Business

11 JANUARY

Acquisition of Demand Energy

On January 11, 2017, Enel Green Power North America acquired a 100% stake in Demand Energy Networks (“Demand Energy”), a US-based company specialized in intelligent software and energy storage systems. Enel will work with Demand Energy, which has established itself as a leader in the New York City storage market, delivering value to commercial and industrial customers, to expand deployment of the company’s Distributed Energy Network Optimization System (DEN.OSTM), an intelligent software controls platform that enables real-time optimization of energy management and revolutionizes the way electricity is generated, stored and consumed.

10 FEBRUARY

Enel Green Power participates in construction of hospital in Uganda

On February 10, 2017, Enel Green Power participated in the project of Emergency and the architect Renzo Piano for the construction of a pediatric surgery hospital in Entebbe, Uganda, which will become the new center of pediatric excellence in Africa. The hospital will also be a training center for young doctors and nurses from Uganda and neighboring countries, making a significant contribution to improving health standards in the area.

Enel Green Power will provide 2,600 thin-film photovoltaic modules manufactured at the 3Sun factory in Catania, for a total of 289.24 kWp (kilowatt peak), giving the new facility energy autonomy and sustainability.

14 FEBRUARY

Acquisition of Brazilian distributor CELG-D finalized

On February 14, 2017, the Enel subsidiary Enel Brasil finalized the acquisition of about 94.8% of the share capital of CELG Distribuição (“CELG-D”), a power distribution company that operates in the Brazilian state of Goiás, for a total of R$2.187 billion. The original agreement provided for the remaining shares of CELG-D to be offered to the company’s current and retired employees through a process that in May enabled Enel to purchase the shares not bought by those employees.

The acquisition of CELG-D expanded Enel’s presence in the Brazilian distribution sector, increasing Enel’s Brazilian customer base from 7 million to 10 million, making Enel Brasil the second largest power distributor in the country,

4 APRIL

Power purchase agreement in Zambia

On April 4, 2017, Enel Green Power signed a 25-year power purchase agreement with Zambia’s state-owned utility ZESCO for the 34 MW Ngonye photovoltaic plant won in June following the first round tender of the Scaling Solar program, which was launched by state-owned investment holding company Industrial Development Corporation Limited (“IDC”). Ngonye is located in the Lusaka South Multi-Facility Economic Zone in southern Zambia, and the award of the capacity to Enel marked the Group’s entry into Zambia’s renewable energy market. Enel will be investing approximately $40 million in the construction of the new photovoltaic plant, which is expected to generate around 70 GWh per year. Ngonye will be owned by a special purpose vehicle in which Enel Green Power will hold 80% and IDC will have a 20% minority stake.

10 APRIL

Acquisition of a photovoltaic project in Australia

On April 10, 2017, Enel, acting through a joint venture between the subsidiary Enel Green Power and Dutch Infrastructure Fund, closed an agreement to acquire Bungala Solar One, the first 137.5 MW phase of the 275 MW Bungala Solar photovoltaic project, which is currently the largest ready-to-build solar PV project in Australia, from an Australian developer.

The acquisition of Bungala Solar Two, the second phase of the project, closed at the end of July. The Bungala Solar project is located near Port Augusta in South Australia. The joint venture’s total investment in the 275 MW project is around $315 million, including project construction, with Enel contributing around $157 million. The total investment will be financed through a mix of equity and project finance with a consortium of local and international banks. The project already holds a long-term power purchase agreement with Origin Energy, a major Australian utility. Construction at Bungala Solar One began in July and will be completed in the 3rd Quarter of 2018, while Bungala Solar Two began construction in December and will be completed in the 1st Quarter of 2019.

10 APRIL

Acquisition of an additional stake in e-distribut¸ie Muntenia and Enel Energie Muntenia

On April 10, 2017, Enel Investment Holding (“EIH”) finalized the acquisition from SAPE (the Romanian stateowned holding company that owns state shareholdings) of around 13.6% of the share capital of e-distribut¸ie Muntenia and Enel Energie Muntenia for a total of about €400 million. Following the transaction, EIH had increased its interest in the two companies to about 78% of their share capital, from the 64.4% held previously. The acquisition was a consequence of SAPE exercising a put option in November 2012. With the exercise of the put option, SAPE had asked for a price of about €520 million, an amount which was contested by EIH. After failing to reach an agreement on the price for the equity interests, in 2014 SAPE began an arbitration proceeding before the International Chamber of Commerce in Paris, in which it lodged a claim for the above price and about €60 million in interest. In its ruling of February 3, 2017, the Arbitral Tribunal set the purchase price for the equity interests involved in the put option at about €400 million, reducing the amount requested by SAPE by more than €100 million and dismissing the claim for interest.

16 MAY

Acquisition of Tynemouth Energy Storage

On May 16, 2017, Enel purchased the Tynemouth standalone battery energy storage system project located in Newcastle in the United Kingdom by acquiring 100% of Tynemouth Energy Storage Limited from the European energy project developer and operator Element Power. The ready-to-build project, which is expected to be completed by the 1st Half of 2018, will use lithium-ion batteries with a capacity of 25 MW (12.5 MWh). Enel’s overall investment in the project, including construction, is expected to total about €20 million.

Tynemouth is supported by a four-year Enhanced Frequency Response (EFR) contract with National Grid awarded to the project in last year’s EFR tender to provide grid balancing services. After four years, the project will participate in ancillary services and capacity market tenders.

17 MAY

Award of wind capacity in Spain

On May 17, 2017, Enel Green Power España was awarded 540 MW of wind power capacity in a tender for 3,000 MW of renewable energy launched by the Spanish government to help the country achieve its target of supplying 20% of energy consumption from renewables by 2020. The Enel Group will invest about €600 million in the construction of the wind capacity, which is part of the investment envisaged in its current Strategic Plan. The plants, which are expected to enter service by 2019, will sell their power in the Spanish wholesale market, while the Spanish government will provide incentives, in terms of yearly capacity payments, to guarantee a constant return over the 25-year lifetimes of the plants. The wind farms will be located in the regions of Aragona, Andalusia, Castile and León, and Galicia, areas which enjoy high levels of wind resources. Once up and running, the wind facilities will generate about 1,750 GWh per year.

29 MAY

Tax partnership agreement for Rock Creek wind farm in the United States

On May 29, 2017, Enel Green Power North America (“EGPNA”), the Enel Group renewable energy company operating in the United States, signed a tax equity agreement worth about $365 million with Bank of America Merrill Lynch and JP Morgan for the 300 MW Rock Creek wind farm located in Missouri. Under the agreement, the investors will contribute the agreed amount to the wind farm’s owner in exchange for 100% of the “Class B” equity interest in the project. This interest will allow the two investors to obtain, under certain conditions set by US tax laws, a percentage of the tax benefits that will be attributed to the Rock Creek wind project. In turn, EGPNA, through Rock Creek Holding, will retain 100% ownership of the “Class A” interests and therefore management control of the project. The agreement secures the funding commitment by the two investors, and the closing of the funding is expected to occur upon completion of construction and start of commercial operation of the farm. The tax equity accord will be supported by a parent company guarantee from Enel SpA.

