Enel is a multinational company in the energy sector and a leading integrated operator in the global electricity and gas markets, with a particular focus on the European and Latin American markets. The Group carries out operations in over 34 countries, manages the generation of more than 86 GW of net installed capacity and distributes electricity and gas through a network covering around 2.2 million kilometers. Enel, with almost 72 million end users worldwide, has the largest customer base among its European competitors and is one of Europe's leading electricity companies in terms of installed capacity and reported EBITDA.
COMPANY OVERVIEW
The Group reports an EBITDA of 15.7 billion euros and has almost 70,000 employees, operating a wide range of hydroelectric, thermoelectric, nuclear, geothermal, wind, solar and other renewable energy plants.
Enel has a strong commitment in relation to renewable energy sources, and research and development of new green technologies. Enel Green Power (EGP) is the publicly traded Group company dedicated to the generation of renewable energy, in addition to operating 42 GW net installed capacity sources based on hydro, wind, geothermal, solar and biomass generation in Europe, America and Africa. Enel Green Power is the renewable energy company with the most diversified intelligent technology among its global competitors.
Enel was the first energy company in the world to replace traditional electromechanical meters with smart meters, which allow to measure consumption in real time and manage contractual relationships remotely. Currently, around 26 million Italian customers are equipped with smart meters developed and installed by Enel. The Group has installed 7 million smart meters for its customer base in Spain, as well as carrying out pilot projects in the smart cities of Búzios (Brazil) and Santiago (Chile). This innovative tool is the key to developing smart networks, smart cities and electric mobility.
Safety is the main priority for the Group, and Enel adopts a proactive approach to the management of this important aspect of its operations, with a particular focus on the prevention and promotion of a culture of safety.
SHAREHOLDER STRUCTURE
Enel, which has been listed on the Milan stock exchange since 1999, has the largest number of shareholders of any other Italian company, with 849 million minor and institutional investors. Enel's main shareholder is the Ministry of Economy and Finance of Italy, which owns a 23.6% shareholding interest in the company. In addition to Enel, another thirteen Group companies are listed on the stock exchanges of Italy, Spain, Russia, Argentina, Brazil, Chile and Peru. Enel's commitment to the values enshrined in its Code of Ethics, its sustainability report and the adoption of international best practices that promote environmental protection, transparency and corporate governance, attracted international investment funds, insurance companies, pension funds and ethical funds as shareholders.
GLOBAL PRESENCE
As a multinational group, Enel is actively involved in the consolidation of its assets and the further integration of its businesses.
In Italy, Enel is the first electric company. It operates in the field of generation with the thermoelectric plants and renewable sources with 27.6 GW of installed capacity and 30 million customers.
In the Iberian Peninsula, after placing an additional 22% share capital of its Spanish subsidiary Endesa on the Madrid Stock Exchange, Enel now owns 70.1% of the leading electricity company in Spain and the second largest in Portugal. Endesa has approximately 22.7 GW of installed capacity and a strong presence in the sectora of distribution and sale of electricity and gas products, with around 12.4 million customers.
In Europe, Enel is also present in Slovakia, where it owns 66% of Slovenské Elektrárne, the largest electricity generator in the country and the second largest in Central and Eastern Europe. In Romania, the Group provides service to 2.9 million customers through its distribution network. Also in Romania, as well as in Greece, EGP owns and operates renewable source generation plants.
In Russia, Enel operates in the generation sector - where its subsidiary Enel Russia owns 8.8 GW of thermoelectric capacity - and in the retail distribution sector, Enel owns 49.5% of RusEnergoSbyt, one of the largest independent suppliers in the country. In France, Enel develops activities in the electricity and gas supply sector.
Enel is an important operator in the energy market in Latin America, where its subsidiary Enersis is one of the leading electric companies in the private sector by installed capacity and number of customers. Enersis' subsidiaries operate in five countries, with installed capacity from thermal, hydroelectric and other renewable energy sources close to 21 GW and with 18.3 million customers. In the generation sector, Enersis owns and operates 4.42 GW in Argentina; 3,25 GW in Brazil; 7.47 GW in Chile; 3.47 GW in Colombia and 2.29 GW in Peru. In the distribution sector, the Group is present in the Brazilian states of Cearà and Rio de Janeiro and in four of the main cities in South America: Bogotá, Buenos Aires, Santiago de Chile and Lima. In the transmission sector, Enersis operates an electric interconnection line between Brazil and Argentina. Likewise, Chile and Brazil, as well as Costa Rica, Guatemala, Panama and Mexico, are home to wind and hydroelectric plants operated by EGP Latin America.
In North America, EGP North America owns and operates hydro, wind and solar power plants.
In Africa, Enel is present in the gas exploration and production sector and develops gas fields in Algeria and Egypt. Through Endesa, Enel also operates a thermoelectric plant in Morocco in South Africa.
Enel also operates in the Asia-Pacific region through Enel Green Power, Enel Trade and Enel Investment Holding B.V.
2015 – 2016 IMPORTANT EVENTS
On January 15, 2016, Enel Green Power announced that the company began the construction of its new 108 MW Drift Sand wind project in Oklahoma.
