49
  • 51. Technology overview Average turbine price*, m€/MW •• CapEx reduction has been CapEx reduction has been starting in early 80s starting in early 80s •• Debottlenecking of Debottlenecking of •• Technology evolution led to Technology evolution led to supply chain supply chain decrease in CapEx decrease in CapEx 3.2 •• Supply bottleneck Supply bottleneck •• Rise in commodities prices Rise in commodities prices -6% p.a. 1.8 +20% p.a. -7% -13% 1.4 1.2 1.3 1.3 1.2 1.0 0.9 0.8 1981 1990 1997 1999 2003 2004 2005 2006 2007 2008 Long-term technology evolution resulting Long-term technology evolution resulting in improved wind economics in improved wind economics * BoP (Balance of Plant) not included 50
  • 52. Value chain dynamics Driving factors Description Stakeholder affected • New manufacturing capacity (key Easing out Easing out • OEMs: reduced margins components) of supply of supply • Internalization of components • Operators: increased negotiation constraints constraints manufacturing by OEMs power, improved project • Better planning/ management along the economics value chain • Decreased availability of attractive • Small developers: most projects More More financing are being postponed or difficult difficult • Difficulties in finding financial partners monetized financing financing in countries with tax-based incentives • Large operators: interesting (e.g. USA) opportunities for pipeline acquisition Learning • Wind-farm operators are moving • Industrial operators: value Learning effects in from contracted O&M to in-house creation thorough excellence in effects in O&M O&M O&M O&M “Power shift” along the value chain “Power shift” along the value chain will benefit large, integrated operators will benefit large, integrated operators 51
  • 53. Typical development process Development Development Permitting Permitting Construction Construction Duration Duration 1-2 2-3 0.5 - 1 (years) (years) • Resource • Authorization • Integration, evaluation, by all relevant program Description Description land rights authorities management • Local presence • Robust technical • Well tuned Key Key & partnership support, project competencies competencies with local socioeconomic & management & players political supervision knowledge Full lifecycle management of project Full lifecycle management of project is key for success is key for success 52
  • 54. Future landscape Key elements Key evidence • Wholesale grid parity already reached in some countries Wholesale grid Wholesale grid (e.g. Portugal, UK, Ireland) parity widely parity widely • Wholesale grid parity reached in the very short-term (by 2012) in reached reached several other countries (e.g. Morocco, Spain) • Europe expected to retain largest share of total installed capacity by 2020 (~40%), together with USA New geographies New geographies emerging emerging • New geographies emerging thanks to significant growth rate (e.g. China, India and Brazil) • Growth in mature markets (e.g. Germany) driven by Repowering of repowering of existing infrastructure Repowering of old assets old assets 53
  • 55. Typical project economics for a new entrant Key drivers Example Italy Drivers Values 2008 2020 • CapEx • EUR 1.60 million/MW • EUR 0.80 million/MW Investment Investment • OpEx • EUR 30,600/MW • EUR 19,800/MW • Load factor • 2,000 hours • 2,480 hours1 Operating Operating • Useful life • 20 years • 20 years (1) At same natural conditions, higher load factor achieved due to more efficient turbines 54
  • 56. Remuneration scheme by country Average remuneration Country Type of remuneration scheme EUR/MWh Italy • Green certificates 180 Romania • Green certificates (1.5x for wind) 125 • Feed-in tariff or wholesale + Spain 88 premium1 France • Feed-in tariff2 85 Greece • Feed-in tariff3 80 Portugal • Feed-in tariff 78 USA • Choice between 30% CapEx subsidy 4 67 (ITC) or tax deductible credit (PTC) (1) Operator can choose preferred remuneration scheme. A cap is defined by the regulation (2) In addition, accelerated depreciation allowed (3) In addition, 30% CapEx subsidy awarded (4) Assuming wholesale price of 50 EUR/MWh + tax deductible credit equivalent to 17 EUR/MWh 55
