Enel Spa · MIL:ENEL
Enel Spa — Enel Green Power — Investor Day (April 2009)
106 slides from Enel Spa's investor day presentation, Apr 22, 2009
Slide 1: Investor Day
Investor Day Rome - April 22nd, 2009
Slide 2: Investor Day agenda
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 Develo
Slide 3: Global installed capacity
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
Slide 4: Enel Group renewable energy production
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 Total Enel Enel Group Group production production 79.2 79.2 TWh TWh44 (1) It includes Slovenske Elektrarne
Slide 5: Investor Day agenda
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 Develo
Slide 6: Enel Green Power: a leading player in renewable energies
Enel Green Power: a leading player in renewable energies Francesco Starace Investor Day Rome - April 22nd, 2009 5
Slide 7: Renewable energies: strong fundamentals in all geographies
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 1,0
Slide 8: Renewable energies: strong fundamentals in all technologies
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 Geotherma
Slide 9: Enel Green Power: large renewable player well positioned in growth geographies
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
Slide 10: Enel Green Power: active in all four key technologies
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 – No
Slide 11: Company structure
Company structure Tot. 2,564 Employees 1,566 • Group holding • Italian geo, hydro Enel Enel Green Green Power Power SpA SpA and wind Italy activities 116 Italian solar PV Enel Enel Green Green Power Power Enel.Si activities Enel.Si srl srl International International BV BV Italy Italy Holding of all
Slide 12: Organizational model
Organizational model Renewable Renewable Energies Energies F. Starace Regulatory Regulatory Corporate Corporate Human Human Legal Legal Affairs Affairs Affairs Affairs Affairs Affairs Resources Resources F. Egidi F. R. Napolitano G. Fazio G. Stratta Administration Administration Business Business Pr
Slide 13: Enel Green Power: four pillars to build upon
Enel Green Power: four pillars to build upon Balanced Balanced technology technology mix mix Diversified Diversified geographical geographical presence presence Low Low dependence dependence on on incentive incentive schemes schemes Growth Growth flexibility flexibility 12
Slide 14: Balanced technology mix
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 High load load factor factor and and low low dependence depe
Slide 15: Diversified geographical presence
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- Feed-in Feed- Feed-in, Market Spain 399 MW 100% 104 €/MWh +Premium Europe France 12 MW 100% Feed
Slide 16: Growth flexibility
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%) conf
Slide 17: Development model
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
Slide 18: Leveraging on competencies
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 explorat
Slide 19: Balanced growth on multiple technologies
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-s
Slide 20: Investor Day agenda
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 Develo
Slide 21: Geothermal power
Geothermal power Toni Volpe — = 7 Rome, April 22, 2009
Slide 22: Worldwide installed capacity
Worldwide installed capacity GW 4% CAGR 19 13 10 8 2000 2008 2015 2020 Slow Slow but but constant constant growth growth due due to to scattered scattered resources resources and and long long development development time time Source: IEA; IGA; Worldwatch Institute; United Nations; Enel analysis on
Slide 23: Resource availability
Resource availability Geothermal Ring of Fire Geothermal activity 22
Slide 24: Geothermal systems
Geothermal systems Type of reservoir Application/technology Heat Heat pumps pumps 0 - 500 m Dry Shallow reservoir Heat Heat exchange exchange Hydrothermal Depth 500 – 5,000 m Electricity Electricity generation generation -- Systems: shallow and Conventional Conventional technologies technologies dee
Slide 25: Global installed capacity 2008 conventional technologies
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) Hi
Slide 26: Technological evolution
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 Long term term break-trough
Slide 27: Typical development process
Typical development process Surface Deep Deepexploration Feasibility Field Surface 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
Slide 28: The industry is mostly local, with only a few players operating supra-regionally
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 Capacit
Slide 29: Value chain
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 Gr
Slide 30: Typical project economics for a new entrant
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 •
Slide 31: Remuneration scheme by country
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
Slide 32: Enel Green Power installed base and pipeline
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 6
Slide 33: Focus on Italy geo plants
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 Continuous growth gr
Slide 34: Enel Green Power's strategy on geothermal
Enel Green Power’s strategy on geothermal •• Leverage Leverage our our unique unique competencies competencies •• Selectively Selectively develop develop capacity capacity in in North North America America and and Latin Latin America America CapEx (m€) Installed capacity (MW) Energy production (TWh)
Slide 35: Investor Day agenda
