OPEN POWER FOR
A BRIGHTER FUTURE.
WE EMPOWER SUSTAINABLE PROGRESS.
INTEGRATED ANNUAL
REPORT 2020
OPEN POWER
FOR A BRIGHTER
FUTURE.
R
E
T
H
G
R
B
I
INTEGRATED
ANNUAL
REPORT
2020
ENEL IS OPEN POWER
VI
SI
ON
Open Power
to tackle some
of the world’s
biggest challenges.
POS
ITI
ON
ING
Open
Power
PUR
PO
SE
MI
SSI
ON
> Open access to electricity for more people.
> Open the world of energy to new technology.
> Open up to new uses of energy.
> Open up to new ways of managing energy for people.
> Open up to new partnerships.
2
OF
PRI
NCI
PLES
CO
NDU
CT
Open power
for a brighter
future.
We empower
sustainable
progress.
> Make decisions in daily activities
and take responsibility for them.
> Share information, being willing to collaborate
and open to the contribution of others.
> Follow through with commitments, pursuing
activities with determination and passion.
> Change priorities rapidly if the situation evolves.
> Get results by aiming for excellence.
> Adopt and promote safe behavior and move
pro-actively to improve conditions for health,
safety and well-being.
> Work for the integration of all, recognizing
and leveraging individual diversity (culture, gender,
age, disabilities, personality etc.).
> Work focusing on satisfying customers
and/or co-workers, acting effectively and rapidly.
> Propose new solution and do not give up
when faced with obstacles or failure.
> Recognize merit in co-workers and give
feedback that can improve their contribution.
VA
LU
ES
> Trust
> Proactivity
> Responsibility
> Innovation
Integrated Annual Report 2020 Michele
Crisostomo
Chairman of the Board
of Directors
Francesco
Starace
Chief Executive Officer
and General Manager
Letter to
shareholders and
other stakeholders
Dear shareholders and stakeholders,
Our sustainable and fully integrated business model has allowed us to maximize
END USERS
shared value with all our stakeholders, even during a year characterized by the
global recession triggered by the COVID-19 pandemic, confirming our leading
role in the energy transition.
We are the largest private renewable energy operator in the world, with 49 GW
of managed capacity, and the largest private electricity distribution company
globally, with 74 million end users connected to the world’s most advanced digi-
talized grids. We manage the largest customer base in the world among private
companies, with approximately 70 million customers.
74
million
MANAGED
RENEWABLES
CAPACITY
49
GW
Our strategy of basing all our business on digital platforms, together with industrial leadership, allows us to optimally seize
opportunities arising from the energy transition now under way around the globe.
Our solid financial and sustainability performance in recent years has enhanced investor confidence in us. This is demon-
strated by the 17% increase in the Enel stock price during the year, outperforming both the sector index (EURO STOXX Uti-
lities: +10%) and the general Italian index (FTSE-MIB: -5%).
Enel’s leadership in sustainability is also confirmed worldwide by the Group’s presence in a number of important sustainability
ratings, indices and rankings, including the AAA rating from MSCI and confirmation of our presence in the MSCI ESG Leaders
Indexes, the Dow Jones World and Europe sustainability indices, the CDP Climate “A” List, the Vigeo Eiris rating in which the
Group is ranked first in all sectors and the Euronext Vigeo Eiris 120 index, the ESG rating of Refinitiv and the FTSE4Good index,
being the sector leader in both cases. Enel is also present in the three main indices that monitor corporate gender diversity
performance: Bloomberg Gender Equality Index, Refinitiv Top 100 Diversity and Inclusion Index, and Equileap Gender Equality
Top 100 ranking.
In 2020 we confirmed ourselves as the leading European utility by market capitalization and the second in the world.
The macroeconomic environment
The global economic environment in 2020 was characterized by an unprecedented recession, caused by the COVID-19
pandemic. The health crisis and the resulting restrictions have had a negative impact on supply and demand, leading to a
contraction in world GDP estimated at around 3.7% in 2020.
The waves of the pandemic had a strong impact on the euro area, with GDP contracting by about 6.8% during the year, and
on the United States, where the contraction in GDP was 3.5%.
In response to the recession, the European Central Bank has pursued an expansionary monetary policy, keeping its main
interest rates at very low levels through the Pandemic Emergency Purchase Program. For its part, the European Commission
is using the Next Generation EU program to channel €750 billion, divided into loans and subsidies, to the Member States.
The US government has also adopted major expansionary fiscal policies to support families and firms, and the Fed has im-
plemented an unlimited public and private debt purchase program.
In Latin America, economic developments were highly influenced by the pandemic and the consequent responses of the indi-
vidual countries, which varied considerably and in some cases exacerbated existing structural problems. The Chilean economy
was among the most resilient thanks to its considerable openness, with exports driven by the Chinese recovery (GDP -6.1%),
while in Brazil economic activity in 2020 was supported by a broad fiscal stimulus program in support of families (GDP -4.4%).
During 2020, the oil market was characterized by sharp volatility, with oil prices collapsing during the 1st Quarter due to
weak demand, followed by a sharp rise in the 2nd Half of the year thanks to the reopening of the main world economies.
The gas market also experienced strong volatility during 2020. During the 1st Half of the year, the benchmarks of all the main
European hubs contracted by almost 50% compared with the same period of 2019, while prices in the last quarter returned
to the average levels seen in 2019.
The price of CO2 displayed excellent resilience. Recent statements by the European Commission about the central role of
the ETS in achieving decarbonization and climate neutrality goals have supported the market, leaving prices on a gradually
rising path towards long-term equilibrium.
Integrated Annual Report 2020 Performance
Performance achieved in 2020, which was also the fruit of our business model, based on the central role of digitalization
and platforms, key tools in dealing with the pandemic emergency, underscored the resilience of the Group from both an
operational and financial point of view. Despite the economic crisis, the Group continued its growth path by continuing to
generate value.
The 2020 financial year closed with ordinary EBITDA of €17.9 billion, in line with last year’s results. Ordinary profit, on which
the dividend is calculated, reached €5.2 billion, up 9% compared with the previous year. The dividend for 2020 amounts to
about €0.36 per share, up 8% compared with 2019. The FFO/net debt ratio, an indicator of financial strength, reached 25%
at the end of the year. Net debt is equal to €45.4 billion, lower than the forecasts previously provided to the market.
Main developments
As in previous years, Enel reached a new record for renewables generation capacity in 2020, adding 3,106 MW of new re-
newables capacity globally, while at the same time increasing our pipeline of future renewables projects, reaching 180 GW
worldwide at the end of the year.
The consolidated installed renewables capacity reached 45 GW, again exceeding thermal generation capacity, which fell to
about 36 GW (-3.3 GW compared with 2019). Furthermore, 2020 was the first year in which consolidated renewable genera-
tion also surpassed thermal output, with 105.4 TWh. This is an important step in the Group’s journey towards a cleaner and
more sustainable energy mix and an acceleration of the decarbonization process, which was also underscored by the rapid
decline in specific CO2 emissions, which reached 214 gCO2eq/kWh, a decrease of 28% compared with 2019.
Thanks to our investments in grids and the simultaneous focus on the digitization of systems and processes, we continued
to improve the quality of the service offered to our customers, reducing the average per-customer duration of outages
by 12% compared with the previous year, registering a global SAIDI of 258.9 minutes. Furthermore, with the Grid Blue Sky
project, we are completely overhauling the operating model of the distribution grids. The goal is to create a single global
operating platform by 2022, which will enable the efficient integrated management of our grids in all the geographical areas
in which we operate, supporting the sustainable development of the asset portfolio in order to maximize value. The benefits
associated with the project are manifold. These include increasing the value of our services for customers, the rapid im-
plementation of innovative solutions, an increase in the efficiency of our processes and the creation of shared value in the
communities in which we operate.
During 2020, the development of public and private charging infrastructure for electric vehicles continued and, thanks in
part to interoperability agreements, we have exceeded 185,000 charging points worldwide. The Group has also supported
the electrification of public transport thanks to the supply of charging stations for electric buses, with Enel X closing 2020
with over 900 electric buses managed globally. We were once again the leader in terms of the number of lighting points
operated, at 2.8 million worldwide. We also confirmed our ability to assist industrial customers in using energy more effi-
ciently, bringing active demand management capacity to 6.0 GW and total battery capacity installed at those customers or
directly connected with distribution and transmission grids to 123 MW.
With regard to the digital transformation, the decision to migrate 100% of applications to the cloud has enabled Enel to
guarantee the continuity of supply of essential services even during the pandemic. The digitalization of plants and grids has
enabled remote operation of our infrastructure, significantly reducing the number of interventions in the field. The comple-
te transition to the cloud has also facilitated the adoption of continuous flexible working measures for all employees whose
activities can be managed remotely. Between April and December 2020, approximately 53% of personnel worked remotely,
supported by the robustness and resilience of the Group’s digital infrastructures and the enhanced IT equipment swiftly
made available to those without appropriate devices, enabling a massive transition to working from home.
Among extraordinary corporate transactions, in December 2020, the Extraordinary Shareholders’ Meeting of Enel Américas
approved the merger of EGP Américas into Enel Américas, as well as the removal of the limits in that company’s articles of
association that currently do not permit a single shareholder to own more than 65% of shares with voting rights. In 2020, as
part of the restructuring of the joint venture with General Electric, Enel Green Power North America closed the sale of 255
MW of hydroelectric capacity and 27 MW of wind capacity in Canada and 25 MW of hydroelectric capacity in the United
States.
From a financial point of view, on September 1, 2020, an equity-accounted perpetual hybrid bond of €600 million was is-
sued, the first of its kind for an Italian industrial group. At the same time, Enel also launched a voluntary purchase offer for
hybrid bonds maturing in 2076 with a nominal value of £250 million.
In October, after the issue in 2019 of the world’s first general-purpose bonds linked to the United Nations Sustainable
Development Goals (SDGs), Enel successfully launched a £500 million “Sustainability-Linked Bond”, the first of its kind in
that currency. The issue is linked to the achievement of a target for the percentage of consolidated installed renewables
capacity, in line with the commitment to achieve the United Nations SDGs. Thanks to its success on the market, Enel has
obtained savings of about 15 basis points compared with financial instruments with the same characteristics but not linked
to the pursuit of the SDGs.
Strategy and forecasts for 2021-2023
The energy transition, driven by the fight against climate change and facilitated by decarbonization, the electrification of
energy consumption and digitalization, is revolutionizing not only the energy sector but all areas of the economy, in a world
in which the role of electricity will be increasingly significant.
In this context, it is essential to extend the time horizon of our strategic vision to the medium and long term. Guided by this
intuition, in November 2020 the Group presented the new Strategic Plan with a vision that reaches 2030, placing the acce-
leration of the energy transition at the center of the strategy, which, in enabling sustainable and profitable growth, offers
the concrete prospect of simultaneously generating significant shared value for all stakeholders and a satisfactory return
for shareholders.
With the new Strategic Plan, the Group has indicated its direction for the next ten years, mobilizing approximately €190
billion between direct and third-party investments, in order to achieve our objectives in a decade that promises to be full of
opportunities, to be seized through two complementary business models: the traditional Ownership model, based on direct
investments to support long-term sustainable development, in which platforms contribute to business growth and value
maximization; and a new Stewardship model, in which the use of platforms enables new services, products and know-how
by catalyzing third-party investments.
The 2021-2023 Strategic Plan is ideally placed as the first step in a growth path that spans the entire coming decade. The
Group’s ambitions are reflected in a marked increase in investments, both direct and indirect, to enable the acceleration of
trends in decarbonization and electrification.
In the 2021-2023 period, the Group expects to directly invest around €40 billion, of which €38 billion through the Ownership
model, mainly in expanding and upgrading grids and developing renewables, and around €2 billion through the Stewardship
model, while mobilizing an additional €8 billion in investment by third parties.
These investments will allow the Group to increase the renewables capacity it manages from around 49 GW in 2020 to
around 68 GW at the end of 2023, with renewables capacity reaching around 70% of the total by the end of 2023.
The Group also plans to invest in improving the service quality and resilience of our distribution grids, in new connections
and digitalization. The acceleration of investment will grow the Group’s regulatory asset base (RAB) by 14% to about €48
billion in 2023.
The remainder of the investments envisaged in the plan will be allocated to the retail businesses and Enel X, to support the
electrification of consumption by offering new “beyond commodity” services through platforms, generating an increase in
the value of B2C and B2B customers of 30% and 45%, respectively, and supporting the decarbonization of cities. In support
of these objectives, by 2023 the Group plans to achieve some 780,000 charging points, 10.6 GW of active demand mana-
gement capacity and 5,500 electric buses globally.
About 90% of 2021-2023 consolidated investment is in line with the United Nations SDGs and it is estimated that between
80% and 90% of investments will be aligned with the criteria of the European taxonomy, given their substantial contribution
to climate change mitigation.
This testifies to how sustainable development represents the intrinsic basis of our strategy, helping to direct all our actions
towards increasingly sustainable and consequently less risky choices and approaches.
The Group’s strategy is aligned with a target of reducing direct CO2 emissions to 82 gCO2eq/kWh by 2030, down 80% com-
pared with 2017 in accordance with a scenario that limits global warming to 1.5 °C compared with pre-industrial levels, as
certified by the Science Based Targets initiative (SBTi), and achieving carbon neutrality by 2050.
As for performance, the Group expects that ordinary EBITDA will reach between €20.7 and 21.3 billion by 2023, with a CAGR
of 5%-6% over the results achieved in 2020. At the same time, ordinary profit is expected to reach between €6.5 and 6.7 bil-
lion, with a CAGR of between 8% and 9%. The intrinsic sustainability of our business model, combined with a determination
to achieve strategic objectives, has enabled Enel to establish a guaranteed fixed dividend per share that will increase over
the Plan period to €0.43 per share in 2023.
Integrated Annual Report 2020 LETTER TO SHAREHOLDERS AND OTHER STAKEHOLDERS 4
BASIS OF PRESENTATION 10
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ENEL
GROUP
Highlights
GOVERNANCE
STRATEGY & RISK
MANAGEMENT
18
Enel shareholders
34
Group strategy
World Economic
Forum (WEF)
Value creation
and the business model
22
24
Corporate Boards
35
Reference scenario
The Enel corporate
governance system
36
> Macroeconomic
environment
Enel organizational model
42
> The energy industry
European Union
taxonomy
28
Incentive system
Enel around the world
30
Values and pillars
of corporate ethics
44
45
> Climate change
and long-term
scenarios
> Assessment of the risks
and opportunities
connected with
the Strategic Plan
Risk management
50
62
62
64
67
76
77
To facilitate the navigation
hypertext links have been
included into the document.
Go to...
Statement of Cash flows
Income Statement
Statement of Changes in Equity
Statement of financial position
Statement of Comprehensive Income
PERFORMANCE
& METRICS
OUTLOOK
Outlook
216
Definition of performance
indicators
108
Performance of the Group 110
Value created and
distributed to stakeholders 128
Analysis of the Group’s
financial position
and financial structure
129
Results by Business Line
136
Enel shares
Innovation
and digitalization
People centricity
173
176
178
Significant events in 2020 189
Regulatory and rate issues 199
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CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated financial
statements
Notes to the financial
statements
Declaration of the Chief
Executive Officer
and the officer in charge
Reports
Report of the Board
of Statutory Auditors
to the Shareholders’
Meeting of Enel SpA
Independent auditors’
report
Attachments
224
231
397
398
398
414
421
Subsidiaries, associates
and other significant equity
investments of the
Enel Group at December
31, 2020
421
Integrated Annual Report 2020
Basis of Presentation
Enel’s approach to corporate reporting
The Enel Group has drawn inspiration from the “Core&Mo-
re” reporting approach, designing its own corporate repor-
ting system at the service of stakeholders in a connected,
logical and structured manner and developing its own con-
cept for presenting economic, social, environmental and
The Integrated Annual Report of the Enel Group, consisting
governance information, in accordance with specific regu-
of the Report on Operations inspired by integrated thinking
lations, recommendations and international best practices.
and the consolidated financial statements prepared in ac-
This “Core Report” seeks to provide a holistic view of the
cordance with the IFRS/IAS international accounting stan-
Group, its sustainable and integrated business model and
dards, represents the “core” document of the Enel Group’s
the related value creation process, including the qualitati-
integrated corporate reporting system, based on the tran-
ve and quantitative financial and non-financial information
sparency, effectiveness and accountability of information.
considered most relevant on the basis of a materiality asses-
The objective of the Enel’s Integrated Annual Report is to
sment that also considers the expectations of stakeholders.
describe its strategic thinking, summarized in the equation
The “More Reports”, on the other hand, include more de-
“sustainability = value”, and to present its results and the me-
tailed and additional information, partly in compliance with
dium- and long-term outlook for a sustainable and integra-
specific regulations, than that provided in the Core Report
ted business model that in recent years has fostered the cre-
while being cross referenced to the latter.
ation of value in the context of the energy transition.
1010
Corporate reporting framework
The CORE&MORE approach of the Enel Group
REPORT AND FINANCIAL
STATEMENTS OF ENEL SPA
This is prepared in conformity with
Article 9, paragraph 3, of Legislative
Decree 38 of February 28, 2005
SUSTAINABILITY
REPORT
This includes the Consolidated
Non-Financial Statement prepared
pursuant to Legislative Decree 254/2016
and presents Enel’s sustainable business
model for creating value for all
stakeholders and contributing to
achievement of the 17 Sustainable
Development Goals of the United Nations
INTEGRATED
ANNUAL
REPORT
REPORT ON REMUNERATION
POLICY
This describes the Enel remuneration
system, as provided for by Article 123-ter
of the Consolidated Law on Financial
Intermediation
REPORT ON CORPORATE
GOVERNANCE AND THE
OWNERSHIP STRUCTURE
This describes the Enel corporate
governance system pursuant to Article
123-bis of the Consolidated Law on
Financial Intermediation and Article
144-decies of the CONSOB Issuers
Regulation
11
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and materiality analysis
Group and for the stakeholders (material issues), and to
verify the “alignment” or “misalignment” between exter-
nal expectations and internal importance. The result of this
As an expression of integrated thinking, the Integrated An-
analysis is represented in the Group’s priority matrix (or
nual Report seeks to represent the capacity of the business
materiality matrix), which, in giving a comprehensive view
model to create value for stakeholders in the short, medium
of all stakeholders, provides complete sustainability disclo-
and long term, ensuring the connectivity of the information
sure that incorporates the positive and negative impacts
it contains.
on society, the environment and the economy, and there-
The Group maintains ongoing relationships with all sta-
fore the Group’s contribution to sustainable development,
keholders in order to understand and meet their reporting
as illustrated in the Sustainability Report.
needs, taking account of the importance of the impact of
For the purposes of the Integrated Annual Report, the is-
the Group’s business model for all interests involved, with a
sues that have a direct impact on the creation of entrepre-
view to creating shared value.
neurial value were identified, applying a filter to so-called
The financial and non-financial information presented wi-
primary users, i.e. the “financial community” stakeholders.
thin the various documents of the corporate reporting sy-
(1) The analysis identified the following three priority issues:
stem are selected based on their materiality determined
› ecosystems and platforms;
on the basis of specific frameworks, methodologies and
› sound governance and transparent conduct;
assessments.
› decarbonization of the energy mix.
The following represent the key principles underpinning
the preparation of the Report on Operations, with the ba-
In addition to the concept of materiality, the qualitative and
sis of preparation of the consolidated financial statements
quantitative financial and non-financial information repor-
being discussed in the section “Form and content of the
ted in the Report on Operations have been prepared and
financial statements”.
presented in such a way as to ensure their completeness,
The Report on Operations includes financial and non-fi-
accuracy, neutrality and comprehensibility.
nancial information selected on the basis of a materiality
The information contained in the Report on Operations is
analysis performed in accordance with the requirements
also consistent with the previous year, unless otherwise in-
set out in Practice Statement 2 “Making Materiality Judg-
dicated.
ments”, issued by the International Accounting Standards
Accordingly, the Group applies the same methodologies
Board (IASB), with specific consideration of the United
from year to year, unless otherwise specified, in complian-
Nations Sustainable Development Goals (SDGs) (i.e. Affor-
ce with international best practices for integrated reporting
dable and Clean Energy (SDG 7); Industry, Innovation and
and non-financial reporting.
Infrastructure (SDG 9); Sustainable Cities and Communities
For the purposes of preparing non-financial information,
(SDG 11) and Climate Action (SDG 13)) and on the activities
especially quantitative information, the Group mainly ap-
implemented to contribute to their achievement in order
plies the provisions of the Global Reporting Initiative (GRI)
to meet the expectations of the main stakeholders in the
Standard, in line with the Sustainability Report, and the
Integrated Annual Report.
“Aspects” of the GRI supplement dedicated to the Electric
The Enel Group also performs the materiality analysis in ac-
Utilities sector (“Electric Utilities Sector Disclosures”). Con-
cordance with the Sustainability Report.
sideration was also given to the indicators proposed in the
As part of the analysis, the main stakeholders of the Group
white paper “Towards Common Metrics and Consistent
are identified and assessed on the basis of their relevance
Reporting of Sustainable Value Creation” of the World Eco-
to the Group. They may prioritize business and governan-
nomic Forum (WEF) and the recommendations of the Task
ce issues, social issues and environmental issues. The pri-
Force on Climate-related Financial Disclosures (TCFD), the
orities thus defined by the stakeholders are then compa-
details of which are highlighted in the section below on the
red against those of the Group and the business strategy.
WEF and in the “Performance & Metrics” chapter of this
This joint view of the two perspectives makes it possible
document.
to identify the issues of greatest importance both for the
Taking account of the results of the priority matrix and the
(1)
Includes financial institutions and their governance bodies, investors, rating agencies and financial analysts.
1212
significant climate impacts on the Group’s value creation
between key financial and non-financial information have
process, each section (entitled after the four pillars of the
been identified and presented in the Report on Operations
TCFD: Governance, Strategy & Risks, Performance & Me-
for each of the four sections indicated above.
trics and Outlook) includes information relating to climate
For the purposes of greater and easier access to informa-
change as proposed by the TCFD, which published specific
tion, the Integrated Annual Report has also been published
recommendations in June 2017 and were adopted by the
in the “Investors” section of the Enel website (www.enel.
Group in its voluntary reporting on the financial impacts of
com) in a navigable format with specific hyperlinks.
climate risks.
The Group also took account of the recommendations is-
sued by the IASB in November 2019 “IFRS Standards and
Connectivity matrix
climate-related disclosures” and November 2020 “Effects
In order to represent the connectivity of information, the
of climate-related matters on financial statements “, which
Enel Group has developed a matrix delineating the relation-
emphasize that this risk must be considered in the assu-
ships between:
mptions of management in the exercise of its judgment in
› strategic objectives that also clearly represent Enel’s
measuring items in the financial statements.
contribution to achieving the United Nations Sustainable
Development Goals (SDGs) and in particular to the four
In order to ensure the connectivity of information and to
key objectives of the Strategic Plan (i.e. SDG 7, SDG 9,
communicate the way in which the progress achieved in
SDG 11 and SDG 13);
sustainability contributes to enhancing current and future
› the governance, risks and opportunities, performance
financial performance, clear and consistent relationships
and outlook for each Business Line.
13
Integrated Annual Report 2020 Connectivity matrix
Enel business
Value creation and
business model
Global Power Generation
& Global Trading
GENERATION
End-user
Markets
Enel X
CUSTOMERS
Global Infrastructure
and Networks
GRIDS
1414
Governance
Strategy
SDG
Risk & Opportunities
DECARBONIZATION
The use of capital is targeted
at decarbonization through
the development of
renewable generation assets.
> ENEL’S CORPORATE
GOVERNANCE SYSTEM
> ENEL’S ORGANIZATIONAL
MODEL
ELECTRIFICATION
The development of
renewable generation assets
and technological and digital
evolution will foster the
electrification of energy
consumption and the
development of new services
for customers.
PLATFORM & DIGITAL
Investments in enabling
infrastructure for the
development of grids and
the implementation of
platform-based models,
expertly exploiting
technological and digital
evolution.
Thermal Generation and Trading
Acceleration of investment in renewables, especially in Latin
America and North America, supporting industrial growth
within the scope of the Group’s decarbonization policy.
Strategic
> Legislative and regulatory
Performance
> Revenue from thermal and nuclear
Performance & Metrics
(KPls)
Innovation and digitalization
People centricity
Enel Green Power
Operations
> Net electricity generation
> Net efficient installed capacity
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Operations
> Net electricity generation
> Net efficient installed capacity
generation
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
People centricity
Operations
> Sale of electricity
> Sale of natural gas
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Innovation and digitalization
People centricity
Operations
> Demand response
> Lighting points
> Storage
> Charging points
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Outlook
(Targets)
2021-2030
equivalent.
2021
Reduction of direct CO2 emissions by 80% compared with
2017, saving the extraction of about 200 million barrels of oil
2021-2023
More than €19 billion invested in Global Power Generation,
with about €17 billion dedicated to expanding renewable
generation capacity, which will rise to 60 GW on a
consolidated basis by 2023.
The electrification process will enable customers to save
about 25% on their energy bills while reducing their
emissions.
2021-2023
About €3 billion invested in the Customer business: the
customer value of the Business to Consumer segment is
expected to increase by about 30%, while that of the Business
to Business segment is expected to expand by about 45%,
thanks to the elimination of regulated rates, mainly in Italy, and
trends in the electrification of energy consumption, which will
promote “beyond commodity” services.
2021
An increase in investments in electrification of consumption,
especially in Italy, in order to leverage the growth
of the customer base, while continuing to implement
efficiency gains, supported by the creation of global
business platforms.
2021-2030
The process of digitalization and the creation of platforms
will make it possible to offer a level of service quality three
times greater than current levels, with the System Average
Interruption Duration Index falling to about 100 minutes in
Innovation and digitalization
2021-2030
Innovation and digitalization
2030.
People centricity
Operations
> Electricity distribution and transmission grids
More than €16 billion invested in Infrastructure and
> Average frequency of interruptions
Networks. The acceleration of investment is expected
to increase the Group RAB to €48 billion by 2023.
per customer
> Average duration of interruptions
2021-2023
2021
An increase in investments to improve the quality and
resilience of distribution grids, especially in Italy and Latin
America, with even more progress in their digitalization.
per customer
> Grid losses (% avg)
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
developments
> Macroeconomic and
geopolitical trends
> Climate change
> Competitive environment
Financial
> Interest rates
> Commodities
> Currency risk
> Credit and counterparty
> Liquidity
Digital Technology
> Cyber security
> Digitalization,
IT effectiveness, Service
continuity
Operational
> Health and safety
> Environment
> Procurement, logistics
& supply chain
> People and organization
Compliance
> Data protection
Connectivity matrix
Enel business
Value creation and
business model
Global Power Generation
& Global Trading
GENERATION
DECARBONIZATION
The use of capital is targeted
at decarbonization through
the development of
renewable generation assets.
The development of
renewable generation assets
and technological and digital
evolution will foster the
electrification of energy
consumption and the
development of new services
for customers.
PLATFORM & DIGITAL
Investments in enabling
infrastructure for the
development of grids and
the implementation of
platform-based models,
expertly exploiting
technological and digital
evolution.
End-user
Markets
Enel X
> ENEL’S CORPORATE
GOVERNANCE SYSTEM
> ENEL’S ORGANIZATIONAL
MODEL
ELECTRIFICATION
CUSTOMERS
Global Infrastructure
and Networks
GRIDS
Governance
Strategy
SDG
Risk & Opportunities
Performance & Metrics
(KPls)
Innovation and digitalization
People centricity
Enel Green Power
Operations
> Net electricity generation
> Net efficient installed capacity
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Thermal Generation and Trading
Outlook
(Targets)
2021-2030
Reduction of direct CO2 emissions by 80% compared with
2017, saving the extraction of about 200 million barrels of oil
equivalent.
2021-2023
More than €19 billion invested in Global Power Generation,
with about €17 billion dedicated to expanding renewable
generation capacity, which will rise to 60 GW on a
consolidated basis by 2023.
2021
Acceleration of investment in renewables, especially in Latin
America and North America, supporting industrial growth
within the scope of the Group’s decarbonization policy.
Strategic
> Legislative and regulatory
developments
> Macroeconomic and
geopolitical trends
> Climate change
> Competitive environment
Financial
> Interest rates
> Commodities
> Currency risk
> Credit and counterparty
> Liquidity
Digital Technology
> Cyber security
> Digitalization,
IT effectiveness, Service
continuity
Operational
> Health and safety
> Environment
> Procurement, logistics
& supply chain
> People and organization
Compliance
> Data protection
Operations
> Net electricity generation
> Net efficient installed capacity
Performance
> Revenue from thermal and nuclear
generation
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Innovation and digitalization
People centricity
Operations
> Sale of electricity
> Sale of natural gas
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Innovation and digitalization
People centricity
Operations
> Demand response
> Lighting points
> Storage
> Charging points
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
Innovation and digitalization
People centricity
Operations
> Electricity distribution and transmission grids
> Average frequency of interruptions
per customer
> Average duration of interruptions
per customer
> Grid losses (% avg)
Performance
> Revenue
> Gross operating profit
> Operating profit
> Capital expenditure
2021-2030
The electrification process will enable customers to save
about 25% on their energy bills while reducing their
emissions.
2021-2023
About €3 billion invested in the Customer business: the
customer value of the Business to Consumer segment is
expected to increase by about 30%, while that of the Business
to Business segment is expected to expand by about 45%,
thanks to the elimination of regulated rates, mainly in Italy, and
trends in the electrification of energy consumption, which will
promote “beyond commodity” services.
2021
An increase in investments in electrification of consumption,
especially in Italy, in order to leverage the growth
of the customer base, while continuing to implement
efficiency gains, supported by the creation of global
business platforms.
2021-2030
The process of digitalization and the creation of platforms
will make it possible to offer a level of service quality three
times greater than current levels, with the System Average
Interruption Duration Index falling to about 100 minutes in
2030.
2021-2023
More than €16 billion invested in Infrastructure and
Networks. The acceleration of investment is expected
to increase the Group RAB to €48 billion by 2023.
2021
An increase in investments to improve the quality and
resilience of distribution grids, especially in Italy and Latin
America, with even more progress in their digitalization.
15
Integrated Annual Report 2020
Value creation and the business model
The integrated presentation of how the
Group transforms its resources into
outcomes and value created for stakehol-
ders, prioritizing the pursuit of Sustai-
nable Development Goals (SDGs) 7, 9, 11
and 13.
WEF metrics and the European
taxonomy
Clear, transparent and comparable di-
sclosure through WEF metrics and the
European taxonomy. Enel is increasingly a
driver of change in achieving the energy
transition.
Sustainable development in 5 continents
The Enel Group is present in 47 countries
with more than 1,000 companies.
1
ENEL
GROUP
S
N
O
I
T
A
R
E
P
O
N
O
T
R
O
P
E
R
1616
17
Integrated Annual Report 2020 HIGHLIGHTS
HIGHLIGHTS
18
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance HIGHLIGHTSTotal
revenue
-19.1%
€64,985
million
€80,327 million in 2019
Profit attributable
to owners
of the Parent
+20.1%
€2,610
million
€2,174 million in 2019
Capital
expenditure
on property, plant
and equipment and
intangible assets
+2.5%
€10,197
million
€9,947 (1) million in 2019
Total
employees
-2.3%
66,717
no. of employees
68,253 in 2019
GROSS OPERATING
PROFIT
ORDINARY GROSS
OPERATING PROFIT
-5.0%
+0.2%
€16,816
million
€17,940
million
€17,704 million in 2019
€17,905 million in 2019
ORDINARY PROFIT
ATTRIBUTABLE TO
OWNERS OF THE PARENT
NET FINANCIAL
DEBT
+9.0%
+0.5%
€5,197
million
€45,415
million
€4,767 million in 2019
€45,175 million in 2019
CASH FLOWS FROM
OPERATING ACTIVITIES
+2.3%
€11,508
million
€11,251 million in 2019
“HIGH CONSEQUENCE”
ACCIDENTS
3
no.
3 in 2019
(1) Does not include €4 million regarding units classified
as “held for sale” in 2019.
19
Integrated Annual Report 2020 HIGHLIGHTS -
BUSINESS
LINES
Global
Power
Generation
TOTAL NET EFFICIENT
INSTALLED CAPACITY
-0.4%
NET ELECTRICITY
GENERATION
-9.6%
84.0
GW
84.3 in 2019
207.1
TWh
229.1 in 2019
NET EFFICIENT INSTALLED
RENEWABLES
CAPACITY
NET EFFICIENT INSTALLED
RENEWABLES
CAPACITY AS % OF TOTAL
ADDITIONAL EFFICIENT
INSTALLED RENEWABLES
CAPACITY
+7.2%
53.6
%
50.0 in 2019
-18.7%
2.91(2)
GW
3.58 in 2019
+6.9%
45.0
GW(1)
42.1 in 2019
NET RENEWABLE
ELECTRICITY
GENERATION
+6.0%
105.4
TWh
99.4 in 2019
SPECIFIC DIRECT
GREENHOUSE
GAS EMISSIONS - SCOPE 1
-28.2%
214
gCO2eq/kWh
298 in 2019
Global
Infrastructure
and Networks
END USERS
+0.7%
74,303,931
no.(3)
73,811,964 in 2019
ELECTRICITY DISTRIBUTION
AND TRANSMISSION GRID
ELECTRICITY
END USERS WITH ACTIVE
TRANSPORTED ON ENEL’S
SMART METERS
+0.6%
2,231,961
km(3)
2,219,008 in 2019
DISTRIBUTION GRID
-4.5%
484.6
TWh(4)
507.7 in 2019
+1.1%
44,292,794
no.(5)(6)
43,821,596 in 2019
End-user
Markets
ELECTRICITY SOLD
RETAIL CUSTOMERS
-1.4%
BY ENEL
-7.4%
298.2
TWh(7)
322.0 in 2019
of which free market
+0.7%
69,517,932
23,164,875
no.(8)
no.(8)
70,471,612 in 2019
23,013,224 in 2019
Enel X
STORAGE
+11.8%
123.0
MW
110.0 in 2019
CHARGING POINTS
DEMAND RESPONSE
+32.3%
105,237(9)
no.
79,565 in 2019
-4.1%
6,038
no.
6,297 in 2019
(1) Net efficient installed renewables capacity, including managed capacity,
(4) The figure for 2019 reflects a more accurate calculation of quantities
amounted to 48.6 GW at December 31, 2020 and 45.8 GW at December 31, 2019.
transported.
(2) Additional efficient installed renewables capacity including managed capacity
was equal to 3.1 GW at December 31, 2020 and 3 GW at December 31, 2019.
(3) The figure for 2019 reflects a more accurate calculation of the numbers.
(5) To ensure a uniform comparison, the figure for 2019 has been adjusted on
the basis of the new calculation method, which excludes digital meters with
an active contract that are not managed remotely.
(6) Of which 18.2 million second-generation meters in 2020 and 13.1 million in 2019.
(7) Volumes include sales to large customers by generation companies in Latin
America. The figure for 2019 has consequently been adjusted to ensure
The figure for 2019 has consequently been adjusted to ensure comparability.
(9) The number of charging points including interoperable points was equal to
about 186 thousand at December 31, 2020 and about 82 thousand
comparability.
(8) Also includes the large customers of generation companies in Latin America.
at December 31, 2019.
2020
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance
HIGHLIGHTS -
BUSINESS
LINES
Global
Power
Generation
TOTAL NET EFFICIENT
INSTALLED CAPACITY
-0.4%
NET ELECTRICITY
GENERATION
-9.6%
84.0
GW
84.3 in 2019
207.1
TWh
229.1 in 2019
NET EFFICIENT INSTALLED
NET EFFICIENT INSTALLED
RENEWABLES
CAPACITY AS % OF TOTAL
CAPACITY
ADDITIONAL EFFICIENT
INSTALLED RENEWABLES
+7.2%
53.6
%
50.0 in 2019
-18.7%
2.91(2)
GW
3.58 in 2019
RENEWABLES
CAPACITY
+6.9%
45.0
GW(1)
42.1 in 2019
NET RENEWABLE
ELECTRICITY
GENERATION
+6.0%
105.4
TWh
99.4 in 2019
SPECIFIC DIRECT
GREENHOUSE
GAS EMISSIONS - SCOPE 1
-28.2%
214
gCO2eq/kWh
298 in 2019
Global
Infrastructure
and Networks
END USERS
+0.7%
74,303,931
no.(3)
73,811,964 in 2019
ELECTRICITY DISTRIBUTION
AND TRANSMISSION GRID
ELECTRICITY
TRANSPORTED ON ENEL’S
DISTRIBUTION GRID
END USERS WITH ACTIVE
SMART METERS
+0.6%
2,231,961
km(3)
2,219,008 in 2019
-4.5%
484.6
TWh(4)
507.7 in 2019
+1.1%
44,292,794
no.(5)(6)
43,821,596 in 2019
End-user
Markets
ELECTRICITY SOLD
BY ENEL
-7.4%
RETAIL CUSTOMERS
-1.4%
of which free market
+0.7%
298.2
TWh(7)
322.0 in 2019
69,517,932
23,164,875
no.(8)
no.(8)
70,471,612 in 2019
23,013,224 in 2019
Enel X
STORAGE
+11.8%
123.0
MW
110.0 in 2019
CHARGING POINTS
DEMAND RESPONSE
+32.3%
105,237(9)
no.
79,565 in 2019
-4.1%
6,038
no.
6,297 in 2019
(1) Net efficient installed renewables capacity, including managed capacity,
(4) The figure for 2019 reflects a more accurate calculation of quantities
amounted to 48.6 GW at December 31, 2020 and 45.8 GW at December 31, 2019.
transported.
(2) Additional efficient installed renewables capacity including managed capacity
was equal to 3.1 GW at December 31, 2020 and 3 GW at December 31, 2019.
(3) The figure for 2019 reflects a more accurate calculation of the numbers.
(5) To ensure a uniform comparison, the figure for 2019 has been adjusted on
the basis of the new calculation method, which excludes digital meters with
an active contract that are not managed remotely.
(6) Of which 18.2 million second-generation meters in 2020 and 13.1 million in 2019.
(7) Volumes include sales to large customers by generation companies in Latin
America. The figure for 2019 has consequently been adjusted to ensure
comparability.
(8) Also includes the large customers of generation companies in Latin America.
The figure for 2019 has consequently been adjusted to ensure comparability.
(9) The number of charging points including interoperable points was equal to
about 186 thousand at December 31, 2020 and about 82 thousand
at December 31, 2019.
21
Integrated Annual Report 2020
WORLD
ECONOMIC
FORUM (WEF)
Consistent Reporting of Sustainable Value Creation”, with
the aim of defining shared common metrics to measure,
report and compare levels of sustainability, i.e. the effecti-
veness of its actions in pursuing the Sustainable Develop-
ment Goals set by the United Nations (SDGs), in the busi-
ness model adopted to create value for stakeholders.
The metrics are based on existing standards and seek to
increase convergence and comparability between the va-
The International Business Council (IBC) of the World Eco-
rious parameters used today in sustainability reports.
nomic Forum has developed a report entitled “Measuring
The following table gives the 21 main indicators specified in
Stakeholder Capitalism: Towards Common Metrics and
the WEF report.
Integrated Annual Report 2020
Pillar
Theme
CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
Chapter/Section reporting all KPIs and disclosure
on the 21 CORE KPIs of the WEF
2020
PRINCIPLES OF
GOVERNANCE
Governing
purpose
Quality of
governing
body
Stakeholder
engagement
Setting purpose
Governance body
composition
Material issues
impacting
stakeholders
Anti-corruption
Ethical
behavior
Protected ethics
advice and reporting
mechanisms
Risk and
opportunity
oversight
Integrating risk and
opportunity into
business process
Enel is Open Power
“Corporate boards” section in
“Governance” chapter
“Basis of Presentation” chapter
“Values and pillars of corporate ethics” section in
“Governance” chapter
No. of women on Board
4
Employees with training in
anti-corruption policies and
procedures (%)
Confirmed violations
for conflict of interest/
corruption (no.)
40.0
2
Reports received for
violations of Code of Ethics
151
“Values and pillars of corporate ethics” section in
“Governance” chapter
-
“Risk management” section in “Strategy & Risk
Management” chapter
PLANET
Climate
change
Greenhouse gas
(GHG) emissions
Direct greenhouse gas
emissions - Scope 1 (million/teq)
Indirect greenhouse gas
emissions - Scope 2 - Purchase
of electricity from the grid
(location based) (million/teq)
Indirect greenhouse gas
emissions - Scope 2 -
Purchase of electricity from
the grid (market based)
(million/teq)
Indirect greenhouse
gas emissions - Scope
2 - Distribution grid losses
(location based) (million/teq)
Indirect greenhouse gas
emissions - Scope 3
(million/teq)
45.26
1.43
2.28
3.56
47.70
“Fighting climate change and ensuring
environmental sustainability” section in
“Performance & Metrics” chapter
TCFD
implementation
“Governance”, “Strategy & Risk Management”,
“Performance & Metrics” and “Outlook” chapters
2222
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance
WEF
Pillar
PLANET
PEOPLE
Integrated Annual Report 2020
Theme
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
Chapter/Section reporting all KPIs and disclosure
on the 21 CORE KPIs of the WEF
2020
Nature loss
Land use and
ecological sensitivity
No. of protected areas
187
“Fighting climate change and ensuring
environmental sustainability” section in
“Performance & Metrics” chapter
Fresh water
availability
Water consumption
and withdrawals in
water-stressed areas
Water withdrawals
(millions of m3)
Water withdrawals in water-
stressed areas (%)
Total water consumption
(millions of m3)
Water consumption in
water-stressed areas (%)
Diversity and
inclusion
Women as proportion of
total employees (%)
51.5
22.9
20.4
31.6
21.5
Pay equality
Equal Remuration Ratio (%)
83.3
Dignity and
equality
Wage level
CEO Pay Ratio (%) (1)
146
Risk for incidents
of child, forced or
compulsory labor
Assessment of protection of
child labor and compliance
with ban on forced labor in
the supply chain
Fatal accidents - Enel (no.)
1
Frequency of fatal accidents
- Enel (i.)
0.008
“Fighting climate change and ensuring
environmental sustainability” section in
“Performance & Metrics” chapter
“People centricity” section in “Performance &
Metrics” chapter
“People centricity” section in “Performance &
Metrics” chapter
“Values and pillars of corporate ethics section” in
“Governance” chapter
Health and
well-being
Health and safety
High consequence accidents
- Enel (no.)
3
“People centricity” section in “Performance &
Metrics” chapter
Skills for the
future
Training provided
Absolute number
and rate of
employment
Economic
contribution
Employment
and wealth
generation
PROSPERITY
Financial investment
contribution
Frequency of high
consequence accidents -
Enel (i.)
Average hours of training
per employee (hrs/person)
Employee training costs
(millions of euro)
0.024
40.9
19
People hired (no.)
3,131
Hiring rate (%)
4.7
Terminations (no.) 3,696
Turnover (%)
6.0
Total investment
(millions of euro)
10,197
Purchase of treasury shares
and dividends paid
4,755
“People centricity” section in “Performance &
Metrics” chapter
“People centricity” section in “Performance &
Metrics” chapter
“Value created and distributed to stakeholders”
section in “Performance & Metrics” chapter
“Analysis of the Group’s financial position and
financial structure” section in “Performance &
Metrics” chapter
Consolidated financial statements
Innovation
in better
products and
services
Community
and social
vitality
Total R&D expenses
Investment in R&D
(millions of euro)
111
“Innovation and digitalization” section in
“Performance & Metrics” chapter
Total tax paid
Total tax paid
(millions of euro) (2) 4,245
“Value created and distributed to stakeholders”
section in “Performance & Metrics” chapter
(1) Ratio of total remuneration of the CEO/General Manager of Enel and the average gross annual remuneration of Enel employees (CEO Pay Ratio equal to
143% in 2019).
(2) The amount represents “total taxes borne”, which is costs for taxes borne by the Group. For more information, see the 2020 Sustainability Report and the
Consolidated Non-Financial Statement.
23
Integrated Annual Report 2020
VALUE CREATION
AND THE
BUSINESS MODEL
The value chain
The integrated presentation of financial and non-financial
information makes it possible to effectively communicate
the business model and the value creation process both
in terms of results and the short- and medium/long-term
outlook, constituting an important input for a process of
Our
resources
PROSPERITY
€45,415 million Net financial debt
€42,357 million Equity
€10,197 million Capital expenditure
€78,718 million Property, plant and
equipment
84.0 GW Net efficient installed capacity
45.0 GW Net efficient installed
renewables capacity
2.2 million km Electricity distribution
and transmission grid
44.3 million End users with active smart
meters
74.3 million End users
69.5 million Retail customers
23.2 million Retail customers, free market
105.2 thousand Charging points
€17,668 million Intangible assets
€13,264 million Concessions
PEOPLE
66,717 Employees
21.5% Women as proportion of
total employees
3,825 Women in management positions
PLANET
22.9% Water withdrawals
in water-stressed areas
2424
Context: Opportunity and Threats
Circular Cities | Peer2Peer | Innovate to Zero | Freemium Business
Model | Autonomous World | Zero Latency (5G) | Turmoil of
Competition
Context: Opportunity and Threats
Connected Living | Emerging Raw Materials | Environmental
and Climate Urgency | Heterogenous Society (Millennials, Gen Y and Z)
| COVID-19
Outcome and value created
for stakeholders
Enel is Open Power
PRINCIPLES OF GOVERNANCE
PRINCIPLES OF GOVERNANCE
> Open access to electricity
Trust
> Open the world of energy
Proactivity
for more people.
to new technology.
> Open up to new uses of energy.
Responsibility
>
>
>
Innovation
> Open up to new ways of
managing energy for people.
> Open up to new partnerships.
PERFORMANCE & METRICS
OUTLOOK
Industry trends Directly tackled by Enel
DECARBONIZATION PLATFORM
& DIGITAL
ELECTRIFICATION
Open Power
for a brighter
future.
We empower
sustainable
progress.
How we do
GOVERNANCE
What we do
Open Power
to tackle some of the
world’s biggest
challenges.
STRATEGY & RISK
MANAGEMENT
Business
strategy
Direction, Ambition
GENERATION
GRIDS
CUSTOMERS
CREATING
SUSTAINABLE VALUE
IN THE LONG TERM
FUTURE OF WORK AND PEOPLE CENTRICITY
FUTURE OF WORK AND PEOPLE CENTRICITY
Automation and Robotics | Gig Economy | Creativity and Design Thinking
| Competition for Talents and STE(A)M
| New Ways of Working (Habits and Spaces) | Caring and Inclusion
| Transhumanism
PROSPERITY
€65,081 million Economic value
generated directly by the Group
€4,245 million Total taxes borne
€4,755 million Purchase of treasury
shares and dividends paid
484.6 TWh Electricity transported
298.2 TWh Electricity sold
€64,985 million Revenue
€17,940 million Ordinary EBITDA
€5,197 million Group ordinary profit
2.9 GW Additional efficient installed
renewables capacity
25.7 thousand Public and private charging
points installed in 2020
SAIDI (min.) 258.9
Intellectual property:
837 applications for patents, of which
0.521 Injury frequency rate
40.9 Hours of training (average hours
692 granted
PEOPLE
per employee)
6.0% Turnover
PLANET
214 gCO2eq/kWh Specific direct
greenhouse gas emissions - Scope 1
31.6% Water consumption in
water-stressed areas
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance
informed financial decisions by investors and other sta-
how they are transformed into outcomes and value crea-
keholders, especially in consideration of the fact that en-
ted for stakeholders by the organization and the business
vironmental, social and economic aspects are increasingly
model of the Group, which is characterized by sound and
significant in terms of assessing the ability to create finan-
transparent governance and a sustainable strategy that
cial value for all categories of stakeholders.
prioritizes the pursuit of SDGs 7, 9, 11 and 13, among other
The following graphical representation summarizes the va-
things.
lue chain of the Enel Group with the main inputs used and
Context: Opportunity and Threats
Circular Cities | Peer2Peer | Innovate to Zero | Freemium Business
Model | Autonomous World | Zero Latency (5G) | Turmoil of
Competition
Context: Opportunity and Threats
Connected Living | Emerging Raw Materials | Environmental
and Climate Urgency | Heterogenous Society (Millennials, Gen Y and Z)
| COVID-19
Outcome and value created
for stakeholders
Enel is Open Power
PRINCIPLES OF GOVERNANCE
PRINCIPLES OF GOVERNANCE
> Open access to electricity
for more people.
> Open the world of energy
to new technology.
Trust
>
Proactivity
>
> Open up to new uses of energy.
Responsibility
> Open up to new ways of
managing energy for people.
> Open up to new partnerships.
>
Innovation
PERFORMANCE & METRICS
OUTLOOK
Industry trends Directly tackled by Enel
DECARBONIZATION PLATFORM
& DIGITAL
ELECTRIFICATION
FUTURE OF WORK AND PEOPLE CENTRICITY
FUTURE OF WORK AND PEOPLE CENTRICITY
Automation and Robotics | Gig Economy | Creativity and Design Thinking
| Competition for Talents and STE(A)M
| New Ways of Working (Habits and Spaces) | Caring and Inclusion
| Transhumanism
PROSPERITY
€65,081 million Economic value
generated directly by the Group
€4,245 million Total taxes borne
€4,755 million Purchase of treasury
shares and dividends paid
484.6 TWh Electricity transported
298.2 TWh Electricity sold
€64,985 million Revenue
€17,940 million Ordinary EBITDA
€5,197 million Group ordinary profit
2.9 GW Additional efficient installed
renewables capacity
25.7 thousand Public and private charging
points installed in 2020
SAIDI (min.) 258.9
Intellectual property:
837 applications for patents, of which
692 granted
PEOPLE
0.521 Injury frequency rate
40.9 Hours of training (average hours
per employee)
6.0% Turnover
PLANET
214 gCO2eq/kWh Specific direct
greenhouse gas emissions - Scope 1
31.6% Water consumption in
water-stressed areas
25
Our
resources
PROSPERITY
€45,415 million Net financial debt
€42,357 million Equity
€10,197 million Capital expenditure
€78,718 million Property, plant and
equipment
84.0 GW Net efficient installed capacity
45.0 GW Net efficient installed
renewables capacity
2.2 million km Electricity distribution
and transmission grid
44.3 million End users with active smart
meters
74.3 million End users
69.5 million Retail customers
23.2 million Retail customers, free market
105.2 thousand Charging points
€17,668 million Intangible assets
€13,264 million Concessions
PEOPLE
66,717 Employees
21.5% Women as proportion of
total employees
3,825 Women in management positions
PLANET
22.9% Water withdrawals
in water-stressed areas
Open Power
for a brighter
future.
We empower
sustainable
progress.
How we do
GOVERNANCE
What we do
Open Power
to tackle some of the
world’s biggest
challenges.
STRATEGY & RISK
MANAGEMENT
Business
strategy
Direction, Ambition
GENERATION
GRIDS
CUSTOMERS
CREATING
SUSTAINABLE VALUE
IN THE LONG TERM
Integrated Annual Report 2020
Business model
local communication. The mission of each business can be
summarized as follows:
Enel’s business model has been structured so as to support
› Global Power Generation: the Group operates through
the commitments made by the Group in the fight against
this Business Line to accelerate the energy transition,
climate change. In 2019, Enel, responding to the call for
continuing to increase investments in new renewable
action from the United Nations, signed a commitment to
energy capacity, and manages the decarbonization of
act to limit the increase in global temperatures to 1.5 °C
its generation mix and the countries in which it opera-
and be net zero across its entire value chain by 2050.
tes, always aiming to ensure the safety and capacity of
The business model delineates how the organizational uni-
electrical systems.
ts of the Company, linked to our three main businesses,
› Global Trading: this Business Line manages our integra-
must work to reap all the possible benefits from the main
ted margin as a single portfolio in which Generation and
trends in the sector, possibly accelerating their implemen-
Retail operations are always balanced effectively. In addi-
tation as well.
tion, the line manages all trading operations on interna-
The role defined for all the major organizational units is also
tional desks.
intended to enable them to effectively address all the risks
› Global Infrastructure and Networks: in developing and
posed by developments in the rapidly changing energy in-
operating infrastructure that enables the energy tran-
dustry.
sition, the Group ensures the reliability in the supply of
Working transversally across organizational units, thanks
energy and the quality of service to communities throu-
to the platform-based digital models implemented to con-
gh resilient and flexible networks, leveraging efficiency,
nect assets, data and solutions, it will also be possible to
technology and digital innovation, and ensuring appro-
seize new opportunities to create value through two com-
priate returns on investment and cash generation.
plementary business models:
› End-user Markets: through its sales relationships with end
› the Ownership business model, in which platforms are
users, the Group interacts locally with millions of families
promoters of the business in support of the profitabili-
and companies. Thanks to our technology, the platform
ty of direct investments in renewables, grids and custo-
model enables us to improve customer satisfaction and
mers, supporting sustainable long-term growth, in which
the customer experience, while at the same time achie-
platform-based operating models also play an important
ving ever higher levels of efficiency. The business units
enabling role;
optimize the supply of power to their customer base,
› the Stewardship business model, in which the Group of-
maximizing the value generated by that resource and fo-
CUSTOMERS
fers important services, products or know-how through
stering long-term relationships with customers.
platforms that mobilize investments, including third-par-
› Enel X: this Business Line is enabling the energy tran-
ty investors, to maximize value creation. More specifically,
sition by acting as an accelerator for the electrification
this comprises:
and decarbonization of customers, helping them to use
– operating platforms, which deliver services to third
energy more efficiently, driving circularity and leveraging
parties using know-how and best practices developed
the assets of the Enel Group through the delivery of in-
over time;
novative “beyond commodity” services.
– business platforms, which generate new products and
services and thus new business opportunities for a
By exploiting the synergies between the different business
broad range of customers;
areas, implementing actions through the lever of innovation
– joint ventures and partnerships, in which joint invest-
and deploying Open Power approaches, the Enel Group se-
Creativity and Design Thinking |
| Caring and Inclusion
ment opportunities foster the creation of value thanks
eks to develop solutions to reduce environmental impact,
to platforms that enable third-party investments.
meet the needs of customers and the local communities
in which it operates and ensure high safety standards for
In this design, each Country organization acts within its ter-
employees and suppliers.
ritory in a matrix relationship with the broader and more
Global Business Lines, managing activities such as relations
with local communities, regulation, the retail market and
2626
Context
OPPORTUNITY and THREATS
Circular Cities | Peer2Peer | Innovate to Zero | Freemium Business Model | Autonomous World
| Zero Latency (5G) | Turmoil of Competition | Connected Living | Emerging Raw Materials | Environmental
and Climate Urgency | Heterogenous Society (Millenials, Gen Y and Z) | COVID-19
Industry trends
Directly tackled by Enel
DECARBONIZATION
ELECTRIFICATION
PLATFORM
& DIGITAL
Business
strategy
Direction, Ambition
GENERATION
GRIDS
Future of work
and people centricity
Automation and Robotics |
| Competition for Talents and STE(A)M
Gig Economy |
| New Ways of Working (Habits and Spaces)
Transhumanism |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance Context
OPPORTUNITY and THREATS
Circular Cities | Peer2Peer | Innovate to Zero | Freemium Business Model | Autonomous World
| Zero Latency (5G) | Turmoil of Competition | Connected Living | Emerging Raw Materials | Environmental
and Climate Urgency | Heterogenous Society (Millenials, Gen Y and Z) | COVID-19
Industry trends
Directly tackled by Enel
DECARBONIZATION
PLATFORM
& DIGITAL
ELECTRIFICATION
Business
strategy
Direction, Ambition
GENERATION
GRIDS
CUSTOMERS
Future of work
and people centricity
Automation and Robotics |
| Competition for Talents and STE(A)M
Gig Economy |
| New Ways of Working (Habits and Spaces)
Creativity and Design Thinking |
| Caring and Inclusion
Transhumanism |
27
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||Integrated Annual Report 2020 EUROPEAN
UNION
TAXONOMY
(NFD) must make public the share of their turnover, capital
expenditure and ordinary operating expenditure that qua-
lify as environmentally sustainable.
Based on this approach, Enel has classified all its econo-
mic activities in the value chain into the following three
categories:
Eligible: an economic activity that meets both of the fol-
The European Commission has established a specific
lowing two conditions:
classification system to identify environmentally sustai-
› it was explicitly included in the European taxonomy re-
nable economic activities, acting as an important enabler
gulation because it contributes substantially to climate
to support sustainable investment and to implement the
change mitigation or adaptation;
European Green Deal.
› it satisfies the criteria set out in the European taxonomy
regulation for the two environmental objectives.
By providing appropriate definitions of the economic acti-
Ineligible: an economic activity that meets both of the fol-
vities that can be considered environmentally sustainable,
lowing two conditions:
it is intended to create security and transparency for inve-
› it was explicitly included in the European taxonomy re-
stors, protect private investors from greenwashing, help
gulation because it contributes substantially to climate
companies plan the transition, mitigate market fragmen-
change mitigation or adaptation;
tation and, ultimately, bridge the sustainable investment
› it does not satisfy the criteria set out in the European ta-
gap.
xonomy regulation for the two environmental objectives.
Not covered: an economic activity that:
The European taxonomy established six environmental
› was not included in the European taxonomy regulation
objectives to identify environmentally sustainable econo-
because it does not contribute substantially to climate
mic activities: climate change mitigation, climate change
change mitigation or adaptation and therefore no spe-
adaptation, the sustainable use and protection of water
cific technical criteria have been developed. The Euro-
and marine resources, the transition to a circular eco-
pean Commission believes that this type of activity may
nomy, pollution prevention and control and the protection
not have a significant impact on climate change mitiga-
and restoration of biodiversity and ecosystems. An eco-
tion/adaptation or could be integrated into the Europe-
nomic activity is defined as environmentally sustainable if:
an taxonomy regulation at a later stage.
› it makes a substantive contribution to at least one of the
The existence of this third category makes it impossible to
six environmental objectives;
achieve a business model that is fully compliant with the
› it does no significant harm (DNSH) to the other five envi-
European taxonomy criteria, since currently some activi-
ronmental objectives;
› it meets minimum safeguards.
ties within the electric utilities value chain are not consi-
dered to substantially contribute to climate change miti-
In July 2018, the European Commission established a Te-
gation.
chnical Expert Group (TEG) on sustainable finance to de-
velop recommendations for technical screening criteria
for economic activities that can make a substantial con-
tribution to climate change mitigation or adaptation while
avoiding significant harm to the four other environmental
objectives.
Based on the contribution of the TEG and a wide range
of stakeholders and institutions, the taxonomy regulation
was published in the Official Journal of the European Union
on June 22, 2020 and entered into force on July 12, 2020.
Starting from January 2022, companies which are subject
to the obligation to publish a Non-Financial Declaration
2828
Statement on the
compliance of Enel’s
business with the
European taxonomy
Although the European taxonomy regulation establishes an
obligation for companies to declare compliance with the
taxonomy starting from January 2022, given its importance
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance for the financial community and policymakers, Enel has de-
could lead to a change in eligibility status;
cided to highlight this in the 2020 Integrated Annual Report
› the Enel X portfolio was analyzed at the Business Line
and in the 2020 Sustainability Report, to which reference
and product cluster level, as it was not possible to as-
should be made for further information.
sociate all the financial metrics required by the Europe-
The summary of results and results by Business Lines in the
an taxonomy with each individual product. However, as a
“Performance & Metrics” chapter contain the results of the
precaution, only the Business Lines and product clusters
statement on compliance with the European taxonomy for
that fully meet the criteria were designated as eligible,
the activities of the Enel Group in 2020 and 2019.
excluding the others (for example “e-home” and “distri-
In analyzing these results, it is helpful to consider the fol-
buted energy”);
lowing elements as they are relevant for the preparation of
› the statement was prepared without performing an
the statement:
exhaustive review of the DNSH criteria, which will be car-
› the statement was prepared exclusively following the
ried out once the delegated acts are approved in the se-
criteria established in the draft version of the delegated
cond quarter of 2021. Nonetheless, Enel is confident that
act of the European taxonomy concerning the climate
it can demonstrate a high level of performance, as over
change mitigation goal because at the time of the pre-
the years it has implemented complete and comprehen-
paration of the 2020 annual reports the final version had
sive environmental management systems that go beyond
not yet been published. Final publication could introduce
legal requirements and are applied throughout the va-
important changes that might significantly affect the re-
lue chain. Additional information on Enel’s environmental
sult presented in this statement;
performance is available in the “Environmental Sustaina-
› one change that could significantly affect the final result
bility” chapter of the 2020 Sustainability Report;
concerns the manner in which the retail business seg-
› the European Commission has not yet finished drafting
ment will finally be represented in the European taxo-
the delegated acts for the other four environmental
nomy. Enel, together with other utilities, has asked the
objectives. The latter could strengthen the compliance
European Commission to include this business activity
of Enel’s business model with the European taxonomy,
because, similarly to electricity distribution, it contributes
considering that the current statement only covers the
substantially to climate change mitigation as an enabler
climate change mitigation objective;
of the decarbonization of other industries by promoting
› the aggregates being analyzed refer to the “sector” le-
the electrification of energy consumption;
vel and only include items in respect of third parties. Ac-
› Enel performed a detailed mapping of all its hydroelectric
cordingly, they do not include inter-sectoral exchange
assets on the basis of the “power density” metric requi-
between sectors;
red in the draft delegated acts. For plants with a power
› although not explicitly required, Enel has also performed
density lower than 5 W/m2, a further analysis was con-
an assessment in terms of the ordinary gross operating
ducted to verify that the emissions (calculated over the
profit, as it believes that this metric represents the ef-
entire life cycle) were below the specific emission limit of
100 gCO2eq/kWh. The findings indicated that 99% of the
installed hydroelectric capacity is eligible in accordance
fective financial performance of integrated utilities such
as Enel. A metric that only considers revenue is strongly
influenced by business activities with a high volume of
with the European taxonomy criteria for climate change
revenue (such as the wholesale market) that do not con-
mitigation only, while only 1% – for which it was not pos-
tribute proportionately to the growth of the gross opera-
sible to conduct a timely assessment due to the lack of
ting profit like other business activities.
robust data – was ruled out on a conservative basis;
› in order to maintain this conservative approach, the busi-
The statement also gives a view that excludes “not cove-
ness activity relating to the generation of electricity from
red” activities to underscore the compliance of the Group
geothermal sources was considered almost entirely ineli-
for only the economic activities for which the European
gible pending certification by an independent third party
taxonomy has developed criteria and therefore the most
of compliance with the threshold for geothermal plants
of 100 gCO2eq/kWh for the entirety of Group’s geother-
mal assets;
› activities relating to the infrastructure and networks bu-
siness in Chile, Colombia, Peru and Argentina were consi-
dered ineligible, again adopting a conservative approach.
However, during 2021 an in-depth analysis will be perfor-
med for the distribution and transmission system, which
significant from the point of view of the climate change mi-
tigation objectives.
29
Integrated Annual Report 2020 ENEL AROUND
THE WORLD
The Enel Group has a presence in 47 countries on the va-
rious continents, with more than 1,000 subsidiaries.
The following map shows the distribution of the Enel Group
across the globe.
PRESENCE
PRESENCE
47
countries
47
Countries
3030
more than
1,000
subsidiaries
more than
1,000
subsidiaries
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance Integrated Annual Report 2020
31
2
GOVERNANCE
Corporate governance system focused
on achieving sustainable success.
Governance model compliant with
international best practice.
Transparency and integrity its
fundamental values.
S
N
O
I
T
A
R
E
P
O
N
O
T
R
O
P
E
R
3232
33
Integrated Annual Report 2020 ENEL
SHAREHOLDERS
Company pursuant to Article 120 of Legislative Decree 58
of February 24, 1998, as well as other available informa-
tion, shareholders with an interest of greater than 3% in the
Company’s share capital included the Ministry for the Eco-
nomy and Finance (with a 23.585% stake), BlackRock Inc.
(with a stake of 5.081% held for asset management purpo-
ses) and Capital Research and Management Company (with
At December 31, 2020, the fully subscribed and paid-up
a 5.029% stake held for asset management purposes).
share capital of Enel SpA totaled €10,166,679,946, repre-
sented by the same number of ordinary shares with a par
value of €1.00 each. Share capital is unchanged compa-
red with that registered at December 31, 2019. In 2020 the
Company purchased a total of 1,720,000 treasury shares to
support the 2020 Long-Term Incentive Plan (“LTI Plan”) for
Composition of
shareholder base
the management of Enel and/or its subsidiaries pursuant
Since 1999, Enel has been listed on the Mercato Telema-
to Article 2359 of the Italian Civil Code. Considering the
tico Azionario organized and operated by Borsa Italiana
number of treasury shares already owned, Enel SpA holds
SpA. Enel’s shareholders include leading international in-
a total of 3,269,152 treasury shares, all supporting the 2019
vestment funds, insurance companies, pension funds and
and 2020 LTI Plans.
ethical funds.
Significant shareholders
At December 31, 2020, based on the shareholders register
and the notices submitted to CONSOB and received by the
Composition of shareholders
base at December 2020
100%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
23.6%
14.1%
MINISTRY FOR
THE ECONOMY
AND FINANCE
RETAIL
INVESTORS
62.3%
INSTITUTIONAL
INVESTORS
The number of Environmental, Social and Governance (ESG)
ber 31, 2019), while investors who have signed the Prin-
investors in Enel has been rising steadily: at December 31,
ciples for Responsible Investment represent 47.8% of the
2020, socially responsible investors (SRIs) held around
share capital (compared with 43% at December 31, 2019).
14.6% of the share capital (compared with 10.8% at Decem-
3434
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements CORPORATE
BOARDS
Board of Directors
CHAIRMAN
Michele Crisostomo
DIRECTORS
Cesare Calari
CHIEF EXECUTIVE OFFICER
AND GENERAL MANAGER
Francesco Starace
SECRETARY
Silvia Alessandra Fappani
Mariana Mazzucato
Costanza Esclapon de Villeneuve
Mirella Pellegrini
Samuel Leupold
Alberto Marchi
Anna Chiara Svelto
R
E
D
N
E
G
E
G
A
E
S
I
T
R
E
P
X
E
1
EXECUTIVE
DIRECTOR
1 in 2019
8
NON-EXECUTIVE
DIRECTORS
8 in 2019
of which 7 independent(1)
7 in 2019
2020
2020
2020
energy industry
3
1
strategic vision
4
accounting, finance
and risk management
5
9
1
9
1
legal and corporate governance
communication and marketing
international experience
3
1
1
1
9
9
1
6
(1) The figures for 2020 and 2019 refer to directors qualifying as independent pursuant to the Corporate Governance Code (2018 edition).
Board of Statutory Auditors
CHAIRMAN
Barbara Tadolini
AUDITORS
Romina Guglielmetti
Claudio Sottoriva
ALTERNATE AUDITORS
Maurizio De Filippo
Francesca Di Donato
Piera Vitali
Audit Firm
KPMG SpA
9
9
35
Composition of shareholders
base at December 2020
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
100%
23.6%
14.1%
MINISTRY FOR
THE ECONOMY
AND FINANCE
RETAIL
INVESTORS
62.3%
INSTITUTIONAL
INVESTORS
555.6%0%22%78%<3030-50>5044.4%66.7% in 20190% in 20190% in 2019100% in 201933.3% in 20196 in 2019MEN43 in 2019WOMENIntegrated Annual Report 2020
THE ENEL
CORPORATE
GOVERNANCE
SYSTEM
pany, and with international best practice. The corporate
governance system adopted by Enel and its Group is es-
sentially aimed at creating value for the shareholders over
the long term, taking into account the social importance of
the Group’s business operations and the consequent need,
in conducting such operations, to adequately consider all
the interests involved.
In compliance with Italian legislation governing listed com-
panies, the Group’s organization comprises the following
bodies:
In 2020, the corporate governance system of Enel SpA
(“Enel” or the “Company”) was compliant with the principles
set forth in the July 2018 edition of the Corporate Gover-
nance Code for listed companies, adopted by the Com-
SMSHAREHOLDERS'
MEETING
Audit Firm
KPMG SpA
BOD
BOARD
OF DIRECTORS
BSA
BOARD
OF STATUTORY
AUDITORS
CRC
CONTROL
AND RISK COMMITTEE
NCC
NOMINATION
AND COMPENSATION
COMMITTEE
CGSC
CORPORATE
GOVERNANCE
AND SUSTAINABILITY
COMMITTEE
RPC
RELATED PARTIES
COMMITTEE
3636
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
It is charged with deciding, among other things, in either ordinary or extraordinary session:
› the appointment and removal of the members of the Board of Directors and the Board of Sta-
tutory Auditors and their compensation and undertaking any stockholder actions;
› the approval of the financial statements and the allocation of profit;
SHAREHOLDERS’
MEETING
› the purchase and sale of treasury shares;
› remuneration policy and its implementation;
› share ownership plans;
› amendments to the bylaws;
› mergers and demergers;
› the issue of convertible bonds.
BOARD OF
DIRECTORS
16
meetings held by the
Board in 2020, in 12
of which it addressed
issues connected
with climate and their
impact on strategies
and the associated
approaches to imple-
mentation
› It is vested by the bylaws with the broadest powers for the ordinary and extraordinary management
of the Company and has the power to carry out all the actions it deems advisable to implement and
achieve the corporate purpose.
› It is responsible for examining and approving the corporate strategy, including the annual budget
and business plan, which incorporate the main objectives and planned actions, including with regard
to sustainability,(2) to lead the energy transition and tackle climate change, promoting a sustainable
business model that creates long-term value.
› It also performs a policy-setting role and provides an assessment of the adequacy of the internal
control and risk management system (the ICRMS), determining the nature and level of risk compatible
with the strategic objectives of the Company and the Group. The ICRMS consists of the set of rules,
procedures and organizational structures designed to enable the identification, measurement, ma-
nagement and monitoring of the main business risks to which the Group is exposed. These include
the risks that could arise in a medium- to long-term perspective, including the risks associated with
climate change and, more generally, the risks that the Group’s activities may engender in the areas of
the environment, society, personnel and respect for human rights.
› During 2020, it addressed climate-related issues at various meetings, including: (i) an in-depth analy-
sis of possible future climate scenarios with a view to defining the Group’s strategy, taking account
of the related risks and opportunities; (ii) the management of the impacts of the just transition and
decarbonization on workers, providing for upskilling and reskilling programs; (iii) an analysis of inve-
stor expectations for climate change, through updates on the related engagement activities; and (iv)
the inclusion of the fight against climate change and the reduction of direct and indirect emissions
among the parameters taken into consideration in analyzing the positioning of the Group with re-
spect to peers.
› It also examined issues relating to enhancing diversity, with reference to both disabilities and gender.
With regard to disabilities, a Value for Disability plan was developed to promote the empowerment of
disabled workers and the inclusion of people with disabilities who live in the communities where the
Group operates.
› At each meeting, starting from the end of February 2020, it received updates on the impact of the
COVID-19 pandemic in the countries in which the Group operates, constantly monitoring the actions
taken to prevent or mitigate the effects of the emergency on the workplace and to ensure business
continuity, with a focus on specific issues, including: (i) developments in the disease contagion among
employees and obtaining a specific insurance policy to cover hospitalizations; (ii) the efficiency of
remote work and the digital operation of plants and infrastructures; (iii) the impacts on individual Bu-
siness Lines and on the Group’s results; and (iv) solidarity and charity initiatives.
(2) Sustainability comprises issues connected with climate change, atmospheric emissions, managing water resources, biodiversity, the circular economy,
health and safety, diversity, management and development of employees, relations with communities and customers, the supply chain, ethical conduct and
human rights.
37
Integrated Annual Report 2020 In compliance with the provisions of the Italian Civil Code,
the provision of the applicable CONSOB regulations, has
the Board of Directors has delegated part of its manage-
appointed the following committees from among its mem-
ment duties to the CEO and, in accordance with the re-
bers to provide recommendations and advice:
commendations of the Corporate Governance Code and
CORPORATE
GOVERNANCE AND
SUSTAINABILITY
COMMITTEE
11
meetings held by
the Committee in
2020, in 4 of which
it addressed issues
connected with
climate and their
impact on strategies
and the associated
approaches to
implementation
CONTROL
AND RISK
COMMITTEE
12
meetings held by
the Committee in
2020, in 5 of which
it addressed issues
connected with
climate and their
impact on strategies
and the associated
approaches to
implementation
› A majority of its members are independent directors and for all of 2020 it was composed of the
Chairman of the Board of Directors and two independent directors.
› It assists the Board of Directors in assessment and decision-making activities concerning the
corporate governance of the Company and the Group and sustainability, including climate
change issues and the interaction of the Group with all stakeholders.
› With regard to sustainability issues, it examines:
– the guidelines of the Sustainability Plan, including the climate objectives set out in the plan
and the approach to implementing the sustainability policy;
– the general approach of the Sustainability Report, which includes the Non-Financial State-
ment, and the structure of its content as well as the comprehensiveness and transparency
of the disclosures – including with regard to climate change – provided in that document,
issuing a prior opinion to the Board of Directors, which is called upon to approve that do-
cument.
› It is composed of non-executive directors, the majority of whom (including its Chairman) are
independent. For all of 2020 it was made up of four independent directors.
› It has the task of supporting the assessments and decisions of the Board of Directors relating
to the internal control and risk management system, as well as those relating to the approval of
periodic financial reports. In particular, it issues its prior opinion to the Board of Directors, inter
alia: (i) on the guidelines of the internal control and risk management system, so that the main
risks concerning Enel and its subsidiaries – including the various risks that may be relevant from
the perspective of medium- to long-term sustainability – are correctly identified and adequa-
tely measured, managed and monitored; (ii) on the degree of compatibility of the risks referred
to in point (i) above with company management consistent with the strategic objectives identi-
fied; and (iii) on the adequacy of the internal control and risk management system with respect
to the characteristics of the Company and the risk profile assumed, as well as the effectiveness
of the system itself.
› It also examines the content of the Sustainability Report, which includes the Non-Financial Sta-
tement relevant for the purposes of the ICRMS and contains corporate disclosures on climate
issues, issuing a prior opinion on these aspects to the Board of Directors, which is called upon
to approve that document.
3838
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements › It is composed of non-executive directors, the majority of whom (including its Chairman) are
independent. For all of 2020 it was made up of four independent directors.
› It supports the Board of Directors in evaluations and decisions relating to the size and compo-
sition of the Board itself, as well as the remuneration of directors and key management person-
nel. In this regard, the remuneration policy for 2020 provides that a significant portion of the
short- and long-term variable remuneration of the Chief Executive Officer/General Manager
and key management personnel shall be linked to sustainability-related performance objecti-
ves. In particular, with regard to the long-term variable component of the remuneration of the
Chief Executive Officer/General Manager and key management personnel, in the 2020 Long-
Term Incentive Plan, starting from 2020, an additional ESG target was introduced concerning
the ratio between consolidated net installed renewables capacity and the total consolidated
net installed capacity, in line with the provisions for SDG-linked bond issues by Enel linked to
SDG 7 (Affordable and Clean Energy). Furthermore, the Long-Term Incentive Plan retains the
reduction of specific carbon dioxide emissions among the performance objectives, in line with
the Group’s decarbonization strategy, which provides for the progressive reduction of CO2
emissions in line with the Paris Agreement. As regards the short-term variable component of
the remuneration of the Chief Executive Officer/General Manager, the ESG target concerning
the further improvement of safety parameters in the workplace was retained in the remunera-
tion policy for 2020 and its weight was increased. Furthermore, in light of the state of the CO-
VID-19 health emergency, a new performance target was introduced that measures the Group’s
ability to remotely manage company activities where possible, guaranteeing service continuity
and excellent levels of operational efficiency.
› It is composed of independent non-executive directors. For all of 2020 it was made up of four
independent directors.
› It performs the functions provided for in the relevant CONSOB regulations and in the specific
Enel procedure for transactions with related parties, essentially issuing in particular reasoned
opinions on the interest of Enel – and any direct or indirect subsidiary that may be involved – in
carrying out transactions with related parties, expressing its assessment of the benefits and
substantive appropriateness of the associated conditions, subject to receiving timely and com-
prehensive information on the transaction.
It is charged with overseeing:
› compliance with the law and the bylaws, as well as compliance with the principles of sound
administration in carrying out corporate activities;
› the financial reporting process and the appropriateness of the organizational structure, the
internal control system and the administrative-accounting system of the Company;
› the statutory audit of the annual accounts and the consolidated accounts, as well as the inde-
pendence of the Audit Firm;
› the approach adopted in implementing the corporate governance rules envisaged by the Cor-
porate Governance Code.
NOMINATION AND
COMPENSATION
COMMITTEE
12
meetings held
in 2020
RELATED PARTIES
COMMITTEE
4
meetings held
in 2020
BOARD
OF STATUTORY
AUDITORS
27
meetings held
in 2020
39
Integrated Annual Report 2020 CHAIRMAN
OF THE BOARD OF
DIRECTORS
CHIEF EXECUTIVE
OFFICER
› The Chairman is vested by the bylaws with the powers to represent the Company and to sign
on its behalf.
› Presides over Shareholders’ Meetings.
› Convenes the meetings of the Board of Directors, establishes the agenda and presides over its
proceedings, ensuring that sufficient information on the issues being addressed in the agenda
is provided in a timely manner to all members of the Board of Directors and the Board of Sta-
tutory Auditors.
› Ascertains that the Board’s resolutions are carried out.
› Pursuant to a Board resolution of May 15, 2020, the Chairman has been vested with a number
of additional non-executive powers.
› In the exercise of the function of stimulating and coordinating the activities of the Board of
Directors, the Chairman plays a proactive role in the process of approving and monitoring of
corporate and sustainability strategies, which are sharply focused on the decarbonization and
electrification of energy consumption.
› In addition, during 2020 the Chairman also chaired the Corporate Governance and Sustainabi-
lity Committee.
› Like the Chairman of the Board of Directors, the CEO is vested by the bylaws with the powers to
represent the Company and to sign on its behalf, and in addition is vested by a Board resolution
of May 15, 2020 with all powers for managing the Company, with the exception of those that are
otherwise assigned by law, regulation or the bylaws or that the aforesaid resolution reserves for
the Board of Directors.
› In the exercise of these powers, the CEO has defined a sustainable business model, delineating
a strategy to lead the energy transition towards a low-carbon model. The CEO is also respon-
sible for managing the business activities connected with Enel’s efforts in combatting climate
change.
› The CEO reports to the Board of Directors on the activities performed in the exercise of the
powers granted to him, including business activities to maintain Enel’s commitment to address
climate change.
› The CEO represents Enel in various initiatives that deal with sustainability, holding positions of
leadership in international institutions such as the United Nations Global Compact and the Global
Investors for Sustainable Development (GISD) Alliance launched by the United Nations in 2019.
› The CEO has also been designated as the director responsible for the ICRMS.
STATUTORY AUDIT
OF THE ACCOUNTS
› This is performed by a specialized firm entered in the appropriate register of auditors, which is
appointed by the Shareholders’ Meeting on the basis of a reasoned proposal from the Board of
Statutory Auditors.
› In 2020, the Company organized a comprehensive induction program – also taking account of the
significant change in the Board membership following the appointment of the Board of Directors
approved by the Shareholders’ Meeting of May 14, 2020 – in order to provide the directors with an
understanding of the sectors in which the Group operates, including issues related to sustainability.
› At the end of 2020 and during the first two months of 2021, the Board of Directors carried out,
with the assistance of a specialized independent advisor, an assessment of the size, composition
and functioning of the Board and its committees (the “board review”), in line with the most advan-
ced corporate governance practices accepted at the international level and incorporated within the
Corporate Governance Code. The board review was also carried out using a “peer review” approach,
i.e. evaluating not only the operation of the body as a whole, but also the style and substance of the
contribution made by each of its members, and it was extended to include the Board of Statutory
GOOD CORPORATE
GOVERNANCE
PRACTICES
4040
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Auditors. The board review also specifically sought to verify the directors’ perception of the Board’s
involvement with sustainability issues and the integration of sustainability into corporate strategy.
› The Board of Directors and the Board of Statutory Auditors have approved, each within their own
sphere of competence, specific diversity policies that set out the characteristics considered opti-
mal for the members of these bodies, so that each can exercise their duties most effectively, taking
decisions that can effectively draw on the contribution of a plurality of qualified points of view, able
to examine the issues under discussion from different perspectives. The policy approved by the Bo-
ard of Directors establishes that with regard to the types of diversity and the associated objectives:
– the optimal composition of Board members should provide for a majority of independent
directors;
– even when the regulatory provisions on gender balance expire, it is important to continue to
ensure that at least one-third of the Board of Directors, both at the time of appointment and
during its term of office, shall be made up of directors of the least represented gender;
– the international scope of the Group’s activities should be taken into consideration, ensu-
ring that at least one-third of directors should have adequate experience in the international
arena, which is also considered useful for preventing the standardization of opinions and the
emergence of “group thought”;
– in order to achieve a balance between the need for continuity and renewal in management, it
would be necessary to ensure a balanced combination of people of differing seniority – and
age – within the Board of Directors;
– non-executive directors should have a management and/or professional and/or academic
and/or institutional background such as to create a diverse and complementary set of skills
and experience.
› In July 2015 the Board of Directors also approved (and subsequently amended in February 2019) a
number of recommendations aimed at strengthening the corporate governance of Enel subsidia-
ries with shares listed on regulated markets and ensuring the implementation of local best practices
in this area by those companies. Among other issues, these recommendations concern the compo-
sition of the management body, with regard to which it is also suggested to integrate a diversity of
professional and management experience and skills, combined, where possible, with a diversity of
gender, age and seniority, without prejudice to the provisions of applicable local legislation.
For more detailed information on the corporate governan-
blished on the Company’s website (http://www.enel.com, in
ce system, please see the Report on Corporate Governan-
the “Governance” section).
ce and Ownership Structure of Enel, which has been pu-
41
Integrated Annual Report 2020 ENEL
ORGANIZATIONAL
MODEL
C
ENEL GROUP CHAIRMAN
M. Crisostomo
CEO
ENEL GROUP CEO
F. Starace
HLD
Holding
Function
ADMINISTRATION, FINANCE AND CONTROL
A. De Paoli
COMMUNICATIONS
R. Deambrogio
INNOVATION AND SUSTAINABILITY
E. Ciorra
GLOBAL PROCUREMENT
F. Di Carlo
PEOPLE AND ORGANIZATION
LEGAL AND CORPORATE AFFAIRS
G. Fazio
AUDIT
S. Fiori
GLOBAL DIGITAL SOLUTIONS
C. Bozzoli
CR Country
and Region
GBL
Global
Infrastructure
and Networks
A. Cammisecra
Global
Business Line
Global
Trading
Global Power
Generation
Enel X
S. Bernabei
F. Venturini
ITALY
C. Tamburi
IBERIA
J. Bogas Gálvez
EUROPE
S. Mori
AFRICA, ASIA AND OCEANIA
S. Bernabei
NORTH AMERICA
E. Viale
LATIN AMERICA
M. Bezzeccheri
4242
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
ADMINISTRATION, FINANCE AND CONTROL
PEOPLE AND ORGANIZATION
C
ENEL GROUP CHAIRMAN
M. Crisostomo
HLD
Holding
Function
A. De Paoli
COMMUNICATIONS
R. Deambrogio
INNOVATION AND SUSTAINABILITY
E. Ciorra
GLOBAL PROCUREMENT
F. Di Carlo
CR Country
and Region
CEO
ENEL GROUP CEO
F. Starace
LEGAL AND CORPORATE AFFAIRS
G. Fazio
AUDIT
S. Fiori
GLOBAL DIGITAL SOLUTIONS
C. Bozzoli
GBL
Global
Infrastructure
and Networks
A. Cammisecra
Global
Business Line
Global
Trading
Global Power
Generation
Enel X
S. Bernabei
F. Venturini
ITALY
C. Tamburi
IBERIA
J. Bogas Gálvez
EUROPE
S. Mori
S. Bernabei
NORTH AMERICA
E. Viale
LATIN AMERICA
M. Bezzeccheri
AFRICA, ASIA AND OCEANIA
The Enel Group structure is organized into a matrix that comprises:
GLOBAL BUSINESS
LINES
The Global Business Lines are responsible for managing and developing assets, optimizing their per-
formance and the return on capital employed in the various geographical areas in which the Group
operates. The Business Lines are also tasked with improving the efficiency of the processes they ma-
nage and sharing best practices at the global level. The Group, which also draws on the work of an In-
vestment Committee,(3) benefits from a centralized industrial vision of projects in the various Business
Lines. Each project is assessed not only on the basis of its financial return but also in relation to the
best technologies available at the Group level, which reflect the new strategic line adopted, explicitly
integrating the SDGs within our financial strategy and promoting a low-carbon business model. Fur-
thermore, each Business Line contributes to guiding Enel’s leadership in the energy transition and
in the fight against climate change, managing the associated risks and opportunities in its area of
competence. In 2019, Global Power Generation was created with the merger of Enel Green Power and
Global Thermal Generation to confirm the Enel Group’s leading role in the energy transition, pursuing
an integrated process of decarbonization and the sustainable development of renewables capacity.
In addition, the Grid Blue Sky project was launched. Its objective is to innovate and digitalize infra-
structures and networks in order to make them an enabling factor for the achievement of the Climate
Action objectives, thanks to the progressive transformation of Enel into a platform-based group.
REGIONS AND
COUNTRIES
Countries and Regions are responsible for managing relationships with institutional bodies and re-
gulatory authorities, as well as selling electricity and gas, in each of the countries in which the Group
is present, while also providing staff and other service support to the Business Lines. They are also
charged with promoting decarbonization and guiding the energy transition towards a low-carbon
business model within their areas of responsibility.
The following functions provide support to Enel’s business operations:
GLOBAL SERVICE
FUNCTIONS
The Global Service Functions are responsible for managing information and communication tech-
nology activities and procurement at the Group level. They are also responsible for adopting sustai-
nability criteria, including climate change issues, in managing the supply chain and developing digital
solutions to support the development of enabling technologies for the energy transition and the fight
against climate change.
HOLDING COMPANY
FUNCTIONS
The Holding Company Functions are responsible for managing governance processes at the Group
level. The Administration, Finance and Control function is also responsible for consolidating scenario
analysis and managing the strategic and financial planning process aimed at promoting the decarbo-
nization of the energy mix and the electrification of energy demand, key actions in the fight against
climate change.
(3) The Group Investment Committee is made up of the heads of Administration, Finance and Control, Innovability, Legal and Corporate Affairs, Global Procure-
ment, and the heads of the Regions and the Business Lines.
43
Integrated Annual Report 2020
INCENTIVE
SYSTEM
• funds from operations/consolidated net financial
debt;
• managing COVID-19 emergency: implementing re-
mote operations;
• workplace safety;
– for key management personnel, the associated MBOs
establish objective annual goals connected with their
Enel’s remuneration policy for 2020, which was adopted by
business area, differentiated by the functions and re-
the Board of Directors acting on a proposal of the Nomina-
sponsibilities assigned to them;
tion and Compensation Committee and approved by the
› a long-term variable component linked to participation in
Shareholders’ Meeting of May 14, 2020, was formulated on
specific long-term incentive plans (LTI Plans). The adop-
the basis of national and international best practice, the
tion of long-term incentive plans for the management
guidance provided by the favorable vote of the Sharehol-
personnel of Enel SpA and/or its subsidiaries pursuant to
ders’ Meeting of May 16, 2020 on the remuneration policy
Article 2359 of the Civil Code has been approved annual-
for 2019 as well as the results of a benchmarking exercise
ly by the Shareholders’ Meeting of Enel SpA since 2019.
on the remuneration of the Chairman of the Board of Di-
Each of the incentive plans approved envisages, subject
rectors, the Chief Executive Officer/General Manager and
to the achievement of specific performance targets, the
the non-executive directors of Enel for the 2017-2019 term
grant of ordinary shares of the Company (“Shares”) to the
conducted by the independent consultant Willis Towers
respective beneficiaries, as discussed in note 49 of the
Watson.
consolidated financial statements, which readers are in-
In line with the recommendations of the Corporate Go-
vited to consult for more information on incentive plans
vernance Code for listed companies (2018 edition), Enel’s
and the share buyback programs in support of those
remuneration policy for 2020 is designed to attract, moti-
plans. For 2020, this component is linked to participation
vate and retain personnel possessing the professional skills
in the 2020 LTI Plan.
most suitable to successfully managing the Company, in-
centivizing achievement of our strategic objectives and en-
For more information on the 2020 Remuneration Policy,
suring sustainable growth. It is also structured so as to align
please see Enel’s Report on Remuneration Policy for 2020
the interests of management with the priority objective of
and Compensation Paid in 2019, which is available on the
creating sustainable value for shareholders in the medium/
corporate website (www.enel.com).
long term and promoting the Enel mission and our corpo-
For more information on the LTI Plans, please see the infor-
rate values.
mation document prepared pursuant to Article 84-bis of
The 2020 remuneration policy adopted for the Chief Exe-
the CONSOB Regulation issued with Resolution no. 11971
cutive Officer/General Manager and key management per-
of May 14, 1999 (the “Issuers Regulation”), which is available
sonnel envisages:
› a fixed component;
to the public in the section of Enel’s website (www.enel.
com) dedicated, respectively, to the Shareholders’ Meeting
› a short-term variable component (MBO) that will be paid
of May 14, 2020 (2020 LTI Plan) and that of May 16, 2019
out on the basis of achievement of specific performance
(2019 LTI Plan).
objectives. More specifically:
– for the Chief Executive Officer/General Manager, the
2020 MBO establishes the following annual objectives:
• consolidated ordinary profit;
• Group operating expenditure;
4444
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements VALUES AND
PILLARS OF
CORPORATE
ETHICS
A robust system of ethics underlies all activities of the Enel
Group. This system is embodied in a dynamic set of rules
constantly oriented towards incorporating national and
international best practices that everyone who works for
and with Enel must respect and apply in their daily activi-
ties. The system is based on specific compliance programs,
including: the Code of Ethics, the Compliance Model under
Legislative Decree 231/2001, the Enel Global Compliance
Program, the Zero-Tolerance-of-Corruption Plan, the Hu-
man Rights Policy and any other national compliance mo-
dels adopted by Group companies in accordance with local
laws and regulations.