  • 57. Enel Green Power installed base and pipeline 2008 EGP presence Total* N. plants 78 1,237 MW North America 2,061 GWh N. plants 7 Pipeline 14,897 MW 406 MW 696 GWh Pipeline 5,142 MW France N. plants 3 Romania and 12 MW Bulgaria 7 GWh Pipeline 521 MW Pipeline 508 MW Latin America N. plants 1 Spain 24 MW N. plants 30 Greece 47 GWh 346 MW Italy N. plants 8 Pipeline 1,930 MW 624 GWh N. plants 29 87 MW Pipeline 2,260 MW 362 MW 219 GWh 467 GWh Pipeline 1,165 MW Pipeline 3,371 MW * Endesa wind assets (731 MW) and wind pipeline (11.3 GW) not included 56
  • 58. Enel Green Power positioning along the value chain Development Development Permitting Permitting Construction Construction O&M O&M • Large, high • Focused on • Leverage on Enel • Maximization of quality and building public skills and plant availability diversified acceptance experience • Sustainable cost pipeline • Proactive • Lean and reduction • Local presence cooperation effective • Implementation of to catch best with local organization data management opportunity authorities • Standardized systems improve • International • Capability to processes and effectiveness network manage a wide reports to meet • High-quality O&M pipeline budget and standards schedules Strongly positioned in O&M, Strongly positioned in O&M, key to maximizing value of wind investments key to maximizing value of wind investments 57
  • 59. Centre of expertise to leverage on technological competencies SCADA (Supervisory Control And Data Acquisition) • • Real time and historical data collection Real time and historical data collection • • Supervision and telecontrol Supervision and telecontrol • • KPI tracking KPI tracking • Fast response to grid events • Fast response to grid events TCP/IP METERING (GPRS modem) • Hourly updated • Hourly updated • Reliability and fast communication. • Reliability and fast communication. • Improvement of short time forecasting models • Improvement of short time forecasting models TCP/IP METERING (GPRS modem) • • Data exchanged with different Market/Transport Operators Data exchanged with different Market/Transport Operators • • Systems upgraded to new standards Systems upgraded to new standards • • Centralized database Centralized database TCP/IP METERING (GPRS modem) • Meteorological models • Meteorological models • Short time real-data-based models • Short time real-data-based models 58
  • 60. Enel Green Power’s strategy on wind • Develop growth options in core markets • Develop growth options in core markets • Maintain a diversified geographical presence • Maintain a diversified geographical presence • Mixed development model • Mixed development model • Capture opportunities in equipment procurement • Capture opportunities in equipment procurement CapEx (m€) Installed capacity (MW) Energy production (TWh) Total 09-13 = 2,194 m€ +124% +213% 1% 2,773 6.4 1,237 99% 2.1 Growth Maintenance 2008 2013 2008 2013 59
  • 61. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 60
  • 62. Solar Photovoltaic Ingmar Wilhelm Investor Day Rome - April 22nd, 2009
  • 63. The Market: solar energy world-wide Irradiation W/m2 • All major renewable energy sources such as hydro, wind, and obviously 350 photovoltaic power ultimately come 300 from the sun 250 • Total solar energy absorbed by the Earth 200 is 3,850,000 EJ (exajoules) per year 150 • Total Wind energy on Earth is 2,250 EJ 100 and total Biomass energy is 3,000 EJ per year 50 0 • Total Human Primary Energy use is some 500 EJ per year Source: NASA 2008 (of which electricity some 12%) The map shows average irradiation on Earth. The black spots represent the space necessary to replace the world’s primary energy supply with solar electricity. 18 TWe equals 568 EJ. 62
