HIGH LEVEL DIALOGUE ON ASEAN ITALY ECONOMIC RELATIONS

Transcription

1 HIGH LEVEL DIALOGUE ON ASEAN ITALY ECONOMIC RELATIONS Second Edition Shangri-La Hotel, Singapore Wednesday, April 11 and Thursday, April 12, 2018

2 Enel Group Group Overview Focus on Enel Green Power and Enel X Gu-Yoon Chung Head of Business Development, Asia Pacific Enel Green Power

3 Presentation Overview Introduction of Enel Group Enel s Internationalization and Business Development Renewable Energy A New Paradigm: Enel X Opportunities for Agriculture

4 Enel Group Today s snapshot and evolution since

5 Enel s organisation Simple and effective organization Administration, Finance and Control Human Resources and Organisation Communications Legal and Corporate Affairs European Affairs Audit Holding functions Global Procurement Group CEO Innovation and Sustainability Global ICT Italy Global Infrastructure & Networks Global Thermal Generation Global Trading & Upstream Gas Global Business Lines Global Renewable Energies E-Solutions Iberia Europe & North Africa Latin America North & Central America Sub-Saharan Africa & APAC Geographies Customers Local stakeholders Regulation Revenues Cash flow EBITDA Best practices implementation Technology/Solutions Efficiencies in Capex & Opex Capital allocation EBITDA 4

6 2017 financial results 1 FY Ordinary EBITDA breakdown Revenues 74.6 bn Ordinary EBITDA 15.6 bn 43% 23% Italy Iberia Net ordinary income Net debt 3.7 bn 37.4 bn 15.2 bn 5% 24% 5% Europe and North Africa Latin America North and Central America 1. Data as of December 31 st

7 Operational data Leadership along the various segments of the value chain Key indicators 1 Enel and European peers 2 Infrastructure & Networks 62 mn end users 41.2 mn smart meters 1.9 mn km grids Retail 56.4 mn power customers 5.5 mn gas customers Renewables generation 35.9 GW of installed capacity 5 Customers (mn) Installed capacity (GW) Thermal generation 46.8 GW of installed capacity Grid Length (mn km) Data as of December 31 st 2016; 2. Data as of December 31 st 2016; 3. Retail Customer: Free + Regulated; 4. Figure refers to the European perimeter (Engie does not disclosure total number of customers); 5. It doesn t include 1.9 GW of managed capacity 6

8 Portfolio breakdown 1 Production mix Installed capacity Distributed energy Customers (power + gas) 10% 13% 10% 4% 20% 26% 20% 23% 11% TWh/year 28% 33% 82.7 GW 18% 52% TWh/year 18% 4% 50% 61.9 mn 26% 4% 15% 15% Nuclear Coal CCGT Oil + Gas Hydro Other Renewables Nuclear Coal CCGT Oil + Gas Hydro Other Renewables Italy Iberia Europe & North Africa Latin America Italy Iberia Europe & North Africa Latin America 1. Data as of 31 st December

9 Industrial Growth Plan KPIs 8

10 Growth Capital Allocation

11 Enel Green Power Leading Company in Renewable Energy 10

12 Enel Green Power: sector leader Fastest growing renewable player vs. European peers 2, GW added - net of disposals and excl. large hydro MW Hydro (Italy, Iberia, Brazil, Colombia); +970 MW Wind (Italy, Iberia, Chile, Mexico, USA, South Africa); +775 MW Solar (Italy, Chile, Panama, USA, South Africa) MW Wind (UK, USA) 0,92 0, MW Wind (Belgium, China, France, Portugal, South Africa, UK, USA); MW Solar PV (USA, Chile); +22 MW Other (USA, France) 0, MW wind (USA, Mexico, Brazil, Italy, France, Portugal) 0,29 0, MW Solar (Chile, France, India); +82 MW Wind (Brazil, Belgium) ENEL Iberdrola EDF-EN EDP-R ENGIE Acciona MW Solar PV (Chile); + 96 MW Wind (USA, India) Source: Enel Green Power Iberdrola Renovables EDF energies nouvelles EDP renováveis Engie Acciona Relazione finanziaria annuale 2016 (April 2017), Investor presentation strategic plan (March 2017) Results 2016 Bloomberg New Energy Finance 2016 Results (February 28th,2017) Appendices FY 2016 Results (March 2nd 2017) FY 2016 January-December Results presentation (March 1st 2017) 11

