Annual Report 2012
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Annual Report 2012 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Contents Report on operations ..................................................................................... 4 The Enel Green Power structure ...................................................................... 5 Enel Green Power España ............................................................................... 5 Enel Brasil Participações Enel .......................................................................... 5 Energia Alerce ............................................................................................... 5 Enel de Costa Rica ......................................................................................... 5 Enel Guatemala ............................................................................................. 5 Impulsora Nacional de Electricidad ................................................................... 5 Letter to the shareholders and stakeholders ...................................................... 8 Summary of results ...................................................................................... 10 Significant events in 2012 ............................................................................. 15 The contribution of renewable energy to sustainability ...................................... 22 Reference scenario ....................................................................................... 26 Overview of the Group’s performance and financial position ............................... 55 Performance and financial position by segment ................................................ 67 Italy and Europe ................................................................................................... 69 Iberia and Latin America ........................................................................................ 71 North America ...................................................................................................... 73 Retail ................................................................................................................... 75 Main risks and uncertainties ........................................................................... 76 Outlook ....................................................................................................... 77 Innovation ................................................................................................... 78 Human resources and organization ................................................................. 81 Regulations governing non-EU subsidiaries ...................................................... 88 Regulations governing subsidiaries subject to the management and coordination of other companies ........................................................................................... 89 Related parties ............................................................................................. 90 Reconciliation of shareholders’ equity and net income of Enel Green Power SpA and the corresponding consolidated figures ............................................................ 92 Consolidated financial statements ................................................................... 94 Consolidated Income Statement ..................................................................... 94 Statement of Consolidated Comprehensive Income ........................................... 95 Consolidated Balance Sheet ........................................................................... 96 Statement of Changes in Consolidated Shareholder’s Equity .............................. 97 Consolidated Statement of Cash Flows ............................................................ 98 Notes to the financial statements .................................................................... 99 Corporate Governance ................................................................................ 181 Declaration of the chief executive officer and the officer responsible for the preparation of corporate financial reports ...................................................... 227 Attachments .............................................................................................. 229 Reports ..................................................................................................... 245 Enel Green Power – Annual Report 2012 2 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Enel Green Power – Annual Report 2012 3 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Report on operations Enel Green Power – Annual Report 2012 4 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e The Enel Green Power structure Corporate Enel Green Power Italy and Europe Iberia North America Retail and Latin America Enel Green Power Portoscuso Enel Green Power North Enel.si Enel Green Power España Enel Green Power Calabria America Enel Green Power Strambino Solar Enel Brasil Participações Energia Eolica Enel Enel Green Power Puglia Maicor Wind Energia Alerce 3Sun (*) Enel de Costa Rica Enel Green Power & Sharp Solar Energy (*) Enel Guatemala Taranto Solar Enel Green Power Romania Impulsora Nacional de Enel Green Power Bulgaria Electricidad Enel Green Power Hellas Enel Panama Enel Green Power France Grupo EGI Enel Green Power Colombia Enel Green Power Perù New Countries Enel Green Power Sud Africa Enel Green Power Jeotermal Enerji Yatirimlari AS * Joint ventures Enel Green Power – Annual Report 2012 5 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Corporate boards Board of Directors Chairman Chief Executive Officer Luigi Ferraris Francesco Starace Directors Luca Anderlini Carlo Angelici Andrea Brentan Giovanni Battista Lombardo Giovanni Pietro Malagnino Daniele Umberto Santosuosso Carlo Tamburi Luciana Tarozzi Board of Auditors Chairman Auditors Franco Fontana Leonardo Perrone Giuseppe Ascoli Alternate auditors Giulio Monti Pierpaolo Singer Independent auditors Reconta Ernst&Young Enel Green Power – Annual Report 2012 6 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Powers Board of Directors The Board is vested with the broadest powers for the ordinary and extraordinary management of the Company, and specifically has the exclusive power to determine the strategic, organizational and internal control policies for the Company and the Enel Green Power Group. Chairman of the Board of Directors The Chairman is vested by law and the bylaws with the powers to govern the operation of the corporate bodies (Shareholders’ Meeting and Board of Directors) and to represent the Company. In addition, pursuant to a Board resolution of October 5, 2010 (as modified on December 19, 2012), the Chairman also verifies implementation of the resolutions of the Board of Directors. Chief Executive Officer The Chief Executive Officer is also vested by the bylaws with the powers to represent the Company and, in addition, is vested by a Board resolution of October 5, 2010 (as modified on December 19, 2012) with all powers for managing the Company, with the exception of those that are otherwise assigned by law, the bylaws or resolutions of the Board of Directors. Enel Green Power – Annual Report 2012 7 WorldReginfo - c26efdc6-8695-4082-b733-ece4b14f7a1e Letter to the shareholders and stakeholders Initial aggregate data on the global renewable energy sector for 2012 continue to reveal a very high level of investment, around $270 billion.1 It is estimated that the worldwide installed renewables capacity for the year rose by around 110 GW, up 8% compared with 2011. Wind and photovoltaic technologies made especially significant contributions towards this growth in 2012. In the wind sector, over 44 GW of additional capacity was installed, of which 16 GW in Asia, 14 GW in North America, 12 GW in Europe and 2 GW in the rest of the world. Total installed wind capacity now exceeds 280 GW.2 Photovoltaic power also reached a new global record for installations, with over 30 GW in additional capacity (of which 17 GW in Europe, 10 GW in Asia and 3 GW in North America). As a result, cumulative installed photovoltaic capacity reached around 100 GW in 2012, an increase of 45% compared with 2011.3 The expansion in generation from renewable resources, which has now been under way for over a decade globally, is thus one of the most interesting drivers of change in economic, technological and geo-strategic scenarios. In this environment, Enel Green Power continued to pursue its announced strategy: consolidation in its European markets and the start of further geographical diversification into markets with an ideal combination of natural resource availability and a major need to develop sources of electricity, partly to meet the demand generated by high rates of population growth. Enel Green Power continued to expand rapidly in 2012. We increased our installed capacity by more than 900 MW, to a total of 8 GW (up 13% on 2011) in the 16 countries in which we currently operate. At the end of 2012, the net installed capacity of Enel Green Power broke down into 2.6 GW (33%) of hydroelectric capacity, 4.3 GW (54%) of wind, 0.8 GW (10%) of geothermal, 0.2 GW (2%) of solar and 0.1 GW (1%) of other renewable technologies (biomass and cogeneration). Underscoring the substantial rise in installed capacity, on January 16, 2013, the net daily output of Enel Green Power exceeded 100 GWh for the first time, with a peak of 103 GWh. The symbolic value of this result is significant, representing the scale that the Company has been able to achieve in the last three years