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 Develo
Slide 36: Hydroelectric
Hydroelectric Vittorio Vagliasindi Investor Day Rome - April 22nd, 2009 35
Slide 37: Worldwide installed capacity
Worldwide installed capacity GW 2% CAGR 1,240 1,069 962 783 2000 2008 2015 2020 The The most most important important “traditional” “traditional” renewable renewable energy energy Source: REN21, UDI database; McKinsey; Enel analysis on WEO 2008, industry reports. 36
Slide 38: Resources availability
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
Slide 39: Hydropower technology classified by usage and water head
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 availabi
Slide 40: Typical development process
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
Slide 41: Typical project economics for a new entrant
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
Slide 42: Remuneration scheme by country
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 remu
Slide 43: Enel Green Power installed base and pipeline
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
Slide 44: Focus on Italy hydroelectric power plants
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
Slide 45: Italy: re-powering of hydroelectric plants
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 More energy energy with with same same water water 44
Slide 46: Enel Green Power's strategy on hydroelectric
Enel Green Power’s strategy on hydroelectric •• Leverage Leverage EGP’s EGP’s unique unique long-standing long-standing competencies competencies •• Selectively Selectively develop develop capacity capacity in in North North America America and and Latin Latin America America CapEx (m€) Installed ca
Slide 47: Investor Day agenda
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 •
Slide 48: Wind
Wind Maurizio Bezzeccheri Investor Day Rome - April 22nd, 2009
Slide 49: Worldwide installed capacity
Worldwide installed capacity GW 383 % 10 A GR C 196 121 56 2000 2008 2015 2020 Very Very strong strong growth growth expected expected worldwide worldwide Source: Enel analysis on WEO 2008, GWEC 2008, industry reports. 48
Slide 50: Resource availability
Resource availability Wind (Intensity) Wind speed over land 3 6 9 m/s 49
Slide 51: Technology overview
Technology overview Average turbine price*, m€/MW •• CapEx CapEx reduction reduction has has been been starting starting in in early early 80s 80s •• Debottlenecking Debottlenecking of of •• Technology Technology evolution evolution led led to to supply chain supply chain decrease decrease inin CapE
Slide 52: Value chain dynamics
Value chain dynamics Driving factors Description Stakeholder affected • New manufacturing capacity (key Easing Easing out out • OEMs: reduced margins components) of of supply supply • Internalization of components • Operators: increased negotiation constraints constraints manufacturing by OEMs power
Slide 53: Typical development process
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 prese
Slide 54: Future landscape
Future landscape Key elements Key evidence • Wholesale grid parity already reached in some countries Wholesale Wholesale grid grid (e.g. Portugal, UK, Ireland) parity parity widely widely • Wholesale grid parity reached in the very short-term (by 2012) in reached reached several other countries (e.g
Slide 55: Typical project economics for a new entrant
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
Slide 56: Remuneration scheme by country
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
Slide 57: Enel Green Power installed base and pipeline
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 M
Slide 58: Enel Green Power positioning along the value chain
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
Slide 59: Centre of expertise to leverage on technological competencies
Centre of expertise to leverage on technological competencies SCADA (Supervisory Control And Data Acquisition) •• Real Real time time and and historical historical data data collection collection •• Supervision Supervision and and telecontrol telecontrol •• KPI KPI tracking tracking •• Fast Fast res
Slide 60: Enel Green Power's strategy on wind
Enel Green Power’s strategy on wind •• Develop Develop growth growth options options in in core core markets markets •• Maintain Maintain a a diversified diversified geographical geographical presence presence •• Mixed Mixed development development model model •• Capture Capture opportunities opport
Slide 61: Investor Day agenda
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 Develo
Slide 62: Solar Photovoltaic
Solar Photovoltaic Ingmar Wilhelm Investor Day Rome - April 22nd, 2009
Slide 63: The Market: solar energy world-wide
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 Eart
Slide 64: Worldwide installed Photovoltaic Capacity
Worldwide installed Photovoltaic Capacity Cumulative Power in GW 210 x15 85 x15 15 1 2000 2008 2015 2020 •• Capacity Capacity growth growth rates rates of of photovoltaic photovoltaic power power above above 15% 15% per per year year •• In In 2008 2008 worldwide worldwide capacity capacity increased
Slide 65: The Market: Europe
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 Europe’s installed installed photovoltaic photovoltaic capacity capacity today today is is over over 9,000 9,000 MW MW •• Very Very high high irradiat
Slide 66: The Market: Italy