5 JUNE

Acquisition of Amec Foster Wheeler Power

On June 5, 2017, Enel Green Power has completed the acquisition of 100% of Amec Foster Wheeler Power from Amec Foster Wheeler Italiana, owner of two wind farms in Campania with a total installed capacity of 54.5 MW. The two plants, in operation since 2006 and 2008, are located in the municipalities of Vallesaccarda (22.5 MW) and Scampitella (32 MW), in the province of Avellino, and generate about 90 GWh per year.

With the transaction, Enel Green Power and Amec Foster Wheeler Italiana closed a preliminary sale agreement signed in December 2016. Enel Green Power paid about €21 million.

14 JUNE

Award of wind capacity in Russia

On June 14, 2017, Enel Russia was awarded two wind projects with a total capacity of 291 MW within the framework of the 2017 Russian government tender for the construction of 1.9 GW of wind capacity in the country. The two projects will be developed and built by Enel Green Power with an overall investment of about €405 million. The two plants will sell their energy in the Russian wholesale market and will be supported by capacity payment agreements with the Russian government. The Azov wind farm, which is expected to enter service by 2020, is located in the Rostov region, in southern Russia, and will have an installed capacity of 90 MW, generating around 300 GWh. The Murmansk wind farm, located in the northwestern Russian region of the same name, is expected to enter service by 2021 and will boast an installed capacity of 201 MW, generating around 730 GWh per year.

26 JUNE

Implementation of the smart meter

One of the most important challenges facing Enel is the implementation of the new-generation meter in the countries where the Group is present with distribution companies. On June 26, 2017, Enel kicked off Open Meter in Italy, the plan to replace 32 million first-generation meters installed beginning in 2001. In Spain, more than 11 million devices will have been installed by the end of 2017.

In Romania, 290,000 will be installed on the three Enel networks by the end of the year. The new smart meter offers considerable benefits to customers and distributors alike, representing the first essential step towards a smart digital grid.

One of the largest challenges facing this innovative tool is the regulatory framework in the various countries, which will require ongoing dialogue to overcome.

26 JULY

Award of renewables capacity in Spain

On July 26, 2017, Enel Green Power España was awarded 339 MW of solar power capacity in Spain in a renewable energy tender. The plants, whose construction will require an investment of about €270 million, will sell their electricity on the Spanish pool market, with incentives from the Spanish government in the form of annual capacity payments to guarantee a steady return over the 25-year lives of the facilities. The photovoltaic plants are expected to enter service by 2019 and will be located in the regions of Murcia and Badajoz. Once up and running, the plants will generate approximately 640 GWh per year.

7 AUGUST

Acquisition of EnerNOC

On August 7, 2017, Enel Green Power North America (“EGPNA”) completed a tender offer for all of the outstanding shares of EnerNOC for a total price of about $250 million.

EnerNOC has active demand response networks in North America, Europe and Asia-Pacific. Additionally, EnerNOC energy intelligence software enables businesses to boost facility efficiency, simplify utility bill management and ease reporting burdens. The company’s energy procurement tools and services help customers buy energy more strategically, manage risk and optimize pricing.

The completion of the acquisition came as a result of EGPNA’s successful tender offer to EnerNOC’s shareholders for no less than a majority of its shares. A total of 22,447,759 shares were validly tendered into and not withdrawn from the offer, representing about 71.61% of EnerNOC’s outstanding shares at a price of $7.67 per share in cash, representing a premium of about 42% to the company’s closing stock price on June 21, 2017 and a 38% premium to the 30-day weighted average price.

Following its acceptance of the tendered shares, EGPNA completed the acquisition by acquiring a 100% ownership interest in the company. EnerNOC will be delisted following the merger.

17 AUGUST

Tax partnership agreement for Red Dirt wind farm in the United States

On August 17, 2017, Enel Green Power North America (“EGPNA”), acting through its subsidiary Red Dirt Wind Holdings, signed a tax equity agreement worth approximately $340 million with MUFG and Allianz Renewable Energy Partners of America (“Allianz”) for the Red Dirt wind project located in Oklahoma, which has a total installed capacity of around 300 MW.

Under the agreement, which is commonly used for the development of renewable energy projects in the United States, MUFG and Allianz will pay the above amount to the wind farm owner, Red Dirt Wind Holdings, purchasing 100% of the “Class B” equity interests in the project.

This investment will enable the two investors to obtain, under certain conditions set under US tax law, a percentage of the tax benefits of the Red Dirt wind project. In turn, EGPNA, through Red Dirt Wind Holdings, will retain 100% ownership of the “Class A” interests and therefore management control of the project. The agreement secures the funding commitment by the two investors, with the closing of the funding expected to occur upon start of commercial operation of the Red Dirt wind farm. The tax equity partnership will be supported by a parent company guarantee from Enel SpA.

The Red Dirt wind project, construction of which started in April, began operations in December. The investment in Red Dirt amounts to about $420 million, which is part of the investment outlined in Enel’s current Strategic Plan.

13 SEPTEMBER

Long-term power purchase agreements reached in the United States

On September 13, 2017, Anheuser-Busch and Enel Green Power (“EGP”) signed a Power Purchase Agreement (“PPA”), whereby Anheuser-Busch will purchase the energy delivered to the grid and the associated renewable electricity credits from a portion of Enel Green Power’s Thunder Ranch wind project, in the amount of 152.5 MW.

The wind energy partnership between EGP and Anheuser-Busch is the beer company’s first contracted utility-scale project to start operations in the world, with the Thunder Ranch wind farm becoming operational in December. More specifically, under a Virtual Power Purchase Agreement (“VPPA”), EGP will sell Anheuser-Busch the electricity output delivered to the grid by a 152.5 MW portion of the Thunder Ranch wind farm, substantially boosting the beer company’s purchases of renewable energy.

28 SEPTEMBER

Enel wins renewable energy tender in Brazil

On September 28, 2017, Enel Brasil was awarded a 30-year concession for the operational 380 MW Volta Grande hydro power plant located in south-eastern Brazil following the “Leilão de Concessões não Prorrogadas” public auction organized by the Brazilian federal government via the Brazilian electricity regulatory agency - ANEEL. Enel invested a total of around R$1.4 billion, equal to about $445 million, for the hydro concession, in line with the investment outlined in the Group’s current Strategic Plan. The hydro power plant is supported by the 30-year concession awarded with guaranteed annual generation revenue.

After the signing of the concession in November, Enel’s hydro capacity in the country increased to 1,270 MW from the current 890 MW.

28 SEPTEMBER

Seizure of Brindisi plant

On September 28, 2017, Enel Produzione was notified of the decision issued by the investigating magistrate of Lecce ordering the seizure of the thermoelectric power plant of Brindisi-Cerano.

The measure is part of a criminal investigation initiated by the Public Prosecutor’s Office of the Court of Lecce concerning the use of fly ash, i.e. that produced by the combustion of coal and captured by the smoke abatement systems of the plant, in the cement industry. The investigation also involves Cementir, a cement company to which the ash was sent for cement production, and ILVA, which provided Cementir with other residues for cement production.