  • 64. Worldwide installed Photovoltaic Capacity Cumulative Power in GW 210 x15 85 x15 15 1 2000 2008 2015 2020 • Capacity growth rates of photovoltaic power above 15% per year • Capacity growth rates of photovoltaic power above 15% per year • In 2008 worldwide capacity increased by over 5,000 MW • In 2008 worldwide capacity increased by over 5,000 MW Source: Enel analysis on WEO 2008, industry reports 63
  • 65. The Market: Europe 75 Irradiation x8 1,600-1,750 kWh/m2* year 1,400-1,600 45 1,200-1,400 1,050-1,200 <1,050 x45 9 0.2 2000 2008 2015 2020 • Europe’s installed photovoltaic capacity today is over 9,000 MW • Europe’s installed photovoltaic capacity today is over 9,000 MW • Very high irradiation levels around the Mediterranean basin • Very high irradiation levels around the Mediterranean basin Source: EPIA Policy driven Scenario, Enel analysis 64
  • 66. The Market: Italy Irradiation 1,000 18 x 45 1,200 1,400 8 x 200 1,600 0.4 1,800 0.002 2000 2008 2015 2020 Global horizontal irradiation kWh/m2 * year • In 2008 over 340 MW of new capacity: Italy is among global TOP 5 • In 2008 over 340 MW of new capacity: Italy is among global TOP 5 • High irradiation levels in the Southern parts of Italy • High irradiation levels in the Southern parts of Italy 65
  • 67. Medium/long term technology evolution Short term Medium term Long term 1-5 years 5-10 years 10+ years Wave 1 – Crystal Silicon (c-Si) Solar PV Solar PV Wave 2b – Thin film: Wave 2a – Thin film: Copper, Indium, Gallium, amorphous Silicon (a-Si) Selenide (CIGS) Cadmium Telluride (CdTe) nano-technologies Solar Solar Wave 3 – Solar thermal thermal thermal • a-Si thin film evolves as a new competitive large-scale technology • a-Si thin film evolves as a new competitive large-scale technology • Still large potential for technological evolution • Still large potential for technological evolution 66
  • 68. Key driver for market growth: grid parity Average power price for households c-Si cumulative installed EUR/KWh capacity in 2020 in GW 0.70 0.65 0.60 0.55 Cost to generate power Cost to generate power 0.50 with solar system @ ca. with solar system @ ca. EUR4.70/Wp EUR4.70/Wp 0.45 0.40 0.35 California Tier 5 2008 0.30 Germany 0.25 Japan Italy 0.20 France Portugal US Spain Australia 0.15 North East 2015 California other 0.10 South Korea 2020 Greece 0.05 China Southwest US India 0 Annual solar 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 energy hours • Grid parity to be reached in several countries within the next 5 years • Grid parity to be reached in several countries within the next 5 years • Italy will be the first “grid parity” market in Europe • Italy will be the first “grid parity” market in Europe 67
  • 69. Enel Green Power positioning along the value chain Manufacturing Distribution Development Construction O&M Manufacturing Distribution Development Construction O&M •Building & •Supplying of •Land Scouting •Final design •Plant visual Production photovoltaic inspection Major •Due diligence •Modules, inverters, Major Equipment* components BOS integration •PV testing content content •Conceptual design •Plant certification •PV field measurement Long Term EGP EGP Partnership Enel.si EGP IPP Projects EGP / Enel.si •Flexible •Procurement •Dedicated •Specialized •Combined contracts development and engineering team: O&M with •Franchising engineering team Construction Project existing •Set of asset- network with over management renewables based and 450 entrepreneurs Activity commercial •Network of Activity •Over 50 MW of PV long-term PV installers installed in past supply options throughout three years under study Italy (*) Silicon Crystalline Production Plant 68