Code of Ethics
rate conduct on the basis of standards aimed to ensure the
maximum transparency and fairness with all stakeholders.
The Code of Ethics is valid in Italy and abroad, taking due
account of the cultural, social and economic diversity of
the various countries in which the Group operates. Enel
also requires that all associates and other investees and its
main suppliers and partners adopt conduct that is in line
with the general principles set out in the Code. Any viola-
tions or suspected violations of Enel Compliance Programs
can be reported, including in anonymous form, through a
single Group-level platform (the “Ethics Point”). In 2020,
the Code was updated to reflect the main international
measures concerning human rights and align the duties of
the units responsible for updating the document with cur-
rent organizational arrangements. In particular, the Code
expresses our commitments and ethical responsibilities
in the conduct of business, regulating and standardizing
corporate conduct in accordance with standards based on
maximum transparency and fairness towards all stakehol-
ders. In February 2021, the Board of Directors approved a
further update of the Code of Ethics in order to align its
content with the current context, including the current cor-
porate mission and the United Nations Sustainable Deve-
lopment Goals, the current organizational structure and the
system of procedures, as well as national and international
best practices in the areas of diversity and privacy.
With regard to the Code of Ethics, the following table re-
In 2002, Enel adopted a Code of Ethics, which expresses
ports the average number of training hours per person, to-
the Company’s ethical responsibilities and commitments in
tal reports of violations received and violations confirmed.
conducting business, governing and standardizing corpo-
Average number of hours of training per person
Total reported violations of the Code of Ethics received
Confirmed violations of the Code of Ethics (1)
- of which violations involving conflicts of interest/bribery
no.
no.
no.
no.
2020
38.6
151
26
2
2019
42.3
166
38
10
Change
(3.7)
(15)
(12)
(8)
(1) The analysis of reports received in 2019 was completed in 2020. For that reason, the number of verified violations for 2019 was restated from 36 to 38. The
two additional violations are attributable to minor cases of private conflicts of interest in Brazil.
Compliance Model
(Legislative Decree
231/2001)
committed by their directors, managers or employees on
behalf of or to the benefit of the company. Enel was the
first organization in Italy to adopt, back in 2002, this sort of
compliance model that met the requirements of Legislative
Decree 231/2001 (also known as “Model 231”). It has been
constantly updated to reflect developments in the appli-
Legislative Decree 231 of June 8, 2001 introduced into
cable regulatory framework and current organizational ar-
Italian law a system of administrative (and de facto crimi-
rangements.
nal) liability for companies for certain types of offenses
45
Integrated Annual Report 2020 Enel Global
Compliance Program
(EGCP)
The Enel Global Compliance Program for the Group’s fo-
reign companies was approved by Enel in September 2016.
It is a governance mechanism aimed at strengthening the
Group’s ethical and professional commitment to preven-
ting the commission of crimes abroad that could result in
criminal liability for the company and do harm to our re-
putation. Identification of the types of crime covered by
the Enel Global Compliance Program – which encompas-
ses standards of conduct and areas to be monitored for
preventive purposes – is based on illicit conduct that is
generally considered such in most countries, such as cor-
ruption, crimes against the government, false accounting,
money laundering, violations of regulations governing sa-
fety in the workplace, environmental crimes, etc.
Training in anti-corruption policies and procedures
Training in anti-corruption policies and procedures by geographical
area
Italy
Iberia
Latin America
Europe
Africa, Asia and Oceania
North America
Zero-Tolerance-
of-Corruption Plan
and the anti-bribery
management system
In compliance with the tenth principle of the Global Compact,
according to which “businesses should work against corrup-
tion in all its forms, including extortion and bribery”, Enel is
committed to combating corruption. For this reason, in 2006
we adopted the “Zero-Tolerance-of-Corruption Plan” (ZTC
Plan) confirming the Group’s commitment, as described in
both the Code of Ethics and the Model 231, to ensure pro-
priety and transparency in conducting company business and
operations and to safeguard our image and positioning, the
work of our employees, the expectations of shareholders and
all of the Group’s stakeholders. Following receipt of the ISO
37001 anti-corruption certification by Enel SpA in 2017, the
37001 certification plan has gradually been extended to the
main Italian and international subsidiaries of the Group.
2020
26,660
40.0
2019
19,798
29.0
Change
6,862
11.0
34.7%
37.9%
47.7
20.2
26.8
80.7
28.4
56.7
35.3
33.9
18.1
24.4
6.8
43.5
12.4
-13.7
8.7
56.3
21.6
13.2
35.1%
-40.4%
48.1%
-
-
30.3%
no.
%
%
%
%
%
%
%
Human Rights Policy
suppliers and business partners as part of its business rela-
tionships.
In order to give effect to the United Nations Guiding Principles
on Business and Human Rights, in 2013 the Enel SpA Board
of Directors approved the Human Rights Policy, which was
subsequently approved by all the subsidiaries of the Group.
This policy sets out the commitments and responsibilities
in respect of human rights on the part of the employees of
Enel SpA and its subsidiaries, whether they be directors or
employees in any manner of those companies. Similarly, with
this formal commitment, Enel explicitly becomes a promoter
of the observance of such rights on the part of contractors,
Enel conducts specific human rights due diligence for the
entire value chain in the various countries in which it opera-
tes. The process was developed in accordance with the main
international standards such as the United Nations Guiding
Principles on Business and Human Rights, the OECD guideli-
nes and international best practices. During the due diligence
process, opportunities for improvement were identified and
incorporated in specific action plans for each country in whi-
ch we operate, as well as an improvement plan to be managed
centrally in order to harmonize and integrate processes and
4646
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements policies developed globally and applied locally. In total, around
ne conditions and compliance with regulatory, remuneration,
170 actions have been planned, covering 100% of the opera-
contribution, insurance and tax requirements. Suppliers are
tions and sites.
also expressly asked to undertake to adopt and implement
the principles of the Global Compact and to ensure that these
With regard to the sustainability of the supply chain, Enel eva-
are satisfied in the performance of all their activities, whether
luates suppliers’ human rights performance, regardless of the
performed by their employees or subcontractors. In addition,
level of risk, through a dedicated questionnaire in which the
suppliers must undertake to comply with the principles set
characteristics of potential suppliers are analyzed with regard
out in Enel’s Code of Ethics, or in any case to be inspired by
to inclusion and diversity, protection of workers’ privacy, veri-
principles equivalent to those adopted by Enel in the mana-
fication of their supply chain, forced or child labor, freedom of
gement of their business. Finally, it is specified that the provi-
association and collective bargaining, and application of fair
sions of International Labor Organization conventions or ap-
working conditions (including adequate wages and working
plicable legislation in the country in which the activities must
hours). During 2020, the questionnaire was supplemented
be carried out, if more restrictive, shall apply.
with additional questions in order to obtain a more accurate
The contracts govern working conditions in their entirety and
assessment of the potential supplier. Among other things, the
clearly state all the terms included in the contracts, detailing
Group requires its contractors/providers and subcontractors
workers’ rights (working hours, wages, overtime, allowances
to respect and protect internationally recognized human ri-
and benefits). The terms are translated into the workers’ nati-
ghts and comply with ethical and social obligations regarding:
ve language and are supported with information contained in
the protection of children and women in the labor force, equal
documents agreed with employees. Human resource mana-
treatment, the prohibition of discrimination, freedom of trade
gement systems and procedures ensure that minors are not
unions and the right of association and representation, the
present in the workforce. Internships and work experience
prohibition of forced labor, the protection of health, safety
projects are also implemented.
and the environment, the safeguarding of health and hygie-
47
Integrated Annual Report 2020 3
STRATEGY
AND RISK
MANAGEMENT
S
N
O
I
T
A
R
E
P
O
N
O
T
R
O
P
E
R
4848
Long-term planning
The energy transition is revolutionizing
not only the energy sector but all econo-
mic spheres in a world in which the role of
electricity will be increasingly important in
the medium and long term.
The new 2021-2023 Business Plan
Within the broader ambitions for the po-
sitioning of the Group by 2030, the 2021-
2023 Business Plan is ideally positioned
as the first effective step on a journey that
spans the entire decade.
Reference scenarios
Assessing the impacts of climate chan-
ge and the energy transition is crucial
for long-term planning. To this end, the
Group has created an comprehensive fra-
mework and a process that can translate
data into useful information to maximize
opportunities and mitigate risks.
49
Integrated Annual Report 2020 GROUP
STRATEGY
They prepare dedicated workshops or strategic options
to be discussed. This process enables the correct defi-
nition of the opportunities associated with each specific
topic (including any operational, economic or financial
impacts) and the eventual roadmap for implementing the
necessary initiatives. These outputs are then discussed
The determination of the Group’s strategy is based on mul-
by top management in dedicated meetings. These mee-
tiple factors, beginning with an evaluation of the external
tings include one special event, called Top Team Offsite,
environment and its evolution. In particular, the following
usually scheduled in June, where the most relevant topics
analyses are performed:
are discussed by all top management. Following this me-
› an analysis of macroeconomic, energy and climate sce-
eting, some of the conclusions are incorporated in the
narios: assessments and projections at the global and
Group’s long-term planning, then become part of the
local levels to identify the main macroeconomic, energy
storytelling and are presented to the Board of Directors
and climate drivers in the short, medium and long term;
at the Strategic Summit, usually organized in October in
› competitive landscape analysis: a comparison of the
order to agree the annual update of the Strategic Plan.
economic, financial, industrial, ESG (Environmental, So-
This type of framework enables adequate governance of
cial & Governance) performance of companies in the
the treatment of strategic issues, while at the same time
utilities sector and other industries (for example, auto-
ensuring swift identification of emerging trends and the
motive, technology, oil & gas) in order to monitor, shape
necessary cross-business involvement for a complete
and support the Group’s competitive advantage and le-
analysis of complex and interdependent issues in the
adership position;
presence of an organizational structure based on the
› industrial vision: an overview of the macro-trends in new
Country/Business Line/staff matrix;
technologies affecting the company’s business, with an
› strategic planning process: this process, which is driven
assessment of the potential impacts on the Group’s bu-
on an ongoing basis by feedback from the strategic dia-
siness based on a broad internal and external collabo-
logue, transforms the information to be processed into
rative effort to identify actions to prevent, adapt to and
quantitative models in order to obtain an overview of the
manage disruption and changes in our business.
industrial, economic and financial evolution of the Group,
The analysis of what is happening and what could happen
supplemented by possible extraordinary transactions
in the external environment underpins the phase of desi-
and active portfolio management operations. The eva-
gning our strategic options and consequent positioning
luation of strategic options over a time horizon extends
and planning, which is structured into the following main
beyond that used in industrial planning, with (i) the defini-
activities:
tion and the quantitative and qualitative development of
› strategic dialogue: the definition of the Group’s strate-
alternative macroeconomic, energy and climate scena-
gy is based on a continuous process of active dialogue
rios against which overall strategy can be assessed, and
throughout the year, through which the issues relevant
(ii) analysis based on stress testing for various factors, in-
for the evolution and growth of the Group are identi-
cluding the evolution of the industrial sector, technology,
fied, analyzed, discussed and addressed. This dialogue is
competitive structure and policies;
part of a strategic design phase, where communication
› long-term positioning: the analyses and decisions de-
between executives in different businesses makes a va-
scribed in the previous points generate information for
luable contribution to developing new strategic options,
long-term positioning on multiple topics and the asses-
with an emphasis on the need for cultural or organiza-
sment of ambitions and targets for the Group;
tional change and synergies between businesses. This
› analysis of ESG factors and assessment of materiality in
process, which is coordinated at the Group level, first
the field of sustainability: the method Enel uses to per-
involves the identification of topics through consensus
form ESG and materiality analysis was developed on the
among top managers and approval by the CEO. The next
basis of the guidelines set out in numerous international
phase of the strategic dialogue process involves the
standards (for example, the Global Reporting Initiative,
structuring of working groups with all the professional
UN Global Compact, SDG Compass, etc.), with the aim of
expertise necessary for the proper analysis of each topic.
identifying and evaluating priorities for stakeholders and
5050
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements correlating them with Group strategy (for more informa-
value for all stakeholders, benefiting from the opportunities that
tion, please see the materiality analysis in the “Basis of
are emerging from the energy transition while at the same time
Presentation” chapter).
limiting the related risks.
The strategy of the Enel Group has proven its ability to cre-
The Group has therefore again confirmed its strategic direction
ate sustainable long-term value, integrating the themes of
based on the trends connected with the energy transition. The
sustainability and close attention to climate change issues
use of capital is in fact focused on decarbonization, through the
while simultaneously ensuring a steady increase in profi-
development of renewable generation assets, on the enabling
tability.
infrastructures linked to the development of networks and on
The Group is among the leaders guiding the energy transi-
the implementation of platform models, exploiting technologi-
tion through the decarbonization of electricity generation
cal and digital evolution, which will foster the electrification of
and the electrification of energy consumption, which re-
energy consumption and the development of new services for
present opportunities both to increase value creation and
customers. All of this is aimed at achieving the SDGs of the Uni-
to contribute positively to more rapid achievement of the
ted Nations. Our ambition is to accelerate the processes related
Sustainable Development Goals set by the United National
to decarbonization and electrification to enable achievement of
(SDGs) in the 2030 Agenda.
the objectives of limiting global warming in line with the Paris
Agreement.
Strategic Plan
The sustainability strategy developed in recent years and the
integrated business model have enabled the Group to create
Energy
transition
Decarbonization,
electrification, digital
and platforms
CREATING
SUSTAINABLE VALUE
IN THE LONG TERM
The energy transition, impelled by the fight against climate
Precisely because of this transformation, investment in
change and characterized by the trends in the decarboni-
the energy sector is expected to surge, tripling its annual
zation and electrification of consumption, is revolutionizing
value in 2020-2040 compared with 2010-2019.
not only the energy sector but all economic areas in a world
in which the role of electricity will be increasingly significant.
51
GROWTH ACCELERATORSIntegrated Annual Report 2020 YEARLY AVERAGE
INVESTMENTS
($ trillions)
YEARLY AVERAGE
INVESTMENTS BY TYPE
($ trillions)
INVESTMENTS SHARE
2020-2040
(%)
1.2
0.6
~0.7
S
E
L
B
A
W
E
N
E
R
S
K
R
O
W
T
E
N
E
S
U
D
N
E
Y
C
N
E
I
C
I
F
F
E
>4x
0.3
0.3
>2x
>5x
~0.1
45%
24%
25%
2.6
~3x
0.9
2010-2019
2020-2040
2010-2019
2020-2040
Source: IEA, World Energy Investments 2020 and IEA, World Energy Outlook 2020, Sustainable Develpoment Scenario.
In this context, it is essential to extend the strategic vision
gly complex systems, which will include a growing number
to the medium/long term. Driven by this need, in Novem-
of distributed generation assets with a consequently more
ber 2020 the Group presented a new Strategic Plan with
active role being played by final customers. A platform-ba-
a vision that extends to 2030, placing the acceleration of
sed and multi-layer digital model (discussed in the “Busi-
the energy transition at the center of our strategy, together
ness model” section) that connects data and solutions will
with sustainable and profitable growth to create significant
therefore be essential to successfully complete this tran-
shared value for customers, society and the environment,
sformation.
as well as an attractive return for shareholders over time.
In order to respond more effectively to the expected ac-
ally positioned to fully benefit from emerging opportunities,
celeration of investments, and to contribute to more rapid
capturing the value that will become available to accelerate
Thanks to this comprehensive approach, the Group is ide-
achievement of the main objectives necessary to fight cli-
the energy transition.
mate change, the Enel Group intends to leverage its pro-
gress in digitalization as well as its positioning as (i) the lea-
In this way, the Group plans to mobilize investments of €190
ding private operator in the renewables sector worldwide,
billion in the period 2021-2030, promoting decarboniza-
with 48.6 GW of capacity under management;(1) (ii) the wor-
tion, the electrification of consumption and the develop-
ld’s leading private grid operator, with over 74 million end
ment of platforms to create shared and sustainable value
users; and (iii) the private operator with the largest retail cu-
for all stakeholders and profitability in the medium and long
stomer base worldwide, with around 70 million customers
term. The Group expects to directly invest around €160 bil-
worldwide.
lion, of which over €150 billion through the Ownership busi-
ness model and around €10 billion through the Stewardship
Thanks to platform-based models, in this decade utilities
business model, while mobilizing another €30 billion from
will strengthen their leadership role at the top of increasin-
third parties.
(1)
In addition to installed capacity, this includes the capacity of associates or joint ventures (about 3.6 GW).
5252
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements
Integrated Annual Report 2020
53
INVESTMENTS ACTIVATED
FOR THE ENERGY TRANSITION
(€ bn)
~30
~160
0
9
1
~
l
a
t
o
T
I
P
H
S
R
E
N
W
O
L
E
D
O
M
I
P
H
S
D
R
A
W
E
T
S
L
E
D
O
M
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>150
€ bn
||||||||||
|
|||||||||
~30
~10(1)
~40
€ bn
2021-2030
Enel
Third parties
(1) Includes equity injections. (2) Includes managed and leased e-buses.
Consolidated
renewables capacity
(GW)
2020
2030
45
~120
RAB (€ bn)
~42
~70
% Smart meters
60%
~100%
Renewables capacity
managed (GW)
Electric buses(2) (no.)
Demand response
(GW)
Homes connected
(mn)
2020
3.6
912
6
11.1
2030
~25
>10k
~20
34
This level of investment will support achievement of the
model, almost half will be dedicated to Global Power Genera-
long-term ambitions that the Enel Group has identified,
tion, with a total of around €65 billion allocated to renewable
namely:
energy, which is expected to enable the Group to add some 75
› becoming a “Renewable Supermajor”, tripling the re-
GW of renewables capacity, balanced between solar and wind,
newables capacity operated from around 49 GW in 2020
to the current consolidated total of 45 GW, for about 120 GW
to around 145 GW in 2030, thanks to the planned invest-
of total renewables capacity by 2030 (2.7 times current levels).
ments and the joint action of Ownership and Steward-
The investments will mainly be focused on the countries in
ship models, to reach a global market share of more than
which the Group has an integrated presence, but the involve-
4%;
ment of a variety of areas will enable natural derisking of the
› becoming a world leader in networks for reliability, quali-
volatility of renewable resources. To achieve this, the Group will
ty of service and efficiency. The investments are intended
capitalize on a pipeline of renewable projects (some 206 GW in
to make grids more resilient and increase the degree of
December 2020), combined with a global platform-based mo-
digitalization to enable more effective and efficient ma-
del for business development, engineering and construction
nagement and transform distributors into real system
and operation and maintenance activities. In addition, the
operators;
Group plans to invest an additional €5 billion in the hybridiza-
› becoming the reference energy partner for all custo-
tion of renewable sources and storage systems, the potential
mer segments (domestic customers, offices, industrial
of which is expected to reach around 20 TWh by 2030. Signi-
customers, cities, etc.), promoting decarbonization, the
ficant opportunities will also come from the green hydrogen
electrification of consumption and circularity, enabling
segment, in which the Group plans to integrate electrolyzers
the creation of benefits in terms of emissions, costs and
into renewables plants that produce electricity for direct sale
efficiency.
Long-term planning
Consistent with the above vision, as regards the approximately
€150 billion of investments planned in the Ownership business
or for dispatching services, while also selling green hydrogen
to industrial customers. The Group plans to increase its green
hydrogen capacity to over 2 GW in 2030.
The increase in renewables capacity and the simultaneous
reduction in thermal capacity, which includes the early clo-
sure of coal plants by 2027, represent the two main strate-
gic levers that the Group intends to use to decarbonize its
generation mix.
5454
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements
CAPEX BY GBL
>150
€ bn
|
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4
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6
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%
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2021-30
>150 € bn
3 %
|||||||||||
5%
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%
6
4
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VALUE CREATION
KPIs
EBITDA/
Capex (%)
2021-2030
~11%
RAB/End user
+35%
B2C customer
value (€/cl/y)
2x
Renewables
Networks
Retail
Conventional generation
In 2019, Enel, responding to the call for action from the Uni-
the Strategic Plan presented by Enel in November 2020
ted Nations, signed a commitment to act to limit the incre-
describes how the massive investments envisaged throu-
ase in global temperatures to 1.5 °C and be net zero across
its entire value chain by 2050, including both direct (Scope
1) and indirect (Scope 2 and 3) emissions. This objective
gh the Ownership business model are consistent with the
objective of reducing direct emissions to 82 gCO2eq/kWh,
an objective that has been certified by the Science Based
requires not only a sharp acceleration in renewables and
Targets initiative (SBTi) as in line with the 1.5 °C scenario
energy efficiency, but also a complete rethinking of the
set out in the Paris Agreement. In particular, investments
economic model and investment planning. With regard to
in new renewables capacity will enable the achievement of
the latter, in particular, future investments will be aimed at
certain Key Performance Indicators (KPIs): renewable sour-
achieving the objectives that Enel has set itself in terms of
ces will account for more than 80% of total capacity and
reducing greenhouse gas emissions in order to limit the
about 80% of electricity generation in 2030. This will allow
increase in global temperatures to 1.5 °C. With particular
the share of “emission-free” generation to grow from 65%
reference to investment planning for the next 10 years,
SCOPE 1(1)
(gCO2eq/kWh)
82
-80%
2017
2019
2020
2023
2030
125
N
O
I
T
A
Z
I
N
O
B
R
A
C
E
D
L
L
U
F
2050
SCOPE 3(2)
(MtCO2)
25.3
-16%
Previous SBTi target
21.2
(1)
(2)
Includes all direct emissions (GHG Scope 1), of which 99% are attributable to electricity generation only, in line with the 1.5 °C scenario of the Science
Based Targets initiative.
Includes indirect emissions (GHG Scope 3 – Use of Sold Products) associated with the sale of gas on the retail market by 2030, in line with the 2 °C
scenario of the Science Based Targets initiative.
55
414298214148Integrated Annual Report 2020
in 2020 to about 85% in 2030 and, consequently, to cut di-
rect emissions from 214 gCO2eq/kWh in 2020 to 82 gCO2eq/
kWh in 2030.
Accordingly, Enel is acting on the main lever of direct emis-
sions and at the same time rethinking its business model in
a broader sense to act on all other dimensions.
The goal of achieving total decarbonization by 2050 requi-
Investments related to the decarbonization of the gene-
res not only a major acceleration in renewables and energy
ration mix, together with those related to the digitalization
efficiency, but also a complete rethinking of the economic
and efficiency of the distribution grid, as well as to the offer
model in terms of circularity. It is estimated that about 45%
of new services to promote the electrification of consu-
of global emissions are currently associated with the ex-
mption (such as electric mobility or demand response ser-
traction and production of materials, manufacturing, and
vices), will all contribute to the fight against climate change
disposal. This is an area in which action can be taken to
(SDG 13). In fact, Enel expects that approximately 90% of
achieve full decarbonization, as well as positively contribu-
consolidated investments in 2021-2023 will be aimed at
ting to solving a series of further environmental problems
achieving the objectives set by SDG 7 (Affordable and Cle-
connected with resource consumption and waste genera-
an Energy), SDG 9 (Industry, Innovation and Infrastructure)
tion.
and SDG 11 (Sustainable Cities and Communities), thereby
Net-Zero commitment
Enel, as a signatory of the “Business Ambition for 1.5 °C” campaign promoted by the United Nations and other institutions, is
committed to setting a long-term goal to achieve net-zero emissions across the entire value chain by 2050, including both
direct emissions (Scope 1) and indirect emissions (Scope 2 and 3), together with science-based targets in all relevant areas
and in line with the criteria and recommendations of the Science Based Targets initiative (SBTi).
GHG Target
Scope
Climate
scenario
Main drivers and actions to achieve target
Short
term
(2023)
148 gCO2eq/kWh
by 2023
100% of Scope 1
GHG emissions (1)
1.5 °C (2)
> Gradual phase out of 90% of coal-fired capacity in 2021-2023
period (percentage weight of coal capacity in total consolidated
capacity reduced from 10% in 2020 to about 1% in 2023)
Medium-
Long
term
(2030)
82 gCO2eq/kWh
by 2030
(80% reduction
compared with
2017)
100% of Scope 1
GHG emissions (1)
21.2 MtCO2eq
(16% reduction
compared with
2017)
100% of Scope 3
emissions connected with
sale of natural gas on
end-user market (Scope 3,
“use of products sold”)
> Invest €16.8 billion to accelerate the development of renewable
energy by installing 15.4 GW of new renewables capacity in
2021-2023 period, reaching 60 GW of consolidated renewables
capacity by 2023
> Accelerate the exit from coal to 2027 from 2030 (phasing out of
16 GW of coal capacity over 2017-2027)
> Invest €65 billion to accelerate the development of renewable
energy by installing 75 GW of renewables capacity in 2021-2030
period, reaching 120 GW of consolidated renewables capacity by
2030 (3 times installed renewables capacity in the 2017 base year)
> Promote the switch of customers from gas to electricity (especially
residential customers)
> Optimization of the gas portfolio of customers (especially industrial
customers)
1.5 °C,
SBTi
certified
2 °C,
SBTi
certified
Long
term
(2050)
~0 gCO2eq/kWh
by 2050
100% of Scope 1
GHG emissions (1) (3)
1.5 °C (2)
> Aim for the gradual elimination of thermal capacity and achieve
a 100% renewable energy mix
(1) Although Enel constantly monitors Scope 2 emissions and is actively committed to reducing them, the Group has not set a specific reduction target, as they
represented less than 4% of total Scope 1 and Scope 2 emissions in 2017 (base year of the target certified by SBTi). Therefore they are considered marginal and
fall within the exclusion criteria under the SBTi methodology, which sets a margin of 5% on total Scope 1 and Scope 2 emissions.
(2) The target could not be officially validated by SBTi because the targets must cover a minimum of 5 years and a maximum of 15 years from the date the target is
presented to SBTi for official validation. However, they meet the 1.5 °C path established by the SBTi for the electricity services sector (sectoral decarbonization
approach, SDA).
In compliance with the Group’s net-zero commitment, which comprises both direct and indirect emissions, targets will be set for Scope 2 and Scope 3 emissions
in accordance with the Net-Zero Standard under development by SBTi.
(3)
5656
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements all contributing to the fight against climate change (SDG 13
With regard to the Stewardship business model, in 2021-
- Climate Action). Furthermore, it is estimated that between
2030 the Group expects to invest approximately €10 billion
80% and 90% of these investments will be aligned with the
directly, while at the same time mobilizing some €30 billion
criteria of the European taxonomy, given the substantial
in third-party investments, for a total of around €40 billion,
contribution to climate change mitigation.
mainly in renewable energy, fiber optics, electric mobility
In particular, it is estimated that about 46% of investments in
and flexibility services.
2030 relating to the Ownership business model will be dedi-
cated to the Infrastructure and Networks business, with the
In particular, in the Customers sector, the two business
aim of obtaining improvements in terms of service quality and
models will promote customer value in all segments throu-
grid resilience, increasing the number of connections and
gh combined product offering:
increasing the digitalization of the infrastructure. Thanks to
these initiatives, the Group expects to expand the number of
› in the B2C segment, the Group will promote the electrifi-
end users to about 90 million, all equipped with smart meters,
cation of the customer base through an integrated offer
from the current 74 million, of which 60% are equipped with
of power and services offered by Enel X. The volume of
smart meters. The Group’s RAB (Regulatory Asset Base) will
electricity sold on the free market in Europe is expected
reach around €70 billion in 2030, up about 70% from current
to increase by 2.5 times compared with 2020, reaching
levels (around €42 billion). These results will benefit from our
around 100 TWh in 2030 compared with 39 TWh in 2020;
unique operational dimensions, a very high level of expertise in
› in the B2B segment, the Group intends to be a leading
digitalization and the significant value of intellectual property.
energy partner for global and local companies on their
The extensive use of digital platforms in the management of
path towards sustainability and energy efficiency. Tradi-
assets and end users should reduce operating expenses per
tional products, such as PPAs, will be combined with new
user by about 27% in real terms compared with 2020.
services, including flexibility services, solutions for electric
mobility and the enhancement of circularity. The Group’s
The remainder of the investments related to the Owner-
gross margin in B2B operations in Europe is expected to
ship business model, about 5%, will be dedicated to the
reach €1.9 billion in 2030, compared with about €1.1 bil-
Customers sector, and it is expected that, in 2030, it will
lion in 2020, driven by “beyond commodity” services;
produce a net increase in customer value, i.e. the an-
› in the B2G segment, the Group will support city govern-
nual gross margin per customer. The Group will play an
ments in achieving ambitious long-term decarbonization
enabling role in the electrification process, accelerating
and sustainability objectives, through the electrification
the transition of customers towards sustainability and
of public transport, supplementing the product range
energy efficiency, combining its traditional range of servi-
with digital mobility services (such as city analytics), intel-
ces with “beyond commodity” services. This business will
ligent lighting and other advanced services. By 2030, the
benefit from the largest customer base globally, digital
Group expects to increase the number of electric buses
platforms and a growing integrated portfolio of products
to over 10,000 (12 times the number in 2020), while pu-
and services. The Group’s strategy will encompass all seg-
blic lighting points are expected to exceed 4 million in
ments: B2C (business to customer), B2B (business to busi-
2030, up from 2.8 million in 2020 (up 1.5 times). In addi-
ness) and B2G (business to government).
tion, charging points for electric vehicles are expected
CAPEX BY CLUSTER
Enel's direct investments ~10 € bn
~30
~10
~40
€ bn
|
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2021-30
~40 € bn
|||||||||
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|
Renewables
E-transport
Fiber
Flexibility & Other
to increase to over 4 million and demand response solu-
tions to grow by more than three times, to around 20 GW
compared with about 6 GW in 2020.
Across the segments, the progressive digitalization of cu-
stomer relationships, supported by the evolution of digital
management platforms, should produce a substantial re-
duction in costs in real terms.
The strategic vision of an action based on sustainability,
integrated along the entire value chain, will be rewarded by
an increase in the value generated by the Group within the
“sustainability = value” strategic paradigm. It is expected
that the Group’s ordinary EBITDA will achieve a CAGR of
5%-6%, while ordinary net profit will show a CAGR of 6%-
7% between 2020 and 2030.
57
Integrated Annual Report 2020 By promoting decarbonization, electrification and platform
migration processes, the Group also plans to create shared
and sustainable value for all stakeholders. Examples include:
› over €240 billion of gross domestic product in the coun-
The new 2021-2023
Business Plan
tries in which the Group operates, through local invest-
Within the broader ambitions for the positioning of the
ments in decarbonization and electrification;
Group by 2030, the 2021-2023 Business Plan is ideally pla-
› a tripling of service quality levels, with the system avera-
ced as the first step in a growth path spanning the enti-
ge interruption duration index (SAIDI) falling to about 100
re decade. The effect of the ambitions on the long-term
minutes in 2030 from 258.9 minutes in 2020.
Strategic Plan will translate into a decisive increase in both
direct and indirect investments to enable the acceleration
People centricity is one of the pillars of Enel’s sustainability
of decarbonization and electrification trends.
strategy.
In 2021-2023, the Group expects to directly invest around
The Enel Group promotes the economic and social growth
€40 billion, of which €38 billion through the Ownership
of the local communities in which it operates, strengthe-
business model, mainly on expanding networks and re-
ning its commitment to supporting sustainable deve-
newables, and around €2 billion through the Stewardship
lopment: 5 million beneficiaries of quality education in
model, while mobilizing €8 billion in third-party investment.
2015-2030 (SDG 4); 20 million beneficiaries of clean and
These investments will be earmarked for the development
accessible energy in 2015-2030 (SDG 7.1); 8 million bene-
of renewable energy, fiber optics, electric mobility and
ficiaries of decent work and lasting, inclusive and sustai-
flexibility systems.
nable economic growth in 2015-2030 (SDG 8).
This increase in investments of about 36% over the pre-
We pay great attention to our people, developing plans
vious plan, considering the analyses of the various possible
designed to strengthen their roles and skills and provide
transition scenarios in the countries in which Enel opera-
the tools for managing the energy transition, with clear and
tes, will put the Group in an advantageous position to re-
precise goals in terms of performance assessment and bu-
spond to any acceleration in the energy transition.
siness climate. We work to promote upskilling and reskil-
ling programs as well as the development of digital skills.
The Group also aims to promote diversity and inclusion by
having 50% female participation in selection processes by
2023.
These effective objectives and actions are also confirmed
by the signing in July 2019 of the “just transition” commit-
ment promoted by the United Nations.
Unwavering attention continues to be devoted to workpla-
ce health and safety, to promoting a sustainable supply
chain, to forging an increasingly integrated governance
structure and to managing environmental impact through
the reduction of atmospheric emissions and water consu-
mption and the promotion of biodiversity.
Finally, technological transformation cannot be divorced
from serious concerns about cyber security, where the
Group confirms and expands its objectives for dissemina-
ting cutting-edge solutions supported by associated verifi-
cation measures (ethical hacking, vulnerability assessment
and cyber exercising involving plants and other industrial
sites), and fostering an effective IT security culture.
5858
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements INVESTMENTS ACTIVATED FOR THE
ENERGY TRANSITION
(€ bn)
~30
~160
I
P
H
S
R
E
N
W
O
L
E
D
O
M
|||||||| |
| | |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
>38
€ bn
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
8
~40
8
8
4
~
l
a
t
o
T
I
P
H
S
D
R
A
W
E
T
S
L
E
D
O
M
2(1)
10
€ bn
Consolidated
renewables capacity
(GW)
2020
2023
45
~60
RAB (€ bn)
~42
48
% Smart meters
60%
64%
Renewables capacity
managed (GW)
Electric buses(2 ) (k)
Homes connected
(mn)
2020
2023
3.6
0.9
7.6
5.5
11.1
28.9
2021-2030 2021-2023
Enel
Third parties
(1) Includes equity injections. (2) Includes managed and leased e-buses.
Almost 90% of the €38 billion of investment through the
Ownership business model is planned to go to networks
and renewables, for a total of €33 billion over the three ye-
As a result of the decarbonization strategy that the Group is
implementing, the Group’s Scope 1 CO2 emissions (gCO2eq/
kWh) will decrease by more than 30% between 2020 and 2023,
ars, with the remainder allocated to retail businesses and
accompanying the Group towards achievement of its scien-
conventional generation. The €2 billion of investment attri-
ce-based decarbonization goal of an 80% reduction in gre-
butable to the Stewardship business model are expected
enhouse gas emissions by 2030 compared with 2017 levels, as
to be directed towards the development of renewable
well as the ultimate goal of full decarbonization by 2050.
energy, fiber optics, e-mobility and flexibility systems.
As noted earlier, over 90% of Enel’s consolidated invest-
ments will be consistent with the United Nations Sustai-
nable Development Goals (SDGs). Furthermore, in line with
Enel’s initial estimates, between 80% and 90% of invest-
ments on a consolidated basis will be aligned with the Eu-
ropean taxonomy criteria thanks to their substantial contri-
bution to climate change mitigation.
With regard to the renewable energy business:
› as part of the Ownership business model, the Group
plans to invest a total of €16.8 billion, of which €15.7 bil-
lion for the development of over 15.4 GW of new capa-
city, mainly in countries in which we have an integrated
presence;
› as part of the Stewardship business model, the Group
plans to mobilize a total of €3.8 billion, of which €500
million in direct investments and €3.3 billion in third-par-
ty investments. This investment will produce 4.1 GW of
new capacity.
Investments under both business models will enable the
Group to develop around 19.5 GW of new renewables ca-
pacity over the three years of the Plan.
2020
2023
NET EFFICIENT
INSTALLED
RENEWABLES
CAPACITY (1)
NET EFFICIENT
INSTALLED
RENEWABLES
CAPACITY (2)
45
GW
54
%
60
GW
65
%
NET EFFICIENT
INSTALLED COAL
CAPACITY (2)
10.6
%
1
%
SPECIFIC
DIRECT SCOPE 1
GREENHOUSE
GAS EMISSIONS
214
gCO2eq/kWh
148
gCO2eq/kWh
(1) Net efficient installed renewables capacity, including managed
capacity, was equal to 48.6 GW at December 31, 2020 and 45.8
GW at December 31, 2019.
(2) Renewables and coal capacity as a percentage of consolidated
capacity assuming coal plant closures authorized by the
competent authorities are completed within the timeframe set
by the Group.
59
Integrated Annual Report 2020
Global Power Generation’s ordinary EBITDA is expected to
In the B2C segment, free market sales volumes in Euro-
reach about €7.7 billion in 2023, up 11% from about €7 bil-
pe are expected to increase by 55% (from about 39 TWh
lion in 2020. This growth will be driven by the renewables
in 2020 to around 62 TWh in 2023). In the B2B segment,
business, whose ordinary EBITDA is expected to rise to
the gross margin is expected to increase from around
about €6.5 billion in 2023 (+€1.8 billion compared with
€1.1 billion in 2020 to around €1.4 billion in 2023 (+27%),
about €4.7 billion in 2020), while ordinary EBITDA from
mainly thanks to “beyond commodity” services. Finally, in
thermal generation is expected to decline to about €1.2
the B2G segment, the Group plans to continue supporting
billion in 2023, down from about €2.2 billion in 2020.
the transition of cities towards electric mobility, adding
In the Infrastructure and Networks business, the Group
contributing, with direct and indirect investments, to put-
expects to invest €16.2 billion over the three-year period,
ting about 5,500 electric buses into circulation (up about 6
bringing average annual investment to around €5.4 billion.
times compared with 2020). Street lighting is expected to
Of this, 65% will be dedicated to improving the service
expand from 2.8 million points in 2020 to about 3.4 million
around 200,000 public charging points in 2021-2023 and
quality and grid resilience, about 23% to new connections
in 2023 (+21%).
and about 12% to digitalization. The acceleration of invest-
ments is also expected to expand the Group’s RAB by 14%,
At the end of the Plan period, Enel X aims to reach about
reaching about €48 billion in 2023 (from about €42 billion
780 thousand public and private charging points - inclu-
in 2020).
ding interoperable points - available globally, up from about
186 thousand in 2020 (+4 times), approximately 10.6 GW of
At the operational level, the number of end users is
demand response capacity, up from the 6 GW offered in
expected to increase to around 77 million in 2023, of which
2020 (+1.8 times), as well as 527 MW of storage capacity,
64% equipped with smart meters, from around 74 million
up from 123 MW in 2020 (+4.3 times).
in 2020 (of which 60% equipped with smart meters). Fur-
thermore, on the service quality front, the SAIDI and the
Ordinary EBITDA associated with the Customers business
system average interruption frequency index (SAIFI) are
is expected to reach €4.5 billion at the end of 2023, com-
expected to decline by 12% and 14%, respectively. There-
pared with €3.4 billion in 2020, with a contribution of about
fore, the Group’s networks are expected to become more
€500 million from B2C, about €400 million from B2B, and
efficient, while net operating expenditure per user will drop
about €100 million from B2G. Efficiency improvements,
to around €34 in 2023, from around €41 in 2020 (a re-
driven by an operating platform that unifies and digitali-
duction of 17%).
zes operations for customers, will contribute about €300
million to ordinary EBITDA in 2023.
The ordinary EBITDA of Infrastructure and Networks is
expected to reach about €9.5 billion at the end of 2023, an
At the Group level, the aggregate effects of the Owner-
increase of 23% compared with about €7.7 billion in 2020,
ship and Stewardship business models will have a substan-
thanks in part to efficiency improvements linked to the im-
tial impact on the creation of value, with ordinary EBITDA
plementation of operating platforms.
expected to reach between €20.7 billion and €21.3 billion
in 2023, with a CAGR of 5%-6%. At the same time, ordinary
The remainder is associated with the Customers business,
profit is expected to rise to between €6.5 billion and 6.7
where the value of B2C customers is expected to increase
billion in 2023, with a CAGR of between 8% and 9%. The
by approximately 28%, while the value of B2B customers is
Group expects to achieve these results thanks to the conti-
projected to rise by about 45%, thanks to the expansion of
nuous optimization of Enel’s finance operations, notably an
the portfolio of free-market customers and developments
expansion of sources of sustainable funding, with a conse-
in the electrification of energy consumption, which will dri-
quent reduction in the cost of borrowing.
ve demand for “beyond commodity” services.
6060
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements FINANCIAL TARGETS
Ordinary EBITDA (€ billions)
Ordinary profit (€ billions)
2020
17.9
5.2
2021
18.7-19.3
5.4-5.6
2022
2023
19.7-20.3
20.7-21.3
5.9-6.1
6.5-6.7
CAGR
2020-2023
+5%/+6%
+8%/+9%
The Group’s net debt is expected to reach €57-58 billion by
maturing issues and raise new funds through sustainable
the end of 2023, driven by the acceleration of investments.
instruments.
In terms of credit metrics:
› the FFO/net debt ratio is expected to be at 26% in 2023,
The cost of debt of the Group’s sustainability-linked bond
compared with 25% in 2020, driven by the improvement
issues is on average about 15-20 basis points lower than
in cash conversion;
conventional bond issues, a level that is expected to reduce
› the Group’s net debt/ordinary EBITDA ratio is expected
Enel’s borrowing costs.
to be 2.7 in 2023;
› thanks to the sustainable financing strategy that the
Enel has implemented a simple, predictable and attractive
Group is implementing, the cost of the Group’s gross
dividend policy. Shareholders will receive a fixed dividend
debt is expected to reach 3.3% at the end of the Plan
per share (DPS) guaranteed over the next three years, with
period, compared with 3.7% at the end of 2020.
a CAGR of approximately 6%.
Currently, sustainable funding sources, including sustai-
The soundness of our business model, combined with
nability-linked bond issues, green bonds and sustainable
confidence in our ability to achieve strategic objectives,
loans, represent about one third of the Group’s total gross
enables Enel to pay a guaranteed fixed dividend per sha-
debt. These sources are expected to increase as a propor-
re that will increase over the Plan period, reaching €0.43/
tion of total gross debt to about 50% in 2023 and to over
share in 2023.
70% in 2030, as the Group aims to progressively refinance
DPS
Value creation
Dividend per share (€)
2020
0.358
2021
0.38
2022
0.40
2023
0.43
CAGR
2020-2023
~6%
61
Integrated Annual Report 2020 REFERENCE
SCENARIO
Macroeconomic
environment
The global COVID-19 pandemic, which first emerged in the
1st Quarter of 2020, and the consequent restrictions imple-
mented by governments triggered a recession unpreceden-
ted in recent history, producing a contraction in world GDP
of around 3.7% on an annual basis in 2020.
In this regard, the measures to counter the recession im-
plemented in the advanced economies involved a range of
support programs for the various productive sectors, the
labor market and domestic demand, as well as ultra-expan-
sionary monetary and fiscal policy measures.
China
United States
Euro area
United Kingdom
ECONOMIC MEASURES
> Strict restrictive measures at the beginning of the pandemic and strong resilience of the economy,
supported mainly by high spending on infrastructure
> Expansionary fiscal policies to support families and companies
> Cut in main interest rate to 0-0.25% and a program for the purchase of securities by the Federal Reserve
> Massive government subsidies and other labor market support measures
> Main interest rates at the European Central Bank unchanged, with no adjustment until the target inflation
rate of 2% is achieved (the interest rate on main refinancing operations at 0% and the rate on the deposit
facility of the ECB a negative 0.5%)
> Pandemic Emergency Purchase Program (PEPP) with envelope of €1.85 trillion
> €750 billion recovery plan (Next Generation EU), divided between loans (€360 billion) and grants (almost
€390 billion)
> Subsidies for the labor market, Coronavirus Job Retention Scheme, and ultra-expansionary monetary and
fiscal policies
In Latin America, one of the most severely affected areas in
› in Colombia, despite the severity of the consequences
the world, macroeconomic developments were strongly im-
of the pandemic (GDP contracted by 7.5%), expectations
pacted by the pandemic and the diverse responses of the
for 2021 are improving given the recovery of the oil sec-
individual governments:
tor and the absence of political instability in the medium
› in Argentina the pandemic has further exacerbated exi-
term;
sting structural problems with growth and fiscal stabili-
› although Peru was among the hardest hit countries (GDP
ty (GDP down 10%), compounded by doubts about the
down 12%), its good fiscal and financial position together
outcome of ongoing negotiations with the International
with rising mineral prices put the country among the
Monetary Fund over the restructuring of public debt,
area’s favorites to post a strong economic recovery in
which are weighing on the recovery;
the short term despite the political instability linked to
› the Chilean economy has been among the most resilient
the elections scheduled for next April, which could wor-
in Latin America thanks to its considerable openness,
sen the economic outlook.
with exports driven by the Chinese recovery. Doubts
In general, despite the fact that the prospects for an exit
about the prospects for growth persist, however, given
from the pandemic in 2021 have improved thanks to pro-
the strong political uncertainty in the country;
gress in vaccine development and the beginning of vaccine
› in Brazil, a broad family support program prevented a
distribution, uncertainty linked to the spread of new cases
severe recession, but it undermined the economic and
and the possible imposition of new restrictions persists, with
fiscal soundness of the country, with an estimated deficit
its elimination depending significantly on the progress of
of over 15% of GDP. For 2021, projections remain positive
vaccination on the global scale.
given the country’s large foreign currency reserves and
its low exposure to foreign debt payments;
6262
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements GDP GROWTH AND INFLATION (1)
%
Italy
Spain
Portugal
Greece
Argentina
Romania
Russia
Brazil
Chile
Colombia
Mexico
Peru
Canada
United States
South Africa
India
GDP
Inflation
2020
-9.0
-11.1
-8.3
-9.6
-10.5
-5.3
-3.8
-4.4
-6.1
-7.5
-8.7
-11.3
-5.5
-3.5
-7.3
-
2019
0.3
2.0
2.2
1.6
-2.1
4.2
1.3
1.4
1.0
3.3
-
2.2
1.9
2.2
0.2
-
2020
-0.1
-0.3
-
-
42.0
2.6
3.4
3.3
3.0
2.5
3.4
1.8
0.8
1.2
3.3
6.8
2019
0.6
0.7
-
-
53.5
3.8
4.5
3.7
2.3
3.5
3.6
2.1
2.0
1.8
4.1
3.7
Change
-0.7
-1.0
-
-
-11.5
-1.2
-1.1
-0.4
0.7
-1.0
-0.2
-0.3
-1.2
-0.6
-0.8
3.1
(1) The GDP and inflation figures are the best estimate available at the publication date and are subject to revision by national statistical institutes in the co-
ming months.
Source: national statistical institutes and Enel based on data from ISTAT, INE, EUROSTAT, IMF, OECD and Global Insight.
EXCHANGE RATES
Euro/US dollar
Euro/British pound
Euro/Swiss franc
US dollar/Japanese yen
US dollar/Canadian dollar
US dollar/Australian dollar
US dollar/Russian ruble
US dollar/Argentine peso
US dollar/Brazilian real
US dollar/Chilean peso
US dollar/Colombian peso
US dollar/Peruvian sol
US dollar/Mexican peso
US dollar/Turkish lira
US dollar/Indian rupee
US dollar/South African rand
2020
1.14
0.89
1.07
107
1.34
1.45
72.29
70.68
5.16
791.61
3,693
3.50
21.48
7.02
74.08
16.46
2019
1.12
0.88
1.11
109
1.33
1.44
62.99
48.17
3.94
702.85
3,280
3.34
19.25
5.68
70.42
14.45
Change
1.79%
1.14%
-3.60%
-1.83%
0.75%
0.69%
14.76%
46.73%
30.96%
12.63%
12.59%
4.79%
11.58%
23.59%
5.20%
13.91%
63
Integrated Annual Report 2020 The IBOR reform
of December, Brent and WTI prices reached their highest
levels since March, thanks above all to expectations for a
The IBOR reform is a fundamental reform of the bench-
recovery in demand fueled by the arrival of vaccines and
marks used to determine interest rates being conducted
the agreement reached in the last OPEC meeting to incre-
by the regulatory bodies in the wake of various instances
ase production starting from January 2021, containing the
of rate manipulation by the banks that contribute data for
fall in oil prices to about 33% compared with levels in 2019.
their calculation. The reform includes the replacement of
certain benchmark indices, including the Euribor and LI-
The gas market was also buffeted by strong volatility during
BOR, with alternative risk-free benchmark rates.
2020, with the 1st Half of the year characterized by a con-
For more details on the reform of the IBORs and the results
traction of almost 50% in prices on all the main European
of the analyses conducted by the Group, please see note
hubs compared with 2019. A combination of record levels
47.1 of the consolidated financial statements.
of stocks, resilient supply and mild weather put pressure
The energy industry
Energy - commodity conditions
During 2020, the oil market experienced considerable vo-
latility, with prices collapsing in the 1st Quarter, largely due
to the impact of the pandemic, before partially reversing
the losses in the 2nd Half of the year, thanks to the gra-
dual reopening of the world’s major economies and sharp
production cuts by the OPEC countries. At the beginning
Brent
API2
TTF
CO2
$/bbl
$/ton
€/MWh
€/ton
on prices. The restrictions on mobility imposed to counter
the pandemic and the pressure of a market already expe-
riencing clear oversupply also caused European gas de-
mand to contract by 5%.
In the 2nd Half of the year, demand for gas recovered than-
ks to low coal and nuclear generation in Europe, reduced
flows from Russia, the decline in LNG imports and the reco-
very of Asian demand, as well as an increase in demand for
gas for heating, which returned prices to a level in line with
the averages for 2019, even though they were still well be-
low the annual average levels registered in 2017 and 2018.
2020
2019
43
50
9
25
64
61
14
25
Change
-32.8%
-18.0%
-35.7%
-
6464
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements The price of CO2 on the ETS displayed excellent resilience,
remaining stable at around €25/ton and rapidly absorbing
Recent statements by the European Commission about
the central role of the ETS in achieving decarbonization
the initial shock experienced in March and May, months in
and climate neutrality goals have supported the market, le-
which the first wave of COVID-19 cases triggered a tempo-
aving prices on a gradually rising path towards long-term
rary decline to around €15/20/ton.
equilibrium.
Electricity and natural gas markets
Electricity demand
DEVELOPMENTS IN ELECTRICITY DEMAND (1) (2)
TWh
Italy
Spain
Romania
Russia (3)
Argentina
Brazil
Chile
Colombia
Peru
United States
2020
2019
Change
303
236
59
779
132
587
78
70
49
320
249
62
802
133
594
77
72
53
3,651
3,750
-5.3%
-5.2%
-4.8%
-2.9%
-0.8%
-1.2%
1.3%
-2.8%
-7.5%
-2.6%
(1) Gross of grid losses.
(2) The figures are the best estimate available at the publication date and could be revised by TSOs in the coming months.
(3) Europe/Urals.
Source: Enel based on TSO figures.
The past year was particularly bad for electricity consump-
5.2% respectively. Examining developments at the sector le-
tion due to the onset of the COVID-19 pandemic in March,
vel, in Spain, the decline in energy demand has returned to
with Belgium, the United Kingdom, Italy, Spain and France
pre-COVID-19 levels in the industrial sector, while demand in
the most severely affected countries, experiencing declines
services is still down.
in demand due to the emergency of 5%-6% compared with
In Latin America, electricity demand declined significantly
2019.
in Peru (-7.5%), reflecting the prolonged closure of mining
Italy and Spain saw electricity demand drop by 5.3% and
activities, and in Colombia (-2.8%), mainly attributable to
65
Integrated Annual Report 2020 the closure of large and medium-sized firms. The decline in
national level, and in Argentina, with falls of about 1.2% and
electricity consumption was smaller in Brazil, thanks to more
0.8% respectively. Electricity demand in Chile was more resi-
localized restrictive measures that were not extended to the
lient, recording an increase, albeit a small one, of 1.3%.
Electricity prices
ELECTRICITY PRICES
Italy
Spain
Average baseload
price 2020 (€/MWh)
Change in average
baseload price
2020-2019
Average peakload
price 2020
(€/MWh)
Change in average
peakload price
2020-2019
38.9
31.9
-25.6%
-32.8%
51.4
43.7
-11.8%
-14.5%
PRICE DEVELOPMENTS IN THE MAIN MARKETS (1)
Eurocents/kWh
Final market (residential) (2)
Italy
Romania
Spain
Final market (industrial) (3)
Italy
Romania
Spain
2020
2019
Change
0.1382
0.1045
0.1178
0.0609
0.0757
0.0519
0.1430
0.1004
0.1324
0.0785
0.0715
0.0651
-3.4%
4.1%
-11.0%
-22.4%
5.9%
-20.3%
(1) The figures are the best estimate available at the publication date and could be revised by TSOs in the coming months.
(2) Annual price net of taxes - annual consumption of between 2,500 kWh and 5,000 kWh.
(3) Annual price net of taxes - annual consumption of between 70,000 MWh and 150,000 MWh.
Source: Eurostat.
Natural gas markets
NATURAL GAS DEMAND
Billions of m3
Italy
Spain
2020
70
31
2019
73
34
Change
(3)
(3)
-4.1%
-8.8%
The COVID-19 crisis and an exceptionally mild winter in the
2020, with most of the decline coming in the 2nd Quarter.
northern hemisphere caused global gas demand to suffer
The countries most affected included Spain (-8.8%), with
its largest year-on-year decline in history (-4% according
a decline mainly attributable to the thermal generation
to the latest estimates of the IEA).
(-20%) and residential (-12%) sectors, France, the United
In Europe, gas demand decreased by an average of 5% in
Kingdom and finally Germany.
6666
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements NATURAL GAS DEMAND IN ITALY
Billions of m3
Distribution grids
Industry
Thermal generation
Other (1)
Total
2020
2019
Change
31
13
25
1
70
32
14
26
1
73
(1)
(1)
(1)
-
(3)
-3.1%
-7.1%
-3.8%
-
-4.1%
Includes other consumption and losses.
(1)
Source: Enel based on data from the Ministry for Economic Development and Snam Rete Gas.
In Italy, demand contracted by 4.1% compared with 2019,
Standard, constituted the main framework for the Group’s
with an especially steep decline in thermal generation
reporting on climate change issues in 2020.
(-3.8%) and industry (-7.1%), and a less marked decrease in
the distribution grid segment (-3.1%), thanks to an increase
The Enel Group is committed to implementing a business
in consumption in the 4th Quarter (+14% year on year), due
model that is consistent with the objectives of the Paris
to demand for heating.
Climate change and
long-term scenarios
Agreement (COP21) to contain the average increase in glo-
bal temperature by 2100 below 2 °C compared with pre-in-
dustrial levels and to continue to limit this rise to 1.5 °C.
Furthermore, Enel, as a signatory of the “Business Ambition
for 1.5 °C” campaign promoted by the United Nations and
other institutions, is committed to setting a long-term goal
Enel promotes transparency in its climate-change disclo-
to achieve net zero emissions along the entire value chain
sures and works to demonstrate to its stakeholders that
by 2050 and to pursue evidence-based targets in all rele-
it is tackling climate change with diligence and determi-
vant areas consistent with the criteria and recommenda-
nation. Enel has therefore publicly committed itself to
tions of the Science Based Targets initiative (SBTi).
adopting the recommendations of the Task Force on Cli-
mate-related Financial Disclosures (TCFD) of the Financial
In 2020, Enel’s decarbonization roadmap was updated to
Stability Board, which in June 2017 published specific re-
capture the acceleration in the spread of renewables and
commendations for the voluntary reporting of the financial
the reduction in thermal generation capacity envisaged in
impact of climate risks. The Group is also taking on board
the new 2021-2023 Strategic Plan and in the 2030 ambi-
the “Guidelines on reporting climate-related information”
tions presented on the 2020 Capital Markets Day, setting
published by the European Commission in June 2019, whi-
the following objectives in line with the Paris Agreement.
ch, together with the TCFD recommendations and the GRI
TIME HORIZON
Short term
Medium term
GREENHOUSE GAS (GHG) REDUCTION TARGET
2023
2030
> Direct emissions of Scope 1 greenhouse gases to 148 gCO2eq/kWh (-32% compared with
2020)
> Direct emissions of Scope 1 greenhouse gases to 82 gCO2eq/kWh (-80% compared with
2017, consistent with the 1.5 °C path as certified by the SBTi)
> 16% reduction in indirect Scope 3 emissions associate with gas consumption by end
users compared with 2017
Long term
2050 > Full decarbonization of energy mix
This acceleration in the reduction of greenhouse gas emis-
sions is also a response to the appeal of the Intergovern-
From scenario to strategic decisions
mental Panel on Climate Change (IPCC) as part of its effort to
The Group develops short-, medium- and long-term sce-
strengthen the global response to the climate change threat.
narios for the energy industry and for macroeconomic and
Included in the IPCC special report, the appeal warns of the
financial conditions in order to support its strategic and in-
impacts of global warming of 1.5 °C above pre-industrial levels
dustrial planning and the evaluation of investments and ex-
and the related global greenhouse gas emission pathways.
traordinary corporate transactions. The role of climate chan-
ge in these scenarios is increasingly important in terms of:
67
Integrated Annual Report 2020 › acute phenomena (heat waves, flooding, hurricanes, etc.)
corporate processes takes account of the guidelines of
and their potential impact on industrial assets;
the TCFD and enables the assessment of the risks and op-
› chronic phenomena related to structural changes in the
portunities connected with climate change. For this reason,
climate, such as the rising trend in temperatures, rising
the Group has established an ongoing dialogue and col-
sea levels, etc., which can bring about changes, for exam-
laborative relationship with experts in the field of climate
ple, in the output of generation plants and in electricity
change, such as the International Centre for Theoretical
consumption profiles in the residential and commercial
Physics (ICTP) in Trieste. In addition, the Group has equip-
sectors;
ped itself to manage high resolution post-downscaling
› transition of the various industrial and business sectors
climate scenarios and has activated dedicated projects to
towards a green economy characterized by ever lower
develop the skills necessary to translate the complexity of
emission levels for climate changing gases.
climate modeling into useful information for understan-
ding its local effects on the business and supporting stra-
The issues connected with future trends in climate va-
tegic decisions.
riables (in terms of acute and chronic phenomena) define
The acquisition and processing of the large volume of
the so-called “physical scenario”, while the issues associa-
data underlying the scenarios, and the identification of the
ted with the industrial and economic transition towards
solutions to reduce atmospheric concentrations of CO2
are the characteristic elements of the “transition scenario”.
methodologies and metrics necessary to interpret com-
plex phenomena at very high resolution, require a conti-
nuous dialogue with both external and internal sources. To
The scenarios are constructed within an overall framework
this end, the Group works with a platform approach, de-
that ensures consistency between climate projections and
ploying tools that guarantee sound and accessible infor-
transition assumptions and can be used to evaluate the
mation. The process that translates scenario phenomena
phenomena identified in the short, medium and long term.
into useful information for industrial and strategic deci-
The adoption of these scenarios and their integration into
sions can be summarized in five steps:
S T E P S
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6868
Identification of phenomena relevant
to business (e.g. impact on electricity
demand, heat waves)
Development of link functions between
climate/transition scenarios and operatio-
nal variables
Identification of event trend on the basis
of scenario data (e.g. intensity
and frequency)
Calculate impact (e.g. ∆ margins, losses,
capex)
Strategic actions: definition and
implementation (e.g. capital allocation,
resilience plans)
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements
The physical climate scenario
Among the climate projections developed by the IPCC on
a specific level of emissions connected with the so-called
a global scale, the Group has selected three representing
“Representative Concentration Pathway” (RCP):
SCENARIO
AVERAGE TEMPERATURE INCREASE COMPARED WITH PRE-INDUSTRIAL LEVELS (1850-1900)
RCP 2.6
RCP 4.5
RCP 8.5
~ +1.5 °C by 2100 (the IPCC estimates a 78% probability of staying below +2 °C).(1) This scenario is used
by the Group to assess physical phenomena and perform analyses that consider an energy transition
consistent with ambitious mitigation objectives
~ +2.4 °C by 2100. This scenario has been identified by Enel as the most appropriate representation of the
current global climate and political context and consistent with the temperature increase estimates that
consider current policies announced globally(2)
~ +4.3 °C by 2100. Compatible with a worst case scenario where no particular measures to combat climate
change are implemented
IPCC Fifth Assessment Report, Working Group 1, “Long-term Climate Change: Projections, Commitments and Irreversibility”.
(1)
(2) Climate Action Tracker Thermometer, estimates of global heating at 2100 considering existing “pledges & targets” (December 2020 update).
In the RCP 8.5 climate projections, the Mediterranean and
The analyses carried out for the physical scenarios consi-
Central/South America will experience an impact in ter-
dered both chronic and acute phenomena. Some of the-
ms of an increase in average temperatures and a decline
se phenomena require an additional level of complexity,
in precipitation. These effects will probably become more
as they depend not only on climate trends but also on the
pronounced in the 2nd Half of the century, with the impact
specific characteristics of the territory and require further
increasing up to 2100. In the RCP 2.6 scenario, the effects
modeling to obtain a high resolution representation. For
will be similar but less intense, with the trend slowing in the
this reason, in addition to the climate scenarios provided
2nd Half of the century, thereby producing a substantial
by ICTP, the Group also uses natural hazard maps.
differential between the two scenarios by 2100.
This tool makes it possible to obtain, with a high spatial re-
solution, recurrence intervals for a series of events, such as
The climate scenarios are global in nature. Accordingly, in
storms, hurricanes and floods. As described in the section
order to determine their effects in the areas of relevance
“Strategic risks and opportunities connected with climate
for the Group, a collaborative initiative has been started with
change”, this tool is widely used within the Group, which al-
the Earth Sciences department of the International Centre
ready uses historical data to optimize insurance strategies.
for Theoretical Physics (ICTP) of Trieste. As part of this col-
In addition, work is under way to be able to take advantage
laboration, the ICTP provides projections for the major cli-
of this information developed in accordance with climate
mate variables with a grid resolution varying from about 12
scenario projections.
km2 to about 100 km2 and a forecast horizon running from
2030 to 2050. The main variables are temperature, rainfall
and snowfall and solar radiation. Compared with the analysis
Italy
Acute phenomena: heat waves were defined in collabo-
conducted in 2019, the current study is no longer based on
ration with the ICTP and Infrastructure and Networks to
the use of a single regional climate model (that developed by
obtain the most appropriate description of the climate
the ICTP) but rather on the union of three models, selected
phenomenon for characterizing this critical event for the
as being representative of the ensemble of climate models
business. The conditions identified (persistence of high
currently available in the literature. This technique is usual-
temperatures for at least five consecutive days with no
ly used in the scientific community to obtain a more robust
precipitation) were sought in the projections to 2030-
and bias-free analysis, mediating the different assumptions
2050 provided by the ICTP, finding an increase in both the
that could characterize the single model.
frequency and geographical distribution of such events in
In 2020, future projections were analyzed for Italy, Spain
all the scenarios analyzed. In particular, there was a signifi-
and Brazil, obtaining – thanks to the use of the set of mo-
cant deterioration in the RCP 8.5 scenario, especially in the
dels – a more highly defined representation of the physical
islands and in the southern regions of the country.
scenario.
69
Integrated Annual Report 2020 AVERAGE NUMBER OF HIGH TEMPERATURE DAYS IN THE VARIOUS RCP SCENARIOS COMPARED WITH HISTORIC
VALUES (1990-2017)
RCP 2.6
RCP 4.5
RCP 8.5
Δ days
25
20
15
10
5
0
In such scenarios, the intensity of rainfall and extreme
4.5 scenario, on the other hand, an increase of between
snowfall will increase, but their frequency will decline
1.0-1.7 °C is expected with an average value of about 1.3
AVERAGE NUMBER OF EXTREME RISK DAYS: DIFFERENCES BETWEEN RCP SCENARIOS AND HISTORICAL VALUES
compared with historical data.
°C, while for the RCP 2.6 scenario the interval is 0.9-1.5
RCP 2.6
RCP 4.5
RCP 8.5
Fire risk can also be affected by climate change. The
°C with an average value of around1.2 °C. The differen-
Group has analyzed it using the Fire Weather Index (FWI),
tial between the RCP 2.6 scenario and the RCP 4.5 and
which takes account of factors such as relative humidity,
8.5 scenarios will grow significantly in the 2nd Half of the
precipitation, wind speed and temperature. Days at ex-
century. Chronic temperature changes can be analyzed
treme risk(2) were selected in the 2030-2050 period and
to obtain information about the potential effects on the
compared with those in the 1990-2010 period. In all the
cooling and heating demand of local energy systems. The
scenarios analyzed, the number of days at extreme risk
indicators used to measure the thermal requirement are
increases compared with historical levels, with different
intensities at the geographical level. In some regions, the
RCP 2.6 scenario shows a slightly higher number of extre-
me risk days than the other scenarios (RCP 4.5 and RCP
8.5) due to factors such as lower humidity, contributing to
the fire risk assessment.
Chronic phenomena: the average annual temperature is
Heating Degree Days (HDDs), i.e. the sum, for all days of
the year with a Taverage ≤ 15 °C, of the differences between
the internal temperature (with Tinternal assumed to be 18 °C)
and the average temperature, and Cooling Degree Days
(CDDs), i.e. the sum, for all days of the year with Taverage ≥
24 °C, of the differences between the Taverage and the Tin-
ternal (assumed to be 21 °C), respectively, for heating and
cooling requirements. In 2030-2050, the heating requi-
expected to increase over the 2030-2050 period in all
rement is expected to decrease by 17% compared with
scenarios analyzed. In particular, an average temperature
1990-2017, which is constant in all scenarios, while CDDs
increase of around 1.4 °C is expected in 2030-2050 com-
are always greater than historical data, with an increasing
pared with the pre-industrial period, falling with a range
trend going from the RCP 2.6 scenario (+55%) to RPC 8.5
of between 1.1-2.0 °C for the RCP 8.5 scenario. In the RCP
(+91%).
(2) The value of the FWI considered to identify extreme risk days is based on an analysis of historical data and information provided by the European Forest
Fire Information System (EFFIS).
7070
Δ days
FWI>45
10
7.5
5
2.5
0
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements Δ days
25
20
15
10
5
0
AVERAGE NUMBER OF HIGH TEMPERATURE DAYS IN THE VARIOUS RCP SCENARIOS COMPARED WITH HISTORIC
RCP 8.5
VALUES (1990-2017)
RCP 2.6
RCP 4.5
RCP 8.5
-17%
-17%
-17%
91%
RCP 2.6
55%
RCP 4.5
73%
Cooling Degree Days (CDD)
Heating Degree Days (HDD)
Note that compared with the analysis performed in 2019,
ves are expected to increase appreciably in frequency,
the RCP 4.5 scenario was introduced and the ensemble of
with their geographical spread expected to expand, espe-
several models was used as a database, as described abo-
cially in the southern area of the country. Extreme rainfall
ve. In addition, to give greater weight to the most popula-
will increase in intensity but its frequency will decline. At
ted areas, HDDs and CDDs were calculated as an average
the same time, extreme snowfalls will largely remain loca-
over the country, weighting each geographical node by po-
ted in the current geographical areas but their frequency
pulation thanks to the use of the Shared Socioeconomic
and intensity could decline sharply. As regards fire risk, the
Pathways (SSPs) associated with each scenario.
number of days at extreme risk is higher in the RCP 8.5
Spain
Acute phenomena: over the 2030-2050 period, heat wa-
scenario than in the RCP 2.6 scenario, and is always grea-
ter than the historical average.
AVERAGE NUMBER OF EXTREME RISK DAYS: DIFFERENCES BETWEEN RCP SCENARIOS AND HISTORICAL VALUES
RCP 2.6
RCP 4.5
RCP 8.5
Δ days
FWI>45
10
7.5
5
2.5
0
Chronic phenomena: the average annual temperature is
to be around 1 °C (in an interval of between 0.8 and 1.3 °C).
expected to increase over the 2030-2050 period, with in-
The differential between the RCP 2.6 scenario and the RCP
creases in all RCP scenarios considered. In particular, ave-
4.5 and 8.5 scenarios grows significantly in the 2nd Half of
rage temperature is expected to increase by about 1.4 °C
the century. In terms of Heating Degree Days (HDDs) and
compared with the pre-industrial period (within a range of
Cooling Degree Days (CDDs), we expect a reduction of 13%
between 1.2 and 1.8 °C) for the RCP 8.5 scenario. In the
in HDDs in 2030-2050 compared with 1990-2017 and an
RCP 4.5 scenario, the average increase is forecast to be
increase of 41% in CDDs in the RCP 2.6 scenario, and chan-
about 1.2 °C (in an interval of between 1.0 and 1.5 °C), while
ges of -17% and +64% in HDDs and CDDs, respectively, in
for the RCP 2.6 scenario the average increase is expected
the RCP 8.5 scenario.
71
Integrated Annual Report 2020 RCP 2.6
41%
RCP 4.5
53%
RCP 8.5
-13%
-17%
64%
Cooling Degree Days (CDD)
Heating Degree Days (HDD)
Brazil
Acute phenomena: the trend in acute phenomena in very
large countries such as Brazil can differ significantly in the
various areas of the country. Our analyses focus on the
areas of interest for the Group. For example, the first stu-
dies carried out for the state of São Paulo show an incre-
ase in heat waves. In Brazil, climate projections point to a
larger average reduction in precipitation in the north, with
extreme phenomena to be explored on the local scale. Ac-
cording to the initial analyses, the number of days at extre-
me fire risk are projected to increase in both the RCP 8.5
scenario and the RCP 2.6 scenario compared with the hi-
storical average, with the most critical differences coming
in the center-west and north-east areas of the country. As
with precipitation, fire risk will also need to be investigated
further on the local scale based on the needs of the Group.
Note that these conclusions are the result of analyses car-
ried out using a single climate model, not an ensemble of
multiple models, as was done for Italy and Spain.
-15%
Chronic phenomena: the average annual temperature in
the 2030-2050 period is expected to rise from pre-in-
dustrial levels in each scenario. More specifically, average
temperature is expected to increase by about 1.6 °C in
2030-2050 compared with 1850-1900 (within a range of
between 1.2 and 2.1 °C) for the RCP 8.5 scenario. In the RCP
4.5 scenario, the average increase is forecast to be around
1.3 °C (within an interval of between 1.0 and 1.7 °C), while
for the RCP 2.6 scenario the average increase is expected
to be about 1.1 °C (within a range of between 0.8 and 1.4
°C). In terms of Heating Degree Days (HDDs) and Cooling
Degree Days (CDDs), HDDs decrease by 7% and CDDs in-
crease by 13% in 2030-2050 compared with 1990-2017 in
the RCP 2.6 scenario, while changes in HDDs and CDDs in
the RCP 8.5 scenario come to -27% and +31%, respectively.
RCP 2.6
13%
RCP 4.5
22%
-7%
-17%
RCP 8.5
31%
-27%
Cooling Degree Days (CDD)
Heating Degree Days (HDD)
7272
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements The transition scenario
The transition scenario refers to the description of how
energy production and consumption evolve in the various
sectors in an economic, social and regulatory context
consistent with different greenhouse gas (GHG) emission
trends correlated with RCP climate scenarios.
As for the global horizon, the literature contains abun-
dant publications produced by institutions, international
organizations and private companies. The panorama is
varied and presents scenarios, sometimes from the same
provider, which cover most of the spectrum delineated by
the potential temperature increase linked to the different
RCP trajectories: each scenario is associated, more or
less strictly, with a specific RCP and consequently with a
range of temperature increase.
The scenarios can be divided into two macro-catego-
ries: those that, in accordance with the Paris Agreement,
seek to limit the temperature increase compared with the
pre-industrial period to less than 2 °C, and those that de-
scribe developments in systems that will lead to higher
temperatures. In general, a systematic analysis of the dif-
ferent sources found that the response to the most chal-
lenging scenarios for climate change mitigation efforts in-
volves the strong penetration of decarbonized electricity.
Global transition scenarios to 2040-2050
and temperature increase
Temperature
increase
≤2 °C
>2 °C
A, B , C, D: provider
1, 2, 3: scenarios from the same provider
D2
B3
A2
B1
B2
D1
A1
C1
40
35
30
25
20
%
n
o
i
t
a
c
fi
i
r
t
c
e
E
l
2019
15
20
30
40
50
Renewable generation %
60
70
80
The available evidence, including the scenarios developed
The transition scenarios used by the Group globally are the
by the leading global agencies, indicates that the policies
result of the benchmark analysis of external scenarios and
implemented by governments around the world are cur-
currently known policy objectives. For the main countries in
rently not sufficient to achieve the Paris objectives.(3) The
which it operates, the Group develops consistent transition
most likely global climate pathway under existing policies,
scenarios using system energy models. Where internal mo-
i.e. those declared by individual countries, is a RCP 4.5 sce-
dels are not available, risks and opportunities are assessed
nario lying between RCP 2.6 and 8.5. Although it is a less
through the analysis of scenarios produced by third parties,
ambitious path than the RCP 2.6, it is consistent with the
as described above.
policies approved or announced and which are unlikely to
be disregarded.
(3) Consider for example “UNEP Emissions Gap Report 2020” and “IEA World Energy Outlook 2020”.
73
Integrated Annual Report 2020
The main assumptions considered in developing the tran-
ce) scenario, constructed mainly on the basis of existing or
sition scenarios concern:
announced policies and specific internal assumptions for the
› local policies and regulatory measures to combat clima-
evolution of individual variables, and a more ambitious scenario
te change, such as measures to reduce carbon dioxide
(Brighter Future), consistent with the achievement of the Pa-
emissions, increase energy efficiency, decarbonize the
ris objectives, which presupposes more stringent targets for
electricity sector and reduce oil consumption;
reducing carbon dioxide emissions or increasing energy effi-
› the global macroeconomic and energy context (for exam-
ciency, as well as a possible acceleration in the reduction of
ple, gross domestic product, population and commodity
the costs of certain technologies. This second case assumes
prices), considering international benchmarks including
incremental growth in renewable generation and greater de-
those produced by the International Energy Agency (IEA),
mand for electricity due to the greater electrification of final
Bloomberg New Energy Finance (BNEF), the International
consumption, mainly driven by more ambitious objectives in
Institute for Applied Systems Analysis (IIASA) and others.
terms of energy efficiency and decarbonization.
As regards the IIASA, for example, we have considered
Of course, if the countries with the highest emissions do not
the fundamentals of commodity demand and the popu-
adopt effective decarbonization policies, remaining on iner-
lation underlying the “Shared Socioeconomic Pathways
tial or deteriorating paths, any particularly ambitious transition
(SSPs)”, which project different scenarios describing
trajectories defined at the local level could coexist with climate
socioeconomic developments and policies consistent
change scenarios that are worse than the Paris scenarios. In
with climate scenarios. The information from the SSPs
fact, the ambitions of individual countries for mitigation actions
is used, together with the internal modeling, to support
are not sufficient on their own to determine the long-term
long-term forecasts, such as those for commodity pri-
trajectories of emissions and the consequent RCP pathways.
ces and electricity demand;
To develop the transition scenarios for the countries under
› the evolution of energy production, conversion and con-
analysis, the Group has equipped itself with quantitative tools
sumption technologies, both in terms of technical ope-
that, given the assumptions regarding the evolution of po-
rating parameters and costs.
licies, technologies and other contextual variables, produce
the corresponding projections for energy demand, electrici-
On the basis of the framework described, the transition sce-
ty demand, electricity production, penetration of renewables,
nario framework with which the Group conducted the impact
electric vehicles, etc. In other words, all the relevant variables
analyses relating to the risks and opportunities inherent in cli-
that characterize a national energy system with respect to the
mate change envisages two scenarios: an “inertial” (Referen-
Group’s activities.
PHYSICAL SCENARIO
TRANSITION SCENARIO
Temperature
Macro
Precipitation
Commodities
Wind
Regulatory
Irradiation
Technological
evolution
7474
Energy
System
Model
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scenario with RCP 8.5, in addition to RCP 4.5. Assuming this
been determined, the scenario framework makes it pos-
additional increase in temperature, with the same energy
sible to conduct analyses of the longer-term chronic phy-
transition, leads to an increase of less than 1% in demand
sical effects determined locally by the climate pathways
in the RCP 8.5 Reference scenario compared with the RCP
considered. One example is the analysis of the impact of
4.5 Reference scenario.
the change in temperature on electricity demand. For this
purpose, the Reference and Brighter Future scenarios for
Italy and Spain have been supplemented with the Heating
Average impact on electricity demand
(2030-2050) comparing RCP 2.6 and RCP 4.5
Degree Days and Cooling Degree Days under RCP 4.5 and
RCP 2.6 respectively. It was thus possible to quantify the
effect that the change in temperature will have on energy
demand (total, not just electricity) for cooling and heating
in the residential and commercial sectors. The time horizon
of the analysis is 2030-2050, where the current policies of
the European Union connected with the carbon neutrality
objective, in both the Reference and Brighter Future sce-
narios, converge towards decarbonized and electrified
energy systems in 2050.
The use of integrated energy system models makes it pos-
sible to quantify the individual service demand of a country.
3.5%
3%
RCP 2.6
BASELINE
RCP 4.5
-0.5%
Temperature
effect
Transition
effect
This level of detail therefore makes it possible to discrimi-
While on the one hand the trends in degree days are si-
nate the specific effects that a change in temperature can
milar, the substantial difference between Italy and Spain
have on energy requirements. Considering the entire time
concerns the energy system in 2030. For the latter, in fact,
horizon analyzed, the greater speed of the Brighter Futu-
the Reference scenario is very similar to the Brighter Fu-
re scenario in achieving carbon neutrality makes it more
ture scenario, in line with the national energy plan, which
efficient and electrified than the Reference scenario. This
is already very challenging. It follows that the temperature
difference in the speed of the transition leads to an avera-
effect between RCP 2.6 and 4.5 remains small as with Italy,
ge increase of between 3% and 4% in electricity demand in
less than 1% and in the same direction, and the transition
the Brighter Future scenario compared with the Referen-
effect is negligible.(4)
ce scenario in the 2030-2050 period. When the effect of
temperature is also considered and the differences betwe-
While the role of temperature is small for Italy and Spain,
en the two scenarios associated with RCP 4.5 and 2.6 are
Brazil, another country of particular interest for the Group,
analyzed, the average increase in electricity demand is less
could experience a more marked increase in demand in re-
than 1% in both the Reference and Brighter Future scena-
sponse to the increase in temperature, equal to a few per-
rios. In the most extreme years, this impact can reach 2%.
centage points of total demand. This would be driven by
Considering the integrated view, the potential effect of
the higher cooling demand expected in the country. Howe-
more ambitious transition scenarios has a more significant
ver, these estimates are subject to a significant degree of
impact on electricity demand than the increase in tempe-
uncertainty, given the significant volatility of Brazilian eco-
rature resulting from climate change.
nomic growth.
In order to investigate the effect of temperature on tran-
sition scenarios further and at the same time expand the
range of assumptions regarding climate change, a sensiti-
vity analysis was carried out by associating the Reference
(4) Significant electrification of heating in the residential sector in future years could change the sign and order of magnitude of the climate change effect for
both Italy and Spain.
75
Integrated Annual Report 2020 Assessment of the
risks and opportunities
connected with the
Strategic Plan
The process of defining the Group’s strategies is accompa-
nied by an accurate analysis of the risks and opportunities
connected with those strategies.
Identifying those risks and opportunities within the Enel
Group’s strategic and industrial planning process is desi-
gned to span the horizon of the Plan in an integrated man-
ner.
Although the strategy underlying the Plan, as described
above, envisages a phase of careful analysis and verification
of the strategic risk factors and variables, it retains scenario
assumptions regarding future events that will not necessa-
rily occur, as they depend on variables that cannot be con-
trolled by management. Upside and downside developmen-
ts may occur as time unfolds.
Before being able to approve the Strategic Plan, a quantita-
tive analysis of the risks and opportunities associated with
the Group’s strategic positioning is presented annually to
the Control and Risk Committee appointed by the Board
of Directors. In particular, risk factors such as macroecono-
mic and energy variables (such as exchange rates, inflation,
commodity prices and electricity demand), regulatory deve-
lopments, weather and climate events and risks connected
with the competition are identified.
Based on the nature of the risk and opportunity drivers, the
analytical approach that best represents their volatility is
selected. In practice, we perform a scenario analysis for all
those variables whose market time series provide a robust
foundation to estimate levels of correlation and representa-
tive volatility for future risk, and a deterministic analysis ba-
sed on what-ifs and expert judgments of the possible evolu-
tion of the business with respect to the main risk factors for
the execution of the Business Plan.
The validity of the results is also monitored with ex-post
analyses by risk cluster. In 2020, most of the actual upside
and downside events fell well within the limits estimated by
the risk models of the Strategic Plan presented at the end of
2019, despite the strong downside impact of the COVID-19
emergency.
Focusing on the scenario risk analysis for the Strategic Plan,
exchange rates, electricity demand and the volatility of ener-
gy and commodity prices represent almost all the volatility of
the drivers. In particular, in addition to the US dollar the most
impacting currencies are the Chilean peso, the Colombian
peso and the Brazilian real. Nevertheless, the Group’s very
structure ensures that the volatility of the South American
currencies has only a negligible impact on profit, as demon-
strated in the presentation at the Capital Markets Day. Italy
and Spain represent nearly all of the Group’s exposure to the
impact of the volatility of energy prices and commodity pri-
ce fluctuations on margins.
Examining the other risk factors, such as those connected
with weather and climate events, we can see that geo-
graphical diversification significantly reduces the exposure
to the risk associated with renewable resources – a highly
positive factor considering the Group’s positioning and the
steady expansion of renewable generation. Furthermore,
with regard to climate change, the risk associated with “acu-
te” events is managed as part of investment for adaptation
to climate change and the Group’s insurance strategy.
With regard to risk factors estimated deterministically, the
monitoring of all possible regulatory issues is crucial for as-
sessing any upside or downside impact on the Group.
In general, correlations between all the risk factors create
diversification effects that substantially mitigate total expo-
sures.
7676
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements RISK
MANAGEMENT
The Group’s governance model is in line with best risk ma-
nagement practices and envisages:
1
SEPARATION
of roles between management and control
and their complementarity and independence
(3 lines of defense)
2 RISK CONTROL UNIT
overseeing second-level defense
and economic-financial impact of risks
3 SYSTEM OF RISK COMMITTEES
focused on business or geographical areas,
coordinated among themselves,
with a Group Risk Committee at the top
4
5
6
SYSTEM OF ORGANIZATIONAL POLICIES
AND PROCEDURES
setting out processes, tools
and responsibilities
SPECIFICATION OF EXPLICIT RISK LIMITS,
and control processes to ensure compliance
A RISK REPORTING SYSTEM
that ensures management remains informed
and enables corrective and mitigation action
In view of the nature of its operations, Enel adopts a six-ca-
prehensive representation of risks within the Group, thus
tegory classification of the risks to which it is exposed:
facilitating the identification of those that impact Group
Strategic, Financial, Operational, Governance & Culture,
processes and the roles of the organizational units involved
Digital Technology, and Compliance.
in their management.
Risks are defined in a risk catalog that serves as a referen-
The most significant categories of risk in relation to the im-
ce for all areas of the Group and for all the units involved
pacts on the Group are described as follows:
in management and monitoring processes. The adoption
of a common language facilitates the mapping and com-
Financial
Operational
Strategic
Digital
Technology
Compliance
77
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||Integrated Annual Report 2020 Category
Risk
Definition
Legislative and regulatory
developments
Macroeconomic and
geopolitical trends
Strategic
Climate
change
Competitive
environment
Interest rate
Commodity
Possible effects from unfavorable legislative/regulatory changes.
Potential effects of a deterioration of global economic and
geopolitical conditions as a result of economic, financial or
political crises.
Possible impacts of slow or inadequate responses to
environmental and climate change.
Potential impacts of a weakening of competitive positioning in
markets.
Potential impact of adverse fluctuations in interest rates.
Impacts due to greater volatility in commodity prices or a lack of
demand or availability of raw materials.
Financial
Currency risk
Impact of adverse changes in exchange rates.
Credit and
counterparty
Liquidity
IT effectiveness
Cyber security
Digital
Technology
Digitalization
Effect of a deterioration in creditworthiness, breach of contract
or excessively concentrated exposures.
Potential impact of short-term financial tensions.
Potential impact of ineffective IT systems support for business
processes and operational activities.
Potential impact of cyber attacks and the theft of sensitive
company and customer data.
Organizational and operational impact on business processes with
potential increase in costs due to inadequate level of digitalization.
Service
continuity
Possible impact of exposure of IT/OT systems to service
interruptions and data loss.
Health and safety
Potential impact on the health and safety of employees and other
parties involved as a result a violation of health and safety laws.
Environment
Operational
Significant impact on the quality of the environment and the
ecosystems involved as a result of a violation of environmental laws.
Procurement,
logistics & supply chain
Potential effects of ineffective procurement or contract
management activities.
People
and Organization
Impact attributable to inadequate organizational structures
or lack of internal skills.
Compliance
Data
protection
Impact of violations of applicable data protection and privacy laws.
7878
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements The Group also adopts a Risk Appetite Framework in or-
der to enable the implementation – for each risk and with
an integrated approach – of the appropriate management
and control arrangements, as well as development and
updating (metrics and models for measuring risks).
To effectively manage these risks, Enel has adopted an in-
ternal control and risk management system (the ICRMS),
which is periodically updated. It strengthens the Group’s
awareness of its risk profile, identifying any opportunities it
may offer, and supports management in the decision-ma-
king process to create value in a constantly evolving ex-
ternal environment. This system is the set of rules, proce-
dures, and organizational structures aimed at identifying,
measuring, monitoring and managing the main risks appli-
cable to the Group.
Strategic risks
This section provides disclosure on the following strategic
risk:
Legislative and regulatory
developments
The Group operates in regulated markets and changes in
the operating rules of the various systems, as well as the
In this context, the Board of Directors plays a guiding and
prescriptions and obligations characterizing them, impact
coordinating role for risk management, ensuring, at every
the operations and performance of the Parent.
level of the Group, the adoption of decisions that are in-
Accordingly, Enel closely monitors legislative and regula-
formed, structured and consistent with the nature and
tory developments, such as:
level of risks. To this end, the Board of Directors includes
› periodic revisions of regulation in the distribution seg-
in its assessments all the risks, including those related to
ment;
climate change, that may be relevant in any way, compri-
› the liberalization of electricity markets, with special at-
sing opportunities in the context of business sustainability
tention being paid to the acceleration provided for in
in the medium/long term, thus ensuring the compatibility
Italy and expected developments in South America;
of company operations with strategic objectives.
› developments in capacity payment mechanisms in the
The Board draws on the expertise of the Control and Risk
generation segment.
Committee, which issues prior opinions on a variety of mat-
ters, including the guidelines of the ICRMS.
In order to manage the risks associated with these deve-
The Group also has specific internal committees composed
lopments, Enel has intensified its relationships with local
of senior management personnel that are responsible for
governance and regulatory bodies, adopting a transparent,
governing and overseeing the identification, management,
collaborative and proactive approach in addressing and
monitoring and control of the main risks, taking due ac-
eliminating sources of instability in the legislative and re-
count of the specific operations of each Business Line and
gulatory framework.
their underlying processes in order to assess the potential
impacts and opportunities. Finally, the internal committees
ensure that the risk governance policy evolves in line with
business dynamics and the applicable regulatory context.
With regard to the COVID-19 pandemic, the actions taken
Macroeconomic and geopolitical
trends
in recent years by the Group to increase its resilience to
The considerable internationalization of the Group – which
such a scenario can leverage a sound financial position,
has a presence in many regions, including South America,
geographical diversification and an integrated business
North America, Africa and Russia – requires Enel to con-
model capable of mitigating and addressing unforeseen
sider economic and geopolitical trends at the global level
events and their potential effects with mitigation actions
in order to evaluate and appropriately measure systematic
and contingency plans.
and idiosyncratic risks of a macroeconomic, financial, in-
stitutional, social or climatic nature and those specifical-
The following discusses the main types of risks and oppor-
ly associated with the energy sector whose occurrence
tunities facing the Group.
could have a significant adverse impact on both revenue
flows and the value of corporate assets. Enel has adopted
a quantitative country risk assessment model capable of
promptly monitoring the riskiness of the countries in which
it operates.