Within the scope of the enquiry, a number of executives/ employees of the company are being investigated for illegal waste disposal and unauthorized blending of waste. In order to enable plant operations to continue, the seizure order authorizes the Brindisi power station to continue generation for 60 days (subsequently extended until February 24, 2018), subject to certain technical requirements intended, according to the accusations, to remove the alleged ash management deficiencies. Enel Produzione has been charged under the provisions of Legislative Decree 231/2001 with the same offenses of which the company’s executives/employees are accused. Following the charges, as provided for by law, the investigating magistrate of Lecce also ordered the seizure of approximately €523 million, equivalent to the profit that the Lecce Public Prosecutor conducting the investigation alleges was generated through the illegal handling of the ash. The seizure order appointed two custodians in order to monitor compliance with the technical measures mentioned earlier.

Enel Produzione has informed the investigating magistrate that the plant is operated in accordance with industry regulations and the highest international technology standards, as well as with a cycle for the production and reuse of residues that is identical to that adopted in the most efficient power plants in Europe and the world, in compliance with the most modern environmental requirements intended to promote a circular economy. Analyses of the ash prior to seizure and those conducted afterwards have consistently confirmed the non-hazardous nature of the material and therefore the legitimacy of the manner in which they have been handled. Enel Produzione, although not agreeing with the allegations, has nevertheless expressed its full willingness, in agreement with the investigating magistrate and the custodians, to rapidly implement technical solutions for the execution of the requirements imposed with the seizure order that take account of the operational and logistical complexities associated with their implementation and the associated risks to the national electricity system.

In this regard, with the request for an extension of the use of the power station on November 15, 2017, Enel Produzione asked for authorization to test a management approach that would separate the ash by operational stage, thereby enabling the implementation of the provision of the order. Subsequently, following the testing, the company obtained an extension of another 90 days until February 24, 2018.

In the meantime, the Public Prosecutor, in view of the need to proceed with evidence gathering with a technical enquiry into the facts of the case, asked the investigating magistrate to move ahead with this stage. At the hearing of February 2, 2018, the magistrate assigned the engagement to the technical experts, giving them 150 days to file their report.

6 OCTOBER

Tax partnership agreement for Thunder Ranch wind farm in the United States

On October 6, 2017, Enel Green Power North America (“EGPNA”), acting through its subsidiary Thunder Ranch Wind Holdings (“Thunder Ranch Holdings”), signed a tax equity agreement worth approximately $330 million with the Alternative Energy Investing Group of Goldman Sachs and GE Energy Financial Services, a unit of General Electric, for the 298 MW Thunder Ranch wind project located in Oklahoma.

Under the agreement, which is a common transaction structure for the development of renewable energy projects in the United States, the two passive investors will purchase 100% of “Class B” and “Class C” equity interests in the project, respectively, in exchange for their payment of the above purchase price. This interest will allow the investors to obtain, under certain conditions set by US tax laws, a percentage of the tax benefits of the Thunder Ranch wind project. In turn, EGPNA, through Thunder Ranch Holdings, will retain 100% ownership of the “Class A” interests and therefore management control of the project. The agreement secures the funding commitment by the two investors, and the closing of the funding is expected to occur upon achievement of commercial operation of the 298 MW wind farm.

3RD QUARTER

Agreement for the disposal of renewables plants in Mexico

In the 3rd Quarter of 2017, Enel Green Power (“EGP”) finalized agreements with the Canadian institutional investor CDPQ and the investment vehicle CKD IM for the sale of a total of 80% of the share capital of eight special purpose vehicles (“SPVs”). The SPVs, which are owned by EGP through a Mexican company, own three plants in operation and five under construction for a total capacity of 1.7 GW. The finalization of the disposal involved a corporate restructuring of Enel Green Power México, the sole shareholder of the eight SPVs being sold. The restructuring was completed with the demerger of 60.8% of the eight SPVs to a newly formed company – Tenedora de Energía Renovable Sol y Viento SAPI de Cv – and the remaining 39.2% to eight new companies (the mini-holding).

Under the agreements, EGP will continue to operate the plants owned by the SPVs after the disposal and will complete those still under construction, maintaining a significant influence.

In addition, as from January 1, 2020, EGP may transfer additional projects to the Holding company. As a result of these possible transfers, it could therefore increase its interest in the Holding company until it becomes the majority shareholder. The transaction is worth $2.6 billion, of which a price of about $340 million for the sale of 80% of the Holding company’s share capital and about $2.2 billion for financing (in part through related-party loans and in part through project financing arrangements) granted to the SPVs.

The closing of the transaction was originally subject to a number of ordinary conditions and receipt of the necessary authorization from the Mexican antitrust authorities. The price will be paid at the closing, bearing in mind that the amount will be subject to a subsequent price adjustment normal for this type of transaction, based on variations in the net working capital of the Holding company.

10 OCTOBER

Disposal of Bayan Resources

On October 10, 2017, Enel closed a deal for the sale of its 10% stake in Indonesian coal producer PT Bayan Resources (“Bayan”), currently owned by Enel Investment Holding, to Bayan’s controlling shareholder Mr. Dato’ Low Tuck Kwong, for $85 million, fully paid in cash. Enel purchased the 10% stake in Bayan in August 2008 during the Initial Public Offering (IPO) that led to the listing of the Indonesian coal company on the Jakarta Stock Exchange.

23 OCTOBER

Award of renewables capacity in Ethiopia

On October 23, 2017, Enel, acting through a consortium led by the Enel Green Power (“EGP”) renewables division and including leading Ethiopian infrastructure company Orchid Business Group, was selected as the preferred bidder for a 100 MW photovoltaic project following a solar tender launched by local utility Ethiopian Electric Power (“EEP”) within the framework of the country’s Growth and Transformation Plan (“GTP 2”), with which the Ethiopian government hopes to achieve about 12,000 MW of hydroelectric, wind, geothermal and solar capacity in partnership with the private sector in order to meet the country’s demand for electrification while at the same time diversifying the generation mix in line with the 2020 national energy plan. The consortium has the right to develop, build and operate the 100 MW of photovoltaic capacity in Metehara, in the Oromia region, about 200 km east of Addis Ababa, an area with a high level of solar radiation.

The consortium headed by EGP will be investing about $120 million in the construction of the photovoltaic plant. The Metehara plant is expected to enter service in 2019. Once up and running, the facility will be able to generate approximately 280 GWh per year, while avoiding the emission of around 296,000 metric tons of CO2 into the atmosphere. The project is supported by a 20-year power purchase agreement with EEP for all of the energy generated by the plant.

25 OCTOBER

Acquisition of eMotorWerks

On October 25, 2017, Enel, acting through its US subsidiary EnerNOC, announced the acquisition of the Californiabased eMotorWerks, a leading North American supplier of electric vehicle (EV) charging stations, called JuiceBox, and owner and operator of JuiceNet, an Internet of Things (IoT) platform for the smart management of EV charging and other distributed energy storage facilities. Through the JuiceNet platform, these facilities can be remotely controlled and aggregated for grid balancing purposes relying on unidirectional and bidirectional (Vehicle-to-Grid, V2G) electricity flows. The acquisition of eMotorWerks marks Enel’s entrance into the US electric mobility market, one of the largest EV markets at global level.

