Operations

Net electricity generation

Millions of kWh    
    2017 2016 Change
Thermal 39,830 42,993 (3,163) -7.4%
Nuclear - 7,523 (7,523) -
Hydroelectric 22 1,235 (1,213) -98.2%
Wind 1,814 1,715 99 5.8%
Other sources 173 147 26 17.7%
Total net generation 41,839 53,613 (11,774) -22.0%
- of which Russia 39,830 41,062 (1,232) -3.0%
- of which Slovakia - 9,684 (9,684) -
- of which Belgium - 977 (977) -
- of which other countries 2,009 1,890 119 6.3%

Net electricity generation in 2017 came to 41,839 million kWh, a decrease of 11,774 million kWh compared with 2016.

This result is mainly due to the change in the scope of consolidation owing to the sale of Slovenské elektrárne (in July 2016) and Marcinelle Energie (in November 2016). In addition, generation declined in Russia due to a slight decrease in plants’ load factor.

Contribution to gross thermal generation

Millions of kWh
20172016Change
Naturale gas 22,384 53.3% 25,000 46.7% (2,616) -10.5%
Coal 19,647 46.7% 20,483 38.2% (836) -4.1%
Nucleare fuel - - 8,102 15.1% (8,102) -
Total 42,031 100.0% 53,585 100.0% (11,554) -21.6%

Gross thermal generation in 2017 posted a decrease of 11,554 million kWh to 42,031 million kWh. In addition to the aforementioned changes in the scope of consolidation, this decrease reflects an increased used of combined-cycle and coal-fired plants in Russia at the expense of gas-fired plants (which were also affected in the 1st Half of 2016 by a temporary shutdown at the Nevinnomisskaya plant).

Net efficient generation capacity

MW    
at Dec. 31, 2017at Dec. 31, 2016Change
Thermal plants 8,878 8,944 (66) -0.7%
Hydroelectric plants 19 19 - -
Wind farms 741 741 - -
Other 123 106 17 16.0%
Total net efficient capacity 9,761 9,810 (49) -0.5%
- of which Russia 8,878 8,944 (66) -0.7%
- of which other countries 883 866 17 2.0%

Net efficient capacity in 2017 totaled 9,761 MW, a decrease of 49 MW compared with the previous year. The change compared with December 31, 2016 is mainly attributable to the decommissioning of Block 2 of the Sredneuralskaya plant.

Electricity distribution and transport networks

2017 2016 Change
High-voltage lines at year end (km) 6,505 6,505 - -
Medium-voltage lines at year end (km) 35,016 35,015 1 -
Low-voltage lines at year end (km) 86,027 86,043 (16) -
Total electricity distribution network (km) (1) 127,548 127,563 (15) -
Electricity transported in the Enel distribution network (millions of kWh) 15,206 14,890 316 2.1%

(1) The figure for 2016 reflects a more accurate calculation of the number of kilometres of distribution lines.

Electricity transported, which was concentrated entirely in Romania, posted an increase of 316 million kWh (+2.1%), going from 14,890 million kWh to 15,206 million kWh in 2017. This increase was mainly the result of demand in the Romanian market, especially in regions served by Enel.

Electricity sales

Millions of kWh        
   2017 2016 Change
Free market 6,318 7,471 (1,153) -15.4%
Regulated market 4,029 4,864 (835) -17.2%
Total 10,347 12,335 (1,988) -16.1%
- di cui Romania 10,347 7,719 2,628 34.0%
- di cui France - 2,218 (2,218) -
- di cui Slovakia - 2,398 (2,398) -

Electricity sales in 2017 decreased by 1,988 million kWh, going from 12,335 million kWh to 10,347 million kWh. This decrease, attributable to the changes in the scope of consolidation, was partly offset by the sharp increase in electricity sales in Romania as a result of the progressive liberalization of the market.

Performance

Millions of euro    
            2017 2016Change
Revenue 2,411 3,798 (1,387) -36.5%
Gross operating margin 543 762 (219) -28.7%
Operating income 306 286 20 7.0%
Capital expenditure 307 (1) 265 (2) 42 15.8%

(1) Does not include €44 million regarding units classified as “held for sale”.
(2) Does not include €283 million regarding units classified as “held for sale”.

The following tables show a breakdown of performance by country in 2017.

Revenue

Millions of euro    
    2017 2016Change
Romania 1,180 1,058 122 11.5%
Russia 1,135 986 149 15.1%
Slovakia - 1,360 (1,360) -
Other countries 96 394 (298) -75.6%
Total 2,411 3,798 (1,387) -36.5%

Revenue in 2017 totaled €2,411 million, a decrease of €1,387 million (-36.5%) compared with the previous year. This decline is related to:

  • the decrease of €1,360 million in revenue in Slovakia due to the deconsolidation following the sale at the end of July 2016;
  • the increase of €149 million in revenue in Russia, mainly related to the strengthening of the ruble against the euro (€126 million) and the increase in the unit sales prices, which more than offset the decrease in output;
  • the increase of €122 million in revenue in Romania, essentially owing to the increase in volumes transported and sold, which more than offset the reduction in distribution rates;
  • the €298 million decrease in revenue in other countries, of which €295 million relating to the deconsolidation of Marcinelle Energie and Enel France.

Gross operating margin

Millions of euro        
         2017 2016 Change
Romania 232 339 (107) -31.6%
Russia 270 186 84 45.2%
Slovakia - 191 (191) -
Other countries 41 46 (5) -10.9%
Total 543 762 (219) -28.7%

The gross operating margin amounted to €543 million, a decrease of €219 million compared with 2016. This performance was mainly due to:

  • the change in the scope of consolidation relating to Slovenské elektrárne (€191 million);
  • the decrease of €107 million in the margin in Romania, due to the increase in the costs for the provisioning of electricity, owing to a crisis on the supply market, which was not reflected in the prices charged to customers;
  • the increase of €84 million in the gross operating margin in Russia, due mainly to the strengthening of the ruble against the euro and the improvement in the generation margin.

Operating income

Millions of euro    
               2017 2016Change
Romania 114 71 43 60.6%
Russia 210 136 74 54.4%
Slovakia - 114 (114) -
Other countries (18) (35) 17 -48.6%
Total 306 286 20 7.0%

Operating income in 2017 totaled €306 million, an increase of €20 million. Specifically, a €162 million decline in depreciation, amortization and impairment losses reflects not only the effects of the sale of Slovenské elektrárne (€77 million), but also the effect of the impairment recognized in 2016 on Enel Green Power Romania (€130 million) and the adjustment of the assets of Marcinelle Energie designated for disposal to their estimated realizable value (€54 million)..

Capital expenditure

Millions of euro    
                 2017 2016Change
Romania 134 136 (2) -1.5%
Russia 109 105 4 3.8%
Other countries 64 24 40 -
Total 307 (1) 265 (2) 42 15.8%

(1) Il dato non include 44 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.
(2) Il dato non include 283 milioni di euro riferiti al perimetro classificato come “posseduto per la vendita”.

Capital expenditure came to €307 million, up €42 million year on year, mainly in respect of wind plants in Greece and geothermal plants in Germany.