III Biregional Forum WEC N.A. and L.A.C.How to Satisfy the Energy Demand of the Americas in a World with Greater Environmental and Financial ConstraintsWind and Solar Energy

Cancún, December 5th, 2012Carlo Zorzoli – Head of Business Development Latin AmericaEnel Green Power

Enel Green PowerInternational footprint – December 31st, 2011

EGP presence in 16 countries

Operation 3,583 MW

Generation12,584 GWh

Construction 386 MW

Operation 1,010 MW

Generation 2,921 GWh

Construction 681 MW

Operation 2,486 MW

Generation 6,975 GWh

Construction 846 MW

Operation 7,079 MW

Generation 22,480 GWh

Construction 1,913 MW

1

2,540 MW Hydro

3,541 MW Wind

769 MW Geothermal (*)

101 MW Solar

128 MW Other

Installed capacity

(*) Not including strategic participation in El Salvador geothermal generaioncompany LaGeoNo (204 MW installed capacity)

Production by technology

FY 2011

Total = 22.48 TWh

3%25%

45%

27%

Uso Confidencial

Use: Confidential

Total EGP installed capacity: 827 MW

Operation

In execution

Mexico

126 MW

70 MW

300 MWOperation

Panama

Operation

In execution

Brazil

93 MW

90 MW

Operation

In execution

Chile

90 MW

90 MW

Operation

In execution

Costa Rica

55 MW

50 MW

Operation 163 MW

Guatemala

2

• El Salvador – strategic participation in LaGeo (204 MW geothermal installedcapacity)

• Colombia – Business Development• Perú – Business Development

Enel Green PowerLatin America footprint – June 30th, 2012

Use: Confidential

Growth in renewables: 2011 (GW)1

31. 2011 preliminary figures. Sources: EPIA, GWEC, EWEA, SEIA, EER (2011), WEO 2011, BNEF

1,313

1,421

2010 2011

Global: +8%

240 252

2010 2011

North America: +5%

169 177

2010 2011

Latin America: +5%

429 467

2010 2011

Europe: +9%

475 525

2010 2011

Rest of World: +10%

Use: Confidential

5.0%

Min Max

7% 16%

7% 8%

5% 9%

4% 9%

2% 7%

Expected Growth

CAGR ‘11-’20

8.7%

2020 Max

110

1,000

1,030

550

330

(GW)

3,020

2020 Min

53

921

655

371

207

(GW)

~2,206

Installed base

27+2%

513+11%

460+10%

252+6%

173+3%

2011 (GW)

~1,4255.0%

Min Max

13% 24%

7% 11%

10% 15%

2% 2%

5% 24%

8.7%

Investments

~113

~2

~65

~58

~13

2011 (€bn)

~€250bn+112

‘10-11 (GW) %

+31 78%

+0.2 2%

+41 21%

+29 3%

+11 17%

Delta capacity

8.5%

Installed base

~71

~11

~238

~1,034

~71

2011 (GW)

~1,425

Installed base

Source: EPIA, GWEC, EER (2011); WEO 2011 New Policies scenario (2020 min); industry reports/McKinsey (2020 max); BNEF, EGP estimatesNote: Investments estimated based on BNEF figures and assuming an fx of 1.3 €/$. Large Hydro investments estimated assuming 29GW of new installations and 2.0M€/MW capex.

Renewable energy investments: a growing industryExpected worldwide growth

TOTAL

Solar

Geothermal

Wind

Hydro

Biomass

Technology

TOTAL

Africa

Asia

Europe

North America

Latin America

Area

By technology By geography

Expected Growth

CAGR 2011-20

~40

~11

~197

~1,005

~60

2010 (GW)

~1,313

• All renewable technologies and regions confirm their strong potential• Investments in distributed generation accounted for approx. 25% of the total • During 2011, total R&D investments amounted to €20bn (€10bn from corporate and €10bn from government)

Installed base

26

461

419

239

168

2010 (GW)

~1,313

5

The energy “trilemma”

Security of supply (independence)

Renewablegeneration

1. No or limitedenvironmental impact, CO2 free

2. Generation costbasically linked tocapital investmentrecovery (exceptbiomass)

3. Domestic by definition(biomass should belocally sourced)

Technology cost reduction - Wind

Note: wind plant cost estimation is based on a standard onshore 50 MW plant, equipped with 2 MW wind turbines (HH=80m, D=90m)Source: McKinsey, May 2012; BNEF, Wind turbine price index, July 2012.