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 In 2008 2008 over over 340 340 MW MW ofof new new capacity: capacity: Italy Italy is is among among global global TOP TOP 5 5 •• High High irrad
Slide 67: Medium/long term technology evolution
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 Solar PV PV Wave 2b – Thin film: Wave 2a – Thin film: Copper, Indium, Gallium, amorphous Silicon (a-Si) Selenide (CIGS) Cadmium Telluride (CdTe) nano-technologi
Slide 68: Key driver for market growth: grid parity
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 Cost to to generate generate power power 0.50 with with solar system @ solar system @ ca. ca. EUR4.70/Wp EUR4.70/Wp 0.45 0.40 0.35 California
Slide 69: Enel Green Power positioning along the value chain
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, in
Slide 70: Typical development process: 9-12 months
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 st
Slide 71: Typical project economics for a new entrant
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 • 2
Slide 72: Remuneration scheme by country
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
Slide 73: Enel Green Power's solar pipeline development
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
Slide 74: Enel.si: access to the prosperous retail market
Enel.si: access to the prosperous retail market Business Over 450 franchisees Business model model locally distributed over Italy • Franchising: local entrepreneurs supported by Enel.si • Enel.si provides centralized communications, products, technical assistance, finance solutions, sales and techni
Slide 75: Strategy: Solar Photovoltaic
Strategy: Solar Photovoltaic •• Large-scale Large-scale power power plants plants in in key key geographies geographies •• Upstream Upstream value value chain chain integration integration •• Downstream Downstream integration integration into into retail retail market market CapEx (m€) Installed cap
Slide 76: Investor Day agenda
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 Develo
Slide 77: Business Development Model
Business Development Model Roberto Deambrogio Investor Day Rome - April 22nd, 2009
Slide 78: The Workflow for Creating Value in Enel Green Power
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 optim
Slide 79: Strategic approach - Greenfield and co-development
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 proj
Slide 80: Enel Green Power additional capacity
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
Slide 81: Enel Green Power Development Pipeline
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 A
Slide 82: Area Europe - Focus Italy
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 in
Slide 83: Area Europe - Focus Rest of Europe
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
Slide 84: US outlook - New regulation and its implication
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”
Slide 85: Area North America - Enel Green Power positioning
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 (P
Slide 86: Area Latin America - Enel Green Power positioning
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 C
Slide 87: Enel Green Power Business Plan 2009-2013
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 (%) Pipeli
Slide 88: Investor Day agenda
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 Develo
Slide 89: Financial Highlights: 2008 Results and 2009-2013 Business Plan
Financial Highlights: 2008 Results and 2009-2013 Business Plan Alberto De Paoli Investor Day Rome - April 22nd, 2009
Slide 90: Proforma 2007 and 2008
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
Slide 91: Net Production 2008
(*) 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
Slide 92: Revenues 2008
(*) 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
Slide 93: EBITDA 2008
(*) 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
Slide 94: CapEx 2008
(*) 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
Slide 95: Operating targets 2009-2013
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;
Slide 96: Operating targets 2009-2013
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
Slide 97: Financial targets 2009-2013
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
Slide 98: Financial targets 2009-2013 EBITDA
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
Slide 99: Financial targets 2009-2013 CapEx
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
Slide 100: Investor Day agenda
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 Develo
Slide 101: Conclusions
Conclusions Francesco Starace Investor Day Rome - April 22nd, 2009
Slide 102: Enel Green Power: where we are
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
Slide 103: Enel Green Power: how we want to grow
Enel Green Power: how we want to grow The industry so far • Wind-only portfolio • Balanced portfolio Technology Technology mix mix of technologies • Polarized presence • Diversified presence Geographic Geographic presence presence • Heavy dependence • Limited dependence Long-term Long-term on incent
Slide 104: Enel Green Power: our value proposition
Enel Green Power: our value proposition Unique Unique portfolio portfolio of of technologies technologies and and geographies geographies Cash Cash Flow Flow positive positive since since Year Year 1 1 Solid Solid pipeline pipeline to to capture capture additional additional growth growth 103
Slide 105: Disclaimer
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 LOS
Slide 106: Contact us
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.ene