Toward a sustainable growth

Marco Raganella Head of Technical Support Solar Activities Business Development Green Power S.p.A.

Seminario Internacional Solar Antofagasta – Chile 6th October 2009 Agenda

• Renewables geographies and technologies

• Growth of Solar Energy and key drivers

• Enel Green Power experience

Dec 2008 1 Renewable energies: strong fundamentals in all geographies Estimates of renewables installed capacity, 2008-2020

Europe

1,030 GW max North America 620 GW min TOTAL WORLD 390 GW 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 350 GW min 110 GW max 150 GW 200 GW min 70 GW min 30 GW

2008 2020 2008 2020 2008 2020

UpUp toto 1,9001,900 GWGW ofof renewablerenewable capacitycapacity additionsadditions

Source: Enel estimates based/WEO 2008/GWEC 2008 (2008); WEO 2008 Reference Scenario (2020 min); Industry reports/McKinsey (2020 max) Dec 2008 2 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%

AllAll technologiestechnologies havehave potentipotentialal forfor majormajor capacitycapacity additionsadditions SolarSolar appearsappears asas thethe mostmost promisingpromising inin termsterms ofof growthgrowth

Source: Enel estimates based/WEO 2008/GWEC 2008 (2008); Industry reports/McKinsey (2020)

Dec 2008 3 Agenda

• Renewables geographies and technologies

• Growth of Solar Energy and key drivers

• Enel Green Power experience

Dec 2008 4 Global Solar Outlook Cumulative Power in GW

Solar PV Solar CSP

Source: Enel analysis on WEO 2008, industry reports Source: Global CSP Outlook 2009 – Moderate scenario

69

x140

x1.5 25

0,3 0,5

2000 2008 2015 2020

•• CapacityCapacity growthgrowth ratesrates ofof photovoltaicphotovoltaic •• AccordingAccording toto thethe GlobalGlobal CSPCSP OutlookOutlook powerpower aboveabove 15%15% perper yearyear 20092009 CSPCSP couldcould meetmeet fromfrom 3%3% toto 7%7% •• InIn 20082008 worldwideworldwide capacitycapacity increasedincreased ofof thethe world’sworld’s projectedprojected powerpower needsneeds byby overover 55 GWGW inin 20302030

Dec 2008 5 Key driver 1 – Energy policy targets Support to RES to reduce Greenhouse-gas emissions

Main growth’s helping conditions

• Smart economic subsidies • Electric system integration • Clear administrative framework • Strong supply chain • Financing availability

Key boundary conditions

• People awareness • Policy commitment • Communication and training

• Solar Associations and R&D communities Source: EPIA global market otlook for PV until 2013 • Strong solar industry • Good economic condition and Banks awareness

Dec 2008 6 Key driver 2 – Technology deployment Medium/long term evolution

Short term Medium term Long term 1-5 years 5-10 years 10+ years

Wave 1 – Crystal Silicon (c-Si)

SolarSolar PVPV Wave 2b – Thin film: Wave 2a – Thin film: Copper, Indium, Gallium, amorphous Silicon (a- Selenide (CIGS) Si) Cadmium Telluride nano-technologies (CdTe)

SolarSolar Wave 3 – Solar thermal thermalthermal

•• a-Sia-Si thinthin filmfilm evolvesevolves asas aa newnew competitivecompetitive large-scalelarge-scale technologytechnology •• StillStill largelarge potentialpotential forfor technologicaltechnological evolutionevolution

Dec 2008 7 Toward the Solar power sustainable growth

TheThe aimaim is is to to lower lower the the LevelizedLevelized Cost Cost of of Electricity Electricity (LCOE) (LCOE) AsAs muchmuch toto reachreach GridGrid ParityParity andand sustainabilitysustainability forfor citizenscitizens andand enterprises enterprises

Dec 2008 8 Agenda

• Renewables geographies and technologies

• Growth of Solar Energy and key drivers

• Enel Green Power experience

Dec 2008 9 Enel Green Power’s unique development business model

The industry so far

• Wind-only portfolio • Balanced portfolio TechnologyTechnology mixmix of technologies

• Polarized presence • Diversified presence GeographicGeographic presencepresence

• Heavy dependence • Limited dependence Long-termLong-term on incentive on incentive sustainability sustainability schemes schemes