79
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||Integrated Annual Report 2020 The country risk model is intended to measure the econo-
cing local governments to extend restrictions on mobility
mic resilience of each country, defined as the balance of its
and services (especially in the entertainment, restaurant
position with respect to the rest of the world, the effecti-
and tourist industries).
veness of internal policies, the vulnerabilities of its banking
and corporate system that might portend systemic crises
Recent data show that growth prospects for 2021 are more
and its attractiveness in terms of economic growth. This
optimistic than the previous year, thanks to recent deve-
process also includes an assessment of the robustness of
lopments in the production and subsequent distribution of
the country’s institutions and the political context and an
vaccines. These changes have prompted an upward revi-
in-depth analysis of social phenomena, measuring the level
sion of forecasts, pointing to a significant rebound in the
of well-being, inclusion and social progress. To complete
growth rates of many countries for 2021. However, there
the analysis, a quantification of extreme climate events as a
are severe risks associated with potential logistical obsta-
cause of stress at the environmental and economic level is
cles to the production and distribution of vaccines that
also performed and the effectiveness of the energy system
could slow the vaccination process and, consequently, de-
and its positioning within the energy transition process is
laying the emergence of many countries from the econo-
measured, as these are all essential factors for evaluating
mic and health crisis. In addition, new variants of the virus
the sustainability of investments in the medium to long
have been identified that have significantly increased the
term.
number of cases in some countries (for example, the Uni-
In order to mitigate this risk, the model supports the ca-
ted Kingdom) and generated greater uncertainty about the
pital allocation and investment evaluation processes. To
efficacy of the new vaccines.
further support the investment evaluation process, Enel
The governments and central banks of the major coun-
has adopted a methodology called “Total Societal Impact”
tries (first and foremost, the Federal Reserve, the Europe-
that, adopting an integrated approach based on advan-
an Central Bank and the Bank of England) have adopted
ced economic models, clearly and robustly expresses the
ultra-accommodative monetary policies (interest rates on
direct, indirect and induced impacts of investment initia-
refinancing operations close to zero and large volumes of
tives at the national, regional or local levels. By quantifying
securities purchases on the market, ensuring the availabi-
standard international metrics, Total Societal Impact covers
lity of inexpensive liquidity) and fiscal policies (subsidies) to
a wide range of economic, social and environmental indi-
support the economic recovery and reduce the damage to
cators that play a strategic role in correctly assessing the
the labor market. These actions have heavily burdened the
social and environmental contribution of Enel’s projects. In
budgets of governments and other institutions. The ability
fact, considering some of the indicators that can be analy-
of institutions to continue to implement these expansio-
zed, such as the contribution to GDP, the increase in inco-
nary policies in support of the economy in 2021 is exposed
me of the weakest social groups, the calculation of carbon
to substantial risks.
dioxide emissions avoided and the recovery of end-of-life
materials from a circular economy perspective, it is clear-
In July, the European Council reached an agreement on
ly now essential to have a broad overview of the situation
a recovery plan, the Next Generation EU program, which
in order to evaluate a specific project in a specific country
envisages €750 billion in funding (around 5.5% of EU27
with a view to creating shared value for all.
GDP in 2019), divided between loans (€360 billion) and
grants (almost €390 billion) to Member States. The actual
In 2020, the world economy was severely impacted by
implementation of this plan depends on the national go-
the COVID-19 pandemic, which spread rapidly around the
vernments, who must present projects eligible to receive
world, significantly undermining the outlook for economic
funding, and the methods of selecting projects vary at the
growth in the short to medium term. The crisis caused wor-
country level. In this regard, Enel can turn to Total Societal
ld GDP to contract by an estimated 4% on an annual basis
Impact, which is an effective tool for exploring the relevant
in 2020, which should be followed by a rebound of around
aspects that meet the needs of the Green Deal when se-
5% in 2021.
lecting investments.
The risks threatening the outlook for 2021 are mainly asso-
ciated with the continued spread of COVID-19, which could
Economic and socio-political risk factors in Latin America,
generate a third wave of the disease in many countries, for-
one of the areas most severely affected by the pandemic,
8080
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements must be monitored carefully. In particular, the political un-
intense meteorological conditions and the latter to more
certainty associated with presidential elections in Peru, the
gradual but structural changes in climate conditions.
vote in a Chilean referendum at the end of 2020 for the cre-
Extreme events expose the Group to the risk of prolonged
ation of a new constitution by 2022, the Brazilian elections
unavailability of assets and infrastructure, the cost of re-
in the medium term and the presidential elections in Co-
storing service, customer disruptions and so on. Chronic
lombia in 2020 all contribute to fueling downward risks for
changes in climate conditions expose the Group to other
the economic recovery, as they could push governments
risks or opportunities: for example, structural changes in
to implement populist (fiscally expansionary) measures
temperature could cause changes in electricity demand
that may not be welcomed by investors, accelerating ca-
and have an impact on output, while alterations in rainfall
pital outflows from their respective countries. On the latter
or wind conditions could impact the Group’s business by
point, Brazil, which implemented a very generous fiscal me-
increasing or decreasing potential electricity generation.
asures in 2020 (around 8% of GDP) in order to support fa-
milies and stimulate domestic demand, now has debt equal
to around 90% of GDP and a government deficit of around
14%, which undermine its resilience in the short-medium
The energy transition towards a more sustainable model
characterized by a gradual reduction of CO2 emissions has
risks and opportunities connected both with changes in
term. The possibility of a further extension of the family aid
the regulatory and legal context and trends in technology
program (“Coronavoucher”) in 2021 and delays in the ap-
development and competition, electrification and the con-
proval of structural reforms could further compromise the
sequent market developments.
economic stability and competitiveness of the country.
Finally, Argentina, which has been in a recession since 2017,
by Enel to determine risks and opportunities, the main
is concerned about its fiscal instability and the uncertain-
transition-related phenomena are beginning to emerge in
ties about ongoing debt restructuring negotiations with
relation to customer behavior, industrial strategies being
the International Monetary Fund.
adopted in all economic sectors and regulatory policies.
Consistent with the climate and transition scenarios used
Climate change
The identification and management of risks
connected with climate change
Climate change and the energy transition will impact Group
activities in a variety of ways.
By 2030, the transition trends will become visible in re-
sponse to the evolution of the context: the Enel Group has
decided to guide and facilitate the transition, preparing
to seize all the opportunities that may arise. As discussed
previously, our strategic choices, which are already stron-
gly oriented towards the energy transition, with more than
90% of investments directed at improving a number of the
Sustainable Development Goals, enable us to incorporate
In order to identify the main types of risk and opportuni-
risk mitigation and opportunity maximization “by design”,
ty and their impact on the business associated with them
adopting a positioning that takes account of the medium
in a structured manner consistent with the TCFD, we have
and long-term phenomena we have identified. The strate-
adopted a framework that explicitly represents the main
gic choices are accompanied by the operating best practi-
relationships between scenario variables and types of risk
ces adopted by the Group.
and opportunity, specifying the strategic and operational
approaches to managing them, comprising mitigation and
adaptation measures.
There are two main macro-categories of risks/opportuni-
ties: those connected with developments in physical va-
riables and those linked to the evolution of the transition
scenarios. The framework described has been created with
a view to ensuring overall consistency, making it possible to
analyze and evaluate the impact of physical and transition
phenomena within solid alternative scenarios, constructed
using a quantitative and modeling approach combined
with ongoing dialogue with both internal stakeholders and
external authorities.
Physical risks are divided in turn between acute (i.e. extre-
me events) and chronic, with the former linked to extremely
81
Integrated Annual Report 2020
FRAMEWORK OF MAIN RISKS AND OPPORTUNITIES
Scenario
phenomena
Time
horizon
Risk &
opportunity
category
Description
Impact
Management
approach
The Group adopts best practices to
manage the restoration of service as quickly
as possible. We also work to implement
investments in resilience. With regard to
risk assessment in insurance, the Group
has a loss prevention program for property
risk that also assesses the main exposures
to natural events. Looking forward, the
assessments will also include the potential
impacts of long-term trends in the most
significant climate variables.
The Group’s geographical and
technological diversification means
that the impact of changes (positive and
negative) in a single variable is mitigated
at the global level. In order to ensure that
operations always take account of weather
and climate phenomena, the Group adopts
a range of practices such as, for example,
weather forecasting, real-time monitoring
of plants and long-term climate scenarios.
The Group is minimizing its exposure to risks
through the progressive decarbonization
of its generation fleet. The Group’s strategic
actions, which are focused on investment
in renewables, networks and customers,
enable us to mitigate potential threats and
exploit the opportunities connected with the
energy transition. The Group is also actively
contributing to the formation of public
policies through its advocacy efforts. These
activities are conducted within platforms
for dialogue with stakeholders called
“Energy Transition Roadmaps” that explore
national decarbonization scenarios in the
various countries in which Enel operates in
environmental, economic and social terms.
The Group is maximizing opportunities
by adopting a strategy founded on the
energy transition and the rapid expansion
of renewable generation and the
electrification of energy consumption.
Acute
physical
Starting with short
term (1-3 years)
Extreme
events
Risk: especially extreme
weather/climate events.
Extreme events can
damage assets and
interrupt operations.
Chronic
physical
Starting with long
term (2030-2050)
Market
Risk/opportunity:
increase or decrease
in electricity demand;
increase or decrease
in output.
Electricity demand
is also affected by
temperature, whose
fluctuation can impact
our business.
Transition
Starting with
medium term
(2022-2030)
Policy &
Regulation
Risk/opportunity:
policies on CO2 prices
and emissions, energy
transition incentives,
greater scope for
investment in renewables
and resilience regulation.
Policies concerning
the energy transition
and resilience can
impact the volume
of and returns on
investments.
Transition
Starting with
medium term
(2022-2030)
Market
Risk/opportunity:
changes in the prices of
commodities and energy,
evolution of energy
mix, changes in retail
consumption, changes in
competitive environment.
Considering two
alternative transition
scenarios, the
Group assesses the
impact of trends in
the proportion of
renewable sources
in the energy mix,
electrification and the
penetration of EVs to
estimate their potential
impacts.
8282
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements
Transition
Starting with
medium term
(2022-2030)
Product &
Services
Starting with
medium term
(2022-2030)
Technology
The Group is maximizing opportunities
thanks to its strong positioning in new
businesses and “beyond commodity”
services.
The Group is maximizing opportunities
thanks to its strong positioning in global
networks.
Opportunity: increase
in margins and greater
scope for investment
as a consequence
of the transition in
terms of greater
penetration of new
electrical technologies
for residential
consumption and electric
transportation.
Trends in the
electrification of
transportation
and residential
consumption will
potentially have
an impact on our
business.
Considering two
alternative transition
scenarios, the Group
assesses the potential
opportunities to scale
up current businesses
in response to trends
in the electrification of
transportation.
The framework illustrated above also highlights the re-
fied, the best practices for the operational management
lationships that link the physical and transition scenarios
of weather and climate phenomena, and the qualitative
with the potential impact on the Group’s business. These
and quantitative impact assessments performed to date
effects can be assessed from the perspective of three
are discussed below. These activities are performed on the
time horizons: the short term (1-3 years), in which sensiti-
foundation of an ongoing effort during the year to analyze,
vity analyses based on the Strategic Plan presented to in-
assess and manage the phenomena giving rise to the risks
vestors in 2020 can be performed; the medium term (until
and opportunities identified. As declared by the TCFD, the
2029), in which it is possible to assess the effects of the
process of disclosing information on the risks and oppor-
energy transition; and the long term (2030-2050), in which
tunities connected with climate change will be gradual and
chronic structural changes in the climate should begin to
incremental from year to year.
emerge. The main sources of risk and opportunity identi-
83
Integrated Annual Report 2020 Chronic and acute physical phenomena:
repercussions on our business, risks and
opportunities
Taking the IPCC scenarios as our reference point, deve-
Chronic physical changes creating risks and
opportunities
The climate scenarios developed with the ICTP do not provi-
de definitive indications of structural changes before 2030,
lopments in the following physical variables and the asso-
but changes could begin to emerge between 2030 and 2050.
ciated operational and industrial impacts connected with
The main impacts of chronic physical changes would be
potential risks and opportunities are assessed.
reflected in the following variables:
VARIABLES
IMPACTED
BY CHRONIC
PHYSICAL
CHANGES
› Electricity demand: variation in the average temperature level with a potential increase or re-
duction in electricity demand.
› Thermal generation: variation in the level and average temperatures of the oceans and rivers,
with effects on thermal generation.
› Hydroelectric generation: variation in the average level of rainfall and snowfall and temperatu-
res with a potential increase or reduction in hydro generation.
› Solar generation: variation in the average level of solar radiation, temperature and rainfall with
a potential increase or reduction in solar generation.
› Wind generation: variation in the average wind level with a potential increase or reduction in
wind generation.
The Group will work to estimate the relationships between
As part of the assessment of the effects of long-term cli-
changes in physical variables and the change in the poten-
mate change, we have identified chronic events relevant to
tial output of individual plants in the different categories of
each technology and began the analysis of the related im-
generation technology.
pacts on potential output.
EVENT TYPE
Estimated Impact
Lower
Higher
Rain/Snow
Wind
Irradiance
Sea level
Temperature
Thermal
Solar
Wind
Hydro
Lines
Demand
8484
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements Scenario analysis has shown that chronic structural chan-
(+/-1% per year), whose variations can potentially impact
ges in the trends of physical variables will become signi-
the generation and retail businesses. It was stress tested
ficant beginning in 2030. However, in order to obtain an
for all countries in which the Group operates. The output
indicative estimate of the potential impacts, it is possible
potential of renewable plants was also stressed (+/-10%
to test sensitivity of the Business Plan to the factors poten-
over a single year). Variations in this variable can potentially
tially influenced by the physical scenario, regardless of any
impact the generation business. It was stressed separately
direct relationship with climate variables. Of course, such
at the individual technology level around the globe. The
stress testing has an extremely low probability of occur-
data reported show the effect on a single year for a single
rence based on historical events and geographical diver-
generation technology and include both the volume and
sification. The variables examined are electricity demand
price effects.
Scenario
phenomena
Risk &
opportunity
category
Time
horizon(1)
Description
of impact
GBL
affected
Scope
Quantification
- Type of
impact
Quantification - range
<100
€mn
100- 300
€mn
>300
€mn
Chronic
physical
Market
Short term
Chronic
physical
Market
Short term
Risk/opportunity:
Increase or decrease
in electricity demand.
Electricity demand
is also affected by
temperature, whose
fluctuations can have
an impact on our
business. Although
structural changes
should not emerge in
the short/medium-
term, in order to
assess the sensitivity of
Group performance to
potential temperature
variations, we have
performed an analysis
of sensitivity to changes
of +/- 1% in electricity
demand for the Group
as a whole.
Risk/opportunity:
Increase or decrease in
renewables generation.
Renewables generation
is also affected by the
availability of resources,
whose fluctuations
can have an impact on
our business. Although
structural changes
should not emerge in
the short/medium-
term, in order to
assess the sensitivity of
Group performance to
potential temperature
variations, we have
performed an analysis
of sensitivity to changes
of +/- 10% in potential
electricity output by
technology.
Global Power
Generation
and Global
Infrastructure
and Networks
Group
EBITDA/year
EBITDA/
year
Group
Potential
hydroelectric
output
Global Power
Generation
Group
Potential
wind output
EBITDA/
year
Group
Potential
solar output
EBITDA/
year
+1%
-1%
+10%
-10%
+10%
-10%
+10%
-10%
(1) Time horizon : short (2020-2022); medium (up to 2030); long (2030-2050).
Upside scenario
current policies
Downside scenario
current policies
85
Integrated Annual Report 2020 Acute physical changes creating risks
and opportunities
With regard to acute physical phenomena (extreme even-
currence interval. In other words, a catastrophic event
that has, for example, a recurrence interval of 250 years
has a probability of occurrence in any given year of 0.4%.
ts), the intensity and frequency of extreme physical phe-
This information, which is necessary for assessing the le-
nomena can cause significant and unexpected physical
vel of frequency of the event, is then associated with the
damage to assets and generate negative externalities as-
geographical distribution of Group assets.
sociated with the interruption of service.
Within climate change scenarios, the acute physical com-
For this purpose, the Group adopts the hazard map tool,
ponent plays a leading role in defining the risks to which
which associates the estimated frequency associated
the Group is exposed, both due to the broad geographical
with an extreme event, for the different types of natural
diversification of its asset portfolio and the primary impor-
disasters, with each geographical point of the global map.
tance of renewable resources in electricity generation.
This information, organized in geo-referenced databa-
Acute physical phenomena, in different cases such as wind
ses, can be obtained from global reinsurance companies,
storms, floods, heat waves, cold snaps, etc., are characteri-
weather consulting firms or academic institutions.
zed by considerable intensity and a frequency of occurren-
ce that, while not high in the short term, is clearly trending
› Vulnerability, which indicates in percentage terms how
upwards in medium and long-term climate scenarios.
much value would be lost upon the occurrence of a given
Therefore, the Group, for the reasons described above, is
catastrophic event. In more specific terms, reference can
already managing the risk associated with extreme even-
be made to the damage to material assets, the impact
ts in the short term. At the same time, the methodology is
on the continuity of electricity generation and/or distri-
also being extended to longer time horizons (up to 2050)
bution or the provision of electrical services to end users.
in accordance with the climate change scenarios that have
been developed (RCP 8.5, 4.5 and 2.6).
The Group, especially in the case of damage to its assets,
conducts and promotes specific vulnerability analyses
Extreme event risk assessment methodology
for each technology in its portfolio: solar, wind and hy-
In order to quantify the risk deriving from extreme events,
the Group uses a consolidated catastrophic risk analysis
approach, which is adopted in the insurance sector and
in the IPCC reports.(5) Through its insurance business units
and the captive insurance company Enel Insurance NV, the
Group manages the various phases of assessing the risks
connected with natural disasters: from assessment and
quantification to the corresponding insurance coverage to
minimize impacts.
The methodology is applicable to all extreme events that
can be analyzed, such as wind storms, heat waves, tropical
cyclones, flooding, etc. In all of these types of natural disa-
ster, three independent factors can be identified, as briefly
described below.
› The event probability (hazard), i.e. the theoretical fre-
quency of the event over a specific time frame: the re-
droelectric generation plants, transmission and distribu-
tion grids, primary and secondary substations, etc. The-
se analyses are naturally focused on the extreme events
that most impact the different types of technologies.
This produces a sort of matrix that associates the signifi-
cantly impacted type of asset with the individual natural
catastrophic events.
› Exposure is the set of economic values present in the
Group’s portfolio that could be materially impacted in
the presence of catastrophic natural events. Again, the
dimensions of the analyses are specific for the different
production technologies, distribution assets and servi-
ces to end users.
The three factors described above (hazard, vulnerability
and exposure) constitute the fundamental elements of any
assessment of the risk associated with extreme events. In
(5) L. Wilson, “Industrial Safety and Risk Management”, University of Alberta Press, Alberta 2003.
T. Bernold. “Industrial Risk Management”, Elsevier Science Ltd, Amsterdam, 1990.
H. Kumamoto and E.J. Henley, “Probabilistic Risk Assessment and Management for Engineers and Scientists”, IEEE Press, 1996.
Nasim Uddin, Alfredo H.S. Ang (eds.), “Quantitative risk assessment (QRA) for natural hazards”, ASCE, Germany, 2012.
UNISDR, “Global Assessment Report on Disaster Risk Reduction: Revealing Risk, Redefining Development”, UNISDR, Geneva, 2011.
IPCC, “Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation - A Special Report of Working Groups I-II of the Intergo-
vernmental Panel on Climate Change (IPCC)”, Cambridge University Press, Cambridge, 2012.
8686
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements
this sense, the Group, with respect to climate change sce-
The following table summarizes the scheme adopted for
narios, differentiates its risk analyses in accordance with
the assessment of the impacts deriving from acute physi-
the specificities of the various associated time horizons.
cal phenomena.
Time horizon
Hazard
Vulnerability
Exposure
Short term (1-3 years)
Hazard maps based on historical
data and meteorological models
Long term (to 2050
and/or 2100)
Hazard maps and specific studies for
the different RCP climate scenarios
of the IPCC
Vulnerability, being linked to the type of
extreme event, to the specifics of the
type of damage and to the technical
requirements of the technology in
question, is essentially independent of time
horizons
Group values in the short term
Group values in the long term
In the case of the vulnerability of assets within the portfo-
in collaboration with the relevant Global Business Lines of
lio, therefore, a priority table of the impacts of the main
the Group.
extreme events on the various technologies was defined
EVENT TYPE
Estimated Impact
Lower
Higher
Heatwave
Floods
Heavy
snow
Hailstorm
Windstorm
Wildfire
Thermal
Solar
Wind
Hydro
Lines
Demand
Risk management from extreme events in the short term
preventing losses that could be caused by extreme events.
Over the short term (1-3 years) the Group, in addition to
The general characteristics of these actions are illustrated
risk assessment and quantification, takes actions to redu-
below and, naturally, in the case of damage prevention and
ce the impacts that the business may suffer following cata-
mitigation activities, specific reference will be made to the
strophic extreme events. Two main types of action can be
Group’s Power Generation and Infrastructure and Networ-
distinguished: obtaining effective insurance coverage and
ks Global Business Lines.
87
Integrated Annual Report 2020 Insurance in the Enel Group
The intensification of the effects of climate change me-
Each year, the Group develops global insurance programs
ans it is essential to adopt adaptive behaviors: each cata-
for its businesses in the various countries in which it ope-
strophic event represents a lesson learned for Enel, from
rates. The two main programs, in terms of coverage and
which we draw inspiration to strengthen design techniques
volumes, are the following:
and preventive measures to ensure the resilience of the as-
› the Property Program for material damage to assets and
set portfolio.
the resulting business interruption. Accordingly, in addi-
From this perspective, the method and the information ex-
tion to the costs of rebuilding assets (or parts thereof),
tracted from the ex post analysis of events play a crucial
the financial losses due to the stoppage of electricity ge-
role in determining the processes and practices to be de-
neration and/or distribution are also covered, within the
ployed in mitigating such events in the future.
limits and conditions defined in the policies;
› the Liability Program, which insures harm caused to third
Generation
parties, including the impact that extreme events may
With regard to generation, over time the Group has imple-
have on the Group’s assets and business.
mented targeted measures at specific sites and establi-
shed ad hoc management activities and processes.
Based on effective risk assessment, it is possible to specify
Measures implemented for specific sites in recent years
appropriate limits and insurance conditions within the po-
include:
licies, and this also applies in the case of extreme natural
› improving cooling water management systems for cer-
events linked to climate change. In fact, in the latter case,
tain plants in order to counter the problems caused by
the impacts on the business can be significant but, as has
the decline in water levels on rivers, such as the Po in Italy;
happened in the past in various locations around the world,
› installing fogging systems to improve the flow of inlet air
the Group has demonstrated a high degree of resilience,
and offset the reduction in power output caused by the
thanks to the ample insurance coverage limits, thanks in
increase in ambient temperature in CCGTs;
part to the Group’s solid reinsurance capabilities through
› installing drainage pumps, raising embankments, perio-
the captive company Enel Insurance NV.
dic cleaning of canals and interventions to consolidate
The presence of this effective insurance coverage does not
land adjacent to plants to prevent landslides in order to
make the actions that the Group takes in the preventive
mitigate flood risks;
maintenance of its generation and distribution assets any
› periodic site-specific reassessments for hydro plants of
less important. In fact, while on the one hand the effects
flood scenarios using numerical simulations. The scena-
of these activities are immediately reflected in the mitiga-
rios developed are managed with mitigation actions and
tion of the impacts of extreme events, on the other hand
interventions on civil works, dams and water inlets.
they are a necessary prerequisite for optimizing and mini-
mizing the cost of the Group’s global insurance coverage
The Group adopts a series of best practices to manage the
programs for its risks, including the risk associated with
impact of weather events on power generation, such as:
natural catastrophic events.
8888
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements GROUP PRACTICES
FOR MANAGING
WEATHER EVENTS
IN GENERATION
OPERATIONS
› weather forecasting both to monitor renewable resource availability and detect extreme events,
with warning systems to ensure the protection of people and assets;
› hydrological simulations, land surveys (including the use of drones), monitoring any vulnerabili-
ties through digital GISs (Geographic Information Systems) and satellite measurements;
› advanced monitoring of over 100,000 parameters (with over 160 million historical measure-
Main policies:
ments) for dams and hydroelectric works;
No. 1106 Global
Power Generation
Maintenance
No. 1107 Global
Power Generation
O&M Operation
No. 1025 Dams
and Hydraulic
Infrastructure Safety
No. 1020 Global
Power Generation
Critical Event
Management
› real-time remote monitoring of generation plants;
› safe rooms in areas exposed to tornadoes and hurricanes, such as the wind farms in Oklahoma
in the United States;
› adoption of specific guidelines for performing hydrological and hydraulic studies from the ear-
liest development stages, aimed at assessing the risks inside plants and in the areas outside
plants, with application in the design phase of drainage and mitigation systems in compliance
with the principle of hydraulic invariance;
› verification of potential climate trends for the main project parameters in order to take them
into account in the sizing of systems for relevant projects (for example: assessments of the
temperature of the coolant source in order to ensure greater flexibility in cooling in new CCGTs);
› estimation of extreme wind speeds using updated databases containing the logs and historical
trajectories of hurricanes and tropical storms, enabling the selection of the wind turbine tech-
nology best suited to the emerging conditions.
In addition, in order to ensure rapid response to adverse
ving service quality as they are at reducing the risk of
events, the Group has adopted specific emergency ma-
prolonged and extended interruptions in the event of
nagement procedures with protocols for real-time com-
rare and high-impact critical events, using a probabilistic
munication and management of all activities to restore
approach.
operations rapidly and standard checklists for damage
› Readiness: this includes all measures aimed at increasing
assessment and the safe return to service for all plants as
the speed with which a potentially critical event can be
rapidly as possible.
Infrastructure and Networks
identified, ensuring coordination with Civil Protection
authorities and local institutions and preparing the ne-
cessary resources once a grid disruption has occurred.
In the Infrastructure and Networks Business Line, the Enel
› Response: this represents the phase in which the ope-
Group has adopted an approach in recent years called “4R”
rational capacity to cope with an emergency upon the
to cope with extreme climate events. A specific policy has
occurrence of an extreme event is assessed. It is directly
been developed (No. 486: 4R Innovative Resilience Strate-
related to the ability to mobilize operational resources in
gy for Power Distribution Networks) to define the measures
the field and the capacity to remotely restore power sup-
to be taken both in preparation for an emergency within
ply through resilient backup systems.
the network and for the prompt restoration of service once
› Recovery: this is the last phase, in which the goal is to
climate events have caused damage to assets and/or outa-
return the network to ordinary operating conditions as
ges. The 4R strategy is divided into four phases.
soon as possible in cases where an extreme weather
› Risk prevention: this includes actions that make it possi-
event has caused service interruptions despite the in-
ble to reduce the probability of losing network compo-
creased resilience measures taken previously.
nents because of an event and/or to minimize its effects,
Following this approach, the Business Line has prepared
i.e. interventions aimed both at increasing the robustness
various policies for specific actions to address the various
of the infrastructure and maintenance interventions. The
aspects and risks associated with climate change. In par-
former, in particular, are not directed so much at impro-
ticular:
89
Integrated Annual Report 2020 Policy No. 1073:
Guidelines for
Readiness Response
and Recovery
actions during
emergencies
Policy No. 387:
Guideline for
Network Resilience
Enhancement Plan
This policy covers the last three phases of the 4R approach, indicating guidelines and measures
to improve preparation strategies, mitigate the impact of total blackouts and, finally, restore ser-
vice to as many customers as possible in the shortest time possible.
This policy seeks to identify the most impactful extraordinary climate events on the network, to
evaluate the current status of the KPIs of the network and to improve them based on proposed
interventions in order to be able to evaluate the order of priority. In this manner, actions are selected
that, when implemented, will minimize the impact on the network of particularly critical extreme
events in a given area/region. The policy therefore covers the first two phases of the 4R approach,
suggesting measures regarding risk prevention and readiness.
In Italy, this policy has already been implemented through the Resilience Plan that e-distribuzione
has prepared each year since 2017, which represents an addendum to the Development Plan for
investments over a 3-year time horizon to reduce the impact of extreme events in certain criti-
cal areas, namely heat waves, icing and windstorms (with the associated risk of falling trees). In
2017-2019, some €400 million were invested and a similar amount will be invested in the following
three-year period (about €130 million/year), as specified in the addendum to the 2020-2022 Plan,
affecting approximately 3 million customers and up to 4,000 km of medium voltage lines. For exam-
ple, in the case of icing, a phenomenon linked to the breakage of the conductors of overhead lines
in the event of accumulation of wet snow, the risk of such interruptions has been assessed on the
basis of the probability of losing segments of the grid and then calculating the relative impact in
terms of customers without power and the loss in terms of power not delivered. To address these
risks, investments include the targeted replacement of uninsulated lines with insulated conductors,
the creation of less vulnerable alternative routes to restore power and the use of remote control
systems to isolate the section of the grid affected by the fault as quickly as possible.
As in Italy, similar issues are being explored in other countries, both in Europe and South America, in
order to prepare an ad-hoc investment planning process to enhance the resilience of networks to
extreme events, taking due account of the distinctive characteristics of each territory.
Policy No. 439:
Measures for Risk
Prevention and
Preparation in case
of wildfires affecting
the electrical
installations
An integrated approach is taken to the emergency management approach applied in the case of
forest fires, both where they are caused by the grid itself and where they are of external origin, that
could potentially threaten Enel plants. The document provides guidelines to be implemented in the
various territories involved to identify areas/plants at risk, define specific prevention measures (e.g.
evaluation of specific maintenance plans and any upgrades) and, in the event of a fire, manage the
emergency optimally in order to limit its impact and restore service as soon as possible.
SUPPORT
ACTIONS
These include the implementation of systems for weather forecasting, monitoring the status of
the network and evaluating the impact of critical climate phenomena on the network, the pre-
paration of operational plans and the organization of specific exercises. Particularly important in
this regard are advance agreements for the mobilization of extraordinary resources to respond to
emergencies, comprising both internal personnel and contractors.
Moreover, with a view not only to assessing weather emer-
mate their future impact on the network in the medium
gencies in the short/medium term, but also in considera-
and long term. The following are some examples.
tion of the climate change we are witnessing, Infrastructu-
re and Networks is collaborating with leading research
Heat waves
institutes to analyze trends in most critical threats (Table
› During 2020, heat waves in the countries in which Infra-
1) to the assets of the power distribution network in the
structure and Networks operates were investigated fur-
various countries in which the Group operates, and to esti-
ther. This critical event is characterized by the persisten-
9090
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements ce of high temperatures over a period of several days
Similar analyses are already planned in 2021 for the other
in correspondence with the absence of precipitation
countries in which Enel operates.
which, by hindering the dissipation of heat from under-
ground cables, causes an anomalous increase in the risk
Wildfires
of multiple failures on grids, especially in urban areas and
› With regard to fire risk, despite the insignificance of
in summer tourist locales. These analyses have provided
events recorded to date along Enel networks, which did
initial results for Italy, given the especially extensive histo-
not generate a need for an impact analysis, the Business
rical records of such events and the experience gained
Line, consistent with Policy no. 439 noted above, is pre-
with the measures provided for in the Resilience Plan.
paring an in-depth analysis of the scenarios for 2030
In light of the climate scenarios developed to evaluate
-2050 concerning the evolution of the phenomenon,
trends in heat waves in Italy and the historical correlation
with a view to possible improvements in the Policy itself.
of the extreme event-costs, taking a particularly criti-
cal year as a reference (2017, selected both because of
the intensity of heat waves that year and their extension
across the entire country), an initial estimate was obtai-
Transition phenomena: repercussions on our
business, risks and opportunities
With regard to the risks and opportunities associated with
ned for any costs associated with an increase in heat
transition variables, we use the different reference scena-
waves in 2030-2050. These estimates of the potential
rios in combination with the elements that make up the risk
prospective annual extra cost were assessed in the three
identification process (e.g. competitive context, long-term
RCP scenarios (over the 2030-2050 horizon), finding that
vision of the industry, materiality analysis, technological
in the RCP 2.6 scenario they do not represent more than
evolution, etc.) to identify the drivers of potential risks and
3% of the annual value of the measures envisaged in the
opportunities. Priority is given to the most material phe-
current 2020-2022 Resilience Plan described above and
nomena. The main risks and opportunities identified within
do not exceed 5% in the RCP 8.5 scenario.
this framework are described below.
PRIORITY EXTREME EVENTS INFRASTRUCTURE
AND NETWORKS AND MAIN
POLICIES/DEEP-DIVES
PRIORITY EXTREME EVENTS
Wildfires
Policy 486
Policy 1073
Policy 439
Heat
waves
Policy 486
Policy 1073
Policy 387
Policy
Icing
Wind
storms
Flooding
Policy 486
Policy 1073
Policy 387
Policy 486
Policy 1073
Policy 387
Policy 486
Policy 1073
Policy 387
Italy: Resilience
Plan
Italy: Resilience
Plan
Italy: Resilience
Plan
Deep-dive
Studies under way with research institutions
91
Integrated Annual Report 2020 Policy & Regulation
LIMITS ON
EMISSIONS AND
CARBON PRICING
INCENTIVES FOR
THE ENERGY
TRANSITION
The enactment of laws and regulations that introduce more stringent emission limits by gover-
nment action (non-market driven) and market-based mechanisms, such as a carbon tax in non-
ETS (Emissions Trading System) sectors or an expansion of the ETS in other sectors.
› Opportunities: command & control regulations and market-based mechanisms strengthening
CO2 price signals to foster investment in carbon-free technologies.
› Risks: lack of a coordinated approach among the various actors and policy-makers involved
and limited effectiveness of the policy instruments deployed, with an impact on the speed of
the trend towards electrification and decarbonization in the various sectors, compared with a
decisive group strategy focused on the energy transition.
Development incentives and opportunities with a view to the energy transition, consequently gui-
ding the energy system towards the use of low-emission energy resources as the mainstream
approach in the energy mixes of countries, greater electrification of energy consumption, energy
efficiency, flexibility of the electrical system and upgrading of infrastructure, with a positive im-
pact on the return on investment and new business opportunities.
› Opportunities: additional volumes and greater margins due to additional investment in the
electricity industry, in line with the electrification strategy, decarbonization and the upgrading/
digitalization of enabling infrastructure.
› Risks: obstacles to achieving energy transition targets due to regulatory systems that do no
effectively support the energy transition (delays in permitting processes, no upgrading of the
electricity grid, etc.).
To improve standards or introduce ad hoc mechanisms to incentivize investments in resilience in
the context of the evolution of climate change.
RESILIENCE
REGULATION
› Opportunities: benefits from investments that reduce service quality and continuity risks for
the community.
› Risks: in the case of especially severe extreme events with a greater-than-expected impact,
there is a risk that recovery could be slower than planned, with an associated reputational risk.
Incentives for the energy transition through appropriate policy measures and financial instrumen-
ts, which should be capable of supporting an investment framework and a long-term, credible
and stable positioning of policy-makers. Introduction of rules and/or public and private financial
instruments (e.g. funds, mechanisms, taxonomies, benchmarks) aimed at integrating sustainabili-
ty into financial markets and public finance instruments.
FINANCIAL
MEASURES FOR
THE ENERGY
TRANSITION
› Opportunities: the creation of new markets and sustainable finance products consistent with
the investment framework, activating greater public resources for decarbonization and access
to financial resources in line with energy transition objectives and the related impact on costs
and on finance charges; introduction of subsidized support tools (funds and calls) for the tran-
sition.
› Risks: actions and instruments are not sufficient to provide incentives consistent with an overall
positioning tailored to the energy transition, uncertainty or slowdown in the introduction of new
instruments and rules due to the deterioration in the public finances or differences in applica-
tion in the geographic areas in which the Group operates.
9292
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements Market
MARKET
DYNAMICS
Technology
PENETRATION
OF NEW
TECHNOLOGIES
Products
and Services
ELECTRIFICATION
OF RESIDENTIAL
ENERGY
CONSUMPTION
ELECTRIC
MOBILITY AND
ELECTRIFICATION
OF INDUSTRIAL
ENERGY
CONSUMPTION
Market dynamics, such as those connected with the variability of commodity prices, the increase
in electricity consumption due to the energy transition and the penetration of renewables, have
an impact on business drivers, with effects on margins and on production and sales volumes.
› Opportunities: positive effects associated with the growth in electricity demand and the greater
room for renewables and all sources of flexibility.
› Risks: exposure of merchant technologies to market price volatility.
Gradual penetration of new technologies such as storage, demand response and green hydro-
gen; digital lever to transform operating models and “platform” business models.
› Opportunities: investments in developing technology solutions.
With the gradual electrification of end uses, the penetration of products with lower costs and
a smaller impact in terms of local residential emissions will expand (for example, the use of heat
pumps for heating and cooling).
› Opportunities: increase in electricity consumption against a background of declining energy
consumption thanks to the greater efficiency of electricity.
› Risks: additional competition in this market segment.
Use of more efficient and effective modes of transportation from the point of view of climate
change, with a special focus on the development of electric mobility and charging infrastructure;
electrification of industrial energy users.
› Opportunities: positive effects of the increase in electricity demand and greater margins connected
with the penetration of electric transportation and associated “beyond commodity” service.
The Group has already taken strategic actions to mitiga-
te potential risks and exploit the opportunities offered by
the energy transition. Thanks to our industrial and financial
to the price of CO2 (ETS). Examining the main transition va-
riables, the price of CO2 appears to be an especially re-
liable driver of regulatory measures that could accelerate
strategy incorporating ESG factors, an integrated approa-
the transition process.
ch shaped by sustainability and innovation makes it possi-
ble to create long-term shared value.
A strategy focused on complete decarbonization and the
energy transition makes the Group resilient to the risks as-
To assess the impact of possible changes in this driver, the
effects of a potential change of +/-10% in the CO2 price for
Italy and Spain are determined. This price change would
sociated with the introduction of more ambitious policies
modify the equilibrium price of both wholesale markets,
for emissions reductions and maximizes opportunities for
with repercussions on the margins of Global Power Gene-
the development of renewable generation, infrastructure
ration for both conventional and renewables plants.
and enabling technologies.
Unlike chronic climate impacts, developments in the tran-
To quantify the risks and opportunities engendered by the
sition scenario could have impacts in the short and me-
energy transition in the long term, the transition scenarios
dium/long term (by 2030) as well.
described in the section “The transition scenario” have
been considered for Italy and Spain. The effects on the
As with climate variables, we can test the current Business
variables that can most influence the business were then
Plan (2021-2023) for its sensitivity to the factors potentially
identified. In the Brighter Future scenarios, these include
influenced by the transition scenario, with particular regard
electricity demand driven by greater electrification of con-
93
Integrated Annual Report 2020 sumption and the power generation mix. These considera-
These developments will lead to the decentralization of
tions offer ideas for determining what the Group’s strategic
power withdrawal/injection points, an increase in electricity
positioning for resource allocation could be. The dynamics
demand and the average power required, and strong varia-
of the energy transition could bring growing opportunities
bility of energy flows, requiring dynamic and flexible mana-
for the Group in the context of greater ambition for de-
gement of the network. The Group, therefore, expects that
carbonization and energy efficiency. In particular, on the
in this scenario incremental investments will be needed to
retail electricity market, the progressive electrification of
ensure connections and adequate levels of quality and re-
final consumption – in particular in transportation and the
silience, encouraging the adoption of innovative operating
residential segment – will lead to a significant increase in
models. These investments must be accompanied by con-
electricity consumption to the detriment of other forms of
sistent policy and regulatory scenarios to ensure adequate
energy.
financial returns within the distribution Business Line.
With regard to the financial impact of changes in transition
scenarios, the Group analyzed the impact of the Brighter
Future scenario on 2030 results in terms of EBITDA com-
pared with the Reference scenario.
Given the ambition defined in the national plan, the two
scenarios in Iberia would not see substantial increases in
the penetration of renewable energy, and therefore no si-
gnificant impacts deriving from changes in electricity pri-
ces are expected.
Conversely, in Italy the Brighter Future scenario enables a
greater penetration of renewable energy, with additive ef-
fects on installed capacity, partially offset by a possible re-
duction in electricity prices. Similar effects are highly likely
in other areas, such as North America.
With regard to the electrification of consumption, however,
the Brighter Future scenario envisages higher penetration
rates of the most efficient electrical technologies. In par-
ticular, a substantial increase in electric vehicles and hea-
ting/cooling systems based on heat pumps would give rise
to a 5% increase in demand compared with the Reference
scenario, with positive impacts both on the Retail business
and on the “beyond commodity” services offered by Enel X.
The greater penetration of heat pumps could at the same
time lead to a reduction in gas sales in the Retail segment
as a result of gradual switching to electricity. However, it
is expected that the overall effect on EBITDA performance
would be positive, accompanied by a reduction in Scope 3
CO2 emissions connected with the SBTi targets.
As noted above, the Brighter Future scenario will entail a
considerable increase in the complexities that will have to
be managed by grids in the various geographical areas.
In fact, we expect a significant increase in distributed ge-
neration and other resources, such as storage systems,
the greater penetration of electric mobility with the rela-
ted charging infrastructures, as well as the growing rate of
electrification of consumption and the appearance of new
actors with new modes of consumption.
9494
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements TRANSITION
Risk &
opportunity
category
Time
horizon(1)
Description
and impact
GBL
affected
Scope
Quantification
- Type of
impact
Quantification - range
<100
€mn
100-
300
€mn
>300
€mn
Risk: Impact on margin due to
measures affecting CO2 price.
Global Power
Generation
Italy and
Iberia
EBITDA/year
+10%
-10%
Policy &
Regulation
Short/
medium term
Global Power
Generation
Medium term
Market
Medium term
Product
& Services
Medium term
Considering the potential impact of
regulatory measures to incentivize
energy transition, the Group assesses
the exposure to changes of +/- 10%
in the price of CO2 using sensitivity
analysis.
Opportunity: Greater room for
investment in new renewables
capacity. Risk: Decrease in power
prices due to increased penetration
of renewables.
Considering the two alternative
transition scenarios, the Group
assessed the impact of an increase
in the penetration of renewables on
the benchmark power price and on
additional capacity at 2030.
Opportunity: Increase in margins due
to impact of transition on electrification
of energy consumption. Risk: Increase
in competition and possible decrease in
market share.
Considering two alternative transition
scenarios, the Group assesses the
impact of trends in efficiency, the
adoption of electric devices and
the penetration of EVs to estimate
its potential effect on electricity
demand, including the effect on
gas customers associated with the
increase in electrification.
Opportunity: Increase in margins and
greater scope for investment due
to impact of transition in terms of
penetration of new technologies and
electric transportation.
Considering two alternative transition
scenarios, the Group has assessed the
impact of trends in the electrification
of transportation and residential
consumption to assess the potential
effects.
Global Power
Generation
Italy and
Iberia
EDITDA 2030
Brighter vs
Reference
End-user
Markets
Italy and
Iberia
EBITDA
2030
Brighter vs
Reference
Enel X
Italy and
Iberia
EBITDA 2030
Brighter vs
Reference
(1) Time horizon : short (2020-2022); medium (up to 2030); long (2030-2050).
Upside scenario
current policies
Downside scenario
current policies
Competitive environment
energy vector, competition driven by contiguous sectors is
also rising, although this offers utilities the opportunity to
The markets and businesses in which the Group operates
move into new businesses.
are exposed to steadily growing competition and evo-
The differentiation on which the Group can count, both ge-
lution, from both a technological and regulatory point of
ographically and in the various sectors in which it operates,
view, with the timing of these developments varying from
is an important mitigation factor, but in order to orient stra-
country to country.
tegic development guidelines more effectively, the evolu-
As a result of these processes, Enel is exposed to growing
tion of the competitive environment is constantly monito-
competitive pressure and, as electricity is this century’s
red, both inside and outside the world of utilities.
95
Integrated Annual Report 2020
Financial risks
responsibilities for risk management, monitoring and con-
trol processes, ensuring compliance with the principle of
organizational separation of units responsible for opera-
As part of its operations, Enel is exposed to a variety of
tions and those in charge of monitoring and managing risk.
financial risks that, if not appropriately mitigated, can di-
The financial risk governance system also defines a system
rectly impact our performance.
of operating limits at the Group and individual Region and
In line with the Group’s risk catalog, these risks include the
Country levels for each risk, which are monitored periodi-
following:
cally by risk management units. For the Group, the system
of limits constitutes a decision-making tool to achieve its
objectives.
For further information on the management of financial
risks, please see note 45 of the consolidated financial sta-
tements.
The internal control and risk management system provides
for the specification of policies that establish the roles and
INTEREST
RATE
The Group is exposed to the risk that changes in the level of interest rates could produce
unexpected changes in net financial expense or financial assets and liabilities measured at fair
value.
The exposure to interest rate risk derives mainly from the variability of the terms of financing,
in the case of new debt, and from the variability of the cash flows in respect of interest on floa-
ting-rate debt.
The interest rate risk management policy seeks to contain financial expense and its volatility by
optimizing the Group’s portfolio of financial liabilities and using OTC derivatives.
Risk control through specific processes, risk indicators and operating limits enables us to limit
possible adverse financial impacts and, at the same time, to optimize the structure of debt with
an adequate degree of flexibility. The volatility that characterized the financial markets from the
outset of the pandemic has in many cases returned to pre-COVID 19 levels and was offset by risk
mitigation actions using derivative financial instruments.
Enel operates in energy markets and for this reason is exposed to the risk of incurring losses as a
result of an increase in the volatility of commodity prices, such as the prices of fuels and electri-
city (price risk), or owing to a lack of demand or commodity shortages (volume risk).
If not managed effectively, these risks can have a significant impact on results. To mitigate this
exposure, the Group has developed a strategy of stabilizing margins by contracting for supplies
of fuel and the delivery of electricity to end users or wholesalers in advance.
COMMODITY
commodity risk, the specification of a ceiling for maximum acceptable risk and the implemen-
Enel has also implemented a formal procedure that provides for the measurement of the residual
tation of a hedging strategy using derivatives on regulated markets and over-the-counter (OTC)
markets. The commodity risk control process limits the impact of unexpected changes in market
prices on margins and, at the same time, ensures an adequate margin of flexibility that makes it
possible to seize short-term opportunities.
In order to mitigate the risk of interruptions in fuel supplies, the Group has diversified fuel sour-
ces, using suppliers from different geographical areas.
9696
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements In 2020, the spread of the COVID-19 pandemic triggered a complex global economic crisis, cau-
sing significant increases in commodity price volatility. Enel has contained the risk below the limits
estimated in 2019 for the current year, thanks to careful and timely mitigation measures, the
geographical diversification of our business, the growing impetus given to the energy transition
through the decarbonization process and the use of renewable sources for power generation.
Finally, the adoption of global and local strategies, such as flexibility in contractual clauses and
proxy hedging techniques (in the event that hedging derivatives are not available on the market
or are not sufficiently liquid), has made it possible to optimize results even in a highly dynamic
market context.
In view of their geographical diversification, access to international markets for the issuance of
debt instruments and transactions in commodities, Group companies are exposed to the risk
that changes in exchange rates between the presentation currency and other currencies could
generate unexpected changes in the performance and financial aggregates in their respective
financial statements.
Given the current structure of Enel, the exposure to currency risk is mainly linked to the US
dollar and is attributable to:
› cash flows in respect of the purchase or sale of fuel or electricity;
› cash flows in respect of investments, dividends from foreign subsidiaries or the purchase or
sale of equity investments;
› cash flows connected with commercial relationships;
› financial assets and liabilities.
CURRENCY
RISK
The Group’s consolidated financial statements are also exposed to the currency risk deriving
from the translation into euros of the items relating to investments in companies whose pre-
sentation currency is not the euro (translation risk).
The currency risk management policy is based on systematically hedging the exposures of the
Group companies, with the exception of translation risk.
Appropriate operational processes ensure the definition and implementation of appropriate
hedging strategies, which typically employ financial derivatives obtained on OTC markets.
Risk control through specific processes and indicators enables us to limit possible adverse fi-
nancial impacts and, at the same time, to optimize the management of cash flows on the ma-
naged portfolios.
During the year, currency risk was managed through compliance with the risk management
policies, encountering no difficulties in accessing the derivatives market.
The volatility that characterized the financial markets during the initial phase of the pandemic
has in many cases returned to pre-COVID 19 levels and was offset by risk mitigation actions
using derivative financial instruments.
The Group’s commercial, commodity and financial transactions expose it to credit risk, i.e. the
possibility that a deterioration in the creditworthiness of counterparties or the failure to dischar-
ge contractual payment obligations could lead to the interruption of incoming cash flows and an
increase in collection costs (settlement risk) as well as lower revenue flows due to the replacement
of the original transactions with similar transactions negotiated on unfavorable market conditions
(replacement risk). Other risks include the reputational and financial risks associated with signi-
ficant exposures to a single counterparty or groups of related customers, or to counterparties
operating in the same sector or in the same geographical area.
Accordingly, the exposure to credit risk is attributable to the following types of operations:
97
CREDIT AND
COUNTERPARTY
Integrated Annual Report 2020 › the sale and distribution of electricity and gas in free and regulated markets and the supply of
goods and services (trade receivables);
› trading activities that involve the physical exchange of assets or transactions in financial instru-
ments (the commodity portfolio);
› trading in derivatives, bank deposits and, more generally, financial instruments (the financial
portfolio).
The policy for managing credit risk associated with commercial activities and transactions in
commodities provides for a preliminary assessment of the creditworthiness of counterparties and
the adoption of mitigation instruments, such as obtaining guarantees.
The control process based on specific risk indicators and, where possible, limits ensures that
the economic and financial impacts associated with a possible deterioration in credit standing
are contained within sustainable levels. At the same time, this approach preserves the necessary
flexibility to optimize portfolio management.
In addition, the Group undertakes transactions to factor receivables without recourse, which re-
sults in the complete derecognition of the corresponding assets involved in the factoring.
Finally, with regard to financial and commodity transactions, risk mitigation is pursued through
the diversification of the portfolio (giving preference to counterparties with a high credit rating)
and the adoption of specific standardized contractual frameworks that contain risk mitigation
clauses (e.g. netting arrangements) and possibly the exchange of cash collateral.
Despite the deterioration in the collection status of certain customer segments, which was taken
into consideration in determining impairment of trade receivables, the Group’s portfolio has so far
demonstrated resilience to the global pandemic. This reflects the expansion of digital collection
channels and a solid diversification of commercial customers with a low exposure to the impact
of COVID-19 (e.g. utilities and distribution companies).
Enel’s liquidity risk management policy is designed to maintain sufficient liquidity to meet expected
commitments over a given time horizon without resorting to additional sources of financing, also
retaining a prudential liquidity reserve, sufficient to meet any unexpected commitments. Further-
more, in order to meet its medium and long-term commitments, Enel pursues a borrowing stra-
tegy that provides for a diversified structure of funding sources, which it uses to meet its financial
needs, and a balanced maturity profile.
Liquidity risk is the risk that the Group, while solvent, would not be able to discharge its obliga-
tions in a timely manner or would only be able to do so on unfavorable terms or in the presence
of constraints on disinvestment from assets with consequent capital losses, owing to situations
LIQUIDITY
of tension or systemic crises (credit crunches, sovereign debt crises, etc.) or changes in the per-
ception of Group riskiness by the market.
Among the factors that define the risk perceived by the market, the credit rating assigned to Enel
by rating agencies plays a decisive role, since it influences its ability to access sources of financing
and the related financial terms of that financing. A deterioration in the credit rating could there-
fore restrict access to the capital market and/or increase of the cost of funding, with consequent
negative effects on the financial position, financial performance and cash flows of the Group.
In 2020, Enel’s risk profile did not change compared with 2019. Accordingly, at the end of the
year, Enel’s rating was: (i) “BBB+” with a stable outlook for Standard & Poor’s; (ii) “A-” with a stable
outlook for Fitch; and (iii) “Baa2” with a positive outlook for Moody’s. On January 15, 2021, Moody’s
increased its Enel rating to Baa1. The upgrade reflected the progress achieved in improving the
9898
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements Group’s risk profile, the result of constant investment in grids and renewable energy, greater ge-
ographical diversification and a focus on centralized financing.
Enel’s liquidity risk management policies are designed to maintain a level of liquidity sufficient to
meet its obligations over a specified time horizon, without having recourse to additional sources
of financing, as well as to maintain a prudential liquidity buffer sufficient to meet unexpected
obligations. In addition, in order to ensure that the Group can discharge its medium and long-
term commitments, Enel pursues a borrowing strategy that provides for a diversified structure of
financing sources to which it can turn and a balanced maturity profile.
In order to manage liquidity efficiently, treasury activities have largely been centralized at the hol-
ding company level, meeting liquidity requirements primarily by drawing on the cash generated
by ordinary operations and managing any cash surpluses appropriately.
As regards the impact of COVID-19, despite the effects of the pandemic the liquidity risk indices
monitored for the Group remained within the limits established for 2020.
99
Integrated Annual Report 2020 Digital Technology risks
The risks discussed in this section are as follows:
The speed of technological developments that constantly generate new challenges, the ever increasing
frequency and intensity of cyber attacks and the attraction of critical infrastructures and strategic indu-
strial sectors as targets underscore the potential risk that, in extreme cases, the normal operations of
companies could grind to a halt. Cyber attacks have evolved dramatically in recent years: their number
has grown exponentially, as has their complexity and impact (theft of company data on customers),
making it increasingly difficult to promptly identify the source of threats. In the case of the Enel Group,
this exposure reflects the many environments in which it operates (data, industry and people), a circu-
mstance that accompanies the intrinsic complexity and interconnection of the resources that over the
years have been increasingly integrated into the Group’s daily operating processes.
The Group has adopted a holistic governance approach to cyber security that is applied to all the sec-
tors of IT (Information Technology), OT (Operational Technology) and IoT (Internet of Things). The fra-
mework is based on the commitment of top management, on global strategic management, on the
involvement of all business areas as well as on the units involved in the design and management of our
systems. It seeks to use cutting edge technologies, to design ad hoc business processes, to strengthen
people’s IT awareness and to implement regulatory requirements for IT security.
In addition, the Group has developed an IT risk management methodology founded on “risk-based” and
“cyber security by design” approaches, thus integrating the analysis of business risks into all strategic
decisions. Enel has also created its own Cyber Emergency Readiness Team (CERT) in order to proactively
respond to any IT security incidents.
Finally, back in 2019, the Group also took out an insurance policy for cyber security risks in order to
mitigate IT threats.
The Group is carrying out a complete digital transformation of how it manages the entire energy va-
lue chain, developing new business models and digitizing its business processes, integrating systems
and adopting new technologies. A consequence of this digital transformation is that the Group is
increasingly exposed to risks related to the functioning of the IT systems, which are integrated across
the Company with impacts on processes and operations, which could expose IT and OT systems to
service interruptions or data losses.
These risks are managed using a series of internal measures developed by the Global Digital Solu-
tions (GDS) unit, which is responsible for guiding the Group’s digital transformation. It has set up an
internal control system that introduces control points along the entire IT value chain, enabling us to
prevent the emergence of risks engendered by such issues as the creation of services that do not
meet business needs, the failure to adopt adequate security measures and service interruptions.
The internal control system of the Global Digital Solutions unit oversees both the activities performed
in-house and those outsourced to external associates and service providers. Furthermore, Enel is
promoting the dissemination of a digital culture and digital skills within the Group in order to succes-
sfully guide the digital transformation and minimize the associated risks.
CYBER
SECURITY
DIGITALIZATION,
IT EFFECTIVENESS
AND SERVICE
CONTINUITY
100100
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The risks discussed in this section are as follows:
HEALTH AND
SAFETY
The main health and safety risks to which Enel personnel and contractors are exposed are asso-
ciated with operations at the Group’s sites and assets. The violation of the laws, regulations and
procedures governing health and safety, work environments, management of corporate structu-
res, assets and processes, which could have an adverse impact on the health of employees,
workers or stakeholders, can give rise to the risk of incurring administrative or judicial penalties
and related economic, financial and reputational impacts. These risks were identified through
an analysis of the main events that have occurred in the last three years. In particular, in terms of
probability of occurrence, mechanical incidents (falls, collisions, crushing and cuts) are the most
common, while the most severe in terms of potential associated impact are electrical incidents
(possibly fatal injuries).
In addition, in relation to the presence of the Group in different areas of the world, employees
and contractors could be exposed to health risks connected with potential emerging infectious
diseases of a pandemic and potentially pandemic nature, which could have an impact on their
health and well-being.
Enel has adopted a Declaration of Commitment to Health and Safety, signed by the Group’s top
management.
In implementing the policy, each Group Business Line has its own Occupational Health and Safety
Management System compliant with the international standard BS OHSAS 18001, which is based
on the identification of hazards, the qualitative and quantitative assessment of risks, the planning
and implementation of prevention and protection measures, the verification of the effectiveness
of the prevention and protection measures and any corrective actions. This system also consi-
ders the rigor employed in the selection and management of contractors and suppliers and the
promotion of their involvement in programs for continuous improvement of safety performance.
The Enel Group has defined a structured health management system, based on prevention and
protection measures, which also plays a role in the development of a corporate culture aimed at
promoting the psycho-physical health and organizational well-being of workers, as well as hel-
ping to balance personal and professional life.
Furthermore, with regard to emergencies relating to health, safety and the environment, a unit
has been set up within the HSEQ department of the Parent with liaisons in each Business Line and
Country in order to ensure the definition of the global strategy and policies for emergency mana-
gement and their adoption in every Group organization. In particular, this organizational structure
and the related management processes make it possible to direct, integrate and monitor, both at
Group level and in the individual countries in which it operates, all the prevention, protection and
intervention actions aimed at protecting the health of employees and contractors, also in relation
to exogenous health risk factors that may not be strictly related to work activities.
101
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||Integrated Annual Report 2020 Recent years have seen the continuation of the growth in the sensitivity of the entire community
to risks connected with development models that impact the quality of the environment and
ecosystems with the exploitation of scarce natural resources (including raw materials and water).
In some cases, the synergistic effects between these impacts, such as global warming and the in-
creasing exploitation and degradation of water resources, have increased the risk of environmen-
tal emergencies in the most sensitive areas of the planet, with the risk of sparking competition
among different uses of water resources such as industrial, agricultural and civil uses.
In response to these needs, governments have imposed increasingly restrictive environmental re-
gulations, placing ever more stringent constraints on the development of new industrial initiatives
and, in the most impactful industries, incentivizing or requiring the elimination of technologies no
longer considered sustainable.
In this context, companies in every sector, and above all industry leaders, are ever more aware
that environmental risks are economic risks. As a result, they are called upon to increase their
commitment and accountability for developing and adopting innovative and sustainable technical
solutions and development models.
Enel has made the effective prevention and minimization of environmental impacts and risks a
foundational element of each project across its entire life cycle.
ENVIRONMENT
The adoption of ISO 14001-certified environmental management systems across the entire
Group ensures the implementation of structured policies and procedures to identify and manage
the environmental risks and opportunities associated with all corporate activities. A structured
control plan combined with improvement actions and objectives inspired by the best environ-
mental practices, with requirements exceeding those for simple environmental regulatory com-
pliance, mitigate the risk of impacts on the environment, reputational damage and litigation. Also
contributing are the multitude of actions to achieve the challenging environmental improvement
objectives set by Enel, such as those regarding atmospheric emissions, waste production and
water consumption, especially in areas with high water stress.
The risk of water scarcity is directly mitigated by Enel’s development strategy, which is based
on the growth of generation from renewable sources that are essentially not dependent on the
availability of water for their operation. Special attention is also devoted to assets in areas with a
high level of water stress, in order to develop technological solutions to reduce consumption. On-
going collaboration with local river basin management authorities enables us to adopt the most
effective shared strategies for the sustainable management of hydroelectric generation assets.
Finally, appropriate terrestrial, marine and river monitoring actions are being implemented in
ecosystems to verify the effectiveness of the measures adopted to protect, restore and conserve
biodiversity.
The purchasing processes of Global Procurement and the associated governance documents form
a structured system of rules and control points that make it possible to combine the achievement of
economic business objectives with full compliance with the fundamental principles set out in the Code
of Ethics, the Enel Global Compliance Program, the Zero-Tolerance-of-Corruption Plan and the Human
Rights Policy, without renouncing the promotion of initiatives for sustainable economic development.
The procedures governing procurement processes are all designed to ensure conduct imbued
with the utmost respect for key values such as loyalty, professionalism, collaboration, transparen-
cy and traceability of decision-making processes.
These principles have been incorporated into the organizational processes and controls that Enel
has voluntarily decided to adopt in order to establish relationships of trust with all its stakeholders,
as well as define stable and constructive relationships that are not based exclusively on ensuring
financial competitiveness but also take account of best practices in essential areas for the Group,
PROCUREMENT,
LOGISTICS &
SUPPLY CHAIN
102102
134562Strategy & Risk ManagementPerformance& MetricsOutlookGovernanceEnel GroupConsolidated financial statements such as the avoidance of child labor, occupational health and safety and environmental responsibility.
In this sense, the Global Procurement procedural system guides the daily operations of the va-
rious procurement units, which by systematically adopting tender procedures ensure maximum
competition and equal access opportunities for all vendors meeting the specified technical, eco-
nomic/financial, environmental, safety, human rights, legal and ethical requirements.
The supplier qualification system applies to the entire Enel Group and governs compliance with
the aforementioned requirements. Enel uses the qualification system – even before the procure-
ment process begins – to verify that its potential suppliers are in line with its strategic vision and
expectations in all the areas mentioned and that they are inspired by the same values.
The global supplier qualification system enables the accurate assessment of companies wishing
to participate in procurement procedures and represents a guarantee for Enel, since it gives the
Group an updated list of suppliers of proven reliability to draw from and makes it possible, in com-
pliance with applicable regulations, to call on suppliers in procurement tenders initiated by Group
companies. The qualification procedure is completed by the Supplier Performance Management
process, which monitors supplier performance with regard to the appropriateness of their con-
duct during the tender, quality, punctuality and sustainability in the execution of the contract.
Direct procurement without a competitive tender can only be used in exceptional cases, duly
motivated, in compliance with applicable legislation.
The effectiveness of supply chain risk management is monitored using a number of performance
indicators (including the concentration of contracts with individual suppliers or industrial groups,
the supplier’s dependence on Enel, the turnover rate of suppliers, etc.), for which thresholds are
specified that guide the definition of the procurement strategy.
The actions taken to counter the impact of the COVID-19 emergency have focused in differentiating sup-
ply sources to avoid interruptions in the supply chain and the remote performance of activities that would
ordinarily require physical interaction between Enel and the supplier (e.g. inspections at the company).
The profound transformations of the energy sector, which has experienced sweeping technolo-
gical developments, require companies in the industry to recruit people with new experience and
professional skills, as well as imposing the need for major cultural and organizational changes.
Organizations must move to adopt new, agile and flexible business models. Policies to enhance
diversity and to manage and promote talent have become key factors for companies that are
managing the transition and have a widespread geographical presence.
Enel places the people who work for it at the center of its business model: the management of
human capital is a priority for which specific objectives have been established. The main goals
include: the development of the digital capabilities and skills made necessary by the Fourth In-
dustrial Revolution, as well as the promotion of reskilling and upskilling programs for employees
PEOPLE AND
ORGANIZATION
in order to support the energy transition; the effective involvement of employees in the pursuit
of the corporate purpose, which ensures the achievement of better results while offering greater
satisfaction to our people; the development of systems for evaluating the working environment
and performance; the dissemination of diversity and inclusion policies to all countries in which
the Group operates, as well as instilling an inclusive organizational culture based on the principles
of non-discrimination and equal opportunity, a key driver in ensuring that everyone can make an
effective contribution. In addition, Enel is developing specific initiatives to foster the diffusion of
agile working methods in business processes. The Group is committed to enhancing the resi-
lience and flexibility of organizational models through simplification and digitalization in order to
enable the effectiveness and autonomy of our people within new flexible working schemes, which
have already been effectively tested in the response to the COVID-19 pandemic emergency, whi-
ch will be a key element of future approaches to work.
103
Integrated Annual Report 2020 Compliance
The risks discussed in this section are as follows:
RISKS CONNECTED
WITH THE
PROTECTION OF
PERSONAL DATA
In the era of the digitalization and globalization of markets, Enel’s business strategy has focused on ac-
celerating the transformation towards a business model based on a digital platform, using a data-driven
and customer-centric approach implemented along the entire value chain.
The Company, which is present in more than 40 countries, has the largest customer base in the public
services sector (about 70 million customers), and currently employs some 67,000 people. Consequently,
the Group’s new business model requires the management of an increasingly large and growing volu-
me of personal data in order to achieve the financial and business results envisaged in the 2021-2023
Strategic Plan.
This exposes Enel to the risks connected with the protection of personal data (an issue that must also
take account of the substantial growth in privacy legislation in most of the countries in which Enel opera-
tes). These risks may result in the loss of confidentiality, integrity or availability of the personal information
of our customers, employees and others (e.g. suppliers), with the risk of incurring fines determined on
the basis of global turnover, the prohibition of the use of certain processes and consequent financial
losses and reputational harm.
In order to manage and mitigate this risk, Enel has adopted a model for the global governance of perso-
nal data that provides for the establishment of positions responsible for privacy issues at all levels (inclu-
ding the appointment of Data Protection Officers at the global and country levels) and digital compliance
tools to map applications and processes and manage risks with an impact on protecting personal data,
in compliance with specific local regulations in this field.
104104
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105
4
PERFORMANCE
& METRICS
S
N
O
I
T
A
R
E
P
O
N
O
T
R
O
P
E
R
106106
Integrated disclosure
Financial and non-financial results are
reported in integrated form to give an
overall view of the Group’s performance.
Ordinary net profit in 2020 up 9%
on 2019
An improvement in ordinary operating
performance including a reduction in de-
preciation and amortization for the period
and efficient financial management.
Capital expenditure exceeds €10 billion
45.4% in Enel Green Power and 38.6% in
Infrastructure and Networks.
33% of debt consists of sustainable
financing
Consistent with its Sustainability-Linked
Financing Framework, the Group is in-
creasingly active in the development of
sustainable finance tools with KPIs linked
to the achievement of the Sustainable De-
velopment Goals (SDGs).
107
Integrated Annual Report 2020 DEFINITION OF
PERFORMANCE
INDICATORS
In order to present the results of the Group and the Parent
and analyze their financial structure, Enel has prepared se-
parate reclassified schedules that differ from the schedules
envisaged under the IFRS-EU adopted by the Group and
Enel SpA and presented in the consolidated and separate
financial statements, respectively. These reclassified sche-
dules contain different performance indicators from those
obtained directly from the consolidated and separate fi-
nancial statements, which management believes are useful
in monitoring the performance of the Group and the Parent
and representative of the financial performance of our bu-
siness.
With regard to those indicators, on December 3, 2015,
CONSOB issued Communication no. 92543/2015, which
gives force to the Guidelines issued on October 5, 2015,
by the European Securities and Markets Authority (ESMA)
concerning the presentation of alternative performance
measures in regulated information disclosed or prospectu-
ses published as from July 3, 2016. These Guidelines, which
update the previous CESR Recommendation (CESR/05-
178b), are intended to promote the usefulness and tran-
sparency of alternative performance indicators included
in regulated information or prospectuses within the scope
of application of Directive 2003/71/EC in order to improve
their comparability, reliability and comprehensibility.
Accordingly, in line with the regulations cited above, the cri-
teria used to construct these indicators are the following.
Gross operating profit: an operating performance indicator,
calculated as “Operating profit” plus “Depreciation, amorti-
zation and impairment losses”.
Ordinary gross operating profit: defined as “Gross opera-
ting profit” from core businesses connected with the new
Ownership and Stewardship business models. It does not
include costs connected with corporate restructurings and
costs directly attributable to the COVID-19 pandemic.
Ordinary operating profit: defined as “Operating profit”
108108
from core businesses connected with the new Ownership
and Stewardship business models.
It is calculated by adjusting “Operating profit” for the ef-
fects of transactions not connected with core operations
referred to with regard to the gross operating profit and
excluding significant impairment losses on assets and/or
groups of assets following impairment testing (including
reversals or impairment losses) or classification under “As-
sets held for sale”.
Group ordinary profit: it is defined as “Group profit” gene-
rated by Enel’s core business connected with the new Ow-
nership and Stewardship business models.
It is equal to “Group profit” adjusted primarily for the items
discussed under “Ordinary operating profit”, net of any tax
effects and non-controlling interests.
Low carbon ordinary EBITDA: it is the ordinary gross opera-
ting profit of the set of products, services and technologies
included in the following Business Lines: Enel Green Power,
Infrastructure and Networks, Enel X and End-user Markets
(excluding gas).
Gross global value added from continuing operations: this
is defined as value created for stakeholders and is equal
to “Revenue”, including “Net income/(expense) from com-
modity management” net of external costs defined as the
algebraic sum of “cost of fuels”, “cost of electricity pur-
chases”, “costs of materials”, “capitalized costs of internal
projects”, “other costs” and “costs for services, rentals and
leases”, with the latter net of “costs for fixed water diversion
fees” and “costs for public land usage fees”.
Net non-current assets: calculated as the difference
between “Non-current assets” and “Non-current liabilities”
with the exception of:
› “Deferred tax assets”;
› “Securities” and “Other financial assets” included in
“Other non-current financial assets”;
› “Long-term borrowings”;
› “Employee benefits”;
› “Provisions for risks and charges (non-current portion)”;
› “Deferred tax liabilities”.
Net working capital: calculated as the difference between
“Current assets” and “Current liabilities” with the exception
of:
› “Current portion of long-term loan assets”, “Factoring
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements receivables”, “Securities”, “Cash collateral” and “Other
› net of the “Current portion of long-term loan assets”,
financial assets” included in “Other current financial as-
“Factoring receivables”, “Cash collateral” and “Other fi-
sets”;
nancial assets” included in “Other current financial as-
› “Cash and cash equivalents”;
sets”;
› “Short-term borrowings” and the “Current portion of
› net of “Securities” and “Other financial assets” included
long-term borrowings”;
in “Other non-current financial assets”.
› “Provisions for risks and charges (current portion)”;
More generally, the net financial debt of the Enel Group is
› “Other borrowings” included in “Other current liabilities”.
calculated in accordance with paragraph 127 of Recom-
mendation CESR/05-054b implementing Regulation (EC)
Net assets held for sale: calculated as the algebraic sum of
no. 809/2004 and in line with the CONSOB instructions of
“Assets held for sale” and “Liabilities included in disposal
July 28, 2006, net of financial assets and long-term secu-
groups held for sale”.
rities.
Net capital employed: calculated as the sum of “Net
non-current assets” and “Net current assets”, “Provisions
for risks and charges”, “Deferred tax liabilities” and “Defer-
red tax assets”, as well as “Net assets held for sale”.
Net financial debt: a financial structure indicator, determi-
ned:
› by “Long-term borrowings” and “Short-term borrowings
and the current portion of long-term borrowings”, taking
account of “Short-term financial borrowings” included in
“Other current liabilities”;
› net of “Cash and cash equivalents”;
Main changes in the
consolidation scope
In the two periods under review, the consolidation scope
changed as a result of a number of transactions. For more
information, please see note 7 of the consolidated financial
statements.
109
Integrated Annual Report 2020 PERFORMANCE
OF THE GROUP
110110
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 207.1
TWh
53.6
%
2.2
million km
NET ELECTRICITY
GENERATION
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY
ELECTRICITY DISTRIBUTION
AND TRANSMISSION GRID
of which 105.4 TWh of renewables
for a total of 45.0 GW
44.2
million
69.5
million
105,237
no.
END USERS WITH ACTIVE
SMART METERS
RETAIL
CUSTOMERS
CHARGING
POINTS
60% of end users are digitalized
of which 23.1 million on free market
+32.3% on 2019
Operations
The following presents the operating, environmental and
financial performance of the Group.
SDG
7
7
7
7
9
9
9
11
11
11
Net electricity generation (TWh)
of which:
- renewable (TWh)
Total net efficient installed capacity (GW)
Net efficient installed renewables capacity (GW) (1)
Net efficient installed renewables capacity (%)
Additional efficient installed renewables capacity (GW) (2)
2020
207.1
105.4
84.0
45.0
53.6%
2.91
2019
229.1
99.4
84.3
42.1
50.0%
3.58
Electricity transported on Enel’s distribution grid (TWh) (3)
484.6
507.7
End users with active smart meters (no.) (4) (5)
Electricity distribution and transmission grid (km) (6)
End users (no.) (6)
Electricity sold by Enel (TWh) (7)
Gas sold to end users (billions of m3) (7)
Retail customers (no.) (8)
- of which free market (8)
Demand response capacity (MW)
Charging points (no.) (9)
Storage (MW)
44,292,794
43,821,596
2,231,961
2,219,008
74,303,931
73,811,964
298.2
9.7
69,517,932
23,164,875
6,038
105,237
123
322.0
10.8
70,471,612
23,013,224
6,297
79,565
110
Change
(22.0)
6.0
(0.3)
2.9
7.2%
(0.67)
(23.1)
471,198
12,953
491,967
(23.8)
(1.1)
(953,680)
151,651
(259)
25,672
13
(1) Net efficient installed renewables capacity, including managed capacity, amounted to 48.6 GW at December 31, 2020 and 45.8 GW at December 31, 2019.
(2) Additional efficient installed renewables capacity including managed capacity was equal to 3.1 GW at December 31, 2020 and 3 GW at December 31, 2019.
(3) The figures for 2019 reflect a more accurate measurement of amounts transported.
(4) To ensure a uniform comparison, the figure for 2019 has been adjusted on the basis of the new calculation method, which excludes digital meters with an active
contract that are not managed remotely.
(5) Of which 18.2 million second generation smart meters in 2020 and 13.1 million in 2019.
(6) The figures for 2019 reflect more accurate calculation of the numbers.
(7) Volumes include sales to large customers by the power generation companies in Latin America. The 2019 figure has been adjusted to ensure comparability;
(8) Also includes the large customers of generation companies in Latin America. The figure for 2019 has consequently been adjusted to ensure comparability.
(9) The number of charging points including interoperable points was equal to about 186 thousand at December 31, 2020 and about 82 thousand at December 31,
2019.
111
Integrated Annual Report 2020 Electricity generation
Net electricity generated by Enel in 2020 decreased by
22 TWh (-9.6%) from 2019. This reduction reflects, in parti-
cular, a decrease in thermal power generation (-27.5 TWh)
due mainly to a reduction in coal-fired generation (-24.4
NET ELECTRICITY GENERATION BY SOURCE (%)
ENERGIA ELETTRICA NETTA PRODOTTA PER FONTE (%)
TWh), which was partially offset by an increase in renewable
output (+6.0 TWh). The increase can be attributed to grea-
ter wind output (+4.3 TWh) and solar generation (1.8 TWh),
mainly in Spain and North America as a result of new plants
coming online.
Nuclear generation, totaling 25.8 TWh, decreased by 0.4
TWh compared with 2019.
2020
ENERGIA ELETTRICA NETTA PRODOTTA PER FONTE (%)
Geothermal and
other 3.0%
Geothermal and
other 3.0%
Wind
15.0%
Coal-fired
6.3%
Combined-cycle
20.9%
Coal-fired
6.3%
Combined-cycle
20.9%
Solar
2.8%
Fuel-oil and
turbo-gas 9.4%
Total 207.1 TWh
Total 207.1 TWh
Nuclear
12.5%
Total renewable sources 50.9%
Wind
15.0%
Solar
2.8%
Fuel-oil and
turbo-gas 9.4%
Total traditional sources 49.1%
Nuclear
12.5%
Total renewable sources 50.9%
Total traditional sources 49.1%
Geothermal and
other 2.7%
Coal-fired
16.4%
Combined-cycle
19.6%
Total 229.1 TWh
Geothermal and
other 2.7%
Wind
11.7%
Coal-fired
16.4%
Solar
1.7%
Combined-cycle
19.6%
Fuel-oil and
turbo-gas 9.1%
Nuclear
11.5%
Total 229.1 TWh
2020
Hydroelectric
30.1%
Hydroelectric
30.1%
2019
2019
Hydroelectric
27.3%
Hydroelectric
27.3%
Total renewable sources 43.4%
Wind
11.7%
Solar
1.7%
Fuel-oil and
Total traditional sources 56.6%
turbo-gas 9.1%
Nuclear
11.5%
At the end of December 2020, the Group’s total net effi-
Total renewable sources 43.4%
Total traditional sources 56.6%
new renewables capacity, mainly in the form of wind and
cient installed capacity totaled 84.0 GW, a decrease of 0.3
solar power in North America (1.4 GW), Brazil (0.9 GW), and
GW compared with 2019. The disposal of 3 GW of coal and
Spain (0.4 GW).
fuel-oil plants in Italy and Spain was only partially offset by
POTENZA EFFICIENTE INSTALLATA NETTA PER FONTE (%)
2020
NET EFFICIENT INSTALLED CAPACITY BY SOURCE (%)
POTENZA EFFICIENTE INSTALLATA NETTA PER FONTE (%)
2020
Hydroelectric
33.1%
Geothermal and
other 1.1%
Geothermal and
other 1.1%
Wind
14.8%
Hydroelectric
33.1%
Total renewable sources 53.6%
Wind
14.8%
Solar
4.6%
Solar
4.6%
Total 84.0 GW
Combined-cycle
17.9%
Total 84.0 GW
Coal-fired
10.6%
Coal-fired
10.6%
Combined-cycle
17.9%
Fuel-oil and
turbo-gas 13.9%
Fuel-oil and
Total traditional sources 46.4%
turbo-gas 13.9%
Nuclear
4.0%
Nuclear
4.0%
Total renewable sources 53.6%
Total traditional sources 46.4%
2019
2019
Hydroelectric
33.0%
Geothermal and
other 1.0%
Geothermal and
other 1.0%
Wind
12.3%
Hydroelectric
33.0%
Wind
Total renewable sources 50.0%
12.3%
Coal-fired
13.8%
Coal-fired
13.8%
Solar
3.7%
Solar
3.7%
Total 84.3 GW
Combined-cycle
17.8%
Total 84.3 GW
Fuel-oil and
turbo-gas 14.5%
Combined-cycle
17.8%
Total traditional sources 50.0%
Fuel-oil and
turbo-gas 14.5%
Nuclear
3.9%
Nuclear
3.9%
Total renewable sources 50.0%
Total traditional sources 50.0%
112112
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
Fighting climate change
and ensuring
environmental
sustainability
214
(gCO2eq/kWh)
SPECIFIC DIRECT GREENHOUSE
GAS EMISSIONS - SCOPE 1
-28.2% on 2019
20.4
millions of m3
63.4%
TOTAL WATER CONSUMPTION
ZERO-EMISSION GENERATION
-64.9% on 2019
(% of total)
€15,616
million
€9,575
million
ORDINARY EBITDA FOR
LOW-CARBON PRODUCTS,
SERVICES AND TECHNOLOGIES
CAPEX FOR LOW-CARBON
PRODUCTS, SERVICES AND
TECHNOLOGIES
Main climate change indicators
Direct greenhouse gas emissions - Scope 1 (1)
Indirect greenhouse gas emissions - Scope 2 - Purchase of
electricity from the grid (location based)
Indirect greenhouse gas emissions - Scope 2 - Purchase of
electricity from the grid (market based)
Indirect greenhouse gas emissions - Scope 2 - Distribution grid
losses (location based)
Indirect greenhouse gas emissions - Scope 2 - Distribution grid
losses (market based)
Indirect greenhouse gas emissions - Scope 3
- of which emissions connected with gas sales
Specific direct greenhouse gas emissions - Scope 1
Specific emissions of SO2
Specific emissions of NOx
Specific emissions of particulates
Zero-emission generation
Total direct fuel consumption
Average efficiency of thermal plants (2)
Water withdrawals in water-stressed areas (3)
Specific water withdrawals for total generation (4)
Reference price of CO2
Ordinary EBITDA for low-carbon products, services and technologies (5)
Capex for low-carbon products, services and technologies
Ratio of capex for low-carbon products, services and technologies
to total
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(gCO2eq/kWh)
(g/kWh)
(g/kWh)
(g/kWh)
(% of total)
(Mtoe)
(%)
(%)
(l/kWh)
(€)
(millions of €)
(millions of €)
2020
45.26
1.43
2.28
3.56
5.57
47.70
21.48
214
0.10
0.36
0.01
63.4
23.9
44.2
22.9
0.20
24.72
15,616
9,575
2019
69.98
1.55
2.30
3.82
6.00
56.92
23.92
298
0.59
0.60
0.12
54.9
30.1
42.0
25.4
0.33
24.8
2020-2019
(24.72)
-35.3%
(0.12)
-7.7%
(0.02)
-0.9%
(0.26)
-6.8%
(0.43)
(9.22)
(2.44)
(84)
(0.49)
(0.24)
(0.11)
8.5
(6.2)
2.2
(2.5)
(0.13)
(0.1)
-7.2%
-16.2%
-10.2%
-28.2%
-83.1%
-40.0%
-91.7%
15.5%
-20.6%
5.2%
-9.8%
-39.4%
-0.3%
-3.8%
4.9%
16,241
9,131
(625.0)
444.0
(%)
94.0
92.0
2.0
2.2%
(1) Specific emissions are calculated considering total emissions from thermal generation as a ratio of total renewable, nuclear and thermal generation (including
the contribution of heat).
(2) The calculation does not consider Italian O&G plants being decommissioned or of marginal impact. In addition, the figures do not take account of consumption and
generation for cogeneration relating to Russian thermal generation plants. Average efficiency is calculated on the basis of the plant fleet and is weighted by generation.
(3) The figure for 2019 has been recalculated on the basis of the change in scope of plants in water-stressed areas.
(4) Specific withdrawals consist of all water withdrawals from sources on the surface (including recovered rainwater), underground, third-party, the sea and wastewater
(supplies from third parties) used for generation processes and for closed-cycle cooling, excluding sea water returned to the sea after the desalination process (brine).
(5) The comparative figure for 2019 has been adjusted to take account of the fact that in South America and Mexico the values relating to large customers managed
by the generation companies have been reallocated to the End-user Markets Business Line.
113
Integrated Annual Report 2020 The Group’s ambition for leadership in the fight against cli-
the contribution of the Reftinskaya plant, which was sold in
mate change was further strengthened in 2020: the target
2019, and a concomitant decrease in Italy, Spain and Chile
for the reduction of direct emissions from generation by
2020, which was set in 2015 at 350 geq/kWh of CO2 with
a 25% reduction compared with 2007, had already been
owing to the acceleration of the energy transition. In addi-
tion, generation by other higher-emission plants also decli-
ned in favor of renewable generation.
achieved in 2018, two years early. The year 2020 closed
The electricity generated by Enel in 2020 from zero-emis-
with a reduction of 40% in specific emissions from thermal
sion sources amounted to 63.4% of total output, a signifi-
generation compared with the base year of 2007. In 2020,
direct emissions of CO2 equivalent (Scope 1) amounted to
45.26 million tons equivalent, a decrease of 35.3% on 2019.
As noted earlier, the reduction is attributable to a decline in
thermal generation attributable essentially to a sharp de-
cline in coal-fired generation as a result of the absence of
cant increase compared with 2019 (54.9%) due to the in-
crease in the contribution of solar and wind power.
Due to the contraction in coal generation, SO2 and particu-
late emissions fell sharply, with drops of about 83.1% and
91.7% respectively compared with 2019. NOx emissions also
decreased by 40% due to the decline in thermal generation.
Responsible water resource
management
Total withdrawals
Water withdrawals in water-stressed areas (1)
Specific water withdrawals for total generation (2)
Total water consumption
Water consumption in water-stressed areas
(millions
of m3)
(%)
(l/kWh)
(millions
of m3)
(%)
2020
2019
Change
51.5
22.9
0.20
20.4
31.6
77.3
25.4
0.33
58.1
23.7
(25.8)
(2.5)
(0.13)
(37.7)
7.9
-33.4%
-9.8%
-39.4%
-64.9%
33.3%
(1) The figure for 2019 has been recalculated on the basis of the change in scope of plants in water-stressed areas.
(2) Specific withdrawals consist of all water withdrawals from sources on the surface (including recovered rainwater), underground, third-party, the sea and
wastewater (supplies from third parties) used for generation processes and for closed-cycle cooling, excluding sea water returned to the sea after the desa-
lination process (brine).
Water is an essential part of electricity generation, and Enel
ted in these plants in order to minimize consumption and
therefore believes that the availability of this resource is a
maximize withdrawals from lower quality or more abun-
critical part of future energy scenarios.
dant sources (waste, industrial or sea water).
Enel constantly monitors all generation sites located in
About 11% of the Enel Group’s total electricity output uses
areas at risk of water scarcity (“water-stressed” areas) in
fresh water in water-stressed areas. In 2020 total water wi-
order to ensure the most efficient management of the re-
thdrawals were 51.5 million cubic meters, 33.4% less than
source.
in 2019, reflecting a decrease in thermal generation com-
Site monitoring is conducted through the following levels
pared with the previous year. The specific withdrawals for
of analysis:
2020 were about 0.20 l/kWh, 39.4% less than in 2019.
› mapping of generation sites in water-stressed are-
as identified on the basis of the (baseline) water stress
conditions indicated by the World Resources Institute
“Aqueduct Water Risk Atlas”;
Preserving biodiversity
› identification of “critical” generation sites, i.e. those lo-
Preserving biodiversity is one of the strategic objectives of
cated in water-stressed areas that draw fresh water for
Enel’s environmental policy. The Group promotes specific
operating needs;
projects in the various areas in which it operates in order to
› verification of the water management procedures adop-
help protect local species, their natural habitats, and the lo-
114114
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements cal ecosystems in general. These projects cover a vast ran-
gas bills, so as to give everyone equal access to electricity.
ge of areas, including: inventory and monitoring; programs
Enel has also established numerous processes to ensure
to protect specific species at risk of extinction; methodo-
customers receive a high level of service. In Italy, the com-
logical research and other studies; repopulation and refo-
mercial quality of all our contact channels (customer service
restation; the construction of infrastructure supports to
calls, Enel Points and stores, utility bills, app, e-mail, social
promote the presence and activities of various species (e.g.
media, account manager, fax) is ensured through systema-
artificial nests along power distribution lines for birds or fish
tic monitoring of the sales and management processes.
ladders at hydroelectric plants), and ecological restoration
The goal is to ensure compliance with applicable laws and
and reforestation programs.
regulations and respect for the privacy, freedom and digni-
In 2020, 187 projects were under way to safeguard species
ty of our customers.
and natural habitats, with a total of 4,479 hectares involved
Enel is also continuing its efforts to expand digitalization,
in habitat recovery efforts.
Electricity distribution
and access, ecosystems
and platforms
Electricity transported on Enel’s distribution grid totaled
484.6 TWh in 2020, down 23.1 TWh (-4.5%) from 2019, at-
tributable essentially to Italy (-14.5 TWh), Brazil (-3.4 TWh)
and Spain (-2.0 TWh).
The number of Enel end users with active smart meters in-
creased by 471,198 in 2020, mainly in Spain (+211,228) and
Romania (+288,859).
Electricity sold by Enel in 2020 came to 298.2 TWh, decre-
asing by 23.8 TWh (-7.4%) compared with the previous year.
Quantities decreased in the following regions in particular:
Italy (-7.3 TWh), Spain (-8.7 TWh), Latin America (-6.9 TWh)
– mainly in Brazil (-2.7 TWh) – and Romania (-0.9 TWh). In
addition, gas sold by Enel in 2020 totaled 9.7 billion cubic
meters, a decline of 1.1 billion cubic meters compared with
the previous year.
Enel’s leadership position has been gained thanks to the at-
tention we place on the customer in providing quality ser-
vices: aspects that concern more than just the provision of
electricity and/or natural gas, extending, above all, to intan-
gible aspects of our service that relate to the perception
and satisfaction of our customers.
Through our products for both the residential and business
markets, Enel provides dedicated offers with a lower en-
vironmental impact and a concentration on the most vul-
nerable segments of the population. In fact, all the coun-
tries in which the Group operates provide forms of support
(often linked to government initiatives) which assist these
segments of the population in paying their electricity and
electronic invoicing and new services. With Enel X, we of-
fer innovative solutions to residential customers (techno-
logical solutions for smart homes, home automation, solar
and photovoltaic systems, boilers, maintenance services,
lighting, etc.), government customers (public lighting, mo-
nitoring services for smart cities, security systems, etc.) and
large customers (demand response services, consulting
and energy efficiency solutions). We also promote electric
mobility through the development of public and private
charging infrastructures.
Enel charging points increased by 25,672 units in 2020
compared with 2019.
Private charging points increased by 21,033, mainly in North
America and Italy, while public charging points increased by
4,639, primarily in Italy and Spain.