  • 70. Typical development process: 9-12 months Due Project Project Permitting Land Scouting Due Project Project Permitting Land Scouting diligence Finance Engineering Authorization diligence Finance Engineering Authorization Duration 1 1 1-2 1 6-9 Duration (months) (months) • Solar energy • Feasibility study on • Project • Approval • Administrative potential production potential presentation design procedures and costs (material, (building • Cost • Discussion with BOS, grid, etc.) statement, grid Description (purchase/ banks Description connection, rental) • Conceptual design leases, etc.) • Data base local • Valuation • Network with • Project • Regulatory regulations • Due diligence credit institutes Management expertise • Relationship capabilities and design Key • Permitting & Key capabilities • Screening • Business authorization competencies competencies capabilities • Design tools modeling (CAD) 69
  • 71. Typical project economics for a new entrant Key drivers Example Italy Drivers Values 2008 2020 • CapEx1 • EUR 4.30 million/MW • EUR 1.60 million/MW Investment Investment • OpEx2 • EUR 40,000/MW • EUR 35,000/MW • Load factor • 1,250 hours • 1,250 hours Operating Operating • Useful life • 20 years • 20 years • Productivity • 0.5%/year • 0.5%/year decay (1) Average of thin film technologies. Efficiency around 9%. (2) 10 MW power plant (insurance not included) 70
  • 72. Large Scale Remuneration scheme by country BIPV/Small scale Average remuneration Country Type of remuneration scheme 2008, EUR/MWh Portugal • Feed-in tariff1 310 650 Italy • Feed-in tariff2 450 590 France • Feed-in tariff 3 320 570 Greece • Feed-in tariff4 407 503 Spain • Feed-in tariff or wholesale + 320 340 premium5 (1) Assuming 310 EUR/MWh for ground installation and 650 for plants smaller than 3.68 kWp (2) Assuming 360 EUR/MWh for ground installation + ~90 EUR/MWh for energy sale into the market and max 490 for BIPV (3) Assuming 320 EUR/MWh for ground installation and 570 EUR/MWh for BIPV (4) Assuming 403 EUR/MWh for ground installation on mainland and 503 EUR/MWh for small plant on islands. In addition, 30% CapEx subsidy can be awarded (5) Assuming 320 EUR/MWh for ground installation and 340 for roof top installations 71
  • 73. Enel Green Power’s solar pipeline development Selected investment opportunities 900 1,000 Total 1,100 Montalto di Castro Carpio de Tajo Nazzano N. plants 4 1,200 4 MW Cerano 1,300 Pipeline 592 MW 1,400 Serre P. Codrongianos 1,500 Palazzo Guijo de Coria 1,600 1,700 1,800 Priolo Gargallo Adrano Iberia • Very high irradiation Italy • High irradiation in Southern Italy Pipeline 325 MW • Positive policy scenario N. plants 4 • Positive policy scenario • Diversification into CSP 4 MW Pipeline 267 MW • Cost competitive projects at existing Enel sites • Projects with fast authorization process 72
  • 74. Enel.si: access to the prosperous retail market Business model Over 450 franchisees Business model locally distributed over Italy • Franchising: local entrepreneurs supported by Enel.si • Enel.si provides centralized communications, products, technical assistance, finance solutions, sales and technical training platform • Development of distributed renewable energy generation devices and energy efficiency solutions Status Status • Over 450 franchisees with local points of sale • Over 50 MW photovoltaic solutions sold Development opportunities Development opportunities • Refueling product pipeline with new innovative applications • Expansion of franchise network to over 1,000 • Extension of business model to selected countries with local partners 73
  • 75. Strategy: Solar Photovoltaic • Large-scale power plants in key geographies • Large-scale power plants in key geographies • Upstream value chain integration • Upstream value chain integration • Downstream integration into retail market • Downstream integration into retail market CapEx (m€) Installed capacity (MW) Energy production (GWh) Total 09-13 = 202 m€ +1,983% n.a. 75 100% 59 4 2 Growth Maintenance 2008 2013 2008 2013 74