The acquisition consolidates Enel’s strategic commitment to provide the market with innovative customer-focused products and services, including smart recharging and integration between electric vehicles and distributed generation, grid balancing services and V2G.

Enel is planning to use JuiceNet platf

2 NOVEMBER

Award of renewables capacity in Chile

On November 2, 2017, Enel Generación Chile was awarded the supply of 1.180 TWh per year to a number of Chilean distribution companies through the tender launched by the country’s National Energy Commission (Comisión Nacional de Energía) aimed at meeting the energy demand of regulated market customers over the 2024-2043 period.

Thanks to the synergies between Enel Generación Chile and Enel Green Power, the Group won 54% of the 2.2 TWh per year offered in the tender, more than any other participant.

The energy awarded to Enel will be generated with a mix of new renewable projects comprising 116 MWp of solar, 93 MW of wind and 33 MW of geothermal for a total capacity of 242 MW in the Antofagasta region, in northern Chile, as well as a wind farm in the Araucanía region, in southern Chile.

The facilities are expected to enter into service by 2024, generating around 1.180 TWh per year and avoiding the annual emission of around 500,000 metric tons of CO2 into the atmosphere. The tender was launched within the scope of Chile’s General Power Service Law (Ley General de Servicios Eléctricos) 4/2006 shaping the regulatory framework for public tenders in order to provide distribution system operators with longterm power supply contracts with generators that would enable them to meet the power consumption needs of regulated market customers in their concession areas.

9 NOVEMBER

National e-mobility plan

On November 9, 2017, Enel presented the company’s National Plan for the installation of electric vehicle charging infrastructure, which provides for the installation of around 7,000 charging stations by 2020 and a total of 14,000 by 2022. The program envisages the comprehensive coverage of all Italian regions and will contribute to increasing the number of electric and hybrid vehicles in circulation.

Enel will invest between €100 million and €300 million to develop an extensive charging infrastructure network comprising Quick (22 kW) charging stations in urban areas and Fast (50 kW) and Ultra Fast (150 kW) charging stations in extra-urban areas. Approximately 80% of the charging points will be installed in urban areas, of which 21% in major metropolitan areas, 57% in other cities and the remaining 20% in other areas around the country to enable medium and long-range travel in extra-urban areas and on motorways. The latter category includes the charging stations of the EVA+ (Electric Vehicles Arteries) project, co-financed by the European Commission, which provides for the installation of 180 charging stations along Italian roads in extra-urban areas over three years. In 2018, more than 2,500 charging stations will be installed throughout the country.

The infrastructure developed by Enel, which currently boasts about 900 charging stations throughout Italy, has been designed to meet the various charging needs of customers. These features are possible thanks to the Electro Mobility Management System (EMM) cloud platform, which enables the remote monitoring and management of the entire network. The integration between Enel’s charging stations and the EMM platform also enables smart charging services, which allow customers to manage their charging activities more effectively. Thanks to the recent acquisition of the California-based eMotor- Werks, Enel will be able to offer solutions using Vehicleto- Grid (V2G) technology that can generate economic benefits for customers who make their vehicle’s batteries available to help stabilize the grid.

The National Plan will be developed in collaboration with the municipalities and regions involved, where Enel will invest directly in the charging infrastructure, and together with private-sector players that want to participate in the project, with a contribution from Enel of up to 65% of the investment. More specifically, this will involve the installation of charging stations on private property accessible to the public owned by small and medium-sized enterprises (SMEs), independent professionals and the self-employed (SOHOs) as well as commercial establishments and large retailers, such as gyms, supermarkets, shopping malls, holiday farms and hotels.

Moreover, Vallelunga will host Enel’s first technology center for R&D in e-mobility solutions in Italy, which will aggregate research institutes and start-ups operating in the sector. To date, more than 20 charging infrastructures using Enel technology have been installed and are operational, which will enable:

  • the development and testing of charging infrastructure in a real-world environment, involving the various automotive companies active at the racetrack;
  • the creation of a motor sport specialized center for the development and testing of new solutions for electric vehicles and charging stations;
  • the testing of sustainable mobility services such as payment and access control systems for charging infrastructure and e-car sharing;
  • the leveraging of ACI Vallelunga’s competencies in road safety with safe driving courses specific for electric vehicle drivers.

23 NOVEMBER

Award of renewables capacity in Mexico

On November 23, 2017, Enel Rinnovabile was awarded the right to sign a number of contracts in Mexico to supply energy and green certificates from four wind projects with a total capacity of 593 MW in the country’s third long-term public tender since its energy reform.

The Enel Group will be investing around $700 million in the construction of the new facilities, in line with the investments outlined in the company’s current Strategic Plan. Each project will be supported by a contract providing for the sale to Mexico’s Cámara de Compensación of specified volumes of energy over a 15-year period and of the related green certificates over a 20-year period. The new plants are due to enter into operation in the 1st Half of 2020. Once fully operational, the facilities are expected to produce 2.09 TWh/year of renewable energy, therefore avoiding the annual emission of nearly 960,000 metric tons of CO2 into the atmosphere.

Three plants, Amistad II and Amistad III with a total installed capacity of 100 MW each, and Amistad IV with an installed capacity of 149 MW, will be built in Acuña, in the northern state of Coahuila. Amistad II and III are expected to generate annually over 350 GWh each, while avoiding the emission into the atmosphere of around 170,000 metric tons of CO2 each. Amistad IV is expected to generate more than 510 GWh per year, while avoiding the annual emission of around 234,000 metric tons of CO2 into the atmosphere.

The 244 MW Dolores facility will be built in China, a municipality in the north-eastern state of Nuevo León. The plant is expected to generate nearly 850 GWh each year, while avoiding the annual emission of about 390,000 metric tons of CO2 into the atmosphere.

30 NOVEMBER

Disposal of Caney River and Rocky Ridge wind farms in the United States

On November 30, 2017, Enel Green Power North America (“EGPNA”) signed a cash equity agreement with investment fund Gulf Pacific Power, whereby EGPNA will sell to the fund 80% of the “Class A” shares in EGPNA’s subsidiary Rocky Caney Wind LLC, the owner of the 200 MW Caney River wind farm in Kansas and the 150 MW Rocky Ridge wind farm in Oklahoma. The total price for the transaction is approximately $233 million, which was paid upon the closing of the deal in December 2017.

EGPNA will continue to manage, operate and perform maintenance activities at both wind farms while retaining 20% of the “Class A” interest in Rocky Caney Wind LLC. Furthermore, Enel was able to deconsolidate Caney River and Rocky Ridge’s debt, amounting to approximately $140 million.

The Caney River wind farm, which is located in Elk County, Kansas, and began operations in 2011, is able to generate around 765 GWh each year, avoiding the annual emission of over 580,000 metric tons of CO2. The Rocky Ridge facility, located in Kiowa and Washita Counties, Oklahoma, began operations in 2012. The plant is able to generate around 600 GWh each year, while avoiding the annual emission of over 450,000 metric tons of CO2 into the atmosphere.

