Net efficient generation capacity

Operations

Net electricity generation

Millions of kWh    
 2017 2016Change
Thermal 25,727 26,268 (541) -2.1%
Hydroelectric 33,597 32,619 978 3.0%
Wind 3,661 2,451 1,210 49.4%
Other sources 1,642 827 815 98.5%
Total net generation 64,627 62,165 2,462 4.0%
- of which Argentina 14,825 13,124 1,701 13.0%
- of which Brazil 7,161 5,474 1,687 30.8%
- of which Chile 20,231 19,728 503 2.5%
- of which Colombia 14,766 14,952 (186) -1.2%
- of which Peru 7,493 8,698 (1,205) -13.9%
- of which other countries 151 189 (38) -20.1%

  • Net electricity generation in 2017 totaled 64,627 million kWh, an increase of 2,462 million kWh compared with 2016. This increase was mainly attributable to:
  • the increase in wind power generation in Brazil and Chile, especially after the entry of new plants into service;
  • the increase in hydroelectric generation, concentrated mainly in Chile, Brazil and Colombia;
  • greater solar power generation in Brazil and Chile, which also reflected the increase in net efficient capacity.

These factors were partially offset by a reduction in thermal generation owing to adverse weather conditions in the area compared with the year-earlier period, especially in Peru, which in April 2017 suffered from flooding along the coast caused by El Niño, leading to the shutdown of a number of plants.

Contribution to gross thermal generation

Millions of kWh            
  2017 2016 Change
Heavy fuel oil (S>0.25%) 723 2.7% 1,723 6.3% (1,000) -58.0%
Natural gas 21,669 81.2% 18,933 69.5% 2,736 14.5%
Coal 3,134 11.8% 3,970 14.6% (836) -21.1%
Other fuels 1,144 4.3% 2,628 9.6% (1,484) -56.5%
Total 26,670 100.0% 27,254 100.0% (584) -2.1%

Gross thermal production in 2017 totaled 26,670 million kWh, a decrease of 584 million kWh compared with the previous year. This was essentially connected to the decreased use of traditional fuels as a result of plant stoppages caused by the flooding mentioned above, only partly offset by increased use of natural gas, especially in Brazil and Argentina.

Net efficient generation capacity

MW   
                                   at Dec. 31, 2017 at Dec. 31, 2016Change
Thermal plants 7,773 7,729 44 0.6%
Hydroelectric plants 9,980 9,590 390 4.1%
Wind farms 1,362 1,092 270 24.7%
Other 1,429 504 925 -
Total net efficient capacity 20,544 18,915 1,629 8.6%
- of which Argentina 4,419 4,419 - -
- of which Brazil 2,975 1,621 1,354 83.5%
- of which Chile 7,475 7,434 41 0.6%
- of which Colombia 3,467 3,457 10 0.3%
- of which Peru 2,158 1,934 224 11.6%
- of which other countries 50 50 - -

Net efficient capacity amounted to 20,544 MW in 2017, an increase of 1,629 MW compared with the previous year, essentially due to the expansion of installed capacity thanks to Group investments.

More specifically, in addition to the increase in capacity associated with the acquisition of the concession for the Volta Grande hydroelectric plant in Brazil (380 MW), other plants entering service included the following: in Brazil, the Delfina (180 MW) and Cristalândia (90 MW) wind farms, the Ituverava (254 MW), Nova Olinda (292 MW), Bom Jesus da Lapa (80 MW) and Lapa (78 MW) photovoltaic plants and in Peru the Rubí photovoltaic plant (180 MW).

Electricity distribution and transport networks

 2017 2016Change
High-voltage lines at year end (km) 18,308 12,339 5,969 48.4%
Medium-voltage lines at year end (km) 350,376 159,961 190,415 -
Low-voltage lines at year end (km) 197,326 149,846 47,480 31.7%
Total electricity distribution network (km) 566,010 322,146 243,864 75.7%
Electricity transported on Enel’s distribution network (millions of kWh) (1) 90,655 78,525 12,130 15.4%
- of which Argentina 17,737 18,493 (756) -4.1%
- of which Brazil 34,876 22,809 12,067 52.9%
- of which Chile 16,318 15,809 509 3.2%
- of which Colombia 13,790 13,632 158 1.2%
- of which Peru 7,934 7,782 152 2.0%

(1) The figure for 2016 reflects a more accurate measurement of amounts transported.

Energy transported in 2017 came to 90,655 million kWh, an increase of 12,130 million kWh compared with 2016. The expansion in the network reflects the acquisition of Enel Distribuição Goiás, a transaction that has also affected volumes transported in Brazil.

Electricity sales

Millions of kWh    
        2017  2016Change
Electricity sold by Enel 74,672 63,090 11,582 18.4%
- of which Argentina 14,877 15,654 (777) -5.0%
- of which Brazil 30,497 19,128 11,369 59.4%
- of which Chile 13,232 13,067 165 1.3%
- of which Colombia 9,389 8,505 884 10.4%
- of which Peru 6,677 6,736 (59) -0.9%

Electricity sales in 2017 totaled 74,672 million kWh, increasing by 11,582 million kWh compared with the previous year.