On January 13, Enel Green Power took the first step to enter the German renewable energy market with the acquisition of a 78.6% shareholding in Erdwärme Oberland GmbH, a company that has recently developed a project for the construction of a geothermal plant in Bavaria, with a maximum expected capacity close to 26 MW.
On January 11, a non-proportional split of EGP in Enel was approved at the Extraordinary Shareholders' Meeting of Enel and Enel Green Power.
On January 4, in the United States, Enel Green Power sold a 24% shareholding in the 235 MW Chisholm View wind farm and a 24% shareholding in the 200 MW Prairie Rose wind farm to GE Energy Financial Services for an approximate total value of 74 million US dollars. EGP will continue to hold a majority share of 51% of the two wind farms through the strategic financial partnership recently established with GE Energy Financial Services.
On the same date, EGP completed and connected to the network the first 20 MW of the 97 MW of its Carrera Pinto photovoltaic plant, located in the Chilean Atacama region.
On December 28, 2015, Enel Green Power began the construction of the Ituverava solar power plant in the state of Bahia, in northwestern Brazil. Once completed, Ituverava will have a total installed capacity of 254 MW, making it the largest EGP solar plant currently under construction.
On December 22, Enel Green Power and F2i, the Italian infrastructure fund, subscribed an agreement to create an equitable joint venture to which EGP has transferred Italian solar assets. The new joint venture has a portfolio of installed capacity of 207 MW, and seeks to become the leader in the photovoltaic market in Italy.
On the same date, EGP began the construction of its 112 MW Sierra Gorda wind farm in the Chilean region of Antofagasta.
On December 18, Enel Produzione S.p.A. signed a contract with EP Slovakia BV, a subsidiary of Energetický a prumyslový holding or ("EPH"), for the sale of Enel Produzione’s shareholding in Slovenské elektrárne, or ("Slovenské elektrárne"), which is equivalent to 66 % of the share capital of the latter. The sale will be executed through a transfer of Enel Produzione’s entire shareholding in Slovenské elektrárne to a newly created company ("HoldCo"), and the eventual sale to EP Slovakia, in two phases, of 100% of the share capital of the HoldCo.
On the same subject, Enel Produzione and the Ministry of Economy of Slovakia signed a Memorandum of Understanding on December 21.
On December 18, in Santiago, Chile, during the Extraordinary Shareholders' Meetings of Chilean subsidiaries Enersis, Endesa Chile and Chilectra, the first phase of the corporate restructuring aimed at separating Chile’s electricity generation and distribution operations from those of other countries in Latin America was approved.
In the United States, on December 9 and 18, Enel Green Power put into operation two wind farms in Oklahoma, Goodwell, with a capacity of 200 MW, and Little Elk, with a capacity of 74 MW.
On December 8, in Paris, during the twenty-first UN Conference on Climate Change (COP21), Nissan and Enel signed an agreement aimed at revolutionizing the way consumers and businesses manage their energy consumption. The two companies came together to develop an innovative system known as Vehicle-2-Grid, which allows drivers, as well as energy users, to operate as individual "energy centers", with the possibility of using, storing and returning the excess electricity to the network.
On November 27, Enel and Italian electricity sector unions Filctem-CGIL, Flaei-CISL and Uiltec-UIL, reached an agreement that allows an important generational change to restore the balance in employment between the younger and older generations. The agreement provides for the early retirement of some 6,000 workers in Italy, while at the same time hiring 3,000 young people into the labor force over the next five years.
On November 26, Enel Green Power S.p.A. (EGP) has closed the sale of the entires share capital of Finerge Gestão de Projectos Energéticos, S.A., a wholly-owned subsidiary that operates wind farms in Portugal, reaching a net installed capacity of 642 MW, to the Portuguese company First State Wind Energy Investments SA, for a total of 900 million euros. With this sale, EGP withdraws from the Portuguese renewable energy market.
On November 25, in Brazil, after the "Leilão de Concessões" public tender, EGP has obtained the 30-year concession for two operating hydroelectric plants with a total installed capacity of 40 MW.
On November 18, in London, Enel presented its 2016 - 2019 strategic plan to the financial markets. The new four-year plan is based on the 2015-2019 plan presented in March 2015, which maintains its focus on achieving a total return for the shareholder, taking advantage of the Group's global positioning, leadership in all technologies, and diversification of business lines and geographies.
On November 17, the Board of Directors of Enel and Enel Green Power approved a project for the integration of EGP with Enel.
On November 13, Enel Produzione and Fedaia Holdings S.à.rl, a Luxembourg-based subsidiary of the European Infrastructure Fund Macquarie 4 ("MEIF4"), signed an agreement for the sale of Enel Produzione’s entire shareholding in Hydro Dolomiti Enel S.r.l. ("HDE"), equivalent to 49% of the share capital, for approximately 335 million euros.
On November 12, the Enel Board of Directors analyzed the convenience of using the electricity network operated by the subsidiary Enel Distribuzione S.p.A. in Italy to build a fiber optic network accessible to all telecommunications operators and approved the formation of a limited company, in order to begin activities to operate in that sector.
(Unless otherwise indicated, this report is based on data as of march 31, 2018)