115
Integrated Annual Report 2020 Group
performance
€16,816
million
€8,368
million
€2,610
million
GROSS OPERATING
PROFIT
€17,704 in 2019
OPERATING
PROFIT
+21.7% on 2019
GROUP
PROFIT
+20.1% on 2019
€17,940
million
€11,284
million
€5,197
million
ORDINARY GROSS OPERATING
PROFIT
ORDINARY OPERATING
PROFIT
of which 64% eligible under
European taxonomy
of which 30.7% from Enel Green
Power
GROUP ORDINARY
PROFIT
+9.0% on 2019
Millions of euro
Revenue
Costs
Net expense from commodity derivatives
Gross operating profit
Depreciation, amortization and impairment losses
Operating profit
Financial income
Financial expense
Net financial expense
Share of profit/(loss) from equity-accounted investments
Pre-tax profit
Income taxes
Profit from continuing operations
Profit/(Loss) from discontinued operations
Profit for the year (owners of the Parent and non-controlling
interests)
Profit attributable to owners of the Parent
Profit attributable to non-controlling interests
2020
64,985
47,957
(212)
16,816
8,448
8,368
4,607
7,213
2019
80,327
61,890
(733)
17,704
10,826
6,878
3,953
6,397
(2,606)
(2,444)
(299)
5,463
1,841
3,622
-
3,622
2,610
1,012
(122)
4,312
836
3,476
-
3,476
2,174
1,302
Change
(15,342)
(13,933)
521
(888)
(2,378)
1,490
654
816
(162)
(177)
1,151
1,005
146
-
146
436
(290)
-19.1%
-22.5%
71.1%
-5.0%
-22.0%
21.7%
16.5%
12.8%
-6.6%
-
26.7%
-
4.2%
-
4.2%
20.1%
-22.3%
116116
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
Financial impact of COVID-19
In compliance with recent recommendations of ESMA and
CONSOB, the Group has initiated internal analyses to as-
sess the real and potential impacts of COVID-19 on busi-
ness activities, on the financial position and on performan-
ce.
In light of the macroeconomic scenario discussed earlier,
the impact of COVID-19 is most significant for the business
segments most closely involved with the market such as
End-user Markets and Enel X, taking account of the fact
that they have been affected by a significant reduction in
demand and a general slowdown in the acquisition of new
customers. More specifically, End-user Markets are af-
fected by the overcontracting of electricity as demand and
the related volumes decline, as well as the slowdown in col-
Millions of euro
Gross operating profit
Operating profit
Group profit
Ordinary gross operating profit
Ordinary operating profit
Group ordinary profit
lections on accounts receivable, due both to the effects of
the crisis and the lockdowns that affected the timeliness of
payments and the practices adopted in certain countries
that suspended the possibility of cutting off electricity sup-
ply to defaulting customers. Enel X, on the other hand, has
experienced a general slowdown in the development of its
portfolio of new businesses in the first nine months of 2020,
much of which it recouped in the 4th Quarter, especially in
Italy, in light of the measures adopted by the government to
encourage the revival of economic activity.
Bearing in mind the current climate of uncertainty and ba-
sed on the best information available to date, the estima-
ted financial impact of COVID-19 on the gross operating
profit, the ordinary gross operating profit, operating profit,
ordinary operating profit, Group profit and Group ordinary
profit are reported below.
Demand
COVID-19 costs
Impairment of
receivables
(727)
(727)
(298)
(727)
(727)
(298)
(133)
(133)
(86)
-
-
-
-
(290)
(154)
-
(290)
(154)
Total
(860)
(1,150)
(538)
(727)
(1,017)
(452)
The gross operating profit was affected by the COVID-19
pment and donations. These costs do not impact the de-
emergency mainly in terms of a decrease of €727 million
termination of the ordinary gross operating profit.
in demand for electricity, with a decrease in sales volumes
At the same time, taking into account the most recent col-
and the related margins, mainly in End-user Markets of Italy
lection status and the results of the valuation model used
and Spain and in Distribution in Latin America. This figure
to measure the recoverability of receivables, the Group re-
was determined by using benchmark prices to measure the
cognized an increase in impairment losses on receivables
reduction in quantities distributed and sold, as observed
of about €290 million at the marketing companies, in parti-
during the peak of the COVID-19 pandemic in the various
cular in Italy, Spain and Brazil.
countries in which the Group operates.
Taking account of tax effects and minority interests, the
Another factor impacting the gross operating profit was
overall impact of COVID-19 on the Group’s profit at Decem-
the direct cost of the health emergency (€133 million) for
ber 31, 2020 was a negative €538 million (€452 million on
workplace sanitization activities, personal protective equi-
Group ordinary profit).
117
Integrated Annual Report 2020 Revenue
Millions of euro
Sale of electricity (1)
Transport of electricity (1)
Fees from network operators
Transfers from institutional market operators
Sale of gas
Transport of gas
Sale of fuels
Fees for connection to electricity and gas networks
Revenue from construction contracts
Sale of commodities under contracts with physical settlement
(IFRS 9) (1)
Other revenue
Total
2020
34,745
10,710
932
1,395
2,718
611
602
759
732
7,737
4,044
64,985
2019
39,584
10,931
866
1,625
3,294
617
914
785
749
16,294
4,668
80,327
Change
(4,839)
(221)
66
(230)
(576)
(6)
(312)
(26)
(17)
(8,557)
(624)
(15,342)
-12.2%
-2.0%
7.6%
-14.2%
-17.5%
-1.0%
-34.1%
-3.3%
-2.3%
-52.5%
-13.4%
-19.1%
(1)
In the Distribution segment in Colombia, a number of items previously classified under “Sale of electricity” were reclassified to “Transport of electricity” to impro-
ve the presentation of the data. In order to ensure the uniformity and comparability of the figures, the amounts for 2019 have also been reclassified in the amount
of €461 million.
As noted earlier, the reduction in revenue mainly reflects the
in Spain and the United States due to new plants coming
effects of the COVID-19 pandemic.
on line.
More specifically, revenue in 2020 decreased significantly due
to the following:
These factors were partly offset by:
› lower electricity sales in Spain (€1,390 million) and Italy
› an increase registered by Enel North America in income
(€808 million), on both the regulated and the free mar-
from tax partnerships (€139 million), other revenue from
kets, due mainly to the effects of the COVID-19 pande-
indemnities and litigation (€31 million) and the sale of the
mic, which led to a decrease in business-to-business vo-
Haystack wind project (€45 million);
lumes on the free market;
› an increase in income recognized by e-distribuzione for
› a decrease in the trading of commodities from contracts
the reimbursement of system charges and grid fees on
with physical settlement due to a reduction in volumes
the basis of Resolutions no. 50/2018 and 461/2020 of
traded and in prices applied (€8,557 million);
the Regulatory Authority for Energy, Networks and the
› a reduction in electricity sales in Latin America (€2,248
Environment (ARERA) (€158 million);
million) due mainly to the impact of the depreciation of
› the negative goodwill recognized on the acquisition of
local currencies against the euro and the contraction in
Paytipper following the completion of the purchase price
volumes and average sales prices;
allocation process (€20 million).
› a reduction in volumes of gas sales to end users (€510
million) in Spain and Italy, due in part to the negative im-
In 2019 revenue included the following other income:
pact of COVID-19 on demand;
› an increase in revenue in Argentina following the Edesur
› a decrease in wheeling volumes in 2020, mainly in
agreement with the local authorities resolving reciprocal
reflection of the impact of the COVID-19 pandemic, whi-
pending disputes arising during the period 2006-2016
ch caused a decline of €221 million in revenue from the
(€233 million);
transport of electricity;
› a gain on the sale of Mercure Srl (€108 million);
› a reduction in revenue from renewable power genera-
› negative goodwill (€181 million) resulting from the de-
tion in Latin America, particularly in Chile and Brazil, due
finitive allocation of the purchase price of (i) a number
mainly to adverse exchange rate developments, which
of companies sold by Enel Green Power North America
were only partially offset by increased revenue in Italy due
Renewable Energy Partners LLC (€106 million) and (ii) Tra-
to the improved performance of hydroelectric plants, and
dewind, which transitioned from being an associate to a
118118
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements |
|
|
37.9%
60.9%
1.2%
|
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| ||
|
|
|
|
|
|
|
|
|
||||||||||||||| | | |
2 3 . 3 %
||||||||||| | |
||||||| | |
|
|
1
|
|
2
|
|
|
lion);
|
|
|
|
|
.
|
|
|
|
|
|
%
|
|
|
|
|
|
wholly-owned subsidiary (negative goodwill of €75 mil-
|
|
|
|
|
|
|
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
billions
of euro
|
› the gains of €42 million on the disposals of Gratiot and
8
|
|
|
|
|
Outlaw, two renewable energy projects developed by Tra-
|
|
|
|
dewind;
|
|
|
|
|
|
|
|
|
|||||||||||
|||||||||||||||
|||||||||||||||||||||
|
› the contractual indemnity received following the exercise
|
of the option to withdraw from an electricity supply con-
tract by a major industrial customer of Enel Generación
|
|
Chile (€160 million), of which €80 million pertaining to
Eligible
|
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
63.9
||||||||||||||
|||||||||||||||||
|
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
torWerks in 2017 following application of a number of
› the €50 million payment under the agreement reached
contractual clauses (€98 million);
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
by e-distribuzione with F2i and 2i Rete Gas for the ear-
16.7%
83.3%
ly all-inclusive settlement of the second indemnity con-
nected with the sale in 2009 of the interest held in Enel
13.8
billions of euro
Rete Gas.
Not eligible
With regard to revenue, the results of the alignment of this
Not covered
thermal generation and €80 million to renewable energy;
metric with the European taxonomy are reported as previously
› the adjustment of the price for the acquisition of eMo-
specified in the section “European Union taxonomy”.
REVENUE UNDER THE EUROPEAN TAXONOMY
|
|
|
||||||||||||||| | | |
||||||||||| | |
||||||| | |
|
|
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| ||
|
|
|
|
|
|
|
3
|
4
|
.
|
|
|
|
|
|
|
|
|
65.0
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 3 . 5
|||||||||||
|||||||||||||||
|||||||||||||||||||||
|||||||||
||||||||||||||
%
|||||||||||||||||
|
|
|
|
|
Eligible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
7
|
|
.
|
1
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
30.5%
66.6%
2.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
72.1%
27.9%
31.4
billions of euro
Not eligible
Not covered
In 2020, 34.8% of revenue was generated by business acti-
rently not covered by the European taxonomy regulation,
vities that meet climate change mitigation criteria, compa-
72.1% of revenue was eligible.
red with 30.2% in 2019. Excluding activities that are cur-
|
| | | | ||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|||||||||||||| | |
9 . 5 %
||||||||||| | |
|||||||| |
10.2 %
|
|
|
Millions of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity purchases (1)
|
|
|
|
|
|
|
|
|
10.2
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumption of fuel for electricity generation
|
|
|
|
Fuel for trading and gas for sale to end users (1)
|
|
|
|
|
|
|
|
|
|
Materials (1)
|
|
|
|
Personnel expenses
|
|
|
|
|
|||||||||||
|||||||||||||||
|||||||||||||||||||
|
Services, leases and rentals
Other operating costs (1)
Capitalized costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|||||||||
0.3
||||||||||||||
||||||||||||||||
8
|
|
|
|
Eligible
Total
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
56.1%
42.0%
1.9%
2020
2019
Change
16,003
20,682
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
8,322
(5,688)
(4,679)
2,634
6,637
88.8%
2,397
4,793
15,676
2,202
9,284
2,366
4,634
16,264
2,693
(2,647)
31
159
(588)
(491)
9,2
billions of euro
Not eligible
(2,385)
Not covered
(2,355)
(30)
47,957
61,890
(13,933)
-22.6%
-68.3%
-28.5%
11.2%
1.3%
3.4%
-3.6%
-18.2%
1.3%
-22.5%
(1) The figures for 2019 have been adjusted to take account of the reclassification of contracts to purchase commodities for physical settlement (IFRS 9) under the
aggregates: “Electricity, gas and fuel”; “Services and other materials”.
|
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
16 . 9 %
|||||||| |
|
|
|
|
|
|
|
|
|
|
|
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
.
|
|
9
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.3%
56.2%
6.5%
119
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.5
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|||||||||||
|
|
|
|
3
.
2
|||||||||||||||
|||||||||||||||||||||
%
|
|||||||||
||||||||||||||
|||||||||||||||||
|
|
|
|
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
70.2%
29.8%
4.2
billions of euro
Eligible
Not eligible
Not covered
Integrated Annual Report 2020
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
2 3 . 3 %
||||||| | |
|
|
|
|
|
|
|
| | | | |||||||||||||||||
| |||||||||||||
|
|
|
| ||
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.9
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
2
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
%
|||||||||||
|
|
|
|
|||||||||||||||
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|||||||||
|
|
|
|
||||||||||||||
63.9
|||||||||||||||||
|
|
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
||||||| | |
|
|
| | | | |||||||||||||||||
| |||||||||||||
|
|
|
| ||
|||||||
|
|
|
|
|
|
3
|
|
|
4
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
7
|
.
|
|
1
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65.0
billions
of euro
|
1 3 . 5
|||||||||||
|
|
|
|
|||||||||||||||
|||||||||||||||||||||
|
|
8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
%
||||||||||||||
|||||||||||||||||
|
|
|
|
37.9%
60.9%
1.2%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
83.3%
16.7%
13.8
billions of euro
Eligible
Not eligible
Not covered
30.5%
66.6%
2.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
72.1%
27.9%
31.4
billions of euro
Eligible
Not eligible
Not covered
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
S
E
I
T
I
V
I
T
C
A
E
I
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
56.1%
42.0%
1.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
With regard to ordinary operating expenditure, the results
11.2%
of the alignment of this metric with the European taxonomy
are reported as previously specified in the section “Europe-
88.8%
an Union taxonomy”.
Not eligible
Not covered
9,2
billions of euro
|
|
|
|
|
|
|||||||||||||| | |
9 . 5 %
||||||||||| | |
|||||||| |
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | ||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
|
10.2
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in costs is mainly attributable to a reduction
|
in the provisioning of commodities in relation to reduced
|
demand as a result of COVID-19.
|
|
For further details on operating costs, see the notes to the
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|||||||||||||||
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|||||||||
0.3
||||||||||||||
||||||||||||||||
8
|
|
|
Eligible
consolidated financial statements.
ORDINARY OPERATING EXPENDITURE UNDER THE EUROPEAN TAXONOMY (ORDINARY OPEX)
|
|
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
16 . 9 %
|||||||| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.5
billions
of euro
|
|
|
|
|
|
|
|
|
4
|
|
.
2
|
|
|
3
|||||||||||
|||||||||||||||
|||||||||||||||||||||
%
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
||||||||||||||
|||||||||||||||||
|
|
|
|
|
|
|
|
%
|
|
|
9
|
|
9
3
|
|
|
|
|
|
|
|
|
|
Eligible
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
37.3%
56.2%
6.5%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
70.2%
29.8%
4.2
billions of euro
Not eligible
Not covered
In 2020, 39.9% of ordinary operating expenditure was ge-
nerated by business activities that meet climate change
mitigation criteria, compared with 39.6% in 2019. Excluding
Net expense from commodity
derivatives
activities that are currently not covered by the European
Net expense from commodity derivatives in 2020 connected
taxonomy regulation, 70.2% of ordinary operating expen-
with trading activities that do not involve physical delivery of
diture was eligible.
the underlying products decreased by €521 million compa-
red with the previous year, due mainly to fluctuations in mar-
ket prices.
120120
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
Gross operating profit
The table below presents gross operating profit by Busi-
ness Line:
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2019 (1)
Change
2020
1,700
4,647
7,433
3,121
152
(47)
(190)
1,364
4,588
8,278
3,334
158
126
(144)
16,816
17,704
336
59
(845)
(213)
(6)
(173)
(46)
(888)
24.6%
1.3%
-10.2%
-6.4%
-3.8%
-
-31.9%
-5.0%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
Generally speaking, the reduction in the gross operating
city demand, particularly on the free markets in Italy and
profit reflects the effects of COVID-19 and unfavorable
Spain, above all in the business-to-business segments.
exchange rate developments, especially in Latin America,
These negative effects were partially offset by lower costs
and is mainly attributable to:
for commodity provisioning and the effect of the indem-
› Infrastructure and Networks in the amount of €845 mil-
nity received by Edesur in 2019 (€24 million);
lion, reflecting:
› Enel X (-€6 million), where improvements in operations
– the lower volumes distributed particularly in Latin Ame-
were, despite the effects of the pandemic, more than
rica, essentially in Brazil, Chile and Peru, because of the
offset by the effect of the recognition in 2019 of an in-
impact the COVID-19 health emergency has had on
demnity in the amount of €98 million in application of
demand. This decline was compounded by adverse
contractual clauses related to the sale of eMotorWerks;
exchange rate developments in 2020 (€402 million),
› Services (-€173 million) due, above all, to non-recurring
particularly in Brazil;
costs associated with the COVID-19 health emergency
– the recognition of provisions for early-retirement in-
(€46 million) and costs related to early-retirement incen-
centives in Spain following the changes introduced in
tives and restructuring plans for the energy transition.
the agreement on the voluntary suspension or resolu-
tion of employment contracts (€315 million);
These decreases were partially offset by increases achie-
– the lower quantities transported, together with appli-
ved by the generation Business Lines.
cation of the new rates in Spain, which went into effect
More specifically:
for 2020-2025;
› in Thermal Generation and Trading, the positive effects
– the positive effects recognized in 2019 as a result of
came from:
the Edesur settlement agreement (€209 million) and
– the change in the benefit for the electricity discount
the indemnity for the sale of Enel Rete Gas (€50 mil-
net of the provision for early-retirement incentives in
lion), as described above.
Spain (€165 million);
These factors were only partially offset by:
– the reduction in provisioning costs and the improve-
– the modification of the electricity discount benefit in
ments in operating efficiency in Italy and Spain.
Spain (€269 million) following the signing of the 5th
These positive effects were partially offset by:
Endesa Collective Bargaining Agreement, which led to
– increased charges (€204 million) related to the Group’s
the partial reversal of the provision;
restructuring plans as part of the energy transition,
– an increase of €158 million in income in Italy resulting
particularly related to coal-fired plants in Spain;
from application of ARERA Resolutions nos. 50/2018
– the reduction in the gross operating profit in Russia due
and 461/2020 for the reimbursement of system char-
to the sale of the Reftinskaya plant in October 2019;
ges and network fees;
– the €79 million increase in tax expense in Spain due
› End-user Markets (-€213 million) as a result of the negati-
to the temporary suspension, solely for 2019, of the
ve impact of the COVID-19 health emergency on electri-
electricity generation tax and the tax on fuels for nu-
121
Integrated Annual Report 2020 clear and conventional thermal generation (Royal De-
new wind farms, which generated an increase in inco-
cree Law 15/2018), as well as to the introduction of a
me from tax partnerships (€137 million), in addition to
new “eco-tax” in Catalonia in July 2020;
increased income from indemnities and disputes (€31
– the recognition, in the 1st Quarter of 2019, of the inco-
million) and the gain on the disposal of the Haystack
me related to the indemnity of €80 million in Chile and
wind farm (€45 million);
the sale of Mercure Srl in Italy (€94 million, equal to the
– the improved profit in Europe due, above all, to new
capital gain noted above net of the related charges to
wind farms in Greece entering service.
reclaim the industrial site);
– the unfavorable exchange rate developments in Latin
These positive effects were partially offset by the effect
America in the amount of €82 million;
of the recognition in 2019 of income from the indemnity
› in Enel Green Power due to:
for early withdrawal from an electricity supply contract in
– the improvement in the gross operating profit in Italy
Chile (€80 million), lower profits in Brazil due to the sale
(€71 million), mainly attributable to the improved per-
of a number of wind farms in 2019, as well as unfavo-
formance of hydroelectric plants;
rable exchange rate developments, and the recognition,
– the increase in the profit in Iberia (€76 million) due to
in 2019, of negative goodwill (€181 million) following the
the increased quantities produced and sold following,
purchase by Enel North America (formerly Enel Green
in part, an expansion of wind capacity;
Power North America - EGPNA) of a number of compa-
– the increased profit in the United States and Canada
nies sold by Enel Green Power North America Renewable
(€35 million) resulting from the entry into service of
Energy Partners LLC (EGPNA REP) and Tradewind Energy.
Ordinary gross operating profit
Millions of euro
2020
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Gross operating profit/(loss)
1,700
4,647
7,433
3,121
152
(47)
(190)
16,816
Write-downs of inventories and
other charges in respect of coal-
fired plants
Restructuring plans for the
decarbonization and digitalization
process
218
-
-
-
299
50
231
65
Other impairment losses
COVID-19 costs
-
13
14
10
-
50
-
11
-
7
-
2
Ordinary gross operating profit
2,230
4,721
7,714
3,197
161
-
95
-
46
94
-
218
12
759
-
1
14
133
(177)
17,940
122122
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
2019
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Gross operating profit (1)
1,364
4,588
8,278
3,334
158
126
(144)
17,704
Indemnity resulting from the sale of
the equity interest in Enel Rete Gas
Adjustment to the price to purchase
a number of Greek companies
Write-down of fuel and replacement-
parts inventories at a number of coal
plants in Italy and Spain
Impairment loss on the Reftinskaya
coal plant
Sale of the equity interest in Mercure
Srl
-
-
308
7
(94)
-
30
-
-
-
(50)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(50)
30
308
7
(94)
Ordinary gross operating profit (1)
1,585
4,618
8,228
3,334
158
126
(144)
17,905
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
With regard to the ordinary gross operating profit (EBITDA),
pean taxonomy are reported as previously specified in the
the results of the alignment of this metric with the Euro-
section “European Union taxonomy”.
ORDINARY GROSS OPERATING PROFIT (ORDINARY EBITDA)
UNDER THE EUROPEAN TAXONOMY
|
|
|
|
||||||||||||||| | | |
2 3 . 3 %
||||||||||| | |
||||||| | |
|
|
|
|
|
|
|
|
|
1
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
8
|
|
|
%
17.9
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|||||||||||||||
|||||||||||||||||||||
|
|
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
63.9
||||||||||||||
|||||||||||||||||
|
|
|
|
Eligible
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
37.9%
60.9%
1.2%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
83.3%
16.7%
13.8
billions of euro
Not eligible
Not covered
In 2020, 63.9% of the ordinary gross operating profit was
activities that are currently not covered by the European
generated by business activities that meet climate change
taxonomy regulation, 83.3% of the ordinary gross operating
mitigation criteria, compared with 64.4% in 2019. Excluding
profit was eligible.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
8
|
|
|
|
|
|
|
| ||
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
7
|
|
.
|
1
5
65.0
1 3 . 5
|||||||||||
|||||||||||||||
|||||||||
||||||||||||||
%
|||||||||||||||||
||||||||||||||| | | |
||||||||||| | |
||||||| | |
| | | | |||||||||||||||||
| |||||||||||||
|||||||
30.5%
66.6%
2.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
123
27.9%
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
72.1%
Eligible
Not eligible
Not covered
31.4
billions of euro
56.1%
42.0%
1.9%
|
|
|
|
|
|
|||||||||||||| | |
||||||||||| | |
9 . 5 %
|||||||| |
10.2 %
|
|
|
|
|
|
|
|
|
| | | | ||||||||||||||||
| |||||||||||||
|
|
|
|
| | |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
|
0.3
|
|||||||||
||||||||||||||
||||||||||||||||
8
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|||||||||||||||
|||||||||||||||||||
|
|
|
||||||||||||||| | | |
||||||||||| | |
|
|
| | | | |||||||||||||||||
| |||||||||||||
|
|
| | |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||| |
16 . 9 %
|
|
|
|
|
|
|
|
|
|
7.5
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|||||||||||
|
|
|
|
3
.
2
|||||||||||||||
|||||||||||||||||||||
%
|
|||||||||
||||||||||||||
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
9
|
.
|
|
9
|
|
3
|
|
|
|
|
|
|
|
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
88.8%
11.2%
9,2
billions of euro
Eligible
Not eligible
Not covered
37.3%
56.2%
6.5%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
70.2%
29.8%
4.2
billions of euro
Eligible
Not eligible
Not covered
Integrated Annual Report 2020
Operating profit
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2020
15
2,734
4,262
1,817
(16)
(226)
(218)
8,368
2019 (1)
(3,525)
3,260
5,277
2,210
(98)
(75)
(171)
6,878
Change
3,540
(526)
(1,015)
(393)
82
(151)
(47)
1,490
-
-16.1%
-19.2%
-17.8%
-83.7%
-
-27.5%
21.7%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
Operating profit for 2020 increased by €1,490 million ta-
nization of generation processes (€737 million);
king account of a decrease of €2,378 million in deprecia-
› the impairment losses on coal-fired plants in Italy in the
tion, amortization and impairment losses. In addition to the
amount of €135 million, including Unit 2 of the Brindisi
factors discussed with regard to the gross operating profit,
power plant;
this increase was due mainly to the decrease of €407 mil-
› the impairment losses on the Mexico, Argentina and Au-
lion in depreciation and amortization and the impairment
stralia CGUs in the total amount of €750 million;
losses recognized in 2019 for a number of coal plants in
› other impairment losses of €159 million, the most signi-
Italy, Spain, Chile and Russia for a total of €4,010 million.
ficant of which regarded the solar panel manufacturing
More specifically:
plants of Enel Green Power Italia (€65 million) and the
› in Chile, an impairment loss of €356 million was recogni-
Snyder plant in the United States (€47 million);
zed for two plants following an agreement with the Chile-
› an increase of €141 million in impairment losses on recei-
an government on their early decommissioning;
vables, mainly due to the deterioration in the collection
› in Russia, as a result of an agreement for the sale of the
status of receivables in the wake of the COVID-10 emer-
Reftinskaya coal plant, its carrying amount was adjusted
gency.
to take account of the sale price (€127 million);
› in Spain, the worsening of the marketplace in relation to
the trend in commodities prices and to the functioning
of the CO2 emissions market in the 3rd Quarter of 2019
compromised the competitiveness of the coal plants in
the country. In Italy, in addition to a deterioration in mar-
ket conditions, the implementation of the new system for
remunerating generation capacity availability (the capa-
city market) narrowed the future scope for using plan-
ts with higher levels of CO2 emissions, providing for the
exclusion of coal-fired plants from the electricity market.
For these reasons, the carrying amount of a number of
coal-fired plants in Italy and Spain, including dismantling
charges, was impaired by a total of €3,527 million.
These effects were partially offset by:
› the impairment loss recognized in 2020 on the Bocamina
II coal plant in Chile, given the decision by the Enel Group
to close the plant early in order to accelerate achieve-
ment of the Group’s strategic objective for the decarbo-
124124
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Ordinary operating profit
Millions of euro
2020
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Operating profit/(loss)
15
2,734
4,262
1,817
(16)
(226)
(218)
8,368
Write-down of inventories and
other charges in respect of coal-
fired plants
Restructuring plans for the
decarbonization and digitalization
process
Impairment losses on the Mexico,
Australia and Argentina CGUs
Other impairment losses
COVID-19 costs
1,123
-
299
50
-
6
13
534
132
10
-
231
216
-
50
-
65
-
13
11
-
7
-
-
2
Ordinary operating profit/(loss)
1,456
3,460
4,759
1,906
(7)
-
95
-
-
46
(85)
-
1,123
12
759
-
-
1
750
151
133
(205)
11,284
Millions of euro
2019
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Operating profit/(loss) (1)
(3,525)
3,260
5,277
2,210
(98)
(75)
(171)
Indemnity resulting from the sale of
the equity interest in Enel Rete Gas
Sale of the equity interest in Mercure
Srl
Write-downs of fuel and spare-parts
inventories at a number of coal
plants in Italy and Spain
Impairment losses on a number of
coal-fired plants in Italy
Impairment losses on a number of
coal-fired plants in Spain
Impairment losses on a number of
gas-fired plants in Italy
Impairment losses on a number of
coal-fired plants in Chile
Value adjustment of the Reftinskaya
coal-fired plant
Impairment losses on a number of
renewable energy projects in Italy
and North America
Value adjustment of the Funac
receivable for Enel Distribuição Goiás
Impairment losses on a number of
intangible assets of Enel X North
America
Impairment losses on a number of
Enel Italia assets
Price adjustment for purchase of a
number of Greek companies
-
(94)
308
1,936
1,591
(265)
356
134
-
-
-
-
-
-
-
-
-
-
-
-
-
70
-
-
-
30
(50)
-
-
-
-
-
-
-
-
96
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
77
-
-
Ordinary operating profit/(loss) (1)
441
3,360
5,323
2,210
(21)
-
-
-
-
-
-
-
-
-
-
-
29
-
(46)
Total
6,878
(50)
(94)
308
1,936
1,591
(265)
356
134
70
96
77
29
30
-
-
-
-
-
-
-
-
-
-
-
-
-
(171)
11,096
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
125
Integrated Annual Report 2020 Group profit
› the reversal of deferred tax liabilities by EGPNA as an an-
cillary effect of the acquisition of a number of companies
Group profit in 2020 came to €2,610 million, compared
from EGPNA REP.
with €2,174 million the previous year.
The increase was attributable to the increase in operating
These effects were partially offset by:
profit commented earlier, partially offset by impairment los-
› a reduction in net financial expense connected with inte-
ses of the equity interest in Slovenské elektrárne and the
rest rates primarily on bonds, mainly due to renegotiation
associated receivable due from EP Slovakia BV for the sale
at more advantageous interest rates;
of the investment, as well as an increase in the tax liability.
› a decrease in the impact of non-controlling interests
The tax liability increased in 2020 as a result both of the
compared with 2019.
tax treatment of the above impairment losses and the fol-
lowing tax transactions recognized in 2019:
Group ordinary profit in 2020 came to €5,197 million
› the reversal of deferred taxes by Enel Distribuição São
(€4,767 million in 2019), increasing by €430 million compa-
Paulo following the merger with Enel Brasil Investimentos
red with 2019. The following table provides a reconciliation
Sudeste SA (Enel Sudeste) in the amount of €494 million;
of Group profit with Group ordinary profit, indicating the
› the “revalúo” of a number of generation companies in
non-recurring items and their respective impact on perfor-
Argentina;
mance, net of the associated tax effects and non-control-
› the application of the participation exemption mechani-
ling interests.
sm to the gain on the sale of Mercure Srl;
Millions of euro
Group profit
Impairment losses on certain assets connected with the disposal of Slovenské elektrárne
Impairment losses on/write-downs of a number of plants, inventories and other charges
in respect of coal-fired plants
Impairment losses on the Mexico, Australia and Argentina CGUs
Restructuring plans for the decarbonization and digitalization process
COVID-19 costs
Impairment losses on a number of assets of Enel Italia and Enel Green Power
Impairment losses on assets related to a number of wind and hydroelectric projects in
North America
Other minor impairment losses
Impairment losses on the Reftinskaya coal-fired plant
Impairment losses on a number of intangible assets of Enel X North America
Price adjustment for purchase of a number of Greek companies
Indemnity from the sale of e-distribuzione’s equity interest in Enel Rete Gas
Sale of the equity interest in Mercure Srl
Group ordinary profit (1)
(1) Taking account of taxes and non-controlling interests.
2020
2,610
833
598
537
422
86
65
35
11
-
-
-
-
-
5,197
2019
2,174
38
2,415
-
-
-
50
31
38
60
77
30
(49)
(97)
4,767
126126
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Integrated Annual Report 2020
127
VALUE CREATED
AND DISTRIBUTED
TO STAKEHOLDERS
Millions of euro
Economic value generated directly
Economic value distributed directly
Operating expenses
Personnel expenses and benefits
Payments to providers of capital
Payments to government (2)
2020
65,081
41,702
3,956
7,082
4,245
56,985
8,096
2019 (1)
80,437
56,284
3,748
6,566
4,762
71,360
9,077
Economic value retained
(1) The figures for 2019 have been reclassified to improve presentation.
(2) The amount represents “total taxes borne”, which is costs for taxes borne by the Group. For more information, see the 2020 Sustainability Report and the Con-
solidated Non-Financial Statement.
The economic value generated and distributed directly by
electricity, which led to a decline in sales volumes and costs
Enel provides a helpful indication of how the Group has
for materials and services.
created wealth for the stakeholders.
The retained economic value declined primarily as a result
The reduction in the economic value generated directly and
of the increase in personnel expenses connected with the
in operating expenses reflects the impact of the COVID-19
energy transition and the effects of COVID-19.
emergency, mainly in terms of a reduction in demand for
128128
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
ANALYSIS OF THE
GROUP’S FINANCIAL
POSITION AND
FINANCIAL
STRUCTURE
€87,772
million
€45,415
million
NET CAPITAL
EMPLOYED
NET FINANCIAL
DEBT
€92,113 million at December 31, 2019
+0.5% on December 31, 2019
33%
SUSTAINABLE
FINANCING
as proportion of gross debt
of €59,037 million
€10,197
million
TOTAL CAPITAL
EXPENDITURE
of which 80% eligible under
European taxonomy
Analysis of the Group’s
financial position
Millions of euro
Net non-current assets:
- property, plant and equipment and intangible assets
- goodwill
- equity-accounted investments
- other net non-current assets/(liabilities)
Total net non-current assets
Net working capital:
- trade receivables
- inventories
- net receivables due from institutional market operators
- other net current assets/(liabilities)
- trade payables
Total net working capital
Gross capital employed
Provisions:
- employee benefits
- provisions for risks and charges and net deferred taxes
Total provisions
Net assets held for sale
Net capital employed
Total equity
Net financial debt
at Dec. 31, 2020
at Dec. 31, 2019
Change
96,489
13,779
861
(6,807)
99,010
14,241
1,682
(5,022)
104,322
109,911
12,046
2,401
(2,755)
(6,977)
(12,859)
(8,144)
96,178
(2,964)
(6,050)
(9,014)
608
87,772
42,357
45,415
13,083
2,531
(3,775)
(7,282)
(12,960)
(8,403)
101,508
(3,771)
(5,722)
(9,493)
98
92,113
46,938
45,175
(2,521)
(462)
(821)
(1,785)
(5,589)
(1,037)
(130)
1,020
305
101
259
(5,330)
807
(328)
479
510
(4,341)
(4,581)
240
-2.5%
-3.2%
-48.8%
-35.5%
-5.1%
-7.9%
-5.1%
27.0%
4.2%
0.8%
3.1%
-5.3%
21.4%
-5.7%
5.0%
-
-4.7%
-9.8%
0.5%
129
Integrated Annual Report 2020 Property, plant, equipment, and intangible assets decre-
of the impairment loss on the equity investment held in Slo-
ased as a result of adverse exchange rate developments
vak Power Holding (-€385 million) in relation to the change
(€5,873 million), mainly in Latin America, and depreciation,
in the formula to calculate the sale price called for by con-
amortization and impairment losses for the year (€6,906
tract under certain conditions, net of results for the year.
million), These factors were partially offset by capital expen-
diture during the period (€9,548 million) and changes in the
Net assets held for sale refer mainly to a number of projects
consolidation scope (€106 million), related mainly to the ac-
in South Africa for which there is a binding offer for their
quisition by Enel X of a controlling interest in Paytipper and
future sale, as well as assets held in Bulgaria, which were
the acquisition of a number of companies in the renewable
sold in January 2021, and the equity-accounted investment
energy segment in Spain and Italy. These effects were com-
in OpEn Fiber.
pounded by the value adjustment of assets in Argentina
due to hyperinflation.
Net capital employed came to €87,772 million at December
Goodwill decreased following the impairment loss recogni-
31, 2020 and was funded by equity attributable to owners
zed in Argentina in the amount of €253 million and unfavo-
of the Parent and non-controlling interests in the amount
rable exchange rate developments, particularly in Brazil, in
of €42,357 million and net financial debt of €45,415 million.
the amount of €178 million.
The debt-to-equity ratio at December 31, 2020, was 1.07
(compared with 0.96 at December 31, 2019).
Equity-accounted investments decreased mainly as a result
130130
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Analysis of the Group’s
financial structure
Net financial debt
The following schedule shows the composition of and
changes in net financial debt.
Millions of euro
Long-term debt:
- bank borrowings
- bonds
- other borrowings
Long-term debt
Long-term financial assets and securities
Net long-term debt
Short-term debt
Bank borrowings:
- current portion of long-term bank borrowings
- other short-term bank borrowings
Short-term bank borrowings
Bonds (current portion)
Other borrowings (current portion)
Commercial paper
Cash collateral on derivatives and other financing
Other short-term financial borrowings (1)
Other short-term debt
Long-term loan assets (short-term portion)
Loan assets - cash collateral
Other short-term financial assets
Cash and cash equivalents with banks and short-term securities
Cash and cash equivalents and short-term financial assets
Net short-term debt
NET FINANCIAL DEBT
Net financial debt of “Assets held for sale”
at Dec. 31, 2020
at Dec. 31, 2019
Change
8,663
38,357
2,499
49,519
(2,745)
46,774
1,369
711
2,080
1,412
387
4,854
370
415
7,438
(1,428)
(3,223)
(253)
(5,973)
(10,877)
(1,359)
45,415
646
8,407
43,294
2,473
54,174
(3,185)
50,989
1,121
579
1,700
1,906
382
2,284
750
351
5,673
(1,585)
(2,153)
(369)
(9,080)
(13,187)
(5,814)
45,175
-
256
(4,937)
26
(4,655)
440
(4,215)
248
132
380
(494)
5
2,570
(380)
64
1,765
157
(1,070)
116
3,107
2,310
4,455
240
646
3.0%
-11.4%
1.1%
-8.6%
13.8%
-8.3%
22.1%
22.8%
22.4%
-25.9%
1.3%
-
-50.7%
18.2%
31.1%
9.9%
-49.7%
31.4%
34.2%
17.5%
-76.6%
0.5%
-
(1)
Includes current financial borrowings included under “Other current financial liabilities”.
Net financial debt, in the amount of €45,415 million at
Cash flows from operating activities (€11,508 million), the
December 31, 2020, increased by €240 million over De-
issue of perpetual hybrid bonds (€592 million, net of tran-
cember 31, 2019. The decline in gross financial debt was
saction costs), the conversion of hybrid bonds into perpe-
more than offset by the decline in cash and financial as-
tual hybrid bonds (€1,794 million, net of transaction costs)
sets. More specifically, this was due mainly to the following
and the impact of favorable exchange rate developments
factors: (i) investment needs for the year (€10,197 million),
on debt denominated in foreign currencies partially offset
including contract assets; (ii) the payment of dividends to-
cash needs related to the factors listed above.
taling €4,742 million; and (iii) extraordinary transactions in
non-controlling interests to acquire additional stakes in
Gross financial debt as at December 31, 2020, came to
Enel Américas and Enel Chile (€1,065 million).
€59,037 million, down €2,510 million from the previous year.
131
Integrated Annual Report 2020 GROSS FINANCIAL DEBT
Millions of euro
Gross financial debt
of which:
- sustainable financing
at Dec. 31, 2020
at Dec. 31, 2019
Gross long-
term debt
Gross short-
term debt
Gross debt
Gross long-
term debt
Gross short-
term debt
Gross debt
52,687
6,350
59,037
57,583
3,964
61,547
15,748
3,901
19,649
13,758
-
13,758
Sustainable financing/Total gross debt (%)
33%
22%
More specifically, gross long-term financial debt (including
Gross short-term financial debt increased by €2,386 mil-
the current portion) amounted to €52,687 million, of which
lion compared with December 31, 2019, to €6,350 million
€15,748 million in sustainable financing, and breaks down
and mainly includes commercial paper in the amount of
as follows:
€4,854 million, of which €3,901 million linked to sustainabi-
› bonds in the amount of €39,769 million, of which €7,710
lity goals issued by Enel Finance International and Endesa.
million related to sustainable bonds, a decrease of €5,431
million compared with December 31, 2019. The new bond
Cash and cash equivalents and short-term financial assets
issues, including a bond of £500 million (equivalent to
amounted to €13,622 million, a decrease of €2,750 million
€557 million) linked to sustainability objectives issued by
compared with the end of 2019, due mainly to the decrea-
Enel Finance International in October 2020, were easily
se in cash and cash equivalents with banks and short-term
offset by redemptions, positive exchange rate develop-
securities totaling €3,107 million.
ments and the accounting effects of the consent solici-
tation directed at the holders of three non-convertible
subordinated hybrid bonds denominated in euros in or-
der to align their features with those of new issues, for a
total amount of €1,797 million. More specifically, the main
change to those instruments regarded their maturity,
which was transformed from fixed to perpetual, which
means that they will be redeemed only in the event of
liquidation. As a result, those bonds are no longer reco-
gnized as debt instruments but as equity instruments;
› bank borrowings in the amount of €10,032 million, of whi-
ch €8,038 million related to sustainable financing. These
borrowings increased by €504 million compared with the
previous year due mainly to the use of new financing, only
partially offset by exchange gains and repayments during
the year. New bank borrowings include:
– €1,000 million in respect of the use of a floating-rate
loan granted to Enel SpA linked to sustainability goals;
– €300 million in respect of a floating-rate loans granted
to Endesa linked to sustainability goals;
– $340 million (equivalent to €277 million) in respect of
the use of a floating-rate loan granted to Enel Finance
America linked to sustainability goals;
– €250 million in respect of the use of a floating-rate
loan granted to e-distribuzione by the European In-
vestment Bank linked to sustainability goals;
› other borrowings in the amount of €2,886 million, essen-
tially unchanged from the previous year.
132132
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Cash flows
Millions of euro
Cash and cash equivalents at the beginning of the year (1)
Cash flows from operating activities
Cash flows used in investing activities
Cash flows from/(used in) financing activities
Effect of exchange differences on cash and cash equivalents
Cash and cash equivalents at the end of the year (2)
2020
9,080
11,508
(10,117)
(3,972)
(497)
6,002
2019
6,714
11,251
(9,115)
306
(76)
9,080
Change
2,366
257
(1,002)
(4,278)
(421)
(3,078)
(1) Of which, cash and cash equivalents in the amount of €9,029 million at January 1, 2020 (€6,630 million at January 1, 2019), short-term securities in the amount
of €51 million at January 1, 2020 (€63 million at January 1, 2019), and cash and cash equivalents pertaining to assets held for sale in the amount of €21 million
at January 1, 2019.
(2) Of which, cash and cash equivalents in the amount of €5,906 million at December 31, 2020 (€9,029 million at December 31, 2019), short-term securities in
the amount of €67 million at December 31, 2020 (€51 million at December 31, 2019), and cash and cash equivalents pertaining to assets held for sale in the
amount of €29 million at December 31, 2020.
Cash flows from operating activities for 2020 were a po-
aggregate referred mainly to the sale of 100% of three solar
sitive €11,508 million, up €257 million on the previous year
plants in Brazil; the sale of the business unit comprising the
due mainly to a decrease in financial expense paid, lower
Mercure biomass plant; and the disposal by EGPNA (now
taxes paid and a decrease in the use of provisions for risks
Enel North America) of 30% of its stake in the EGPNA REP
and charges, which offset the change in the gross opera-
joint venture, which held a number of wind energy project
ting profit and the increase in cash requirements con-
development companies.
nected with the change in net working capital.
Cash flows used in other investing activities in 2020 amoun-
Cash flows used in investing activities for 2020 amounted
ted to €41 million, essentially regarding the capital contri-
to €10,117 million, while they amounted to €9,115 million in
bution to the joint venture OpEn Fiber, partially offset by
2019.
minor divestments, mainly in Italy, Iberia and Latin America.
Investments in property, plant and equipment, intangible
assets, investment property and contract assets totaled
Cash flows used in financing activities amounted to €3,972
€10,197 million, an increase compared with the previous
million, compared with cash flows from financing activities
year. For more details, please see the following section.
of €306 million in 2019. Cash flows for 2020 essentially
Investments in entities (or business units) less cash and
reflected:
cash equivalents acquired amounted to €33 million and
› the payment of dividends in the amount of €4,742 million;
mainly included the acquisition of 100% of Parque Eólico
› transactions in non-controlling interests in the amount
Tico SLU, Tico Solar 1 SLU and Tico Solar 2 SLU by Enel Gre-
of €1,067 million, mainly related to increasing the sta-
en Power España and the acquisition of 100% of Sugge-
kes held in Enel Américas and Enel Chile (€1,065 million)
stion Power Unipessoal Lda by Endesa Generación Portu-
through a number of share swaps entered into with a le-
gal. In 2019, this aggregate mainly included the acquisition,
ading financial institution;
by EGPNA (now Enel North America), of 100% of seven re-
› an increase as the net effect of repayments and new bor-
newable energy plants from EGPNA REP, a 50/50 joint ven-
rowing and other changes in financial debt in the amount
ture between EGPNA and General Electric Capital’s Energy
of €1,262 million;
Financial Services.
› the generation of liquidity in the amount of €588 million
Disposals of entities and business units, net of cash and
with the issue of a non-convertible subordinated perpe-
cash equivalents sold, generated cash flows of €154 mil-
tual hybrid bond, net of transaction costs associated with
lion and mainly regarded the sale by Enel North America of
the issue and the transaction costs connected with the
a number of companies that owned hydroelectric plants
conversion of a number of bonds into perpetual hybrid
and were measured using the equity method; the sale by
bonds.
Endesa of 80% of its stake in Endesa Soluciones; the sale
of a number of storage facilities in North America; and the
In 2020, cash flows from operating activities in the amount
collection of a receivable related to the sale last year of the
of €11,508 million were sufficient to meet only a part of the
Reftinskaya coal-fired plant in Russia (net of the payment
funding needs for investment activities in the amount of
of a residual VAT liability related to the sale). In 2019, this
€10,117 million and financing activities in the amount of
133
Integrated Annual Report 2020 €3,972 million. The difference was reflected in a decrease in
adverse developments in the exchange rates of the various
cash and cash equivalents, which amounted to €6,002 mil-
local currencies with respect to the euro in the amount of
lion at December 31, 2020, compared with €9,080 million
€497 million.
at the end of 2019. This change also reflects the impact of
Capital expenditure
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2020
694
4,629
3,937
460
303
103
71
2019
851
4,293 (1)
3,905
449
270
134
45
10,197
9,947
Change
(157)
336
32
11
33
(31)
26
250
-18.4%
7.8%
0.8%
2.4%
12.2%
-23.1%
57.8%
2.5%
(1) The figure does not include €4 million regarding units classified as “held for sale”.
Capital expenditure increased by €250 million on the pre-
relation to the e-Bus project in Colombia and in Italy due
vious year.
In line with the Paris Agreement on the reduction of CO2
emissions, and guided by our energy efficiency and energy
to increased investment in public lighting and the develop-
ment of the e-Home and Vivi Meglio businesses. These ef-
fects were partially offset by decreased capital expenditure
transition objectives, the Enel Group has invested primarily
on storage distributed energy and demand response in the
in renewable energy. More specifically, the increase mainly
United States and on the e-Home business in Spain, due
involved Chile (€447 million), the United States (€447 mil-
mainly to a change in business model and to a slowing of
lion), South Africa (€143 million), Russia (€74 million), India
capital expenditure in response to COVID-19.
(€47 million), Italy (€43 million) and Brazil (€20 million, net of
Investment in thermal generation plants and trading de-
the significant adverse impact of exchange rate develop-
creased, especially in Iberia (€57 million) and Latin America
ments in the amount of €241 million). These increases were
(€73 million).
only partially offset by a decrease in investment in Iberia
(€305 million), Mexico (€334 million), Canada (€84 million),
With regard to capital expenditure, the results of the align-
Greece (€98 million), and Australia (€25 million).
ment of this metric with the European taxonomy are repor-
In order to enhance grid resilience in response to increasin-
ted as previously specified in the section “European Union
gly volatile weather events, investment in electricity distri-
taxonomy”.
bution also increased.
Investment in distribution increased in Italy (€213 million)
for quality and remote control projects and in Romania
(€13 million) for efforts related to service quality and new
connections. These increases were primarily offset by re-
ductions in capital expenditure in South America (€179 mil-
lion, especially in Argentina, Colombia and Brazil, with the
latter primarily reflecting adverse exchange rate develop-
ments) and in Spain. Capital expenditure on electronic me-
ters decreased due to a slowdown in the mass replacement
effort as a result of the pandemic.
Capital expenditure by Enel X increased in Latin America in
134134
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 37.9%
60.9%
1.2%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
83.3%
16.7%
13.8
billions of euro
Eligible
Not eligible
Not covered
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
2 3 . 3 %
||||||| | |
|
|
|
|
|
|
|
| | | | |||||||||||||||||
| |||||||||||||
|
|
|
| ||
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.9
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
2
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
%
|||||||||||
|
|
|
|
|||||||||||||||
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|||||||||
|
|
|
|
||||||||||||||
63.9
|||||||||||||||||
|
|
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
||||||| | |
|
|
| | | | |||||||||||||||||
| |||||||||||||
|
|
|
| ||
|||||||
|
|
|
|
|
|
3
|
|
|
4
|
.
|
65.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
%
|
|
|
|
|
|
|
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
S
E
I
T
I
V
I
T
C
A
E
L
B
I
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
30.5%
66.6%
2.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
72.1%
27.9%
31.4
billions of euro
Not eligible
Not covered
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
56.1%
42.0%
1.9%
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
88.8%
11.2%
9,2
billions of euro
Not eligible
Not covered
%
|||||||||
0.3
||||||||||||||
||||||||||||||||
8
|||||||||||||| | |
9 . 5 %
||||||||||| | |
|||||||| |
10.2 %
1 3 . 5
|||||||||||
|||||||||||||||
|||||||||||||||||||||
| | | | ||||||||||||||||
| |||||||||||||
|||||||
|||||||||||
|||||||||||||||
|||||||||||||||||||
|||||||||
||||||||||||||
%
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
7
|
.
|
|
|
1
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
billions
of euro
billions
of euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligible
Eligible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELIGIBLE CAPITAL EXPENDITURE UNDER
THE EUROPEAN TAXONOMY (CAPEX)
In 2020, 80.3% of capital expenditure was generated by bu-
are currently not covered by the European taxonomy regu-
siness activities that meet climate change mitigation crite-
lation, 88.8% of capital expenditure was eligible.
ria, compared with 76.8% in 2019. Excluding activities that
37.3%
56.2%
6.5%
S
E
I
T
I
V
I
T
C
A
I
E
L
B
G
I
L
E
|
|
|
|
|
|
||||||||||||||| | | |
||||||||||| | |
16 . 9 %
|||||||| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.5
billions
of euro
|
|
|
|
|
|
|
|
|
4
|
|
.
2
|
|
|
3
|||||||||||
|||||||||||||||
|||||||||||||||||||||
%
|
| | | | |||||||||||||||||
| |||||||||||||
|||||||
|
|
|
| | |
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
||||||||||||||
|||||||||||||||||
|
|
|
|
|
|
|
|
%
|
|
|
9
|
|
9
3
|
|
|
|
|
|
|
|
|
|
Eligible
L
A
N
O
I
T
I
D
D
A
T
U
P
T
U
O
R E S U LT E XC LU D I N G AC T I V I T I E S
N OT C OV E R E D BY TA XO N O M Y
70.2%
29.8%
4.2
billions of euro
Not eligible
Not covered
135
Integrated Annual Report 2020
RESULTS BY
BUSINESS LINE
The following chart outlines these organizational arrangemen-
ts.
The organizational model, which continues to be based on ma-
trix of divisions, provides for the integration of the various com-
panies in the Enel Green Power Business Line into the various
divisions by geographical segment, including the functional as-
The representation of performance by Business Line presented
signment of large hydro operations, which formally remain at-
here is based on the approach used by management in moni-
tributed to the thermal generation companies, and a definition
toring Group performance for the two years under review, ta-
of the geographical segments (Italy, Iberia, Europe, Latin Ame-
king account of the operational model adopted by the Group
rica, North America, Africa, Asia and Oceania, Central/Holding).
as described above.
In addition, the business structure is arranged as follows: Ther-
With regard to disclosures for operating segments, as mana-
mal Generation and Trading, Enel Green Power, Infrastructure
gement reports on performance by business area, the Group
and Networks, End-user Markets, Enel X, Services and Holding/
has therefore adopted the following reporting sectors:
Other.
› primary segment: Business Line;
In order to improve the presentation of the performance of the
› secondary segment: geographical segment.
various Business Lines, as from March 31, 2020 the data per-
The Business Line is therefore the main discriminant in the
taining to large customers managed by the generation com-
analyses performed and decisions taken by the management
panies in South America and Mexico have been reallocated to
of the Enel Group, and is fully consistent with the internal re-
the End-user Markets Business Line. Consequently, in order to
porting prepared for these purposes since the results are me-
ensure full comparability of the figures for the two years under
asured and evaluated first and foremost for each Business Line
review, the comparative figures for 2019 have been adjusted
and only thereafter are they broken down by country.
appropriately.
Holding
Global Business Lines
Local Business
Thermal
Generation
Trading
Enel
Green
Power
Infrastructure
and Networks
Enel X
End-user
Markets
Services
Regions and
Countries
Italy
Iberia
Europe
Africa, Asia
and Oceania
North
America
Latin
America
136136
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Results by Business Line
for 2020 and 2019
RESULTS FOR 2020 (1)
Millions of euro
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Revenue from third parties
19,350
7,409
17,824
17,647
970
1,803
(18)
64,985
Revenue from transactions with other
segments
1,454
283
1,518
11,861
151
67
(15,334)
-
Total revenue
20,804
7,692
19,342
29,508
1,121
1,870
(15,352)
64,985
Net income/(expense) from
commodity derivatives
(534)
68
-
264
Gross operating profit/(loss)
1,700
4,647
7,433
3,121
Depreciation, amortization and
impairment losses
Operating profit/(loss)
Capital expenditure
1,685
15
694
1,913
2,734
4,629
3,171
4,262
3,937
1,304
1,817
460
-
152
168
(16)
303
(6)
(47)
179
(226)
103
(4)
(212)
(190)
16,816
28
8,448
(218)
8,368
71
10,197
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments. An analogous approach was taken for other
income and costs for the year.
RESULTS FOR 2019 (1) (2)
Millions of euro
Thermal
Generation and
Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X Services
Other,
eliminations
and
adjustments
Total
Revenue from third parties
30,480
7,344
20,092
19,537
967
1,901
6
80,327
Revenue from transactions with other
segments
Total revenue
Net income/(expense) from
commodity derivatives
1,532
32,012
373
7,717
1,697
13,062
163
80
(16,907)
-
21,789
32,599
1,130
1,981
(16,901)
80,327
(676)
14
-
(71)
Gross operating profit
1,364
4,588
8,278
3,334
Depreciation, amortization and
impairment losses
Operating profit/(loss)
Capital expenditure
4,889
1,328
(3,525)
3,260
851
4,293 (3)
3,001
5,277
3,905
1,124
2,210
449
-
158
256
(98)
270
-
126
201
(75)
134
-
(733)
(144)
17,704
27
10,826
(171)
6,878
45
9,947
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments. An analogous approach was taken for other
income and costs for the year.
(2) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico the data for large customers
managed by the generation companies have been reallocated to the End-user Market Business Line.
(3) Does not include €4 million regarding units classified as “held for sale”.
In addition to the above, the Group also monitors perfor-
goal of providing a view of performance not only by Busi-
mance by Region/Country. In the table below, gross opera-
ness Line but also by Region/Country.
ting profit is shown for the two years under review with the
137
Integrated Annual Report 2020 GROSS OPERATING PROFIT (1)
Millions of euro
Thermal Generation
and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
2020
2019 Change
2020
2019 Change
2020
2019 Change
2020
2019 Change
2020
2019
Change
2020
2019
Change
2020
2019
Change
2020
2019
Change
Italy
221
(14)
235
1,311
1,240
71
3,824
3,906
(82)
2,362
2,314
48
68
169
(101)
7,824
7,628
196
Iberia
1,039
590
449
434
358
76
1,890
2,025
(135)
467
715
(248)
(94)
66
(160)
3,775
3,792
(17)
Latin America
309
609
(300)
1,979
2,202
(223)
1,579
2,259
(680)
201
292
(91)
(88)
(123)
4,063
5,303
(1,240)
Argentina
Brazil
Chile
Colombia
85
66
35
9
165
(80)
28
51
(23)
46
270
(224)
(7)
3
102
(36)
271
335
(64)
871
1,144
(273)
107
154
198
(163)
825
888
(63)
156
222
(66)
8
1
573
620
(47)
353
399
(46)
Peru
114
136
(22)
136
Panama
Other
countries
-
-
-
-
-
-
101
45
157
112
39
Europe
118
209
(91)
161
112
Romania
(1)
(2)
1
Russia
Other
countries
North
America
United States
and Canada
Mexico
Africa, Asia
and Oceania
South Africa
India
Other
countries
119
209
(90)
-
17
18
(1)
-
-
-
-
2
(16)
(16)
-
-
-
-
-
(2)
33
34
(1)
-
-
-
-
78
(7)
90
75
(1)
38
767
737
693
658
74
53
53
6
(6)
79
62
58
8
(4)
Other
(4)
(14)
10
(58)
(123)
(21)
153
224
(71)
(11)
6
49
3
(6)
52
30
35
(5)
(9)
(5)
(2)
(2)
65
-
-
-
-
135
107
135
107
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
28
-
-
-
-
-
-
-
-
-
5
(19)
24
(10)
(47)
(16)
(12)
(6)
-
-
67
67
-
-
11
-
11
-
-
-
-
-
25
54
22
-
-
82
82
-
-
9
-
9
-
-
-
-
-
41
66
28
-
-
15
15
-
-
(2)
-
(2)
-
-
-
-
-
Total
1,700
1,364
336
4,647
4,588
59
7,433
8,278
(845)
3,121
3,334
(213)
152
158
(47)
126
(173)
(190)
(144)
(46)
16,816
17,704
(888)
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
138138
(11)
(65)
(72)
991
1,303
(312)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
151
488
(337)
1,298
1,685
(387)
1,030
1,131
(101)
447
545
(98)
509
448
307
206
101
206
(94)
112
39
36
77
61
58
8
(5)
(11)
6
61
54
(21)
(26)
5
(6)
(3)
(2)
(1)
101
45
112
90
82
55
55
6
(6)
(4)
(19)
-
-
-
-
4
4
-
-
-
-
-
-
-
(1)
(49)
-
(1)
-
-
5
5
-
-
-
-
-
-
-
-
-
35
(3)
30
(1)
(1)
(3)
(3)
7
-
1
-
-
-
-
-
-
-
-
-
(90)
(90)
(3)
(3)
(2)
(2)
778
799
696
722
38
39
83
3
2
15
41
22
-
-
9
9
-
-
-
2
2
-
-
(10)
(10)
13
38
64
-
(1)
26
38
1
-
-
-
6
(2)
(4)
80
80
(1)
-
-
-
(1)
25
1
19
3
3
3
21
-
-
9
3
2
4
-
3
2
-
1
27
(6)
(9)
(36)
66
9
57
(188)
(144)
(44)
(188)
(327)
139
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
Thermal Generation
2020
2019 Change
2020
2019 Change
2020
2019 Change
2020
2019 Change
2020
2019
Change
2020
2019
Change
2020
2019
Change
2020
2019
Change
Italy
221
(14)
235
1,311
1,240
71
3,824
3,906
(82)
2,362
2,314
48
Iberia
1,039
590
449
434
358
76
1,890
2,025
(135)
467
715
(248)
Latin America
309
609
(300)
1,979
2,202
(223)
1,579
2,259
(680)
201
292
(91)
Argentina
165
(80)
28
51
(23)
46
270
(224)
(7)
3
102
(36)
271
335
(64)
871
1,144
(273)
107
154
198
(163)
825
888
(63)
156
222
(66)
573
620
(47)
353
399
(46)
Peru
114
136
(22)
136
(21)
153
224
(71)
Brazil
Chile
Colombia
Panama
Other
countries
Russia
Other
countries
North
America
United States
and Canada
Mexico
Africa, Asia
and Oceania
South Africa
India
Other
countries
85
66
35
9
-
-
-
17
18
(1)
-
-
-
-
Europe
118
209
(91)
161
112
135
107
Romania
(1)
(2)
135
107
119
209
(90)
8
-
-
-
-
-
-
-
2
(16)
(16)
1
-
-
1
-
-
-
-
(2)
33
34
(1)
157
112
39
75
(1)
38
79
62
58
8
(4)
101
45
78
(7)
90
74
53
53
6
(6)
767
737
693
658
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
28
-
-
-
-
-
-
-
-
-
-
-
(11)
6
49
3
(6)
52
30
35
(5)
(9)
(5)
(2)
(2)
65
(10)
(47)
(16)
(12)
(6)
67
67
11
-
11
-
-
-
-
-
-
-
-
-
25
54
22
-
-
82
82
-
-
9
-
9
-
-
-
-
-
41
66
28
15
15
(2)
(2)
-
-
-
-
-
-
-
-
-
-
38
39
83
3
2
15
41
22
-
-
9
9
-
-
(10)
(10)
-
2
2
-
-
13
38
64
-
(1)
26
38
1
-
-
-
6
(2)
(4)
80
80
-
(1)
-
-
(1)
Other
(4)
(14)
10
(58)
(123)
5
(19)
24
Total
1,700
1,364
336
4,647
4,588
59
7,433
8,278
(845)
3,121
3,334
(213)
(9)
(36)
152
158
25
1
19
3
3
3
21
-
-
9
3
2
4
(90)
(90)
-
3
2
-
1
27
(6)
68
169
(101)
(94)
66
(160)
(88)
(123)
(4)
(19)
(1)
(49)
(11)
(65)
(72)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(2)
-
-
-
-
-
7,824
7,628
196
3,775
3,792
(17)
4,063
5,303
(1,240)
151
488
(337)
1,298
1,685
(387)
991
1,303
(312)
1,030
1,131
(101)
447
545
(98)
101
45
112
39
509
448
(11)
6
61
307
206
101
206
(94)
112
90
36
778
799
696
722
82
55
55
6
(6)
77
61
58
8
(5)
54
(21)
(26)
5
(6)
(3)
(2)
(1)
35
(3)
30
7
-
1
-
-
(1)
(1)
-
-
(3)
(3)
-
-
-
-
-
-
-
-
-
4
4
-
-
(3)
(3)
-
-
-
-
-
-
(1)
-
-
5
5
-
-
-
-
-
-
-
-
-
66
9
57
(188)
(144)
(44)
(188)
(327)
139
(47)
126
(173)
(190)
(144)
(46)
16,816
17,704
(888)
139
Integrated Annual Report 2020 RESULTS IN ACCORDANCE WITH THE EUROPEAN
TAXONOMY BY BUSINESS LINE
The results of the alignment of the metrics for revenue
expenditure and ordinary operating expenditure with the
from third parties, ordinary gross operating profit, capital
European taxonomy are reported, broken down by Business
VALUE
CHAIN
Eligible
activities
(substantive
contribution to
climate change
mitigation)
Generation
Enel Green
Power
Thermal
Generation
and Trading
Grids
Infrastructure
and Networks
Customers
End-user
Markets
Revenue from third parties(1)
Ordinary gross operating profit (ordinary EBITDA)
Capital expenditure (CAPEX)(2)
Ordinary operating expenditure (ordinary OPEX)
2020
2019
2020
2019
2020
2019
2020
2019
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
7,409
11.4%
7,344
9.1%
4,721
26.3%
4,618
25.8%
6,914
10.6%
6,921
495
-
0.8%
-
423
-
8.6%
0.5%
-
4,346
24.2%
4,296
24.0%
375
-
2.1%
-
322
-
1.8%
-
19,350
29.8%
30,480
38.0%
2,230
12.4%
1,585
8.8%
8.6%
1,192
15.9%
1,561
18.3%
5,545
13,802
17,824
15,103
2,720
3
-
3
-
8.5%
7,591
9.5%
21.3%
22,886
28.5%
-
1,194
1,036
-
6.7%
5.7%
2
1,150
433
-
6.4%
2.4%
27.4%
20,092
25.0%
7,714
43.0%
8,228
46.0%
23.2%
16,618
20.7%
6,989
39.0%
7,132
39.9%
4.2%
3,474
4.3%
1
-
-
-
726
(1)
4.0%
1,096
-
-
6.1%
-
17,647
27.2%
19,537
24.3%
3,197
17.8%
3,334
18.6%
460
4.5%
449
4.5%
897
11.9%
1,009
11.9%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,647
27.2%
19,537
24.3%
3,197
17.8%
3,334
18.6%
4,629
4,591
38
-
694
1
493
200
3,937
3,435
502
-
-
-
-
-
-
460
303
158
145
174
174
10,197
8,185
1,033
979
-
-
-
-
-
-
-
-
45.4%
45.0%
0.4%
6.8%
4.9%
1.9%
38.6%
33.7%
4.9%
4.5%
3.0%
1.6%
1.4%
1.7%
1.7%
100%
80.3%
10.2%
9.5%
4,293
4,247
46
-
851
-
663
188
3,905
3,269
636
-
-
-
-
-
-
449
270
133
137
179
179
9,947
7,649
1,345
953
43.2%
42.7%
0.5%
-
-
-
-
-
-
-
-
6.7%
1.9%
39.2%
32.8%
6.4%
4.5%
2.7%
1.3%
1.4%
1.8%
1.8%
100%
76.8%
13.6%
9.6%
-
-
1
-
-
-
-
-
1,227
1,119
108
783
409
2,065
1,683
381
897
296
195
101
1,844
1,844
7,521
2,997
1,272
3,252
-
-
-
-
-
-
-
-
16.3%
14.9%
1.4%
10.4%
5.5%
27.5%
22.4%
5.1%
11.9%
3.9%
2.6%
1.3%
24.5%
24.5%
100%
39.9%
16.9%
43.2%
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
1,277
15.0%
1,177
100
13.8%
1.2%
1,150
411
2,388
1,989
398
13.5%
4.8%
28.1%
23.4%
4.7%
1,009
347
203
11.9%
4.1%
2.4%
144
1.7%
1,924
22.6%
1,924
8,506
3,369
1,648
3,489
22.6%
100%
39.6%
19.4%
41.0%
-
-
1,785
64,985
22,678
TOTAL
-
-
-
-
-
-
-
-
-
-
2.7%
1,907
2.4%
(83)
-0.4%
(18)
100%
80,327
100%
17,940
100%
17,905
-
-
-0.1%
100%
34.8%
24,255
30.2%
11,469
63.9%
11,524
64.4%
Enel X
970
658
-
312
1.5%
1.0%
-
0.5%
967
713
-
254
Other
Services and
other
1,785
2.7%
1,907
161
134
-
27
0.9%
0.7%
-
0.2%
158
94
-
64
0.9%
0.5%
-
0.4%
(83)
-0.4%
(18)
-0.1%
1.2%
0.9%
-
0.3%
2.4%
-
-
8,760
13.5%
11,488
33,547
51.7%
44,584
14.3%
55.5%
2,295
4,176
12.8%
23.3%
2,568
3,813
14.3%
21.3%
(1) Revenue from third parties is “segment” revenue from non-Group counterparties only. It therefore does not include transactions between the various segments.
(2) The figure for 2019 capital expenditure does not include €4 million regarding units classified as “held for sale”.
140140
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Line, as previously specified in the section “European Union
re and ordinary operating expenditure into the European
taxonomy”.
taxonomy categories as a percentage of the total for each
The table reports the breakdown of revenue from third
of those aggregates.
parties, ordinary gross operating profit, capital expenditu-
VALUE
CHAIN
Eligible
activities
(substantive
contribution to
climate change
mitigation)
Generation
Enel Green
Power
7,409
11.4%
7,344
9.1%
4,721
26.3%
4,618
25.8%
6,914
10.6%
6,921
4,346
24.2%
4,296
24.0%
0.8%
375
2.1%
1.8%
8.6%
0.5%
423
-
Thermal
Generation
and Trading
19,350
29.8%
30,480
38.0%
2,230
12.4%
1,585
8.8%
8.5%
7,591
9.5%
21.3%
22,886
28.5%
1,194
1,036
6.7%
5.7%
6.4%
2.4%
Grids
Infrastructure
and Networks
27.4%
20,092
25.0%
7,714
43.0%
8,228
46.0%
23.2%
16,618
20.7%
6,989
39.0%
7,132
39.9%
4.2%
3,474
4.3%
4.0%
1,096
6.1%
Customers
End-user
Markets
17,647
27.2%
19,537
24.3%
3,197
17.8%
3,334
18.6%
-
-
-
-
-
-
-
-
1.2%
0.9%
0.3%
2.4%
3
-
-
-
-
-
-
322
-
2
1,150
433
-
-
-
-
-
158
94
-
64
-
-
-
-
-
-
-
-
0.9%
0.7%
0.2%
-
-
-
-
-
-
726
(1)
161
134
-
27
-
-
-
-
-
-
-
-
17,647
27.2%
19,537
24.3%
3,197
17.8%
3,334
18.6%
Enel X
970
658
1.5%
1.0%
967
713
312
0.5%
254
Other
Services and
other
1,785
2.7%
1,907
(83)
-0.4%
(18)
-0.1%
TOTAL
100%
80,327
100%
17,940
100%
17,905
2.7%
1,907
2.4%
(83)
-0.4%
(18)
34.8%
24,255
30.2%
11,469
63.9%
11,524
64.4%
8,760
13.5%
11,488
33,547
51.7%
44,584
14.3%
55.5%
2,295
4,176
12.8%
23.3%
2,568
3,813
495
-
3
5,545
13,802
17,824
15,103
2,720
1
-
-
-
-
-
1,785
64,985
22,678
-
-
-
-
-
-
-
-
0.9%
0.5%
0.4%
-0.1%
100%
14.3%
21.3%
Revenue from third parties(1)
Ordinary gross operating profit (ordinary EBITDA)
Capital expenditure (CAPEX)(2)
Ordinary operating expenditure (ordinary OPEX)
2020
2019
2020
2019
2020
2019
2020
2019
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
%
€ millions
4,629
4,591
38
-
694
1
493
200
3,937
3,435
502
-
460
-
-
460
303
158
-
145
174
-
-
174
10,197
8,185
1,033
979
45.4%
45.0%
0.4%
-
6.8%
-
4.9%
1.9%
38.6%
33.7%
4.9%
-
4.5%
-
-
4.5%
3.0%
1.6%
-
1.4%
1.7%
-
-
1.7%
100%
80.3%
10.2%
9.5%
4,293
4,247
46
-
851
-
663
188
3,905
3,269
636
-
449
-
-
449
270
133
-
137
179
-
-
179
9,947
7,649
1,345
953
43.2%
42.7%
0.5%
-
1,227
1,119
108
-
16.3%
14.9%
1.4%
-
1,277
1,177
100
-
%
15.0%
13.8%
1.2%
-
8.6%
1,192
15.9%
1,561
18.3%
-
6.7%
1.9%
39.2%
32.8%
6.4%
-
4.5%
-
-
4.5%
2.7%
1.3%
-
1.4%
1.8%
-
-
1.8%
100%
76.8%
13.6%
9.6%
-
783
409
2,065
1,683
381
1
897
-
-
897
296
195
-
101
-
10.4%
5.5%
27.5%
22.4%
5.1%
-
11.9%
-
-
-
1,150
411
2,388
1,989
398
1
-
13.5%
4.8%
28.1%
23.4%
4.7%
-
1,009
11.9%
-
-
-
-
11.9%
1,009
11.9%
3.9%
2.6%
-
1.3%
347
203
-
144
4.1%
2.4%
-
1.7%
1,844
24.5%
1,924
22.6%
-
-
1,844
7,521
2,997
1,272
3,252
-
-
24.5%
100%
39.9%
16.9%
43.2%
-
-
1,924
8,506
3,369
1,648
3,489
-
-
22.6%
100%
39.6%
19.4%
41.0%
eligible
not eligible
not covered
141
Integrated Annual Report 2020 THERMAL
GENERATION
AND TRADING
142142
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
39.0
GW
101.7
TWh
NET EFFICIENT INSTALLED
CAPACITY
-23.9% from coal plants compared
with 2019
NET ELECTRICITY
GENERATION
-65.0% from coal plants
compared with 2019
2.5%
€1,700
million
“COAL”
REVENUE
as proportion of total Group revenue
GROSS OPERATING
PROFIT
€1,636 million in 2019
Operations
NET ELECTRICITY GENERATION
Millions of kWh
Coal plants
Fuel-oil and turbo-gas plants
Combined-cycle plants
Nuclear plants
Total net generation
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
2020
13,155
19,401
43,353
25,839
2019
37,592
20,887
44,980
26,279
Change
(24,437)
(1,486)
(1,627)
(440)
101,748
129,738
(27,990)
19,044
42,853
21,764
18,087
22,604
51,312
23,388
32,434
(3,560)
(8,459)
(1,624)
(14,347)
-65.0%
-7.1%
-3.6%
-1.7%
-21.6%
-15.7%
-16.5%
-6.9%
-44.2%
The decrease in net electricity generation is essentially
at other high-emission plants generally decreased while
attributable to a sharp reduction in coal-fired generation
renewable generation increased. More specifically, gene-
(24,437 kWh), mainly in Russia (13,333 million kWh) fol-
ration at fuel-oil and turbo-gas plants decreased by 1,486
lowing the sale on October 1, 2019 of the Reftinskaya GRES
million kWh, while combined-cycle plants saw a reduction
coal-fired plant, as well as in Iberia (6,210 million kWh), Italy
of 1,627 million kWh.
(3,672 million kWh), and Chile (1,280 million kWh) in respon-
se to the acceleration of the energy transition. Generation
143
Integrated Annual Report 2020 NET EFFICIENT INSTALLED CAPACITY
MW
Coal plants
Fuel-oil and turbo-gas plants
Combined-cycle plants
Nuclear plants
Total
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
2020
8,903
11,711
15,009
3,328
38,951
12,414
13,871
7,406
5,260
2019
11,695
12,211
14,991
3,318
42,215
13,480
15,957
7,523
5,255
Change
(2,792)
(500)
18
10
(3,264)
(1,066)
(2,086)
(117)
5
-23.9%
-4.1%
0.1%
0.3%
-7.7%
-7.9%
-13.1%
-1.6%
0.1%
Compared with 2019, the 3,264 MW decrease in net effi-
sioning of 3,023 MW in coal, fuel-oil and turbo-gas plants
cient installed capacity was primarily due to the decommis-
in Spain and Italy.
Performance (1)
Millions of euro
Revenue
Gross operating profit
Ordinary gross operating profit
Operating profit/(loss)
Capital expenditure
2020
20,804
1,700
2,230
15
694
2019
32,012
1,364
1,585
(3,525)
851
Change
(11,208)
336
645
3,540
(157)
-35.0%
24.6%
40.7%
-
-18.4%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
With regard to revenue, in response to strategic decisions
bating climate change, coal-related revenue experienced a
inspired by a sustainable business model under which we
progressive, generalized decline as shown in the following
pursue the goals, inter alia, of decarbonization and com-
table:
REVENUE FROM THERMAL AND NUCLEAR GENERATION
Millions of euro
Revenue (1)
Revenue from thermal generation
- of which: coal generation
Revenue from nuclear generation
Revenue from thermal generation as a percentage of total revenue
- of which: revenue from coal generation as a percentage of total revenue
Revenue from nuclear generation as a percentage of total revenue
Change
-27.1%
-42.0%
4.9%
2020
7,512
1,639
1,360
11.6%
2.5%
2.1%
2019
10,300
2,827
1,296
12.8%
3.5%
1.6%
(1) Revenue from third parties is “segment” revenue from non-Group counterparties and transactions between the various segments.
144144
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following tables show a breakdown of performance by
Region/Country in 2020.
REVENUE (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
- of which Romania
- of which Russia
- of which other countries
Other
Eliminations and adjustments
Total
2020
14,029
5,129
1,304
148
182
627
183
164
12
539
-
539
-
130
2019
23,688
6,261
1,875
323
283
813
102
354
29
956
42
911
3
54
(339)
20,804
(851)
32,012
Change
(9,659)
(1,132)
(571)
(175)
(101)
(186)
81
(190)
(17)
(417)
(42)
(372)
(3)
76
512
(11,208)
-40.8%
-18.1%
-30.5%
-54.2%
-35.7%
-22.9%
79.4%
-53.7%
-58.6%
-43.6%
-
-40.8%
-
-
60.2%
-35.0%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
GROSS OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
- of which Romania
- of which Russia
- of which other countries
Other
Total
2020
221
1,039
309
85
66
35
9
114
17
118
(1)
119
-
(4)
2019
Change
(14)
590
609
165
102
198
8
136
(16)
209
(2)
209
2
(14)
235
449
(300)
(80)
(36)
(163)
1
(22)
33
(91)
1
(90)
(2)
10
336
-
76.1%
-49.3%
-48.5%
-35.3%
-82.3%
12.5%
-16.2%
-
-43.5%
-50.0%
-43.1%
-
-71.4%
24.6%
1,700
1,364
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
The increase in gross operating profit in 2020 is mainly due
which mainly reflects the reduction in thermal gene-
to:
ration and the consequent decline in other provisio-
› an increase of €449 million in Iberia, essentially attribu-
ning costs, including electricity (€135 million), as well
table to the following factors:
as improvements in operating efficiency, partly offset
– a decrease of €1,093 million in fuel consumption costs,
by a decrease in revenue from the sale of electricity
145
Integrated Annual Report 2020 and gas as result of a decline in volumes handled and
– a decrease of €163 million in gross operating profit in
prices charged;
Chile, mainly attributable to the effect of the recogni-
– a reduction in personnel expenses due to the modifica-
tion in 2019 of an indemnity of €80 million from a large
tion of the electricity discount benefit, net of the provi-
industrial customer for having exercised the early with-
sion for early retirement incentive plans (€165 million);
drawal option and to a reduction in revenue from the
– the decrease in costs associated with services in
sale of electricity and gas, which mainly reflected ad-
reflection of the lockdown imposed in response to the
verse exchange rate developments, partially offset by
COVID-19 health emergency.
These effects were partially offset by:
lower costs related to decarbonization, which involved
the early closure of Unit I at the Bocamina coal plant;
– increased provisions (€204 million) related to the
– a reduction of €80 million in gross operating profit in
Group’s restructuring plans as part of the energy tran-
Argentina due, above all, to adverse exchange rate de-
sition, particularly related to coal plants in Spain;
velopments and to the lower quantities of electricity
– a deterioration in net income from derivative contracts
sold;
for the management of commodity risk in the amount
– a decrease of €36 million in gross operating profit in
of €124 million;
Brazil due mainly both to lower volumes sold at decli-
› an increase of €235 million in gross operating profit in
ning average prices and to the weakening of the Brazi-
Italy due essentially to:
lian real against the euro;
– a reduction in provisioning costs of thermal plants
› a decrease of €91 million in gross operating profit in Eu-
being decommissioned and improvements in opera-
rope, mainly in Russia, and due essentially to the sale of
ting efficiency, the effects of which were partially offset
the Reftinskaya GRES coal-fired plant.
by reduced revenue from the sale of electricity due to
both lower volumes and lower prices applied;
The ordinary gross operating profit of €2,230 million
– an improvement in the net profit from derivative con-
(€1,585 million in 2019) was affected by €299 million of co-
tracts for the management of commodity risk in the
sts relating to restructuring plans connected with the ener-
amount of €255 million;
gy transition, €218 million in write-downs of the inventories
– a write-down of €186 million of fuel and spare-parts
and spare parts of a number of plants and €13 million of
inventories;
costs incurred following the COVID-19 pandemic for the
– charges connected with restructuring plans for the
sanitization of workplaces, personal protective equipment
energy transition in the amount of €71 million;
and donations.
› a reduction of €300 million in gross operating profit in
Latin America due mainly to:
146146
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
- of which Romania
- of which Russia
- of which other countries
Other
Eliminations and adjustments
Total
2020
(40)
559
(589)
32
56
(749)
(7)
79
14
76
(2)
83
(5)
(5)
-
15
2019
(1,908)
(1,650)
35
100
89
(246)
(9)
101
(17)
30
(1)
31
-
(15)
-
Change
1,868
2,209
(624)
(68)
(33)
(503)
2
(22)
31
46
(1)
52
(5)
10
-
(3,525)
3,540
-97.9%
-
-
-68.0%
-37.1%
-
-22.2%
-21.8%
-
-
-
-
-
-66.7%
-
-
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
In addition to the factors described above in relation to the
in 2020 as compared with the previous year, when impair-
gross operating profit, the increase in operating profit is
ment losses were recognized on coal plants. More specifi-
connected with the decrease in depreciation, amortization
cally, depreciation and amortization came to €364 million,
and impairment losses (totaling €3,204 million) recognized
while impairment losses totaled €2,840 million.
CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
2020
2019
Change
180
331
120
7
56
-
694
189
388
193
-
79
2
851
(9)
(57)
(73)
7
(23)
(2)
(157)
-4.8%
-14.7%
-37.8%
-
-29.1%
-
-18.4%
The decrease of €157 million in capital expenditure invol-
ge in scheduling and a redefinition of activities concerning
ved all geographical segments, with the exception of Nor-
gas and coal plants in Spain, the rest of Europe and Latin
th America, and mainly reflects the sale in Russia of the
America, and cost-optimization efforts.
Reftinskaya GRES plant in the 4th Quarter of 2019, a chan-
147
Integrated Annual Report 2020 ENEL
GREEN
POWER
148148
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 45.0
GW
105.4
TWh
NET EFFICIENT INSTALLED
CAPACITY
53.6% of total Group capacity
NET ELECTRICITY
GENERATION
+45.0% from solar plants
compared with 2019
€4,647
million
€4,629
million
GROSS OPERATING
PROFIT
€4,588 million in 2019
CAPITAL EXPENDITURE
+7.8% on 2019
Operations
NET ELECTRICITY GENERATION
Millions of kWh
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net generation
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
- of which North America
- of which Africa, Asia and Oceania
2020
62,437
6,167
30,992
5,763
1
105,360
23,451
13,415
47,400
2,374
17,182
1,538
2019
62,580
6,149
26,668
3,974
21
99,392
24,309
10,090
48,448
2,005
12,969
1,571
Change
(143)
18
4,324
1,789
(20)
5,968
(858)
3,325
(1,048)
369
4,213
(33)
-0.2%
0.3%
16.2%
45.0%
-95.2%
6.0%
-3.5%
33.0%
-2.2%
18.4%
32.5%
-2.1%
Net electricity generation in 2020 increased from 2019
The increase in solar generation is mainly attributable to the
due to increases in wind and solar generation, partially of-
United States (+850 million kWh) with the significant con-
fset by a decrease in hydro and biomass generation. The
tribution of the new Roadrunner plant; Iberia (+397 million
most significant changes in wind power were seen in the
kWh), thanks, above all, to the new plants that went onli-
United States (+2,116 million kWh) due mainly to the start of
ne in late 2019 in Estremadura; and Mexico (+397 million
operations at the High Lonesome (I and II) and Whitney Hill
kWh), mainly due to the start of operations at the Magda-
plants; in Iberia (+1,108 million kWh); in Mexico (+503 million
lena plant.
kWh), due, above all, to the start of operations at the Dolo-
Hydroelectric output fell slightly due to declining genera-
res Wind plant; in Canada (+374 million kWh) due mainly to
tion in Chile in particular (-866 million kWh) and Colombia
the start of operations at the Riverview plant; and in Greece
(-1,305 million kWh), partly offset by an increase in output in
(+346 million kWh) due mainly to the start-up of the new
Iberia (+1,821 million kWh).
Kafireas wind farms.
149
Integrated Annual Report 2020 NET EFFICIENT INSTALLED CAPACITY
MW
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net efficient generation capacity
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
- of which North America
- of which Africa, Asia and Oceania
2020
27,820
882
12,412
3,897
5
45,016
13,986
7,781
14,554
1,141
6,643
911
2019
27,830
878
10,327
3,094
5
42,134
13,972
7,391
13,676
1,037
5,282
776
Change
(10)
4
2,085
803
-
2,882
14
390
878
104
1,361
135
-
0.5%
20.2%
26.0%
-
6.8%
0.1%
5.3%
6.4%
10.0%
25.8%
17.4%
Net efficient installed capacity increased in 2020 compared
que Amistad III SA de Cv wind farms;
with 2019, and mainly in:
› Brazil in relation to the São Gonçalo photovoltaic plants
› the United States as a result of construction of the Roa-
and the Lagoa dos Ventos I wind farm;
drunner Ph II, Ph III and Ph IV solar plants, expansion of the
› Spain for the Aragona wind farms and the Andalusia, Ca-
Cimarron Bend wind farm, and the start of operations at
stilla - La Mancha, Estremadura and Balearic Islands pho-
the White Cloud and High Lonesome plants;
tovoltaic plants.
› Mexico in relation to the Dolores Wind SA de Cv and Par-
Performance (1)
Millions of euro
Revenue
Gross operating profit
Ordinary gross operating profit
Operating profit
Capital expenditure
2020
7,692
4,647
4,721
2,734
4,629
2019
7,717
4,588
4,618
3,260
4,293 (2)
Change
(25)
59
103
(526)
336
-0.3%
1.3%
2.2%
-16.1%
7.8%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers
managed by the power generation companies were reallocated to the End-user Markets Business Line.
(2) The figure does not include €4 million regarding units classified as “held for sale”.
150150
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following tables show a breakdown of performance by
Region/Country in 2020.
REVENUE (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which United States and Canada
- of which Mexico
Europe
- of which Romania
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
2020
2,154
771
3,234
39
837
1,209
814
132
136
67
1,156
1,018
138
323
198
114
9
2
99
226
(271)
7,692
2019
1,918
653
3,677
64
694
1,479
1,007
196
169
68
1,115
956
159
271
175
86
8
2
107
105
(129)
7,717
Change
236
118
(443)
(25)
143
(270)
(193)
(64)
(33)
(1)
41
62
(21)
52
23
28
1
-
(8)
121
(142)
(25)
12.3%
18.1%
-12.0%
-39.1%
20.6%
-18.3%
-19.2%
-32.7%
-19.5%
-1.5%
3.7%
6.5%
-13.2%
19.2%
13.1%
32.6%
12.5%
-
-7.5%
-
-
-0.3%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers
managed by the power generation companies were reallocated to the End-user Markets Business Line.
151
Integrated Annual Report 2020 GROSS OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which United States and Canada
- of which Mexico
Europe
- of which Romania
- of which Russia
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Total
2020
1,311
434
1,979
28
271
825
573
136
101
45
767
693
74
161
78
(7)
85
7
(2)
53
2019
1,240
358
2,202
51
335
888
620
157
112
39
737
658
79
112
75
(1)
35
6
(3)
62
(58)
4,647
(123)
4,588
Change
71
76
(223)
(23)
(64)
(63)
(47)
(21)
(11)
6
30
35
(5)
49
3
(6)
50
1
1
(9)
65
59
5.7%
21.2%
-10.1%
-45.1%
-19.1%
-7.1%
-7.6%
-13.4%
-9.8%
15.4%
4.1%
5.3%
-6.3%
43.8%
4.0%
-
-
16.7%
33.3%
-14.5%
52.8%
1.3%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers
managed by the power generation companies were reallocated to the End-user Markets Business Line.
The gross operating profit increased by €59 million from
– increased tax-partnership income (€137 million) reco-
2019, essentially reflecting:
gnized in 2020 following the start of operations at new
› an increase in gross operating profit in Italy, due above all
Enel North America plants, in particular Cimarron Bend,
to improved performance of hydroelectric plants;
White Cloud, Roadrunner, and Aurora Wind;
› an increase in gross operating profit in Spain, due above
– an increase in income from indemnities and disputes
all to increased quantities generated and sold as a result
(€31 million);
of an increase in capacity following the start of opera-
– an increase in income attributable to the sale of the
tions at a number of wind and solar plants, as well as to
Haystack wind project by Tradewind (€45 million);
increased quantities generated by hydroelectric plants,
› an increase in gross operating profit in Europe, and in
the effect of which was partially offset by a reduction in
Greece in particular, following the start of operations for
prices;
the Kafireas wind farms in the first part of 2020;
› an improved gross operating profit in North America,
› a decrease in gross operating profit in Latin America, due
mainly in the United States and Canada, where the reco-
mainly to:
gnition of negative goodwill in the amount of €181 million
– a decrease in gross operating profit in Chile due mainly
and gains on the sale of projects in the amount of €42
to the recognition by Enel Generación Chile in 2019 of
million in 2019 were more than offset by the following ef-
penalty revenue in the amount of €80 million as a result
fects:
of the early withdrawal by a large-scale industrial cu-
– increased gross operating profit related to new plants
stomer from a long-term electricity supply agreement,
entering service;
as well as adverse exchange rate developments;
152152
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements – a deterioration of gross operating profit in Brazil, mainly
million (€4,618 million in 2019), reflecting €50 million in co-
as a result of the lower quantities sold, the significant
sts relating to restructuring plans connected with the ener-
weakening of the Brazilian real against the euro and the
gy transition in Italy, Spain and Latin America, €10 million in
effect of the sale of a number of wind plants in 2019;
costs incurred as a result of the COVID-19 pandemic for
– a reduction of gross operating profit in Colombia,
workplace sanitization activities, personal protective equi-
mainly due to adverse exchange rate developments
pment and donations, €10 million in write-downs of the
and to a decline in quantities generated and sold as a
materials inventories of Enel Green Power Italia and €4 mil-
result, above all, of limited water availability and lower
lion for the supply of solar panels by Enel Green Power Italia
electricity demand.
related to a contractual clause connected with the sale of
The ordinary gross operating profit amounted to €4,721
EF Solare Italia to F2i in 2019.
OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which United States and Canada
- of which Mexico
Europe
- of which Romania
- of which Russia
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
2020
935
235
1,544
(15)
207
660
521
99
83
(11)
(28)
394
(422)
129
109
(13)
46
4
(17)
(11)
(70)
-
2,734
2019
909
183
1,793
38
249
718
560
118
96
14
418
367
51
58
49
-
10
3
(4)
24
(125)
-
3,260
Change
26
52
(249)
(53)
(42)
(58)
(39)
(19)
(13)
(25)
(446)
27
(473)
71
60
(13)
36
1
(13)
(35)
55
-
2.9%
28.4%
-13.9%
-
-16.9%
-8.1%
-7.0%
-16.1%
-13.5%
-
-
7.4%
-
-
-
-
-
33.3%
-
-
-44.0%
-
(526)
-16.1%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers
managed by the power generation companies were reallocated to the End-user Markets Business Line.
Operating profit for 2020, including depreciation, amor-
gentina (for a total of €534 million) and to the impairment
tization and impairment losses in the amount of €1,913
losses on the assets of a solar panel production line of Enel
million (€1,328 million in 2019), decreased by €526 million
Green Power Italia (€65 million) and the CIS Nola plant (€15
compared with 2019, due mainly to the recognition of im-
million).
pairment losses on the CGUs of Mexico, Australia and Ar-
153
Integrated Annual Report 2020 CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2020
283
460
1,514
1,773
157
414
28
2019
240
765
1,055 (1)
1,744
189
274
26
4,629
4,293
Change
43
(305)
459
29
(32)
140
2
336
17.9%
-39.9%
43.5%
1.7%
-16.9%
51.1%
7.7%
7.8%
(1) The figure does not include €4 million regarding units classified as “held for sale”.
Capital expenditure increased by €336 million in 2020
the United States at wind farms (€306 million) and pho-
compared with the same figure for the previous year. More
tovoltaic plants (€90 million), partially offset by reduced
specifically, the change is attributable to:
capital expenditure at wind farms (€235 million) and pho-
› an increase of €459 million in capital expenditure in La-
tovoltaic plants (€100 million) in Mexico and at wind farms
tin America attributable mainly to photovoltaic plants
in Canada (€84 million), reflecting the construction of nu-
(€403 million), geothermal plants (€12 million) and wind
merous plants in 2019;
farms (€130 million), partially offset by a decrease in ca-
› a decrease of €305 million in capital expenditure in Iberia,
pital expenditure on hydroelectric plants (€71 million). The
mainly related to wind farms (€387 million), given that con-
increase in capital expenditure was concentrated in Chile
struction for most of the projects was completed in 2019.
and Brazil;
This was partially offset by increased capital expenditure
› an increase of €140 million in capital expenditure in Afri-
for photovoltaic and hydroelectric plants;
ca, Asia and Oceania related mainly to wind farms (€189
› a decrease of €32 million in capital expenditure in Europe,
million) concentrated in South Africa and India, which was
particularly in Greece (€98 million), as projects developed
partially offset by decreased capital expenditure for photo-
in 2019 became operational. This effect was partially offset
voltaic plants (€49 million), mainly in Australia and Zambia;
by increased capital expenditure for wind farms in Russia
› an increase of €29 million in capital expenditure in North
in the amount of €74 million.
America related mainly to increased capital expenditure in
154154
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Integrated Annual Report 2020
155
INFRASTRUCTURE
AND NETWORKS
156156
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 484.6
TWh
€7,433
million
€3,937
million
ELECTRICITY TRANSPORTED
ON ENEL’S DISTRIBUTION GRID
GROSS OPERATING
PROFIT
507.7 TWh in 2019
€8,278 million in 2019
CAPITAL EXPENDITURE
38.6% of total Group capex
Operations
ELECTRICITY DISTRIBUTION AND TRANSMISSION GRID
Millions of kWh
Electricity transported on Enel’s distribution grid (1)
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
2020
484,605
213,615
124,658
130,958
15,374
2019
507,738
228,143
126,608
137,296
15,691
End users with active smart meters (no.) (2) (3)
44,292,794
43,821,596
Change
(23,133)
(14,528)
(1,950)
(6,338)
(317)
471,198
-4.6%
-6.4%
-1.5%
-4.6%
-2.0%
1.1%
(1) The figure for 2019 reflects a more accurate measurement of amounts transported.
(2) To ensure a uniform comparison, the figure for 2019 has been adjusted on the basis of the new calculation method, which excludes digital meters with an active
contract that are not managed remotely.
(3) Of which 18.2 million second generation smart meters in 2020 and 13.1 million in 2019.
In 2020, electricity transported on the grid decline (-4.6%),
city distributed to high-voltage customers (-3.0 TWh)
due generally to the COVID-19 health emergency. The im-
and to other resellers (-0.2 TWh);
pact on the various geographical segments is described
› in Latin America (-4.6%), the change in volumes transpor-
below:
ted was seen mainly in Brazil;
› in Italy (-6.4%), the reduction in demand for electrici-
› in Europe (-2%), energy distribution declined in Romania
ty distribution concerned low-voltage customers for
in the business segment;
non-domestic uses (-5.7 TWh) as well as medium-voltage
› in Iberia (-1.5%), the decrease was essentially connected
customers (-5.6 TWh). Demand also declined for electri-
with the decline in demand.
AVERAGE FREQUENCY OF INTERRUPTIONS PER CUSTOMER
2020
2019
Change
SAIFI (average no.)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
1.7
1.4
4.5
5.4
1.5
5.6
2.6
3.4
1.9
1.4
6.0
5.8
1.6
6.8
2.8
4.1
(0.2)
-
(1.5)
(0.4)
(0.1)
(1.2)
(0.2)
(0.7)
-10.5%
-
-25.0%
-6.9%
-6.3%
-17.6%
-7.1%
-17.1%
157
Integrated Annual Report 2020 AVERAGE DURATION OF INTERRUPTIONS PER CUSTOMER
SAIDI (average min.)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
2020
2019
Change
42.0
74.5
839.0
678.8
171.2
466.6
419.4
134.5
48.5
75.8
1,214.1
728.8
184.1
666.6
418.9
169.6
(6.5)
(1.3)
(375.1)
(50.0)
(12.9)
(200.0)
0.5
(35.1)
-13.4%
-1.7%
-30.9%
-6.9%
-7.0%
-30.0%
0.1%
-20.7%
As shown in the tables above, service quality has improved
tina remains high, due in particular to faults in high-voltage
in all geographical segments, although the SAIDI in Argen-
transmission systems not operated by the Group.
Grid losses (average %)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
2020
2019
Change
4.9
7.1
18.9
13.4
5.2
7.6
8.8
9.2
4.7
7.5
15.5
12.8
5.0
7.7
8.2
9.7
0.2
(0.4)
3.4
0.6
0.2
(0.1)
0.6
(0.5)
4.3%
-5.3%
21.9%
4.7%
4.0%
-1.3%
7.3%
-5.2%
The variations in grid losses are stable in all geographical
economic crisis in the wake of the COVID-19 pandemic has
segments except in Argentina, where the worsening of the
produced an increase in fraud.
Performance
Millions of euro
Revenue
Gross operating profit
Ordinary gross operating profit
Operating profit
Capital expenditure
158158
2020
19,342
7,433
7,714
4,262
3,937
2019
21,789
8,278
8,228
5,277
3,905
Change
(2,447)
(845)
(514)
(1,015)
32
-11.2%
-10.2%
-6.2%
-19.2%
0.8%
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following tables show a breakdown of performance by
Region/Country in 2020.
REVENUE
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Eliminations and adjustments
Total
GROSS OPERATING PROFIT
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total
2020
7,488
2,617
8,821
647
5,649
1,229
601
695
396
393
(373)
19,342
2020
3,824
1,890
1,579
46
871
156
353
153
135
5
2019
7,647
2,724
11,033
1,166
6,946
1,467
641
813
386
60
(61)
Change
(159)
(107)
(2,212)
(519)
(1,297)
(238)
(40)
(118)
10
333
(312)
-2.1%
-3.9%
-20.0%
-44.5%
-18.7%
-16.2%
-6.2%
-14.5%
2.6%
-
-
21,789
(2,447)
-11.2%
2019
3,906
2,025
2,259
270
1,144
222
399
224
107
(19)
Change
(82)
(135)
(680)
(224)
(273)
(66)
(46)
(71)
28
24
-2.1%
-6.7%
-30.1%
-83.0%
-23.9%
-29.7%
-11.5%
-31.7%
26.2%
-
7,433
8,278
(845)
-10.2%
The gross operating profit decreased:
scount benefit (€269 million) following the signing of the
› in Latin America, and particularly in Brazil, due to the
5th Endesa Collective Bargaining Agreement, which led
lower volumes transported as a result of COVID-19 and
to the partial reversal of the provision;
the unfavorable exchange rate developments, as well as
› in Italy, due mainly to reduced margins recognized as a
in Argentina due to the effect of the recognition in 2019
result of a decrease in volumes transported as a result
of the Edesur settlement with the Argentine government,
of COVID-19 and to the indemnity received in 2019 in
which resolved reciprocal pending disputes arising from
relation to the sale of Enel Rete Gas (€50 million). The-
2006 to 2016 (€209 million);
se effects were partially offset by an increase in gains
› in Iberia, following the reduction in energy revenue due
for e-distribuzione as a result of the reimbursement of
both to a reduction in quantities sold and to the appli-
system charges and network fees based on Resolutions
cation of new remuneration parameters that went into
nos. 50/2018 and 461/2020 of the Regulatory Authority
effect for the 2020-2025 regulatory period, and to the
for Energy, Networks and the Environment (ARERA) (€158
recognition of provisions related to early retirement in-
million).
centive plans following the amendments made to the
agreement on the voluntary suspension or resolution of
The ordinary gross operating profit amounted to €7,714
employment contracts (€315 million). These effects were
million (€8,228 million in 2019) and reflected:
only partially offset by the change in the electricity di-
› costs incurred mainly in Italy and Brazil as a result of the
159
Integrated Annual Report 2020 COVID-19 pandemic for workplace sanitization activities,
› provisions for charges related to restructuring plans con-
personal protective equipment and donations (€50 mil-
nected with the energy transition in Colombia and Peru
lion);
(€7 million).
› costs related to digitalization in Spain (€224 million);
OPERATING PROFIT
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total
2020
2,370
1,140
696
(186)
433
108
253
88
52
4
2019
2,647
1,288
1,349
240
487
173
292
157
13
(20)
Change
(277)
(148)
(653)
(426)
(54)
(65)
(39)
(69)
39
24
-10.5%
-11.5%
-48.4%
-
-11.1%
-37.6%
-13.4%
-43.9%
-
-
4,262
5,277
(1,015)
-19.2%
In addition to the changes in gross operating profit for the
on receivables in Italy due, in part, to the effects of CO-
year discussed earlier, the decrease in operating profit in
VID-19 (€124 million) and the impairment losses on goodwill
2020, including depreciation, amortization and impairment
related to the Argentina CGU (€216 million), which was par-
losses in the amount of €3,171 million (€3,001 million in
tially offset by exchange rate developments in Brazil.
2019), was mainly due to an increase in impairment losses
CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
Europe
Other
Total
2020
1,966
631
1,156
182
2
3,937
2019
1,753
647
1,335
169
1
3,905
Change
213
(16)
(179)
13
1
32
12.2%
-2.5%
-13.4%
7.7%
-
0.8%
Capital expenditure increased by €32 million compared
ginning in February 2019;
with the previous year. The rise was mainly attributable to
› in Iberia by a reduction in capital expenditure for sub-
Italy, as a result of quality and remote control investments,
stations, transformers and the replacement of metering
and to Romania (€13 million) for activities connected with
equipment, and for software applications, partially offset
service quality and new connections.
This increase was partially offset:
by an increase in capital expenditure on the distribution
network.
› in Latin America, and particularly in Brazil, by a reduction
Capital expenditure on digital meters declined due to the
in capital expenditure as a result of unfavorable exchange
slowdown in the mass replacement of meters as a result of
rate developments and the freeze on rates imposed be-
the pandemic.
160160
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Integrated Annual Report 2020
161161
Integrated Annual Report 2020 END-USER
MARKETS
162162
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 298.2
TWh
€3,121
million
69.5
million
ELECTRICITY SALES
322.0 TWh in 2019
GROSS OPERATING
PROFIT
RETAIL
CUSTOMERS
€3,334 million in 2019
of which 23.2 million on free market
Operations
ELECTRICITY SALES
Millions of kWh
Free market
Regulated market
Total (1)
- of which Italy
- of which Iberia
- of which Latin America (1)
- of which Europe
2020
2019
Change
160,202
137,984
298,186
90,205
80,772
118,388
8,821
172,699
149,324
322,023
97,539
89,441
125,308
9,735
(12,497)
(11,340)
(23,837)
(7,334)
(8,669)
(6,920)
(914)
-7.2%
-7.6%
-7.4%
-7.5%
-9.7%
-5.5%
-9.4%
(1) Volumes include sales to large customers by generation companies in Latin America. The figure for 2019 has consequently been adjusted to ensure comparability.
In 2020, quantities sold decreased due mainly to a reduction
gency. The reductions in Italy and Spain were greater on the
in consumption tied to declining demand for electricity in
free market for business-to-business (B2B) customers.
nearly all countries as a result of the COVID-19 health emer-
NATURAL GAS SALES
Millions of m3
Business to consumer
Business to business
Total (1)
- of which Italy
- of which Iberia
- of which Latin America (1)
- of which Europe (2)
2020
3,640
6,076
9,716
4,429
5,022
155
110
2019
3,732
7,067
10,799
4,736
5,750
171
142
Change
(92)
(991)
(1,083)
(307)
(728)
(16)
(32)
-2.5%
-14.0%
-10.0%
-6.5%
-12.7%
-9.4%
-22.5%
(1) Volumes include sales to large customers by generation companies in Latin America. The figure for 2019 has consequently been adjusted to ensure comparability.
(2) The figures for 2019 reflect a more accurate measurement of volumes sold.
The decrease in quantities of gas sold in 2020 compared
Total retail customers of the Group number 69,517,932, of
with the previous year is mainly attributable to reduced
which 23,164,875 on the free market, while at December
consumption levels in Italy and Spain due mainly to the CO-
31, 2019 they numbered 70,471,612, of which 23,013,224
VID-19 pandemic.
on the free market.
163
Integrated Annual Report 2020 Performance (1)
Millions of euro
Revenue
Gross operating profit
Ordinary gross operating profit
Operating profit
Capital expenditure
2020
29,508
3,121
3,197
1,817
460
2019
32,599
3,334
3,334
2,210
449
Change
(3,091)
(213)
(137)
(393)
11
-9.5%
-6.4%
-4.1%
-17.8%
2.4%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
The following tables show a breakdown of performance by
Region/Country in 2020.
REVENUE (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Eliminations and adjustments
Total
2020
14,869
11,987
1,492
-
299
271
705
217
10
1,150
-
29,508
2019
16,042
13,867
1,559
30
404
293
777
55
-
1,131
-
Change
(1,173)
(1,880)
(67)
(30)
(105)
(22)
(72)
162
10
19
-
32,599
(3,091)
-7.3%
-13.6%
-4.3%
-
-26.0%
-7.5%
-9.3%
-
-
1.7%
-
-9.5%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
GROSS OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Total
2020
2,362
467
201
(7)
107
25
54
22
9
82
2019
2,314
715
292
3
154
41
66
28
(2)
15
Change
48
(248)
(91)
(10)
(47)
(16)
(12)
(6)
11
67
2.1%
-34.7%
-31.2%
-
-30.5%
-39.0%
-18.2%
-21.4%
-
-
3,121
3,334
(213)
-6.4%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
164164
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The decrease in the gross operating profit for 2020 is essen-
the free market (due mainly to a reduction in the ener-
tially attributable to:
gy profit margin as a result, essentially, of reduced sales
› a decrease of €248 million in gross operating profit in
in response to the COVID-19 pandemic) was offset by an
Iberia, which mainly reflects a decrease in quantities sold
increase of €75 million in gross operating profit on the
and reduced profit margins caused by efforts to respond
regulated market due to decreasing operating costs as a
to the continuing negative impact of COVID-19 on volu-
result, primarily, of the release of provisions for litigation
mes and demand. These effects were partially offset by
following favorable rulings and an increase in income re-
lower provisioning costs. The decrease in the margin also
sulting from the reimbursement of fraud-related matters.
reflects an increase in provisions for the voluntary termi-
These effects were partially offset by lower volumes sold
nation incentives program (€63 million);
as a result of the COVID-19 pandemic and a reduction in
› a decrease in gross operating profit in Latin America, due
customers.
mainly to the weakening of local currencies against the
euro, particularly in Brazil, and to the effect of the indem-
The ordinary gross operating profit came to €3,197 million
nity received by Edesur in 2019 (€24 million);
(€3,334 million in 2019). The extraordinary items concern
› an increase of €67 million in gross operating profit in Ro-
non-recurring costs due to COVID-19 for workplace sanitiza-
mania, due to the combined effect of increased revenue
tion activities, personal protective equipment and donations
as a result of higher average prices and lower provisio-
(€11 million), as well as charges related to direct and indirect
ning costs;
activities related to digitalization and the acceleration of the
› an increase of €48 million in gross operating profit in
energy transition (€65 million).
Italy, where the €27 million decrease in the margin on
OPERATING PROFIT (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Eliminations and adjustments
Total
2020
1,538
241
(22)
(44)
(39)
11
39
11
9
51
-
2019
1,609
491
126
(35)
49
30
59
23
(2)
(14)
-
Change
(71)
(250)
(148)
(9)
(88)
(19)
(20)
(12)
11
65
-
-4.4%
-50.9%
-
-25.7%
-
-63.3%
-33.9%
-52.2%
-
-
-
1,817
2,210
(393)
-17.8%
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to large
customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
Operating profit includes depreciation, amortization and
and impairment losses is mainly attributable to impairment
impairment losses in the amount of €1,304 million (€1,124
losses of trade receivables in Italy due to the deterioration in
million in 2019). The increase in depreciation, amortization
the collection status of customers as a result of COVID-19.
CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
Europe
Total
2020
310
139
-
11
460
2019
324
110
-
15
449
Change
(14)
29
-
(4)
11
-4.3%
26.4%
-
-26.7%
2.4%
The increase in capital expenditure is mainly attributable to
the acquisition of new customers. These effects were par-
Spain in relation to the capitalization of costs concerning
tially offset by lower contract costs in Italy.
165
Integrated Annual Report 2020 ENEL X
166166
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 105,237
2,794
thousands of units
6.0
GW
CHARGING
POINTS (1)
79,565 in 2019
LIGHTING
POINTS
2,424 in 2019
€152
million
DEMAND RESPONSE
CAPACITY
6.3 GW in 2019
+12.2%
GROSS OPERATING
PROFIT
€158 million in 2019
CAPITAL EXPENDITURE
compared with 2019,
for a total of €303 million
(1) The number of charging points including interoperable points was equal to about 186 thousand at December 31, 2020 and about 82 thousand
at December 31, 2019.
Operations
Demand response capacity (MW)
Lighting points (thousands of units)
Storage (MW) (1)
Charging points (no.) (2)
2020
6,038
2,794
123
2019
6,297
2,424
110
Change
(259)
370
13
105,237
79,565
25,672
-4.1%
15.3%
11.8%
32.3%
Includes storage-on-plant.
(1)
(2) The number of charging points including interoperable points was equal to about 186 thousand at December 31, 2020 and about 82 thousand at December 31,
2019.
In 2020, the Group further expanded the vehicle-charging
mainly in North America and Italy, while public charging
infrastructure. Private charging points increased by 21,033,
points increased by 4,639, primarily in Italy and Spain.
Performance
Millions of euro
Revenue
Gross operating profit
Ordinary gross operating profit
Operating loss
Capital expenditure
2020
1,121
152
161
(16)
303
2019
1,130
158
158
(98)
270
Change
(9)
(6)
3
82
33
-0.8%
-3.8%
1.9%
83.7%
12.2%
167
Integrated Annual Report 2020 The following tables show a breakdown of performance by
Region/Country in 2020.
REVENUE
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
GROSS OPERATING PROFIT
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Africa, Asia and Oceania
Other
Total
2020
324
244
218
7
20
68
75
48
192
53
55
156
(121)
1,121
2019
282
261
186
4
17
81
77
7
328
35
52
66
(80)
1,130
Change
42
(17)
32
3
3
(13)
(2)
41
(136)
18
3
90
(41)
(9)
2020
2019
Change
38
39
83
3
2
15
41
22
(10)
9
2
(9)
152
13
38
64
-
(1)
26
38
1
80
-
(1)
(36)
158
25
1
19
3
3
(11)
3
21
(90)
9
3
27
(6)
14.9%
-6.5%
17.2%
75.0%
17.6%
-16.0%
-2.6%
-
-41.5%
51.4%
5.8%
-
-51.3%
-0.8%
-
2.6%
29.7%
-
-
-42.3%
7.9%
-
-
-
-
75.0%
-3.8%
The gross operating profit decreased mainly as a result of
› in Italy, thanks to the positive performance of e-Home
the recognition in 2019 of an indemnity in the amount of
and Vivi Meglio products for energy and seismic upgra-
€98 million in North America in application of contractual
ding;
clauses related to the sale of eMotorWerks. This decrease
› in Other, where negative goodwill of €20 million was re-
was partially offset by an improvement in operating perfor-
cognized for Paytipper following completion of the pur-
mance in other countries, in particular:
chase price allocation process.
168168
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The ordinary gross operating profit came to €161 million
emergency and to other charges, in the amount of €7 mil-
(€158 million in 2019). The difference of €9 million compared
lion, connected with direct and indirect activities related to
with the gross operating profit is due to €2 million in non-re-
digitalization and the acceleration of the energy transition.
curring costs incurred in response to the COVID-19 health
OPERATING PROFIT
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe
Africa, Asia and Oceania
Other
Total
2020
(12)
(7)
71
3
(2)
14
40
16
(52)
3
(1)
(18)
(16)
2019
(45)
(13)
58
-
(4)
24
37
1
(50)
(3)
(5)
(40)
(98)
Change
33
6
13
3
2
(10)
3
15
(2)
6
4
22
82
73.3%
46.2%
22.4%
-
50.0%
-41.7%
8.1%
-
-4.0%
-
80.0%
55.0%
83.7%
Despite the decrease in gross operating profit, operating
in depreciation, amortization and impairment losses tota-
loss for 2020 improved essentially as a result of a decrease
ling €88 million, primarily in North America.
CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2020
2019
Change
70
50
67
36
5
3
72
303
52
64
40
61
4
1
48
270
18
(14)
27
(25)
1
2
24
33
34.6%
-21.9%
67.5%
-41.0%
25.0%
-
50.0%
12.2%
Capital expenditure increased primarily in Latin America
by decreased capital expenditure on storage distributed
in relation to the e-Bus project in Colombia; in Italy due
energy and demand response in the United States and on
to increased investment on public lighting and to develop
the e-Home business in Spain due mainly to a change in
the e-Home and Vivi Meglio businesses; and for Enel X Srl
business model and to a slowing of capital expenditure in
due to increased investment in ICT and the capitalization
response to COVID-19.
of personnel expenses. These effects were partially offset
169
Integrated Annual Report 2020 SERVICES
AND OTHER
170170
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Performance
Millions of euro
Revenue
Gross operating loss
Ordinary gross operating loss
Operating loss
Capital expenditure
The table below shows the financial performance by Re-
gion/Country in 2020.
REVENUE
Millions of euro
Italy
Iberia
Latin America
Europe
Other
Eliminations and adjustments
Total
GROSS OPERATING LOSS
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
2020
2,139
(237)
(83)
(444)
174
2020
749
480
13
24
1,103
(230)
2,139
2020
68
(94)
(88)
(3)
4
(124)
(237)
2019
2,229
(18)
(18)
(246)
179
2019
1,359
597
27
28
291
(73)
2,229
2019
169
66
(123)
-
5
(135)
(18)
Change
Change
Change
(90)
(219)
(65)
(198)
(5)
(610)
(117)
(14)
(4)
812
(157)
(90)
(101)
(160)
35
(3)
(1)
11
(219)
-4.0%
-
-
-80.5%
-2.8%
-44.9%
-19.6%
-51.9%
-14.3%
-
-
-4.0%
-59.8%
-
28.5%
-
-20.0%
8.1%
-
The increase in the gross operating loss in 2020 is mainly
of the 5th Endesa Collective Bargaining Agreement;
attributable to:
› Italy, in the amount of €101 million, as a result of a re-
› Spain, in the amount of €160 million, mainly related to a
duction in revenue from services and from customer
decline in revenue from services provided to other com-
contracts for other Group companies, only partially off-
panies of the Group; increased costs following the allo-
set by a reduction in service costs and personnel expen-
cation of provisions for the termination incentives pro-
ses. These factors are mainly attributable to the spin-off
gram as a result of changes introduced in the agreement
of the Global Procurement and Global Digital Solutions
on the voluntary suspension or resolution of employment
business units, which are now included in the aggregate
contracts; and restructuring costs related to the direct
“Other”, the gross operating loss for which decreased by
and indirect activities connected with the Group’s digita-
€11 million.
lization and energy-transition plans. These effects were
Also of note is the negative impact on margins of costs in-
partially offset by decreased costs related to the release
curred for the COVID-19 pandemic (€47 million), mainly in
of the electricity discount provision following the signing
Italy and Spain.
171
Integrated Annual Report 2020 The ordinary gross operating loss was €154 million smal-
donations, as well as charges related to direct and indirect
ler than the gross operating loss as a result of the non-re-
activities connected with digitalization and the accelera-
curring costs associated with COVID-19 for workplace
tion of the energy transition (€107 million).
sanitization activities, personal protective equipment and
OPERATING LOSS
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
2020
(1)
(140)
(90)
(6)
3
(210)
(444)
2019
17
19
(122)
-
3
(163)
(246)
Change
(18)
(159)
32
(6)
-
(47)
(198)
-
-
26.2%
-
-
-28.8%
-80.5%
The operating loss for 2020 is essentially in line with the
€21 million decrease in depreciation, amortization and im-
increase in the gross operating loss, taking account of the
pairment losses.
CAPITAL EXPENDITURE
Millions of euro
Italy
Iberia
Latin America
Europe
Other
Total
2020
2019
Change
33
27
3
-
111
174
78
46
9
1
45
179
(45)
(19)
(6)
(1)
66
(5)
-57.7%
-41.3%
-66.7%
-
-
-2.8%
Overall capital expenditure was broadly in line with that in
ment and Global Digital Solutions business units, which are
2019. The decrease in capital expenditure in Italy in 2020
now included under “Other”.
is mainly attributable to the spin-off of the Global Procure-
172172
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements ENEL SHARES
Enel and the financial
markets
Gross operating profit per share (euro)
Operating profit per share (euro)
Group profit per share (euro)
Group ordinary profit per share (euro)
Dividend per share (euro) (1)
Group equity per share (euro)
Share price - 12-month high (euro)
Share price - 12-month low (euro)
Average share price in December (euro)
Market capitalization (millions of euro) (2)
No. of shares outstanding at December 31 (millions) (3)
2020
1.65
0.82
0.26
0.51
0.358
2.79
8.57
5.23
8.17
83,110
10,167
2019
1.74
0.68
0.21
0.47
0.328
2.99
7.21
5.08
6.89
70,047
10,167
(1) Dividend approved by the Board of Directors on March 18, 2021 and proposed to the Shareholders’ Meeting of May 20, 2021 at single call. The amount includes
the interim dividend of €0.175 per share approved by the Board of Directors on November 5, 2020 and paid from January 20, 2021.
(2) Calculated on average share price in December.
(3) The number of shares includes 3,269,152 treasury shares in 2020 and 1,549,152 treasury shares in 2019.
Current (1)
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2018
Rating
Standard & Poor’s
Outlook
Moody’s
Fitch
Medium/long-term
Short-term
Outlook
Medium/long-term
Short-term
Outlook
Medium/long-term
Short-term
(1) Figures updated to January 29, 2021.
STABLE
BBB+
A-2
STABLE
Baa1
-
STABLE
A-
F2
STABLE
BBB+
A-2
POSITIVE
Baa2
-
STABLE
A-
F2
STABLE
BBB+
A-2
POSITIVE
Baa2
-
STABLE
A-
F2
STABLE
BBB+
A-2
STABLE
Baa2
-
STABLE
BBB+
F2
The global economic context in 2020 was strongly im-
market and domestic demand.
pacted by the COVID-19 pandemic and the consequent
In particular, the United States experienced a contraction
restrictions on mobility, production and services. All of this
of 3.5% in GDP and an increase in the unemployment rate
caused a worldwide recession of unprecedented severity
of over 8 percentage points, reaching the record levels re-
in recent history, leading to an estimated 4% contraction in
gistered during the 2008-2009 financial crisis. In response
world GDP on an annual basis in 2020.
to this recession, the government adopted major expansio-
The specter of the crisis prompted the world’s govern-
nary fiscal policies to support families and businesses.
ments to adopt accommodative fiscal and monetary mea-
In the euro area, the pandemic caused an estimated fall in
sures to support the various productive sectors, the labor
GDP of 6.8% and inflation stood at 0.3% on an annual basis
173
Integrated Annual Report 2020 in 2020, leaving many countries experiencing deflation. The
re distributed in 2019.
labor market, however, proved more resilient thanks to sub-
In relation to ordinary profit for 2020, on January 20, 2021
sidies from many governments.
an interim dividend of €0.175 was paid, while the balance
Both the Fed and the ECB intend to keep their main interest
of the dividend is scheduled for payment on July 21, 2021.
rates low until inflation stabilizes at around 2%. Furthermo-
re, in July the European Council reached an agreement on
The outlook for investors is changing rapidly: the changes
the Next Generation EU, a recovery plan that includes €750
taking place and the challenges the world presents us to-
billion in funding.
day are also impacting the way we invest. Companies are
As for Latin America, the pandemic crisis and the various
no longer seen as closed systems, but rather as open sy-
responses of individual governments have created a rather
stems that generate wealth through interaction with the
diverse macroeconomic picture.
environment and the communities in which they operate,
The world economic outlook for 2021 is more optimistic,
and towards which they are accountable.
albeit still burdened by the COVID-19 pandemic. Growth
In this context, Enel’s pursuit of a strategy that, through
projections will depend significantly on the development of
decarbonization and seizing the opportunities offered by
new vaccines and the speed of vaccination campaigns in
electrification, seeks to create value for customers, society
different countries.
and the environment has been understood and appreciated
by institutional investors, whose stake in Enel at December
The crisis has also impacted the financial markets. The main
31, 2020 reached an all-time high of 62.3% (compared with
European equity indices closed 2020 with losses. The Italian
60.3% at December 31, 2019), while the share of individual
FTSE-MIB index slipped 5.4%, the Spanish Ibex35 index de-
investors has fallen to a record low of 14.1% (compared with
clined 15.5%, and the French CAC40 index was down 7.1%.
16.1% at December 31, 2019). The interest of the Ministry
By contrast the German DAX30 rose 3.5%.
for the Economy and Finance was unchanged at 23.6%.
The number of Environmental, Social and Governance (ESG)
The euro-area Utilities sector (EURO STOXX Utilities) closed
investors continued to rise steadily: at December 31, 2020,
the year with an increase of 9.8%.
socially responsible investors (SRIs) held about 14.6% of
Finally, as regards the Enel stock, 2020 ended with a price
investors who have signed the Principles for Responsible
of €8.276 per share, an increase of 17.0% compared with
Investment represent 47.8% of share capital (43% at De-
share capital (against 10.8% at December 31, 2019), while
the previous year, outperforming both the European and
cember 31, 2019).
Italian sector indices.
At the end of 2020 Enel had a weight of 14.9% in the FT-
For further information we invite you to visit the Investor
SE-MIB and 21.7% in the EURO STOXX Utilities.
Relations section of our corporate website (http://www.enel.
On January 22, 2020 Enel paid an interim dividend of €0.16
app, which contains financial data, presentations, real-time
per share from 2019 profits and on July 22, 2020 it paid
updates of the share price, information on the composition
the balance of the dividend for that year in the amount of
of corporate bodies and the rules of Shareholders’ Meetin-
€0.168. Total dividends distributed in 2020 amounted to
gs, as well as periodic updates on corporate governance
€0.328 per share, about 17% higher than the €0.28 per sha-
issues.
com/investors) and download the “Enel Investor Relations”
174174
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Developments in ESG investors
134
132
150
10.3
10.5
7.7
8.0
8.6
5.9
160
11.3
8.6
244
19.1
14.6
169
182
13.7
14.1
10.5
10.8
2014
2015
2016
2017
2018
2019
2020
Investors
(no.)
Float
(%)
Share capital
(%)
We have also created contact centers for private investors (whi-
at azionisti.retail@enel.com) and for institutional investors (pho-
ch can be reached by phone at +39-0683054000 or by e-mail
ne: +39-0683051; e-mail: investor.relations@enel.com).
Performance of Enel share price and the EURO STOXX Utilities
and FTSE-MIB indices from January 1, 2020 to January 31, 2021
130
120
110
100
90
80
70
60
50
01/01
01/02
01/03
01/04
01/05
01/06
01/07
01/08
01/09
01/10
01/11
01/12
01/01
2020
Enel
EURO STOXX
Utilities
FTSE-MIB
Source: Bloomberg.
2021
175
Integrated Annual Report 2020 Pisa, Milan, Silicon Valley, Boston, Rio de Janeiro, Madrid,
Moscow, Santiago de Chile and Tel Aviv), they manage rela-
tionships with all the players involved in innovation activities
and are the main source of scouting for innovative startups
and SMEs. The Labs (among which those in Milan, Pisa, Ca-
tania, São Paulo, Haifa and Be’er Sheva are the most repre-
sentative) allow startups to develop and test their solutions
together with the Business Lines.
During 2020, thanks to the Group’s positioning in innova-
tive ecosystems and the consolidation of the Hub and Lab
network, more than 40 bootcamps were organized in dif-
ferent technological areas and startup scouting activities
expanded to two new areas (Canada and Australia). A new
FinSec Lab was opened in Be’er Sheva (Israel), thanks to
Enel X and Mastercard, and is aimed at the development of
early stage startups in the FinTech and cyber security fields.
All this has enabled Enel to meet more than 2,600 startups
and to launch more than 70 new collaborative relationships
despite the pandemic.
Every increasing importance is begin taken on by activities
to promote and develop the culture of innovation and en-
trepreneurship within the Company, working through the
Innovation Academies and the Innovation Ambassadors
project.
Furthermore, in 2020 the activities of the innovation com-
munities continued, involving different areas and skills wi-
thin the Company. Energy storage, blockchain, drones, aug-
mented and virtual reality, additive manufacturing, artificial
intelligence, wearables, robotics and green hydrogen are
the areas and technologies addressed within these com-
munities. In one example, in recent years Enel has intensi-
fied the use of drones in the monitoring and maintenance
of its assets, inspecting solar fields, wind farms, dams and
hydroelectric reservoirs, closed components in traditional
plants and distribution lines with the aim of increasing the
efficiency of operational and maintenance processes and
above all reduce workers’ exposure to risks. Furthermore,
storage systems, in addition to guaranteeing ongoing sup-
port for current business activities, pave the way to new
frontiers of sustainable business.
As of 2020, €111 million (including personnel expenses)
have been invested in innovation (R&D spending).
INNOVATION AND
DIGITALIZATION
For Enel, innovation and digitalization are key pillars of its
strategy to grow in a rapidly changing context while ensu-
ring high safety standards, business continuity and opera-
tional efficiency, and thus enabling new uses of energy and
new ways of managing it, making it accessible to an ever
larger number of people.
In particular, data management plays a fundamental role in
supporting the decision-making process with the develop-
ment and application of advanced analytics and in crea-
ting new synergies. Enel’s digital transformation is based
on pillars (assets, customers, people), enablers (platforms,
cloud, cyber security) and approaches to connect pillars
and enablers (agile, data-driven). Robotics, artificial intelli-
gence, cyber security, big data and the cloud are some of
the main areas in which Enel is investing, thus confirming
digitalization as one of the key dimensions of the 2021-
2023 Strategic Plan to support business development. The
digital strategy is moving towards maximizing margins and
reducing operating costs, to facilitate the energy transition.
Enel also operates through an Open Innovability® mo-
del, a consensus-based ecosystem that makes it possible
to connect all areas of the Company with startups, indu-
strial partners, small and medium-sized enterprises, rese-
arch centers and universities through a variety of system,
such as crowdsourcing platforms and the Innovation Hub
network. The Company has numerous innovation partner-
ship agreements that, in addition to Enel’s traditional lines
of business in the renewables and conventional generation
sectors, have promoted the development of new solutions
for e-mobility, microgrids, energy efficiency and the indu-
strial Internet of Things (IoT).
Enel’s innovation strategy leverages the online crowdsour-
cing platform (openinnovability.com) and a global network
of 10 Innovation Hubs (of which 3 are also Labs) and 22 Labs
(of which 3 are dedicated to startups), which consolidates
the new model of collaboration with startups and SMEs.
The latter offer innovative solutions and new business mo-
dels, and Enel makes its skills, testing facilities and a global
network of partners available to support their development
and possible scale-up. The Hubs are located in the most
important innovation ecosystems for the Group (Catania,
176176
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Intellectual
property
In 2020, Enel renewed and strengthened its commitment to
enable users to carry out supervisory, audit and perfor-
the enhancement and development of its intellectual assets
mance analysis activities;
as a source of competitive advantage for the Group.
› investments in networks for the management of smart
The value for the Group is not only expressed through the
meters, remote grid control and communication softwa-
growing investment in innovation activities but also in the
re;
inestimable wealth of knowledge and skills that its people ac-
› investments at Enel X in demand response systems;
quire as a result of the opportunity to be able to work daily in
› investments in power generation for predictive mainte-
a cutting-edge digital working environment.
nance systems;
This drive creates a clear cross-fertilization effect among the
› additional customizations of Group ERP (Enterprise Re-
Group’s personnel, which translates into an ability to generate
source Planning).
ideas within a model of diffuse innovation, open and attentive
to sustainability, and which can be summed up in the formula
The patent activity of the Group is also proving to be prolific,
of Open Innovability®.
involving as many as 837 applications for patents in 137 tech-
The models developed internally for strategic activities, such
nological families. Of these, 692 have been granted and 145
as those relating to trading in energy commodities and we-
are pending.
ather variables, or of a technical nature, such as predictive
The increase in the size of the entire portfolio of intellectual
maintenance at generation plants or customer-care platfor-
property rights held by the Enel Group corresponds to
ms, are an expression of this impulse towards innovation.
growing internal efforts to strengthen the information infra-
It is precisely in this perspective that Enel’s intellectual pro-
structure necessary for the immediate identification of the
perty is directed at the service of the Group’s leadership in
innovation generated, its evaluation and protection, as well
achieving the strategic objectives of decarbonization, electri-
as the ongoing monitoring of the portfolio’s evolution, with
fication and the creation of platforms.
a view to ensuring continuous and close alignment between
This innovative impulse is also reflected in the Group’s invest-
technological and commercial trajectories and correspon-
ment in intangible assets, which show a significant increase, in
ding forms of safeguarding the competitive advantage pro-
line with the strategic direction delineated above.
vided by intellectual property rights.
In this regard, the increase in investment in intangible assets
The Group also intends to continue to support and encoura-
is particularly evident, with special regard to IT and digital ap-
ge the development of its innovation model through specific
plications, whether legally protected or not. The investments
projects for internal dissemination by the Intellectual Proper-
focused on all the Group’s Global Business Lines and mainly
ty unit and through the creation of specific tools to identify,
concerned internally developed software (i.e. internal custo-
ascertain, protect and preserve on an iterative basis all in-
mization of software purchased externally). Among these, we
formation of value generated in Enel in accordance with the
highlight:
Open Innovability® model.
› the technological infrastructure of Paytipper, consisting
of an application bus into which peripheral interfaces de-
veloped to meet different operational needs are integra-
ted, with the goal of handling millions of financial tran-
sactions per day. Other monitoring and control modules
Integrated Annual Report 2020
177
PEOPLE
CENTRICITY
66,717. The contraction in the Group workforce reflects the
impact of the balance between new hires and terminations
during the period (-565) and the change in the consolida-
tion scope (a total of -971), which included the disposal of the
Reftinskaya GRES plant in Russia, the disposal of hydro plants
in the United States and the acquisition of Viva Labs.
People management and
development at Enel
In the tables below, the number and variation in employees by
gender, age group, job classification and geographical area
are analyzed. An analysis by Business Line is also provided for
the number of employees only.
The Enel Group workforce at December 31, 2020 numbered
YEAR-END WORKFORCE
Employees by gender:
- of which men
- of which women
Employees by age group:
- <30
- 30-50
- >50
Employees by level:
- senior manager
- middle manager
- office staff
- blue collar
Employees by geographical area
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
178178
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
%
%
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2020
66,717
52,346
78.5
14,371
21.5
66,717
7,289
10.9
36,355
54.5
23,073
34.6
66,717
2.1
17.4
53.8
26.7
66,717
29,800
44.7
9,781
14.7
19,838
29.7
4,966
7.4
1,639
2.5
693
1.0
2019
68,253
53,933
79.0
14,320
21.0
68,253
7,899
11.6
37,121
54.4
23,233
34.0
68,253
2.0
16.6
53.1
28.3
68,253
29,767
43.6
10,123
14.8
20,240
29.7
5,907
8.7
1,639
2.4
577
0.8
Change
(1,536)
(1,587)
-0.5
51
0.5
(1,536)
(610)
-0.7
(766)
0.1
(160)
0.6
(1,536)
0.1
0.8
0.7
-1.6
(1,536)
33
1.1
(342)
-0.1
(402)
-
(941)
-1.3
-
0.1
116
0.2
-2.3%
-2.9%
-0.6%
0.4%
2.4%
-2.3%
-7.7%
-6.0%
-2.1%
0.2%
-0.7%
1.8%
-2.3%
5.0%
4.8%
1.3%
-5.7%
-2.3%
0.1%
2.5%
-3.4%
-0.7%
-2.0%
-
-15.9%
-14.9%
-
4.2%
20.1%
25.0%
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements WORKFORCE BY BUSINESS LINE
No.
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
CHANGE IN WORKFORCE
Balance at December 31, 2019
Hirings
Terminations
Change in consolidation scope
Balance at December 31, 2020
BREAKDOWN OF CHANGES IN WORKFORCE
Hiring rate
New hires by gender:
- of which men
- of which women
New hires by age group:
- <30
- 30-50
- >50
New hires by geographical area
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
at Dec. 31, 2020
at Dec. 31, 2019
8,142
8,298
34,332
6,324
2,989
5,731
901
66,717
2019
5.5
3,726
2,702
72.5
1,024
27.5
3,726
1,865
50.1
1,698
45.5
163
4.4
3,726
1,042
28.0
430
11.5
1,098
29.4
528
14.2
435
11.7
193
5.2
9,432
7,957
34,822
6,336
2,808
6,013
885
68,253
68,253
3,131
(3,696)
(971)
66,717
-14.5%
-16.0%
-18.5%
-2.9%
-9.4%
7.6%
-16.0%
-26.9%
-13.2%
0.1%
19.3%
-58.3%
-50.0%
-16.0%
0.2%
18.9%
-40.2%
-28.7%
-9.7%
7.8%
-47.0%
-37.3%
-16.8%
-0.9%
2.1%
21.2%
179
Change
-0.8
(595)
(499)
-2.1
(96)
2.1
(595)
(502)
-6.6
2
8.8
(95)
-2.2
(595)
2
5.3
(173)
-3.3
(107)
2.3
(248)
-5.3
(73)
-0.1
4
1.1
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2020
4.7
3,131
2,203
70.4
928
29.6
3,131
1,363
43.5
1,700
54.3
68
2.2
3,131
1,044
33.3
257
8.2
991
31.7
280
8.9
362
11.6
197
6.3
Integrated Annual Report 2020 Turnover rate
Terminations by gender:
- of which men
- of which women
Terminations by age group:
- <30
- 30-50
- >50
Terminations by geographical area
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
6.0
3,696
3,001
81.2
695
18.8
3,696
547
14.8
1,273
34.4
1,876
50.8
3,696
1,011
27.3
599
16.2
1,393
37.7
299
8.1
313
8.5
81
2.2
7.1
4,820
3,766
78.1
1,054
21.9
4,820
626
13.0
1,867
38.7
2,327
48.3
4,820
1,607
33.3
254
5.3
2,103
43.6
369
7.7
392
8.1
95
2.0
(1.1)
(1,124)
(765)
3.1
(359)
-3.1
(1,124)
(79)
1.8
(594)
-4.3
(451)
2.5
(1,124)
(596)
-6.0
345
10.9
(710)
-5.9
(70)
0.4
(79)
0.4
(14)
0.2
-15.5%
-23.3%
-20.3%
4.0%
-34.1%
-14.2%
-23.3%
-12.6%
13.8%
-31.8%
-11.1%
-19.4%
5.2%
-23.3%
-37.1%
-18.0%
-
-
-33.8%
-13.5%
-19.0%
5.2%
-20.2%
4.9%
-14.7%
10.0%
Training and development
better time management by supporting the well-being of
people and their families.
In response to the COVID-19 emergency, Enel promptly in-
Growing automation and technological evolution open up
tervened with appropriate measures to ensure the safety
new scenarios for the Group and its people and are dri-
of personnel and at the same time activating flexible wor-
ving the need for new technical and professional expertise
king approaches for over 37,000 people in the countries in
and the simultaneous waning of other skills. In this context,
which the Group is present. This global-scale response was
the targeted reskilling and upskilling programs have the-
made possible by the flexible working experience gained
refore been strengthened, the former to learn skills and
in Italy since as early as 2016 and then gradually extended
expertise that enable people to fill new positions and ro-
throughout the Group and by the technological transfor-
les, while the latter involve the development of training and
mation launched in 2014, which led to the integration of
empowerment courses that enable employees to improve
digitalization into corporate strategy, making Enel the first
their performance in their job, increasing the skills available
utility company to fully operate in the cloud.
to them in their current position. In particular, Enel signed
The adoption of flexible working has also meant giving pe-
an agreement with the trade unions in December 2020 for
ople the tools they need to work from home, ensuring the
the implementation of an upskilling and reskilling training
circulation of information and the effective organization
plan in Italy, which includes over 40 training courses and
of activities. Initiatives were also launched to support the
the involvement of more than 20,000 people. The planned
transition to the new digital reality, promote a work culture
initiatives range from digital transformation for operational
based on autonomy, delegation and trust, and encourage
and commercial personnel, to job shadowing projects as
180180
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements an innovative learning method, passing through reskilling
development of new languages, also promoting the forma-
activities involving technical-professional and cultural skills.
tion of internal trainers (“train the trainer”). In 2020, more
External skilling initiatives were also undertaken, from the
than 2.7 million hours of training were provided, a slight in-
perspective of stewardship – responsible management of
crease compared with the previous year despite the fact
relations with Enel’s external stakeholders – which provide
that almost all training was delivered remotely due to the
for the accompaniment and growth of people outside the
COVID-19 pandemic. This was made possible by the up-
Company (institutions, external entities, suppliers) for the
grading of digital tools and the E-Ducation platform, which
acquisition of new skills. These include initiatives aimed at
ensured broad access to content and expanded the culture
female students in the last two years of high school in order
of digitalization for learning. The training courses covered
to promote a culture of STEM studies.
issues related to conduct, technical issues, safety, new skills
and digital culture.
Enel promotes training activities for its people as a key ele-
ment in ensuring their constant development. We have de-
Total Group training costs in 2020 amounted to more than
€18 million(1).
veloped career paths to foster the evolution of our talent,
the valorization of passions and personal aptitude and the
AVERAGE TRAINING HOURS PER EMPLOYEE
Average number of training hours
Average number of training hours by level:
- senior manager
- middle manager
- office staff
- blue collar
Average number of training hours by gender:
- men
- women
hrs/
person
hrs/
person
hrs/
person
hrs/
person
hrs/
person
hrs/
person
hrs/
person
2020
2019
Change
40.9
38.8
2.1
5.4%
31.9
41.4
35.7
51.4
40.4
42.7
58.4
44.9
29.6
49.6
39.7
35.0
(26.5)
-45.4%
(3.5)
-7.8%
6.1
1.8
0.7
7.7
20.6%
3.6%
1.8%
22.0%
In a rapidly changing work environment, accelerated by
the pandemic crisis, the Group has set itself the ambitious
goal of promoting digital sustainability in the coming years
Listening and improvement of
organizational well-being
through a series of training initiatives that illustrate all those
In light of the digitalization of relations as a result of the
technologies that enable our people to work and coexist
COVID-19 pandemic, the Listening Channel has undergo-
sustainably with the surrounding environment.
ne a review. Accordingly, in 2020 a project was launched
With regard to personal development activities, the quan-
to make direct involvement approaches more constant and
titative and qualitative Performance Assessment process
dynamic, for the definition of action plans aimed at impro-
in 2020 involved the various levels of Group personnel in a
ving organizational well-being. The Open Listening survey
fluid process. More specifically, 100% of eligible employees
was also launched. This interview is intended to help build
were involved in the 2019 Performance Evaluation Campai-
our future, with 70% of personnel responding. People were
gn, which was completed in July 2020. A review of the pro-
asked to imagine the future of work in the “new normal”
cess has been planned for the upcoming 2020 Campaign
era: from ways of working remotely to workspaces, new te-
– to be conducted between the 2020 and 2021 calendar
chnologies, psychological and physical well-being and new
years – that will enhance the specific features of individuals
models for the leadership of the future. Of total respon-
and leverage people’s talents and inclinations.
dents, 93.5% declared a high level of involvement (People
Engagement rate). In the course of 2021, global and spe-
(1) The cost calculation takes account of the specific training account in the New Primo system. This includes all external training costs and is currently the only form
of certified information on training costs available.
181
Integrated Annual Report 2020 cific action plans will be prepared for the various targets
through a global reporting process that measures the per-
populations identified.
Diversity and inclusion
formance of a comprehensive set of KPIs on all dimensions
for internal and external purposes. In particular, with regard
to gender, Enel has set itself two public objectives: to en-
sure equal representation of the two genders in the initial
stages of the selection processes (50% by 2021) and to in-
Enel’s commitment to promoting diversity and inclusion is a
crease the number of female managers and middle mana-
process that started in 2013 with the adoption of our policy
gers. In 2020, women represented 44% of people involved
on human rights, followed in 2015 by our global diversity
in the selection process, an increase on previous years (42%
and inclusion policy, published in conjunction with Enel’s
in 2019), while the number of female managers and middle
adoption of the Women’s Empowerment Principles (WEP)
managers increased by 6%.
promoted by the UN Global Compact and UN Women and
The steady increase in female managers in recent years
in line with the United Nations Sustainable Development
has been accompanied by a simultaneous increase in the
Goals. In 2019, the global workplace harassment policy was
Equal Remuneration Ratio(2) (ERR), which in 2020 was equal
published. It sets out the principle of respect for integrity
to 83.3%, a slight improvement on the 83.2% registered
and dignity of the individual in the workplace and addresses
in 2019 (equal to 82.4% on a unchanged euro exchange
the issue of sexual harassment and harassment connected
rate basis). These results are evidence of the management
with discrimination, the principles of which are delineated
actions taken to valorize the presence of women in top
in the Statement against Harassment in the Workplace.
positions, the effects of which will be fully appreciable in
Enel’s approach is based on the fundamental principles,
the medium/long term, taking due account of generational
enunciated in the diversity and inclusion policy, of non-di-
dynamics.
scrimination, equal opportunities and human dignity in all
The following table demonstrates Enel’s commitment to
its forms, inclusion and promoting work-life balance. The
diversity and inclusion, showing the proportion of disabled
application of this policy has enabled the development of
personnel or personnel belonging to protected categories,
global and local projects that focus on diversity in terms
the number of women in management positions and the
of gender, disability, age, nationality and disseminating the
ratio for basic salary and average remuneration between
culture of inclusion at all levels of the organization.
women and men.
The progress of D&I policies is monitored periodically
(2) ERR (Equal Remuneration Ratio) = fixed + variable remuneration of female managers/fixed + variable remuneration of male managers.
182182
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements DIVERSITY AND INCLUSION
Disabled personnel or personnel belonging the protected
categories
Women in management positions (1)
Ratio of base salary to remuneration
Ratio base salary women/men:
- senior manager
- middle manager
- office staff
- blue collar
Ratio base remuneration women/men:
- senior manager
- middle manager
- office staff
- blue collar
2020
2019
Change
3.3
3.3
-
-
3,825
3,602
223
6.2%
108.1
86.7
96.5
90.2
77.0
108.3
83.3
95.7
90.3
77.8
107.4
86.7
96.0
90.0
68.6
107.6
83.2
95.2
90.0
70.1
0.7
-
0.5
0.2
8.4
0.7
0.1
0.5
0.3
7.7
0.7%
-
0.5%
0.2%
12.2%
0.7%
0.1%
0.5%
0.3%
11.0%
%
no.
%
%
%
%
%
%
%
%
%
%
(1) The number of women in management positions was calculated considering the number of women managers and middle managers in line with the new KPI
“Increase the number of women managers and middle managers” of the 2020-2022 Sustainability Plan. Consequently, the corresponding value for the previous
period was restated.
Workplace health and
safety
our contractors, operational improvements and safety with
equipment, tools and processes.
Safety is closely integrated into tender processes, and we
closely monitor our contractors’ performance both upstre-
am with our qualification system and ongoing as the con-
Enel considers employee health, safety and general well-
tracts progress through numerous control processes and
being to be its most valuable asset, one to be preserved
tools such as the Supplier Performance Management (SPM)
both at work and at home. We are therefore committed to
system. During 2020, we further improved and integrated
developing and promoting a strong culture of safety that
the HSE Terms into all contracts. These are binding con-
ensures a healthy work environment and protection for all
ditions that companies must agree to when contracts are
those working with and for the Group. Safeguarding our
awarded. The document, unique for the Group, defines the
own health and safety and that of the people with whom
requirements regarding health, safety and significant envi-
we interact is the responsibility of everyone who works for
ronmental aspects that the contractor must comply with
Enel. For this reason, as provided for in the Group “Stop
and enforce with their subcontractors during the execution
Work Policy”, everyone is required to promptly report and
of works. In addition, during the year considerable impulse
halt any situation of risk or unsafe behavior. The constant
was given to the “Safety Supplier Assessment”, specific au-
commitment of us all, the integration of safety both in cor-
dits on safety issues to be undertaken at the suppliers’ pre-
porate processes and training, the reporting and detailed
mises and their worksites. The audits are performed during
analysis of all information, near misses, safety warnings,
the qualification phase for each new supplier in cases whe-
non-compliance, controls, rigor in the selection and mana-
re critical issues have emerged (severe or fatal injuries) or
gement of contractors, the sharing of experience and best
where the supplier has received a low SPM rating. In 2020,
practices throughout the Group as well as benchmarking
despite the COVID emergency, a total of 1,185 contractor
against the leading international players are all cornersto-
assessments were performed.
nes of Enel’s culture of safety. These values are part of the
SHE project, launched in 2018 and further strengthened
The following table reports the main workplace safety in-
in 2020.The project involves the Group’s people and sup-
dicators.
pliers with initiatives regarding safety, health and the en-
vironment. It is aimed at fostering continuous growth with
183
Integrated Annual Report 2020 Enel
Contractors
Total injuries
Enel
Contractors
Injury frequency rate (1)
Enel
Contractors
Fatal injuries
Enel
Contractors
Fatal injury frequency rate
Enel
Contractors
“High consequence” injuries (2)
Enel
Contractors
“High consequence” injury frequency rate
Enel
Contractors
millions
of
hours
millions
of
hours
millions
of
hours
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
2020
2019
Change
403.239
398.553
4.69
1.2%
125.264
129.069
(3.805)
-2.9%
277.975
269.484
210
75
135
0.521
0.599
0.486
9
1
8
0.022
0.008
0.029
23
3
20
0.057
0.024
0.072
292
116
176
0.733
0.899
0.653
7
1
6
0.018
0.008
0.022
19
3
16
0.048
0.023
0.059
8.491
(82.00)
(41)
(41)
(0.212)
(0.300)
(0.167)
2.00
-
2
0.004
-
0.007
4.00
-
4
0.009
0.001
0.013
3.2%
-28.1%
-35.3%
-23.3%
-28.9%
-33.4%
-25.6%
28.6%
-
33.3%
22.2%
-
31.8%
21.1%
-
25.0%
18.8%
4.3%
22.0%
(1) This index is calculated as the ratio between the number of injuries (all injury events including those with three or fewer missed days of work) and hours wor-
ked/1,000,000.
(2) Sum of:
-
-
-
injuries that at December 31, 2020 involved more than six months of absence from work;
injuries that at December 31, 2020 were still under investigation and are considered serious (initial prognosis > 30 days);
injuries classified as “life changing accidents” (LCA), regardless of the number of missed days of work connected with them.
In 2020, the injury frequency rate for Enel employees declined
The Enel Group has established a structured health mana-
to 0.599 injuries for every million hours worked (-33.4 compa-
gement system, based on prevention measures to develop
red with 2019), confirming the effectiveness of the safety stra-
a corporate culture that promotes psycho-physical health,
tegy and policies implemented in the Group. In 2020, 1 fatal
organizational well-being and a balance between personal
accident occurred in Brazil involving Enel Group employees,
and professional life. With this in mind, the Group conducts
and 8 fatal accidents involving contractors (5 in Brazil and one
global and local awareness campaigns to promote healthy
each in Italy, Spain and Colombia). The causes of these nine
lifestyles, sponsors screening programs aimed at preven-
fatal accidents were mainly associated with electrical inciden-
ting the onset of diseases and guarantees the provision of
ts. Also in 2020, 3 “high consequence” accidents occurred in-
medical services. More specifically, we have a policy for the
volving employees of the Enel Group, while 20 such accidents
prevention of local diseases and provide support in the event
involved contractors. They were mainly of a mechanical nature.
of diseases or accidents abroad. A smartphone application is
Training and awareness-raising activities concerning issues rela-
also available with travel information and guidelines on vac-
ting to the protection of health and safety are a key element of
cinations, while a new global insurance policy has been taken
the Group’s safety culture. A number of communication campai-
out for all employees traveling abroad. The Enel Group has a
gns were carried out during the year in areas of specific impor-
systematic and ongoing process for identifying and asses-
tance for the Company. At the same time, some 903,802 hours
sing work-related stress risks, in accordance with the “Stress
of training on safety issues were provided to Enel personnel.
at Work Prevention and Well-being at Work Promotion” po-
184184
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
licy, for the prevention, identification and management of
stress in work situations, also providing recommendations
aimed at promoting a culture of organizational well-being.
The Group also constantly monitors epidemiological and health
developments in order to implement preventive and protecti-
ve measures for the health of employees and those who work
with the Group, both locally and globally. Since the outset of the
COVID-19 emergency in February 2020, Enel has taken steps
to protect the health of all workers and ensure the continuity
of electricity supply to the communities in which it operates. A
global task force has been created, as well as local task forces
in each country where Enel is present, to monitor the progress
of the pandemic with dedicated indicators and immediately
take all necessary prevention measures. Given the persistence
of the COVID-19 emergency and its spread on a global scale,
at the end of 2020 a HSE Emergency Management unit was set
up within the Parent’s HSEQ department, with a focus on heal-
th, safety and environmental emergencies, with the objective of
integrating the HSE emergency management process into the
company organization and ensuring the integration and conti-
nuous alignment of strategy and the management of emergen-
cy events at the Business Line and Country level.
Since the beginning of the pandemic, new operating models
have been activated to minimize the risk of contagion and spe-
cific prevention protocols have been implemented, dynamically
adapting the activity plan and the measures defined in respon-
se to developments in the pandemic at a global level. All per-
sonnel whose jobs could be done remotely have been working
using flexible working arrangements since the beginning of the
emergency. For operational units (about 13,000 employees),
who necessarily work in the field, stringent measures to con-
tain the spread of the disease were applied through the division
of teams into smaller nuclei (elementary cells) and the adoption
of temporal and/or physical segregation measures. Stress te-
sts were conducted for critical infrastructures with the aim of
verifying their operation in various possible contagion scena-
rios. Information and training initiatives were launched for em-
ployees on the prevention measures to be adopted. Enel also
invited its suppliers on a global scale to take all actions deemed
appropriate to ensure the protection of the health of their wor-
kers and the limitation of the spread of the disease. Influenza
vaccination programs were implemented as a preventive health
measure in all the main countries in which Enel operates.
Responsible relations
with communities
Last year was marked by the health emergency, which had
sweeping socio-economic consequences at a global level.
The economic effects of the crisis have also increased vulne-
rability and inequality in the communities in which the Group
operates, but thanks to our strong and extensive roots in those
communities we have been able to identify measures to provi-
de immediate support to address health and socio-economic
emergencies. From Europe to Latin America, Asia, Africa and
Australia, the Enel Group implemented about 450 sustainabili-
ty projects as an immediate response in two main areas:
› containment of the health emergency with aid initiatives
for hospitals and people working on the front line;
› support for the economic revitalization of communities,
through programs to support food security, development
of micro-entrepreneurship, services for vulnerable custo-
mers and professional and educational distance training.
Our knowledge of specific local circumstances and con-
stant listening to the needs of stakeholders have also made it
possible to develop concrete responses to the new context
delineated by restrictions such as social distancing and tra-
vel bans and the multiplicity of economic, social and cultural
realities in which Enel operates and of which it is an integral
part in the operation of our assets. Specific initiatives have
focused on local socio-economic development plans, with
targeted solutions to stimulate economic recovery through
the development of local markets, specific services dedica-
ted to vulnerable customers and actions aimed at combating
energy poverty and ensuring social inclusion for the weakest
categories of the population by leveraging access to new te-
chnologies and circular economy approaches.
The continuous attention to social and environmental factors,
combined with the objective of contributing to the economic
and social progress of the communities, makes it possible to cre-
ate long-term value for the Company and for the communities in
which it operates, promoting a new balanced development mo-
del that leaves no one behind. This model has been incorporated
along the entire value chain: analyzing the needs of communities
right from the development phases of new activities; taking ac-
count of social and environmental factors in the establishment
of sustainable worksites; managing assets and plants to make
them sustainable development platforms to the benefit of the
territories in which they are located. Another development was
the extension of this approach to the design, development and
supply of energy services and products, helping to build increa-
singly sustainable communities.
In 2020, Enel developed over 2,100 projects with 8 million
185
Integrated Annual Report 2020 beneficiaries,(3) concretely contributing to the development
ation in its various forms (safety, savings, timeliness, quality,
and social and economic growth of local communities. The
earnings, revenue, flexibility) as a result of ever-greater inte-
projects to ensure access to affordable, reliable, sustainable
raction and integration with the outside world and the diffe-
and modern energy (SDG 7) have involved 9.8 million people
rent parts of the company organization. In 2020, we signed
to date,(4) those to foster the economic and social develop-
agreements with a total of more than 24,000 vendors.
ment of communities (SDG 8) have reached 3 million bene-
Vendor management involves three essential stages, whi-
ficiaries,(5) while initiatives to promote quality education (SDG
ch integrate social, environmental and governance issues:
4) have benefited 2.3 million people.(6)
the qualification system, the definition of general terms
A fundamental lever in implementing these projects is the
and conditions of contract, and the Supplier Performance
use of about 1,000 partnerships with social enterprises,
Management (SPM) system in the evaluation process. Enel’s
non-profit organizations, startups and institutions opera-
global vendor qualification system (with about 12,000 acti-
ting both locally and internationally that promote the deve-
ve qualifications as at December 31, 2020) enables us to
lopment of the territory through innovative and tailor-made
accurately assess businesses that intend to participate in
interventions. The search for social innovation ideas and solu-
tender processes through the analysis of compliance with
tions through the Open Innovability® ecosystem is constant,
technical, financial, legal, environmental, health and safety,
based on openness and sharing through various tools such
human and ethical rights and integrity requirements, repre-
as, for example, crowdsourcing platforms (openinnovability.
senting a guarantee for the Company. As regards the ten-
com) and the Innovation Hub network.
dering and bargaining process, Enel continued to introdu-
ce aspects related to sustainability in tendering processes,
The progress in terms of the Group’s contribution to achieving
with the introduction of a specific “K for sustainability” fac-
the United Nations Sustainable Development Goals (SDGs) has
tor, which takes account of environmental and social fac-
also enabled Enel to revise its 2030 goals, doubling the number
tors and supplier safety. Furthermore, specific contractual
of people it intends to benefit through projects to ensure qua-
clauses regarding sustainability are envisaged in all con-
lity education (SDG 4: target of 5 million beneficiaries by 2030)
tracts for works, services and supplies, including respect
and access to energy (SDG 7: target of 20 million beneficiaries
for and protection of human rights and compliance with
by 2030). The commitment to initiatives to promote long-la-
ethical and social obligations. The SPM system is designed
sting, inclusive and sustainable economic growth has also been
to monitor vendor services in terms of the quality, timeli-
confirmed (SDG 8: target of 8 million beneficiaries by 2030).
ness and sustainability of contract execution.
Furthermore, we continued working on those activities that
enable the ever-greater integration of environmental, social
and governance issues in the supply chain strategy, creating
shared value with vendors. These include meetings and in-
formation initiatives with contractors on sustainability issues,
with specific regard to safeguarding health and safety.
Sustainable supply chain
In addition to meeting certain quality standards, the services
of our vendors must also go hand in hand with the adop-
tion of best practices in terms of human rights and working
conditions, health and safety and environmental and ethical
responsibility. Our procurement procedures are designed to
guarantee service quality in full respect of the principles of
economy, effectiveness, timeliness, fairness and transparen-
cy. The procurement process plays a central role in value cre-
(3) Beneficiaries are the people for which a project is implemented. Enel only considers direct beneficiaries in the current year. The number of beneficiaries includes
the activities and projects carried out in all the areas in which the Group operates (for companies within the scope of the Non-Financial Statement, the number
of beneficiaries does not include companies accounted for using the equity method, Group foundations and non-profit organizations and companies operating
within the Build, Sell and Operate mechanism).
(4) Cumulative 2015-2020 figures for total number of SDG 7 beneficiaries to date.
(5) Cumulative 2015-2020 figures for total number of SDG 8 beneficiaries to date.
(6) Cumulative 2015-2020 figures for total number of SDG 4 beneficiaries to date.
186186
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The circular economy
rials throughout the life cycle: from production to installation,
to decommissioning of generation assets.
A concrete example of the Group’s circular approach is the
For Enel, the circular economy represents a strategic dri-
“Circular Smart Meter” project, which represents a virtuous
ver and a fundamental choice for achieving competitiveness
example of the application of the principles of the circular
objectives, both in economic terms and in terms of risk re-
economy in Global Infrastructure and Networks. As the plan
duction, and, at the same time, creating a fully sustainable bu-
to replace 32 million first generation meters in Italy moves
siness model to respond to the great global environmental and
forward, Enel has decided to transform their disposal into an
social challenges.
opportunity, using the material from the discontinued meters
The Group’s vision is based on five pillars, which act through
to build the new “Circular Open Meter”. To develop the device,
three main levers: design, methods of use and the closure of
a process for selecting and regenerating the polycarbonate
cycles.
from the discontinued meters was also developed, which in
For the result to be effectively transformative, the circular ap-
the future could also be extended to the other Country seg-
proach must inevitably embrace the entire value chain. For this
ments of the Group, where technically possible. In June 2020
reason, it has been implemented in all the Group’s activities,
the NMi Certification Body (Nederlands Meetinstituut) for the
acting both through the Business Lines, as regards techno-
MID (Measuring Instruments Directive) approved the use of re-
logies and business models, and through the Countries, as
generated plastic for the Open Meter, and the manufacture of
regards cross-sectoral synergies, collaborations and ecosy-
the initial lot of 30,000 Circular Open Meters began. Produced
stems. To this end, the main areas of activity address the fol-
with 100% regenerated plastic, the new meters minimize the
lowing aspects.
› Suppliers: the Circular Procurement strategy with sup-
pliers has been operational since 2018 to measure the
circularity of what we purchase, reward the most virtuous
environmental impact for the benefit of customers, the terri-
tory and the environment. More specifically, the new process
is estimated to have reduced CO2 emissions by 210 tons for
the first lot compared with the traditional process, using a life
and co-innovate to rethink assets and products together.
cycle assessment method. Furthermore, thanks to the rein-
› Assets: the Global Power Generation and Global Infra-
tegration of the waste material from the old devices (mainly
structure and Networks Business Lines are both re-
plastic) into the production process of the new Circular Open
viewing the value chain of the main projects they have
Meters, waste has also been reduced by an estimated 31.5
undertaken recently, such as smart meters, photovoltaics
tons. In percentage terms, 48% by weight of the new meters
and wind power, from a circular point of view and leve-
consists of regenerated materials, ensuring the virtuous ma-
raging their operational assets. Global Trading, bearing
nagement of their end of life, for which the recyclability and
in mind the specificities of the various assets involved,
reuse of materials (metals in addition to plastic) is estimated
is supporting this transition by extending its skills to the
at about 79% by weight.
areas of new materials and secondary raw materials.
› Customers: Enel X is marketing itself as an accelerator
of the circularity of its customers, both by continuously
measuring and improving its products and services and
by providing measurement and consulting services to cu-
stomers to increase their circularity.
Since the initial stages of adopting a circular approach, Enel
has placed a strong focus on measuring the environmental
and economic benefits of circularity, with the awareness that
a model that exceeds and, ideally, eliminates the consump-
tion of non-renewable resources must be measurable in or-
der to be not only sustainable but also economically compe-
titive. As part of the 2020 Capital Markets Day, for example, a
new circularity indicator was introduced for generation as-
sets, supplementing existing indicators on direct emissions.
This additional indicator photographs the evolution over the
years of the consumption of materials per MWh generated
on a whole life basis, measuring the consumption of mate-
187
Integrated Annual Report 2020 Product
as service
A business model in which the
customer purchases a service for
the company retains ownership
of the product, maximizing usage
and useful life.
E
S
U
R
A
L
U
C
R
I
C
Sharing
platforms
Systems for joint management
by multiple users of products,
goods or skills.
Extending
useful life
Approach to the design and operation
of an asset or product intended
to extend its useful life, such
as modular design, facilitated repair
or predictive maintenance.
Circular
inputs
Model of production and use based
in renewable inputs or inputs
from previous life cycles (reuse
and recycling).
L A R D E
U
C
S
I
G
N
R
I
C
E X T ENDING
U SEFUL
LIFE
|
|
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R
A
S
L
T
U
U
C
P
R
N
I
C
I
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|
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A
P
S
R
S
O
E
D
R
V
U
C
T
I
C
E
|
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C
W
Y
C
L
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LIFE
ES
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R IN G
O R MS
A
H
S
P L
F
T
A
V
A
L
U
E R E C O V
Y
R
E
New life
cycles
All solutions designed to preserve the
value of an asset at the end of its life
cycle thanks to reuse, regeneration,
upcycling or recycling, in synergy with
other pillars.
188188
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT
EVENTS IN 2020
Brindisi plant - Ash dispute
volving a number of officers of Enel Produzione SpA, as well
as certain third parties who are today owners of the land
With regard to the criminal investigation initiated by the
adjacent to the plant – formerly Enel’s – on which ash was
Public Prosecutor’s Office of the Court of Lecce in 2017
found.
concerning the use of fly ash in the cement industry, the
The alleged offenses are as follows: failure to restore the
Brindisi power plant was involved in a criminal investigation
site (Article 452-terdecies of the Italian Criminal Code) for
that resulted in the issue of a preventive seizure order that
a number of areas affected by the spillage of ash produ-
allowed operation of the plant subject to certain techni-
ced up to the 1980s by the Pietrafitta power plant and ash
cal requirements. The order also provided for the seizure
from other company plants, and other areas where conta-
of Enel Produzione assets and receivables in an amount of
mination with polychlorinated biphenyls (“PCBs”) was found
about €523 million. On August 1, 2018, the Lecce Public
associated with decommissioned mining equipment; envi-
Prosecutor lifted its seizure of the Brindisi plant, with the
ronmental pollution (Article 452-bis of the Criminal Code)
consequent termination of the judicial custody/administra-
connected with the PCB contamination, with respect to
tion of the facility and the restitution of the other seized as-
which Enel Produzione SpA was also charged with admi-
sets to Enel Produzione, on the basis of the report prepared
nistrative liability pursuant to Legislative Decree 231/2001.
by the experts appointed by the investigating magistrate at
In the summer of 2019, Enel Produzione SpA filed a petition
the Court of Lecce, which fully confirmed the appropriate-
for dismissal, which was accepted by the prosecutor for the
ness of the operation of the plant.
crime of environmental pollution, with consequent dismis-
However, the preliminary investigation is continuing both
sal of the charge pursuant to Legislative Decree 231/2001.
against the accused individuals and the company pursuant
A number of environmental associations filed an objection
to Legislative Decree 231/2001.
to the dismissal, and on February 21, 2020 a hearing was
On January 9, 2020, the original notices of the preliminary
held before the investigating magistrate, which ended with
hearing set for January 29, 2020 were received. Due to a
dismissal of the charges (May 28, 2020), which, in brief, ac-
number of irregularities in the notices, the hearing was ini-
cepted all of Enel’s defenses and confirmed the dismissal
tially postponed until April 8, 2020. However, owing to the
of any other possible charges – even if not brought by the
measures imposed to counter the COVID-19 pandemic, the
Prosecutor’s Office – relating to the possible health effects
hearing was again postponed until June 10, 2020 and then
caused by the presence of the ash.
again until November 20, 2020, as a result of the impossibi-
Accordingly, the criminal proceedings are continuing with
lity of conducting the argument phase with the necessary
sole regard to the crime of failure to restore the site, with
guarantees provided for in health and safety guidelines. This
respect to which in December 2019 the Enel Produzio-
hearing was also not held due to the persistence of the he-
ne SpA employees presented an application for a stay of
alth emergency. In any event, the Region of Puglia and the
proceedings with probation, consisting in the implemen-
City of Brindisi filed to join the proceeding as civil plaintiffs,
tation of a program agreed with the Prosecutor’s Office
the admissibility of which was discussed at the hearing of
for proportionate and fair restoration with respect to the
March 4, 2021. Following the discussion, the court did not
complaints filed against the defendants. The probation he-
issue a ruling and adjourned the hearing to April 21, 2021.
aring was held on October 29, 2020, when the investigating
Criminal proceedings connected with
Pietrafitta plant
With regard to the Pietrafitta thermal generation plant, the
Perugia Public Prosecutor had started an investigation in-
magistrate of the Court of Perugia granted the request for
probation. The hearing was then postponed to February 18,
2021, when the program proposed by Enel Produzione was
approved, setting a deadline of nine months for its execu-
tion.
189
Integrated Annual Report 2020 Connection to the grid of São
Gonçalo, the largest photovoltaic
plant in South America
agreement for the acquisition of Celg-D by Enel Brasil SA.
On April 26, 2019, Law 20468 was promulgated. With the
law, the state of Goiás fully revoked the tax relief referred
to above. On May 5, 2019, Celg-D filed an ordinary petition
On January 13, 2020 Enel Green Power Brasil Participações
and a request for a precautionary suspension against the
Ltda (EGPB) started operations to connect the 475 MW
state of Goiás to contest this law. On September 16, 2019,
section of São Gonçalo photovoltaic plant, located in São
the Court of the state of Goiás denied the petition for pre-
Gonçalo do Gurguéia, in Brazil’s northeastern state of Piauí,
cautionary relief, citing the absence of any danger in delay,
to the grid. The construction of the 475 MW section of the
a requirement for the granting of precautionary relief. On
solar plant involved an investment of around R$1.4 billion,
September 26, 2019, Celg-D filed an appeal (agravo de in-
equivalent to approximately $390 million. Once fully up and
strumento) before the Court of the state of Goiás against
running, the 475 MW section of the plant will be able to ge-
the decision denying the precautionary suspension, clai-
nerate over 1,200 GWh per year while avoiding the emission
of over 600,000 metric tons of CO2 into the atmosphere.
ming that the repeal of the tax credit law is unconstitutional
to the extent that these credits were established in accor-
Funac and the ICMS tax relief
dance with applicable law and constitute acquired rights.
As part of the same appeal proceeding, the state of Goiás
initiated an action to challenge the admissibility of the
Celg-D petition, which was granted on a preliminary basis
With Law 20416 of February 5, 2019, the state of Goiás
and subsequently challenged by Celg-D. On September 7,
shortened from January 27, 2015 to April 24, 2012 the pe-
2020, the state of Goiás submitted its reply to the precau-
riod of operation of the Funac fund (established with Law
tionary petition filed with the appeal.
17555 of January 20, 2012) and the tax benefit system (crea-
Moreover, the Brazilian association of electricity distribu-
ted with Law 19473 of November 3, 2016) that allowed Celg
tion companies (ABRADEE) had filed an action for a ruling
Distribuição SA to offset payment obligations in respect
on constitutionality with the Constitutional Court of Brazil
of the ICMS - Imposto sobre Circulação de Mercadorias
(Supremo Tribunal Federal) with regard to Laws 20416 and
e Serviços (tax on the circulation of goods and services).
20468. This was denied on June 3, 2020 with an individual
On February 25, 2019, Celg-D appealed the provisions of
Decision by the judge-rapporteur for lack of formal requi-
Law 20416 before the Court of the state of Goiás, filing a
rements. On June 24, 2020, the ABRADEE filed an appeal
writ of mandamus and an accompanying petition for a pre-
(agravo regimental) against that decision. On September
cautionary suspension, which was denied on a preliminary
21, 2020, the Supreme Court of Brazil, without going into
basis on February 26, 2019. Celg-D appealed this ruling
the merits of the case, rejected ABRADEE’s appeal for for-
and the Court of the state of Goiás allowed the appeal on
mal reasons and the proceeding was concluded. On Octo-
June 11, 2019. On October 1, 2019, the Court of the state
ber 15, 2020, ABRADEE filed an appeal against this decision.
of Goiás issued an order revoking the precautionary me-
asure previously granted in favor of Celg-D and, accordin-
gly, the effects of the law were restored as from that date.
Celg-D filed an appeal against this decision, claiming that
Hydroelectric concessions
the right to guarantee tax credits has both a legal and con-
Italian regulations governing large-scale hydroelectric con-
tractual basis and that, therefore, the actions that the state
cessions were recently modified by the “Simplifications De-
of Goiás has taken in order to fully suspend the application
cree” (Decree Law 135 of 2018 ratified with Law 12 of Fe-
of these laws are patently unfounded. On October 2, 2019,
bruary 11, 2019), which introduced a series of innovations
the appeal filed by Celg-D was denied. On November 21,
regarding the granting of such concessions upon their
2019, Celg-D challenged this decision before the Superior
expiry, or in the event of forfeiture or renunciation, and the
Tribunal de Justiça (STJ). On February 27, 2020, the Tribunal
valorization of the assets and works connected to them to
de Justiça (TJ) declared inadmissible the appeal by Celg-D,
be transferred to the new concession holder. This legisla-
which on May 5, 2020 appealed this decision before the STJ.
tion also introduced a number of changes in the matter
These proceedings are under way. It is important to note
of concession fees as well as an obligation to provide free
that the coverage of the Funac fund is provided for in the
power to public bodies (220 kWh of power for each kW of
190190
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements average nominal capacity of the facilities covered by the
concession).
In implementation of this national law and under specific
Enel reaches 65% stake in Enel
Américas
enabling authority, various regions (Lombardy, Piedmont,
On April 3, 2020, Enel announced its intention to increase
Emilia-Romagna, Friuli-Venezia Giulia and the Province of
its shareholding in its Chilean listed subsidiary Enel Améric-
Trento) enacted regional laws.
as SA by up to an additional 2.7% in order to reach the maxi-
In the view of the Company, both the national law and the
mum shareholding currently permitted under the bylaws of
regional implementing legislation violate Community princi-
Enel Américas, equal to 65%. To this end, Enel entered into
ples and constitutional principles such as property rights, the
two new share swap agreements (the “share swap tran-
principle of legal certainty, the principle of proportionality and
sactions”) with a financial institution. On May 28, 2020, fol-
legitimate expectations and the freedom of enterprise.
lowing the settlement of two share swap transactions en-
In particular, the rules do not expressly provide for the tran-
tered into in June 2019 with a financial institution, the stake
sfer of the business unit from the outgoing to the suc-
held by Enel SpA in Enel Américas amounted to 62.3%.
cessor concession holder, and also establish inadequate
Subsequently, on August 18, 2020, Enel SpA increased its
criteria for the valorization of the works to be transferred,
holding in Enel Américas to 65% of that company’s sha-
which threatens to create what is essentially a mechanism
re capital, following the settlement of the two share swap
for expropriation, in violation of constitutional principles.
transactions entered into in April 2020.
The provision for the payment of the new fee and the obli-
The above transactions are in line with the announced goal
gation to supply free electricity for the existing holders of
of the Enel Group to increase its shareholding in the Group
current concessions entails the introduction in the con-
companies operating in South America, thus reducing the
cession relationships of an unexpected and unreasonable
presence of non-controlling shareholdings.
element of significant financial imbalance, in clear violation
of the principle of reasonableness and proportionality of
the fee that constitutional case law has established must
be respected in the event that changes worsening the po-
sition of a party are introduced in the context of long-term
Early closure of Unit 2 of the Brindisi
plant is authorized
relationships.
On May 28, 2020, Italy’s Ministry for Economic Development
The government challenged a number of the regional im-
gave Enel the green light for the early closure of Unit 2 of the
plementing laws before the Constitutional Court, claiming
Federico II thermal power plant in Brindisi as from January
the violation of various constitutional principles.
1, 2021, following the Company’s request presented in Ja-
The Company participated in the aforementioned proce-
nuary 2020. This is the first of the plant’s four coal-fired ge-
edings before the Constitutional Court (in July 2020 in the
neration units set to be closed definitively. In line with Enel’s
proceeding involving the regional law of Lombardy and in
strategy to decarbonize its electricity generation mix and
February 2021 in the proceeding involving the provincial law
with the objectives of Italy’s Integrated National Energy and
of Trento and the regional law of Piedmont) and also chal-
Climate Plan, in recent months the Company has started
lenged the first implementing acts issued under the indivi-
the permitting process for the conversion of the site into
dual regional laws before the competent judicial authorities
a high efficiency gas-fired plant. This process is necessary
(Regional Administrative Court and Regional Water Resour-
to ensure the complete closure of the Brindisi coal plant by
ces Court) asking that they be declared void and raising the
2025, while also guaranteeing the security of the national
question of constitutional illegitimacy of both the national
electricity grid. In addition, Enel is developing projects for
law and the regional laws.
the installation of photovoltaic capacity within the site, as
The trade associations (Utilitalia and Elettricità Futura) also
part of the broader development initiative for the installa-
presented briefs in the context of the proceedings brou-
tion of new renewables capacity throughout Italy.
ght before the Constitutional Court by the government.
The early closure of Unit 2 of the Federico II plant in Brin-
In addition, other sector operators have proposed legal
disi is part of Enel’s commitment to the energy transition
actions against the implementing measures issued under
towards an increasingly sustainable model.
the individual regional laws, requesting that they be de-
clared void.
191
Integrated Annual Report 2020 The Enel Group accelerates the
closure of its last coal plant in Chile
methods and any listing on regulated markets or multila-
teral trading facilities, taking account of developments in
market conditions.
In line with its decarbonization strategy, the Enel Group clo-
sed Unit I of the Bocamina plant in January 2021 and expects
to close Unit II of the same plant by May 31, 2022, simulta-
neously planning the completion of 2 GW of renewables ca-
pacity in the country through Enel Green Power Chile. More
Enel included in MSCI ESG Leaders
Indexes for the first time
specifically, on May 28, 2020 Enel SpA announced that its
On June 17, 2020, Enel was included for the first time in the
Chilean subsidiaries Enel Chile SA and Enel Generación Chi-
MSCI ESG Leaders Indexes following the annual review carried
le SA had informed the market of the decision of their re-
out by the leading Environmental, Social and Governance (ESG)
spective Boards of Directors to expedite the closure of the
research and index provider MSCI of its sustainability indices.
Bocamina coal-fired plant located in Coronel. Specifically,
This capitalization-weighted index series provides exposure to
Enel Generación Chile asked the Chilean National Energy
companies with high ESG performance relative to their sector
Commission (CNE) to authorize the termination of opera-
peers. In addition, Enel has been confirmed in the prestigious
tions at Units I (128 MW) and II (350 MW) of the plant by the
FTSE4Good Index series and Euronext Vigeo Eiris 120 Indices.
scheduled dates. The closure, which is subject to that autho-
The indices, designed for institutional investors willing to
rization, has been accelerated compared with the original
integrate ESG factors into investment decision processes,
plans of Enel Generación Chile in the national decarboniza-
uses a best-in-class approach by only selecting companies
tion plan signed with the Ministry of Energy of Chile on June
with the highest MSCI ESG ratings, which measure a com-
4, 2019, a plan that provided for the closure of Bocamina I by
pany’s resilience to long-term, financially-relevant ESG ri-
the end of 2023 and of Bocamina II by 2040. The Enel Group
sks. In 2019 Enel received for the first time the highest MSCI
will ensure the re-employment of the workers at Bocamina
ESG rating (“AAA”), paving the way for the Company’s inclu-
within the Group, and at the same time will evaluate the pos-
sion this year in the MSCI ESG Leaders Indexes, the most
sible conversion of the plant’s structures.
prestigious among MSCI’s index series measuring compa-
Enel Board authorizes the issue of
hybrid bonds in the maximum amount
of €1.5 billion
On June 10, 2020, the Board of Directors of Enel SpA, me-
eting under the chairmanship of Michele Crisostomo, au-
thorized the issue by Enel, by December 31, 2021, of one
or more hybrid non-convertible subordinated bonds in the
maximum amount of €1.5 billion, to be placed exclusively
nies’ sustainability performance. In addition, the inclusion is
attributable to Enel’s continued investments in renewables
and to its ambitious carbon emissions reduction target ali-
gned with the Paris Agreement, under which the Company
commits to a 70% reduction in its direct greenhouse gas
emissions per kWh by 2030 with respect to 2017 levels.
Enel reaches 64.9% of the share
capital of Enel Chile
with EU and non-EU institutional investors, including throu-
On July 7, 2020, Enel SpA announced that it had increased
gh private placements. The new issues are intended to refi-
its stake in its Chilean subsidiary Enel Chile SA to 64.9% of
nance outstanding hybrid bonds for which early repayment
the company’s share capital, settling two share swap tran-
options may be exercised as from this year, thus allowing
sactions entered into in December 2019 with a financial in-
the Enel Group to maintain a financial structure that is con-
stitution to acquire up to 3% of the share capital of Enel
sistent with the assessment criteria of rating agencies and
Chile, as announced to the financial markets at the time.
to actively manage maturities and the cost of debt.
The Board of Directors has also delegated the Chief Execu-
tive Officer with the task of deciding the issue of the new
bonds and their respective characteristics, and therefore to
establish, for each issue, times, amount, currency, interest
Enel accelerates energy transition
towards decarbonization
rate and further terms and conditions, as well as placement
Enel, in its role as a leader of the energy transition, has pla-
192192
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements ced decarbonization and growth of renewables around the
world at the center of its strategy. The 2020-2022 Strate-
gic Plan provides for a significant increase in installed re-
newables capacity, from the current 46 GW to 60 GW at the
end of 2022, and the progressive reduction of coal-fired
capacity and generation. More specifically, it is expected
that such capacity will decrease by more than 40% in 2022
compared with 2019. In order to manage renewable and
thermal generation assets around the world in an integra-
ted manner and guide and accelerate its transformation,
Enel created a new Business Line in 2019.
In this context, on July 2, 2020 Enel began restructuring
the activities associated with the energy transition pro-
cess, which will involve thermal generation plants in all
the geographical areas in which the Group operates. The
consequent revision of processes and operating models
will require changes in the roles and skills of employees,
which the Group intends to implement with highly sustai-
nable plans based on redeployment programs, with major
upskilling and reskilling plans and voluntary individual early
retirement agreements that will involve around 1,300 peo-
ple worldwide.
The restructuring plan will be implemented with proce-
dures and timing that will differ in the various countries in
which we are present, initiating the appropriate dialogue
with local communities and the competent institutions and
social partners.
Enel launches sustainability-linked
share buyback program supporting its
2020 Long-Term Incentive Plan
On July 29, 2020, the Board of Directors of Enel, implemen-
ting the authorization granted by the shareholders at their
meeting held on May 14, 2020 and in compliance with the
terms disclosed to the market, approved the launch of a
share buyback program involving 1.72 million shares (the
“Program”), equal to about 0.017% of Enel’s share capital.
The purpose of the Program, which ran from September 3
to December 7, 2020, was to support the 2020 Long-Term
Incentive Plan for the management of Enel and/or its sub-
sidiaries pursuant to Article 2359 of the Italian Civil Code
(2020 LTI Plan), which was also approved by the sharehol-
ders at their meeting held on May 14, 2020.
