Enel Americas S.a. · BCS:ENELAM
Enel Americas — Corporate Update (June 2017)
23 slides from Enel Americas's corporate update, June 2017
Slide 1: Argentinean Regulatory Framework – Analyst Update Meeting
Argentinean Regulatory Framework Analyst Update Meeting June 2017
Slide 2: Agenda
Agenda Argentina – General View Market description Regulatory framework Generation Distribution 2
Slide 3: Argentina Country Overview
Argentina Country Overview Access to Basic Services & Technology Estimated Population1 (2016) MODERN ENERGY 2 43,590,368 ‒ Homes with access to natural gas: 56.2% 45.62% (19,900,257) in City of ‒ Homes with access to Electricity: 98% Buenos Aires & Buenos Aires ‒ Individuals without electric service
Slide 4: The Enel Group in Argentina
The Enel Group in Argentina El Chocón 1,328 MW HIDRO Installed power: 1,328 MW Type: Hydraulic / Concession: Until August 2023 CTM/TESA Lines (2x1,050 MW) Installed power: 2,360 MW Interconnection with Endesa Costanera Type: Combined Cycles (1,186 MW) Brazil Steam-Gas Turbines (1,138 MW) THERMAL 3,2
Slide 5: Description of the Legal Framework
Description of the Legal Framework Rules that make up the Regulation Intervening Regulators • Legal Framework, Law N ° 24065 • Regulatory Executive Order Secretariat of Energy National Electricity 1398/92 Regulatory Commission • Concession Agreement REGULATION • Rules of Supply • SEE resolutions rel
Slide 6: Market structure
Market structure Vertical separation of the system Generation (Gx) Transmission (Tx) Distribution (Dx) • Natural monopoly • Semicompetitive Market • Natural monopoly • Regulated busines, VAD is approved for 5 • Semicost plus retribution • Open access years. • Regulated busines • Open acces • Market
Slide 7: Agenda
Agenda Argentina – General View Market description Regulatory framework Generation Distribution 7
Slide 8: Generation Sector
Generation Sector Argentina Figures Installed Capacity by Technology Main participants (MW share%) 4,558 MW Total installed capacity as at 2016 33,862 MW (*) Property of the National Government 8
Slide 9: Transmission Sector
Transmission Sector Transmission - SADI Corporate Groups 19,532 km of line Trunk Available Transport Capacity and Distribution Delivery Point. 14,192 km in 500 kV Most of the grids are close to their capacity limits in times of greater demand TRANSMISSION SYSTEM 500 kV 330 kV 220 kV 132 kV 66 kV 33
Slide 10: Distribution Sector
Distribution Sector Distributors' Participation - Total Energy Distributed 133 TWh (year 2016) Pampa Holding (EDENOR) ENEL (EDESUR) Rogelio Pagano Buenos Aires province (EDELAP, EDEA, EDEN, EDES) - Salta (EDESA) Others Cartellone Tucumán (EDET) and Jujuy (EJESA) Vila - Manzano Mendoza (EDEMSA) and L
Slide 11: Agenda
Agenda Argentina – General View Market description Regulatory framework Generation Distribution 11
Slide 12: Evolution of regulation in Argentina
Evolution of regulation in Argentina RTI of National Distributors RTI of Plan Renovar 1.0 y 1.5 Transport • First RTI since 1992. • Definition of WACC , Asset Base and • Offers: 123 for a total of 6.366 MW Remuneration Methodology • Second RTI in 25 years • Adjudicated: 2.424 MW (59 projects) • Pend
Slide 13: Agenda
Agenda Argentina – General View Market description Regulatory framework Generation Distribution 13
Slide 14: Generation Regulation
Generation Regulation Market Segmentation pursuant to Key regulatory considerations: Applicable Regulation • Remuneration for power and energy based on a cost recognition system pursuant to the technology and scale for the existing New Energy Energy (installed before the year 2006). (PPA) 15% • Capa
Slide 15: Regulatory Framework for Generation
Regulatory Framework for Generation Remuneration for Existing Generation(*) Resolution SEE N ° 19/2017 • Payment according to Capacity (available) pursuant to the technology and size. • Variable remuneration according to energy generated (non fuel) and operated. REMUNERATION • Possibility to enter i
Slide 16: Renewable Energy Tender Offers
Renewable Energy Tender Offers GOALS PROGRESS • Law 27191 sets forth a phased target for non-conventional • The Government launched the RenovAr Program in stages renewable energy to reach 20% of demand in 2025. to boost the renewable energy sector and reach the first target of 8% (2018). Does not co
Slide 17: Energy Projects Tender Offers
Energy Projects Tender Offers (Thermal generation and electric and fuels transport) Resolution MEYM N ° 420/2016 Presented power (MW) Expressions of Interest for 196 projects, divided into categories: • New Generation (combined cycle, TG and co- Cierre CCGT Expressions of generation): 34 GW CCGT Nue
Slide 18: Agenda
Agenda Argentina – General View Market description Regulatory framework Generation Distribution 18
Slide 19: EDESUR Executive Summary Res. ENRE 64/2017
EDESUR Executive Summary Res. ENRE 64/2017 Previous Situation Current Situation • Concession Agreement Definition of business variables and Tariff Scheme of year • Capital base VNR depreciado técnico 1992. R • • Rate of return +WACC real fijada por el ENRE Remuneration Methodology PRICE CAP •
Slide 20: EDESUR Executive Summary Res. ENRE 64/2017
EDESUR EXECUTIVE SUMMARY Res. ENRE 64/2017 • Methodology PRICE CAP • Wacc REAL RATE +12.46% (before taxes) • Currency unit Angentinian pesos • Adjustment formula Dec 15 to Feb 17 IPC • Theoretical VAD resulting 14.540 MMar$ (≈ 910 MMU$D) - Increase in 3 installments with financial recovery
Slide 21: EDESUR New Quality Scheme
EDESUR New Quality Scheme FOCUS • Scheme of Increasing Sanctions with an Improvement Path In reducing the duration of • Average Replacement Time from almost 5 hours to less than 2 hours outages (SAIDI) • New Obligations for Commercial Service and New Supplies FOCUS In Customer • Time of Commercial S
Slide 22: Tariff structure
Tariff structure Residential tariff (jun 2017): 88 u$s/MWh for a 200 kWh/month customer (with taxes) Gradual Path in reduction of subsidies: Public hearing 12/14/2016 % of coverage % Subsidy Large consumers % Subsidized with more of 300Kw • 66% Generation price (GUDI) % of coverage % Subsidy Small c
Slide 23: Thank you
ene Thank you