13 Enel Green Power Recent achievements ( Present): 4,628 MW in two years! USA Biggest EGP wind farm (400 MW) under construction Mexico In ,000 MW PV awarded in a tender MW Wind Peru 326 MW awarded in 3 technologies: PV, wind and hydro Spain EGP awarded 540 MW Wind and 339 MW PV Morocco EGP awarded 850 MW Wind tender Brazil Largest EGP solar plant (292 MW) under construction Germany Drilling exploration at new geothermal site (26 MW) Zambia In 2016 Awarded 34 MW of PV Russia EGP awarded 291 MW Wind tender India In 2015 BLP acquisition. Competitive participation in recent 750 MW PV auction Indonesia EGP awarded concession to explore and develop 55 MW geothermal Australia Acquired 275 MW of PV, the largest solar plant in the continent Operational presence Advanced development Growth 12

14 Enel Green Power Accelerating Growth 13

15 Enel Green Power Asia Pacific Timeline of growth 2015: acquisition of BLP in India, marking entry in APAC. Capacity in operation of 172 MW wind. 2016: awarded concession to explore geothermal in Sumatra, Indonesia. Capacity of 55 MW. 2017: closing of Bungala solar project in Australia. Capacity of 275 MWp. 2018: won first tender in India, wind project in Gujarat. Capacity of 285 MW. Countries with operations or construction Countries with development Hydro Wind Solar Geo Biomass 2018 and beyond: goal to expand capacity in India, Indonesia, Australia, and enter Vietnam and South Korea. 14

16 What are the next big things for the sector? Disruptive innovation will accelerate the transition towards a low carbon economy Storage From commodity to service Digitalization System Integration E-cars are driving storage price tumbling at utility scale Utilities could own no networks or generation assets in the future Digitalization is creating opportunities for smaller players resulting in increasing competition in the sector New actors such as local dispatchers and aggregators are emerging in the energy sector Margins are shrinking and utilities are looking for new sources of revenues + monitoring new sectors to survive 23

17 Supply meet Demand? Demand meet Supply! The Case for Demand Response 16

18 Impact of Grid edge technologies The Case for Demand-side Services Electricity system built to cope with peak demand, and thus the have an average system utilization rate of 54-55% (in the US) Daily load (GW) Electric vehicles Flattens demand peaks and valleys Flattens valleys (if cars charged at right times) Reduces peak demand Demand response Distributed storage Reduces overall demand Energy efficiency Grid edge technologies could support peak demand reduction (through overall reduction and shifting/flattening) a 10% decrease in peak demand equates to ~$80B of value in the US alone Presented at World Economic Forum (January 2017 Davos Annual Meeting Session), Grid Edge Transformation Initiative (Presented by Francesco Starace, CEO of ENEL, and Jean-Pascal Tricoire, CEO of Schneider Electric) Note: Average US asset utilization rate of 54-55% is from the EIA showing values for 2015 for coal and natural gas fired combined cycle plants; peak demand in the US is ~710,000 MWh (in late July 2016); EIA estimates $1,110 per kw for combined cycle natural gas plants installed in recent years; value creation is equivalent to savings from cost avoidance of building traditional peaking plants, savings on energy costs (~$40/MWh), and savings from avoided transmission costs; Source: EIA; Bain analysis

19 Electric Vehicle Charging Infrastructure Deploying all charging technologies Charging stations Vehicles Quick charging 3.7 kw AC - 22 kw AC Quick charging 22 kw AC - 22 kw AC Battery Electric Vehicle (BEV) Electric engine Fast charging 43 kw AC - 50 kw DC Ultra Fast charging 150 kw DC 350 kw DC Plug-in Hybrid Electric Vehicle (PHEV) Electric engine ICE We have built a deployment plan for rollout of charging stations in Italy and our captive markets

20 EV Battery Monetization Aggregating Capacity to unlock flexibility and provide services EV Batteries Aggregation Platform 60 Desired Target Load Curve V1G Smart Charging EVSE back-end V2G Hours / Minutes / Seconds kw Grid Regulation services Primary Frequency Regulation Demand Response Customer Assets Optimization Demand Charge Management Grid Connection optimization Customer Preferences Renewables Plant integration Aggregation capabilities will be key to monetize through unidirectional and bidirectional services while EV not used (90% of lifetime)

21 V2G pilot project in Denmark and UK In pictures 20

22 Electricity sector is in transition From the old model Generation Transmission Distribution Retail Customer A simple and linear model 21