The Program involved the purchase of a total of 1,720,000
Enel shares (equal to 0.016918% of share capital), at a volu-
me-weighted average price of €7.4366 per share for a total
of €12,790,870.154.
Considering the treasury shares already held in its portfolio,
on October 28, 2020, Enel holds a total of 3,269,152 trea-
sury shares, equal to 0.032156% of share capital.
Enel issues perpetual hybrid bonds
On September 1, 2020, Enel successfully launched a eu-
ro-denominated, non-convertible bond for institutional
investors on the European market in the form of a subor-
dinated perpetual hybrid bond, with an aggregate principal
amount of €600 million. The transaction was oversubscri-
bed by more than six times, with total orders of more than
€3.7 billion.
At the same time, Enel launched of a non-binding voluntary
offer to repurchase, and subsequently cancel, its £500 mil-
lion hybrid notes due in 2076 with the goal of repurchasing
a total of £200 million. As a result of the transaction, hybrid
bonds with a total nominal value of £250 million were re-
purchased in cash.
Enel Board of Directors votes to sell
40%-50% of OpEn Fiber to Macquarie
On September 17, 2020, the Board of Directors of Enel SpA
received notice of a binding offer submitted by Macquarie
Infrastructure & Real Assets (MIRA) for the acquisition of
the 50% stake held by Enel in OpEn Fiber SpA.
The offer provides for a price of about €2,650 million, net of
debt, for the purchase of the investment, with adjustment
and earn out mechanisms.
Enel’s Board of Directors acknowledged that it received
the notice and is awaiting updates on the details that may
emerge following an examination with MIRA of the details
of the offer.
On December 17, 2020, the Board of Directors of Enel SpA,
meeting under the chairmanship of Michele Crisostomo,
resolved to initiate the procedures for the sale of a stake of
between 40% and 50% of the share capital of OpEn Fiber
SpA to MIRA, giving the CEO specific authority to pursue
the transaction.
Based on MIRA’s final offer, the price for the sale of 50% of
OpEn Fiber is equal to €2,650 million and includes the tran-
sfer to MIRA of 100% of Enel’s portion of the shareholder loan
granted to OpEn Fiber, including accrued interest, amoun-
ting to an estimated €270 million at June 30, 2021, the date
by which the transaction is expected to close. Should 40% of
OpEn Fiber be sold, as MIRA’s final offer envisages a propor-
tional reduction of the above values, the price would amount
to €2,120 million, Enel’s portion of the shareholder loan gran-
ted to OpEn Fiber being transferred to MIRA would be equal
to 80%, with an estimated value at June 30, 2021 of around
€220 million. The above price does not include the poten-
tial effects of the earn-out mechanisms described below, as
they cannot currently be quantified.
193
Integrated Annual Report 2020 The final offer received from MIRA envisages that, should
the transaction close after June 30, 2021, the above price
will be increased at a rate of 9% per year calculated from
July 1, 2021 and up to the closing itself. The offer also pro-
Enel Group begins reorganization of
renewables business in Central and
South America
vides for the payment of two different earn-outs in favor of
On September 22, 2020, Enel SpA announced that the Bo-
Enel related to future and uncertain events. One earn-out is
ard of Directors of its Chilean listed subsidiary Enel Améric-
linked to the positive conclusion, with a final judgment, of
as SA had resolved to commence the process to approve
the dispute initiated by OpEn Fiber against TIM SpA for an-
a merger as part of a corporate reorganization of the Enel
ticompetitive conduct by the latter. Specifically, this earn-
Group’s shareholdings, with the intention of integrating the
out will pay Enel 75% of any net damages that OpEn Fiber
non-conventional renewable energy businesses of the Enel
should subsequently collect and is expected to be paid to
Group in Central and South America (except Chile) into Enel
Enel based on the dividends distributed by OpEn Fiber to
Américas. The transaction, consistent with Enel’s strate-
its shareholders for any reason. The earn-out will be calcu-
gic objectives, will further simplify the Group’s corporate
lated in proportion to the actual stake sold by Enel to MIRA.
structure and align the structure of Enel Américas’ busi-
The other earn-out is related to the creation of value de-
ness with the rest of the Group.
riving from the possible implementation of the so-called
The corporate reorganization provides for the integration
“single broadband network” between OpEn Fiber and TIM.
into Enel Américas of the current non-conventional re-
It is based on investor returns and envisages that, should
newable assets of the Enel Group in Argentina, Brazil, Co-
MIRA’s stake in OpEn Fiber be transferred, resulting in a
lombia, Costa Rica, Guatemala, Panama and Peru, through
return on investment (IRR) greater than 12.5%, Enel will be
a series of transactions culminating in a merger of those
paid 20% of the amount achieved by MIRA exceeding the
assets into Enel Américas. The merger, which will increase
above threshold, up to a maximum of €500 million should
Enel’s stake in Enel Américas, will also involve the amend-
50% of OpEn Fiber be sold and €400 million should 40% of
ment of the latter’s bylaws by its Shareholders’ Meeting to
the company be sold.
remove the existing limitation whereby a single shareholder
The signing of the purchase agreement between the par-
may not hold more than 65% of the voting rights. That Sha-
ties is subject to certain conditions, including:
reholders’ Meeting was also asked to approve the merger
› OpEn Fiber issuing an authorization to MIRA to share the
as a transaction with related parties in compliance with ap-
information acquired during the due diligence process
plicable Chilean law.
with a small number of potential co-investors in order to
Enel has given Enel Américas a favorable preliminary opi-
syndicate the price;
nion on the reorganization provided that it:
› the non-exercise of the right of pre-emption that the
› is carried out on market terms and conditions;
OpEn Fiber bylaws give CDP Equity SpA (CDPE, which is in
› ensures that Enel Américas has a financial position that
turn 50% shareholder of OpEn Fiber);
supports the future development of the renewables bu-
› in the event of the sale of 50% of OpEn Fiber, the agre-
siness and the growth prospects of the company.
ement between MIRA and CDPE of the modification of
The favorable preliminary opinion is subject to an asses-
certain aspects that currently regulate the governance of
sment by Enel of the final terms and conditions to be sub-
OpEn Fiber.
mitted for approval of the shareholders of Enel Américas.
The closing of the transaction is in turn subject to a series
On December 18, 2020, Enel SpA announced that the Ex-
of conditions, including:
traordinary Shareholders’ Meeting of the listed Chilean
› OpEn Fiber’s lending banks obtaining the waivers requi-
subsidiary Enel Américas had adopted resolutions on that
red for the transfer of Enel’s stake in OpEn Fiber to MIRA;
date concerning the implementation of the corporate re-
› obtaining various administrative authorizations needed
organization intended to integrate the non-conventional
for the transfer of Enel’s stake in OpEn Fiber to MIRA,
renewable business of the Enel Group in Central and South
specifically relating to the golden power procedure with
America (excluding Chile) into Enel Américas.
the Presidency of Italy’s Council of Ministers and the au-
On December 17, 2020, Enel announced that as part of
thorization to be issued by the EU Antitrust Authority.
the corporate reorganization intended to integrate the
non-conventional renewable energy business of the Enel
Group in Central and South America (excluding Chile) into
194194
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements the listed Chilean subsidiary Enel Américas SA, it would lau-
Socially Responsible Investors (SRI), allowing the Enel Group
nch a voluntary partial public tender offer for the acquisi-
to continue to diversify its investor base.
tion of the shares and American Depositary Shares (ADSs)
of Enel Américas representing up to a maximum of 10% of
its current share capital (the Offer), at a price of 140 Chilean
pesos per share (or its equivalent in US dollars at the time
of settlement in the case of ADSs). The Offer was launched
Enel signs contract for a €1 billion
“Sustainability-Linked Loan”
in March 2021 (for more details, please see note 55 to the
On October 16, 2020, Enel SpA signed a €1 billion “Sustai-
consolidated financial statements). The Offer is also subject
nability-Linked Loan” facility agreement with a 6-year term.
to Chilean, US and any other applicable regulations.
Structured as a club deal maturing on October 15, 2026,
As announced on November 13, 2020, the Extraordinary
the loan is intended to meet the Group’s ordinary financing
Shareholders’ Meeting of Enel Américas was called for
needs and follows the adoption by Enel of a “Sustainabili-
December 18, 2020 to resolve on (i) the merger of EGP
ty-Linked Financing Framework” (the Framework), aligned
Américas SpA into Enel Américas with a consequent in-
with the International Capital Market Association’s (ICMA)
crease in the share capital of Enel Américas in support of
“Sustainability-Linked Bond Principles” and Loan Market
the merger, and (ii) the amendment of the bylaws of Enel
Association’s (LMA) “Sustainability-Linked Loan Principles”.
Américas in order to remove the limits that currently do not
The loan is linked to the key performance indicator (KPI) of
allow a single shareholder to own more than 65% of shares
Installed Renewables Capacity Percentage (i.e., consolidated
with voting rights. The Offer is an opportunity for non-con-
installed renewables capacity as a percentage of total con-
trolling shareholders who wish to reduce their ownership
solidated installed capacity) and to the related achievement
interest in Enel Américas after the merger is completed. In
of a Sustainability Performance Target (SPT) equal to or grea-
this respect, the Offer provides shareholders an opportu-
ter than 60% by December 31, 2022 (as of June 30, 2020, the
nity to sell shares for more than the price of 109.8 Chilean
figure was equal to 51.9%). Based on the achievement of the
pesos per share that Enel Américas will offer in accordance
SPT by the target date, the credit line provides for a step-up/
with Chilean law to dissenting shareholders who intend to
step-down mechanism that will impact the interest spread
exercise their withdrawal rights. The Offer will not be laun-
applied to drawings on the line, thus reflecting the value of
ched if the merger of EGP Américas SpA into Enel Améric-
sustainability. The loan reflects the commitment of Enel, le-
as and the amendment of the bylaws of Enel Américas do
ading private electricity company in the world by installed
not take effect by December 31, 2021. The total price to be
renewables capacity, to contribute to the achievement of
paid under the Offer, which is expected to amount to up to
SDG 7.2, i.e. to “Increase substantially the share of renewable
€1.2 billion (calculated at the exchange rate prevailing on
energy in the global energy mix by 2030”.
December 16, 2020 of 895 Chilean pesos per euro), will be
funded through internally generated cash flow and existing
borrowing capacity.
Enel successfully launches a £500
million “Sustainability-Linked Bond”,
the first sterling-denominated bond of
its kind
Enel launches a consent solicitation
for holders of certain hybrid bonds
On October 23, 2020, Enel announced that it had launched
a consent solicitation addressed to the holders of a num-
ber of subordinated non-convertible hybrid bonds issued
by the Company in order to align the terms and conditions
of the bonds with those of the perpetual subordinated,
On October 13, 2020, Enel Finance International NV pla-
non-convertible hybrid bond launched by Enel on Septem-
ced the sterling market’s first “Sustainability-Linked Bond”,
ber 1, 2020. To this end, the Company called the Meetings
which is linked to the achievement of Enel’s sustainable
of the noteholders of the following bonds, with a total out-
objective for consolidated installed renewables capacity as
standing amount of about €1,797 million (the “Bonds”), at
a percentage of total consolidated installed capacity, in line
first and single call on November 26, 2020. On the same
with the commitment to achieving the United Nations Su-
date, the Noteholders’ Meetings approved the proposed
stainable Development Goals.
changes to the terms and conditions of the Bonds, aimed
The issue of £500 million (about €550 million), which is gua-
at aligning the latter with the terms and conditions of the
ranteed by Enel, was targeted at institutional investors and
perpetual subordinated non-convertible hybrid bond laun-
was oversubscribed by almost six times, with total orders of
ched by Enel on September 1, 2020. More specifically, the
approximately £3 billion and the significant participation of
approved changes establish, inter alia, that:
195
Integrated Annual Report 2020 › the Bonds, originally issued with a specified long-term
Chile Index for the fourth straight year, while Enel’s Chilean
maturity date, will become due and payable and hence
subsidiary Enel Chile has been confirmed in the three indi-
have to be repaid by the Company only in the event of
ces for the third time.
winding up or liquidation of the Company;
› the events of default, previously envisaged in the terms
and conditions and additional documentation that regu-
late the Bonds, would be eliminated.
Historic milestone for Enel taking top
spot in 2020 Dow Jones Sustainability
World Index
Enel recognized as world sustainability
leader among all industries in the 2020
edition of Vigeo Eiris Universe
On December 2, 2020, Enel’s global sustainability leader-
ship was acknowledged by a number one ranking in this
year’s Vigeo Eiris (V.E) assessment edition for its first time
ever among nearly 5,000 companies that have been asses-
On November 14, 2020, Enel’s global sustainability leader-
sed. The unprecedented score achieved in the sustainabi-
ship was acknowledged by a number one ranking in this
lity performance assessment, which doubles the average
year’s Dow Jones Sustainability World Index (DJSI World), an
score, led to Enel being confirmed in the 2nd Half 2020 re-
unprecedented milestone in the Company’s seventeen year
view of the Euronext Vigeo Eiris World 120 index. Powered
presence in the index. During the DJSI World selection pro-
by V.E’s data, twice a year, the Euronext Vigeo Eiris World
cess, Enel stood out in most of the 27 criteria assessed by
120 index lists the 120 most sustainable companies out of
SAM (the S&P Global Division in charge of ESG – environ-
the 1,500 largest companies in terms of free-float market
mental, social and governance – related research acquired
capitalization in North America, Asia-Pacific and Europe.
in 2020 from RobecoSAM, an affiliate of asset management
Enel has also maintained its position in the regional Euro-
firm Robeco).
next Vigeo Eiris Europe 120 and Eurozone 120 indices, whi-
Specifically, the Company achieved a score higher than
ch respectively list the 120 most sustainable companies out
90/100 in more than 70% of the criteria, among which
of the 500 largest free-float companies in Europe and the
some of the most significant ones are climate strategy and
euro area. Endesa, Enel’s Spanish subsidiary, has also been
market opportunities, both criteria aimed at assessing the
included in the latter three indices.
performance of electric utilities on leading the transition
In particular, V.E recognized Enel’s outstanding performance
towards a low-carbon energy model. Enel also ranks first
in the development of its environmental strategy, including
in DJSI Europe for the “Electric Utilities” sector and second
the specific environmental targets set out to limit greenhou-
globally in the overall family of Dow Jones Sustainability In-
se gas emissions and improving air quality, by accelerating
dices for the same sector.
the decarbonization of its energy mix and boosting re-
Enel also excelled in other criteria focused on assessing
newables. Enel also excelled in different criteria related to the
responsible business management practices including risk
management of its human capital, including the promotion
and crisis management, environmental policy and mana-
of labor relations, non-discrimination and diversity. Further-
gement, operational eco-efficiency, water-related issues,
more, different governance related practices also outstood,
human rights, human capital development as well as tran-
among which the role of the Board of Directors in the oversi-
sparency on social and environmental performance.
ght of the Company’s sustainability performance.
The Group’s Spanish subsidiary Endesa has also been inclu-
ded in this year’s DJSI World, marking the company’s twen-
tieth straight year in the index. Enel and Endesa are two of
the eight companies admitted to the index at the global
level in the electric utility sector. In addition, the Group’s
South American subsidiary, Enel Américas, has been con-
firmed in the Dow Jones Sustainability Emerging Markets
Enel Green Power and Maire
Tecnimont Group’s NextChem sign
MoU for a green hydrogen production
plant in the United States
Index and Dow Jones Sustainability MILA (Mercado Inte-
On December 9, 2020, Enel Green Power, acting throu-
grado Latinoamericano) Pacific Alliance Index for the third
gh its North American renewables subsidiary Enel Green
consecutive year, as well as in the Dow Jones Sustainability
Power North America Inc. (EGPNA), and Maire Tecnimont
196196
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements SpA, acting through NextChem, its subsidiary dedicated to
needs and timing envisaged for the completion of the con-
the deployment of technologies for the energy transition,
struction of units 3 and 4 of the Mochovce nuclear power
signed a memorandum of understanding to support the
plant (the “Project”). The disbursement of the first loan,
production of green hydrogen via electrolysis in the United
amounting to €270 million, is subject to certain conditions,
States. The project, which is expected to be operational in
in particular the amendment of certain loan agreemen-
2023, will convert renewable energy from one of EGPNA’s
ts between Slovenské elektrárne and its lender banks, in
solar plants in the United States into green hydrogen to be
order to take account of the progress of the Project, and
supplied to a bio-refinery.
other conditions customary for these kinds of transactions.
Enel Green Power is developing projects in the green hy-
The disbursement of this first loan is a condition for the ef-
drogen segment in Italy, Spain, Chile and the United States.
fectiveness of the additional amendments to the Contract
As green hydrogen is a new business application, the Enel
agreed between the parties and illustrated below. The loans
Group is monitoring the relevant market developments to
of up to €570 million come in addition to the loan of €700
identify the most efficient way to achieve its plans to grow
million (jointly referred to as the “Loans”) already made by
its green hydrogen capacity to over 2 GW by 2030.
the Enel Group in line with the agreements amending the
Enel updates agreement with EPH for
sale of stake in Slovenské elektrárne
Contract signed by the parties in 2018, whose maturity will
also be extended to 2032. The new agreement between the
parties also envisages that EPH will grant an additional loan
of €200 million to fund the Project.
With regard to the amendments related to the mechani-
On December 22, 2020, Enel Produzione SpA (Enel Produ-
sms governing the exercise of the put or call options, new
zione), EP Slovakia BV and Energetický a průmyslový hol-
rules have been introduced governing the so-called “trig-
ding AS (jointly EPH) had signed a general term agreement
ger events” under which Enel Produzione and EPH can
that modifies some of the terms and conditions of the con-
exercise their respective options. Specifically, the so-called
tract (the Contract) signed on December 18, 2015 (as alre-
“Long Stop Date” has been eliminated (the date after whi-
ady amended during 2018) between Enel Produzione and
ch Enel Produzione and EPH were entitled to exercise their
EPH concerning the sale of the stake held by Enel Produzio-
respective put and call options, even without completion
ne in Slovenské elektrárne AS (Slovenské elektrárne or SE).
of units 3 and 4 of the Mochovce nuclear power plant) and
As announced on December 18, 2015 and on July 28, 2016,
therefore the put or call options can be exercised after the
the Contract had provided for the contribution to the newly
latest of the following events:
established Slovak Power Holding BV (HoldCo) of the enti-
› six months from the date of completion of the trial run
re stake held by Enel Produzione in Slovenské elektrárne,
of Mochovce’s unit 4 (i.e., the moment in which that plant
equal to 66% of the latter’s capital, and governed the sub-
will be able to send power to the grid and sell the gene-
sequent sale of 100% of HoldCo in two stages to EP Slo-
rated electricity);
vakia BV for a total of €750 million, subject to adjustment
› the date of completion of the first outage of Mochovce’s
based on certain criteria (the first phase of the transaction
unit 4 (i.e., the mandatory annual technical shutdown
was completed on July 28, 2016 with the sale to EP Slova-
of the plant to ensure adequate safety levels), which is
kia of 50% of the share capital that Enel Produzione held in
expected to occur within a maximum of 12 months from
HoldCo).
the trial run; and
Under the new general term agreement, which is subject to
› the Loans fall due, set for 2032.
a number of conditions, Enel Produzione and EPH agreed
The new agreement also gives EPH an early call option that
a number of amendments to the Contract, which regard
can be exercised in the period between six months after
the financial support provided to Slovenské elektrárne for
the signing of the updated text of the Contract and the first
the completion of units 3 and 4 of the Mochovce nucle-
of the following dates:
ar power plant as well as the mechanisms governing the
› four years from the completion of the trial run of unit 4 of
exercise of the put or call options concerning the transfer
the Mochovce plant; and
of the residual stake in HoldCo. More specifically, with re-
› December 2028.
gard to the financial support, the amendments provide that
The total price of €750 million is subject to an adjustment
Enel Produzione will grant, directly or through other com-
mechanism, which will be calculated by independent exper-
panies of the Enel Group, loans to the HoldCo – which will
ts in accordance with a formula defined in the Contract, for
in turn make them available to Slovenské elektrárne – in
which the new agreement envisages a number of amend-
the maximum amount of €570 million falling due in 2032.
ments relating to the exclusion of part of the investments
These loans will be made available in accordance with the
planned for the completion of Mochovce’s unit 4 and set-
197
Integrated Annual Report 2020 ting the percentage of the unit 4’s enterprise value to be
as well as the dissemination of new mores of conduct and
considered depending on when the option is exercised.
the systematic and rigorous adoption of personal protecti-
Furthermore, in the event of the exercise of the so-called
ve equipment.
“early call option” from EPH, a floor and cap have been in-
The countries most severely affected were initially China,
troduced for the price – which will vary depending on when
Italy and Spain, gradually followed by the United Kingdom,
the option is exercised and the effective application of the
the other Central European countries, the United States
price determination formula – ranging from a minimum of
and the countries of South America (in particular Brazil and
€25 million and a maximum of €750 million.
Chile).
Finally, the new agreement envisages that when the options
Governments adopted numerous containment measures,
are exercised, EPH will take over the Loans. In the event of
essentially intended to restrict the free movement of peo-
the exercise of the early call option, EPH is expected to take
ple, such as selective lockdowns or the early closure of pu-
over the Loans according to a plan starting from 2026, with
blic places to limit crowds. Numerous regulatory measures
the last tranche expected in 2032 at the latest.
concerning essential services and public utilities have been
The above agreement led to a write-down of the carrying
implemented, which subsequent sections on the regula-
amount of the investment and the financial receivable from
tory frameworks adopted in the various countries for the
EPH in the total amount of €833 million.
different Business Lines address in more detail.
COVID-19
Already during the 1st Quarter, the Group had issued gui-
delines aimed at ensuring compliance with the measures
introduced at the local level and taken numerous steps to
adopt the most suitable procedures to prevent and/or miti-
The year 2020 was substantially characterized by the spre-
gate the effects of contagion in the workplace.
ad of the COVID-19 pandemic, with periods of greater
For further information, please see the sections on CO-
spread and mortality accompanied by the imposition of
VID-19 included in the “Performance of the Group” in this
drastic social isolation measures (lockdowns) and total or
Report on Operations and note 5 of the consolidated finan-
partial closure of all economic, social and sports activities,
cial statements.
198198
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements REGULATORY
AND RATE ISSUES
The European
regulatory framework
Recovery Plan
To contribute to the revitalization of the European eco-
nomy following the pandemic, the European Commission,
the European Parliament and European leaders agreed a
Recovery Plan to help the European Union emerge from
the crisis and build a greener, more digital and more resi-
lient post-COVID-19 Europe. The Plan has a total value of
more than €1,824 billion and provides for reinforcing the
multiannual financial framework for 2021-2027 by €1,074
billion to rapidly direct investment where it is most needed
(strengthening the Single Market, driving the green and di-
gital transition and intensifying cooperation in areas such
as health and crisis management) and establishes a new
instrument – Next Generation EU – worth a total of €750
billion, to temporarily (2021-2024) increase the resources
available in the EU budget and support an immediate re-
sponse to the crisis by kick-starting the European economy
through sustainable and resilient growth.
With particular regard to Next Generation EU, the most si-
gnificant resources are focused on the Recovery and Resi-
lience Facility, which provides for the allocation of €672.5
billion (€312.5 billion in the form of grants and €360 billion
in loans) to support investments and essential reforms for
a lasting recovery (with a focus on investments connected
with the green and digital transitions).
In this context, the Member States are called upon to pre-
pare National Recovery and Resilience Plans (NRRPs), whi-
ch must pursue the general objective of economic/social
cohesion and resilience, mitigate the impact of the crisis
and support the green and digital transition, in line with
the seven flagship areas(7) indicated in the guidelines pu-
blished by the European Commission in September 2020.
The NRRPs should be submitted by April 30, 2021 but many
Member States have already initiated discussions with the
Commission over draft plans (this was possible from Octo-
ber 15, 2020).
The European Green Deal
Following the European Green Deal communication presen-
ted at the end of 2019, in the 1st Half of 2020 the European
Commission published a series of legislative and non-legi-
slative initiatives aimed at implementing the principles set
out in the communication, which we discuss below.
European Climate Law
The proposal for a European Regulation, presented by the
Commission on March 4, 2020 and currently under discus-
sion in the Trilogue between the Commission, the European
Parliament and the Council, would make the objective set in
the European Green Deal to make the European economy
and society climate neutral by 2050 legally binding. This
means achieving net-zero greenhouse gas emissions (ba-
lance between emissions and absorption) for EU countries
as a whole, mainly by cutting emissions, investing in green
technologies and protecting the natural environment. Once
approved, this would incorporate the objective of climate
neutrality for 2050 in Union legislation for the first time.
The European Commission proposal also includes the goal
of reducing greenhouse gas emissions by 50-55% by 2030,
supported by the Commission’s Communication (and Impact
Assessment) of September 2020, a target that was also ap-
proved by the European Council in December 2020. A more
ambitious reduction target of 60% is currently being propo-
sed in the European Parliament.
To pursue this objective, the proposal for an EU Regulation
also provides that all European policies should be revised to
ensure they contribute to achieving climate neutrality and
the more ambitious intermediate target in 2030, so that all
sectors of the European economy do their part. By 2021,
the European Commission will propose a review of all policy
instruments necessary to achieve the additional reductions
planned for 2030.
Industrial Strategy
The new Industrial Strategy was presented on 10 March
2020. It is intended to maintain the global competitiveness
of European industry, make Europe climate neutral by 2050
and shape Europe’s digital future. The strategy proposes a
series of initiatives (legislative and non-legislative) to sup-
port all the players in European industry, from large to small
businesses, research centers and start-ups. Actions include
comprehensive measures to modernize and decarbonize
energy-intensive industries, to support sustainable and in-
telligent mobility industries, to promote energy efficiency
and to ensure a sufficient and secure supply of low-carbon
energy at competitive prices. The Industrial Strategy also
(7)
(i) Power Up; (ii) Renovate; (iii) Recharge and Refuel; (iv) Connect; (v) Modernize; (vi) Scale-up; (vii) Reskill and Upskill.
199
Integrated Annual Report 2020 envisages the launch of a series of new alliances, such as
apply to protect consumers, to address unfair commercial
the European Clean Hydrogen Alliance, to accelerate the
practices and to protect personal data and privacy.
decarbonization of industry and maintain industrial lea-
dership, followed by an alliance for low-carbon industries,
one for industrial clouds and platforms and one for raw
Sustainable and Smart Mobility Strategy
On December 9, 2020, the Sustainable and Smart Mobili-
materials. In addition to a complete series of actions, both
ty Strategy was presented by the European Commission
horizontal and in favor of specific technologies, the Com-
together with an action plan comprising 82 initiatives. The
mission will systematically analyze the risks and needs of
strategy lays the foundation for how the EU transport sy-
the various industrial ecosystems. In performing this analy-
stem will need to achieve its green and digital transforma-
sis, the Commission will work in close collaboration with an
tion and become more resilient to future crises. As indica-
open and inclusive industrial forum, which will be set up by
ted in the European Green Deal, the goal is to achieve a
September 2020.
Communication on “Shaping Europe’s digital
future”
On February 19, 2020, the Commission presented strate-
90% reduction in emissions by 2050, thanks to an intelli-
gent, competitive, safe, accessible and affordable transport
system. All modes of transport will need to become more
sustainable, with green alternatives widely available, which
is why the strategy sets specific milestones.
gies for data and artificial intelligence (AI). This communi-
By 2030, at least 30 million zero-emission cars will be on
cation introduces a series of legislative and non-legislative
European roads, 100 European cities will be climate-neu-
initiatives, with the aim of developing technology at the
tral and zero-emission marine vessels will be market-ready.
service of citizens and creating a fair and competitive di-
By 2035, zero-emission large aircraft will be market-ready.
gital economy. The areas involved in these initiatives are
Finally, by 2050, nearly all cars, vans, buses and new hea-
manifold: creation of digital skills, regulation of competition
vy-duty vehicles will be zero-emission, rail freight traffic
and platforms (through a proposal for a Digital Services Act)
will double and the multimodal trans-European Transport
and climate neutrality by 2050.
Network will be fully operational for sustainable and smart
In more detail, the aim of the data strategy is to ensure that
transport with high-speed connectivity.
the EU takes on the role of model and guide for compa-
nies made more autonomous thanks to data. The strategy
essentially aims to create a true European data space and
Hydrogen Strategy
The EU Hydrogen Strategy was presented on July 8, 2020.
a single market for data, in order to unlock so far unused
The strategy seeks to foster an integrated energy system in
data to enable their free movement within the European
which hydrogen plays a role in the decarbonization of indu-
Union in all sectors, thus benefiting businesses, researchers
stry, transport, construction and power generation across
and governments. The Commission proposes to establish a
Europe. The priority of the strategy, through investments,
regulatory framework for data governance, access to data
the creation of a suitable regulatory framework, the cre-
and reuse of data between businesses, between busines-
ation of a market and measures to support research and
ses and government and within government. The Commis-
innovation, is to develop renewable hydrogen, produced
sion intends to support the development of technological
using mainly wind and solar energy. In the short term, the
systems and the next generation of infrastructure, which
strategy also includes the use of other low-carbon forms
will allow the EU and all operators to take advantage of the
of hydrogen to rapidly reduce emissions and support the
opportunities offered by the data economy.
creation of a market. The strategy aims to support the in-
In the White Paper on Artificial Intelligence, the Commission
stallation of at least 6 GW of renewable hydrogen electroly-
called for a reliable framework based on excellence and
zers in the European Union and the production of up to 1
trust. In a partnership between the public and private sec-
million metric tons of renewable hydrogen between 2020
tors, the goal is to mobilize resources along the entire va-
and 2024, 40 GW of renewable hydrogen electrolyzers and
lue chain and create the right incentives to accelerate the
the production of up to 10 million metric tons of renewable
adoption of solutions based on AI. The document calls for
hydrogen between 2025 and 2030 and the large-scale de-
clear rules to govern high-risk AI systems without imposing
ployment of hydrogen-based solutions in all hard-to-de-
excessive burdens on less risky ones. The White Paper also
carbonize sectors from 2030.
underscores the fact that strict EU rules must continue to
200200
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements EU strategy on energy system integration
In conjunction with the Hydrogen Strategy, the EU strategy
acts, initially scheduled for the end of 2020, was postponed
to the early months of 2021. As regards the Green Bonds,
for energy system integration was also presented on July 8,
after the issue of the guidelines, a public consultation was
2020. The aim of the strategy is to transform today’s energy
held in June-October to support the Commission in asses-
system, in which each sector (transport, industry, gas, con-
sing certain key aspects relating to the Green Bond Standard.
struction) constitutes a separate silo, by creating new inter-
In the conclusions of the European Council meeting on De-
sectoral connections, exploiting technological advances in
cember 10 and 11, the leaders of the Member States called
order to achieve climate neutrality by 2050 in the most cost
on the EU to promote the development of common global
effective way. The strategy lists 38 actions to achieve this
rules for green finance. In this context, the Council invited
more integrated energy system and is based on three pil-
the Commission to present the legislative proposal on the EU
lars: a more circular energy system, centered on energy ef-
Green Bond Standard by June 2021 at the latest.
ficiency, accelerating direct electrification of end-user sec-
tors and the promotion of clean fuels, including renewable
hydrogen, biofuels and sustainable biogas in sectors that
are difficult to electrify.
Just Transition Fund
The Just Transition Fund (JTF) is a funding instrument inclu-
State aid decisions
On March 19, 2020 and as subsequently amended on April
3, May 8 and June 29, 2020, the European Commission
adopted a temporary framework for addressing the im-
ded within the Just Transition Mechanism (JTM), aimed at
pact of the COVID-19 pandemic in order to support Mem-
supporting Member States in reducing the economic and
ber States with regard to the use of State aid to provide
social impacts of the transition to a climate-neutral eco-
the necessary liquidity to the economic system, including
nomy. The total resources (2021-2027) at the Community
SMEs, to facilitate its application to all sectors and types of
level allocated to the JTF amount to €17.5 billion, of which
business affected by the crisis (with the exception of the fi-
€7.5 billion from the EU’s multiannual financial framework
nancial sector and for companies already in difficulty at the
for 2021-2027 and €10 billion from Next Generation EU.
end of 2019) and to help stabilize the European economy
The resources are allocated between the Member States
while preserving the single market.
by the Commission, and Italy would be eligible for about
On May 28, 2020, the European Commission approved a
€900 million, with just under €800 million going to Spain
support scheme for the generation of electricity in the Ca-
and Greece and about €2 billion to Romania (at 2018 pri-
nary Islands, Balearic Islands, Ceuta and Melilla within the
ces). The JTF will support workers, businesses and regional
State aid framework for the provision of services of general
authorities in the green transition and will finance a large
economic interest (SGEI).
number of initiatives, including the remediation and decon-
The Commission approved the scheme until the end of
tamination of brownfield sites, investments in renewables
2029 for the Canary Islands, Ceuta and Melilla and 2025
and energy efficiency, upskilling and reskilling, and sustai-
for the Balearic Islands. In order to ensure the long-term
nable mobility. The Member States are called upon to pre-
security of supply, Spain has undertaken to build a second
sent national transition plans that cover one or more terri-
subsea connection between the mainland and Majorca by
tories within the country that are most strongly impacted
2025. The mechanism will compensate electricity genera-
by the transition to a green economy.
Sustainable Finance
In March 2020, the Taxonomy Expert Group presented its final
taxonomy report and a guide on recommendations for a Eu-
ropean Green Bond standard. With regard to the taxonomy,
in June the European Parliament approved the EU taxonomy
regulation. The European Parliament’s approval followed the
adoption of the text by the Council on June 10, 2020. The
Commission must now adopt delegated acts on the Euro-
pean taxonomy that establish the technical screening cri-
teria for determining whether a specific economic activity
substantially contributes to achievement of one or more of
the EU’s environmental goals. The adoption of the delegated
tors fulfilling a public service obligation for the additional
cost of providing these services and ensure the establish-
ment of competitive procedures for the development of
new generation plants and/or decarbonized solutions.
On September 22, the Vice President of the European
Commission and Commissioner for Competition Margaret
Vestager announced a “Call for Contributions” on the role
of competition policy in supporting the objectives of the
European Green Deal. The document, which was sent to the
European Commission on November 20, 2020, concerns
the control of the State aid, antitrust and merger regula-
tions and the possible introduction of a “Green Bonus” for
measures supporting decarbonization.
On November 12, 2020, the European Commission publi-
shed the Impact Assessment on the revision of the guide-
201
Integrated Annual Report 2020 lines on State aid for environmental protection and energy
(Energy and Environmental State aid guidelines - EEAG).
On November 23, the Commission published a further ro-
admap for the revision of the Communication on Important
Projects of Common European Interest (IPCEI) in order to
develop the hydrogen industrial chain and the European
gigafactory.
Regulatory framework
by Business Line
Thermal Generation and Trading
On December 21, the European Commission published 11
Italy
templates relating to the rules governing State aid for the
seven flagship areas of the Recovery and Resilience Facility.
202202
Generation and wholesale market
For 2021, the Brindisi Sud, Sulcis, Portoferraio and Assemini
plants were declared eligible for the cost reimbursement
scheme. These plants had already been declared eligible for
reimbursement for 2020 as well.
The Porto Empedocle plant is eligible for long-term cost
reimbursement until 2025, while plants located on the
smaller islands are automatically eligible for cost reimbur-
sement for all years in which they are declared essential,
including 2020 and 2021. Admission to the cost reimbur-
sement scheme guarantees coverage of the operating co-
sts of the plants, including a portion of return on invested
capital.
For 2020 and 2021, the remainder of essential capacity
was contracted under alternative contracts which provide
for the obligation, on the Ancillary Services Market (ASM),
to offer to go up/down to prices no higher/lower than the
values identified using methods established by the Regu-
latory Authority for Energy, Networks and the Environment
(ARERA) for a fixed premium.
On June 28, 2019, the Minister for Economic Development
issued a decree approving the definitive rules governing
the capacity remuneration mechanism (the capacity mar-
ket). On November 6 and November 28, 2019 two auctions
were held with delivery in 2022 and 2023 respectively: Enel
was awarded capacity for both years. A number of opera-
tors and a sectoral trade association contested the decree
and the results of the two auctions before the Milan Regio-
nal Administrative Court. Two operators also challenged the
European Commission decision approving the Italian me-
chanism before the EU Court. Both proceedings are under
way.
ARERA has confirmed the transitional capacity payment
mechanism for 2020 and 2021 in order to ensure continuity
with the new capacity market, which will produce a financial
impact starting from 2022.
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements In 2020, ARERA, acting on a proposal from Terna, appro-
technical and financial parameters of the remuneration of
ved a pilot project for the forward procurement of a new
generation units in the electrical systems of the non-pe-
ultra-fast frequency regulation service (the “Fast Reserve”).
ninsular territories (NPT) for the second regulatory period
Contracts for delivery in 2023-2027 were awarded through
(2020-2025). With regard to fuel prices, the Order establi-
a tender. Enel was awarded contracts to supply this service.
shed that within three months the prices of energy pro-
ducts and logistics would be reviewed by the ministerial
In February 2020, Law 8/2020 (ratifying Decree Law
order, with effect from January 1, 2020. On August 7, 2020,
162/2019, the “Milleproroghe” omnibus extension act)
Decree TED/776/2020 of 4 August was published in Spain’s
was published. It contains provisions to activate the im-
Official Journal, revising these prices.
plementation of experimental configurations of collective
self-consumption from renewable sources or renewable
Law 5 of April 29, 2020 of the Autonomous Community
energy communities, pending the transposition of Directi-
of Catalonia
ve (EU) 2018/2001.
On June 2, 2020, Law 5 of April 29, 2020 of the Autonomous
Following this measure, in August 2020 ARERA issued Re-
Community of Catalonia concerning fiscal, financial and
solution no. 318/2020/R/eel, containing the provisions on
administrative measures in the public sector and the intro-
the regulation of economic items relating to electricity
duction of a tax on generation plants with impacts on the
subject to collective self-consumption or sharing in the
environment was published in Spain’s Official Journal. Among
scope of renewable energy community.
other aspects, this law includes the creation and regulation
The Ministry for Economic Development, by means of the Mi-
of a tax on structures affecting the environment within the
nisterial Decree of September 16, 2020, has therefore iden-
Autonomous Community of Catalonia. In particular, this new
tified the incentive rate for the remuneration of renewable
tax is levied on the production, storage, transformation and
source plants included in these experimental configurations.
transport of electricity. Electricity generation is taxed at a ge-
Iberia
Spain
neral rate of €5/MWh, and a dedicated rate of €1/MWh for
combined-cycle plants, while excluding hydroelectric plants
and generation from renewable sources, as well as from bio-
mass, biogas, high-efficiency cogeneration or sewage. With
regard to the transport of electricity, a quota is established
Remuneration parameters for generation from renewable
based on the voltage level, while transport structures with a
sources, cogeneration and waste
voltage of less than 30 kV and transport infrastructures for
The measure TED/171/2020 of February 24, 2020 updated
renewable power evacuation are exempted.
the remuneration parameters applicable to standard plants
and to certain plants for the generation of electricity from
Europe
renewable sources, cogeneration and waste for the second
regulatory period, with effect for both from January 1, 2020.
Romania
European Commission Decision C (2020) 3401
Electricity generation
on electricity production in Spanish non-peninsular
Following the entry into force of Regulation no. 943/2019/EU
territories (NPT)
and the expected transposition of Directive 2019/944/EU, the
On May 28, 2020, the European Commission approved the
prohibition on long-term bilateral negotiated contracts (PPAs)
regulatory scheme established with Royal Decree 738/2015
under Romanian law since 2012 was weakened following the
of July 31, 2015 regulating the production of electricity in
adoption of Government Emergency Ordinance 74/2020, whi-
the non-peninsular territories (NPT), concluding that it me-
ch allows new power generation facilities to sign long-term
ets the criteria for services of general economic interest
PPAs (more than one year) in order to secure financing for
and is compatible with the internal market. The regime is
construction.
initially applicable until December 31, 2025 in the case of
the Balearic Islands and until December 31, 2029 in the
Electricity management
case of the Canary Islands, Ceuta and Melilla with the pos-
During 2020, following Balancing Market reforms, the price
sibility of requesting an extension.
caps that link the closing market price of the Balancing Market
to the closing prices on the Day-Ahead Market were elimina-
Order to revise fuel prices in non-peninsular territories
ted. Furthermore, the dual pricing system will be replaced by a
(NPT)
single price, and the period relevant for settlement purposes
Order TEC/1260/2019 of December 26, 2019 revised the
will be changed from hourly to an interval of 15 minutes.
203
Integrated Annual Report 2020 Russia
Enel Green Power
Electricity and capacity markets
In January 2020, the Federal Antimonopoly Service establi-
Italy
The Ministerial Decree of July 4, 2019 provided for compe-
shed the rates for capacity and electricity provided under
titive procedures based on Dutch auctions and registers,
regulated contracts. For Enel Russia, the rate for the Nevin-
depending on the installed capacity and by technology
nomysskaya GRES plant is lower than that envisaged in the
groups, including photovoltaic systems. In particular, up to
2020 budget.
September 2021, seven procedures will be held with:
› Dutch auctions for plants with a capacity of more than
In March 2020, Enel Russia signed compromise agree-
1 MW;
ments with the North Caucasus guarantee suppliers to re-
› registers for plants with a capacity of less than 1 MW.
schedule the time limits for fulfillment of the electricity and
Unlike previous decrees, the Ministerial Decree of July 4,
capacity payment obligations under the wholesale market
2019 provides for a new method for supporting renewable
contracts accumulated before January 1, 2020, subject to
sources through two-way contracts for differences under
the payment of interest at the reference interest rate set by
which the successful tenderer returns any positive diffe-
the central bank.
Latin America
Chile
rences between the zonal price and the auction price.
At October 31, 2020 the indicative annual cumulative cost
was around €5.3 billion, compared with a ceiling of €5.8 bil-
lion for termination of the incentive mechanism.
Iberia
Rate revision - Introduction of a transitional electricity
price stabilization mechanism
On November 2, 2019, Law 21.185 of the Ministry of Energy
Spain
Royal Decree Law 23/2020 provided an important impetus to
was published. It introduced a transitional electricity price
accelerate the development of renewable energy in Spain. It
stabilization mechanism for customers on the regulated
established the legal basis for auctioning power generated
market. Consequently, the prices to be charged to regula-
from renewable sources based on the long-term price of
ted customers in the 2nd Half of 2019 were set at the level
electricity. It also regulated various aspects to improve ma-
of those applied in the 1st Half of 2019 (Decree 20T/2018)
nagement and reduce speculation in managing the access
and were defined as “Stabilized Prices for Regulated Cu-
and connection of renewable energy projects to grids. In par-
stomers” (PEC).
ticular, it established that at sites where coal or thermonucle-
Between January 1, 2021 and the termination of this mecha-
ar power plants have been closed, account can be taken of
nism, the prices charged will be those set every six months
environmental and social criteria, as well as technical criteria,
on the basis of Article 158 of the Electricity Act and cannot
in allocating grid access capacity. Finally, the royal decree
exceed the PEC adjusted for consumer price inflation.
proposes various improvements for faster administrative
Any differences between the amount billed in application
processing of renewable energy projects.
of the stabilization mechanism and the theoretical bill de-
termined on the basis of considering the price that would
In 2020, the Spanish government worked to define a road-
have been applied under the terms of contracts with the
map for hydrogen and a storage strategy.
various electricity distribution companies will be recogni-
In the closing months of the year, various regulations gover-
zed by generators as receivables for invoices to be issued,
ning auctions were also approved, including a royal decree
up to a maximum of $1,350 million until 2023. These diffe-
for renewable energy auctions (Royal Decree 960/2020)
rences will be recognized in US dollars and will not accrue
and a ministerial decree governing auction procedures and
interest until the end of 2025. Any imbalances in favor of
establishing an indicative calendar (Ministerial Decree TED
the generation companies will have to be recovered no la-
1161/2020), while, finally, a 3,000 MW auction was announ-
ter than December 31, 2027.
ced for January 2021.
During the year, proposals were submitted for regulations
governing grid access and connection for the generation of
204204
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements electricity from renewable sources. In December, a new royal
The guide was published to take account of construction
decree concerning access and connection was published
and supply chain delays caused by the COVID-19 emergency.
(Royal Decree 1183/2020). This regulation will be completed
Eligible wind projects that began construction in 2016 can
in January 2021 with the approval of a circular by the National
now be put into service until 2021, receiving 100% of the PTC
Commission on Markets and Competition. The entire access
(for example, $25/MW, adjusted annually for inflation) for the
and connection regulatory package will be completed in the
first 10 years of operation. Projects that started construction
1st Quarter of 2021 with the approval of the Detailed Speci-
in 2017 can now be put into service until 2022, receiving 80%
fications of technical criteria. It will grant greater access ca-
of the PTC (for example, $20/MW, adjusted annually for infla-
pacity to grids for renewable generation and establish rules
tion) for the first 10 years of operation.
improving management of the system.
Europe
Greece
Following approval by the European Commission, the Mini-
In December 2020, the US Congress approved and President
Trump signed a two-year extension of the Investment Tax
Credit (ITC) for investments in Section 48 solar systems and a
one-year extension of Section 45 of the PTC for investments
in wind farms.
ster of Energy extended the remuneration regime for inter-
Eligible solar projects can now receive an Investment Tax
ruptibility services until September 30, 2021. Interruptibility
Credit of 26% of the project capital costs if they start con-
is a demand response service willing industrial consumers
struction before January 1, 2023 and enter service before
interrupt their consumption when required, in exchange for
January 1, 2026. Eligible projects that begin construction be-
a fee fixed by auction. The scheme is financed by all gene-
fore January 1, 2024 and enter service before January 1, 2026
rators operating on the mainland, including EGPH, through
can receive an ITC of 22% of the capital costs of the project.
the transfer of a percentage of their revenue. The percen-
Eligible wind projects can now receive 60% (i.e. $15/MWh) of
tage applied differs depending on the generation techno-
the PTC (adjusted annually for inflation) for the first 10 years
logy used: wind = 1.8% (previously 2%), small hydro = 0.8%
of operation if construction begins before January 1, 2022.
(previously 1%), PV = 3.6% (no change).
Wind farms have no statutory deadline for entering service
Law 4759/2020 published in December 2020 introduced
but, as discussed above, US Treasury Department guidelines
measures to reduce the deficit of the renewable energy re-
generally dictate that projects must start operation within
muneration fund, which finances incentives for producers.
four years of starting construction. A project that started
These measures include a retroactive contribution of 6% of
construction in 2020 is therefore expected to enter servi-
the 2020 annual turnover of renewable energy generators,
ce before January 1, 2025, and a project that begins con-
which will only apply to renewables plants that entered ser-
struction in 2021 is expected to enter service before January
vice 2015. Electricity sellers are required to pay a levy of €2/
1, 2026.
MWh for power purchased in 2021.
The decision of the Regulatory Authority for Energy (RAE)
Africa, Asia and Oceania
no. 1538/2020 published in December 2020 set the UOCC
contribution for 2021 at €0.325/MWh, slightly lower than
the previous year (in 2020 it was €0.326/MWh). This rate
South Africa
In August 2020, the Risk Mitigation Independent Power
applies to monthly revenue from the electricity generation
Producer Procurement Program (RMIPPPP) was launched,
of all renewable and cogeneration units in operation and
an auction for the development of 2,000 MW of capacity,
serves to cover the operating and investment costs of DA-
which should enter service by June 2022. In the event of an
PEEP, the Greek operator responsible for the management
award to Enel Green Power, the payments for the electricity
of incentives for renewable generation and the issue of
generated, for capacity and for ancillary services will have a
guarantees of origin.
North America
positive impact on Enel Green Power’s results.
A further procurement auction for 11,813 MW (of which
6,800 from renewable sources) under the long-term ener-
United States
In May 2020, the United States Treasury Department amen-
gy development plan (Integrated Resource Plan - IRP 2019)
was approved by the regulator NERSA in September 2020
ded the administrative guidelines for section 45 of the
and is expected to take place in 2021.
Production Tax Credit (PTC) for investments in wind plants,
granting eligible projects two more years to enter service
From October 2020, municipalities (which together with
and maintain eligibility under the “continuity requirement”.
Eskom are South Africa’s electricity distributors) have been
205
Integrated Annual Report 2020 able to purchase power directly from renewable energy
producers and no longer only from Eskom. This change in
the rules improves Enel Green Power’s earnings outlook.
India
The government took a number measures in 2020 to pro-
tect the renewable energy sector from the adverse effects
of COVID-19. The pandemic was declared a cause of force
majeure, which allowed operators to suspend their obliga-
tions without incurring penalties. To safeguard renewable
generation projects, a 5-month extension of the deadline
for entering service was granted, which is also applicable to
EGP India’s 285 MW Coral project.
In addition, the government issued strict instructions to
protect private generators from any arbitrary curtailment
decisions by discoms at a time of very weak electricity de-
mand, as well as to ensure timely payment of power pur-
chases by discoms.
In 2019, the Ministry of Energy had ordered discoms to is-
sue letters of credit to private generators under the terms
of their respective power purchase agreements (PPAs). The
Gurajat State Distribution Company was forced to open
and maintain a letter of credit in March 2020. This reduced
the risk faced by Enel Green Power projects.
Infrastructure and Networks
Italy
The rate for the fifth regulatory period (2016-2023) is go-
verned by ARERA Resolution no. 654/2015/R/eel. This pe-
riod lasts eight years and is divided into two sub-periods of
four years each (NPR1 for 2016-2019 and NPR2 for 2020-
2023).
With regard to the NPR2 period, ARERA published Resolu-
tion no. 568/2019/R/eel, with which it updated rates for di-
stribution and metering services in force in the 2020-2023
period, publishing the new integrated texts (TIT 2020-2023
and TIME 2020-2023).
With Resolution no. 639/2018/R/com, ARERA set the value
of the WACC for distribution and metering activities, valid
for the 2019-2021 period, at 5.9%.
As for distribution and metering rates, ARERA approved
both the definitive reference rates for 2019, calculated by
taking into account the actual balance sheet data for 2018
(Resolution no. 144/2020/R/eel), and the provisional refe-
rence rates for 2020 on the basis of the preliminary balan-
ce sheet data for 2019 (Resolution no. 162/2020/R/eel). The
definitive reference rates for 2020 are expected to be pu-
blished in the early months of 2021.
Australia
In September 2020, the regulator AER agreed a change
With Resolution no. 449/2020/R/eel, ARERA adjusted the
grid loss regulations for the 2019-2021 period, revising
the conventional percentage loss factors to be applied to
in approach by the AEMO system operator with regard to
low-voltage withdrawals and making a number of chan-
new connections, moving from the parallel evaluation of
ges to the methods for calculating the annual equalization
new connections to a sequential approach (where gene-
amount.
rators are placed in a progressive queue). Each connection
request is evaluated on the basis of the impact it has indi-
As regards service quality, ARERA, with Resolution no.
vidually on the grid. AEMO will be able to begin the evalua-
646/2015/R/eel as amended, established output-based
tion of an application only if the previous application has
regulation for electricity distribution and metering services,
received a no-impact assessment on grid security (or – if
including the principles for regulation for 2016-2023 (TIQE
not – if actions have been taken to remove the impact). This
2016-2023). With Resolution no. 566/2019/R/eel, ARERA
change added significant delays in the connection of Enel
completed the update of the TIQE for the 2020-2023 se-
Green Power plants in Cohuna and Girgarre (whose con-
mi-period, proposing tools to bridge gaps in quality of ser-
nection was expected in 2020), with a significant impact on
vice still existing between the various areas of the country,
Enel Green Power’s financial performance.
taking account of the time needed to implement interven-
tions on the grid as well as the effects of climate change.
With Resolution no. 534/2019/R/eel, ARERA published
the list of interventions in the 2019-2021 Resilience Plan
of e-distribuzione eligible for the bonus-penalty mecha-
nism envisaged under the provisions of Resolution no.
668/2019/R/eel, which introduced an incentive mechani-
206206
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements sm for investments to increase the resilience of distribution
grids in terms of resistance to loads deriving from extreme
saged under Law 15/2012, the proceeds of auctions of CO2
emission allowances and, in the maximum amount of 10%
weather events.
of the annual value of the Fund, the general State budget
Finally, in 2020 ARERA adopted three measures (Resolu-
or EU funds. The preliminary bill envisages a mechanism to
tions no. 431/2020/R/eel, no. 432/2020/R/com and no.
redistribute the cost associated with achieving renewables
213/2020/R/eel) containing extraordinary measures for the
objectives at the national level among all energy sectors
sterilization of effects of the COVID-19 emergency with re-
and provides for a gradual introduction of five years.
gard to service quality, resilience and the installation plan
for e-distribuzione’s 2nd generation meters.
Europe
Energy efficiency - White certificates
With Resolution no. 270/2020/R/efr, ARERA updated the
Romania
The regulated rate of return (RAB) was reviewed by the
rules for defining the rate subsidy to be paid to distributors
energy regulator ANRE. After an order that set the value at
under the energy efficiency certificate mechanism, in com-
5.66% in 2019, it was set at 6.39% in 2020, with a 1% bonus
pliance with Lombardy Regional Administrative Court ruling
for new investments.
no. 2538/2019 published on November 28, 2019. The provi-
With Law 155/2020, Parliament introduced an obligation
sions included confirmation of the cap on the rate subsidy
for distribution system operators (DSOs) to finance the
set at €250/certificate and the introduction of an additional
connection to the network of new non-residential custo-
unit fee directly related to any shortage of available certi-
mers located less than 2,500 meters from the electricity
ficates. e-distribuzione challenged this resolution (with an
distribution grid.
appeal to the President of the Republic), contesting the fai-
With Law 290/2020, the Parliament introduced an obliga-
lure to extend the additional contribution to 2018 and the
tion for DSOs to finance all new connections of new resi-
failure to provide mechanisms for reimbursing costs for the
dential customers.
purchase of virtual white certificates.
Iberia
Spain
Latin America
Chile
Law 21.194
Method for calculating costs of electricity and gas plants
On December 21, 2019, the Ministry of Energy published Law
On July 7, 2020, the Ministry for the Ecological Transition
21.194 which lowered the remuneration of distribution compa-
and the Demographic Challenge launched consultations
nies and enhanced the process for setting electricity distribu-
for two draft decrees concerning the methods for cal-
tion rates. The law changes the discount rate for the calculation
culating the costs of electricity and gas plants, which will
of annual investment costs, which went from 10% to a rate that
supplement the methods for calculating the access rates.
must be between 6% and 8% post tax. The post-tax remune-
These decrees must be approved by the National Commis-
ration rate for electricity distribution companies must not be
sion for Markets and Competition. At the end of 2020 only
more than two points above or three points below the remune-
the decree relating to the gas system had been approved,
ration rate set by the CNE (National Energy Commission). Finally,
while the decree for the electricity system is still awaiting
from January 2021 the distribution companies will have to ope-
approval.
rate exclusively in the distribution field.
Bill establishing a National Fund for the Sustainability of
CNE Resolution no. 176/2020 - Exclusive activity
the Electricity System
On June 9, 2020, CNE Resolution no. 176 was published,
On December 16, 2020, the Ministry for the Ecological
specifying the substance of the obligation of exclusive
Transition and the Demographic Challenge has launched a
activity and separate accounting in the provision of public
public consultation for a bill to create a National Fund for
electricity distribution services in accordance with the pro-
the Sustainability of the Electricity System, which would fi-
visions of Law 21.194.
nance, in whole or in part, the costs connected with specific
Under the provisions of the resolution, companies holding
remuneration scheme for generation from renewables, co-
concessions for the public electricity distribution servi-
generation and waste, currently included in electricity grid
ce operating in the Chilean national electricity system will
access rates. The Fund will be financed with contributions
have to set up as companies exclusively engaged in distri-
from operators in the different energy sectors, taxes envi-
bution activities and will only be able to exercise economic
207
Integrated Annual Report 2020 activities involved in the provision of the public distribution
shed the preliminary technical bases for the calculation of
service, in compliance with applicable legislation. The ru-
the components of the aggregate distribution value for the
les established in the resolution shall apply from January 1,
2020-2024 period and the study of the service costs asso-
2021. Where a company is unable to comply by that date
ciated with the supply of electricity, initiating the process
for legitimate reasons, subject to notifying the CNE the ap-
of determining distribution rates.
plication of the resolution may be postponed, but in any
Following the stages of the process established under ap-
case not later than January 1, 2022.
plicable legislation, the companies submitted their com-
ments and, on June 11, 2020, the CNE published the defini-
Law 21.249 - Exceptional measures supporting end users
tive technical bases with Resolution no. 195.
of health, electricity and gas services
On July 17, 2020, with CNE Resolution no. 256 of the CNE,
On August 8, Law 21.249 was approved, introducing excep-
the Study Committee of the cost established in Article 183-
tional measures supporting the most vulnerable customers,
bis of the General Electricity Services Act was established.
measures that, in large part, Enel Distribuzione Chile was
INECON was selected to conduct the study, with the final
already implementing voluntarily. The measures include a
report to be delivered by April 2021.
moratorium on the interruption of supply due to arrears
and make it possible to pay electricity bill arrears in instal-
Determination of the 2020-2023 transmission rates
lments for electricity for customers defined as vulnerable.
As part of the process of determining 2020-2023 transmis-
These measures were extended and strengthened with
sion rates, the following processes are being developed:
Law 21.301.
Average bare price
› qualification of transmission plants and systems;
› determination of the useful life of transmission plants;
› definition of the technical and administrative basis for
On October 5, 2019, the Ministry of Energy published De-
the determination of transmission rates.
cree 7T/2019 in the official journal, setting the “bare price”
In this context, on June 5, 2018, the CNE approved a de-
for the supply of electricity and set adjustments and loads
finitive technical document determining the useful life of
for the application of the Residential Rate Equity Mechani-
transmission systems (Resolution no. 412).
sm, with retroactive effect from July 1, 2019. On November
Taking account of the studies determining the value of the
2, 2019 the Ministry of Energy published Law 21.185, which
installations, the Definitive Report on the National Transmis-
introduced a transitory mechanism for stabilizing the price
sion System was issued in October 2020 and the related
of electricity for customers subject to regulated rates.
public hearing was held on November 13, 2020. In Novem-
On November 2, 2020, the Ministry of Energy published
ber 2020 the Definitive Report on the Zonal Transmission
the average bare price to be applied starting from January
System was issued and the related public hearing was held
1, 2020. Considering the price stabilization mechanism
on December 2, 2020.
established with Law 21.185, the publication of this decree
had no effect on end-user rates.
Argentina
Short-term bare price
COVID-19 pandemic response measures
On October 23, 2019, the Ministry of Energy published
As part of its response to the COVID-19 pandemic, the Ar-
Decree 9T/2019, setting the bare price for the supply of
gentine government introduced the following measures:
electricity with effect from October 1, 2019.
› the issue on March 17, 2020 of Decree DNU 287/2020 -
On April 7, 2020, the Ministry of Energy published Decree
Declaration of a state of health emergency from 12 March
2T/2020, which sets the bare price for the supply of electri-
2020 for a duration of 1 year;
city, valid from April 1, 2020.
› the issue on March 20, 2020 of Decree DNU 297/2020
On December 3, 2020 the Ministry of Energy published De-
- Mandatory preventive social isolation and subsequent
cree 12T/2020, which sets the bare price for the supply of
extensions;
electricity, valid from October 1, 2020.
› the issue on March 20, 2020 of Decree DNU 298/2020 -
Determination of 2020-2024 distribution rates
proceedings during the lockdown;
With Resolution no. 24 of 21 January 2020, the CNE publi-
› the issue on March 25, 2020 of Decree DNU 311/2020
Suspension of administrative deadlines for government
208208
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements - Limitations on the suspension of basic services, inclu-
payment of CDE (Energy Development Account) allowances
ding users for whom the service interruption procedu-
for May, June and July 2020. These payments were made
re had been initiated. However, this benefit is applicable
in five equal installments starting from August 2020. Any
only to users with reduced or subsidized rates.
differences caused by the delayed application of the rate
revision will be recouped in the subsequent rate revision.
COVID-19 payment moratorium
On May 15, 2020, in response to the difficulties generated
Special rate revision for Enel Distribuição São Paulo
by the COVID-19 pandemic for economic, financial and
(2020)
industrial activities, the regulatory authority ENRE issued
On June 30, 2020, ANEEL approved the rate revision for Enel
Resolution no. 35 allowing all users who have suffered a
Distribuição São Paulo, with an average increase of 4.23%.
reduction of 50% or more in their electricity usage requi-
The rate review took account of the advances received
rement to suspend payments or make partial payments on
by Enel Distribuição São Paulo on account for COVID-19,
account for contracted power supply until their demand
thus reducing the impact of this increase on end users. In
returns to 70%. The obligation to pay additional charges
the absence of these advances, the average rate increase
and taxes is unaffected.
would have been 12.22%.
The measure also defines the defaulting users who will
be able to benefit from a repayment plan that provides
ANEEL Resolution no. 878/2020
for payment of 30 consecutive installments of the same
ANEEL took measures valid for 90 days from March 24,
amount. These repayment plans must be notified to ENRE
2020, to ensure the distribution of electricity during the
and Cammesa by Edesur in order to benefit in turn from a
COVID-19 emergency, including: banning the interruption
similar treatment for purchases of that power.
of service to residential customers in urban and rural are-
Postponement of rate revision
as; granting permission for the suspension of delivery of
invoices issued to consumers, replacing them with the is-
On June 19, 2020, Emergency Decree 543 was published in
sue of electronic invoices or barcodes; and giving priority
the Official Journal. It established a 180-day extension from
to emergency and essential services in order to facilitate
the expiry date of the extraordinary rate revision establi-
social distancing measures and ensure the continuous and
shed with Article 5 of Law 27541 (the Solidarity and Eco-
reliable supply of electricity.
nomic Reactivation Act). The new deadline for performing
the rate review was set as December 17, 2020. Secondly,
Provisional measure no. 950/2020 of the Federal
the measure extends the benefits established under DNU
government
311/2020 (limitations on suspensions of electricity supply)
The provisional measure no. 950/2020 introduced by the
in the event of late payment or non-payment by customers
Federal government granted a full discount for needy cu-
of up to a maximum of six consecutive or alternate invoices
stomers billed up to 220 kWh/month, allocating part of the
falling due after March 1, 2020.
CDE’s resources to fund the measure and allowing the CDE
to draw financial resources to address the impact of the
Additional postponement of rate revision
COVID-19 pandemic on the electricity sector.
On December 17, 2020, the Argentine government issued
Decree DNU 1020/2020 extending the rate freeze for
Reduction of ancillary charges and taxes for electricity
another 90 days. It also initiated the full rate renegotiation
transmission
process, which should be completed with the definition of
In order to provide liquidity to the electricity industry in
a definitive renegotiation agreement in less than two years.
response to COVID-19, on April 20, 2020 ANEEL approved
It also authorizes regulatory bodies to set transitional rates
measures to facilitate the payment of transmission rates by
and allows the segmentation of rates by user category.
distributors and end users.
Brazil
The main measure involved moving forward the financial
effects of the adjustment scheme for April, May and June
2020. The immediate effect was R$144 million in discounts
Rate revision for Enel Distribuição Ceará
on the rates charged for the use of the transmission system
On April 14, 2020, the regulatory authority ANEEL approved
by of distributors (90%) and end users (10%), with similar di-
the rate revision for Enel Distribuiçao Ceará, freezing rates
scounts in May and June.
to take account of the impact of COVID-19 on the economy.
Note also that the decrease in revenue due to the non-ap-
plication of the rate revision will be offset by the delayed
209
Integrated Annual Report 2020 Decree 10.350/2020
of quality indicators and established the retroactive appli-
On May 18, 2020, the government issued a decree regu-
cation of incentives for service quality.
lating the COVID-19 account, an industry rescue loan to
distribution companies in response to the COVID-19 pan-
demic.
Peru
In Peru, the process for determining distribution rates ta-
The COVID-19 account consists of a loan obtained from
kes place every four years and is referred to as the “Setting
a group of public and private banks, with the intention of
the Aggregate Distribution Value” (“VAD”). Exceptionally,
preserving the liquidity of companies in the sector and, at
the last rate cycle set a duration of five years, considering
the same time, alleviating the impact of the crisis on con-
that an extra year was necessary to implement the reform
sumers.
approved in 2015 with Peruvian Legislative Decree 1221.
Therefore, in 2018 the process of determining the VAD was
Provisional measure no. 988/2020 of the Federal
completed for the years 2018-2022. At the end of this rate
government
process, in general, the rates set for the previous regulatory
On September 1, 2020 the Federal government issued
period (years 2013-2017) were unchanged.
a provisional measure with special provisions designed
to reduce rates in the period of the pandemic and in the
With Decreto Supremo 044-2020-PCM, published on Mar-
medium and long term. The measure is valid for 120 days.
ch 15, 2020, a state of national emergency was declared
It is expected that a law with the same provisions will be
for 15 days. This period has since been repeatedly exten-
enacted at that time.
ded and is now in place until at least March 31, 2021 due
to the COVID-19 pandemic. During this period, some social
ANEEL Directives nos. 2177/2020, 2353/2020 and
distancing measures were taken to prevent the spread of
2640/2020
COVID-19. In particular, Decreto Supremo 044-2020-PCM
These directive establish the value of the COVID-19 ac-
establishes that the government shall guarantee access to
count resources transferred to the distribution concession
public services and essential goods and services with no
holders in July, August and September.
restrictions.
Colombia
The Energy and Gas Regulation Commission (CREG) de-
Vice-ministerial Resolution no. 001-2020-MINEM/VME, pu-
blished on March 19, 2020, established that electricity ge-
termines the remuneration methodology for the distribu-
neration, transmission and distribution companies shall:
tion network. Distribution rates are set every five years and
› activate safety protocols to safeguard staff, contractors
updated monthly based on the producer price index.
and third parties;
In response to the national and global impact of the CO-
electricity service;
VID-19 pandemic, in March 2020 the Colombian govern-
› send their emergency plans to OSINERGMIN and Ministry
› take all necessary actions to ensure the continuity of
ment declared a state of economic, social and ecological
of Energy and Mining.
emergency for the entire country and ordered mandatory
preventive isolation for all inhabitants. These measures led
Emergency Decree 029-2020, published on March 20,
to the issue of a range of transitional rules and regulations
2020, introduced a 30-day suspension on the calculation
by Colombian authorities that govern public services, in-
of time limits for the activation of administrative procedu-
cluding electricity supply, in order to ensure the continuity
res and proceedings of any kind, including those regulated
of the delivery of public domestic services and to mitigate
by laws and special provisions, that are subject to deadlines.
financial and social effects in the electricity and natural gas
sector. The measures were extended until May 31, 2021.
Emergency Decree 035-2020, published on April 3, 2020,
On June 24, 2020, the Commission issued CREG Resolution
mers with invoices issued in March 2020 or that include
122, which approved the distribution rates of Enel Codensa.
amounts consumed during the national emergency by
Briefly, CREG, in its final approval, corrected the Asset Base
“vulnerable” users (those with a consumption of up to 100
and incorporated some additional events in the calculation
kWh/month) to pay in instalments over as many as 24 mon-
established that distribution companies can allow custo-
210210
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements ths. The government will pay compensatory interest on the
installments, which will be paid to electricity companies
using the Fondo de Inclusión Social Energético. The mea-
sure also establishes that electricity companies will not be
liable for compensation or penalties for failure to comply
with the technical quality standards for electricity service.
Various commercial measures have also been introduced,
such as the suspension of the obligation to read meters,
of the delivery of paper invoices (digital delivery has been
introduced), and of the obligation to physically assist cu-
stomers at customer care centers, while customers may
be billed using their average consumption over the last six
months until an actual meter reading is possible.
Emergency Decree 062-2020, published on May 28, 2020,
expanded the category of customers who can pay their
electricity bills in instalments to include those consuming
up to 300 kWh/month. In this case, the measure establi-
shes that invoices for May or that include amounts con-
sumed during the national emergency are eligible for the
instalment plan. The compensatory interest to be paid to
electricity companies will be partly borne by the gover-
nment and partly by customers. Finally, the measure also
establishes that electricity companies will not be liable for
compensation or penalties for violation of technical quality
standards for up to 60 calendar days after the emergency
period.
Emergency Decree 074-2020, published on June 27, 2020,
as part of the measures issued under the state of national
emergency, introduced the “Bono Electricidad”, a subsidy
that covers unpaid consumption in the period from Mar-
ch to December 2020 with consumption up to 125 kWh/
month (subject to conditions). This subsidy will cover debts
up to 160 Peruvian soles, and the resources will be directly
transferred to the distribution companies. The resolution
of the OSINERMGIN Board of Directors no. 080-2020-OS/
CD, published on July 9, 2020, approved the procedure for
applying the “Bono Electricidad”.
Emergency Decree 105-2020, published on September 10,
2020, amended Emergency Decree 074-2020, expanding
the beneficiaries of the “Bono Electricidad” to include cu-
stomers with prepaid supply and those associated in col-
lective supply arrangements.
The resolution of the OSINERGMIN Board of Directors no.
218-2020-OS/CD, published on December 24, 2020, ap-
proved the “Manual of the Basic Cost of activities appli-
cable to electricity distribution companies”.
End-user Markets
Italy
Decree Law 162 of December 30, 2019 (the “Milleproroghe”
omnibus extension act), ratified with Law 8 of February 28,
2020, amended the Competition Act (Law 124/2017), pro-
viding for the staggered postponement of the removal of
price protection in the electricity sector, respectively to Ja-
nuary 1, 2021 for small businesses and January 1, 2022 for
domestic customers and micro-enterprises. The termina-
tion of the gas protection regime for domestic users was
also scheduled for January 1, 2022.
With regard to the deadline of January 1, 2021, the imple-
menting decree of the Ministry for Economic Development
is expected to be published in the Gazzetta Ufficiale shortly.
The Ministry delegates ARERA to define the measures go-
verning the transition to the free market, based on certain
criteria and guidelines. With Resolution no. 491/2020/R/
eel, ARERA established a last resort service (“gradual pro-
tections service”) for small businesses without a supplier as
of January 1, 2021.
Electricity
With Resolution no. 576/2019/R/eel, ARERA updated for
2020 the rate component covering the marketing costs
of the operators of the enhanced protection service (RCV)
and the levels of the PCV fee, which represents the referen-
ce price for sellers on the free market.
With Resolution no. 604/2020/R/eel, the levels of the RCV
and PCV components for the 2021 were updated.
The Milan Regional Administrative Court, with ruling no.
565 of 27 March 2020, partially voided Resolution no.
119/2019/R/eel, with which ARERA had introduced chan-
ges to the compensation mechanism for the amounts not
collected by operators of the enhanced protection service
in respect of fraudulent withdrawals of power. In particu-
lar, the Regional Administrative Court voided the part of
the resolution in which it provided for a reduction in the
amounts subject to reimbursement for amounts invoiced
in the period prior to its entry into force (April 2, 2019). With
Resolution no. 240/2020/R/eel, ARERA amended the rules
in compliance with the provisions of the Regional Admini-
strative Court.
Gas
With Resolution no. 32/2019/R/gas ARERA established the
rules for settling financial items between sellers and end
users for the 2010-2012 period with regard to gas for the
safeguard service, in compliance with Council of State ru-
ling no. 4825/2016. With ruling no. 38 of January 7, 2020,
the Milan Regional Administrative Court voided the part of
211
Integrated Annual Report 2020 Resolution no. 32/2019/R/gas in which it excludes custo-
Royal Decree 1106/2020 of 15 December, which regulates
mers with an annual consumption equal to or above a cer-
the charter of energy-intensive users, governing the sta-
tain threshold from socialization of losses. With Resolutions
tus and obligations of such users and the compensation
no. 247/2020/R/gas and no. 603/2020/R/gas, ARERA com-
mechanisms they could benefit from, was published in the
plied with this ruling, recalculating, starting from January 1,
Official Journal on December 17, 2020.
2021, the amounts to be applied to all end users connected
the distribution network.
Europe
Resolutions no. 577/2019/R/gas and no. 603/2020/R/gas
updated the QVD component for 2020 and 2021, respecti-
vely, covering the costs of marketing natural gas sales ser-
Romania
Following the issue of government emergency order no.
vices to customers who use the protection service.
114/2019, the energy regulator ANRE reintroduced regula-
ted bilateral contracts on the wholesale market and set re-
tail prices for the regulated supply of the universal service
at levels that would guarantee the recovery of most of the
losses registered by last-resort suppliers (universal service
providers) in recent years.
Iberia
Spain
Energy efficiency
Law 18/2014 of October 15 containing urgent measures
for growth, competition and efficiency created a National
Energy Efficiency Fund to help achieve energy efficiency
objectives. The TED/28/2020 measure of March 23 establi-
shed that Endesa would be required to make a contribution
for 2020 of €27 million to the National Energy Efficiency
Fund.
In December 2020, the Ministry for the Ecological Transi-
tion and the Demographic Challenge began development
of a proposal for an Order that fixes the contribution to
the National Energy Efficiency Fund for 2021, bringing the
amount proposed for Endesa to €26.6 million.
Social Rate
On August 13, 2020, the Order TED/788/2020 of July 24
was published in Spain’s Official Journal, which establishes
the distribution of the financing obligation for the 2020 So-
cial Rate, with the percentage proposed for Endesa being
set at 35.57%.
Energy-intensive power users
Royal Decree Law 24/2020 of June 26 concerning social
measures to revive employment and protect self-employ-
ment and the competitiveness of the industrial sector
was published in the Official Journal on June 27, 2020. The
legislation created the Spanish reserve fund for the gua-
rantees of energy-intensive entities (FERGEI) to covering
the risks deriving from medium and long-term electricity
purchase and sale transactions. The fund has a budget of
€200 million per year, for a total investment of €600 million
over three years.
212212
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Integrated Annual Report 2020
213
Enel is a “super major” in the renewable
energy field
Investing in Enel means investing in the
fight against climate change.
Enel is a global leader in power grids
Grids will play a key role in the energy
transition.
Electrification of energy consumption
This will enable Enel to create value for
itself and its stakeholders.
Dividend policy
Enel has adopted a simple, predictable
and attractive dividend policy, producing a
guaranteed fixed and increasing dividend
until 2023.
5
OUTLOOK
S
N
O
I
T
A
R
E
P
O
N
O
T
R
O
P
E
R
214214
215
Integrated Annual Report 2020 OUTLOOK
In 2021-2023, the Group expects to invest around €40
billion directly, of which €38 billion through the Owner-
ship business model and around €2 billion through the
Stewardship business model, while mobilizing €8 billion in
investment from third parties.
The COVID-19 pandemic has profoundly impacted not
With regard to the investments planned within the fra-
only economic activity around the world, but also the way
mework of the Ownership business model:
people lived and worked during 2020.
› more than half will be dedicated to Global Power Gene-
In this context, the geographical diversification of the
ration, with approximately €17 billion allocated to incre-
Group, its integrated business model along the entire va-
asing renewable generation capacity, which will rise to
lue chain, a sound financial structure and a high level of
60 GW on a consolidated basis in 2023;
digitalization have enabled Enel to display considerable
› about 43% will be dedicated to Infrastructure and
resilience, which is reflected in our financial position and
Networks. The acceleration of investments is expected
performance for the year.
to lead to an increase in the Group’s RAB, which will rea-
In November 2020, the Group presented the Strategic
ch €48 billion in 2023;
Plan, providing a vision of the evolution of the business
› the remainder will be dedicated to the Customers busi-
over the next ten years.
ness: the customer value of the business-to-consumer
In particular, the new Strategic Plan describes the adop-
segment is expected to increase by about 30%, compa-
tion of two business models: a traditional “Ownership”
red with an increase of some 45% in the business-to-bu-
model, in which digital platforms are promoters of the
siness segment, thanks to the elimination of regulated
business to support the profitability of investments, and
rates, mainly in Italy, and the trend of electrification of
a “Stewardship” model, which catalyzes investments by
energy consumption, which will promote “beyond com-
third parties in collaboration with Enel or in the context of
modity” services.
business-generating platforms.
Investments under the Stewardship business model will
Through these two business models, in 2021-2030 Enel will
mainly be dedicated to renewable energy, as well as to fi-
invest over €150 billion through the Ownership business
ber optics, e-transport and flexibility services.
model and an additional €10 billion through the Steward-
Over 90% of Enel’s investments on a consolidated basis
ship business model, while at the same time mobilizing
will be in line with the United Nations Sustainable Develop-
some €30 billion in additional third-party investment.
ment Goals (SDGs). Furthermore, according to Enel’s ini-
With these investments, it is expected that between 2020
tial calculations, between 80% and 90% of its investments
and 2030 the Group’s ordinary EBITDA will grow at a CAGR of
on a consolidated basis will be aligned with the European
5%-6%, with an ordinary profit growing at a CAGR of 6%-7%.
taxonomy criteria thanks to its substantial contribution to
By promoting decarbonization, electrification and pla-
climate change mitigation.
tform migration processes, the Group also plans to cre-
Furthermore, over the period covered by the Plan, Enel will
ate shared and sustainable value for all stakeholders, for
implement a simple, predictable and attractive dividend
example:
› pursuing an 80% reduction in direct CO2 emissions com-
pared with 2017 in a strategy that will reduce extraction
policy: shareholders will receive a fixed, guaranteed and
increasing dividend per share (DPS) over the next three
years, with the aim of reaching €0.43 per share by 2023.
by about 200 million barrels of oil equivalent;
In 2021, the following are expected:
› saving consumers about 25% on their total energy bills
› an acceleration of investments in renewable energy,
while simultaneously reducing their emissions;
especially in Latin America and North America, to sup-
› investing in digitalization and the creation of platforms
port industrial growth and as part of the decarboniza-
to offer a level of service three times higher than the
tion policies followed by the Group;
current level, with a system average duration interrup-
› an increase in investments to improve the quality and
tion index (SAIDI) falling to about 100 minutes in 2030;
resilience of distribution networks, especially in Italy and
› generating over €240 billion of gross domestic product
Latin America, as well as their further digitalization;
in the countries in which the Group operates, through
› an increase in investments dedicated to the electrifica-
local investments in generation and electrification.
tion of energy consumption, especially in Italy, with the
216216
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance aim of enhancing the growth of the customer base and
Based on the foregoing, the financial targets on which the
achieving continuous efficiency gains, supported by the
Group’s 2021-2023 Plan is based are reported below.
creation of global business platforms.
FINANCIAL TARGETS
Ordinary EBITDA (€ billions)
Ordinary profit (€ billions)
2020 (1)
2021
2022
2023
CAGR
2020-2023
17.9
5.2
18.7-19.3
19.7-20.3
20.7-21.3
+5%/+6%
5.4-5.6
5.9-6.1
6.5-6.7
+8%/+9%
Dividend per share (€)
0.358
0.38
0.40
0.43
~6%
(1) The dividend policy for 2020 provides for the payment of a dividend equal to the higher of €0.358 per share and 70% of the Group’s ordinary net income.
217
Integrated Annual Report 2020 OTHER
INFORMATION
Non-EU subsidiaries
Enel Chile SA (a Chilean company directly controlled by
Enel SpA); 14) Enel Distribución Chile SA (a Chilean com-
pany belonging to Enel Chile); 15) Enel Distribución Perú
SAA (a Peruvian company belonging to Enel Américas);
16) Enel Finance America LLC (a United States company
belonging to Enel North America); 17) Enel Fortuna SA (a
Panamanian company belonging to EGP Américas); 18)
Enel Generación Chile SA (a Chilean company belonging
to Enel Chile); 19) Enel Generación Costanera SA (an Ar-
gentine company belonging to Enel Américas); 20) Enel
Generación El Chocón SA (an Argentine company belon-
At the date of approval by the Board of Directors of the fi-
ging to Enel Américas); 21) Enel Generación Perú SAA (a
nancial statements of Enel SpA for 2020 – March 18, 2021
Peruvian company belonging to Enel Américas); 22) Enel
– the Enel Group meets the “conditions for the listing of
Green Power Brasil Participações Ltda (a Brazilian com-
shares of companies with control over companies establi-
pany belonging to EGP Américas); 23) Enel Green Power
shed and regulated under the law of non-EU countries”
Chile SA (a company merged on March 4, 2020 into Enel
(hereinafter “non-EU subsidiaries”) established by CONSOB
Green Power del Sur SpA, renamed Enel Green Power
with Article 15 of the Markets Regulation (approved with
Chile SA); 24) Enel Green Power Chile SA (formerly Enel
Resolution no. 20249 of December 28, 2017).
Green Power del Sur SpA, a Chilean company belonging
Specifically, we report that:
to Enel Chile); 25) Enel Green Power Diamond Vista Wind
› in application of the materiality criteria for the purposes
Project LLC (a United States company belonging to Enel
of consolidation referred to in Article 15, paragraph 2, of
North America); 26) Enel Green Power México S de RL de
the CONSOB Markets Regulation, 40 non-EU subsidia-
Cv (a Mexican company belonging to Enel Green Power);
ries of the Enel Group have been identified to which the
27) Enel Green Power Perú SAC (a Peruvian company be-
rules in question apply on the basis of the consolidated
longing to EGP Américas); 28) Enel Green Power Rattle-
accounts of the Enel Group at December 31, 2019;
snake Creek Wind Project LLC (a United States company
› they are: 1) Ampla Energia e Serviços SA (a Brazilian
belonging to Enel North America); 29) Enel Green Power
company belonging to Enel Américas); 2) Celg Distri-
RSA (Pty) Ltd (a South African company belonging to Enel
buição SA - Celg D (a Brazilian company belonging to
Green Power); 30) Enel Green Power RSA 2 (RF) (Pty) Ltd (a
Enel Américas); 3) Cimarron Bend Wind Holdings I LLC
South African company belonging to Enel Green Power);
(a United States company belonging to Enel North Ame-
31) Enel Kansas LLC (a United States company belonging
rica); 4) Codensa SA ESP (a Colombian company be-
to Enel North America); 32) Enel North America Inc. (a Uni-
longing to Enel Américas); 5) Companhia Energética do
ted States company directly controlled by Enel SpA); 33)
Ceará - Coelce (a Brazilian company belonging to Enel
Enel Perú SAC (a Peruvian company belonging to Enel
Américas); 6) EGPNA Preferred Wind Holdings LLC (a Uni-
Américas); 34) Enel Russia PJSC (a Russian company di-
ted States company belonging to Enel North America);
rectly controlled by Enel SpA); 35) Enel X North America
7) Eletropaulo Metropolitana Eletricidade de São Paulo
Inc. (a United States company belonging to Enel North
SA (a Brazilian company belonging to Enel Américas);
America); 36) Geotérmica del Norte SA (a Chilean com-
8) Emgesa SA ESP (a Colombian company belonging to
pany belonging to Enel Chile); 37) High Lonesome Wind
Enel Américas); 9) Empresa Distribuidora Sur SA - Ede-
Power LLC (a United States company belonging to Enel
sur (an Argentine company belonging to Enel Américas);
North America); 38) Red Dirt Wind Project LLC (a United
10) Empresa Eléctrica Panguipulli SA (a company merged
States company belonging to Enel North America); 39)
on July 1, 2020 into Parque Eólico Taltal SpA, which on
Rock Creek Wind Project LLC (a United States company
August 1, 2020 was in turn merged into Almeyda So-
belonging to Enel North America); 40) Thunder Ranch
lar SpA, which on January 1, 2021 was merged into Enel
Wind Project LLC (a United States company belonging to
Green Power Chile SA); 11) Enel Américas SA (a Chilean
Enel North America);
company directly controlled by Enel SpA); 12) Enel Brasil
› the balance sheet and income statement of the above
SA (a Brazilian company belonging to Enel Américas); 13)
companies included in the reporting package used for
218218
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance the purpose of preparing the 2020 consolidated financial
for calculating the transfer price or timing could give rise
statements of the Enel Group will be made available to
to doubts concerning the propriety and/or completeness
the public by Enel SpA (pursuant to Article 15, paragraph
of disclosure, conflicts of interest, preservation of company
1a) of the Markets Regulation) at least 15 days prior to the
assets or protection of non-controlling shareholders.
day scheduled for the Ordinary Shareholders’ Meeting
called to approve the 2020 financial statements of Enel
SpA together with the summary statements showing the
essential data of the latest annual financial statements of
subsidiaries and associated companies (pursuant to the
applicable provisions of Article 77, paragraph 2-bis, of
the CONSOB Issuers Regulation approved with Resolu-
tion no. 11971 of May 14, 1999);
› the articles of association and composition and powers
of the control bodies from all the above subsidiaries have
been obtained by Enel SpA and are available in updated
form to CONSOB where the latter should request such
information for supervisory purposes (pursuant to Article
15, paragraph 1b) of the Markets Regulation);
› Enel SpA has verified that the above subsidiaries:
– provide the auditor of the Parent, Enel SpA, with infor-
mation necessary to perform annual and interim audits
of Enel SpA (pursuant to Article 15, paragraph 1 (letter
c-i) of the Markets Regulation);
– use an administrative and accounting system appro-
priate for regular reporting to the management and
auditor of the Parent, Enel SpA, of income statement,
balance sheet and financial data necessary for prepa-
ration of the consolidated financial statements (pur-
suant to Article 15, paragraph 1 (letter c-ii) of the Mar-
kets Regulation).
Disclosures on financial
instruments
The disclosures on financial instruments required by Article
2428, paragraph 2, no. 6-bis of the Civil Code are reported
in the following notes to the consolidated financial state-
ments: 44 “Financial instruments by category”, 45 “Risk
management”, 47 “Derivatives and hedge accounting” and
48 “Assets and liabilities measured at fair value”.
Atypical or unusual
operations
Pursuant to the CONSOB Notice of July 28, 2006, the Group
did not carry out any atypical or unusual operations in 2020.
Such operations include transactions whose significance,
size, nature of the counterparties, subject matter, method
Subsequent events
Significant events following the close of the year are di-
scussed in note 55 to the consolidated financial state-
ments.
Transactions with
related parties
For more information on transactions with related parties,
please see note 50 to the consolidated financial state-
ments.
Research and
development costs
Please see the “Innovation and digitalization” section of the
“Performance & Metrics” chapter.
219
Integrated Annual Report 2020 Reconciliation of equity
and profit of Enel SpA
and the corresponding
consolidated figures
Pursuant to CONSOB Notice no. DEM/6064293 of July 28,
2006, the following table provides a reconciliation of Group
profit for the year and equity with the corresponding figu-
res for the Parent.
Millions of euro
Income statement
Equity
Income statement
Equity
at Dec. 31, 2020
at Dec. 31, 2019
Separate financial statements - Enel SpA
Carrying amount of and impairment losses on
consolidated equity investments
Equity and profit (calculated using the same
accounting policies) of the consolidated companies
and groups and those accounted for using the
equity method, net of non-controlling interests
Translation reserve
Goodwill
Intercompany dividends
Elimination of unrealized intercompany profits, net of
tax effects and other minor adjustments
TOTAL ATTRIBUTABLE TO OWNERS OF THE
PARENT
NON-CONTROLLING INTERESTS
CONSOLIDATED FINANCIAL STATEMENTS
2,326
687
4,091
-
(274)
(4,146)
(74)
2,610
1,012
3,622
30,743
(85,641)
78,099
(7,046)
13,779
-
(1,609)
28,325
14,032
42,357
4,792
211
4,428
-
(27)
(7,160)
(70)
2,174
1,302
3,476
29,586
(82,098)
75,304
(3,802)
14,241
-
(2,854)
30,377
16,561
46,938
220220
134562Enel GroupStrategy & Risk ManagementPerformance& MetricsOutlookConsolidated financial statementsGovernance Integrated Annual Report 2020
221
6
CONSOLIDATED
FINANCIAL
STATEMENTS
I
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
I
F
D
E
T
A
D
I
L
O
S
N
O
C
222222
Net profit attributable to shareholders
of the Parent at €2,610 million, +20% on
2019
The growth reflects improved financial
management and a decrease in impair-
ment losses.
Energy transition
The Group continued the energy tran-
sition process by recognizing additional
impairment losses on its coal-fired plants
and provisions for restructuring plans in-
volving decarbonization and digitalization.
Impact of climate change
In its valuation processes, the Group has
taken account of the long-term impacts
of climate change.
Impact of the COVID-19 pandemic
The notes to the consolidated financial
statements discuss the impacts of the
COVID-19 pandemic.