Performance

Millions of euro
 20172016 2017-2016
Revenue 13,154 10,768 2,386 22.2%
Gross operating margin 4,204 3,556 648 18.2%
Operating income 2,970 2,163 807 37.3%
Capital expenditure 3,002 3,069 (67) -2.2%

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

Revenue

Millions of euro    
 2017 2016Change
Argentina 1,393 1,163 230 19.8%
Brazil 4,763 2,601 2,162 83.1%
Chile 3,667 3,703 (36) -1.0%
Colombia 2,116 2,054 62 3.0%
Peru 1,202 1,236 (34) -2.8%
Other countries 13 11 2 18.2%
Total 13,154 10,768 2,386 22.2%

Revenue for 2017 posted an increase of €2,386 million due mainly to:

  • an increase of €2,162 million in revenue in Brazil, mainly due to the change in the scope of consolidation as a result of the acquisition of Enel Distribuição Goiás on February 14, 2017 (€1,359 million), the recognition of revenue arising from the sectoral assets and liabilities (CVA) of the distribution companies, higher revenue owing to greater volumes generated by the Cachoeira Dourada hydroelectric plants and the increase in revenue as a result of the strengthening of the Brazilian real against the euro (€307 million);
  • an increase of €230 million in revenue in Argentina, essentially due to increased average sales prices as a result of the rate reform introduced by the government in early 2017, only partly offset by the highly negative exchange rate effects of the depreciation of the Argentine peso against the euro (€204 million);
  • a €62 million increase in revenue in Colombia, owing mainly to the increase in average prices and volumes sold and to the positive trend in exchange rates due to the appreciation of the Colombian peso against the euro (€25 million);
  • a €36 million decrease in revenue in Chile, essentially owing to the gain on the sale of 20% of GNL Quintero in 2016 (€173 million) and to the reduction in average prices on distribution and generation. These effects were only partly offset by the gain of €143 million on the sale of Electrogas in the 1st Quarter of 2017 and the positive trend in exchange rates (€71 million);
  • a €34 million decrease in revenue in Peru, due to the effect of the decline in average prices and volumes sold, partly reflecting the impact of the floods that hit the country in 2017, only partly offset by the impact of exchange rates (€17 million).

Gross operating margin

Millions of euro    
 2017 2016Change
Argentina 287 276 11 4.0%
Brazil 1,008 669 339 50.7%
Chile 1,359 1,204 155 12.9%
Colombia 1,061 980 81 8.3%
Peru 480 419 61 14.6%
Other countries 9 8 1 12.5%
Total 4,204 3,556 648 18.2%

The gross operating margin amounted to €4,204 million, an increase of €648 million (+18.2%) compared with 2016, reflecting:

  • an increase of €339 million in the gross operating margin in Brazil, which reflects the change in the scope of consolidation with the entry of Enel Distribuição Goiás (€128 million), the positive exchange rate effect (€65 million) and the greater margins posted by distribution companies;
  • an increase of €155 million in the gross operating margin in Chile as a result of the loss of €166 million on a number of water use concessions recognized in 2016 following the abandonment of five hydroelectric projects (including Puelo and Futaleufú), positive exchange rate developments (€25 million) and a €27 million decrease in capital gains from the disposal of equity investments between the two periods compared, as discussed under revenue;
  • an increase of €81 million in the margin in Colombia due essentially to the increase in prices and quantities sold and the positive trend in exchange rates;
  • a €61 million increase in the gross operating margin in Peru, mainly associated with the recognition in 2016 of the loss from the abandonment of the Curibamba and Marañon hydroelectric projects (€30 million) and provisions for charges connected with not having respected the terms of the contract to supply of electricity for Electroperu (€37 million);
  • an €11 million increase in gross operating margin in Argentina owing to differences in regulatory mechanisms compared with the previous year, only partly offset by the negative trend in exchange rates (€42 million).

Operating income

Millions of euro        
   2017 2016Change
Argentina 231 208 23 11.1%
Brazil 483 250 233 93.2%
Chile 1,027 610 417 68.4%
Colombia 890 801 89 11.1%
Peru 333 290 43 14.8%
Other countries 6 4 2 50.0%
Total 2,970 2,163 807 37.3%

Operating income in 2017 came to €2,970 million, including €1,234 million in depreciation, amortization and impairment losses (€1,393 million in 2016), an increase of €807 million. This change reflects the €159 million decrease in depreciation, amortization and impairment losses, the change in the scope of consolidation with the acquisition of Enel Distribuição Goiás and the positive change in exchange rates in all the area countries, except Argentina.

Capital expenditure

Millions of euro        
     2017 2016Change
Argentina 259 232 27 11.6%
Brazil 1,475 1,434 41 2.9%
Chile 543 878 (335) -38.2%
Colombia 309 266 43 16.2%
Peru 416 258 158 61.2%
Other countries - 1 (1) -
Total 3,002 3,069 (67) -2.2%

Capital expenditure came to €3,002 million, down €67 million compared with the previous year. In particular, capital expenditure in 2017 concerned wind and solar plants in Peru and work on the distribution network in Brazil. There was a decline in capital expenditure in the renewable energy in Chile to complete and begin operation of plants in 2016.