4 DECEMBER

Capacity Storage Agreements in California

On December 4, 2017, Enel Green Power North America signed three Capacity Storage Agreements (“CSA”) with California utility Pacific Gas and Electric (“PG&E”) for a total capacity of 85 MW/340 MWh. Under the agreements, Enel will build the Kingston, Cascade, and Sierra standalone lithium-ion energy storage projects, which will all be located in California. The energy storage systems will connect directly to PG&E’s grid and will charge the lithium- ion batteries when there is an abundance of renewable energy. The energy stored in the batteries will then be delivered back to the grid during times of peak demand, increasing grid reliability, while also easing congestion.

The projects have been developed with Sovereign Energy Storage, an independent developer of large-scale utility battery energy storage projects, and are expected to be operational by 2023, pending review and approval by the California Public Utility Commission as well as local and regulatory agencies.

14 DECEMBER

Award of renewables capacity in Canada

On December 14, 2017, Enel Green Power North America (“EGPNA”) was awarded two 20-year Renewable Energy Support Agreements (“RESAs”) for 146 MW of new wind capacity in Alberta, Canada, in a tender launched by the Alberta Electric System Operator (“AESO”). Under the two agreements, Enel will build two new wind facilities, the 115 MW Riverview Wind project and the 30.6 MW Phase 2 of Castle Rock Ridge wind farm, to supply their power output and renewable energy credits to AESO.

The overall investment in the construction of the two wind farms amounts to approximately $170 million. Riverview Wind and Phase 2 of Castle Rock Ridge, which is an expansion of EGPNA’s existing 76.2 MW Castle Rock Ridge wind farm, are both located in Pincher Creek, Alberta, and are due to enter service by 2019. Once operational, the two facilities are expected to generate around 555 GWh per year.

18 DECEMBER

Award of renewables capacity in Brazil

On December 18, 2017, Enel Green Power Brasil Participações was awarded the right to sign 20-year power supply contracts in the country with a new solar PV project of 388 MW following the A-4 public tender organized by the Brazilian federal government via the country’s energy regulator ANEEL. The Enel Group is expected to invest nearly $355 million in the construction of the plant, in line with the investment outlined in its current Strategic Plan.

The award, equal to 49% of the 791 MW of PV capacity offered in the tender, was greater than any other awards to the other solar energy bidders. The São Gonçalo solar plant will be supported by 20-year power supply contracts, which provide for the sale of specified volumes of energy generated by the facility to a pool of distribution companies operating in the Brazilian regulated market. The plant will be built in the São Gonçalo do Gurguéia municipality, in the state of Piauí. The plant is expected to start operations in early 2021 and will generate more than 850 GWh of renewable energy each year once fully up and running.

Subsequently, on December 20, 2017, Enel Green Power Brasil Participações was awarded the right to sign 20- year power supply contracts in the country with three wind projects for 618 MW of new capacity following the A-6 public tender organized by the Brazilian federal government via the country’s energy regulator ANEEL. The Enel Group is expected to invest approximately $750 million in the construction of the three plants, in line with the investment set out in its current Strategic Plan.

Each wind farm is supported by 20-year power supply contracts, which provide for the sale of specified volumes of energy generated by the plant to a pool of distribution companies operating in the Brazilian regulated market. The wind farms, which will be built in the north-eastern Brazilian states of Piauí and Bahia, are expected to start operation in early 2023. The projects, once fully up and running, will be able to generate approximately 3 TWh of renewable energy each year.

20 DECEMBER

Award of renewables capacity in Argentina

On December 20, 2017, Enel Green Power Argentina was awarded the right to build the 100 MW Pampa wind farm in round 2 of the renewable energy tender launched within the framework of RenovAr, the clean energy development plan launched by Argentina’s Energy Ministry, following the extension of the capacity awarded in the tender to over 1,800 MW from the initial 1,200 MW. Pampa, located in the wind resource-rich Chubut province, will be the Group’s first wind project in the country.

Enel is investing nearly $130 million in the construction of the wind farm. The project, which is expected to enter into operation by the 1st Half of 2020, will be supported by a 20-year power purchase agreement (PPA) for the sale of all the renewable energy generated by the plant to Argentina’s wholesale electric market management company CAMMESA. Once up and running, Pampa will be able to generate approximately 500 GWh per year.

Finance

4 JANUARY

Renewable energy loan in Brazil

On January 4, 2017, the Enel Group and the Brazilian Development Bank (“BNDES”), the main financing agency for development in Brazil, signed a 20-year loan agreement worth around R$373 million (about €109 million) that will cover part of the investment required to build the 102 MW Apiacás hydropower plant, located in the state of Mato Grosso in Brazil’s central-west region. Under the provisions of the loan agreement, the first instalment of R$293 million (about €85 million) was disbursed at signing, and will be followed by a second instalment of R$80 million (about €24 million), subject to the fulfilment of conditions customary for this type of transaction. The loan bears an interest rate based on the TJLP (Taxa de Juros de Longo Prazo), the long-term interest rate reviewed quarterly by the Brazilian central bank. The TJLP currently stands at 7.5%, below the current interbank rate in Brazil of 13.63%. The TJLP is used as base rate for loans granted by BNDES to private companies whose projects are deemed eligible for federal funding.

9 JANUARY

Issue of first Green Bond

On January 9, 2017, Enel Finance International (“EFI”) successfully placed on the European market its first Green Bond for institutional investors (with settlement on January 16), backed by a guarantee issued by Enel. The issue totals €1,250 million and provides for repayment in one instalment at maturity on September 16, 2024, as well as the payment of a fixed-rate coupon of 1%, payable annually in arrears in September, as from September 2017. The issue price was set at 99.001% and the effective yield to maturity is equal to 1.137%. The Green Bond is listed on the regulated markets of the Irish and Luxembourg Stock Exchanges. The transaction received subscriptions of about €3 billion, with considerable interest from socially responsible investors (“SRI”), enabling Enel to further diversify its investor base. The net proceeds raised from the issue – carried out under the medium-term note program of Enel and EFI (the Euro Medium-Term Notes - EMTN) – will be used to finance the Enel Group’s eligible green projects identified and/or to be identified in accordance with the Green Bond Principles 2016 published by the International Capital Market Association (ICMA). More specifically, the categories of projects that qualify as eligible green projects include, for example, the development, construction and repowering of renewable power plants, the development of transmission and distribution grids, and the implementation of smart grids and smart meters in the geographical areas in which the Group operates.

The operation was led by a syndicate of banks comprising Banca IMI, BofA Merrill Lynch, Crédit Agricole CIB, Citi, Deutsche Bank, HSBC, JP Morgan, Mizuho Securities, Natixis, SMBC Nikko and UniCredit as joint-bookrunners.