223
Integrated Annual Report 2020 CONSOLIDATED
FINANCIAL
STATEMENTS
Income Statement
Millions of euro
Notes
9.a
9.b
[Subtotal]
10.a
10.b
10.c
10.d
10.e
10.f
10.g
[Subtotal]
11
12
13
12
13
14
15
Revenue
Revenue from sales and services
Other income
Costs
Electricity, gas and fuel (1)
Services and other materials (1)
Personnel expenses
Net impairment losses on trade receivables and other
financial assets
Depreciation, amortization and other impairment losses
Other operating costs (1)
Capitalized costs
Net expense from commodity derivatives
Operating profit
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income from hyperinflation
Share of profit/(loss) of equity-accounted investments
Pre-tax profit
Income taxes
Profit from continuing operations
Profit/(Loss) from discontinued operations
Profit for the year (owners of the Parent)
Attributable to owners of the Parent
Attributable to non-controlling interests
Basic earnings/(loss) per share attributable to owners
of the Parent (euro)
Diluted earnings/(loss) per share attributable to owners
of the Parent (euro)
Basic earnings/(loss) per share from continuing operations
attributable to owners of the Parent (euro)
Diluted earnings/(loss) per share from continuing operations
attributable to owners of the Parent (euro)
2020
2019
of which with
related parties
of which with
related parties
4,804
16
7,189
2,617
235
11
88
46
62,623
2,362
64,985
25,049
18,298
4,793
1,285
7,163
2,202
(2,385)
56,405
(212)
8,368
1,315
2,763
2,256
4,485
57
(299)
5,463
1,841
3,622
-
3,622
2,610
1,012
0.26
0.26
0.26
0.26
4,038
10
5,385
2,958
202
1
62
71
77,366
2,961
80,327
38,082
18,836
4,634
1,144
9,682
2,693
(2,355)
72,716
(733)
6,878
1,484
1,637
1,142
4,518
95
(122)
4,312
836
3,476
-
3,476
2,174
1,302
0.21
0.21
0.21
0.21
(1) The 2019 figures have been adjusted to take account of the reclassification of the result of the measurement of contracts for the purchase of commodities
with physical settlement (IFRS 9) from “Other operating costs” to “Electricity, gas and fuel” and “Services and other materials”.
224224
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Notes
Statement of
Comprehensive
Income
Millions of euro
Profit for the year
Other comprehensive income/(expense) that may be
subsequently reclassified to profit or loss (net of taxes)
Effective portion of change in the fair value of cash flow
hedges
Change in fair value of hedging costs
Share of the other comprehensive expense
of equity-accounted investments
Change in the fair value of financial assets at FVOCI
Change in translation reserve
Other comprehensive income/(expense) that may not be
subsequently reclassified to profit or loss (net of taxes)
Remeasurement of assets for employee benefits
Change in fair value of equity investments in other companies
Total other comprehensive expense for the year
35
Comprehensive income/(expense) for the year
Attributable to:
- owners of the Parent
- non-controlling interests
2020
3,622
(268)
(99)
(9)
(1)
(4,510)
(353)
(21)
(5,261)
(1,639)
(1,028)
(611)
2019
3,476
39
120
(57)
5
(481)
(502)
-
(876)
2,600
1,745
855
225
Integrated Annual Report 2020 at Dec. 31, 2020
at Dec. 31, 2019
of which with
related parties
of which with
related parties
Notes
17
20
21
22
23
24
25
26
27
29
78,718
103
17,668
13,779
8,578
861
1,236
304
5,159
2,494
79,809
112
19,089
14,241
9,112
1,682
1,383
487
6,006
2,701
21
1,144
[Total]
128,900
134,622
31
32
26
25
28
30
33
[Total]
34
2,401
12,046
176
446
3,471
5,113
3,578
5,906
33,137
1,416
163,453
863
190
164
2,531
13,083
166
409
4,065
4,305
3,115
9,029
36,703
101
171,426
15
896
8
27
183
Statement
of financial position
Millions of euro
ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Goodwill
Deferred tax assets
Equity-accounted investments
Non-current financial derivative assets
Non-current contract assets
Other non-current financial assets
Other non-current assets
Current assets
Inventories
Trade receivables
Current contract assets
Tax assets
Current financial derivative assets
Other current financial assets
Other current assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
226226
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
Millions of euro
LIABILITIES AND EQUITY
Equity attributable to owners of the Parent
Share capital
Treasury share reserve
Other reserves
Retained earnings
Non-controlling interests
Total equity
Non-current liabilities
Long-term borrowings
Employee benefits
Provisions for risks and charges (non-current portion)
Deferred tax liabilities
Non-current financial derivative liabilities
Non-current contract liabilities
Other non-current liabilities
Current liabilities
Short-term borrowings
Current portion of long-term borrowings
Provisions for risks and charges (current portion)
Trade payables
Income tax liabilities
Current financial derivative liabilities
Current contract liabilities
Other current financial liabilities
Other current liabilities
Liabilities included in disposal groups classified as held for sale
Total liabilities
TOTAL LIABILITIES AND EQUITY
Notes
[Total]
35
36
37
38
23
25
26
39
10,167
(3)
(39)
18,200
28,325
14,032
42,357
49,519
2,964
5,774
7,797
3,606
6,191
3,458
[Total]
79,309
36
36
38
41
25
26
42
40
[Total]
34
6,345
3,168
1,057
12,859
471
3,531
1,275
622
11,651
40,979
808
121,096
163,453
at Dec. 31, 2020
at Dec. 31, 2019
of which with
related parties
of which with
related parties
10,167
(1)
1,130
19,081
30,377
16,561
46,938
984
54,174
715
3,771
5,324
8,314
2,407
6,301
3,706
83,997
3,917
3,409
1,196
161
108
151
89
2,205
12,960
2,291
16
37
209
3,554
1,328
754
13,161
40,488
3
124,488
171,426
8
39
30
227
Integrated Annual Report 2020
Statement of Changes
in Equity (note 35)
Share capital and reserves attributable to owners of the Parent
Millions of euro
Share
premium
reserve
Treasury
share
reserve
Share
capital
Reserve
for equity
instruments
- perpetual
hybrid
bonds
Legal
reserve
Other
reserves
Translation
reserve
Hedging
reserve
Hedging
costs reserve
Reserve from
measurement
Reserve from
of financial
instruments
equity-
accounted
at FVOCI
investments
Reserve from
Reserve from
disposal of
acquisitions
equity interests
of non-
Equity
attributable
Non-
Actuarial
without loss of
controlling
Retained
to owners
controlling
control
interests
earnings
of the Parent
interests
2,034
2,262
(3,317)
(1,745)
(258)
16
(63)
(2,381)
(1,623)
-
-
-
-
-
-
111
111
-
(147)
-
-
-
-
-
-
-
-
At December 31, 2018
10,167
7,489
Distribution of dividends
Purchase of treasury shares
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-
controlling interests
Change in the consolidation
scope
Comprehensive income for
the year
of which:
- other comprehensive
expense
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
(9)
7
-
-
-
-
-
-
At December 31, 2019
10,167
7,487
Distribution of dividends
Purchase of treasury shares
Equity instruments - hybrid
perpetual bonds
Reserve for share-based
payments (LTI bonus)
Reclassification for
curtailment of defined
benefit plans (IAS 19)
following signing of 5th
Endesa Collective Bargaining
Agreement
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-
controlling interests
Comprehensive expense for
the year
of which:
- other comprehensive
expense
- profit for the year
-
-
-
-
-
-
-
-
-
-
-
-
(11)
-
-
-
-
-
-
-
-
-
-
-
(1)
-
-
-
-
-
-
-
(1)
-
(2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,386
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(220)
(265)
(265)
-
-
-
-
-
-
41
94
94
-
2,034
2,262
(3,802)
(1,610)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(257)
(13)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
-
-
-
-
-
-
-
At December 31, 2020
10,167
7,476
(3)
2,386
2,034
2,268
(7,046)
(1,917)
228228
21
(119)
(1,043)
(2,381)
(1,572)
reserve
(714)
-
-
-
-
-
-
-
-
-
-
-
-
(11)
(318)
(318)
106
(28)
(231)
(231)
-
(56)
(56)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(9)
(9)
-
-
-
-
-
-
-
5
5
-
-
-
-
-
-
-
-
-
(22)
(22)
-
(1)
2,174
1,745
855
2,600
19,853
(3,050)
31,720
16,132
(3,050)
(1,190)
104
-
-
-
-
-
-
-
-
2,174
19,081
(3,487)
(10)
-
104
61
(193)
(429)
2,174
30,377
(3,487)
(13)
2,386
6
(106)
(1)
105
-
(1)
105
(447)
1,302
16,561
(1,356)
-
-
1
170
593
-
-
-
-
-
147
Total
equity
47,852
(4,240)
(10)
-
274
654
(192)
(876)
3,476
46,938
(4,843)
(13)
2,386
6
-
(1)
252
280
(2)
(20)
(709)
(729)
-
-
-
(7)
61
(3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,987)
(294)
(95)
2,610
(1,028)
(611)
(1,639)
(2,987)
-
(294)
-
(95)
-
(242)
(128)
(1,196)
(2,381)
(1,292)
-
(3,638)
(1,623)
2,610
18,200
2,610
1,012
28,325
14,032
(5,261)
3,622
42,357
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements At December 31, 2019
10,167
7,487
2,034
2,262
(3,802)
(1,610)
(147)
Distribution of dividends
Purchase of treasury shares
(11)
Distribution of dividends
Purchase of treasury shares
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-
controlling interests
Change in the consolidation
Comprehensive income for
scope
the year
of which:
expense
- other comprehensive
- profit/(loss) for the year
Equity instruments - hybrid
perpetual bonds
Reserve for share-based
payments (LTI bonus)
Reclassification for
curtailment of defined
benefit plans (IAS 19)
following signing of 5th
Endesa Collective Bargaining
Agreement
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-
controlling interests
Comprehensive expense for
the year
of which:
expense
- other comprehensive
- profit for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(9)
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
(2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,386
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
(220)
(265)
(265)
-
-
-
-
-
-
-
-
-
-
-
-
-
41
94
94
-
-
-
-
-
-
-
-
-
-
-
-
-
111
111
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(257)
(13)
(2,987)
(294)
(95)
(2,987)
-
(294)
-
(95)
-
(242)
At December 31, 2020
10,167
7,476
(3)
2,386
2,034
2,268
(7,046)
(1,917)
Share capital and reserves attributable to owners of the Parent
Reserve
for equity
instruments
Millions of euro
At December 31, 2018
10,167
7,489
Share
Treasury
- perpetual
Share
premium
share
capital
reserve
reserve
hybrid
bonds
Legal
Other
Translation
Hedging
Hedging
reserve
reserves
2,034
2,262
reserve
(3,317)
reserve
costs reserve
(1,745)
(258)
Reserve from
measurement
of financial
instruments
at FVOCI
Reserve from
equity-
accounted
investments
Reserve from
disposal of
equity interests
without loss of
control
Reserve from
acquisitions
of non-
controlling
interests
Actuarial
reserve
16
(63)
(714)
(2,381)
(1,623)
-
-
-
-
-
-
5
5
-
21
-
-
-
-
-
-
-
-
(22)
(22)
-
(1)
-
-
-
-
-
-
(56)
(56)
-
(119)
-
-
-
-
-
-
-
-
(9)
(9)
-
-
-
-
-
-
(11)
(318)
(318)
-
-
-
-
-
-
-
-
-
-
-
-
(7)
-
61
(3)
-
-
-
(1,043)
(2,381)
(1,572)
-
-
-
-
106
-
-
(28)
(231)
(231)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(128)
(1,196)
(2,381)
(1,292)
Equity
attributable
to owners
of the Parent
Non-
controlling
interests
31,720
16,132
(3,050)
(1,190)
Retained
earnings
19,853
(3,050)
(10)
-
104
61
-
-
170
593
-
-
104
-
-
Total
equity
47,852
(4,240)
(10)
-
274
654
(193)
1
(192)
2,174
1,745
855
2,600
-
2,174
19,081
(3,487)
-
-
-
(429)
2,174
30,377
(3,487)
(13)
2,386
6
(106)
(1)
105
-
(1)
105
(447)
1,302
16,561
(1,356)
-
-
-
-
-
147
(876)
3,476
46,938
(4,843)
(13)
2,386
6
-
(1)
252
2,610
(1,028)
(611)
(1,639)
-
(3,638)
(1,623)
2,610
18,200
2,610
1,012
28,325
14,032
(5,261)
3,622
42,357
229
280
(2)
(20)
(709)
(729)
Integrated Annual Report 2020 Statement
of Cash Flows
Millions of euro
Notes
10.d
10.e
12-13
14
31
32
41
26
26
12-13
12-13
15
17-20
21
7
7
44.3
44.3
Pre-tax profit
Adjustments for:
Net impairment losses on trade receivables
and other financial assets
Depreciation, amortization and other impairment losses
Net financial expense
Net gains from equity-accounted investments
Changes in net working capital:
- inventories
- trade receivables
- trade payables
- other contract assets
- other contract liabilities
- other assets/liabilities
Accruals to provisions
Utilization of provisions
Interest income and other financial income collected
Interest expense and other financial expense paid
Net (income)/expense from measurement of commodities
Income taxes paid
Net capital gains
Cash flows from operating activities (A)
Investments in property, plant and equipment
Investments in intangible assets
Investments in non-current contract assets
Investments in entities (or business units) less cash and cash
equivalents acquired
Disposals of entities (or business units) less cash and cash
equivalents sold
(Increase)/Decrease in other investing activities
Cash flows used in investing activities (B)
New long-term borrowings
Repayments of borrowings
Other changes in net financial debt
Payments for acquisition of equity investments without change of
control and other transactions in non-controlling interests
Issues/(Redemptions) of hybrid bonds
Purchase of treasury shares
Dividends and interim dividends paid
Cash flows from/(used in) financing activities (C)
Impact of exchange rate fluctuations on cash and cash equivalents
(D)
Increase/(Decrease) in cash and cash equivalents (A+B+C+D)
Cash and cash equivalents at the beginning of the year (1)
Cash and cash equivalents at the end of the year (2)
2020
2019
of which with
related parties
of which with
related parties
5,463
1,285
7,163
2,606
299
(1,567)
(8)
(1,350)
698
(15)
(142)
(750)
834
(1,202)
1,705
(3,690)
188
(1,575)
(1)
11,508
(8,330)
(1,218)
(649)
(33)
154
(41)
(10,117)
3,924
(1,950)
(712)
(1,067)
588
(13)
(4,742)
(3,972)
(497)
(3,078)
9,080
6,002
33
(86)
34
62
(71)
(104)
(176)
4,312
1,144
9,682
2,443
123
(273)
318
(877)
(51)
(31)
154
214
515
(1,838)
1,582
(4,235)
(86)
(1,850)
(268)
11,251
(8,236)
(1,023)
(692)
(320)
688
468
(9,115)
8,899
(5,511)
355
530
-
(10)
(3,957)
306
(76)
2,366
6,714
9,080
189
(633)
18
88
(46)
(89)
(1) Of which cash and cash equivalents equal to €9,029 million at January 1, 2020 (€6,630 million at January 1, 2019), short-term securities equal to €51 million
at January 1, 2020 (€63 million at January 1, 2019) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €21 million at January
1, 2019.
(2) Of which cash and cash equivalents equal to €5,906 million at December 31, 2020 (9,029 million at December 31, 2019), short-term securities equal to €67
million at December 31, 2020 (€51 million at December 31, 2019) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €29
million at December 31, 2020.
230230
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
Basis of presentation
1. Form and content of the
consolidated financial statements
pared in conformity with measures issued in implementa-
tion of Article 9, paragraph 3, of Legislative Decree 38 of
February 28, 2005.
The consolidated financial statements consist of the in-
come statement, the statement of comprehensive inco-
me, the statement of financial position, the statement of
changes in equity and the statement of cash flows and the
related notes.
The assets and liabilities recognized in the statement of
financial position are classified on a “current/non-current
basis”, with separate reporting of assets held for sale and
liabilities included in disposal groups held for sale. Current
assets, which include cash and cash equivalents, are assets
that are intended to be realized, sold or consumed during
the normal operating cycle of the Group; current liabilities
are liabilities that are expected to be settled during the nor-
mal operating cycle of the Group.
The income statement classifies costs on the basis of
Enel SpA has its registered office in Viale Regina Margherita
their nature, with separate reporting of profit/(loss) from
137, Rome, Italy, and since 1999 has been listed on the Milan
continuing operations and profit/(loss) from discontinued
stock exchange.
operations attributable to owners of the Parent and to
There were no changes in the company name in 2020.
non-controlling interests.
Enel is an energy multinational and is one of the world’s le-
The consolidated cash flow statement is prepared using
ading integrated operators in the electricity and gas indu-
the indirect method, with separate reporting of any cash
stries, with a special focus on Europe and Latin America.
flows by operating, investing and financing activities asso-
The consolidated financial statements as at and for the year
ciated with discontinued operations.
ended December 31, 2020 comprise the financial statemen-
In particular, although the Group does not diverge from the
ts of Enel SpA, its subsidiaries and Group holdings in asso-
provisions of IAS 7 in the classification of items:
ciates and joint ventures, as well as the Group’s share of the
› cash flows from operating activities report cash flows from
assets, liabilities, costs and revenue of joint operations (“the
core operations, interest on loans granted and obtained
Group”).
and dividends received from associates or joint ventures;
A list of the subsidiaries, associates, joint operations and joint
› investing activities comprise investments in property, plant
ventures included in the consolidation scope is attached.
and equipment and intangible assets and disposals of such
These consolidated financial statements were approved
assets and contract assets related to service concession
and authorized for publication by the Board of Directors on
arrangements. They include, also, the effects of business
March 18, 2021.
combinations in which the Group acquires or loses control
These consolidated financial statements have been audited
of companies, as well as other minor investments;
by KPMG SpA.
› cash flows from financing activities include cash flows
generated by liability management transactions and le-
Basis of presentation
The consolidated financial statements as at and for the year
ases, dividends and interim dividends paid to owners of
the Parent and non-controlling interests and the effects
ended December 31, 2020 have been prepared in accor-
of transactions in non-controlling interests that do not
dance with international accounting standards (Internatio-
change the status of control of the companies involved;
nal Accounting Standards - IAS and International Financial
› a separate item is used to report the impact of exchange
Reporting Standards - IFRS) issued by the International Ac-
rates on cash and cash equivalents and their impact on
counting Standards Board (IASB), the interpretations of the
profit or loss is eliminated in full in order to neutralize the
IFRS Interpretations Committee (IFRSIC) and the Standing
effect on cash flows from operating activities.
Interpretations Committee (SIC), recognized in the Europe-
For more information on cash flows as reported in the sta-
an Union pursuant to Regulation (EC) no. 1606/2002 and in
tement of cash flows, please see the note on “Cash flows”
effect as of the close of the year. All of these standards and
in the Report on Operations.
interpretations are hereinafter referred to as the “IFRS-EU”.
The consolidated financial statements have been prepared
The consolidated financial statements have also been pre-
on a going concern basis using the cost method, with the
231
Integrated Annual Report 2020 exception of items measured at fair value in accordance
judgments could have a substantial impact on future results.
with IFRS, as explained in the measurement bases applied
In addition, as regards the impact of the COVID-19 pan-
to each individual item, and of non-current assets and di-
demic, the forecasts for future developments in the ma-
sposal groups classified as held for sale, which are measu-
croeconomic, financial and business environment in which
red at the lower of their carrying amount and fair value less
the Group operates are characterized by a high degree of
costs to sell.
uncertainty, which is reflected in the assessments and the
The consolidated financial statements are presented in
estimates produced by management regarding the car-
euro, the functional currency of the Parent Enel SpA. All fi-
rying amounts of the assets and liabilities affected by gre-
gures are shown in millions of euro unless stated otherwise.
ater volatility. In this regard, the following sections provide
The consolidated income statement, the statement of finan-
specific information on the estimates and judgments used
cial position and the consolidated statement of cash flows
in the areas of the financial statements most affected by
report transactions with related parties, the definition of whi-
the COVID-19 pandemic, drawing on the information avai-
ch is given in note 2.2 “Significant accounting policies”.
lable at December 31, 2020 and considering the constantly
The consolidated financial statements provide comparative
evolving scenario. Please see note 9.a “Revenue from sales
information in respect of the previous year.
and services”, note 17 “Property, plant and equipment”, note
22 “Goodwill”, note 37 “Employee benefits” and note 44 “Fi-
nancial instruments by category” for the main impacts of
2. Accounting policies
the COVID-19 pandemic.
2.1 Use of estimates and management
judgment
Preparing the consolidated financial statements under
With regard to the effects of climate change issues, the
Group believes that climate change represents an impli-
cit element in the application of the methodologies and
models used to perform estimates in the valuation and/
IFRS-EU requires management to take decisions and make
or measurement of certain accounting items. Furthermo-
estimates and assumptions that may impact the carrying
re, the Group has taken account of the impact of climate
amount of revenue, costs, assets and liabilities and the re-
change in the significant judgments made by management.
lated disclosures concerning the items involved as well as
In this regard, the main items included in the consolidated
contingent assets and liabilities at the reporting date. The
financial statements at December 31, 2020 affected by ma-
estimates and management’s judgments are based on pre-
nagement’s use of estimates and judgments refer to the
vious experience and other factors considered reasonable
impairment of non-financial assets and obligations con-
in the circumstances. They are formulated when the car-
nected with generation plants, including those for decom-
rying amount of assets and liabilities is not easily determi-
missioning and site restoration. For further details on these
ned from other sources. The actual results may therefore
items, see note 17 “Property, plant and equipment”, note 22
differ from these estimates. The estimates and assump-
“Goodwill” and note 38 “Provisions for risks and charges”.
tions are periodically revised and the effects of any chan-
ges are reflected through profit or loss if they only involve
Use of estimates
that period. If the revision involves both the current and
future periods, the change is recognized in the period in
Revenue from contracts with customers
which the revision is made and in the related future periods.
Revenue from supply of electricity and gas to end users is
In order to enhance understanding of the consolidated
recognized at the time the electricity or gas is delivered
financial statements, the following sections examine the
and includes, in addition to amounts invoiced on the basis
main items affected by the use of estimates and the cases
of periodic (and pertaining to the year) meter readings or
that reflect management judgments to a significant de-
on the volumes notified by distributors and transporters,
gree, underscoring the main assumptions used by mana-
an estimate of the electricity and gas delivered during the
gement in measuring these items in compliance with the
period but not yet invoiced that is equal to the difference
IFRS-EU. The critical element of such valuations is the use
between the amount of electricity and gas delivered to the
of assumptions and professional judgments concerning is-
distribution network and that invoiced in the period, ta-
sues that are by their very nature uncertain.
king account of any network losses. Revenue between the
Changes in the conditions underlying the assumptions and
date of the last meter reading and the year-end is based
232232
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements on estimates of the daily consumption of individual custo-
non-financial assets as at December 31, 2020. For this re-
mers, primarily determined on their historical information,
ason, the Group has carefully considered the effects of the
adjusted to reflect the climate factors or other matters that
COVID-19 pandemic in determining the existence of im-
may affect the estimated consumption.
pairment indicators for non-financial assets.
For more details on such revenue, see note 9.a “Revenue
Furthermore, in line with its business model and in the con-
from sales and services”.
text of the acceleration of the decarbonization of the ge-
neration mix and driving the energy transition process, the
Impairment of non-financial assets
Group has also carefully assessed whether climate change
When the carrying amount of property, plant and equip-
issues have affected the reasonable and supportable assu-
ment, investment property, intangible assets, right-of-use
mption used to estimate expected cash flows. In this re-
assets, goodwill and investments in associates/joint ven-
gard, where necessary, the Group has also taken account
tures exceeds its recoverable amount, which is the higher
of the long-term impact of climate change, in particular by
of the fair value less costs to sell and the value in use, the
considering in the estimation of the terminal value a long-
assets are impaired.
term growth rate in line with the change in electricity de-
Such impairments are carried out in accordance with the
mand in 2030-2050 based on the specific characteristics
provisions of IAS 36, as described in greater detail in note
of the businesses involved.
22 “Goodwill”.
Information on the main assumptions used to estimate
In order to determine the recoverable amount, the Group
the recoverable amount of assets with reference to the
generally adopts the value in use criterion. Value in use is
impacts relating to the COVID-19 pandemic and climate
based on the estimated future cash flows generated by
change, as well as information on changes in these assu-
the asset, discounted to their present value using a pre-tax
mptions, is provided in note 22 “Goodwill”.
discount rate that reflects the current market assessment
of the time value of money and of the specific risks of the
Expected credit losses on financial assets
asset.
At the end of each reporting period, the Group recogni-
Future cash flows used to determine value in use are based
zes a loss allowance for expected credit losses on trade
on the most recent business plan, approved by the mana-
receivables and other financial assets measured at amorti-
gement, containing forecasts for volumes, revenue, ope-
zed cost, debt instruments measured at fair value through
rating costs and investments. These projections cover the
other comprehensive income, contract assets and all other
next three years. For subsequent years, account is taken of:
assets in scope.
› assumptions concerning the long-term evolution of
Loss allowances for financial assets are based on assu-
the main variables considered in the calculation of cash
mptions about risk of default and on the measurement
flows, as well as the average residual useful life of the
of expected credit losses. Management uses judgment in
assets or the duration of the concessions, based on the
making these assumptions and selecting the inputs for the
specific characteristics of the businesses;
impairment calculation, based on the Group’s past expe-
› a long-term growth rate equal to the long-term growth
rience, current market conditions as well as forward-lo-
of electricity demand and/or inflation (depending on the
oking estimates at the end of each reporting period.
country and business) that does not in any case exceed
The expected credit loss (i.e. ECL) – determined conside-
the average long-term growth rate of the market invol-
ring probability of default (PD), loss given default (LGD), and
ved.
exposure at default (EAD) – is the difference between all
The recoverable amount is sensitive to the estimates and
contractual cash flows that are due in accordance with the
assumptions used in the calculation of cash flows and the
contract and all cash flows that are expected to be received
discount rates applied. Nevertheless, possible changes in
(including all shortfalls) discounted at the original effective
the underlying assumptions on which the calculation of
interest rate (EIR).
such amounts is based could generate different recove-
In particular, for trade receivables, contract assets and le-
rable amounts. The analysis of each group of non-financial
ase receivables, including those with a significant financial
assets is unique and requires management to use estima-
component, the Group applies the simplified approach,
tes and assumptions considered prudent and reasonable
determining expected credit losses over a period corre-
in the specific circumstances.
sponding to the residual life of the asset, generally equal
In the current scenario, the analysis of impairment indica-
to 12 months.
tors has become even more important as an attempt was
Based on the specific reference market and the regulatory
also made to assess whether the impact of the COVID-19
context of the sector, as well as expectations of recovery
pandemic could reduce the carrying amount of certain
after 90 days, for such assets, the Group mainly applies
233
Integrated Annual Report 2020 a default definition of 180 days past due to determine
adjustments were made to the results of the impairment
expected credit losses, as this is considered an effective
model adopted by the Group based on IFRS 9 (so-called
indication of a significant increase in credit risk. Accordin-
“post-model adjustments”), determined mainly on the ba-
gly, financial assets that are more than 90 days past due are
sis of an expert credit judgment based on the deterioration
generally not considered to be in default, except for some
in the collection status of certain customer segments.
specific regulated markets.
For additional details on the key assumptions and inputs used
For trade receivables and contract assets the Group mainly
please refer to note 44 “Financial instruments by category”.
applies a collective approach based on grouping trade re-
ceivables/contract assets into specific clusters, taking into
Depreciable amount of certain elements of Italian
account the specific regulatory and business context. Only
hydroelectric plants subsequent to enactment
if the trade receivables are deemed to be individually si-
of Law 134/2012
gnificant by management and there is specific information
Law 134 of August 7, 2012 containing “urgent measures for
about any significant increase in credit risk, does the Group
growth” (published in the Gazzetta Ufficiale of August 11,
apply an analytical approach.
2012), introduced a sweeping overhaul of the rules gover-
In case of individual assessment, PD is mainly obtained
ning hydroelectric concessions. Among its various provi-
from an external provider.
sions, the law establishes that five years before the expiration
Conversely, for collective assessment, trade receivables are
of a major hydroelectric water diversion concession and in
grouped based on shared credit risk characteristics and
cases of lapse, relinquishment or revocation, where there is
past due information, considering a specific definition of
no prevailing public interest for a different use of the water,
default.
incompatible with its use for hydroelectric generation, the
competent public entity shall organize a public call for ten-
Based on each business and local regulatory framework as
ders for the award for consideration of the concession for a
well as differences in customer portfolios also in terms of
period ranging from 20 to a maximum of 30 years.
risk, default rates and recovery expectations, specific clu-
In order to ensure operational continuity, the law also go-
sters are defined.
verns the methods of transferring ownership of the busi-
The contract assets are considered to have substantially
ness unit necessary to operate the concession, including
the same risk characteristics as the trade receivables for
all legal relationships relating to the concession, from the
the same types of contracts.
outgoing concession holder to the new concession holder,
in exchange for payment of a price to be determined in ne-
In order to measure the ECL for trade receivables on a
gotiations between the departing concession holder and
collective basis, as well as for contract assets, the Group
the grantor agency, taking due account of the following
considers the following assumptions related to ECL para-
elements:
meters:
› for intake and governing works, penstocks and outflow
› PD, assumed as to be the average default rate, is calcula-
channels, which under the consolidated law governing
ted on a cluster basis and taking into consideration mini-
waters and electrical plants are to be relinquished free of
mum 24 month historical data;
charge (Article 25 of Royal Decree 1775 of December 11,
› LGD is function of the default bucket’s recovery rates, di-
1933), the revalued cost less government capital gran-
scounted at the EIR; and
ts, also revalued, received by the concession holder for
› EAD is estimated as the carrying exposure at the repor-
the construction of such works, depreciated for ordinary
ting date net of cash deposits, including invoices issued
wear and tear;
but not expired and invoices to be issued.
› for other property, plant and equipment, the market va-
Based on specific management evaluations, the forward-lo-
lue, meaning replacement value, reduced by estimated
oking adjustment can be applied considering qualitative
depreciation for ordinary wear and tear.
and quantitative information in order to reflect possible
While acknowledging that the new regulations introduce
future events and macroeconomic scenarios, which may
important changes as to the transfer of ownership of the
affect the risk of the portfolio or the financial instrument.
business unit with regard to the operation of the hydroe-
In order to take account of the effects of the COVID-19
lectric concession, the practical application of these prin-
pandemic on the impairment of trade receivables, specific
ciples faces difficulties, given the uncertainties that do not
234234
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements permit the formulation of a reliable estimate of the value
Pensions and other post-employment benefits
that can be recovered at the end of existing concessions
Some of the Group’s employees participate in pension
(residual value).
plans offering benefits based on their wage history and ye-
Accordingly, management has decided it could not produ-
ars of service. Certain employees are also eligible for other
ce a reasonable and reliable estimate of residual value.
post-employment benefit schemes.
The fact that the legislation requires the new concession hol-
The expenses and liabilities of such plans are calculated on
der to make a payment to the departing concession holder
the basis of estimates carried out by consulting actuaries,
prompted management to review the depreciation schedu-
who use a combination of statistical and actuarial elements
les for assets classified as to be relinquished free of charge
in their calculations, including statistical data on past ye-
prior to Law 134/2012 (until the year ended on December
ars and forecasts of future costs. Other components of
31, 2011, given that the assets were to be relinquished free
the estimation that are considered include mortality and
of charge, the depreciation period was equal to the closest
retirement rates as well as assumptions concerning future
date between the term of the concession and the end of the
developments in discount rates, the rate of wage increases,
useful life of the individual asset), calculating depreciation no
the inflation rate and trends in healthcare cost.
longer over the term of the concession but, if longer, over
These estimates can differ significantly from actual deve-
the useful life of the individual assets. If additional informa-
lopments owing to changes in economic and market con-
tion becomes available to enable the calculation of residual
ditions, increases or decreases in retirement rates and the
value, the carrying amounts of the assets involved will be
lifespan of participants, as well as changes in the effective
adjusted prospectively.
cost of healthcare.
Such differences can have a substantial impact on the
Determining the fair value of financial instruments
quantification of pension costs and other related expenses.
The fair value of financial instruments is determined on the
With regard to the COVID-19 pandemic, the Group has ca-
basis of prices directly observable in the market, where
refully analyzed the possible impacts of the economic crisis
available, or, for unlisted financial instruments, using spe-
generated by the emergency on the actuarial assumptions
cific valuation techniques (mainly based on present value)
used in the measurement of the actuarial liabilities and as-
that maximize the use of observable market inputs. In rare
sets serving the plans.
circumstances where this is not possible, the inputs are
For more details on the main actuarial assumptions adop-
estimated by management taking due account of the cha-
ted, please see note 37.
racteristics of the instruments being measured.
For more information on financial instruments measured at
Provisions for risks and charges
fair value, please see note 48 “Assets and liabilities measu-
For more details on provisions for risks and charges, please
red at fair value”.
see note 38 “Provisions for risks and charges”.
In accordance with IFRS 13, the Group includes a mea-
Note 53 “Contingent assets and liabilities” also provides in-
surement of credit risk, both of the counterparty (Credit
formation regarding the most significant contingent liabili-
Valuation Adjustment or CVA) and its own (Debit Valua-
ties for the Group.
tion Adjustment or DVA), in order to adjust the fair value
of financial instruments for the corresponding amount of
Litigation
counterparty risk, using the method discussed in note 48.
The Group is involved in various civil, administrative and tax
Changes in the assumptions made in estimating the input
disputes connected with the normal pursuit of its activities
data could have an impact on the fair value recognized for
that could give rise to significant liabilities. It is not always
those instruments, especially in current conditions where
objectively possible to predict the outcome of these dispu-
markets are volatile and the economic outlook is highly un-
tes. The assessment of the risks associated with this litiga-
certain and subject to rapid change.
tion is based on complex factors whose very nature requi-
Development expenditure
res recourse to management judgments, even when taking
account of the contribution of external advisors assisting
In order to determine the recoverability of development
the Group, about whether to classify them as contingent
expenditure, the recoverable amount is estimated making
liabilities or liabilities.
assumptions regarding any further cash outflow that is
Provisions have been recognized to cover all significant
expected to be incurred before the asset is ready for use
liabilities for cases in which legal counsel feels an adverse
or sale, the discount rates to be applied and the expected
outcome is likely and a reasonable estimate of the amount
period of benefits.
of the expense can be made.
235
Integrated Annual Report 2020 Obligations associated with generation plants, including
asset of a similar value to the right of use asset in a simi-
decommissioning and site restoration
lar economic environment. When no observable inputs are
Generation activities may entail obligations for the ope-
available, the Group estimates the IBR making assumptions
rator with regard to future interventions that will have to
to reflect the terms and conditions of the lease and certain
be performed following the end of the operating life of the
lessee-specific estimates.
plant.
One of the most significant judgments for the Group in
Such interventions may involve the decommissioning of
adopting IFRS 16 is determining this IBR necessary to cal-
plants and site restoration, or other obligations linked to
culate the present value of the lease payments required to
the type of generation technology involved. The nature of
be paid to the lessor. The Group approach to determine an
such obligations may also have a major impact on the ac-
IBR is based on the assessment of the following three key
counting treatment used for them.
components:
In the case of nuclear power plants, where the costs re-
› the risk free rate, that consider the currency flows of the
gard both decommissioning and the storage of waste fuel
lease payments, the economic environment where the
and other radioactive materials, the estimation of the fu-
lease contract has been negotiated and also the lease
ture cost is a critical process, given that the costs will be
term;
incurred over a very long span of time, estimated at up to
› the credit spread adjustment, in order to calculate an IBR
100 years.
that is specific for the lessee considering any underlying
The obligation, based on financial and engineering assu-
Parent or other guarantee;
mptions, is calculated by discounting the expected future
› the lease related adjustments, in order to reflect into the
cash flows that the Group considers it will have to pay to
IBR calculation the fact that the discount rate is direct-
meet the obligations it has assumed.
ly linked to the type of the underlying asset, rather than
The discount rate used to determine the present value of
being a general incremental borrowing rate. In particular,
the liability is the pre-tax risk-free rate and is based on the
the risk of default is mitigated for the lessors as they have
economic parameters of the country in which the plant is
the right to reclaim the underlying asset itself.
located.
For more information on lease liabilities, please see note 44
That liability is quantified by management on the basis of
“Financial instruments by category”.
the technology existing at the measurement date and is re-
viewed each year, taking account of developments in sto-
Income tax
rage, decommissioning and site restoration technology, as
well as the ongoing evolution of the legislative framework
Recovery of deferred tax assets
governing health and environmental protection.
At December 31, 2020, the consolidated financial state-
Subsequently, the value of the obligation is adjusted to
ments report deferred tax assets in respect of tax losses or
reflect the passage of time and any changes in estimates.
tax credits usable in subsequent years and income compo-
Onerous contracts
nents whose deductibility is deferred in an amount whose
future recovery is considered by management to be highly
In order to identify an onerous contract, the Group esti-
probable.
mates the non-discretionary costs necessary to fulfil the
The recoverability of such assets is subject to the achieve-
obligations assumed (including any penalties) under the
ment of future profits sufficient to absorb such tax losses
contract and the economic benefits that are presumed to
and to use the benefits of the other deferred tax assets.
be obtained from the contract.
Leases
Significant management judgment is required to assess
the probability of recovering deferred tax assets, conside-
ring all negative and positive evidence, and to determine
When the interest rate implicit in the lease cannot be readily
the amount that can be recognized, based upon the likely
determined, the Group uses the incremental borrowing rate
timing and the level of future taxable profits together with
(IBR) at the lease commencement date to calculate the pre-
future tax planning strategies and the tax rates applicable
sent value of the lease payments. This is the interest rate that
at the date of reversal. However, where the Group should
the lessee would have to pay to borrow over a similar term,
become aware that it is unable to recover all or part of re-
and with a similar security, the funds necessary to obtain an
cognized tax assets in future years, the consequent adjust-
236236
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements ment would be taken to the profit or loss in the year in which
those returns through its power over the investee. Power is
this circumstance arises.
defined as the current ability to direct the relevant activities
The recoverability of deferred tax assets is reviewed at the
of the investee based on existing substantive rights.
end of each period. Deferred tax assets not recognized are
The existence of control does not depend solely on owner-
reassessed at each reporting date in order to verify the con-
ship of a majority investment, but rather it arises from sub-
ditions for their recognition.
stantive rights that each investor holds over the investee.
Where required, the Group monitored the recovery times of
Consequently, management must use its judgment in asses-
deferred tax assets as well as those relating to the reversal
sing whether specific situations determine substantive rights
of deductible temporary differences, if any, as a result of the
that give the Group the power to direct the relevant activities
greater uncertainty caused by the COVID-19 pandemic.
of the investee in order to affect its returns.
For more detail in deferred tax assets recognized or not re-
For the purpose of assessing control, management analyzes
cognized, please see note 23.
all facts and circumstances including any agreements with
Management judgment
other investors, rights arising from other contractual arran-
gements and potential voting rights (call options, warrants,
put options granted to non-controlling shareholders, etc.).
Identification of cash generating units (CGUs)
These other facts and circumstances could be especially si-
For impairment testing, if the recoverable amount cannot be
gnificant in such assessment when the Group holds less than
determined for an individual asset, the Group identifies the
a majority of voting rights, or similar rights, in the investee.
smallest group of assets that generate largely independent
Following such analysis of the existence of control, in appli-
cash inflows. The smallest group of assets that generates
cation of IFRS 10 the Group consolidated certain companies
cash inflows that are largely independent of the cash inflows
(Emgesa and Codensa) on a line-by-line basis even though it
from other assets or group of assets is a CGU.
did not hold more than half of the voting rights, determining
Identifying such CGUs involves management judgments re-
that the requirements for de facto control existed.
garding the specific nature of the assets and the business
Furthermore, even if it holds more than half of the voting rights
involved (geographical segment, business segment, regula-
in another entity, the Group considers all the relevant facts and
tory framework, etc.) and the evidence that the cash inflows
circumstances in assessing whether it controls the investee.
of the group of assets are closely interdependent and lar-
The Group reassesses whether or not it controls an investee
gely independent of those associated with other assets (or
if facts and circumstances indicate that there are changes
groups of assets).
to one or more of the elements considered in verifying the
The assets of each CGU are also identified on the basis of the
existence of control.
manner in which management manages and monitors those
assets within the business model adopted.
Determination of the existence of joint control and of the
The number and scope of the CGUs are updated systema-
type of joint arrangement
tically to reflect the impact of new business combinations
Under the provisions of IFRS 11, a joint arrangement is an
and reorganizations carried out by the Group, and to take
agreement where two or more parties have joint control. Joint
account of external factors that could influence the ability of
control exists only when the decisions over the relevant acti-
assets to generate independent cash inflows.
vities require the unanimous consent of all the parties that
In particular, if certain specific identified assets owned by
share joint control.
the Group are impacted by adverse economic or operating
A joint arrangement can be configured as a joint venture or
conditions that undermine their capacity to contribute to the
a joint operation. Joint ventures are joint arrangements whe-
generation of cash flows, they can be isolated from the rest
reby the parties that have joint control have rights to the net
of the assets of the CGU, undergo separate analysis of their
assets of the arrangement. Conversely, joint operations are
recoverability and be impaired where necessary.
joint arrangements whereby the parties that have joint con-
The CGUs identified by management to which the goodwill
trol have rights to the assets and obligations for the liabilities
recognized in these consolidated financial statements has
relating to the arrangement.
been allocated and the criteria used to identify the CGUs are
In order to determine the existence of the joint control and
indicated in note 22 “Goodwill”.
the type of joint arrangement, management must apply ju-
Determination of the existence of control
arrangement. For this purpose, the management considers
Under the provisions of IFRS 10, control is achieved when the
the structure and legal form of the arrangement, the terms
Group is exposed, or has rights, to variable returns from its
agreed by the parties in the contractual arrangement and,
involvement with the investee and has the ability to affect
when relevant, other facts and circumstances.
dgment and assess its rights and obligations arising from the
237
Integrated Annual Report 2020 Following that analysis, the Group has considered its inte-
in the infrastructure at the end of the term of the arran-
rest in Asociación Nuclear Ascó-Vandellós II as a joint ope-
gement.
ration.
In assessing the applicability of these requirements for the
The Group re-assesses whether or not it has joint control
Group, as operator, management carefully analyzed exi-
if facts and circumstances indicate that changes have oc-
sting concessions.
curred in one or more of the elements considered in veri-
On the basis of that analysis, the provisions of IFRIC 12 are
fying the existence of joint control and the type of the joint
applicable to some of the infrastructure of a number of
arrangement.
companies that operate in Brazil.
For more information on the Group’s investments in joint ven-
Further details about the infrastructure used in the service
tures, please see note 24 “Equity-accounted investments”.
concession arrangements in the scope of IFRIC 12 are pro-
Determination of the existence of significant influence
vided in note 18.
over an associate
Revenue from contracts with customers
Associates are those in which the Group exercises signifi-
In the process of applying IFRS 15, the Group has made the
cant influence, i.e. the power to participate in the financial
following judgments (further details about the most signifi-
and operating policy decisions of the investee but not exer-
cant effect on the Group’s revenue are provided in note 9.a
cise control or joint control over those policies. In general,
“Revenue from sales and services”).
it is presumed that the Group has a significant influence
Furthermore, during the year, the Group carefully monito-
when it has an ownership interest of 20% or more.
red the effects of the uncertainties linked to the COVID-19
In order to determine the existence of significant influence,
pandemic on the recognition of its revenue, in particular as
management must apply judgment and consider all facts
regards the main areas affected by significant judgments.
and circumstances.
The Group re-assesses whether or not it has significant in-
Identification of the contract
fluence if facts and circumstances indicate that there are
The Group carefully analyzes the contractual terms and
changes to one or more of the elements considered in ve-
conditions on a jurisdictional level in order to determine
rifying the existence of significant influence.
when a contract exists and the terms of that contract’s en-
For more information on the Group’s equity investments in
forceability so as to apply IFRS 15 only to such contracts.
associates, please see note 24 “Equity-accounted invest-
ments”.
Identification and satisfaction of performance obligations
When a contract includes multiple promised goods or servi-
Application of “IFRIC 12 - Service concession
ces, in order to assess if they should be accounted for sepa-
arrangements” to concessions
rately or as a group, the Group considers both the individual
IFRIC 12 applies to “public-to-private” service concession
characteristics of goods/services and the nature of the pro-
arrangements, which can be defined as contracts under
mise within the context of the contract, also evaluating all
which the operator is obligated to provide public services,
the facts and circumstances relating to the specific contract
i.e. give access to major economic and social services for
under the relevant legal and regulatory framework.
a certain period of time, on behalf of a public entity (the
To evaluate when a performance obligation is satisfied, the
grantor). In these contracts, the grantor conveys to an ope-
Group evaluates when the control of the goods or services
rator the right to manage the infrastructure used to provi-
is transferred to the customer, assessed primarily from the
de services.
perspective of the customer.
More specifically, IFRIC 12 gives guidance on the accoun-
ting by operators for “public-to-private” service conces-
Determination of the transaction price
sion arrangements in the event that:
The Group considers all relevant facts and circumstances
› the grantor controls or regulates what services the ope-
in determining whether a contract includes variable con-
rator must provide with the infrastructure, to whom it
sideration (i.e., consideration that may vary or depends
must provide them, and at what price; and
upon the occurrence or non-occurrence of a future event).
› the grantor controls – through ownership, beneficial en-
In estimating variable consideration, the Group uses the
titlement or otherwise – any significant residual interest
method that better predicts the consideration to which
238238
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements it will be entitled, applying it consistently throughout the
Classification and measurement of financial assets
contract and for similar contracts, also considering all avai-
At initial recognition, in order to classify financial assets
lable information, and updating such estimates until the
as financial assets at amortized cost, at fair value through
uncertainly is resolved. The Group includes the estimated
other comprehensive income and at fair value through pro-
variable consideration in the transaction price only to the
fit or loss, management assesses both the contractual ca-
extent that it is highly probable that a significant reversal in
sh-flow characteristics of the instrument and the business
the cumulative revenue recognized will not occur when the
model for managing financial assets in order to generate
uncertainty is resolved.
cash flows.
For the purpose of evaluating the contractual cash-flow
Principal versus agent assessment
characteristics of the instrument, management performs
The Group considers that it is an agent in some contracts in
the SPPI test at an instrument level, in order to determine if
which it is not primarily responsible for fulfilling the contract
it gives rise to cash flows that are solely payments of princi-
and therefore it does not control goods or services before
pal and interest (SPPI) on the principal amount outstanding,
they are being transferred to customers. For example, the
performing specific assessment on the contractual clauses
Group acts as an agent in some contracts for electricity/
of the financial instruments, as well as quantitative analysis,
gas network connection services and other related activi-
if required.
ties depending on local legal and regulatory framework.
The business model determines whether cash flows will
Allocation of transaction price
nancial assets, or both.
For contracts that have more than one performance obli-
For more details, please see note 44 “Financial instruments
result from collecting contractual cash flows, selling the fi-
gation (e.g., “bundled” sale contracts), the Group generally
by category”.
allocates the transaction price to each performance obli-
gation in proportion to its stand-alone selling price. The
Hedge accounting
Group determines stand-alone selling prices considering
Hedge accounting is applied to derivatives in order to
all information and using observable prices when they
reflect into the financial statements the effect of risk ma-
are available in the market or, if not, using an estimation
nagement strategies.
method that maximizes the use of observable inputs and
Accordingly, at the inception of the transaction the Group
applying it consistently to similar arrangements.
documents the hedge relationship between hedging in-
If the Group evaluates that a contract includes an option
struments and hedged items, as well as its risk manage-
for additional goods or services (e.g., customer loyalty pro-
ment objectives and strategy. The Group also assesses,
grams or renewal options) that represents a material right,
both at hedge inception and on an ongoing basis, whether
it allocates the transaction price to this option since the
hedging instruments are highly effective in offsetting chan-
option gives rise to an additional performance obligation.
ges in the fair values or cash flows of hedged items.
Contract costs
On the basis of management’s judgment, the effectiveness
assessment based on the existence of an economic rela-
The Group assesses recoverability of the incremental costs
tionship between the hedging instruments and the hedged
of obtaining a contract either on a contract-by-contract
items, the dominance of credit risk in the changes in fair
basis, or for a group of contracts if those costs are asso-
value and the hedge ratio, as well as the measurement of
ciated with the group of contracts.
the ineffectiveness, is evaluated through a qualitative as-
The Group supports the recoverability of such costs on the
sessment or a quantitative computation, depending on the
basis of its experience with other similar transactions and
specific facts and circumstances and on the characteristi-
evaluating various factors, including potential renewals,
cs of the hedged items and the hedging instruments.
amendments and follow-on contracts with the same cu-
For cash flow hedges of forecast transactions designated
stomer.
as hedged items, management assesses and documents
The Group amortizes such costs over the average customer
that they are highly probable and present an exposure to
term. In order to determine this expected period of benefit
changes in cash flows that affect profit or loss.
from the contract, the Group considers its past experien-
Furthermore, during the year, the Group carefully monito-
ce (e.g., “churn rate”), the predictive evidence from similar
red the possible effects of the uncertainties linked to the
contracts and available information about the market.
COVID-19 pandemic on its hedging relationships.
For additional details on the key assumptions about effecti-
veness assessment and ineffectiveness measurement, ple-
ase refer to note 47.1 “Derivatives and hedge accounting”.
239
Integrated Annual Report 2020 Leases
2.2 Significant accounting policies
The complexity of the assessment of the lease contracts,
and also their long-term expiring date, requires conside-
rable professional judgments for application of IFRS 16. In
particular, this regards:
Related parties
Related parties are mainly parties that have the same pa-
rent entity as Enel SpA, companies that directly or indirectly
› the application of the definition of a lease to the cases
through one or more intermediaries control, are controlled
typical of the sectors in which the Group operates;
or are subject to the joint control of Enel SpA and in which
› the identification of the non-lease component into the
the latter has a holding that enables it to exercise significant
lease arrangements;
influence. Related parties also include entities that operate
› the evaluation of any renewable and termination options
post-employment benefit plans for employees of Enel SpA
included in the lease in order to determine the term of
or its associates (specifically, the FOPEN and FONDENEL
leases, also considering the probability of their exercise
pension funds), as well as the members of the boards of
and any significant leasehold improvements on the un-
statutory auditors, and their immediate family, and the key
derlying asset, taking due consideration of recent inter-
management personnel, and their immediate family, of Enel
pretations issued by the IFRS Interpretations Committee;
SpA and its subsidiaries. Key management personnel com-
› the identification of any variable lease payments that
prises management personnel who have the power and di-
depend on an index or a rate to determine whether the
rect or indirect responsibility for the planning, management
changes of the latter impact the future lease payments
and control of the activities of the Company. They include
and also the amount of the right-of-use asset;
directors.
› the estimate of the discount rate to calculate the present
value of the lease payments; further details on assump-
tions about this rate are provided in the paragraph “Use
Subsidiaries
Subsidiaries are all entities over which the Group has con-
of estimates”.
trol. The Group controls an entity, regardless of the nature
For more information on leases, please see note 19 “Leases”.
of the formal relationship between them, when it is expo-
Uncertainty over income tax treatments
sed, or has rights, to variable returns deriving from its in-
volvement and has the ability, through the exercise of its
The Group determines whether to consider each uncertain
power over the investee, to affect its returns.
income tax treatment separately or together with one or
The figures of the subsidiaries are consolidated on a full
more other uncertain tax treatments as well as whether
line-by-line basis as from the date control is acquired until
to reflect the effect of uncertainty by using the most likely
such control ceases.
amount or the expected value method, based on which ap-
proach better predicts the resolution of the uncertainty for
each uncertain tax treatments, taking account of local tax
Consolidation procedures
The financial statements of subsidiaries used to prepare
regulations.
the consolidated financial statements were prepared at
The Group makes significant use of professional judgment
December 31, 2020 in accordance with the accounting
in identifying uncertainties about income tax treatments and
policies adopted by the Group.
reviews the judgments and estimates made in the event of
If a subsidiary uses different accounting policies from tho-
a change in facts and circumstances that could change its
se adopted in preparing the consolidated financial state-
assessment of the acceptability of a specific tax treatment
ments for similar transactions and facts in similar circu-
or the estimate of the effects of uncertainty, or both.
mstances, appropriate adjustments are made to ensure
For more information on income taxes, please see note 15
conformity with Group accounting policies.
“Income taxes”.
240240
Assets, liabilities, revenue and expenses of a subsidiary
acquired or disposed of during the year are included in
or excluded from the consolidated financial statements,
respectively, from the date the Group gains control or until
the date the Group ceases to control the subsidiary.
Profit or loss for the year and the other comprehensi-
ve income are attributed to the owners of the Parent and
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements non-controlling interests, even if this results in a loss for
of these changes is recognized in the Group’s other com-
non-controlling interests.
prehensive income.
All intercompany assets and liabilities, equity item, revenue,
Distributions received from joint venture and associates re-
expenses and cash flows relating to transactions between
duce the carrying amount of the investments.
entities of the Group are eliminated in full.
Gains and losses resulting from transactions between the
Changes in ownership interest in subsidiaries that do not
Group and the associates or joint ventures are eliminated
result in loss of control are accounted for as equity tran-
to the extent of the interest in the associate or joint venture.
sactions, with the carrying amounts of the controlling and
The financial statements of the associates or joint ventures
non-controlling interests adjusted to reflect changes in
are prepared for the same reporting period as the Group.
their interests in the subsidiary. Any difference between
When necessary, adjustments are made to bring the ac-
the amount to which non-controlling interests are adjusted
counting policies in line with those of the Group.
and the fair value of the consideration paid or received is
After application of the equity method, the Group deter-
recognized in consolidated equity.
mines whether it is necessary to recognize an impairment
When the Group ceases to have control over a subsidiary,
loss on its investment in an associate or joint venture. If
any interest retained in the entity is remeasured to its fair
there is objective evidence of a loss of value, the assets
value, recognized through profit or loss, at the date when
undergo impairment testing pursuant to IAS 36. For more
control is lost, recognizing any gain or loss from the loss
information on impairment, please see the section “Impair-
of control through profit or loss. In addition, any amoun-
ment of non-financial assets” in note 2.1 “Use of estimates
ts previously recognized in other comprehensive income
and management judgment”.
in respect of the former subsidiary are accounted for as
If the investment ceases to be an associate or a joint ven-
if the Group had directly disposed of the related assets or
ture, the Group recognizes any retained investment at its
liabilities.
Investments in associates and joint ventures
An associate is an entity over which the Group has signifi-
fair value, through profit or loss. Any amounts previously
recognized in other comprehensive income in respect of
the former associate or joint venture are accounted for as
if the Group had directly disposed of the related assets or
cant influence. Significant influence is the power to parti-
liabilities.
cipate in decisions concerning the financial and operating
If the ownership interest in an associate or a joint venture is
policies of the investee without having control or joint con-
reduced, but the Group continues to exercise a significant
trol over the investee.
influence or joint control, the Group continues to apply the
A joint venture is a joint arrangement over which the Group
equity method and the share of the gain or loss that had
exercises joint control and has rights to the net assets of
previously been recognized in other comprehensive in-
the arrangement. Joint control is the sharing of control
come relating to that reduction is accounted for as if the
of an arrangement, whereby decisions about the relevant
Group had directly disposed of the related assets or liabi-
activities require unanimous consent of the parties sharing
lities.
control.
When a portion of an investment in an associate or joint
venture meets the criteria to be classified as held for sale,
The Group’s investments in associates and joint ventures
any retained portion of an investment in the associate or
are accounted for using the equity method.
joint venture that has not been classified as held for sale is
Under the equity method, these investments are initially
accounted for using the equity method until disposal of the
recognized at cost and any goodwill arising from the diffe-
portion classified as held for sale takes place.
rence between the cost of the investment and the Group’s
Joint operations are joint arrangements whereby the Group,
share of the net fair value of the investee’s identifiable as-
which holds joint control, has rights to the assets and obli-
sets and liabilities at the acquisition date is included in the
gations for the liabilities relating to the arrangement. For
carrying amount of the investment. Goodwill is not indivi-
each joint operation, the Group recognized assets, liabili-
dually tested for impairment.
ties, costs and revenue on the basis of the provisions of the
After the acquisition date, their carrying amount is adju-
arrangement rather than the interest held.
sted to recognize changes in the Group’s share of profit
Where there is an increase in the interest in a joint arrange-
or loss of the associate or joint venture in Group profit or
ment that meets the definition of a business:
loss. Adjustments to the carrying amount may also be ne-
› if the Group acquires control, and had rights over the as-
cessary following changes in the Group’s share in the as-
sets and obligations for the liabilities of the joint arrange-
sociate or joint venture as a result of changes in the other
ment immediately before the acquisition date, then the
comprehensive income of the investee. The Group’s share
transaction represents a business combination achieved
241
Integrated Annual Report 2020 in stages. Consequently, the Group applies the require-
the financial statements of consolidated companies with
ments for a business combination achieved in stages,
functional currencies other than the presentation currency
including the remeasurement of the interest it held pre-
used in the consolidated financial statements are transla-
viously in the joint operation at its fair value at the acqui-
ted into euros by applying the closing exchange rate to the
sition date;
assets and liabilities, including goodwill and consolidation
› if the Group obtains joint control (i.e., it already had an
adjustments, and the average exchange rate for the period
interest in a joint operation without holding joint control),
to the income statement items on the condition it approxi-
the interest previously held in the joint operation shall not
mates the exchange rates prevailing at the date of the re-
be remeasured.
spective transactions.
For more information on the Group’s investments in asso-
Any resulting exchange gains or losses are recognized as a
ciates and joint ventures, please see note 24 “Equity-ac-
separate component of equity in a special reserve. The gains
counted investments”.
and losses are recognized proportionately in the income sta-
tement on the disposal (partial or total) of the subsidiary.
Translation of foreign currency items
Transactions in currencies other than the functional cur-
When the functional currency of a consolidated company is
the currency of a hyperinflationary economy, the Group re-
rency are initially recognized at the spot exchange rate pre-
states the financial statements in accordance with IAS 29 be-
vailing on the date of the transaction.
fore applying the specific conversion method set out below.
Monetary assets and liabilities denominated in a foreign
In order to consider the impact of hyperinflation on the lo-
currency other than the functional currency are subse-
cal currency exchange rate, the financial position and per-
quently translated using the closing exchange rate (i.e. the
formance (i.e. assets, liabilities, equity items, revenue and
spot exchange rate prevailing at the reporting date).
expenses) of a company whose functional currency is the
Non-monetary assets and liabilities denominated in foreign
currency of a hyperinflationary economy are translated
currency that are recognized at historical cost are transla-
into the Group’s presentation currency (the euro) using
ted using the exchange rate at the date of the transaction.
the exchange rate prevailing at the reporting date, except
Non-monetary assets and liabilities in foreign currency me-
for comparative amounts presented in the previous year’s
asured at fair value are translated using the exchange rate
financial statements which are not adjusted for subse-
at the date the fair value was determined.
quent changes in the price level or subsequent changes in
Any exchange differences are recognized through profit or
exchange rates.
loss.
In determining the spot exchange rate to use on initial re-
cognition of the related asset, expense or income (or part
Business combinations
Business combinations initiated before January 1, 2010 and
of it) on the derecognition of a non-monetary asset or
completed within that financial year are recognized on the
non-monetary liability relating to advance consideration
basis of IFRS 3 (2004).
in foreign currency paid or received, the date of the tran-
Such business combinations were recognized using the
saction is the date on which the Group initially recognizes
purchase method, where the purchase cost is equal to the
the non-monetary asset or non-monetary liability associa-
fair value at the date of the exchange of the assets acquired
ted with the advance consideration.
and the liabilities incurred or assumed, plus costs directly
If there are multiple advance payments or receipts, the
attributable to the acquisition. This cost was allocated by
Group determines the transaction date for each payment
recognizing the assets, liabilities and identifiable contin-
or receipt of advance consideration.
gent liabilities of the acquired company at their fair values.
Translation of financial statements denominated
in a foreign currency
For the purposes of the consolidated financial statemen-
Any positive difference between the cost of the acquisition
and the fair value of the net assets acquired attributable
to the owners of the Parent was recognized as goodwill. If
the difference is negative, it is recognized through profit
ts, all revenue, expenses, assets and liabilities are stated in
or loss.
euro, which is the presentation currency of the Parent, Enel
The carrying amount of non-controlling interests was de-
SpA.
termined in proportion to the interest held by non-control-
In order to prepare the consolidated financial statements,
ling shareholders in the net assets. In the case of business
242242
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements combinations achieved in stages, at the date of acquisition
deration is not within the scope of IFRS 9, it is measured
any adjustment to the fair value of the net assets acquired
in accordance with the appropriate IFRS-EU. Contingent
previously was recognized in equity; the amount of goo-
consideration that is classified as equity is not re-measu-
dwill was determined for each transaction separately based
red, and its subsequent settlement is accounted for within
on the fair values of the acquiree’s net assets at the date of
equity.
each exchange transaction.
If the fair values of the assets, liabilities and contingent lia-
bilities can only be calculated on a provisional basis, the bu-
Business combinations carried out as from January 1, 2010
siness combination is recognized using such provisional va-
are recognized on the basis of IFRS 3 (2008), which is refer-
lues. Any adjustments resulting from the completion of the
red to as IFRS 3 (Revised) hereafter.
measurement process are recognized within 12 months of
More specifically, business combinations are recognized
the date of acquisition, restating comparative figures.
using the acquisition method, where the purchase cost
(the consideration transferred) is equal to the fair value at
the purchase date of the assets acquired and the liabilities
Fair value measurement
For all fair value measurements and disclosures of fair va-
incurred or assumed, as well as any equity instruments is-
lue, that are either required or permitted by IFRS, the Group
sued by the purchaser. The consideration transferred in-
applies IFRS 13.
cludes the fair value of any asset or liability resulting from a
Fair value is defined as the price that would be received to
contingent consideration arrangement.
sell an asset or paid to transfer a liability, in an orderly tran-
Costs directly attributable to the acquisition are recogni-
saction, between market participants, at the measurement
zed through profit or loss.
date (i.e. an exit price).
The consideration transferred is allocated by recognizing
The fair value measurement assumes that the transaction
the assets, liabilities and identifiable contingent liabilities of
to sell an asset or transfer a liability takes place in the prin-
the acquired company at their fair values as at the acquisi-
cipal market, i.e. the market with the greatest volume and
tion date. The excess of the consideration transferred, me-
level of activity for the asset or liability. In the absence of a
asured at fair value as at the acquisition date, the amount
principal market, it is assumed that the transaction takes
of any non-controlling interest in the acquiree plus the fair
place in the most advantageous market to which the Group
value of any equity interest in the acquiree previously held
has access, i.e. the market that maximizes the amount that
by the Group (in a business combination achieved in sta-
would be received to sell the asset or minimizes the amount
ges) over the net amount of the identifiable assets acqui-
that would be paid to transfer the liability.
red and the liabilities incurred or assumed measured at fair
The fair value of an asset or a liability is measured using the
value is recognized as goodwill. If the difference is negati-
assumptions that market participants would use when pri-
ve, the Group verifies whether it has correctly identified all
cing the asset or liability, assuming that market participants
the assets acquired and liabilities assumed and reviews the
act in their economic best interest. Market participants are
procedures used to determine the amounts to recognize
independent, knowledgeable sellers and buyers who are
at the acquisition date. If after this assessment the fair va-
able to enter into a transaction for the asset or the liability
lue of the net assets acquired still exceeds the total consi-
and who are motivated but not forced or otherwise com-
deration transferred, this excess represents the profit on a
pelled to do so.
bargain purchase and is recognized through profit or loss.
When measuring fair value, the Group takes into account
The carrying amount of non-controlling interests is deter-
the characteristics of the asset or liability, in particular:
mined either in proportion to the interest held by non-con-
› for a non-financial asset, a fair value measurement ta-
trolling shareholders in the net identifiable assets of the
kes into account a market participant’s ability to generate
acquiree or at their fair value as at the acquisition date.
economic benefits by using the asset in its highest and
In the case of business combinations achieved in stages, at
best use or by selling it to another market participant that
the date of acquisition of control the previously held equi-
would use the asset in its highest and best use;
ty interest in the acquiree is remeasured to fair value and
› for liabilities and own equity instruments, the fair value
any positive or negative difference is recognized in profit
reflects the effect of non-performance risk, i.e. the risk
or loss.
that an entity will not fulfill an obligation, including among
Any contingent consideration is recognized at fair value at
others the credit risk of the Group itself;
the acquisition date. Subsequent changes to the fair value
› in the case of groups of financial assets and financial liabi-
of the contingent consideration classified as an asset or a
lities with offsetting positions in market risk or credit risk,
liability, or as a financial instrument within the scope of IFRS
managed on the basis of an entity’s net exposure to such
9, are recognized in profit or loss. If the contingent consi-
risks, it is permitted to measure fair value on a net basis.
243
Integrated Annual Report 2020 In measuring the fair value of assets and liabilities, the
ful life, which is reviewed annually. Any changes in depre-
Group uses valuation techniques that are appropriate in
ciation criteria shall be applied prospectively. Depreciation
the circumstances and for which sufficient data are avai-
begins when the asset is available for use.
lable, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
The estimated useful life of the main items of property,
Property, plant and equipment
Property, plant and equipment is stated at cost, net of
Civil buildings
10-70 years
accumulated depreciation and accumulated impairment
Buildings and civil works incorporated in plants
10-100 years
plant and equipment is as follows:
losses, if any. Such cost includes expenses directly attribu-
table to bringing the asset to the location and condition
necessary for its intended use.
The cost is also increased by the present value of the esti-
mate of the costs of decommissioning and restoring the
site on which the asset is located where there is a legal or
constructive obligation to do so. The corresponding liability
is recognized under provisions for risks and charges. The
accounting treatment of changes in the estimate of these
costs, the passage of time and the discount rate is discus-
sed under “Provisions for risks and charges”.
Hydroelectric power plants:
- penstock
- mechanical and electrical machinery
- other fixed hydraulic works
Thermal power plants:
- boilers and auxiliary components
- gas turbine components
- mechanical and electrical machinery
- other fixed hydraulic works
Nuclear power plants
Geothermal power plants:
- cooling towers
Property, plant and equipment transferred from customers to
- turbines and generators
connect them to the electricity distribution network and/or to
provide them with other related services is initially recognized
- turbine parts in contact with fluid
- mechanical and electrical machinery
at its fair value at the date on which control is obtained.
Borrowing costs that are directly attributable to the acquisi-
tion, construction or production of a qualifying asset, i.e. an
asset that takes a substantial period of time to get ready for
its intended use or sale, are capitalized as part of the cost of
the assets themselves. Borrowing costs associated with the
purchase/construction of assets that do not meet such requi-
rement are expensed in the period in which they are incurred.
Wind power plants:
- towers
- turbines and generators
- mechanical and electrical machinery
Solar power plants:
Public and artistic lighting:
- public lighting installations
- artistic lighting installations
Certain assets that were revalued at the IFRS-EU transition date
Transport lines
or in previous periods are recognized at their fair value, which
Transformer stations
- mechanical and electrical machinery
20-30 years
is considered to be their deemed cost at the revaluation date.
Where individual items of major components of property,
plant and equipment have different useful lives, the com-
ponents are recognized and depreciated separately.
Subsequent costs are recognized as an increase in the car-
rying amount of the asset when it is probable that future
economic benefits associated with the cost incurred to re-
place a part of the asset will flow to the Group and the cost
of the item can be measured reliably. All other costs are
recognized in profit or loss as incurred.
The cost of replacing part or all of an asset is recognized
as an increase in the carrying amount of the asset and is
depreciated over its useful life; the carrying amount of the
replaced unit is derecognized through profit or loss.
Property, plant and equipment, net of its residual value, is
depreciated on a straight-line basis over its estimated use-
244244
Distribution plants:
- high-voltage lines
- primary transformer stations
- low and medium-voltage lines
Meters:
- electromechanical meters
- electricity balance measurement equipment
- electronic meters
The useful life of leasehold improvements is determined
on the basis of the term of the lease or, if shorter, on the
duration of the benefits produced by the improvements
themselves.
Land is not depreciated as it has an indefinite useful life.
Assets recognized under property, plant and equipment
are derecognized either upon their disposal (i.e., at the date
7-85 years
5-60 years
5-100 years
3-59 years
3-59 years
3-59 years
3-62 years
50 years
20-25 years
25-30 years
10-25 years
20-40 years
20-30 years
20-30 years
15-30 years
10-20 years
20 years
12-50 years
20-55 years
10-60 years
5-55 years
5-50 years
3-34 years
3-30 years
6-35 years
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements the recipient obtains control) or when no future economic
required to pay an indemnity. The amount of the indemnity
benefit is expected from their use or disposal. Any gain or
will be determined by agreement of the parties using ap-
loss, recognized through profit or loss, is calculated as the
propriate valuation methods, based on both the carrying
difference between the net disposal proceeds, determined
amount of the assets themselves and their profitability.
in accordance with the transaction price requirements of
In determining the indemnity, such profitability will be re-
IFRS 15, and the carrying amount of the derecognized as-
presented by the present value of future cash flows. The in-
sets.
frastructure serving the concession is owned and available
to the concession holder. It is recognized under “Property,
Assets to be relinquished free of charge
plant and equipment” and is depreciated over the useful
The Group’s plants include assets to be relinquished free
lives of the assets.
of charge at the end of the concessions. These mainly
Enel also operates under administrative concessions for
regard major water diversion works and the public lands
the distribution of electricity in other countries (including
used for the operation of the thermal power plants.
Spain and Romania). These concessions give the right to
Within the Italian regulatory framework in force until 2011,
build and operate distribution networks for an indefinite
if the concessions are not renewed, at those dates all inta-
period of time.
ke and governing works, penstocks, outflow channels and
other assets on public lands were to be relinquished free
of charge to the State in good operating condition. Ac-
cordingly, depreciation on assets to be relinquished was
Infrastructure within the scope of “IFRIC 12 -
Service concession arrangements”
Under a “public-to-private” service concession arrange-
calculated over the shorter of the term of the concession
ment within the scope of “IFRIC 12 - Service concession
and the remaining useful life of the assets.
arrangements” the operator acts as a service provider
In the wake of the legislative changes introduced with Law
and, in accordance with the terms specified in the con-
134 of August 7, 2012, the assets previously classified as
tract, it constructs/upgrades infrastructure used to pro-
assets “to be relinquished free of charge” connected with
vide a public service and/or operates and maintains that
the hydroelectric water diversion concessions are now
infrastructure for the years of the concession.
considered in the same manner as other categories of
The Group, as operator, does not account for the infra-
“property, plant and equipment” and are therefore depre-
structure within the scope of IFRIC 12 as property, plant
ciated over the useful life of the asset (where this exceeds
and equipment and it recognizes and measures revenue
the term of the concession), as discussed in the section
in accordance with IFRS 15 for the services it performs. In
above on the “Depreciable amount of certain elements of
particular, when the Group provides construction or up-
Italian hydroelectric plants subsequent to enactment of
grade services, depending on the characteristics of the
Law 134/2012”, which you are invited to consult for more
service concession arrangement, it recognizes:
details.
› a financial asset, if the Group has an unconditional con-
tractual right to receive cash or another financial asset
In accordance with Spanish laws 29/1985 and 46/1999,
from the grantor (or from a third party at the direction
hydroelectric power stations in Spanish territory operate
of the grantor), that is the grantor has little discretion
under administrative concessions at the end of which the
to avoid payment. In this case, the grantor contractually
plants will be returned to the government in good opera-
guarantees to pay to the operator specified or determi-
ting condition. The terms of the concessions extend up
nable amounts or the shortfall between the amounts re-
to 2067.
ceived from the users of the public service and specified
A number of generation companies that operate in Argen-
or determinable amounts (defined by the contract), and
tina, Brazil and Mexico hold administrative concessions
such payments are not dependent on the usage of the
with similar conditions to those applied under the Spanish
infrastructure; and/or
concession system. These concessions will expire in 2088.
› an intangible asset, if the Group receives the right (a li-
cense) to charge users of the public service provided. In
Infrastructure serving a concession not within the scope
such a case, the operator does not have an unconditional
of “IFRIC 12 - Service concession arrangements”
right to receive cash because the amounts are contin-
As regards the distribution of electricity, the Group is a
gent on the extent that the public uses the service.
concession holder in Italy for this service. The concession,
If the Group (as operator) has a contractual right to receive
granted by the Ministry for Economic Development, was is-
an intangible asset (a right to charge users of public servi-
sued free of charge and terminates on December 31, 2030.
ce), borrowing costs are capitalized using the criteria spe-
If the concession is not renewed upon expiry, the grantor is
cified in the paragraph “Property, plant and equipment”.
245
Integrated Annual Report 2020 However, for construction/upgrade services, both types
If the lease transfers ownership of the underlying asset to
of consideration are generally classified as a contract as-
the Group at the end of the lease term or if the cost of the
set during the construction/upgrade period.
right-of-use asset reflects the fact that the Group will exer-
For more details about such consideration, please see
cise a purchase option, depreciation is calculated using the
note 9.a “Revenue from sales and services”.
estimated useful life of the underlying asset.
Leases
The Group holds property, plant and equipment for its
In addition, the right-of-use assets are subject to impair-
ment and adjusted for any remeasurement of lease liabi-
lities.
various activities under lease contracts. At inception of a
The lease liability is initially measured at the present value
contract, the Group assesses whether a contract is, or con-
of lease payments to be made over the lease term. In calcu-
tains, a lease.
lating the present value of lease payments, the Group uses
For contracts entered into or changed on or after January 1,
the lessee’s incremental borrowing rate at the lease com-
2019, the Group has applied the definition of a lease under
mencement date when the interest rate implicit in the lease
IFRS 16, that is met if the contract conveys the right to control
is not readily determinable.
the use of an identified asset for a period of time in exchange
Variable lease payments that do not depend on an index
for consideration.
or a rate are recognized as expenses in the period in which
Conversely, for contracts entered into before January 1,
the event or condition that triggers the payment occurs.
2019, the Group determined whether the arrangement was
After the commencement date, the lease liability is measu-
or contained a lease under IFRIC 4.
red at amortized cost using the effective interest method
Group as a lessee
and is remeasured upon the occurrence of certain events.
The Group applies the short-term lease recognition
At commencement or on modification of a contract that
exemption to its lease contracts that have a lease term of
contains a lease component and one or more additional
12 months or less from the commencement date. It also
lease or non-lease components, the Group allocates the
applies the low-value assets recognition exemption to lea-
consideration in the contract to each lease component on
se contracts for which the underlying asset is of low-value
the basis of its relative stand-alone price.
whose amount is estimated not material. For example, the
The Group recognizes a right-of-use asset and a lease lia-
Group has leases of certain office equipment (i.e., personal
bility at the commencement date of the lease (i.e., the date
computers, printing and photocopying machines) that are
the underlying asset is available for use).
considered of low-value. Lease payments on short-term
The right-of-use asset represents a lessee’s right to use an
leases and leases of low-value assets are recognized as
underlying asset for the lease term; it is initially measured
expense on a straight-line basis over the lease term.
at cost, which includes the initial amount of lease liability
The Group presents right-of-use assets that do not meet
adjusted for any lease payments made at or before the
the definition of investment property in “Property, plant and
commencement date less any lease incentives received,
equipment” and lease liabilities in “Borrowings”.
plus any initial direct costs incurred and an estimate of co-
Consistent with the requirement of the standard, the Group
sts to dismantle and remove the underlying asset and to re-
presents separately the interest expense on lease liabilities
store the underlying asset or the site on which it is located.
under “Other financial expense” and the depreciation char-
Right-of-use assets are subsequently depreciated on a
ge on the right-of-use assets under “Depreciation, amorti-
straight-line basis over the shorter of the lease term and
zation and impairment losses”.
the estimated useful lives of the right-of-use assets, as fol-
lows:
Buildings
Ground rights of renewable energy
plants
Vehicles and other means of
transport
246246
Average residual life (years)
7
30
5
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Group as a lessor
asset only when Group can demonstrate the technical fe-
When the Group acts as a lessor, it determines at the lease
asibility of completing the asset, its intention and ability to
inception date whether each lease is a finance lease or an
complete development and to use or sell the asset and the
operating lease.
availability of resources to complete the asset.
Leases in which the Group essentially transfers all the risks
Research costs are recognized as expenses.
and rewards associated with ownership of the underlying
Intangible assets with a finite useful life are recognized net of
asset are classified as finance leases; otherwise, they are
accumulated amortization and any impairment losses.
classified as operating leases. To make this assessment,
Amortization is calculated on a straight-line basis over the
the Group considers the indicators provided by IFRS 16. If
item’s estimated useful life, which is reassessed at least an-
a contract contains lease and non-lease components, the
nually; any changes in amortization policies are reflected on
Group allocates the consideration in the contract applying
a prospective basis. Amortization commences when the as-
IFRS 15.
set is ready for use. Consequently, intangible assets not yet
The Group accounts for rental income arising from opera-
available for use are not amortized, but are tested for impair-
ting leases on a straight-line basis over the lease terms and
ment at least annually.
it recognizes it as other revenue.
The Group’s intangible assets have a finite useful life, with the
Investment property
Investment property consists of the Group’s real estate held
exception of a number of concessions and goodwill.
Intangible assets with indefinite useful lives are not amorti-
zed, but are tested for impairment annually.
to earn rentals and/or for capital appreciation rather than
The assessment of indefinite useful life is reviewed annually
for use in the production or supply of goods and services.
to determine whether the indefinite useful life continues to
Investment property is measured at acquisition cost less
be supportable. If not, the change in useful life from indefinite
any accumulated depreciation and any accumulated im-
to finite is accounted for as a change in accounting estimate.
pairment losses.
Intangible assets are derecognized either at the time of their
Investment property, excluding land, is depreciated on a
disposal (at the date when the recipient obtains control) or
straight-line basis over the useful lives of the related assets.
when no future economic benefit is expected from their use
Impairment losses are determined on the basis of the crite-
or disposal. Any gain or loss, recognized through profit or
ria following described.
loss, is calculated as the difference between the net consi-
The breakdown of the fair value of investment property is
deration received in the disposal, determined in accordance
detailed in note 48 “Assets and liabilities measured at fair
with the provisions of IFRS 15 concerning the transaction
value”.
price, and the carrying amount of the derecognized assets.
Investment property is derecognized either when it has
The estimated useful life of the main intangible assets, di-
been transferred (i.e., at the date the recipient obtains con-
stinguishing between internally generated and acquired as-
trol) or when it is permanently withdrawn from use and no
sets, is as follows:
future economic benefit is expected from its disposal. Any
gain or loss, recognized through profit or loss, is calcula-
ted as the difference between the net disposal proceeds,
determined in accordance with the transaction price re-
quirements of IFRS 15, and the carrying amount of the de-
recognized assets.
Transfers are made to (or from) investment property only
when there is a change in use.
Intangible assets
Intangible assets are identifiable assets without physical
substance controlled by the Group and capable of genera-
ting future economic benefits. They are measured at pur-
chase or internal development cost when it is probable that
the use of such assets will generate future economic bene-
fits and the related cost can be reliably determined.
The cost includes any directly attributable expenses neces-
sary to make the assets ready for their intended use.
Development expenditure is recognized as an intangible
Development expenditure:
- internally generated
- acquired
Industrial patents and intellectual property rights:
- internally generated
- acquired
Concessions, licenses, trademarks and similar rights:
- internally generated
- acquired
Intangible assets from service concession arrangements:
- internally generated
- acquired
Other:
- internally generated
- acquired
2-26 years
3-26 years
3-10 years
2-50 years
20 years
1-40 years
-
5 years
2-28 years
1-28 years
247
Integrated Annual Report 2020 The Group also presents costs to obtain a contract with a
CGUs to which goodwill, intangible assets with an indefini-
customer capitalized in accordance with IFRS 15 as intan-
te useful life and intangible assets not yet available for use
gible assets.
are allocated are tested for recoverability annually or more
The Group recognized such costs as an asset only if:
frequently if there is evidence suggesting that the assets
› the costs are incremental, that is they are directly attribu-
can be impaired.
table to an identified contract and the Group would not
If such evidence exists, the recoverable amount of any in-
have incurred them if the contract had not been obtai-
volved asset is estimated on the basis of the use of the as-
ned;
set and its future disposal, in accordance with the Group’s
› the Group expects to recover them, through reimburse-
most recent Business Plan. For the estimate of the recove-
ments (direct recoverability) or the margin (indirect reco-
rable amount, please see note 2.1 “Use of estimates and
verability).
management judgment”.
In particular, the Group generally capitalizes trade fees and
The recoverable amount is determined for an individual as-
commissions paid to agents for such contracts if the capi-
set, unless the asset do not generate cash inflows that are
talization criteria are met.
largely independent of those from other assets or groups
Capitalized customer contract costs are amortized on a sy-
of assets and therefore it is determined for the CGU to whi-
stematic basis, consistent with the pattern of the transfer
ch the asset belongs.
of the goods or services to which they relate, and undergo
If the carrying amount of an asset or of a CGU to which it is
impairment testing to identify any impairment losses to the
allocated is greater than its recoverable amount, an impair-
extent that the carrying amount of the asset recognized
ment loss is recognized in profit or loss and presented under
exceeds the recoverable amount.
“Depreciation, amortization and other impairment losses”.
The Group amortizes the capitalized customer contract
Impairment losses of CGUs are firstly charged against the
costs on a straight-line basis over the expected period of
carrying amount of any goodwill attributed to it and then
benefit from the contract (i.e., the average term of the cu-
against the other assets, in proportion to their carrying
stomer relationship); any changes in amortization policies
amount.
are reflected on a prospective basis.
If the reasons for a previously recognized impairment loss
Goodwill
Goodwill represents the future economic benefits arising
no longer apply, the carrying amount of the asset is restored
through profit or loss, under “Depreciation, amortization and
other impairment losses”, in an amount that shall not exceed
from other assets acquired in a business combination that
the carrying amount that the asset would have had if the im-
are not individually identified and separately recognized.
pairment loss had not been recognized. The original amount
For further details, please see the section of the accounting
of goodwill is not restored even if in subsequent years the
policies “Business combinations”.
reasons for the impairment no longer apply.
Goodwill arising on the acquisition of subsidiaries is reco-
If certain specific identified assets owned by the Group are
gnized separately. After initial recognition, goodwill is not
impacted by adverse economic or operating conditions
amortized, but is tested for impairment at least annually as
that undermine their capacity to contribute to the gene-
part of the CGU to which it pertains.
ration of cash flows, they can be isolated from the rest of
For the purpose of impairment testing, goodwill is alloca-
the assets of the CGU, undergo separate analysis of their
ted, from the acquisition date, to each CGU that is expected
recoverability and be impaired where necessary.
to benefit from the synergies of the combination.
Goodwill relating to equity investments in associates and
joint venture is included in their carrying amount.
Inventories
Inventories are measured at the lower of cost and net re-
alizable value except for inventories involved in trading
Impairment of non-financial assets
At each reporting date, property, plant and equipment, in-
activities, which are measured at fair value with recogni-
tion through profit or loss. Cost is determined on the basis
vestment property, intangible assets, right-of-use assets,
of average weighted cost, which includes related ancillary
goodwill and equity investments in associates/joint ventu-
charges. Net estimated realizable value is the estimated
res are reviewed to determine whether there is evidence of
normal selling price net of estimated costs to sell or, where
impairment.
248248
applicable, replacement cost.
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements For the portion of inventories held to discharge sales that
refers to how it manages its financial assets in order to ge-
have already been made, the net realizable value is deter-
nerate cash flows. The business model determines whether
mined on the basis of the amount established in the con-
cash flows will result from collecting contractual cash flows,
tract of sale.
selling the financial assets, or both.
Inventories include environmental certificates (for example,
For purposes of subsequent measurement, financial assets
green certificates, energy efficiency certificates and Euro-
pean CO2 emissions allowances) that were not utilized for
compliance in the reporting period. As regards CO2 emis-
sions allowances, inventories are allocated between the
are classified in four categories:
› financial assets measured at amortized cost (debt instru-
ments);
› financial assets at fair value through OCI with reclassifi-
trading portfolio and the compliance portfolio, i.e. those
cation of cumulative gains and losses (debt instruments);
used for compliance with greenhouse gas emissions re-
quirements. Within the latter, CO2 emissions allowances are
allocated to sub-portfolios on the basis of the compliance
› financial assets designated at fair value through OCI with
no reclassification of cumulative gains and losses upon
derecognition (equity instruments); and
year to which they have been assigned.
› financial assets at fair value through profit or loss.
Inventories also include nuclear fuel stocks, use of which is
determined on the basis of the electricity generated.
Financial assets measured at amortized cost
Materials and other consumables (including energy com-
This category mainly includes trade receivables, other fi-
modities) held for use in production are not written down
nancial assets and loan assets.
if it is expected that the final product in which they will be
Financial assets at amortized cost are held within a busi-
incorporated will be sold at a price sufficient to enable re-
ness model whose objective is to hold financial assets in
covery of the cost incurred.
Financial instruments
Financial instruments are any contract that gives rise to a
order to collect contractual cash flows and whose con-
tractual terms give rise, on specified dates, to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.
financial asset of one entity and a financial liability or equity
Such assets are initially recognized at fair value, adjusted
instrument of another entity; they are recognized and me-
for any transaction costs, and subsequently measured at
asured in accordance with IAS 32 and IFRS 9.
amortized cost using the effective interest method and are
A financial asset or liability is recognized in the consolida-
subject to impairment.
ted financial statements when, and only when, the Group
Gains and losses are recognized in profit or loss when the
becomes party to the contractual provision of the instru-
asset is derecognized, modified or impaired.
ment (i.e. the trade date).
Trade receivables arising from contracts with customers, in
Financial assets at fair value through other comprehensi-
the scope of IFRS 15, are initially measured at their tran-
ve income (FVOCI) - Debt instruments
saction price (as defined in IFRS 15) if such receivables do
This category mainly includes listed debt securities held by
not contain a significant financing component or when the
the Group reinsurance company and not classified as held
Group applies the practical expedient allowed by IFRS 15.
for trading.
Conversely, the Group initially measures financial assets
Financial assets at fair value through other comprehensi-
other than the above-mentioned receivables at their fair
ve income are assets held within a business model whose
value plus, in the case of a financial asset not measured at
objective is achieved by both collecting contractual cash
fair value through profit or loss, transaction costs.
flows and selling financial assets and whose contractual
Financial assets are classified, at initial recognition, as fi-
cash flows give rise, on specified dates, to cash flows that
nancial assets at amortized cost, at fair value through other
are solely payments of principal and interest on the princi-
comprehensive income and at fair value through profit or
pal amount outstanding.
loss, on the basis of both the Group’s business model and
Changes in fair value for these financial assets are recognized
the contractual cash-flow characteristics of the instru-
in other comprehensive income as well as loss allowances that
ment.
do not reduce the carrying amount of the financial assets.
For this purpose, the assessment to determine whether the
When a financial asset is derecognized (e.g. at the time of
instrument gives rise to cash flows that are solely payments
sale), the cumulative gains and losses previously recogni-
of principal and interest (SPPI) on the principal amount out-
zed in equity (except impairment and foreign exchange
standing is referred to as the SPPI test and is performed at
gains and losses to be recognized in profit or loss) are re-
an instrument level.
versed to profit or loss.
The Group’s business model for managing financial assets
249
Integrated Annual Report 2020 Financial assets at fair value through other comprehensi-
debt instruments measured at fair value through other
ve income (FVOCI) - Equity instruments
comprehensive income, contract assets and all other as-
This category includes mainly equity investments in unli-
sets in scope.
sted entities irrevocably designated as such upon initial
In compliance with IFRS 9, as from January 1, 2018, the
recognition.
Group adopted a new impairment model based on the
Gains and losses on these financial assets are never reclas-
determination of expected credit losses (ECL) using a
sified to profit or loss. The Group may transfer the cumula-
forward-looking approach. In essence, the model provides
tive gain or loss within equity.
for:
Equity instruments designated at fair value through OCI are
› the application of a single framework for all financial assets;
not subject to impairment testing.
› the recognition of expected credit losses on an ongoing
Dividends on such investments are recognized in profit or
basis and the updating of the amount of such losses at
loss unless they clearly represents a recovery of a part of
the end of each reporting period, reflecting changes in
the cost of the investment.
the credit risk of the financial instrument;
› the measurement of expected losses on the basis of
Financial assets at fair value through profit or loss
reasonable information, obtainable without undue cost,
This category mainly includes: securities, equity investmen-
about past events, current conditions and forecasts of
ts in other companies, financial investments in fund held
future conditions.
for trading and financial assets designated as at fair value
For trade receivables, contract assets and lease receivables,
through profit or loss at initial recognition.
including those with a significant financial component,
Financial assets at fair value through profit or loss are:
the Group adopts the simplified approach, determining
› financial assets with cash flows that are not solely pay-
expected credit losses over a period corresponding to the
ments of principal and interest, irrespective of the busi-
entire life of the receivable, generally equal to 12 months.
ness model;
For all financial assets other than trade receivables, con-
› financial assets held for trading because acquired or in-
tract assets and lease receivables, the Group applies the
curred principally for the purpose of selling or repurcha-
general approach under IFRS 9, based on the assessment
sing in short term;
of a significant increase in credit risk since initial recogni-
› debt instruments designated upon initial recognition,
tion. Under such approach, a loss allowance on financial
under the option allowed by IFRS 9 (fair value option), if
assets is recognized at an amount equal to the lifetime
doing so eliminates, or significantly reduces, an accoun-
expected credit losses, if the credit risk on those financial
ting mismatch;
assets has increased significantly, since initial recognition,
› derivatives, including separated embedded derivatives,
considering all reasonable and supportable information, in-
held for trading or not designated as effective hedging
cluding also forward-looking inputs.
instruments.