  • 76. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 75
  • 77. Business Development Model Roberto Deambrogio Investor Day Rome - April 22nd, 2009
  • 78. The Workflow for Creating Value in Enel Green Power Staff Functions: ICT, Communication, Corporate, AFC, Regulatory, Legal, HR, Audit, Procurement Business EPC O&M Development Integration M&A Project identification Realization of approved Plant operation Screening projects Production optimization Valuation Integration of acquisitions Continuous improvement Permitting CapEx expenditure EBITDA generation Approval process CapEx allocation 77
  • 79. Strategic approach - Greenfield and co-development Greenfield Co-development • Market Monitoring • Implementation of the pipeline • Strong local relationship with strategic partners in medium term • Take advantage of Enel development capabilities • More rapid development process • Higher return projects • Scalability and replicability of the Joint Development Agreements • Acquisition of a cost-free option to invest • Complementary set of skills with Partners • Skilled local team required • Success-fee based agreements to • 1-3 years as lead time share the development risk and upside Fully integrated geothermal operator A strong and significant pipeline can lead EGP to optionality, A strong and significant pipeline can lead EGP to optionality, more flexibility and profitable growth more flexibility and profitable growth 78
  • 80. Enel Green Power additional capacity Most recent deals finalized and plants put in operation Enel Green Power presence • October 2008: finalization of Tradewind refinancing • Plants put in operation • October 2008: Smoky II (150 MW) • January 2009: Newind (27 MW) in Newfoundland, Canada • April 2009: Saltwells and Stillwater 65 MW geo • July 2008: acquisition of projects for 70 MW wind • August 2008: JDA for wind • June 2008: acquisition of a development for 150 MW pipeline for 120 MW wind, COD starting from 2009 • July 2008: acquisition of 1,000 MW wind pipeline • December, 2008: acquisition of 2 wind projects (total of 39 MW) in the area of Kamen Bryag and Shabla • December 2008: acquisition of 850 MW wind pipeline • 2008: 79 MW put in operation, wind • July 2008: acquisition of 1,400 MW • April-July 2008: acquisition of of wind pipeline 300 MW wind pipeline • 43 MW in operation, wind and hydro 79
  • 81. Enel Green Power Development Pipeline Weight on total capacity (%) A solid pipeline*… …evenly split among geographies… (GW) (GW) 2.8 16.7 10.7 16.7 5.3 2.2 2.6 3.8 3.8 1.6 0.6 Under Highly confident Likely (50%) Potential (20%) Total Italy Iberia Europe North Latin Total construction (90%) America America (100%) 3% 10% 23% 64% 100% 23% 15% 13% 32% 17% 100% 6 GW …with projects in four technologies (GW) 0.5 0.6 0.1 16.7 • 6 GW of solid pipeline plus 10.7 GW • 6 GW of solid pipeline plus 10.7 GW 0.6 14.9 of back-up options of back-up options • Financial discipline: geographies • Financial discipline: geographies and technologies compete for and technologies compete for capital allocation on the base of capital allocation on the base of profitability profitability Wind Hydro Geo Solar Other Total 89% 4% 3% 4% <1% 100% * Probability of project becoming operational at exp. COD Note: Proforma data; Endesa not included (accounting for 12.4 GW pipeline) 80
