Enel Green Power Investor Day Rome, April 22 2009

Investor Day

Rome - April 22nd, 2009

Investor Day

• Opening remarks F. Conti

• Enel Green Power: a leading player in renewable energies F. Starace

• Focus on technologies:

• Geothermal T. Volpe

• Hydro V. Vagliasindi


• Wind M. Bezzeccheri

• Solar Photovoltaic I. Wilhelm

• Business Development Model R. Deambrogio

• Financial highlights A. De Paoli

• Conclusions F. Starace

1

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

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

Investor Day












4

Enel Green Power:
a leading player in renewable energies

Francesco Starace

Investor Day

5

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

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

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

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

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

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

Enel Green Power: four pillars to build upon

Balanced technology mix

Diversified geographical presence

Low dependence on incentive schemes
Low dependence on incentive schemes

Growth flexibility
Growth flexibility

12

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

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

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

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

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

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

Investor Day












19

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

Resource availability
Geothermal

Ring of Fire

Geothermal activity

22

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

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

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

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

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

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

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

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

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

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

Enel Green Power’s strategy on geothermal

• Leverage our unique
• Leverage our unique
competencies
competencies

• Selectively develop capacity in
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

Investor Day












34

Hydroelectric

Vittorio Vagliasindi

Investor Day

35

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

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

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


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


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


40


Average remuneration

Italy • Green certificates 180

Spain • Feed-in tariff or wholesale + 89
premium1



Portugal • Feed-in tariff 76

(1) Operator can choose preferred remuneration scheme. A cap is defined by the regulation
41

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

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

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

Enel Green Power’s strategy on hydroelectric

• Leverage EGP’s unique
• Leverage EGP’s unique
long-standing competencies
long-standing competencies


Total 09-13 = 520 m€
+5% +3%

2,497 2,627 9.7 9.9
38%
62%

Growth
Maintenance 2008 2013
2008 2013

45

Investor Day






• Coffee break







• Lunch (Q&A)

46

Wind

Maurizio Bezzeccheri

Investor Day

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

Resource availability
Wind (Intensity)

Wind speed over land

3 6 9 m/s

49

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

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


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

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


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

(1) At same natural conditions, higher load factor achieved due to more efficient turbines

54


Average remuneration

Italy • Green certificates 180

Romania • Green certificates (1.5x for wind) 125

• Feed-in tariff or wholesale +
Spain 88
premium1



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
(4) Assuming wholesale price of 50 EUR/MWh + tax deductible credit equivalent to 17 EUR/MWh
55

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

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

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


•
• 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


• Meteorological models
• Meteorological models
• Short time real-data-based models
• Short time real-data-based models

58

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

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

Investor Day












60

Solar Photovoltaic

Ingmar Wilhelm

Investor Day

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

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

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

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

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

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

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

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


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

Enel Green Power Investor Day Rome, April 22 2009

Enel Green Power Investor Day Rome, April 22 2009

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Enel Green Power Investor Day Rome, April 22 2009