12 APRIL

Board approves bond issue

On April 12, 2017, the Board of Directors of Enel authorized the issue by December 31, 2018 of one or more bonds to be placed with institutional investors up to a maximum value of €7 billion as part of the strategy to refinance the Group’s maturing consolidated debt. The issues may be carried out by the Dutch subsidiary Enel Finance International (backed by a parent company guarantee) or directly by Enel depending on the existing market opportunities. The Board also charged the Chief Executive Officer with establishing the amounts, currencies, timing and characteristics of the individual issues, taking account of developments in market conditions, with the power to apply for a listing of the issues on one or more regulated markets in the European Union or on multilateral trading facilities. With a view to increasing diversification, the issues may be offered to institutional investors within or outside the European Union, including through private placements.

23 MAY

Enel Finance International issues $5 billion bond

As part of the refinancing program approved by the Board in April, on May 23, 2017, Enel Finance International, an Enel Group finance subsidiary, launched a multi-tranche bond issue offered on the US and international markets for institutional investors for a total of $5 billion, the equivalent of about €4.5 billion. The issue was oversubscribed around 3.5 times, attracting orders exceeding $17 billion.

28 JULY

EIB loan for smart meters

On July 28,2017, the European Investment Bank (EIB) agreed the first tranche of €500 million of a loan to support e-distribuzione’s plan for the replacement of smart meters in Italy. The EIB will finance part of the investment envisaged for 2017-2021 in the smart meter installation plan, which provides for the installation of around 41 million new generation smart meters (generation 2.0) over a 15 year-period. Of the total number of meters, about 32 million will replace the existing first generation meters, while the remainder will be used for new connections and customer requests. The replacement of existing meters with the next generation of devices has been prompted by the requirement for electricity distribution companies to deploy intelligent metering systems that meet the energy-efficiency standards set by the European Union (European Directive 2012/27/EU, transposed into Italian law with Legislative Decree 102/2014).

The energy scenario of recent years has underscored the importance of timely management of more comprehensive and detailed information to support the operations of electric companies and their customers. The Open Meter technology will make it possible to promote energy efficiency, increase awareness of consumption behavior, foster competition in post-meter services and develop the home automation market.

e-distribuzione’s plan has been designated an EU project of common interest (PCI) and is part of the EIB’s activities in the energy sector, fighting climate change and providing support for convergence regions (i.e. economically underdeveloped regions), since 40% of meters are located in southern Italy, Sicily and Sardinia.

2 AUGUST

Repurchase of dollar-denominated bonds

On August 2, 2017, Enel Finance International (“EFI”) purchased in cash the entire $1,750,000,000 bond issued by EFI and guaranteed by Enel. The operation was conducted on the basis of the “make whole call option” provided for in the original contract, under which it is possible to redeem the bond early at a price calculated on the basis of the present value of the payments of principal and interest, discounted at a rate increased by a spread of 30 basis points.

The repurchase was carried out as part of the strategy to optimize the structure of the Enel Group’s liabilities through active management of maturities and of cost of debt.

3 OCTOBER

New issue of bonds denominated in US dollars

On October 3, 2017, Enel Finance International placed a multi-tranche bond for institutional investors on the US and international markets totaling $3 billion, the equivalent of approximately €2.5 billion. The issue, which is guaranteed by Enel, was oversubscribed by about three times, with total orders of approximately $9 billion.

The second offering on the US market of the Enel Group in 2017 is part of the Group’s financing strategy, including the refinancing of its maturing consolidated debt.

The transaction is structured in the following tranches:

  • $1,250 million at 2.75% fixed rate maturing in 2023;
  • $1,250 million at 3.5% fixed rate maturing in 2028;
  • an additional $500 million of EFI’s existing 4.750% fixed-rate notes issued in May 2017 maturing in 2047.

8 DECEMBER

Subsidized financing in the United States

On December 8, 2017, Enel announced that two of its distributed energy projects had been selected to receive financing totaling $2.1 million under the Advancing Commonwealth Energy Storage (ACES) program run by the Massachusetts Clean Energy Centre (“MassCEC”). These will be Enel’s first distributed energy projects in Massachusetts, the state that hosts the Group’s headquarters in North America, and involve a “behind-the-meter” microgrid and a battery storage system. More specifically, the initiatives consist in:

  • a project proposal for a “behind-the-meter” microgrid, which received funding of $850,000. The project, in a collaboration between Enel Green Power North America and the University of Massachusetts Boston (“UMass Boston”), involves a lithium-ion storage system of 0.5 MW/1.82 MWh integrated with a 0.5 MW photovoltaic system to be installed on the university campus in Boston;
  • the development of a lithium-ion power storage system of 2 MW/4 MWh proposed by EnerNOC to the Acton Boxborough Regional School District (ABRSD), which was awarded $1.25 million, the largest financing granted under the ACES program.

Both projects are combining behind-the-meter demand charge management and in-front-of-the-meter, demand response applications, creating multiple revenue streams for all the parties involved and generating benefits for the grid in terms of balancing and reliability.

18 DECEMBER

New revolving credit line

On December 18, 2017, Enel and its Dutch subsidiary Enel Finance International agreed a new €10 billion revolving credit line replacing the previous €9.44 billion line renegotiated in February 2015. The new facility has a lower cost and matures in December 2022 rather than February 2020 as envisaged for the previous credit line. The cost of the new credit facility varies on the basis of the rating assigned to Enel. Based on the current rating, it has a spread which changes to 45 basis points above Euribor from the previous 72.5, while the commitment fees remain at 35% of the spread. Accordingly, following the decline in the spread, the latter decrease to 15.75 basis points from 25.38.

The new credit line, which can be used by Enel itself and/ or Enel Finance International with a parent company guarantee, is not connected with the debt refinancing program and is intended to give the Group an extremely flexible and practical instrument for the management of working capital. The transaction involved various Italian and international banks, including Mediobanca in the role of Documentation Agent.

Partnership

11 JANUARY

Collaboration agreement with Saudi Electricity Company

On January 11, 2017, Enel SpA and Saudi Arabian utility Saudi Electricity Company (“SEC”) signed a framework agreement for cooperation in the power distribution sector which will involve the two companies in working together to develop long-term strategic knowledge sharing regarding the latest network technologies. Under the agreement, Enel and SEC will enhance the exchange of information, best practices and experiences in the distribution sector. More specifically, the two companies will share best practices and benchmarks to take distribution networks’ performance in areas like operations, efficiency and security to best-in-class levels, while also introducing a technology roadmap aimed at digitizing distribution grids and improving energy efficiency at customer premises. Enel and SEC will also jointly evaluate further areas of collaboration in the power distribution sector.

14 JANUARY

Agreement with Dubai Electricity and Water Authority

On January 14, 2017, Enel SpA and Dubai Electricity and Water Authority (“DEWA”), Dubai’s public service infrastructure company, signed a memorandum of understanding (MoU) for cooperation in smart grids and network digitization. The MoU, which has a duration of three years and could be extended by mutual agreement, seeks to build partnership relations between Enel and DEWA to facilitate the achievement of common strategic objectives and the exchange of information, experience and studies in the areas outlined by the MoU, including the analysis of key performance indicators in smart grid management as well as network digitization and security. Enel and DEWA will cooperate in research activities in the areas covered by the MoU and will share Enel’s experience in distribution automation, renewable energy integration, smart meters and smart cities, with special reference to the role played by Enel in Expo Milano 2015, as well as DEWA’s efforts in the field of smart grids. The parties will also evaluate cooperation opportunities in network technologies for Expo 2020 Dubai, given Enel’s experience in building a fully-electric smart city for Expo Milano 2015 and DEWA’s contribution to the development of network infrastructure and related technologies for Expo 2020.