  • 82. Area Europe - Enel Green Power positioning Focus Italy Market-Resource The Italian Government has set ambitious 30 GW targets: •12 GW of wind 4.6 GW •9.5 GW of solar •Approx. 8.5 GW of hydro, biomass and 3 geothermal 2008 2020 Source: Position Paper Italian Government Regulatory Among the highest incentives for Renewables in Europe: 2 1 • CIP6: feed-in tariff for plants with COD up to 1999 • Green Certificates: by technology • “Conto Energia”: feed-in tariff for solar PV plants 2 Enel Green Power’s strengths 1. South: approx. 1,400 MW wind pipeline and 80 MW • Wind: Synergies with hydro O&M; more than 100 employees PV solar pipeline dedicated to BD activities and construction 2. Islands: approx. 400 MW wind and 150 MW PV solar pipeline • Hydro: 3 Business units, 24 O&M units; more than 600 employees 3. Rest of Italy: approx. 250 MW wind, 200 MW • Solar: Enel.si, leader in Italy on PV market; ~ 400 franchisee and geothermal and 50 MW PV solar pipeline ~35 employees dedicated to design and “turn key” projects Significant growth due to favorable regulatory framework, Significant growth due to favorable regulatory framework, with incentives for wind and solar PV with incentives for wind and solar PV 81
  • 83. Area Europe - Enel Green Power positioning Focus Rest of Europe Market-Resource 1,030 GW(1) max • EU 20-20-20 Directive • Most Countries are new or developing 620 GW(1) min wind markets 390 GW(1) • Spain, France and Greece key markets for solar development 2008 2020 3 1 Regulatory 4 • Tradable Green Certificates (Romania) • Feed in tariff (France, Greece, Spain, Bulgaria) 2 • Investment incentives (Greece) • Tax incentives (France) 1. ROMANIA and BULGARIA – 75 MW wind farm under construction and 500+ MW wind pipeline Enel Green Power’s strengths 2. GREECE – 1,400 MW wind pipeline • Spain: since 2003 presence in the market through EUFER 3. FRANCE - 95 MW wind farms under construction and more than 400 MW wind pipeline • Romania: synergies with Enel’s three Discos • France, Greece, Bulgaria: presence as a growth platform 4. SPAIN - 122 MW wind under construction and 2,500+ MW pipeline(2) (wind, hydro, biomass, solar, and cogen) A strong boost by EU to reach ambitious targets makes our markets A strong boost by EU to reach ambitious targets makes our markets attractive in terms of growth and profitability attractive in terms of growth and profitability (1) Including Italy (2) Corresponds to Enel Green Power share (50%) 82
  • 84. US outlook - New regulation and its implication Objectives’ of Obama Distinct pieces of climate and Administration on renewables energy legislation in 2009 Stimulus package Implications for renewable players Job creation • Up to ~98 USD billion energy- related funding • Higher regulatory “stability” • Substantial direct loans, loan guarantees and grants » Multi-year renewal of PTC/ ITC Energy Bill • Easier financing conditions Reducing oil » Loan guarantees • Expected to address: dependence – Federal renewable portfolio standard (RPS) • Introduction of “top-line” incentives – New transmission lines » Federal RPS – Energy efficiency standards – Federal consumption » Strong induced demand for green energy Greenhouse Climate Bill » Renewable certificates to reduce gas reduction • Likely focus on: forced reliance on financial partners – Creating a carbon cap-and-trade system or other carbon reduction system – Energy efficiency 83 Source: HR1; Center for American Progress
  • 85. Area North America - Enel Green Power positioning Market-Resource • Large potential still untapped 550 GW max • Wind development starting in key markets 230 GW 330 GW min (Mexico, Brazil and Chile) • Central American regional market being 2008 2020 implemented 2 Regulatory • Production Tax Credit (PTC): historically main driver in the US; new 3 incentives in the Stimulus Bill (ITC. Grants) 1 • Radical change in policy support (PTC already extended, Federal RPS, Carbon legislation) 1. US Midwest: Tradewind exclusive developer for Enel with substantial pipeline (4,000+ MW) Enel Green Power’s strengths 2. North-East US and Canada: 600+ MW greenfield Wind and Solar projects • Presence in the North American market since 2001 • 748 MW installed in four different technologies 3. Nevada: commissioning 63 MW gross geo plants and approx. 100+ MW geo pipeline • Long term experience in the US RE market (20+ years) • Significant pipeline in geo and wind Large and fast growing market, solid policy support, Enel Green Power Large and fast growing market, solid policy support, Enel Green Power positioned to seize significant growth opportunities positioned to seize significant growth opportunities 84