WTG capitalcost

reduction

Innovation (materials, control

systems)

Supply chain cost improvements

Competition

Cost estimation – Wind plant 2012-2022 (€/W)

1.2

1.1

0.9

0.9

0.7

0.5

0.8

1.1

1.4

2012 2017 2022

Base Case Low Case

Economies of scale

Technology cost reduction - PV

Note: cost estimates refer to c-si PV modulesSource: McKinsey, May 2012; Photon Consulting, The true cost of solar power, July 2012; PV Insight, Sept 2012

PV modules cost

reduction

Economies of scale

Throughput efficiency

Innovation (materials, efficiency)

Competition

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan 20121110092008

Cost estimation - PV plant 2012-2022 (€/W)

1.4

1.2

1.0

1.0

0.8

0.5

0.8

1.1

1.4

1.7

2012 2017 2022

Base Case Low Case

PV modules spot market price ($/W)

Wind energy cost – Recent data

Brazil – 2011 A-3 tender

Brazil – 2011 A-5 tender (*)

Mexico – 2012 Oaxaca wind tender (Sureste I – Phase II)

020406080

100120140160180200

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

Expected CFEtariff(USD/MWh)

CFE Bid offer(USD/MWh)

0 BRL/MWh

20 BRL/MWh

40 BRL/MWh

60 BRL/MWh

80 BRL/MWh

100 BRL/MWh

120 BRL/MWh

2011 A-3 2011 A-5

Natural Gas

Hydro

Wind

(*) mainly large hydro projects expansion

Abundance of resource

• Hydro: basicallyexceptional resource in every country

• Wind: excellentresource in SouthernMexico (Oaxaca), Costa Rica/Nicaragua, Brazil Northeast, Southern Tip, Patagonia

• Geo: Pacifc/Andes

• Solar: NorthernMexico, BrazilNortheast, Atacama desert, Peru

Complementarity of resource

• Wind, and solar as well, show very importantcomplementarity withdominant hydro generation

• Adding more hydro to thesystem in order to securesupply increases theexposure of countries toNiño effects

• Some countries (e.g. Brazil, Costa Rica) are insertingsignificant wind generationas a natural hedge for theirhydro exposure

Hydro Flows x Wind Generation

11

N⁰ de Turbinas

14 61 138 > 250

Praz

o de

Var

iaçã

o

1 Segundo Media 0,4% 0,2% 0,1% 0,1%1 Segundo Std 0,5% 0,3% 0,2% 0,1%1 Minuto Media 1,2% 0,8% 0,5% 0,3%1 Minuto Std 2,1% 1,3% 0,8% 0,6%10 Minutos Media 3,1% 2,1% 2,2% 1,5%10 Minutos Std 5,2% 3,5% 3,7% 2,7%1 Hora Media 7,0% 4,7% 6,4% 5,3%1 Hora Std 10,7% 7,5% 9,7% 7,9%

Germany 2005- Geo and Temporal attenuation

Distancia (km)

media 12h

media 4h

media 2h

media 1hmedia 30min

media 5min

0,2

0,6

0,8

0,4

100 300 500400200

Geographical considerations:

Greater the considered area lower the relative variation: local

phenomenon filtering

In the graphic, the dispersal decreases with area considered

Temporal considerations:

Lower the forecast time, lower the relative variations

In the graphic, the dispersal decreases with the term considered

The variability impacts of Wind Energy decreases with short term forecast and geographical aggregation.

Geo-Temporal attenuation:

Maximum geographical attenuation at terms around 1 to 10

minutes.

VariabilityThe wind example

ACTUAL CAPABILITIES

Supporting primary frequency control - TechnologyStorage - Technology, Market

FUTURE

Be Visible

Provide operational data to SO

Keep Going

Operate in wide range of voltage and frequencyRide through system faults

Reactive Power Control

Power factor to stay in tight rangeOr controllable over wide rangeOr controllable for voltage support

Active Power Control

(Where requested and paid)

Cap, deltaRamp Rate Limits

The best use of intermittent resources depends on the technology and regulatory development.

Balancing – Don’t ask what the grid can do for you, ask what you can do for the grid

2008 vs. 2015 (estimated)

Wind: European Current and Expectd Penetration

14

Renewable Energy Time to Market (years)

Indicative

Conclusions

• Renewable energy is a key element of a balanced primary energy mix at affordable costs and improving energy security and independence

• While wind is already in grid parity given the right conditions, solar PV willfollow next if current cost reduction trends are confirmed

• Massive renewable (especially wind) penetration in electrical systems has already been achieved and is especially viable in hydro dominatedsystems that are very common in Latin America

• Technology improvement is leading renewable energies to performancillary services similar to those of traditional, thus improving theircapability to achieve even larger penetration

• Short time to market and modular characteristic allows wind and solar toadapt very well to changing energy demand scenarios

Carlo ZorzoliHead of Business Development – Latin America

Enel Green Power S.p.A.carlo.zorzoli@enel.com

Enel Green Power

Thank You!