• Debt • Operating cash flows FinancingFinancing

KeyKey • Growth • Return on Investment PerformancePerformance • MW (Installed capacity) • TWh (Energy production) IndicatorsIndicators

AA newnew modelmodel forfor renewables:renewables: sustsustainableainable andand profitableprofitable growthgrowth

Dec 2008 10 Enel Green Power: large renewable player well positioned in growth geographies

2009 – first half EGP presence

Enel Green Power 4.572MW 17,2 TWh North America 788 MW 1,8 TWh

France 28 MW Romania 0,01 TWh Pipeline

Bulgaria Pipeline Latin America Iberia 401 MW 667 MW 0,8 TWh 3,5 TWh Greece Italy 127 MW 2.560 MW 0,2 TWh 10,9 TWh

Note: installed capacity is 1.026 MW (799 MW in Iberia and 227 MW in Latin America) Dec 2008 11 Leveraging on competencies

HydroHydro GeothermalGeothermal WindWind SolarSolar PVPV

2,5 GW installed globally 0,7 GW installed globally 1,2 GW installed globally Strong position in the fast growing Italian market • Upstream integration into • Long lasting • Skills in development, • Large pipeline, split cell/module competencies exploration, engineering among geographies to manufacturing (in and construction, O&M • Skills ranging from maximize optionality and progress) return on investment development to operation • Development of new • Leading retail network in and maintenance projects in Latin America • Flexibility in turbines Italy (Enel.si) and North America procurement, taking • Project pipeline in Italy •Competence Centre and Latin America advantage of industry shake-up (overcapacity, (within R&D Division) in cost reduction) Italy

Established competencies Well positioned to take Fully integrated Unique position in the in advantage of sector geothermal operator solar PV value chain development and O&M shake-up

LeveragingLeveraging competenciescompetencies acrossacross allall geographiesgeographies

Dec 2008 12 Enel Green Power and the Solar value chain

ManufacturingManufacturing DistributionDistribution DevelopmentDevelopment ConstructionConstruction O&MO&M

•Building & •Supplying of •Land Scouting •Final design •Plant visual inspection Production photovoltaic MajorMajor •Due diligence •Modules, inverters, •PV testing Equipment(*): components content BOS integration content •Conceptual design •PV field measurement •Plant certification

Enel Green Enel Green Long Term Project lead In-house : own plants PowerPower Enel.si Make and buy Partnership Outsourcing Enel.si franchisees

•Flexible •Procurement •Dedicated •Specialized •Combined contracts development and engineering team: O&M with •Franchising engineering team Construction Project existing •Set of asset- network with management renewables Activity based and over 450 Activity commercial entrepreneurs •Network of long-term PV installers •Over 50 MW of supply options throughout PV installed in under study Italy past three years

(*) Silicon Crystalline Production Plant Dec 2008 13 Enel Green Power’s solar pipeline development

Selected investme nt opportun ities

Monegros Total Montalto di Castro N. plants 4 Carpio de Tajo Nazzano 4 MW Casar Cerralbos Cerano 2 GWh Guijo de Coria Codrongianos Serre P. Pipeline 592 MW Robledo Rocío Palazzo Alcalá Guadaira

Priolo Gargallo Adrano

Iberia • Very high irradiation Italy • High irradiation in Southern Italy Pipeline 325 MW • Positive policy scenario N. plants 4 • Positive policy scenario 4 MW • Diversification into CSP 2 GWh • Cost competitive projects at existing Enel sites Pipeline 267 MW • Projects with fast authorization process

Dec 2008 14 Enel Innovation for Solar Technology Advanced Solar Laboratory in Catania

Main activities

• Advanced research center for solar photovoltaic and thermodynamics • Photovoltaic system laboratory and test site (solar simulator, climatic rooms, CPV test field)

Dec 2008 15 Enel Innovation for Solar Technology The Archimede Project

Key innovations

• The use of molten salts both as thermal vector and energy storage fluid. • Absorbing tube with a selective coating, specifically designed for high temperatures • Heat storage System Integrated with solar field

5MWe5MWe PlantPlant underunder constructionconstruction inin ,Sicily, inin operationoperation inin 20102010

Dec 2008 16 THE REAL REVOLUTION IS NOT TO CHANGE THE WORLD

Thank you

Marco Raganella –[email protected]

Enel.si – Impianto da 1,5 MWp su tetto Dec 2008 S. Marco Argentano (CS) 17