  • 86. Area Latin America - Enel Green Power positioning Market-Resource 4 • Large potential still untapped 330 GW max • Wind development starting in key markets 3 150 GW 200 GW min (Mexico, Brazil and Chile) • Central American regional market being 2008 2020 implemented 1 Regulatory • Tax incentives and Clean Development Mechanism (CDM) • Chile: New Quota Obligation system or RPS scheme 2 • Brazil: Subsidies fund; Financing; Auctions • Mexico: Target by law up 2012: RES 26%; tax incentives; BOT tenders by CFE; regulation to boost renewables being drafted 1. BRAZIL - JDA with for wind development (1,000 MW) and 23 MW repowering of existing hydro plants 2. CHILE - JDA (850 MW wind pipeline); 120 MW geo pipeline Enel Green Power’s strengths 3. CENTRAL AMERICA i. 85 MW hydro under construction • Presence in Latin America since 2001 ii. 600+ MW hydro and geo pipeline • Leverage on key competences in different technologies 4. MEXICO - JDAs for wind development (2,000 MW) under negotiation Focus on three markets: Chile, Brazil and Mexico while pursuing the Focus on three markets: Chile, Brazil and Mexico while pursuing the interesting opportunities in the other markets interesting opportunities in the other markets 85
  • 87. Enel Green Power Business Plan 2009-2013 Additional Capacity by Geography (GW) Coverage Ratio ~ 6x ~ 6x ~ 20 x ~ 14 x ~ 9x (Pipeline/Add. Installed Capacity) 0.2 1.9 0.3 0.8 0.6 Italy Rest of North Latin America Total Europe America Weight on total additional 34% 41% 14% 11% 100% capacity (%) Pipeline covers 9 times additional capacity of Business Plan 2009-2013 Pipeline covers 9 times additional capacity of Business Plan 2009-2013 86
  • 88. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 87
  • 89. Financial Highlights: 2008 Results and 2009-2013 Business Plan Alberto De Paoli Investor Day Rome - April 22nd, 2009
  • 90. Proforma 2007 and 2008 M€ 2008 2007 Δ% Revenues 1,852 1,536 +21% EBITDA 1,188 989 +20% EBITDA margin 64% 64% n.a. EBIT 772 608 +27% Net income 376 n.a. n.a. Established competencies in development and O&M 89
  • 91. (*) Net Production 2008 Biomass(**) 2% Wind Geo 12% Net Production (TWh) 30% 17.2 +17% +17% 14.7 Hydro 56% Abroad 37% 2007 2008 Italy 63% (*) Proforma (**) Including Cogeneration 90
  • 92. (*) Revenues 2008 Other (***) Wind 15% 13% Revenues (€ mln) Biomass (**) 1% 1,852 +21% 1,536 Geo Hydro 31% 40% Abroad 29% 2007 2008 Italy 71% (*) Proforma (**) Including Cogeneration (***) Including Revenues from PV Modules selling 91
  • 93. (*) EBITDA 2008 Other(***) Biomass (**) 1% Wind 1% 17% EBITDA (€ mln) Geo 39% 1,188 +20% 989 Hydro 42% Abroad 28% 2007 2008 EBITDA Margin (%) 64.4% 64.2% Italy 72% (*) Proforma (**) Including Cogeneration (***) Including Revenues from PV Modules selling 92
  • 94. (*) CapEx 2008 Biomass (**) Other (***) 1% 3% Italy Geo 39% 25% Wind Hydro Abroad 62% 9% 61% Total CapEx 2008 = 951 € mln (*) Proforma (**) Including Cogeneration (***) Including Revenues from PV Modules selling 93
  • 95. other Operating targets 2009-2013 geo hydro wind Net installed capacity* (GW) Net production* (TWh) 6.3 +42% +42% 22.7 +31% +31% 0.13 17.2 0.43 4.5 0.8 0.31 5.8 0.05 0.7 5.2 2.6 9.9 2.5 9.7 2.8 6.4 1.2 2.1 2008 2013 2008 2013 Load 46% 42% factor (*) Other (MW): 2008: Solar 4, Biomass 21, Cogen. 26; 2013: Solar 76, Biomass 26, Cogen. 31 (**) Other (GWh): 2008: Solar 2, Biomass 172, Cogen. 136; 2013: Solar 59, Biomass 206, Cogen. 165 94
  • 96. Operating targets 2009-2013 Net Production 2008 (17.2 TWh) 2013 (22.7 TWh) Biomass(*) Biomass(*) Wind 2% 2% Wind Geo 12% Geo 30% 28% 26% Hydro 56% Hydro 44% Italy Abroad 53% 37% Abroad 47% Italy 63% (*) Including Cogeneration 95
