passion and energy to power your company, ensuring … · • the area is inhabited by the quechua...
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Passion and energy to power your company, ensuring you have the best partner at your side
~ 40 GWManaged capacity
from power sources
8.5 GW Wind
2.3 GWSolar
0.9 GWGeothermal
27.7 GW Hydroelectric
Our environment, our energy
At Enel Green Power we believe there is always a perfect solutionto match businesses and renewables.
All of our projects and goals are based on sustainability, innovationand a proactive mindset to create shared value for ourselvesand the communities in which we operate.
We are commited to delivering tailor-made 100% sustainable energysolutions worldwide. When business meets sustainability,we are best partner at your side.
Introducing Enel Green Power
30countries
19operatingcapacity
11capacity under execution/construction
7,600employees
more than
1,200plants
more than
ArgentinaBrazilBulgariaCanadaChileColombiaCosta RicaGreeceGuatemalaIndiaItaly Mexico Panama PeruRomaniaSpain South Africa Uruguay USA
AustraliaEgyptEthiopiaGermanyIndonesiaKenyaMoroccoRussiaSingaporeTurkeyZambia
Enel Green Power worldwide
7,600employees
more than
1,200plants
more than7,600
employees
more than
1,200plants
more than
7,600employees
more than
1,200plants
more than 7,600employees
more than
1,200plants
more than
7,600employees
more than
1,200plants
more than
• 100% renewable energy sources• Involvement of local communities• Operational excellence• Geographical/technological diversification• Economies of scale• Competitive financing costs
• Key growing markets, high-quality project pipeline
• Awarded capacity has grown 15 times in five years
• 2016 Western World Record for capacity built: 2 GW in a single year
• Tailor-made PPAs• Multi-offtake projects• Hedging and risk-management• C&I sustainability strategies,
including CSV projects worldwide
We providetailor-made solutions
How We Originate How We Execute How We Deliver
GEOTHERMAL
We are a renewableglobal leader
WIND
We set topperformance records
HYDROPHOTOVOLTAIC
Three maincompetitiveadvantages
Four energyproduction technologiesacross the world
Our portfolio’s main resource, constantly strengthened.
Our leadership in this sector gives us and our clients great advantages.
Increasing key rolein solar market.
We specialize and excelin small to medium projects.
• Strategic partnerships and co-development agreements
• High-quality pipeline of projects
• Tailor-made solutions to meet a variety of customer needs
• Flexible structures squeezing risk-value trade offs
PROJECTDEVELOPMENT
COMMERCIAL STRUCTURING
Key levers for a winning Business Model
Technological and geographical diversification together with an optimized Value Chain
• Access to competitive costs of financing
• Attractive alternatives to industry financial players
• Economies of scale, global procurement
• Design-to-value to increase reliability and minimize costs
PROJECT FINANCING
ENGINEERING & CONSTRUCTION
• Big data and predictive maintenance
• Performance excellence at lower costs
• Integrated portfolio (generation/retail/trading)
• Risk mitigation synergies at Group level
OPERATION & MAINTENANCE
ENERGY MANAGEMENT
From 2002
From 2004
From 2005
From 2007
From 2013
From 2014
Enel Green Power’s development strategy has been supported by the growing integration of sustainability.This is based much less on a logic of reaction to criticalities and much moreon a proactive approach aimed at identifying opportunities for creating value shared between the company and the territory.These activities focus on dialogue with stakeholders and socio-environmental analyses in order to identify effective interventionsthat meet local needs in synergy with corporate objectives.The aim of adopting a sustainability model based on Creating Shared Value (CSV) is to implement the Group’s strategy, while at the same time giving consideration to business goals and the needs of stakeholders.
Applying the CSV model along the entire value chain has given rise to best practices, creating new opportunities for the company, the communitiesand the environment. Also, it turned sporadic practices into common practices, making our way of doing business increasingly sustainable:while building sites, while operating and maintaining plants and at the office.The approach is the same: measuring the performance (and therefore the impacts), adjusting it and off-setting the residual impacts that cannot be mitigated. This in the main areas on which we can really make a difference: emission, waste, water, people.
