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Enel Green Power in the Turkey Geothermal Market

Ruggero Bertani, Enel Green Power Geothermal Center of Excellence

Project Director of the Geothermal Development in Turkey

GEOPOWER TURKEY

Istanbul – September 21st 2011

Note: 1) Including ENEOP2) Including “new markets” (0,2 MW)

EGP presence

North America

Operating 788 MW

Production 2.6 TWh

In execution 0.3 GW

Pipeline 9,1 GW

Unrivalled footprint in 16 countries across all main renewable technologies

Iberia and Latin America

Operating 2,187 MW

Production 6.5 TWh

In execution 0.6 GW

Pipeline 13.7 GW

Italy and Europe

Operating 3,127 MW

Production 12.7 TWh

In execution 0.6 GW

Pipeline 6.2 GW

Enel Green Power

Operating 6,102 MW

Production 21.8 TWh

In execution 1.5 GW(1)

Pipeline 29.2 GW(2)

A global leaderEGP global footprint – FY 2010

Installed capacity by technologyFY 2010

2%13%

42%

43%

2%24%

51%

23%

Production by technologyFY 2010

Total = 6.1 GW Total = 21.8 TWh

OtherWindGeothermalHydro

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Leveraging on competencies

2.5 GW installed globally

• Long lasting competencies

• Skills ranging from development to operation and maintenance

• Project pipeline in Italy and Latin America

Established competencies indevelopment and

O&M

Hydro

1.0 GW installed globally

• Skills in development, exploration, engineering and construction, O&M

• Development of new projects in Italy, Turkey, Latin America and North America

Fully integrated geothermal operator

Geothermal

Strong position in the fast growing Italian

market

• Leading retail network in Italy (Enel.si)

• Competence Centre (within R&D Division) in Italy

• Upstream integration into cell/module manufacturing (in progress)

Unique position in the solar PV value chain

Solar PV

2.3 GW installed globally

• Large pipeline, split among geographies to maximize optionality and return on investment

• Flexibility in turbines procurement, taking advantage of industry shake-up (overcapacity, cost reduction)

Well positioned to take advantage of sector

shake-up

Wind

Leveraging competencies across all geographies

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2010 Geothermal World: companies2010 Geothermal World: companies

PLANT OWNER

0

1'000

2'000

3'000

4'000

5'000

6'000

7'000

8'000

Comisión Federal deElectricidad

Calpine Enel Green Power Energy DevelopmentCorporation

Chevron

GW

h o

r M

W

ENERGY

MW

3

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882 MW

Enel Green Power Worldwide Geothermal Activities

2 plants in operationsin Nevada (binary, 65 MW)

North America

35 plants in operation

(steam and flash)

Italy

Other binary projects on going in California,

Nevada, Utah

New steam and flash plants planned for

60 MW

Latin America

NICARAGUA1 greefield project under exploration (flash)

GUATEMALA, PERU’Scouting for flash resources

EL SALVADORPartnership with LaGeo for project in operations

(36% of 200 MW flash)CHILE

several geothermal exploration and additional permits (flash), more than 100 MW target

Drilling on going (four deep productive wells completed) in the Apacheta area,

in the Chilean Andes

Turkey greenfield explorations

Europe

• 40 plants - 1.0 GW - 5,000 GWh

• 460+ people involved in operation

• Types: dry steam, flash steam and binary cycle

• Operations since 1904

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Why Invest in Geothermal in Turkey?

� Turkey is a large and growing economy, with macroeconomic indicators on a positive trend until the current crisis due to its political stability, demographical age: average 28 yrs and its geopolitical role (as transit corridor); GDP growth: 6.5% with a population of 73,91 million

� Turkish energy sector is widely seen as promising and attractive investment area:

• Strong fundamentals

• Liberalization process and policies to attract private sector investment

• Ongoing rapid and transparent privatization process: privatizations, license tenders, strategic partnerships

� Turkish electricity market has grown significantly within the last 25 years; net consumption CAGR: 7.2%

� Installed Capacity: 45.050 MW (2009) of which: 63% thermal (lignite/coal: 23%, oil: 4%, Gas: 36%), hydro: 32%, RES: 2% and others: 2%

� Government strategy to boost RES developments in order to re-balance energy mix and achieve EU-Kyoto standards, Government main object is to increase RES share in total electricity production up to 30% until 2023

� But the large potential of Turkey for renewable energy was not systematically developed until today; the new law for Feed-in-Tariffs, for long time under discussion, has been approved

� Turkey has a very good geothermal resource.

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� Total geothermal potential of Turkey is estimated around 30,000 MW. In geothermal, Turkey has a proven 4,000 MW of resources over 20°C of which 600 MW are high temperature fields able to produce electricity

� Total installed capacity in 2011 is 100 MW� Since 2005 several construction activities have been carried out. Three new binary units of about 8 MW each has been realized

� The old plant of Kizildere, after the privatization, now owned by Zorlu group, has been refurbished and it is operating at full capacity (15 MW as the generator capacity, while the turbine is 20 MW), and a new 60 MW plant is under construction

� A new 47 MW double flash unit has been commissioned in 2009 at Germencik, by the Gurmis group, with the option of a further 47 MW as potential expansion. It is one of the biggest plant in Europe, following only the Italian standard 60 MW units

� Several additional areas have been allocated to private companies for further surface and deep exploration

Why Invest in Geothermal in Turkey?

TRADITIONAL GEOTHERMAL FIELDS IN TURKEY

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..MUCH MORE IS EXPECTED IN TURKEY

Geo pipelines in Turkey: JV with Meteor

• METEOR, is a group of two Turkish companiesUZUNLAR GROUP AS – GENERGJI that has obtained several green field geothermal leases from municipalities and prefectures.

• An agreement has been reached regarding the cooperation with METEOR (JVA signed January 2011- Company started formally in June 2011).

• EGP is proceeding in the geothermal project development with METEOR: the technical screening activities is almost completed and we expect start a slim hole drilling campaign in 2012.

The JV with METEOR is an important opportunity for evaluating a large number of potentially

suitable areas in Turkey for the development of

geothermal power plants.

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Travertine Terraces at Pamukkale, Turkey

Enel Green Power Plants, Italy

90 MW in a single shot

Nuova San Martino 40 MW

Carboli 40 MW

Nuova Monterotondo 10 MW