7 FEBRUARY

Agreement with Aton Storage

On February 7, 2017, Enel SpA and Aton Storage, one of the leading Italian companies in the development and manufacture of innovative storage systems, signed an agreement to collaborate on initiatives in renewable electricity storage services. The aim of the accord is to enrich and strengthen the range of products offered to end users with innovative, high performance solutions that contribute to energy efficiency. Storage solutions play a key role in the development of renewable energy and electric mobility, sectors in which Enel is a world leader.

The battery developed by Aton was included among the new technologies that Enel presented during the Formula- E event held in Marrakech on November 12, 2016, and the Capital Markets Day in London on November 22, 2016.

28 FEBRUARY

Enel invests in green start-ups in Hawaii

On February 28, 2017, Enel, acting through its US renewable energy subsidiary Enel Green Power North America (“EGPNA”), became a global partner and strategic advisor of Energy Excelerator, a leading American incubator for clean energy start-ups based in Hawaii.

By joining Energy Excelerator, a non-profit organization whose mission is to solve the challenges of world energy systems through innovation, Enel will access its portfolio of start-ups advise in the selection of projects to be supported by the incubator.

Hawaii, which has a high penetration of renewable energy sources, will enable Enel to expand its network of innovators to open energy up to new uses, new technologies and new people.

1 JUNE

Memorandum of understanding with Rosseti for the development of smart grids

On June 1, 2017, Enel and Rosseti, the national operator of power grids in Russia, signed a memorandum of understanding for cooperation in innovative smart grid solutions. The two-year agreement seeks to build a partnership between Enel and Rosseti by promoting the exchange of information and the sharing of best practices and technological solutions in the areas of work outlined in the memorandum such as smart metering and grid digitization. Enel and Rosseti will exchange know-how in the construction, modernization, and maintenance of grid infrastructure to improve and enhance its efficiency, reliability and safety, including the possible implementation of a joint pilot project for the creation of a smart cluster using Enel’s cuttingedge smart grid platform.

6 JULY

Electricity storage agreement with Amber Kinetics

On July 6, 2017, Enel signed a two-year agreement with Amber Kinetics, the US-based start-up born out of an initiative of professors and researchers from UC Berkeley, with the aim of assessing the start-up’s innovative flywheel storage technology, which is an electro-mechanical system consisting of a large rotating mass able to store energy. Under the terms of the agreement, Enel will study and test the technology and identify mass business applications for the integration of the technology with the grid. Upon completion of a three-month test phase involving two synchronized flywheel units at one of Amber Kinetics’ test sites in California, Enel will evaluate the possibility of utilizing the 40 kW/160 kWh model of the technology in a pilot project at one of its thermal power plants.

The 5,000 lb. (approximately 2,267 kg) steel flywheel system is charged by converting the electricity from the power plant to which is coupled or from a power grid into the kinetic energy of the spinning wheel, which can rotate for up to four hours on a single charge. At times of peak power demand, the flywheel turns a generator – automatically or through a control system – converting its kinetic energy back into electricity that is delivered to the grid.

10 JULY

Agreement to identify energy access start-ups in Africa

On July 10, 2017, Enel Green Power and the Swiss company Seedstars World signed a cooperation agreement establishing the Africa Energy Track challenge, a competition aimed at identifying innovative start-ups in the field of electricity access in Africa within the framework of the Seedstars World start-up competition. The project’s goal is to promote technology and entrepreneurship in Sub-Saharan rural areas by bringing innovative energy solutions focused on electric mobility, storage, distributed generation and energy efficiency, thereby helping to tackle the UN Sustainable Development Goals (SDGs), especially SDG7 – ensuring affordable and clean energy for all.

12 JULY

Agreement with Cisco for digitization and innovative services

On July 12, 2017, Enel and Cisco signed a memorandum of understanding for developing innovative digital solutions in the energy sector. The aim is to fully leverage the potential of telecommunications technology, IT security and the Internet of Things to create new services and a smart grid that is even more secure, intelligent and reliable to serve Italy’s needs. This goal can also be achieved thanks to a specialist training program enabling not only Enel employees but also numerous students and industry professionals to update their skills and acquire the necessary knowledge for managing, monitoring and protecting a grid in which digital technology and traditional electrical technology are ever more interconnected.

17 OCTOBER

Opening of Innovation Hub in Moscow

On October 17, 2017, at the Open Innovation Forum in Skolkovo, near Moscow, Enel launched its Innovation Hub in Russia.

Enel’s Russian Innovation Hub was established within the Skolkovo technology ecosystem and is aimed at identifying and developing partnerships with Russian start-ups, SMEs and other companies on a wide range of projects in different fields such as energy efficiency solutions, smart grids, renewables, Internet of Things (IoT) and big data analytics.

7 NOVEMBER

Memorandum of understanding with Italian State Railways

On November 7, 2017 Enel and the Italian State Railways signed a three-year memorandum of understanding to jointly develop innovative projects in the transportation and energy fields. The areas of interest include 3D printing, the efficient use of electricity, the sharing of innovation spaces and co-working and joint participation in national and international project financed by the Italian government and the European Union. The skills held by the two companies are perfectly complementary in the capacity for analysis and application of innovative solutions in the transportation and energy sectors, in line with market developments and opening the way to the generation of considerable synergies, including in the infrastructure area.

7 DECEMBER

Agreement with Volkswagen Italy

On December 7, 2017, Enel and Volkswagen Group Italia, distributor of the Audi brand, signed a memorandum of understanding for the integration of charging services in the offer for the new Audi e-tron, the brand’s first 100% electric car, and to promote and develop electric mobility in the country.

Thanks to this agreement, product offers will be designed to make life easier for individuals and companies who are considering the switch to electric. Individuals, professionals and small businesses will have the opportunity to combine one or more packages for the charging service, products and other services offered by Enel included in the purchase of the Audi e-tron directly from dealers and the sales network of Audi Italia.

28 DECEMBER

E-VIA FLEX-E mobility project

On December 28, 2017, the “E-VIA FLEX-E mobility in Italy, France and Spain” project was launched for the installation of 14 ultra-fast charging stations in Europe, coordinated by Enel and co-financed by the European Commission. The aim is to test a network that enables new electric vehicles with a range of more than 300 km to travel long distances and to contribute to the development and spread of e-cars in Europe.

The project, presented by Enel as coordinator, in collaboration with the utilities EDF, Enedis and Verbund, the car manufacturers Nissan and Groupe Renault as well as Ibil, a Spanish company specialized in charging services for electric vehicles, was selected by the European Commission in the Connecting Europe Facility Transport 2016 call, obtaining funding that will cover half of the investment required. The overall budget co-financed by the European Commission is about €6.9 million. Enel will invest €3.4 million in the project, which will also be co-financed by the Commission.