  • 97. Financial targets 2009-2013 Revenues (M€) EBITDA (M€) 2,855 +54% +54% 1,602 +35% +35% 1,188 1,852 2008 2013 2008 2013 Cum. EBITDA 09-13 = 6.7 bn € 96
  • 98. Financial targets 2009-2013 EBITDA 2008 (1.2 € bln) 2013 (1.6 € bln) Other Biomass Solar Other(**) 1% Wind (*) 1% 1% 1% 17% Geo Wind 28% Geo 35% 39% Hydro Hydro 42% 35% Abroad 28% Abroad 35% Italy Italy 72% 65% (*) Including Cogeneration (**) Including Biomass, Cogeneration and Other 97
  • 99. Financial targets 2009-2013 CapEx Operating Cash Flow 09-13/CapEx 09-13 Solar Other (*) (€ bln) 6% 3% Geo 18% >1.4 x >5.0 Wind Hydro 59% 14% 3.7 Abroad 54% Operating Cash CapEx Italy Flow 46% Total CapEx 09-13 = 3.7 bn € (*) Including Biomass, Cogeneration and Other 98
  • 100. Investor Day Rome - April 22nd, 2009 • Opening remarks F. Conti • Enel Green Power: a leading player in renewable energies F. Starace • Focus on technologies: • Geothermal T. Volpe • Hydro V. Vagliasindi • Focus on technologies: • Wind M. Bezzeccheri • Solar Photovoltaic I. Wilhelm • Business Development Model R. Deambrogio • Financial highlights A. De Paoli • Conclusions F. Starace 99
  • 101. Conclusions Francesco Starace Investor Day Rome - April 22nd, 2009
  • 102. Enel Green Power: where we are 2008* EGP presence Enel Green Power 4,464 MW 17.2 TWh North America 748 MW 1.8 TWh France Romania, 12 MW Bulgaria 0.01 TWh Pipeline Iberia Latin America 399 MW 667 MW 0.8 TWh 3.5 TWh Greece Italy 91 MW 2,547 MW 0.2 TWh 10.9 TWh * Proforma data Note: Endesa capacity not included (1,026 MW: 799 MW in Iberia and 227 MW in Latin America) 101
  • 103. Enel Green Power: how we want to grow The industry so far • Wind-only portfolio • Balanced portfolio Technology mix Technology mix of technologies • Polarized presence • Diversified presence Geographic presence Geographic presence • Heavy dependence • Limited dependence Long-term Long-term on incentive on incentive sustainability sustainability schemes schemes • Debt • Operating cash flows Financing Financing Key Key • Growth • Return on Investment Performance Performance • MW (Installed capacity) • TWh (Energy production) Indicators Indicators A new paradigm for renewables: sustainable and profitable growth A new paradigm for renewables: sustainable and profitable growth 102
  • 104. Enel Green Power: our value proposition Unique portfolio of technologies and geographies Unique portfolio of technologies and geographies Cash Flow positive since Year 1 Cash Flow positive since Year 1 Solid pipeline to capture additional growth Solid pipeline to capture additional growth 103
  • 105. Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING ENEL’S GREEN POWER INVESTOR DAY. THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGENCE OR OTHERWISE FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THESE SLIDES OR THEIR CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THESE SLIDES OR ANY MATERIAL DISCUSSED DURING THE ABOVE MEETINGS. THIS DOCUMENT IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED DURING THE MEETING MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND THEREFORE YOU SHOULD NOT PLACE UNDUE RELIANCE ON THEM. FORWARD LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES. WE CAUTION YOU THAT A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL RESUTLS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN ENEL’S CORE ENERGY BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT AND FUTURE CAPITAL EXPENDITURE. 104
  • 106. Contact us Enel Investor Relations Team (investor.relations@enel.com) Luca Torchia (Head of IR) +39 06 83053437 Pedro Cañamero +39 06 83055292 Elisabetta Ghezzi +39 06 83052708 Donatella Izzo +39 06 83057449 Federica Todaro +39 06 83059502 Angela Tretola +39 06 83052062 Visit our website at: www.enel.it (Investor Relations) 105

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