23 Electricity sector is in transition to a new energy market paradigm Actively manage the grid Distribution Link supply to load Transmission Retail Engage with customers Focus on baseload Customer becomes producers Bulk Generation Distributed generation New market paradigm Customer New entrants Become an active partcipant Offer new products and services Customers become active consumers Demand response Micro grids Customers go or remain off-grid Storage Storage used to manage grids 22

24 A new brand: Enel x Our vision Our name Create the new power economy A name that builds on the trust and scale of Enel and signals distinctiveness and a new vision A new brand for a distinctive positioning on the market 23

25 A new Global Business Line Our portfolio of solutions in the 4 Global Product Lines e-industries e-mobility e-home e-city Consulting and auditing service Public charging network Installation, maintenance and repair services Smart lighting Distributed generation on/off site Private charging wall-box Automated home management Fiber optic wholesale network Energy efficiency Maintenance and other services Financial services Distributed generation & energy services Demand response and demand side management Vehicle 1 Grid Vehicle 2 Grid Home 2 Grid Demand response and demand side management Addressing new customer needs with innovative technologies 24

26 KPI target for 2020 Enel X 25

27 Megatrends affecting agricultural industry foster new opportunities for Utilities Innovating to zero Electrification Smart is the new green Use of alternative sources of energy, including wind, solar, hydroelectricity, and biomass for agriculture Electrification of consumption is uptaking many sectors, including agriculture. Electric vehicles for construction, agriculture and mining will be a $81 billion market in 2027 Increased connectivity, sensors, machinery and control systems that aim at increasing efficiency in agriculture, including machine-to-machine, humanmachine interfaces, industrial robots and self-guided vehicles Smart agriculture market is expected to grow from $ 5,2 bln in 2016 to $11,2 bln by 2022, at a CAGR of 13% between 2017 and 2022 Enel can seize the opportunity to develop the first agricultural smart district, deploying its smart energy and smart tech capabilities 26

28 Enel is the innovation partner of Bonifiche Ferraresi WHO IS BONIFICHE FERRARESI BF is the largest agricultural company in Italy (5.500 hectares of cultivated land) Investment plan of 32 mln to transform the Company in an agricultural pole of excellence at a European level for size, production capacity and quality offered Leader in the use of innovative farming techniques, such as bioenergy and precision agriculture ENEL S ROLE Enel signed an agreement to become Bonifiche Ferraresi s Innovation Partner and support the company to set up the first agricultural smart district in Europe 27

29 Enel offers a turn key solution, including both breakthrough and other energy efficiency innovations Vehicle 2 Grid First Gridscale Storage Installation by Tesla Innovation Hub PV Building automation Energy management Connectivity Cogeneration Drones E-Mobility 28

30 Completed Agricultural Smart District project with Bonifiche Ferraresi: the purpose and timeline In progress OUTCOMES TIMELINE PURPOSE OF THE PARTNERSHIP Launch with Bonifiche Ferraresi (BF) the first agricultural smart district in Europe: Flagship case of energy innovative technologies (investment by BF) Develop a best in class use case in Italy to position Enel as leader in smart energy management and smart tech innovation, to deploy further initiatives abroad June 16 October 16 December 16 Feb-March 17 Apr-Nov 17 Dec 17 today Agreement and launch of working groups Presentation of project concept and feasibility study Projects approval by BF s board of directors Presentation and signing of Enel s offerings Delivery, Installation and Commissioning Evaluation of $10 Mln opportunity to electrify smart agriculture 29

31 Enel s smart kit is based on 5 tech pillars and has a value of 1 mln Leveraging on innovative projects to attract corporate customers on new services Projects under development at Bonifiche Ferraresi s site PV Storage V2G Smart E-mobility Innovation add ons Stables and rice mills covered with 700 kw PV covering BF consumption 100 kw/190 kwh integrated with PV 1 charger + 1 env200 Simulated comm. oper. until regulation is ready 20 e-bikes + 5 EV (2 Twizy, 1 Leaf, 2 env200), including 3 chargers Mkt analysis for drones for precision agriculture Scouting in Tel Aviv - 10 startups identified, 1 to launch a pilot project Other installations in pipeline to be approved by BF (phase 2) Cogeneration Biogas, CHP plants Local Connectivity for devices, sensors and people (Athonet) Electric Drones for O&M inspections En. Mngt. Platform for local site energy management Building automation Energy efficiency upgrades 30