The installation of the ultra-fast charging stations (High Power Charging - HPC) will start by the end of 2018 at 14 sites: 8 in Italy, 4 in Spain and 2 in France. The charging stations will all be high power, ranging from 150 kW to 350 kW.

The network of ultra-fast charging stations of the E-VIA FLEX-E project will join that envisaged in the EVA+ (Electric Vehicles Arteries) project, also co-financed by the European Commission, which provides for the installation of 180 fast charging points (Fast Recharge Plus) in three years along Italian extra-urban corridors. The first 40 Fast stations have already been installed, making it possible to travel with an electric car along the Rome-Milan route, among others.

Organization

16 JUNE

Merger of Enel South America into Enel

On June 16, 2017, the plan for the merger of Enel South America into Enel was filed with the Company Register of Rome. The transaction, which was completed on November 16, 2017, is part of the Group’s corporate structure simplification process, one of the main pillars of Enel’s 2017-2019 Strategic Plan. In particular, the transaction will enable Enel to benefit from the direct management of the equity stakes in the two Latin-American sub-holdings Enel Américas and Enel Chile, thereby shortening the corporate chain of control.

As the merger is subject to a simplified procedure with no share swap, Enel will not increase its share capital nor assign shares to replace the equity interest held in Enel South America.

25 AUGUST

Corporate reorganization in Chile

On August 25, 2017, the Board of Directors of the subsidiary Enel Chile began analyzing a possible reorganization of the Enel Group’s shareholdings in Chile based on a nonbinding proposal formulated by Enel Chile and sent to Enel in July. The analysis began following examination by the Board of Directors of Enel Chile of a letter transmitted on the same date by Enel in which the latter expressed a favorable preliminary opinion on the possible reorganization./p>

This favorable assessment was based on the conclusion reached by Enel that the operation was consistent with a number of Enel’s strategic objectives, including the simplification of the ownership structure of the Group’s listed Chilean companies.

Following the analysis, on December 20, 2017, the Shareholders’ Meetings of the two companies approved, within the scope of their respective authority, the following phases of the operation, each of which is conditional on implementation of the other:

  • the integration in Enel Chile of the Chilean renewables assets held by Enel Green Power Latin America SA (“EGP Latin America”) through the merger by incorporation of the latter into Enel Chile, with the Extraordinary Shareholders’ Meeting of Enel Chile having approved a capital increase to serve the merger. The shareholders of Enel Chile who expressed their disagreement with the merger will have the right to withdraw pursuant to applicable regulations. The merger is conditional on the withdrawal of shareholders holding no more than 5% of share capital of Enel Chile. The merger was also approved by the Extraordinary Shareholders’ Meeting of EGP Latin America;
  • the launch by Enel Chile of a public tender offer (the “Offer”) for all of the shares of the subsidiary Enel Generación Chile held by minority shareholders, whose effectiveness is subject to the acquisition of a total number of shares that would enable Enel Chile to increase its holding in Enel Generación Chile to more than 75% of share capital from the current 60%. In accepting the Offer, Enel Generación Chile’s minority shareholders will commit to reinvest in newly issued Enel Chile shares part of the consideration they receive, as a capital increase of Enel Chile has been approved to serve the Offer;
  • the amendment of the bylaws of Enel Generación Chile with the aim to remove the limits on share ownership in the company, which currently do not allow any single shareholder to own more than 65% of the company’s share capital.

Acknowledgements

On September 7, 2017, it was announced that Enel had been ranked 20th in Fortune’s “Change the World” list, a ranking of the top 50 businesses in the world that had a positive social impact through activities that are part of their business strategy and operations. The Group is the only utility and the only Italian company to be included in the list. The list was created to promote the idea that capitalism should be celebrated for its power to do good. Fortune begins the process with an open call for nominations from business, academic, and non-profit organizations around the world in partnership with, among others, FSG, a non-profit social-impact consulting firm and the Shared Value Initiative, a global platform for organizations seeking business solutions to social challenges. A team of journalists from Fortune investigates each of the candidates independently.

On the same date, Enel was admitted to the Dow Jones Sustainability World Index (DJSI World) for the fourteenth year in a row. Enel’s Spanish subsidiary Endesa was also included. Enel and Endesa are two of the eight utilities admitted to the index at the global level.

Enel stood out for its performance in the Environmental dimension, scoring 100/100 in the Climate Strategy, Water- related Risks, Biodiversity and Environmental Reporting criteria. The Group also obtained the maximum score in Policy Influence, which measures transparency and disclosure on advocacy activities, and Materiality, which refers to the company’s ability to match its strategy with stakeholders’ expectations.

On October 20, 2017, Enel was included in the top 20 of Forbes World’s Best Employers List 2017, first among utilities at the global level and highest-rated among Italian companies. Every year Forbes compiles the list, which ranks the 500 best employers in the world, based on a survey of 36,000 global opinion leaders. During the ranking process of the World’s Best Employers List 2017, employees from the companies involved were asked to assess their own employer, by answering questions about whether they would recommend applying for a job with them to a friend, among other things.

Enel provides employees access to a range of tools to help them establish a good work-life balance: flexible hours, “banking” of working hours, part-time options and smart working. The Group has also implemented numerous programs to leverage ideas.

On October 24, 2017, Enel was admitted for the second year in a row to the Climate A List of the non-profit global environmental disclosure platform CDP (formerly the Carbon Disclosure Project), which comprises companies from around the world that have been identified as global leaders in the fight against climate change. CDP, an international non-profit organization for the promotion and dissemination of information on environmental issues, recognized Enel’s actions to cut emissions, mitigate climate risks and develop the low-carbon economy. The 2017 Climate A List comprises 112 global companies, selected out of more than 2,000 companies that participate in CDP’s climate change disclosure program. Inclusion in the Climate A List is based on a score which assesses a company’s awareness of climate change issues, management methods and progress towards action taken on climate change.

On November 28, 2017, Enel was confirmed in the December 2017 edition of the Euronext Vigeo - World 120 index, following its 2nd Half 2017 review. Twice a year the index lists the 120 most sustainable companies with the largest free-float market capitalization in Europe, North America and the Asia Pacific region. The company has also maintained is place in the regional Euronext Vigeo - Eurozone 120 and Europe 120 indices, which respectively list the 120 most sustainable companies with the largest free-float in the euro area and Europe. Enel has been included in all three of these indices since their creation five years ago.

The Euronext Vigeo Eiris indices recognize the efforts of prominent companies that make sustainable development a focal point of their business strategy. Vigeo Eiris compiles the indices by analyzing approximately 330 indicators for each company based on 38 criteria, including respect for the environment; human rights engagement and recognition of companies’ human capital; relations with stakeholders; corporate governance and business ethics; integrity in influencing policy and efforts to fight corruption; and the prevention of social and environmental dumping in the supply and subcontracting chain. Euronext Vigeo Eiris updates its criteria for the indices every six months, ensuring that the sustainability credentials of companies listed are in line with the most recent sector developments.