Enel Green Power, included in the main sustainability indexes
Sustainability is the key
The commitment of the Enel Group in sustainability growth is testifiedby its intention to contribute in promoting and achieving all of thethe 17 Sustainable Development Goals adopted by the United Nations in September 2015, actively promoting 4 out of them, namely:
Our sustainable efforts
446,000 Beneficiaries
19 MLN (€) Investments
486 Projectsall over the world
Sustainable Development Goals:together towards a better world
3
<350
1.5
400,000
7. AFFORDABLE AND CLEAN ENERGY
13. CLIMATE ACTION
8. DECENT WORK AND ECONOMIC GROWTH
4. QUALITY EDUCATION
million Beneficiaries by 2020mainly in Africa, Asia and Latin America
eq/KWh by 2020 (specific emissions), a “Science Based Target”
million Beneficiaries by 2020(upgraded from 500,000)
Beneficiariesby 2020
Cerro Pabellón (CHILE): the first geothermal power plant in South America. A sustainable case history
Its sustainable construction site
Even the construction site of Cerro Pabellón had to be sustainable. Our goals for it were environmental, like:
• Complete carbon neutralization • -15% water consumption • Reuse and/or recycle 20% of waste
Our goals were also socio-economic, that’s why we hired local SMEs (small to medium enterprises) to work on the construction site:
The value created, internal and external, was subject to an impact evaluation tool developed by the Company using some financial indicators also used by the business.
11employees
Cleaningservice
17employees
CommunityMonitoring
7employees(6 women)
Laudry
employees
3Kiosk
4employees
(3 men)
Breakfastservice
5employees
(3 men)
Transportation
Its basic information:
Its environment:
The issue:
The result:
• It is a 48 MW geothermal power plant, the first ever in South America• The first geothermal plant built at such altitude• Active since March 2017
• Located at 4,500 meters above sea level in the Atacama Desert• The area is inhabited by the Quechua and Atacameños
communities
• The population is highly affected by the lack of essential infrastructures and the incumbent presence of the mining industry
• Different projects involving local communities were put in place at the construction site in order to provide socio-economic solutions for them. Also, environmental targets were applied
to decrease the impact of the project on the community and the environment
Our corporate solutions are flexible and designed to meet companies’ specific needs: duration, products, volumes, profile, price and commitments, among others. Whether you want us to build an energy production plant at your facility - or nearby - or to power multiple projects through the same and commitments, among others, we can assure youwe have solutions that fit your needs.This is what Enel Green Power can do for you.
Power Purchase Agreements:tailor-made and long-term arrangements
Matching corporate needs
PPAs allow businesses, government agencies and educational institutions to purchase our electricity with no upfront capital cost.You buy the energy, not the energy generating plant.
A bilateral financial agreement between us is the perfect way to get the benefits of renewable energy without needing to build, own or run a facility.
Enel Green Power’s customer centricbilateral partnership process approach
PPAs as part of a soundenergy supply purchasing strategy.
• To balance budget risk with market risk in a sustainable way
• To offset carbon footprint
• To hedge against energy and REC price volatility
• To achieve potential cost savings
• To create Shared Value
DEAL
• Risk tolerance• Business/Sustainability Objectives• Budget constraints
CLIENT
• Regulatory framework• Market conditions. Grid code. Prices• Available project pipeline/resource
Local MarketConditions Analysis
• Project definition• PPA type. Products• Risks identification and assessment• Role of utility retailer
Business Model Definition
• PPA term, volume & price structures• Allocation of risks. Flexibilities• Breaches and remedies• Change in law/tax• Credit support
Contract StructureNegotiation
Key advantages of corporatePPAs with Enel Green Power
Affordability
• Price guarantee for up to 30 years• No capital investment• No additional expenses• No maintenance costs or issues
Corporate PPAs act as a long-term hedge to counter price volatility. Additionally, renewable-sourced generation avoids exposure to carbon price risk.
Sustainability• Beneficial for local communities and other stakeholders• Reduced global carbon emissions• Improved brand equity• Sustainable business practices• Active player in environmental care on a global scale
The two main reasons why companies sign PPAs are the desire to achieve sustainability objectives and to reduce greenhouse effects,and, second, to limit the volatility of energy costs.
