Acquisition of Demand Energy
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.
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,
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.
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.
Acquisition of an additional stake in e-distribut¸ie Muntenia and Enel Energie Muntenia
Acquisition of Tynemouth Energy Storage
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.
Award of wind capacity in Spain
Tax partnership agreement for Rock Creek wind farm in the United States
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.
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.
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.
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.
Acquisition of EnerNOC
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.
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.
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.
Enel wins renewable energy tender in Brazil
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.
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.
Tax partnership agreement for Thunder Ranch wind farm in the United States
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.
Agreement for the disposal of renewables plants in Mexico
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.
Disposal of Bayan Resources
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.
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
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.
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.
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.
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.
Capacity Storage Agreements in California
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.
Award of renewables capacity in Canada
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.
Award of renewables capacity in Brazil
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.
Award of renewables capacity in Argentina
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.
Renewable energy loan in Brazil
Issue of first Green Bond
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.
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.
Enel Finance International issues $5 billion bond
EIB loan for smart meters
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.
Repurchase of dollar-denominated bonds
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.
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.
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.
New revolving credit line
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.
Collaboration agreement with Saudi Electricity Company
Agreement with Dubai Electricity and Water Authority
Agreement with Aton Storage
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.
Enel invests in green start-ups 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.
Memorandum of understanding with Rosseti for the development of smart grids
Electricity storage agreement with Amber Kinetics
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.
Agreement to identify energy access start-ups in Africa
Agreement with Cisco for digitization and innovative services
Opening of Innovation Hub in Moscow
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.
Memorandum of understanding with Italian State Railways
Agreement with Volkswagen Italy
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.
E-VIA FLEX-E mobility project
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.
Merger of Enel South America into Enel
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.
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.
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.