Reliability
• Reliable and constant energy supply• No risk of power shortage• Source diversification mix
The mix of energy efficiency improvements and renewable solutions will guarantee a constant supply and allow for important financial benefits.
Enel Group: one single providermultiple solutions
• Supply w/ Existing Portfolio
• Off-Site renewables
• PPA (Financial/Physical)
• Bundle (Energy + Certs)
• Co-investments
• On-site Renewables
• Hybrid (+BESS)
• Off-grid Solutions
• Reputational risk
• Social license
• Emission reduction
• Scope 1, 2, 3
• Choices (not just Certs)
• Renewable Additionality
• EfficiencyEnel
Green PowerImprove
Sustainability
We offer tailored solutions...
We are the best energy partner for our customers, seeking to empower their business by maximizing the value of clean energy
...to meet our C&I customer needs
• Hedging
• Structured Products
• Market AccessMarket& Trade
Regulatory risk •
Wholesale price volatility •
Carbon Price risk •Risk
• Behind the meter
• Demand response/management
• Energy efficiencyEvolution& Technology
Price Certainty •
Price Flexibility •
Competitiveness • ReduceCosts
Behind-the-meter corporate PPA with an on-site or near site projectOur renewable power plant will be developed, built and operateddirectly on your property and the energy will be fed directly intoyour electrical system.
Best features
• Direct link generation/load site
• Visible and understandable
• Very low interconnection costs
• Potential demand charges reduction
• Standardized solutions
• Easy to integrate into sourcing portfolio
Things to consider
• Needs roof or land space availability
• Potential high CAPEX (no economies of scale)
• Needs renewable resources availability on site
• Supply limited to (one) site
• Needs permits to build
• Needs regulatory “net balancing” in place to foster competitiveness
On-Site (Physical) PPA
Onsite Project energy supply to client1
A PPA Price
2 Energy consumption from the grid (when Load > Onsite generation)
B Retail Tariff/Market Price paid for energy purchased from the grid
3 Onsite energy excess to the Grid (when Onsite generation > Load)
C Income for excess energy (if any)
PPAs: Tailor-made and long-termarrangements for valuable partnerships
A
C
31
B
2
client grid/retailer
With sleeved PPAs, or off-site PPAs, we identify the best solutions for your needs, build the plant in a remote location, feed the power into the grid and supply you through it. This overcomes logistical problems, offering opportunities of increased economies of scale.
Sleeved (Physical) Off-Site PPA
Contract sleeved through utility/retailer or nominated in wholesale market
Best features
• Project optimization economies of scale, larger assets, resources maximization)
• Potential off-take sharing of one project
• Potential multisite supply
• Hedge against market power price volatility
• Potential cost savings
Things to consider
• Needs proper regulatory scheme (deregulated retail market/wheeling)
• The project needs to be located in the same network as the load
• Usually, there are no network charges savings (depending on regulatory scheme)
• Sleeving/wheeling potential fees
100% Project energy delivered to the grid but “Nominated” to client1
A PPA Price
2 100% Client Load consumed from the grid
B Retail Tariff/Market Price paid only for ( 2 - 1 )
Physical Delivery (register) of Certificates (if any)
A
1
B
2REC
client grid/retailer
Financial PPAs are also called Virtual PPAs (VPPAs), Contracts for Difference (CfD) or Synthetic PPAs.After identifying the solutions that best fit your needs, we will build the plant in a remote location and feed the power into the grid.
Financial PPA
Market ready energy
Best features
• No location/network limit
• Potential off-take sharing of one project
• No number of supply sites limit
• No sleeving/wheeling fees
• Hedge against market power price volatility
• Potential cost savings
Things to consider
• Basis risk to be allocated depending on the reference price of choice
• Potential accounting treatment impact
• No savings on network charges
• Buyer’s existing retail/market supply arrangement to be adapted in order to improve PPA hedging effectiveness
100% Project energy delivered to the grid1
100% client Load consumed from the grid 2
A PPA Financial Settlement (for differences vs Market Wholesale price)
C Wholesale Price
B Retail Tariff/Market Price paid for energy purchased from the grid
Physical Delivery (register) of Certificates (if any)
A
C
1
B
2REC
client grid/retailer