If at the reporting date the credit risk on financial assets
Such financial assets are initially recognized at fair value
has not increased significantly since initial recognition, the
with subsequent gains and losses from changes in their fair
Group measures the loss allowance for those financial assets
value recognized through profit or loss.
at an amount equal to 12-month expected credit losses.
This category also includes listed equity investments which
For financial assets on which a loss allowance equal to li-
the Group had not irrevocably elected to classify at fair va-
fetime expected credit losses has been recognized in the
lue through OCI. Dividends on listed equity investments are
previous reporting period, the Group measures the loss al-
also recognized as other income in the income statement
lowance at an amount equal to 12-month expected credit
when the right of payment has been established.
losses when the condition regarding a significant increase
Financial assets that qualify as contingent consideration
in credit risk is no longer met.
are also measured at fair value through profit or loss.
The Group recognizes in profit or loss, as an impairment
Impairment of financial assets
gain or loss, the amount of expected credit losses (or re-
versal) that is required to adjust the loss allowance at the
At each reporting date, the Group recognizes a loss al-
reporting date to the amount that is required to be reco-
lowance for expected credit losses on trade receivables
gnized in accordance with IFRS 9.
and other financial assets measured at amortized cost,
The Group applies the low credit risk exemption, avoiding
250250
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements the recognition of loss allowances at an amount equal to
value through profit or loss, upon initial recognition.
lifetime expected credit losses due to a significant increase
Financial liabilities that qualify as contingent consideration
in credit risk of debt securities at fair value through OCI,
are also measured at fair value through profit or loss.
whose counterparty has a strong financial capacity to meet
its contractual cash-flow obligations (e.g. investment gra-
Derecognition of financial assets and liabilities
de).
Financial assets are derecognized whenever one of the fol-
For more information on the impairment of financial assets,
lowing conditions is met:
please see note 44 “Financial instruments by category”.
› the contractual right to receive the cash flows associated
with the asset expires;
Cash and cash equivalents
› the Group has transferred substantially all the risks and
This category includes deposits that are available on de-
rewards associated with the asset, transferring its rights
mand or at very short term, as well as highly liquid short-
to receive the cash flows of the asset or assuming a con-
term financial investments that are readily convertible into
tractual obligation to pay such cash flows to one or more
a known amount of cash and which are subject to insignifi-
beneficiaries under a contract that meets the require-
cant risk of changes in value.
ments provided by IFRS 9 (the “pass through test”);
In addition, for the purpose of the consolidated statement
› the Group has not transferred or retained substantially all
of cash flows, cash and cash equivalents do not include
the risks and rewards associated with the asset but has
bank overdrafts at period-end.
transferred control over the asset.
Financial liabilities are derecognized when they are extin-
Financial liabilities at amortized cost
guished, i.e. when the contractual obligation has been di-
This category mainly includes borrowings, trade payables,
scharged, cancelled or expired.
lease liabilities and debt instruments.
When an existing financial liability is replaced by another
Financial liabilities, other than derivatives, are recognized
from the same lender on substantially different terms, or
when the Group becomes a party to the contractual clau-
the terms of an existing liability are substantially modified,
ses of the instrument and are initially measured at fair value
such an exchange or modification is treated as the dereco-
adjusted for directly attributable transaction costs. Finan-
gnition of the original liability and the recognition of a new
cial liabilities are subsequently measured at amortized cost
liability. The difference in the respective carrying amounts
using the effective interest rate method.
is recognized in profit or loss.
Financial liabilities at fair value through profit or loss
Derivative financial instruments
Financial liabilities at fair value through profit or loss inclu-
A derivative is a financial instrument or another contract:
de financial liabilities held for trading and financial liabilities
› whose value changes in response to the changes in an
designated upon initial recognition as at fair value through
underlying variable such as an interest rate, commodity
profit or loss.
or security price, foreign exchange rate, a price or rate
Financial liabilities are classified as held for trading if they
index, a credit rating or other variable;
are incurred for the purpose of repurchasing in the near
› that requires no initial net investment, or one that is
term. This category also includes derivative financial instru-
smaller than would be required for a contract with similar
ments entered into by the Group that are not designated as
response to changes in market factors;
hedging instruments in hedge relationships as defined by
› that is settled at a future date.
IFRS 9. Separated embedded derivatives are also classified
Derivative instruments are classified as financial assets or liabi-
as at fair value through profit or loss unless they are desi-
lities depending on the positive or negative fair value and they
gnated as effective hedging instruments.
are classified as “held for trading” within “Other business mo-
Gains or losses on liabilities at fair value through profit or
dels” and measured at fair value through profit or loss, except
loss are recognized through profit or loss.
for those designated as effective hedging instruments.
Financial liabilities designated upon initial recognition at
For more details about hedge accounting, please refer to
fair value through profit or loss are designated at the initial
the note 47 “Derivatives and hedge accounting”.
date of recognition, only if the criteria in IFRS 9 are sati-
All derivatives held for trading are classified as current as-
sfied.
sets or liabilities.
In this case, the portion of the change in fair value attribu-
Derivatives not held for trading purposes, but measured at
table to own credit risk is recognized in other comprehen-
fair value through profit or loss since they do not qualify for
sive income.
hedge accounting, and derivatives designated as effective
The Group has not designated any financial liability as at fair
hedging instruments are classified as current or not cur-
251
Integrated Annual Report 2020 rent on the basis of their maturity date and the Group in-
“normal purchase or sale” if it is entered into:
tention to hold the financial instrument till maturity or not.
› for the purpose of the physical settlement;
› in accordance with the entity’s expected purchase, sale
Embedded derivatives
or usage requirements.
An embedded derivative is a derivative included in a “com-
Moreover, contracts to buy or sell non-financial items with
bined” contract (the so-called “hybrid instrument”) that
physical settlement (for example, fixed-price forward con-
contains another non-derivative contract (the so-called
tracts on energy commodities) do not qualify for the own
host contract) and gives rise to some or all of the combined
use exemption and are recognized as derivatives measured
contract’s cash flows.
at fair value through profit or loss only if:
The main Group contracts that may contain embedded
› they can be settled net in cash; and
derivatives are contracts to buy or sell non-financial items
› they are not entered into in accordance with the Group’s
with clauses or options that affect the contract price, volu-
expected purchase, sale or usage requirements.
me or maturity.
Consequently, starting from the trade date, these contracts
A derivative embedded in a hybrid contract containing a
are recognized at FVTPL or as “Other revenue” in the case of
financial asset host is not accounted for separately. The fi-
contracts for the sale of non-financial items (see the note “Re-
nancial asset host together with the embedded derivative
venue”) or as “Electricity, gas and fuel” or “Services and other
is required to be classified in its entirety as a financial asset
materials” in the case of contracts for the purchase of non-fi-
at fair value through profit or loss.
nancial items (please see, respectively, note 10.a “Electricity,
Contracts that do not represent financial instruments to
gas and fuel” and note 10.b “Services and other materials”).
be measured at fair value are analyzed in order to identify
any embedded derivatives, which are to be separated and
The Group analyzes all contracts to buy or sell non-finan-
measured at fair value. This analysis is performed when the
cial assets on an ongoing basis, with a specific focus on
Group becomes party to the contract or when the contract
forward purchases and sales of electricity and energy com-
is renegotiated in a manner that significantly changes the
modities, in order to determine if they shall be classified
original associated cash flows.
and treated in accordance with IFRS 9 or if they have been
Embedded derivatives are separated from the host con-
entered into for “own use”.
tract and accounted for as derivatives when:
› the host contract is not a financial instrument measured
Offsetting financial assets and liabilities
at fair value through profit or loss;
The Group offsets financial assets and liabilities when:
› the economic risks and characteristics of the embed-
› there is a legally enforceable right to set off the recogni-
ded derivative are not closely related to those of the host
zed amounts; and
contract;
› there is the intention of settling on a net basis or realizing
› a separate contract with the same terms as the embed-
the asset and settling the liability simultaneously.
ded derivative would meet the definition of a derivative.
Embedded derivatives that are separated from the host
contract are recognized in the consolidated financial sta-
Hyperinflation
In a hyperinflationary economy, the Group adjusts non-mo-
tements at fair value with changes recognized in profit or
netary items, equity and items deriving from index-linked
loss (except when the embedded derivative is part of a de-
contracts up to the limit of recoverable amount, using a pri-
signated hedging relationship).
ce index that reflects changes in general purchasing power.
The effects of initial application are recognized in equity
Contracts to buy or sell non-financial items
net of tax effects. Conversely, during the hyperinflatio-
In general, contracts to buy or sell non-financial items that
nary period (until it ceases), the gain or loss resulting from
are entered into and continue to be held for receipt or deli-
adjustments is recognized in profit or loss and disclosed
very in accordance with the Group’s normal expected pur-
separately in financial income and expense.
chase, sale or usage requirements are out of the scope of
Starting from 2018, this standard applies to the Group’s
IFRS 9 and then recognized as executory contracts, accor-
transactions in Argentina, whose economy has been decla-
ding to the “own use exemption”.
red hyperinflationary from July 1, 2018.
A contract to buy or sell non-financial items is classified as
252252
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Non-current assets (or disposal groups) classified
as held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as
held for sale if their carrying amount will be recovered prin-
cipally through a sale transaction, rather than through con-
tinuing use.
This classification criterion is applicable only when non-cur-
rent assets (or disposal groups) are available in their present
condition for immediate sale and the sale is highly probable.
If the Group is committed to a sale plan involving loss of
control of a subsidiary and the requirements provided for
under IFRS 5 are met, all the assets and liabilities of that
subsidiary are classified as held for sale when the classi-
fication criteria are met, regardless of whether the Group
will retain a non-controlling interest in its former subsidiary
after the sale.
The Group applies these classification criteria as envisaged
in IFRS 5 to an investment, or a portion of an investment, in
an associate or a joint venture. Any retained portion of an
investment in an associate or a joint venture that has not
been classified as held for sale is accounted for using the
equity method until disposal of the portion that is classified
as held for sale takes place.
Non-current assets (or disposal groups) and liabilities of
disposal groups classified as held for sale are presented
separately from other assets and liabilities in the statement
of financial position.
The amounts presented for non-current assets or for the
assets and liabilities of disposal groups classified as held
for sale are not reclassified or re-presented for prior pe-
riods presented.
Immediately before the initial classification of non-current
assets (or disposal groups) as held for sale, the carrying
amounts of such assets (or disposal groups) are measured
in accordance with the accounting standard applicable to
those assets or liabilities. Non-current assets (or disposal
groups) classified as held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
Impairment losses for any initial or subsequent write-down
of the assets (or disposal groups) to fair value less costs to
sell and gains for their reversals are recognized in profit or
loss from continuing operations.
Non-current assets are not depreciated (or amortized) whi-
le they are classified as held for sale or while they are part of
a disposal group classified as held for sale.
If the classification criteria are no longer met, the Group
ceases to classify the non-current assets (or disposal
group) as held for sale. In this case they are measured at
the lower of:
› the carrying amount before the asset (or disposal group)
was classified as held for sale, adjusted for any depre-
ciation, amortization or reversals of impairment losses
that would have been recognized if the asset (or disposal
group) had not been classified as held for sale; and
› the recoverable amount, which is equal to the greater of
its fair value net of costs to sell and its value in use, as
calculated at the date of the subsequent decision not to
sell.
Any adjustment to the carrying amount of a non-current
asset that ceases to be classified as held for sale is included
in profit or loss from continuing operations.
A discontinued operation is a component of the Group that
either has been disposed of, or is classified as held for sale,
and:
› represents a separate major business line or geographi-
cal segment;
› is part of a single coordinated plan to dispose of a se-
parate major business line or geographical segment; or
› is a subsidiary acquired exclusively with a view to resale.
The Group presents, in a separate line item of the income
statement, a single amount comprising the total of:
› the post-tax profit or loss of discontinued operations;
and
› the post-tax gain or loss recognized on the measure-
ment at fair value less costs to sell or on the disposal of
the assets or disposal groups constituting the disconti-
nued operation.
The corresponding amount is restated in the income sta-
tement for prior periods presented in the financial state-
ments, so that the disclosures relate to all operations that
are discontinued by the end of the current reporting pe-
riod. If the Group ceases to classify a component as held
for sale, the results of the component previously presented
in discontinued operations are reclassified and included
in profit or loss from continuing operations for all periods
presented.
Environmental certificates
Some Group companies are affected by national regula-
tions governing green certificates and energy efficiency
certificates (so-called white certificates), as well as the Eu-
ropean “Emissions Trading System”.
Green certificates accrued in proportion to electricity ge-
nerated by renewable energy plants and energy efficiency
certificates accrued in proportion to energy savings achie-
ved that have been certified by the competent authority
are treated as non-monetary government operating gran-
ts and are recognized at fair value, under other operating
profit, with recognition of an asset under other non-finan-
cial assets, if the certificates are not yet credited to the
ownership account, or under inventories, if the certificates
have already been credited to that account.
At the time the certificates are credited to the ownership
253
Integrated Annual Report 2020 account, they are reclassified from other assets to inven-
long-term benefits, the related actuarial gains and losses
tories.
are recognized through profit or loss.
Revenue from the sale of such certificates is recognized
In the event of a change being made to an existing defined
under revenue from contracts with customers, with a cor-
benefit plan or the introduction of a new plan, any past ser-
responding decrease in inventories.
vice cost is recognized immediately in profit or loss.
For the purposes of accounting for charges arising from
In addition, the Group is involved in defined contribution
regulatory requirements concerning green certificates,
energy efficiency certificates and CO2 emissions allowan-
ces, the Group uses the “net liability approach”.
plans under which it pays fixed contributions to a separate
entity (a fund) and has no legal or constructive obligation
to pay further contributions if the fund does not hold suf-
Under this accounting policy, environmental certificates
ficient assets to pay all employee benefits relating to em-
received free of charge and those self-produced as a re-
ployee service in the current and prior periods. Such plans
sult of Group’s operations that will be used for compliance
are usually aimed to supplement pension benefits due to
purposes are recognized at nominal value (nil). In addition,
employees post-employment. The related costs are reco-
charges incurred for obtaining (in the market or in some
gnized through profit or loss on the basis of the amount of
other transaction for consideration) any missing certifica-
contributions paid in the period.
tes to fulfil compliance requirements for the reporting pe-
riod are recognized through profit or loss on an accruals
basis under other operating costs, as they represent “sy-
Termination benefits
Liabilities for benefits due to employees for the early ter-
stem charges” consequent to compliance with a regulatory
mination of employee service arise out of the Group’s de-
requirement.
cision to terminate an employee’s employment before the
normal retirement date or an employee’s decision to ac-
Employee benefits
Liabilities related to employee benefits paid upon or after
cept an offer of benefits in exchange for the termination
of employment. The event that gives rise to an obligation is
ceasing employment in connection with defined benefit
the termination of employment rather than employee ser-
plans or other long-term benefits accrued during the em-
vice. Termination benefits are recognized at the earlier of
ployment period are determined separately for each plan,
the following dates:
using actuarial assumptions to estimate the amount of the
› when the entity can no longer withdraw its offer of be-
future benefits that employees have accrued at the repor-
nefits; and
ting date (using the projected unit credit method). More
› when the entity recognizes a cost for a restructuring that
specifically, the present value of the defined benefit obli-
is within the scope of IAS 37 and involves the payment of
gation is calculated by using a discount rate determined
termination benefits.
on the basis of market yields at the end of the reporting
The liabilities are measured on the basis of the nature of
period on high-quality corporate bonds. If there is no deep
the employee benefits. More specifically, when the bene-
market for high-quality corporate bonds in the currency in
fits represent an enhancement of other post-employment
which the bond is denominated, the corresponding yield of
benefits, the associated liability is measured in accordance
government securities is used.
with the rules governing that type of benefits. Otherwise,
The liability, net of any plan assets, is recognized on an ac-
if the termination benefits due to employees are expected
cruals basis over the vesting period of the related rights.
to be settled wholly before 12 months after the end of the
These appraisals are performed by independent actuaries.
reporting period, the entity measures the liability in accor-
If the plan assets exceed the present value of the related
dance with the requirements for short-term employee be-
defined benefit obligation, the surplus (up to the limit of any
nefits; if they are not expected to be settled wholly before
cap) is recognized as an asset.
12 months after the end of the reporting period, the entity
As regards the liabilities/(assets) of defined benefit plans,
measures the liability in accordance with the requirements
the cumulative actuarial gains and losses from the actuarial
for other long-term employee benefits.
measurement of the liabilities, the return on the plan assets
(net of the associated interest income) and the effect of the
Share-based payments
asset ceiling (net of the associated interest) are recognized
The Group undertakes share-based payment transactions
in other comprehensive income when they occur. For other
settled with equity instruments as part of the remuneration
254254
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements policy adopted for the Chief Executive Officer and General
If the provision is discounted, the periodic adjustment of
Manager and for key management personnel.
the present value for the time factor is recognized as a fi-
The most recent long-term incentive plans provide for the
nancial expense.
grant to recipients of an incentive represented by an equity
When the Group expects some or all charges to be reim-
component and a monetary component.
bursed, the reimbursement is recognized as a separate
In order to settle the equity component through the bonus
asset, but only when the reimbursement is virtually certain.
award of Enel shares, a program for the purchase of trea-
Where the liability relates to decommissioning and/or site
sury shares to support these plans was approved. For more
restoration in respect of property, plant and equipment, the
details on share-based incentive plans, please see note 49
initial recognition of the provision is made against the re-
“Share-based payments”.
lated asset and the expense is then recognized in profit or
The Group recognizes the services rendered by employees
loss through the depreciation of the asset involved.
as personnel expenses and indirectly estimates their value,
Where the liability regards the treatment and storage of
and the corresponding increase in equity, on the basis of
nuclear waste and other radioactive materials, the provi-
the fair value of the equity instruments (i.e., Enel shares) at
sion is recognized against the related operating costs.
the grant date.
A liability for restructuring refers to a program planned
This fair value is based on the observable market price of
and controlled by management that materially changes
Enel shares (on the Milan stock exchange), taking account
the scope of a business undertaken by the Group or the
of the terms and conditions under which the shares were
manner in which the business is conducted. Such a liabili-
granted (with the exception of vesting conditions excluded
ty is recognized when a constructive obligation is establi-
from the measurement of fair value).
shed, i.e. when the Group has approved a detailed formal
The cost of these share-based payment transactions is re-
restructuring plan and has started to implement the plan
cognized through profit or loss, with a corresponding entry
or has announced its main features to those affected by it.
in a specific equity item, over the period in which the ser-
Provisions do not include liabilities in respect of uncertain
vice and return performance conditions are met (vesting
income tax treatments that are recognized as tax liabilities.
period).
The Group could provide a warranty in connection with the
The overall expense recognized is adjusted at each repor-
sale of a product (whether a good or service) from contracts
ting date until the vesting date to reflect the best estimate
with customers in the scope of IFRS 15, in accordance with
available to the Group of the number of equity instrumen-
the contract, the law or its customary business practices. In
ts for which the service and performance conditions other
this case, the Group assesses whether the warranty provi-
than market conditions will be satisfied, so that the amount
des the customer with assurance that the related product
recognized at the end is based on the effective number of
will function as the parties intended because it complies
equity instruments that satisfy the service and performan-
with agreed-upon specifications or whether the warranty
ce conditions other than market conditions at the vesting
provides the customer with a service in addition to the as-
date.
surance that the product complies with agreed-upon spe-
No expense is recognized for awards which ultimately do
cifications.
not vest because the performance conditions other than
After the assessment, if the Group establishes that an
market conditions and/or the service conditions have not
assurance warranty is provided, it recognizes a separate
been satisfied. Conversely, the transactions are conside-
warranty liability and corresponding expense when tran-
red to have vested irrespective of whether the market or
sferring the product to the customer, as additional costs of
non-vesting conditions are satisfied, provided that all the
providing goods or services, without attributing any of the
other performance and/or service conditions are satisfied.
transaction price (and therefore revenue) to the warranty.
The liability is measured and presented as a provision.
Provisions for risks and charges
Provisions are recognized where there is a legal or con-
Otherwise, if the Group determines that a service warran-
ty is provided, it accounts for the promised warranty as a
structive obligation as a result of a past event at the end of
performance obligation in accordance with IFRS 15, reco-
the reporting period, the settlement of which is expected
gnizing the contract liability as revenue over the period the
to result in an outflow of resources whose amount can be
warranty service is provided and the costs associated as
reliably estimated. Where the impact is significant, the ac-
they are incurred.
cruals are determined by discounting expected future cash
Finally, if the warranty includes both an assurance element
flows using a pre-tax discount rate that reflects the current
and a service element and the Group cannot reasonably
market assessment of the time value of money and, if ap-
account for them separately, then it accounts for both of
plicable, the risks specific to the liability.
the warranties together as a single performance obligation.
255
Integrated Annual Report 2020 In the case of contracts in which the unavoidable costs of
account for separately if they are both: capable of being di-
meeting the obligations under the contract exceed the
stinct and distinct charges within the context of the contract.
economic benefits expected to be received under it (one-
As an exception, the Group accounts for as a single per-
rous contracts), the Group recognizes a provision as the
formance obligation a series of distinct goods or ser-
lower of the excess of unavoidable costs of meeting the
vices that are substantially the same and that have the
obligations under the contract over the economic benefits
same pattern of transfer to the customer over time.
expected to be received under it and any compensation or
In assessing the existence and the nature of the perfor-
penalty arising from failure to fulfil it.
mance obligations, the Group considers all of the con-
Changes in estimates of accruals to the provisions addres-
tract’s features as mentioned in step 1.
sed here are recognized through profit or loss in the period
For each distinct good or service identified, the Group de-
in which the changes occur, with the exception of those in
termines whether it acts as a principal or agent, respecti-
the costs of decommissioning, dismantling and/or restora-
vely if it controls or not the specified good or service that
tion resulting from changes in the timetable and costs ne-
is promised to the customer before its control is transfer-
cessary to extinguish the obligation or from a change in the
red to the customer. When the Group acts as agent, it re-
discount rate. These changes increase or decrease the car-
cognizes revenue on a net basis, corresponding to any fee
rying amount of the related assets and are taken to profit
or commission to which it expects to be entitled;
or loss through depreciation. Where they increase the car-
› determine the transaction price (step 3).
rying amount of the assets, it is also determined whether
The transaction price represents the amount of consi-
the new carrying amount of the assets is fully recoverable.
deration to which the Group expects to be entitled in
If this is not the case, a loss equal to the unrecoverable
exchange for transferring goods or services to a custo-
amount is recognized through profit or loss.
mer, excluding amounts collected on behalf of third par-
Decreases in estimates are recognized up to the carrying
ties (e.g., some sale taxes and value-added taxes).
amount of the assets. Any excess is recognized immedia-
The Group determines the transaction price at inception
tely in profit or loss.
of the contract and updates it each reporting period for
For more information on the estimation criteria adopted in
any changes in circumstances.
determining provisions for dismantling and/or restoration
When the Group determines the transaction price, it
of property, plant and equipment, especially those associa-
considers whether the transaction price includes va-
ted with decommissioning nuclear power plants and stora-
riable consideration, non-cash consideration received
ge of waste fuel and other radioactive materials, please see
from a customer, consideration payable to a customer
note 2.1 “Use of estimates and management judgment”.
and a significant financing component;
› allocate the transaction price (step 4).
Revenue from contracts with customers
The Group recognizes revenue from contracts with custo-
The Group allocates the transaction price at contract
inception to each separate performance obligation to
mers in order to represent the transfer of promised goods
depict the amount of consideration to which the Group
or services to the customers at an amount that reflects the
expects to be entitled in exchange for transferring the
consideration at which the Group expects to be entitled in
promised goods or services.
exchange for those goods or services.
When the contract includes a customer option to acqui-
The Group applies this core principle using a five-step
re additional goods or services that represents a material
model:
right, the Group allocates the transaction price to this
› identify the contract with the customer (step 1).
performance obligation (i.e. the option) and defers the
The Group applies IFRS 15 to contracts with customers in
relative revenue until those future goods or services are
the scope of the standard when the contract is legally en-
transferred or the option expires.
forceable and all the criteria envisaged for step 1 are met.
The Group generally allocates the transaction price on
If the criteria are not met, any consideration received
the basis of the relative stand-alone selling price of each
from the customer is generally recognized as an advance;
distinct good or service promised in the contract (that
› identify the performance obligations in the contract (step 2).
is, the price at which the Group would sell that good or
The Group identifies all goods or services promised in the
service separately to the customer);
contract, separating them into performance obligations to
› recognize revenue (step 5).
256256
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The Group recognizes revenue when (or as) each perfor-
to the right to consideration in exchange for goods or ser-
mance obligation is satisfied by transferring the promi-
vices transferred to the customer.
sed good or service to the customer, which is when the
If a customer pays consideration before the Group tran-
customer obtains control of the good or service.
sfers goods or services to the customer, the Group reco-
To this end, the Group first determines if one of the
gnizes a contract liability when the payment is made (or the
over-time criteria is met.
payment is due) that is recognized as revenue when the
For each performance obligation satisfied over time, the
Group performs under the contract.
Group recognizes revenue over time by measuring pro-
gress toward the complete satisfaction of that performan-
ce obligation using an output method or an input method
Other revenue
The Group recognizes revenue other than that deriving
and applies a single method of measuring progress from
from contracts with customers mainly referring to:
contract inception until full satisfaction and to similar per-
› revenue from the sale of energy commodities based on
formance obligations and in similar circumstances.
contracts with physical settlement, which do not qualify
When the Group cannot reasonably measure the pro-
for the own use exemption and therefore is recognized
gress, it recognizes revenue only to the extent of the co-
at FVTPL in accordance with IFRS 9;
sts incurred that are considered recoverable.
› changes in the fair value of contracts to sell energy com-
If the performance obligation is not satisfied over time,
modities with physical settlement, which do not qualify
the Group determines the point in time at which the
for the own use exemption and therefore are recognized
customer obtains the control, considering whether the
at FVTPL in accordance with IFRS 9;
indicators of the transfer of control collectively indicate
› operating lease revenue accounted for on an accrual
that the customer has obtained control.
basis in accordance with the substance of the relevant
Depending on the type of transaction, the broad criteria
lease agreement.
used under IFRS 15 are summarized below:
– revenue from the sale of goods is recognized at the
point in time at which the customer obtains the control
Other operating profit
Other operating profit primarily includes gains on dispo-
of goods if the Group considers that the sale of goods
sal of assets that are not an output of the Group’s ordinary
is satisfied at a point in time;
activities and government grants.
– revenue from providing services is recognized on the
Government grants, including non-monetary grants at fair
basis of the progress towards complete satisfaction
value, are recognized where there is reasonable assurance
of the performance obligation measured with an ap-
that they will be received and that the Group will comply
propriate method that better depicts this progress if
with all conditions attaching to them as set by the gover-
the Group considers that the performance obligation
nment, government agencies and similar bodies whether
is satisfied over time. The cost incurred method (cost-
local, national or international.
to-cost method) is considered appropriate for measu-
When loans are provided by governments at a below-mar-
ring progress, except when specific contract analyses
ket rate of interest, the benefit is regarded as a government
suggest the use of an alternative method, which better
grant. The loan is initially recognized and measured at fair
depicts the Group’s performance obligation fulfilled at
value and the government grant is measured as the diffe-
the reporting date.
rence between the initial carrying amount of the loan and
The Group does not disclose the information about the
the funds received. The loan is subsequently measured in
remaining performance obligations in existing contracts if
accordance with the requirements for financial liabilities.
the performance obligation is part of a contract that has
Government grants are recognized in profit or loss on a sy-
an original expected duration of one year or less and if the
stematic basis over the periods in which the Group reco-
Group recognizes revenue in the amount to which it has a
gnizes as expenses the costs that the grants are intended
right to invoice the customer.
to compensate.
Where the Group receives government grants in the form
More information on the application of this revenue reco-
of a transfer of a non-monetary asset for the use of the
gnition model is provided in note 2.1 “Use of estimates and
Group, it accounts for both the grant and the asset at the
management judgment” and in note 9.a “Revenue from sa-
fair value of the non-monetary asset received at the date
les and services”.
of the transfer.
If the Group performs by transferring goods or services to
Capital grants, including non-monetary grants at fair value,
a customer before the customer pays consideration or be-
i.e. those received to purchase, build or otherwise acquire
fore payment is due, it recognizes a contract asset relating
non-current assets (for example, an item of property, plant
257
Integrated Annual Report 2020 and equipment or an intangible asset), are deducted from
the tax rates and tax laws that are enacted or substantively
the carrying amount of the asset and are recognized in
enacted by the end of the reporting period in the countries
profit or loss over the depreciable/amortizable life of the
where taxable income has been generated.
asset as a reduction in the depreciation/amortization char-
Current income taxes are recognized in profit or loss with
ge.
the exception of current income taxes related to items re-
cognized outside profit or loss that are recognized in equity.
Financial income and expense from derivatives
Financial income and expense from derivatives includes:
Deferred tax
› income and expense from derivatives measured at fair va-
Deferred tax liabilities and assets are calculated on the
lue through profit or loss on interest rate and currency risk;
temporary differences between the carrying amounts of
› income and expense from fair value hedge derivatives on
liabilities and assets in the financial statements and their
interest rate risk;
corresponding amounts recognized for tax purposes on
› income and expense from cash flow hedge derivatives
the basis of tax rates in effect on the date the temporary
on interest rate and currency risks.
difference will reverse, which is determined on the basis of
tax rates that are enacted or substantively enacted as at
Other financial income and expense
For all financial assets and liabilities measured at amortized
the end of the reporting period.
Deferred tax liabilities are recognized for all taxable tem-
cost and interest-bearing financial assets classified as at
porary differences, except when such liability arises from
fair value through other comprehensive income, interest
the initial recognition of goodwill or in respect of taxable
income and expense is recognized using the effective inte-
temporary differences associated with investments in sub-
rest rate method. The effective interest rate is the rate that
sidiaries, associates and joint ventures, when the Group
exactly discounts the estimated future cash payments or
can control the timing of the reversal of the temporary dif-
receipts over the expected life of the financial instrument
ferences and it is probable that the temporary differences
or a shorter period, where appropriate, to the carrying
will not reverse in the foreseeable future.
amount of the financial asset or liability.
Deferred tax assets are recognized for all deductible tem-
Interest income is recognized to the extent that it is pro-
porary differences, the carry forward of tax losses and any
bable that the economic benefits will flow to the Group and
unused tax credits. For more information concerning the
the amount can be reliably measured.
recoverability of such assets, please see the appropriate
Other financial income and expense include also changes in
section of the discussion of estimates.
the fair value of financial instruments other than derivatives.
Deferred taxes and liabilities are recognized in profit or loss,
Dividends
Dividends are recognized when the unconditional right to
receive payment is established.
with the exception of those in respect of items recognized
outside profit or loss that are recognized in equity.
Deferred tax assets and deferred tax liabilities are offset
only if there is a legally enforceable right to offset current
Dividends and interim dividends payable to the Parent’s
tax assets with current tax liabilities and when they relate
shareholders are recognized as changes in equity in the
to income taxes levied by the same taxation authority on
period in which they are approved by the Shareholders’
either the same taxable entity or different taxable entities
Meeting and the Board of Directors, respectively.
which intend either to settle current tax liabilities and as-
Income taxes
sets on a net basis, or to realize the assets and settle the
liabilities simultaneously, in each future period in which si-
gnificant amounts of deferred tax liabilities or assets are
Current income taxes
expected to be settled or recovered.
Current income year for the period, which are recognized
under “income tax liabilities” net of payments on account,
Uncertainty over income tax treatments
or under “tax assets” where there is a credit balance, are
In defining ‘uncertainty’, it shall be considered whether a
determined using an estimate of taxable income and in
particular tax treatment will be accepted by the relevant ta-
conformity with the applicable regulations.
xation authority. If it is deemed probable that the tax treat-
In particular, such liabilities and assets are determined using
ment will be accepted (where the term ‘probable’ is defined
258258
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements as ‘more likely than not’), then the Group recognizes and
“material” between the accounting standards and the
measures its current/deferred tax asset or liabilities ap-
Conceptual Framework for Financial Reporting and cla-
plying the requirements in IAS 12.
rify a number of aspects. The definition of material is as
Conversely, when the Group feels that it is not likely that the
follows: “information is material if omitting, misstating or
taxation authority will accept the tax treatment for inco-
obscuring it could reasonably be expected to influence
me tax purposes, the Group reflects the uncertainty in the
decisions that the primary users of general purpose fi-
manner that best predicts the resolution of the uncertain
nancial statements make on the basis of those financial
tax treatment. The Group determines whether to consider
statements, which provide financial information about a
each uncertain tax treatment separately or together with
specific reporting entity.” More specifically, the amend-
one or more other uncertain tax treatments based on whi-
ments clarify that:
ch approach provides better predictions of the resolution
– “obscuring information“ regards situations for which
of the uncertainty. In assessing whether and how the un-
the effect for users of financial statements is similar
certainty affects the tax treatment, the Group assumes that
to the omission or misstatement of information whose
a taxation authority will accept or not an uncertain tax tre-
materiality is assessed in the context of the financial
atment supposing that the taxation authority will examine
statements taken as a whole;
amounts it has a right to examine and have full knowledge
– “primary users of financial statements“, to whom ge-
of all related information when making those examinations.
neral purpose financial statements are directed, are
The Group reflects the effect of uncertainty in accounting
“existing and potential investors, lenders and other
for current and deferred tax using the expected value or
creditors” who must rely on general purpose financial
the most likely amount, whichever method better predicts
statements for much of the financial information they
the resolution of the uncertainty.
need; and
– “materiality” depends on the nature or magnitude of
Since uncertain income tax positions meet the definition of
information, or both. An entity assesses whether infor-
income taxes, the Group presents uncertain tax liabilities/
mation, either individually or in combination with other
assets as current tax liabilities/assets or deferred tax liabi-
information, is material in the context of its financial
lities/assets.
3. New and amended standards and
interpretations
statements taken as a whole. A misstatement of infor-
mation is material if it could reasonably be expected
to influence decisions of made by the primary users of
the financial statements.
› “Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest
Rate Benchmark Reform”, issued in September 2019.
The Group has applied the following standards, interpre-
The amendments: (i) provide for temporary exceptions
tations and amendments that took effect as from January
that enable hedging relationships to continue during
1, 2020.
the period of uncertainty until alterative risk-free rates
are established with the interbank offered rates (IBORs)
› “Amendments to IFRS 3 - Definition of a Business”, is-
reform; and (ii) require additional disclosures on hedging
sued in October 2018, is intended to assist companies in
relationships directly affected by the uncertainty. In this
determining whether an integrated set of activities and
regard, note that the reform will impact fair value mea-
assets is a business. More specifically, the amendments
surement, the effects of hedge accounting and net fi-
clarify that a business, considered as an integrated set of
nancial income and expense when the alternative rates
activities and assets, must include, at a minimum, an in-
are defined.
put and a substantive process that together significantly
› “Amendments to References to the Conceptual Fra-
contribute to the ability to create outputs. Accordingly,
mework in IFRS Standards”, issued in March 2018. The
the amendments clarify that a business cannot exist wi-
document sets out the amendments to affected stan-
thout including the inputs and substantive processes ne-
dards in order to update references to the revised Con-
cessary to produce outputs. The definition of “output”, as
ceptual Framework. These amendments accompany the
modified by these amendments, focuses on the goods
latest version of the Revised Conceptual Framework for
and services delivered to customers, on investment inco-
Financial Reporting, issued in March 2018 and in effect as
me and other revenue and excludes returns in the form
from January 1, 2020, which includes some new concep-
of lower costs or other economic benefits.
ts, provides updated definitions and recognition criteria
› “Amendments to IAS 1 and IAS 8 - Definition of Mate-
and clarifies some important concepts. The main amend-
rial”, issued in October 2018, to align the definition of
ments include:
259
Integrated Annual Report 2020 – an
increase
in the
importance of management’s
ment of the non-monetary financial statement figures was
stewardship of economic resources for financial re-
conducted by applying the inflation indices starting from
porting purposes;
that date. In addition to being already reflected in the ope-
– the restoration of prudence as an element supporting
ning statement of financial position, the accounting effects
neutrality;
of that remeasurement also include changes during the
– the definition of reporting entity, which may be a legal
period. More specifically, the effect of the remeasurement
entity or a portion of that entity;
of non-monetary items, the equity items and the income
– the revision of the definitions of assets and liabilities;
statement items recognized in 2020 was recognized in a
– elimination of the probability threshold in recognition
specific line of the income statement under financial inco-
and the addition of guidelines for derecognition;
me and expense. The associated tax effect was recognized
– the addition of guidelines on various measurement ba-
in taxes for the year.
ses; and
– the affirmation that profit or loss is the primary indica-
In order to also take account of the impact of hyperinfla-
tor of performance and that, in principle, income and
tion on the exchange rate of the local currency, the income
expense included in other comprehensive income shall
statement balances expressed in the hyperinflationary cur-
be reclassified to profit or loss when doing so results in
rency have been translated into the Group’s presentation
the income statement providing more relevant infor-
currency (euro) applying, in accordance with IAS 21, the
mation or a more faithful representation.
closing exchange rate rather than the average rate for the
year in order to adjust these amounts to present values.
The application of these amendments did not have a mate-
rial impact on these consolidated financial statements.
The cumulative changes in the general price indices at De-
4. Argentina - Hyperinflationary
economy: impact of the application
of IAS 29
As from July 1, 2018, the Argentine economy has been con-
sidered hyperinflationary based on the criteria established
by “IAS 29 - Financial reporting in hyperinflationary econo-
mies”. This designation is determined following an asses-
sment of a series of qualitative and quantitative circum-
cember 31, 2018, December 31, 2019 and December 31,
2020 are shown in the following table.
Periods
From July 1, 2009
to December 31, 2018
From January 1, 2019
to December 31, 2019
From January 1, 2020
to December 31, 2020
Cumulative change in general
consumer price index
346.30%
54.46%
35.41%
stances, including the presence of a cumulative inflation
In 2020, the application of IAS 29 generated net financial
rate of more than 100% over the previous three years.
income (gross of tax) of €57 million.
For the purposes of preparing the consolidated financial
statements at December 31, 2020 and in accordance with
The following tables report the effects of IAS 29 on the ba-
IAS 29, certain items of the statements of financial position
lance at December 31, 2020 and the impact of hyperinfla-
of the investees in Argentina have been remeasured by ap-
tion on the main income statement items for 2020, diffe-
plying the general consumer price index to historical data
rentiating between that concerning the revaluation on the
in order to reflect changes in the purchasing power of the
basis of the general consumer price index and that due to
Argentine peso at the reporting date for those companies.
the application of the closing exchange rate rather than the
Bearing in mind that the Enel Group acquired control of the
average exchange rate for the period, in accordance with
Argentine companies on June 25, 2009, the remeasure-
the provisions of IAS 21 for hyperinflationary economies.
260260
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Total assets
Total liabilities
Equity
Cumulative hyperinflation
effect at Dec. 31, 2019
Hyperinflation effect
for the period
Exchange differences
Cumulative hyperinflation
effect at Dec. 31, 2020
857
164
693
313
86
227 (1)
(208)
(58)
(150)
962
192
770
(1) The figure includes profit for 2020, equal to €25 million.
Millions of euro
Revenue
Costs
Operating profit
Net financial expense
Net income/(expense) from hyperinflation
Pre-tax profit/(loss)
Income taxes
Loss for the year (owners of the Parent
and non-controlling interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
IAS 29 effect
IAS 21 effect
Total effect
119
169 (1)
(50)
(4)
57
3
28
(25)
-
(25)
(199)
(177) (2)
(22)
(4)
-
(26)
(3)
(23)
(10)
(13)
(80)
(8)
(72)
(8)
57
(23)
25
(48)
(10)
(38)
(1)
(2)
Includes impact on depreciation, amortization and impairment losses of €49 million.
Includes impact on depreciation, amortization and impairment losses of €(18) million.
5. Disclosures on non-financial issues
Disclosures concerning the COVID-19
pandemic
In view of the complexity of the current situation, the Group
financial statements at December 31, 2020 offer additio-
nal specific information regarding the COVID-19 pande-
mic, based on specific company circumstances and on the
availability of reliable information, in order to highlight its
impact on the financial position and performance of the
has carefully monitored the evolution of the COVID-19 pan-
Group at that date.
demic with regard to the main areas and countries in which
In this regard, additional information on the financial impli-
we operate, in line with the recommendations of ESMA in
cations of the COVID-19 pandemic is available in note 2.1
the public statements(1) published in March, May, July and
“Use of estimates and management judgment” and in the
October 2020, and of CONSOB in its warning notices nos.
notes to specific items.
6/2020 of April 9, 2020, 8/2020 of July 16, 2020 and 1/2021
of February 16, 2021.
The Group has analyzed the impacts of COVID-19 on bu-
Disclosures on climate change
The Group is moving forward in its commitment to lead
siness operations, the financial position and performance,
the energy transition, in line with the objectives of the Paris
which are also reflected in the assumptions underlying the
Agreement (COP21) and the Sustainable Development Go-
Group’s Business Plan, also identifying the main risks and
als set by the United Nations.
uncertainties to which it is exposed, as reported in the “Risk
In particular, the Group is fully committed to the develop-
management” section of the Report on Operations. For
ment of a long-term sustainable business model, consi-
more on the effects generated by the COVID-19 pandemic
at December 31, 2020, please see the specific section “Fi-
nancial impact of COVID-19” in the Report on Operations.
stent with the objectives of the Paris Agreement to achieve
a reduction in CO2 emissions and to limit the average in-
crease in global temperature to below 2 °C compared with
Consistent with the disclosures provided in the earlier
pre-industrial levels. Since 2019, the Group has officially
sections of the Report on Operations, the consolidated
reaffirmed this commitment, responding to the United Na-
(1) ESMA 71-99-1290 of March 11, 2020; ESMA 32-63-951 of March 25, 2020; ESMA 31-67-742 of March 27, 2020; ESMA 32-63-972 of May 20, 2020; ESMA
32-61-417 of July 21, 2020 and ESMA 32-63-1041 of October 28, 2020.
261
Integrated Annual Report 2020 tions call for action and is the only Italian company to have
qualify for the own use exemption and are therefore me-
signed the commitment to limit the increase in global tem-
asured at fair value through profit or loss (within the scope
peratures to 1.5 °C and to achieve zero emissions by 2050.
of IFRS 9), the Group slightly modified the recognition of
These objectives form the basis for the 2021-2030 Strate-
those items in 2020 with a simple reclassification of costs
gic Plan presented in November 2020. It is founded on the
between two lines of the income statement, thus enabling
Group’s leadership in the energy transition process throu-
a closer correlation between costs and revenue together
gh the decarbonization of its generation mix, the electrifi-
with more relevant information. This reclassification had no
cation of energy consumption and the creation of digital
impact on either profit for the year or equity.
platforms for the development of new business and ope-
More specifically, in 2019 the previous accounting treat-
rational models.
ment of these transactions in non-financial items provided
The Group has considered the risks related to climate
for recognition in:
change and the objectives of the Paris Agreement in the
› “Other revenue” of changes in the fair value of sales con-
preparation of the consolidated financial statements at De-
tracts as well as, at the settlement date, the related re-
cember 31, 2020, which appropriately reflect the effect of
venue together with the effects in profit or loss of the
achieving net zero emissions by 2050 on assets, liabilities,
derecognition of derivative assets or liabilities;
profits and losses, incorporating the material and foresee-
› “Other operating costs” of changes in the fair value of
able impacts as required under the Framework of the IFRS.
purchase contracts as well as, at the settlement date, of
Furthermore, in compliance with the document published
the related costs together with the effects, in profit or
by the IFRS Foundation on November 20, 2020(2), the Group
loss, of the derecognition of derivative assets or liabili-
provides explicit information in the notes to these consoli-
ties in “Electricity, gas and fuel” or “Services and other
dated financial statements regarding how the implications
materials”.
of climate change are reflected in the financial statements.
The current accounting treatment of these transactions in
For further details on the financial implications of issues
non-financial items (see the section “Contracts to buy or
related to climate change, please see note 2.1 “Use of esti-
sell non-financial items” in note 2.2 “Significant accounting
mates and management judgment” and in the notes to
policies”) instead provides for recognition in:
specific items.
› “Other revenue” of changes in the fair value of sales con-
The accounting assumptions used for the preparation of
tracts as well as, at the settlement date, the related re-
the 2020 consolidated financial statements are consistent
venue together with the effects in profit or loss of the
with the information on the risks deriving from climate
derecognition of derivative assets or liabilities;
change reported in the “Risk management” section of the
› “Electricity, gas and fuel” of the changes in the fair value
Report on Operations, which readers are invited to consult
of purchase contracts;
for further information.
6. Restatement of comparative
disclosures
› “Electricity, gas and fuel” or “Services and other mate-
rials” of the related costs at the settlement date together
with the effects in profit or loss of the derecognition of
derivative assets or liabilities.
Consequently, the only difference between the two years
under comparison concerned the reclassification of the
The data presented in the comments and in the tables of
2019 amounts for changes in the fair value of contracts to
the notes to these consolidated financial statements are
buy non-financial items from “Other operating costs” to
uniform and comparable. In this regard, note that with re-
“Electricity, gas and fuel” and “Services and other mate-
gard to contracts entered into for the purchase or sale of
rials”.
non-financial items with physical settlement that do not
(2)
“Effects of climate-related matters on financial statements”, which expands on an article on the issue written by Nick Anderson, a member of the Internatio-
nal Accounting Standards Board in November 2019.
262262
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements [Subtotal]
[Subtotal]
IMPACT ON THE INCOME STATEMENT
Millions of euro
Revenue
Revenue from sales and services
Other income
Costs
Electricity, gas and fuel
Services and other materials
Personnel expenses
Net impairment losses on trade receivables
and other financial assets
Depreciation, amortization and other impairment losses
Other operating costs
Capitalized costs
Net expense from commodity derivatives
Operating profit
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income from hyperinflation
Share of profit/(loss) of equity-accounted investments
Pre-tax profit
Income taxes
Profit from continuing operations
Profit from discontinued operations
Profit for the year (owners of the Parent
and non-controlling interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
Basic earnings/(loss) per share attributable to owners
of the Parent (euro)
Diluted earnings/(loss) per share attributable to owners
of the Parent (euro)
Basic earnings/(loss) per share from continuing operations
attributable to owners of the Parent (euro)
Diluted earnings/(loss) per share from continuing operations
attributable to owners of the Parent (euro)
2019
Reclassifications
2019 restated
77,366
2,961
80,327
33,755
18,580
4,634
1,144
9,682
7,276
(2,355)
72,716
(733)
6,878
1,484
1,637
1,142
4,518
95
(122)
4,312
836
3,476
-
3,476
2,174
1,302
0.21
0.21
0.21
0.21
4,327
256
(4,583)
77,366
2,961
80,327
38,082
18,836
4,634
1,144
9,682
2,693
(2,355)
72,716
(733)
6,878
1,484
1,637
1,142
4,518
95
(122)
4,312
836
3,476
-
3,476
2,174
1,302
0.21
0.21
0.21
0.21
In addition, during the year, a number of adjustments were
This change affected the segment reporting but did not
made to the income statement figures for 2019 to take
produce any change in the overall figures for the Group,
account of the fact that with effect from March 31, 2020
although reclassifications have been made within the va-
in Latin America the amounts attributable to large custo-
rious Business Lines.
mers managed by the power generation companies were
reallocated to the End-user Markets Business Line.
263
Integrated Annual Report 2020 Changes in the
consolidation scope
7. Main acquisitions and disposals
during the year
2020
› In January 2020, the Wild Plains project company, 100%
owned by Tradewind, was sold. The sale did not have an
impact on profit or loss;
› on May 11, 2020 Endesa Energía sold 80% of Endesa
Soluciones for €21 million. The interest, which had pre-
viously been consolidated on a line-by-line basis, is now
In the two periods under review, the consolidation scope
accounted for using the equity method;
changed as a result of a number of transactions.
› on July 7, 2020, Enel Green Power España acquired 100%
2019
› The disposal, on March 1, 2019, of 100% of Mercure Srl,
of Parque Eólico Tico SLU, Tico Solar 1 SLU and Tico Solar
2 SLU for a total of €40 million;
› on September 14, Endesa Generación Portugal acquired
a company to which the business unit consisting of the
100% of Suggestion Power (Unipessoal) Lda for a total of
Mercure biomass plant and the related legal relationships
€6 million;
had been previously transferred. The price for the tran-
› on September 17, 2020, Enel X International acquired
saction was €168 million;
60% of Viva Labs AS for a total of €3 million;
› the acquisition, on March 14, 2019, by Enel Green Power
› Enel Green Power Panama acquired 100% of Jaguito Solar
SpA, acting through its US renewables subsidiary Enel
and Progreso Solar in 2020 for a total of €2 million.
Green Power North America (EGPNA, now renamed Enel
North America), of 100% of 13 companies that own ope-
rating renewable generation plants from Enel Green
Other changes
In addition to the above changes in the consolidation sco-
Power North America Renewable Energy Partners (EGPNA
pe, the following transactions, which although they do not
REP), a joint venture 50% owned by EGPNA and 50% by
represent transactions involving the acquisition or loss of
General Electric Capital’s Energy Financial Services;
control, gave rise to a change in the interest held by the
› the acquisition, on March 27, 2019, by Enel Green Power
Group in the investees:
SpA (EGP), acting through its US renewables subsidiary
› the disposal, in 2020, of a number of 50% owned joint
EGPNA (now ENA), of Tradewind Energy, a renewable
ventures in Enel North America’s hydroelectric portfolio.
energy project development company based in Lenexa,
In December 2019, the entire portfolio had been classi-
Kansas. EGP has incorporated the entire Tradewind de-
fied as held for sale in accordance with IFRS 5. The gain
velopment platform, which includes 13 GW of wind, solar
recognized in profit or loss was €2 million;
and storage projects located in the United States. The
› in 2020, Enel SpA increased its interest in Enel Améric-
agreement also provided for the sale, which took place in
as by 5.03% under the provisions of share swaps entered
June, of Savion, a wholly owned subsidiary of Tradewind;
into with a financial institution. The Group’s total stake is
› on April 30, 2019, Enel X Italia acquired 100% di YouSave
therefore now 65%;
SpA, an Italian company operating in the energy services
› Enel SpA increased its interest in Enel Chile by 2.89% un-
sector, providing assistance to large electricity consu-
der the provisions of two share swaps entered into with
mers;
a financial institution. The Group’s total stake is therefore
› on May 31, 2019, the finalization, acting through the
now 64.93%.
renewables subsidiary Enel Green Power Brasil Partici-
pações Ltda, of the disposal of 100% of three renewables
plants in Brazil. The total price of the transaction was
Minor acquisitions
The Group will determine, for the other minor acquisitions,
about R$2.7 billion, the equivalent of about €603 million;
the fair value of the assets acquired and the liabilities assu-
› the acquisition, on November 14, 2019, by Enel X Srl of
med within 12 months of the acquisition date.
55% di Paytipper, an authorized payment institution that
offers its customers financial services to facilitate their
daily lives. The contract is accompanied by a put option
for the remaining 45%.
264264
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements DETERMINATION OF GOODWILL
Millions of euro
Net assets acquired
Cost of the acquisition
(of which paid in cash)
Goodwill/(Negative goodwill)
Parque Eólico Tico
SLU, Tico Solar 1 SLU
and Tico Solar 2 SLU
Suggestion Power
(Unipessoal) Lda
Viva Labs AS
Jaguito Solar,
Progreso Solar
40
40
14
-
6
6
3
-
-
3
2
3
-
2
2
2
Acquisition of Paytipper
During 2020, the company Paytipper, acquired by Enel X
the assets acquired and the liabilities assumed. The main
adjustments with respect to the carrying amount are attri-
Srl on December 23, 2019, completed the allocation of the
butable to the recognition of the intangible asset relating
acquisition price, definitively determining the fair value of
to the technological platform and the related tax effects.
Millions of euro
Net assets acquired
Cost of the acquisition
Goodwill/(Negative goodwill)
Carrying amount
prior to December
23, 2019
Adjustments from
purchase price
allocation
Post-adjustment
carrying amount at
December 23, 2019
4
22
18
39
1
-
43
23
(20)
Following the final allocation of the purchase price, negati-
of a put option. The value of the put option was estimated
ve goodwill was recognized in profit or loss in 2020.
on the basis of the mechanism included in the sharehol-
The acquisition price, totaling €24.5 million, includes con-
ders’ agreement and using the prospective EBITDA indica-
tingent consideration of €18.3 million linked to the exercise
ted in the business plan approved by the Board of Directors.
Operating segments
8. Segment reporting
The representation of financial position and performance
by business segment presented here is based on the ap-
proach used by management in monitoring Group perfor-
mance for the two years being compared.
As already discussed in note 6 to the consolidated financial
statements, segment reporting has been reformulated be-
cause in March 2020 a number of large generation custo-
mers were reallocated to the End-user Market segment in
South America and Mexico.
In order to ensure full comparability of the figures com-
mented here in the light of the new breakdown of the pri-
mary and secondary reporting segments for IFRS 8 disclo-
sure purposes, the comparative figures for 2019 have been
restated appropriately.
For more information on performance and financial deve-
lopments during the year, please see the dedicated section
in the Report on Operations.
265
Integrated Annual Report 2020 Segment reporting for 2020 and 2019
RESULTS FOR 2020 (1)
Millions of euro
Revenue and other
income from third
parties
Revenue and other
income from
transactions with
other segments
Total revenue
Total costs
Net income/
(expense) from
commodity
derivatives
Depreciation and
amortization
Impairment losses
Impairment gains
Operating profit/
(loss)
Capital expenditure
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations and
adjustments
Total
19,350
7,409
17,824
17,647
970
1,803
(18)
64,985
1,454
20,804
18,570
283
7,692
3,113
1,518
19,342
11,909
11,861
29,508
26,651
151
1,121
969
67
1,870
1,911
(15,334)
-
(15,352)
64,985
(15,166)
47,957
(534)
68
-
264
778
950
(43)
15
694
1,252
728
(67)
2,734
4,629
2,597
621
(47)
4,262
3,937
366
1,079
(141)
1,817
460
-
150
18
-
(16)
303
(6)
172
11
(4)
(226)
103
(4)
28
1
(1)
(212)
5,343
3,408
(303)
(218)
71
8,368
10,197
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments. An analogous approach was taken for
other income and costs for the year.
RESULTS FOR 2019 (1) (2)
Millions of euro
Revenue and other
income from third
parties
Revenue and other
income from
transactions with other
segments
Total revenue
Total costs
Net income/(expense)
from commodity
derivatives
Depreciation and
amortization
Impairment losses
Impairment gains
Operating profit/(loss)
Capital expenditure
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations and
adjustments
Total
30,480
7,344
20,092
19,537
967
1,901
6
80,327
1,532
32,012
29,972
(676)
1,142
4,031
(284)
(3,525)
851
373
7,717
3,143
14
1,241
99
(12)
3,260
4,293 (3)
1,697
21,789
13,511
13,062
163
32,599
1,130
29,194
972
80
1,981
1,855
(16,907)
(16,901)
(16,757)
-
80,327
61,890
-
(71)
-
2,692
371
(62)
5,277
3,905
333
930
(139)
2,210
449
145
111
-
(98)
270
-
171
33
(3)
(75)
134
-
26
1
-
(171)
45
(733)
5,750
5,576
(500)
6,878
9,947
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments. An analogous approach was taken for
other income and costs for the year.
(2) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to
large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
(3) Does not include €4 million regarding units classified as “held for sale”.
266266
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations and
adjustments
Financial position by segment
AT DECEMBER 31, 2020
Millions of euro
Property, plant and
equipment
Intangible assets
Non-current and
current contract
assets
Trade receivables
Other
10,747
184
4
2,670
1,433
30,655
4,883
1
2,053
1,095
Operating assets
15,038 (1)
38,687 (2)
Trade payables
Non-current and
current contract
liabilities
Sundry provisions
Other
Operating liabilities
2,816
2,751
147
3,528
1,133
7,624
152
947
1,434
5,284 (4)
(1) Of which €3 million regarding units classified as “held for sale”.
(2) Of which €855 million regarding units classified as “held for sale”.
(3) Of which €11 million regarding units classified as “held for sale”.
(4) Of which €35 million regarding units classified as “held for sale”.
AT DECEMBER 31, 2019 (1)
36,718
21,490
340
6,493
2,674
67,715
5,405
7,172
3,794
7,856
24,227
Millions of euro
Property, plant and
equipment
Intangible assets
Non-current and
current contract
assets
Trade receivables
Other
11,863
134
30,351
4,697
36,333
23,782
-
3,181
1,426
-
1,711
1,421
482
7,703
1,654
Operating assets
16,604 (2)
38,180 (3)
69,954 (4)
Trade payables
Non-current and
current contract
liabilities
Sundry provisions
Other
Operating liabilities
3,375
2,192
5,417
199
3,410
1,074
8,058
167
903
1,843
5,105
7,271
4,412
8,867
25,967 (5)
Total
79,499
31,505
480
12,052
6,212
154
3,775
-
4,034
756
516
676
42
358
297
699
418
14
755
769
10
79
79
(4,311)
(812)
8,719
1,889 (3)
2,655
(4,955)
129,748
4,678
426
868
(4,061)
12,883
42
400
2,245
7,365
5
46
179
8
603
1,101
(60)
479
284
7,466
9,797
14,232
656
2,580
(3,358)
44,378
Other,
eliminations
and
adjustments
11
29
43
(4,633)
(1,350)
Total
79,823
33,337
653
13,083
6,075
(5,900)
132,971
(4,417)
12,960
(104)
459
(503)
7,629
10,290
15,789
(4,565)
46,668
160
3,624
-
3,838
543
8,165
5,030
75
494
2,642
8,241
442
605
53
607
1,098
2,805
414
5
34
415
868
663
466
75
676
1,283
3,163
949
16
578
1,451
2,994
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
(1) The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in South America and Mexico amounts attributable to
large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.
(2) Of which €4 million regarding units classified as “held for sale”.
(3) Of which €7 million regarding units classified as “held for sale”.
(4) Of which €10 million regarding units classified as “held for sale”.
(5) Of which €3 million regarding units classified as “held for sale”.
267
Integrated Annual Report 2020 The following table reconciles segment assets and liabili-
ties and the consolidated figures.
Millions of euro
Total assets
Equity-accounted investments
Non-current financial derivative assets
Other non-current financial assets
Non-current tax assets included in “Other non-current assets”
Other current financial assets
Current financial derivative assets
Cash and cash equivalents
Deferred tax assets
Tax assets
Financial and tax assets of “Assets held for sale”
Segment assets
Total liabilities
Long-term borrowings
Non-current financial derivative liabilities
Short-term borrowings
Current portion of long-term borrowings
Other current financial liabilities
Current financial derivative liabilities
Deferred tax liabilities
Income tax liabilities
Other tax liabilities
Financial and tax liabilities of “Liabilities included in disposal groups
held for sale”
Segment liabilities
at Dec. 31, 2020
at Dec. 31, 2019
163,453
171,426
861
1,236
5,159
1,539
5,113
3,471
5,906
8,578
1,294
548
129,748
121,096
49,519
3,606
6,345
3,168
622
3,531
7,797
471
886
773
44,378
1,682
1,383
6,006
1,587
4,305
4,065
9,029
9,112
1,206
80
132,971
124,488
54,174
2,407
3,917
3,409
754
3,554
8,314
209
1,082
-
46,668
268268
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Information on the
income statement
Revenue
9.a Revenue from sales and services -
€62,623 million
Millions of euro
Sale of electricity (1)
Transport of electricity (1)
Fees from network operators
Transfers from institutional market operators
Sale of gas
Transport of gas
Sale of fuel
Fees for connection to electricity and gas networks
Construction contracts
Sale of environmental certificates
Sale of value-added services
Other sales and services
Total IFRS 15 revenue
Sale of energy commodities under contracts with
physical settlement (IFRS 9)
Fair value gain/(loss) on derivatives on sale of
commodities with physical settlement (IFRS 9)
Other revenue
Total revenue from sales and services
2020
34,745
10,710
932
1,395
2,718
611
602
759
732
35
862
764
2019
39,584
10,931
866
1,625
3,294
617
914
785
749
36
918
720
54,865
61,039
7,513
224
21
62,623
10,775
5,519
33
77,366
Change
(4,839)
(221)
66
(230)
(576)
(6)
(312)
(26)
(17)
(1)
(56)
44
(6,174)
(3,262)
(5,295)
(12)
(14,743)
-12.2%
-2.0%
7.6%
-14.2%
-17.5%
-1.0%
-34.1%
-3.3%
-2.3%
-2.8%
-6.1%
6.1%
-10.1%
-30.3%
-95.9%
-36.4%
-19.1%
(1)
In the Distribution segment in Colombia, a number of items previously classified under “Sale of electricity” were reclassified to “Transport of electricity” to
improve the presentation of the data. In order to ensure the uniformity and comparability of the figures, the amounts for 2019 have also been reclassified in
the total amount of €461 million.
Revenue from the “sale of electricity” amounted to
Revenue from “transport of electricity” amounted to
€34,745 million, a decrease of €4,839 million compared
€10,710 million in 2020, a decrease of €221 million that
with the previous year (-12.2%). The reduction is mainly due
was mainly attributable to the reduction in electricity tran-
to:
sported on the grid due to the effects of the COVID-19
› a decrease in revenue from the sale of electricity to end
pandemic.
users on both the regulated and the free markets in
Spain (€1,390 million) and Italy (€808 million), reflecting
“Transfers from institutional market operators” decre-
in particular the effects of the COVID-19 pandemic, whi-
ased by €230 million compared with the previous year,
ch on the free market caused a decline in sales volumes
reflecting the entry into force of the new 2020-2025 re-
involved in business-to-business transactions;
muneration parameters for extra-peninsular generation in
› a significant reduction in revenue in Latin America
Spain following a decrease in demand and an increase in
(€2,248 million), due in particular to the depreciation of
commodity prices.
local currencies against the euro and the contraction in
volumes and the average prices applied to sales;
Revenue from the “sale of gas” in 2020 amounted to
› a reduction in revenue registered by Enel Global Trading
€2,718 million (€3,294 million in 2019), a decrease of €576
(€82 million) as a result of lower sales on the spot market
million compared with the previous year. This reduction,
in Italy, mainly due to the fall in electricity prices;
concentrated mainly in Spain and Italy, also reflected the
› a decline in revenue in Russia (€362 million) following the
decline in quantities sold connected with the COVID-19
sale of the Reftinskaya coal plant in October 2019.
health emergency.
269
Integrated Annual Report 2020
Revenue from the “sale of fuel” fell by €312 million due to
the fair value measurement of those contracts decreased
a reduction in volumes handled by Enel Global Trading,
by a total of €8,557 million, reflecting the contraction in
reflecting in part the energy transition initiated by the
volumes traded and a decline in spot prices.
Group and the consequent decline in conventional gene-
ration.
The following table shows the net charges in respect of
contracts for the purchase and sale of commodities with
Revenue from the sale of energy commodities under con-
physical settlement measured at fair value through profit
tracts with physical settlement (IFRS 9) and the gain from
or loss within the scope of IFRS 9.
Millions of euro
Contracts for sale of energy commodities with
physical settlement (within the scope of IFRS 9)
Electricity
Sale of electricity
Fair value gain on contracts for sale of electricity
Total electricity
Gas
Sale of gas
Fair value gain on contracts for sale of gas
Total gas
Environmental certificates
Sale of environmental certificates
Fair value gain/(loss) on contracts for sale of
environmental certificates
Total environmental certificates
TOTAL REVENUE
Contracts for purchase of energy commodities with
physical settlement (within the scope of IFRS 9)
Electricity
Purchase of electricity
Fair value gain/(loss) on contracts for purchase of
electricity
Total electricity
Gas
Purchase of gas
Fair value gain/(loss) on contracts for purchase of
gas
Total gas
Environmental certificates
Purchase of environmental certificates
Fair value gain on contracts for purchase of
environmental certificates
Total environmental certificates
TOTAL CHARGES
NET CHARGES
270270
2020
2019
Change
2,478
156
2,634
4,723
123
4,846
312
(55)
257
7,737
4,011
(155)
3,856
4,664
(185)
4,479
301
71
372
8,707
(970)
4,278
988
5,266
6,235
4,296
10,531
262
235
497
16,294
7,064
233
7,297
6,575
4,094
10,669
1,060
256
1,316
19,282
(2,988)
(1,800)
(832)
(2,632)
(1,512)
(4,173)
(5,685)
50
(290)
(240)
(8,557)
(3,053)
(388)
(3,441)
(1,911)
(4,279)
(6,190)
(759)
(185)
(944)
(10,575)
2,018
-72.6%
-
-
-32.0%
-
-
16.0%
-
-93.4%
-
-76.1%
-
-89.2%
-41.0%
-
-
-
-
-
-
-
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Revenue from contracts with customers (IFRS 15) for 2020
time” and “over time” revenue as indicated in the following
amounted to €54,865 million, and break down into “point in
table.
Millions of euro
2020
Iberia
Latin America
Europe
North
America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Point
in
time
Over
time
Point
in
time
Point
in
time
Point
in
time
Over
time
Over
time
Over
time
Point
in
time
Over
time
Over
time
Point in
time
Over
time
Total
Point
in
time
Italy
Point
in
time
Over
time
21,107
441 16,355
460 13,433
200 1,418
580
586
51
67
79
16
72 52,982 1,883
2019
Iberia
Latin America
Europe
North
America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Point
in
time
Over
time
Point
in
time
Point
in
time
Point
in
time
Over
time
Over
time
Over
time
Point
in
time
Over
time
Over
time
Point in
time
Over
time
Total
Point
in
time
Italy
Point
in
time
Over
time
22,635
522 17,860
785 15,573
503 1,383
934
646
27
76
81
7
7 58,180 2,859
Total IFRS 15
revenue
Millions of euro
Total IFRS 15
revenue
The table below gives a breakdown of revenue from sales
and services by geographical segment.
Millions of euro
Italy
Europe
Iberia
France
Switzerland
Germany
Austria
Slovenia
Romania
Greece
Bulgaria
Belgium
Czech Republic
Hungary
Russia
Netherlands
United Kingdom
Other European countries
Americas
United States
Canada
Mexico
Brazil
Chile
Peru
Colombia
Argentina
Panama
Other
Africa
Asia
Total
2020
23,968
16,173
503
99
1,860
66
2
1,322
110
9
18
33
165
533
2,743
399
78
502
25
218
6,666
2,811
1,118
2,022
816
136
79
149
62,623
2019
26,420
18,265
1,259
217
3,746
173
40
1,311
73
8
26
152
418
897
6,553
726
(22)
501
18
233
7,752
3,263
1,261
2,243
1,323
169
92
249
77,366
271
Integrated Annual Report 2020 Performance obligations
related revenue recognition policies.
The following table provides information about the Group’s
performance obligations arising from contracts with cu-
stomers with reference to the main revenue streams only,
with a summary of the specific judgments made and the
For information on the use of estimates with revenue from
contracts with customers, please see note 2.1 “Use of esti-
mates and management judgment”.
Type of product/
service
Nature and timing of satisfaction of performance
obligation
Accounting policies
Revenue from the sale and transport of electricity/gas
to end users is recognized when these commodities are
delivered to the customer and is based on the quantities
provided during the period, even if these have not yet
been invoiced. It is determined using estimates as well
as periodic meter readings. Where applicable, this
revenue is based on the rates and related restrictions
established by law or by the Regulatory Authority for
Energy, Networks and the Environment (ARERA) and
analogous foreign authorities during the applicable
period.
Sale/transport of
electricity/gas
to end users
An electricity/gas supply agreement signed with an
end user includes a single performance obligation
(sale and transport of the commodity) because the
Group has determined that the contract does not
provide distinct goods/services and the promise is
satisfied by transferring control over the commodity
to the customer when it is delivered at the point
of delivery. In order to determine the nature of the
promise included in such contracts, the Group
carefully analyzes the facts and circumstances
applicable to each contract and commodity.
However, the Group considers that the performance
obligation provided for in a repetitive service
contract, such as a supply or transport contract
for the provision of electricity/gas to end users, is
typically satisfied over time (because the customer
simultaneously receives and consumes the benefits of
the commodity as it is delivered) as part of a series of
distinct goods/services (i.e., each unit of commodity)
that are substantially the same and have the same
pattern of transfer to the customer. In these cases, the
Group applies an output method to recognize revenue
in the amount to which it has a right to invoice the
customer if that amount corresponds directly with the
value to the customer of the performance completed
to date.
272272
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Type of product/
service
Nature and timing of satisfaction of performance
obligation
Accounting policies
The network connection fees received from
customers for connecting them to the electricity/
gas distribution networks require a specific Group
assessment to take into consideration all terms and
conditions of the connection arrangements.
This assessment is intended to determine whether
the contract includes other distinct goods or
services, such as for example the right to obtain
ongoing access to the infrastructure in order to
receive the commodity or, when the connection fee
is a “non-refundable up-front fee” paid at or near
contract inception, a material right that gives rise to a
performance obligation.
In particular, in some countries in which the Group
operates, it has determined that the nature of the
consideration received represents a “non-refundable
up-front fee” whose payment provides a material right
to the customer. In order to determine if the period
over which this material right should be recognized
extends beyond the initial contractual period, the
Group takes into consideration the applicable local
legal and regulatory framework applicable to the
contract and affecting the parties. In such cases, if
there is an implied assignment of the material right
and an obligation from the initial customer to the
new customer, the Group recognizes the connection
fee over a period beyond the relationship with the
initial customer, considering the concession terms as
the period during which the initial customer and any
future customer can benefit from the ongoing access
without paying an additional connection fee. As a
consequence, the fee is recognized over the period
for which the payment creates an obligation for the
Group to make the lower prices available to future
customers (i.e., the period during which the customer
is expected to benefit from the ongoing access
service without having to pay an “up-front fee” upon
renewal).
The construction contracts typically include a
performance obligation satisfied over time. For
these contracts, the Group generally considers it
appropriate to use an input method for measuring
progress, except when a specific contract analysis
suggests the use of an alternative method that better
depicts the Group’s performance obligation fulfilled at
the reporting date.
Network connection
services
Construction
contracts
Revenue from monetary and in-kind fees for connection
to the electricity and gas distribution network is
recognized on the basis of the satisfaction of the
performance obligations included in the contract. The
identification of distinct goods or services requires
a careful analysis of the terms and conditions of
the connection arrangements, which could vary
from country to country based on the local context,
regulations and law. In order to finalize this assessment,
the Group considers not only the characteristics of the
goods/services themselves (i.e., the good or service is
capable of being distinct) but also the implied promises
for which the customer has a valid expectation as
it views those promises as part of the negotiated
exchange, that is goods/services that the customer
expects to receive and has paid for (i.e., the promise
to transfer the good or service to the customer is
separately identifiable from other promises in the
contract).
Furthermore, the Group acts as an agent in some
contracts for electricity/gas network connection
services and other related activities, depending on
local legal and regulatory framework. In such cases, it
recognizes revenue on a net basis, corresponding to
any fee or commission to which it expects to be entitled.
For construction contracts that include a performance
obligation satisfied over time, the Group recognizes
revenue over time by measuring progress toward the
complete satisfaction of that performance obligation.
The cost-to-cost method is generally considered
the best method to depict the Group’s performance
obligation fulfilled at the reporting date.
The amount due from customers under a construction
contract is presented as a contract asset; the amount
due to customers under a construction contract is
presented as a contract liability.
273
Integrated Annual Report 2020 9.b Other income - €2,362 million
Millions of euro
Operating grants
Grants for environmental certificates
Capital grants (electricity and gas business)
Sundry reimbursements
Gains on the disposal of subsidiaries, associates,
joint ventures, joint operations and non-current
assets held for sale
Gains on the disposal of property, plant and
equipment, and intangible assets
Service continuity bonuses
Other income
Total
2020
12
342
24
371
15
58
40
1,500
2,362
2019
19
475
25
521
325
79
32
1,485
2,961
Change
(7)
(133)
(1)
(150)
(310)
(21)
8
15
(599)
-36.8%
-28.0%
-4.0%
-28.8%
-95.4%
-26.6%
25.0%
1.0%
-20.2%
“Grants for environmental certificates” amounted to €342
“Other income” increased by €15 million, mainly due to the
million, a decrease of €133 million compared with the
recognition in 2020 of:
previous year, mainly registered by e-distribuzione due to
› an increase in income recognized by e-distribuzione for
a decrease in grants received from the Energy and Envi-
the reimbursement of system charges and grid fees on
ronmental Services Fund for energy efficiency certificates
the basis of Resolutions no. 50/2018 and 461/2020 of
(EECs), mainly reflecting the decrease in quantities handled.
the Regulatory Authority for Energy, Networks and the
Environment (ARERA) (€158 million);
“Sundry reimbursements” mainly declined due to the effect
› an increase registered by Enel North America in income
of the recognition in 2019 of the contractually envisaged
from tax partnerships (€139 million), other revenue from
reimbursement due following the exercise by a large indu-
indemnities and litigation (€31 million) and the sale of the
strial customer of an option to withdraw from a contract
Haystack wind project (€45 million);
for the supply of electricity from Enel Generación Chile
› income for the eco-bonus subsidy relating to energy and
(€160 million, of which €80 million relating to the Thermal
seismic upgrading posted by Enel X Italia (€20 million);
Generation and Trading Business Line and €80 million rela-
› the negative goodwill recognized on the acquisition of
ting to the Enel Green Power Business Line).
Paytipper following the completion of the purchase price
allocation process (€20 million).
Gains on the disposal of subsidiaries, associates, joint ven-
In 2019, this item mainly included income for:
tures, joint operations and non-current assets held for sale
› the early all-inclusive settlement of the second indemnity
came to €15 million in 2020, a decrease of €310 million,
of €50 million connected with the disposal in 2009 of the
which mainly reflected:
interest held by e-distribuzione in Enel Rete Gas;
› the gain on the sale of Mercure Srl, a special-purpose
› Edesur’s settlement agreement (€233 million) with the
vehicle to which Enel Produzione had previously transfer-
Argentine government to resolve reciprocal disputes ori-
red the Valle del Mercure biomass plant (€108 million);
ginating in the period from 2006 to 2016;
› the negative goodwill (of €181 million) resulting from the
› the price adjustment in the acquisition of eMotorWerks
definitive allocation of the purchase price of (i) a num-
in 2017 following the application of contractual clauses
ber of companies sold by Enel Green Power North Ame-
(€98 million).
rica Renewable Energy Partners LLC (€106 million) and (ii)
Tradewind, which transitioned from being an associate
The following table shows a breakdown of total revenue by
to a wholly-owned subsidiary (negative goodwill of €75
business segment based on the approach used by mana-
million);
gement to monitor the Group’s performance during the
› the gains of €42 million on the disposals of Gratiot and Out-
two years being compared.
law, two renewable energy projects developed by Tradewind.
274274
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 77,366
2,961
80,327
-22.9%
-25.7%
-
-6.4%
-53.1%
-34.2%
Millions of euro
2020
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
20,242
562
20,804
31,705
307
32,012
7,150
542
7,692
7,157
560
7,717
18,381
961
19,342
20,599
1,190
21,789
29,151
357
29,508
2019
32,098
501
32,599
1,026
95
1,121
1,011
119
1,130
Revenue from
sales and services
Other income
Total revenue
Revenue from
sales and services
Other income
Total revenue
Costs
Other,
eliminations
and
adjustments
(15,168)
(184)
Total
62,623
2,362
(15,352)
64,985
1,841
29
1,870
1,946
35
(17,150)
249
1,981
(16,901)
10.a Electricity, gas and fuel – €25,049 million
Millions of euro
Electricity (1)
Gas (1)
Fair value gain/(loss) on contracts for purchase of
electricity and gas (IFRS 9)
Nuclear fuel
Other fuels
Total
2020
16,158
7,952
(340)
117
1,162
25,049
2019
20,449
10,706
4,327
125
2,475
38,082
Change
(4,679)
(2,754)
(4,667)
(8)
(1,313)
(13,033)
(1) The 2019 figures have been adjusted to take account of the reclassification of the fair value gain/(loss) on contracts for the purchase of commodities with
physical settlement (IFRS 9) from “Other operating costs”.
Costs for the purchase of “electricity” mainly decreased
Purchases from contracts with physical settlement (IFRS 9)
due to a decline in volumes purchased in an environment
and the gain/(loss) from the fair value measurement of such
of decreasing average prices, mainly attributable to the ef-
contracts showed a decrease of €4,667 million compared with
fects of the COVID-19 pandemic.
the previous year, mainly attributable to gas (€4,279 million).
The decrease in costs for the purchase of “gas” reflects the
The reduction in “other fuels” is mainly attributable to the
decline in quantities handled, mainly due to a reduction in
decline in the volume of thermal generation. and includes
generation, as well as the fall in the cost of gas. In particular,
the write-down of fuel inventories connected with coal-fi-
the latter factor also reflected the financial benefit of the
red plants in Italy and Spain as a result of the energy tran-
finalization of the agreement with NLNG on the price review
sition process.
applied to Nigerian supplies.
275
Integrated Annual Report 2020
10.b Services and other materials -
€18,298 million
Millions of euro
Wheeling
Maintenance and repairs
Telephone and postal costs
Communication services
IT services
Leases and rentals
Other services
Purchase of environmental certificates
Fair value gain on contracts for purchase
of environmental certificates (IFRS 9) (1)
Other materials
Total
2020
9,619
1,127
172
116
823
396
3,648
673
71
1,653
18,298
2019
9,879
1,145
181
142
806
382
3,935
481
256
1,629
18,836
Change
(260)
(18)
(9)
(26)
17
14
(287)
192
(185)
24
(538)
-2.6%
-1.6%
-5.0%
-18.3%
2.1%
3.7%
-7.3%
39.9%
-72.3%
1.5%
-2.9%
(1) The 2019 figures have been adjusted to take account of the reclassification of the fair value gain on contracts for the purchase of commodities with physi-
cal settlement (IFRS 9) from “Other operating costs”.
Costs for services and other materials, equal to €18,298
essentially due to the decrease in costs for services con-
million in 2020, decreased by €538 million compared with
nected with the electricity and gas business (€93 million),
2019, mainly due to:
the value-added services business (€40 million) and tra-
› a decline in wheeling costs, mainly in Spain, Chile and
vel expenses (€85 million).
Brazil, connected with the contraction in volumes tran-
All of the effects mentioned above were substantially af-
sported;
fected by the measures introduced to counter the CO-
› a reduction in costs for “other services” of €287 million,
VID-19 pandemic.
10.c Personnel expenses - €4,793 million
Millions of euro
Wages and salaries
Social security contributions
Italian post-employment benefits
Post-employment and other long-term benefits
Early retirement incentives
Early retirement incentives connected with
restructuring agreements
Other costs
Total
2020
3,133
824
103
(485)
152
882
184
4,793
2019
3,240
875
103
108
101
-
207
4,634
Change
(107)
(51)
-
(593)
51
882
(23)
159
-3.3%
-5.8%
-
-
50.5%
-
-11.1%
3.4%
Personnel expenses amounted to €4,793 million in 2020, an
› the sale of the Reftinskaya GRES plant in Russia;
increase of €159 million.
› the disposal of hydro plants in the United States;
The Group’s workforce decreased by 1,536 employees,
› the acquisition of Viva Labs.
mainly reflecting the negative balance between new hires
and terminations (565 employees) due to early-retirement
The decrease in “wages and salaries” substantially reflects
incentive policies and changes in the consolidation scope
the lower average and total number of employees in 2020.
(-971 employees), essentially attributable to:
The €593 million decrease in “post-employment and other
276276
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements long-term benefits” is mainly attributable to the modifi-
agreement concerning the suspension of employment re-
cation in Spain of the electricity discount benefit for em-
lationships for certain individual contracts as a result of the
ployees following the renewal of the 5th Endesa Collective
signing of the new collective bargaining agreement men-
Bargaining Agreement, which led to the release of the as-
tioned above, and in Italy, in reflection of terminations of
sociated provision in the amount of €515 million.
employment in application of the provisions of Article 4 of
Expenses for “early retirement incentives” in 2020 amoun-
Law 92/2012 (the “Fornero Act”) applied mainly in 2018.
ted to €152 million, up €51 million, with most of the increase
coming in Spain, due to the accrual to the provision for the
The table below shows the average number of employe-
Plan de Salida in the amount of €783 million prompted by
es by category, along with a comparison with the previous
elimination of the extinguishment option of the individual
year, and the headcount as of December 31, 2020.
No.
Senior managers
Middle managers
Office staff
Blue collar
Total
Average (1)
Headcount (1)
Change
at Dec. 31, 2020
2020
1,397
11,258
36,027
18,396
67,078
2019
1,375
11,016
35,066
20,846
68,303
22
242
961
(2,450)
(1,225)
(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel’s percentage share of the total.
10.d Net impairment losses on trade receivables
and other financial assets - €1,285 million
Millions of euro
Impairment losses on trade receivables
Impairment losses on other financial assets
Total impairment losses on trade receivables
and other financial assets
Impairment gains on trade receivables
Impairment gains on other financial assets
Total impairment gains on trade receivables
and other financial assets
NET IMPAIRMENT LOSSES ON TRADE
RECEIVABLES AND OTHER FINANCIAL ASSETS
2020
1,505
46
1,551
(194)
(72)
(266)
1,285
2019
1,239
116
1,355
(202)
(9)
(211)
1,144
Change
266
(70)
196
8
(63)
(55)
141
1,397
11,592
35,883
17,845
66,717
21.5%
-60.3%
14.5%
-
-
-
12.3%
The item, equal to €1,285 million, includes impairment
increased by a total of €141 million compared with 2019,
losses and gains on trade receivables and other financial
primarily in Italy, mainly in reflection of the effects of the
assets. The net impairment losses on trade receivables
COVID-19 pandemic.
277
Integrated Annual Report 2020 10.e Depreciation, amortization and other
impairment losses - €7,163 million
Millions of euro
Property, plant and equipment
Investment property
Intangible assets
Other impairment losses
Other reversals of impairment losses
Total
2020
4,118
2
1,223
1,857
(37)
7,163
2019
4,481
3
1,266
4,221
(289)
9,682
Change
(363)
(1)
(43)
(2,364)
252
(2,519)
-8.1%
-33.3%
-3.4%
-56.0%
-87.2%
-26.0%
The decrease in “depreciation, amortization and other im-
› the impairment losses on of the Mexico, Argentina and
pairment losses” in 2020 was essentially attributable to the
Australia CGUs in the total amount of €750 million;
effect of the impairment losses recognized in 2019 on cer-
› other impairment losses of €159 million, the most signi-
tain coal-fired plants in Italy, Spain, Chile and Russia totaling
ficant of which regarded the solar panel manufacturing
€4,010 million and the consequent decrease in deprecia-
plants of Enel Green Power in Italy (65 million) and the
tion recognized in 2020.
Snyder plant in the United States (€47 million).
These effects were partially offset by:
Note that the impairment losses recognized in respect of
› the impairment loss recognized in 2020 on the Chilean
coal plants in 2020 and 2019 are linked to the achievement
coal plant of Bocamina II (€737 million);
of the Group’s strategic objective for the decarbonization
› the impairment losses on a number of coal plants in Italy
of generation and that the impacts of climate change were
in the amount of €135 million, including Unit 2 of the
taken into account in carrying out the impairment tests.
Brindisi power plant;
10.f Other operating costs -
€2,202 million
Millions of euro
System charges - emissions allowances
Charges for energy efficiency certificates
Charges for purchases of green certificates
Losses on disposal of property, plant and
equipment, and intangible assets
Taxes and duties
Other
Total (1)
2020
90
277
61
65
1,130
579
2,202
2019
430
416
62
76
1,035
674
2,693
Change
(340)
(139)
(1)
(11)
95
(95)
(491)
-79.1%
-33.4%
-1.6%
-14.5%
9.2%
-14.1%
-18.2%
(1) The 2019 figures have been adjusted to take account of the fair value gain on contracts for the purchase of commodities with physical settlement (IFRS 9)
from “Other operating costs” to “Electricity, gas and fuel” and “Services and other materials”.
Other operating costs decreased by €491 million com-
These factors were partly offset by higher taxes and duties
pared with the previous year, mainly due to a reduction in
in Spain, mainly reflecting the effect of the temporary su-
environmental compliance charges in Italy and the effect
spension for 2019 of the tax on the generation of electri-
of the recognition in 2019 of capital losses by Enel North
city and on fuels used in conventional thermal and nuclear
America, mainly reflecting the sale of a number of com-
generation (Royal Decree Law 15/2018) as well as the intro-
panies owning wind farms that were measured using the
duction from July 2020 of a new “eco-tax” in Catalonia.
equity method.
278278
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 10.g Capitalized costs - €(2,385) million
Millions of euro
Personnel
Materials
Other
Total
2020
(836)
(846)
(703)
2019
(899)
(980)
(476)
(2,385)
(2,355)
Change
63
134
(227)
(30)
-7.0%
-13.7%
-47.7%
-1.3%
Capitalized costs increased by €30 million, mainly for the
the Enel Green Power Business Line and new commercial
in-house development and construction of new plants by
initiatives undertaken in the Enel X Business Line.
11. Net expense from commodity
derivatives – €(212) million
Millions of euro
Income:
- income from derivatives designated as hedging
derivatives
- income from derivatives at fair value through
profit or loss
Total income
Expense:
- expense from derivatives designated as hedging
derivatives
- expense from derivatives at fair value through
profit or loss
Total expense
NET EXPENSE FROM COMMODITY DERIVATIVES
2020
2019
Change
76
4,904
4,980
(132)
(5,060)
(5,192)
(212)
200
1,311
1,511
(23)
(2,221)
(2,244)
(733)
(124)
3,593
3,469
(109)
(2,839)
(2,948)
521
-62.0%
-
-
-
-
-
-71.1%
Net expense from commodity derivatives amounted to
› net expense from derivatives at fair value through profit
€212 million for 2020 (compared with net expense of €733
or loss in the amount of €156 million (compared with net
million in 2019), which can be broken down as follows:
expense of €910 million in 2019).
› net expense from cash flow hedge derivatives in the
For more information on derivatives, see note 47 “Derivati-
amount of €56 million (compared with net income of
ves and hedge accounting”.
€177 million in 2019);
279
Integrated Annual Report 2020 12. Net financial income/(expense) from
derivatives - €(941) million
Millions of euro
Income:
- income from derivatives designated as hedging
derivatives
- income from derivatives at fair value through
profit or loss
Total income
Expense:
- expense from derivatives designated as hedging
derivatives
- expense from derivatives at fair value through
profit or loss
Total expense
NET FINANCIAL INCOME/(EXPENSE) FROM
DERIVATIVES
2020
2019
Change
639
676
1,315
(1,945)
(311)
(2,256)
(941)
1,120
364
1,484
(538)
(604)
(1,142)
342
(481)
312
(169)
(1,407)
293
(1,114)
(1,283)
-42.9%
85.7%
-11.4%
-
-48.5%
97.5%
-
Net expense from derivatives on interest and exchange ra-
› net income from derivatives at fair value through profit
tes amounted to €941 million for 2020 (compared with net
or loss in the amount of €365 million (compared with net
income of €342 million in 2019), which can be broken down
expense of €240 million in 2019).
as follows:
The net balances recognized in 2020 on both hedging and
› net expense from derivatives designated as hedging de-
trading derivatives mainly refer to the hedging of currency
rivatives in the amount of €1,306 million (compared with
risk. For more information on derivatives, see note 47 “De-
net income of €582 million in 2019), mainly in respect of
rivatives and hedge accounting”.
cash flow hedges;
13. Net other financial income/(expense) -
€(1,665) million
OTHER FINANCIAL INCOME
Millions of euro
Interest income from financial assets
(current and non-current):
- interest income at effective rate on non-current
securities and financial assets
- interest income at effective rate on current
financial investments
Total interest income at the effective interest rate
Financial income on non-current securities at fair
value through profit or loss
Exchange gains
Income on equity investments
Income from hyperinflation
Other income
TOTAL OTHER FINANCIAL INCOME
280280
2020
2019
Change
110
69
179
-
2,182
23
529
379
3,292
126
162
288
-
915
4
832
430
2,469
(16)
(93)
(109)
-
1,267
19
(303)
(51)
823
-12.7%
-57.4%
-37.8%
-
-
-
-36.4%
-11.9%
33.3%
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Other financial income, equal to €3,292 million, increased by
of IAS 29 related to accounting for hyperinflationary econo-
€823 million compared with the previous year, due mainly to
mies (-€303 million). See note 4 of the consolidated financial
an increase in exchange gains, partly offset by the reduction
statements at December 31, 2020 for more information.
in income from the application to the Argentine companies
OTHER FINANCIAL EXPENSE
Millions of euro
Interest expense on financial debt
(current and non-current):
- interest on bank borrowings
- interest expense on bonds
- interest expense on other borrowings
Total interest expense
Exchange losses
Adjustment to post-employment and other
employee benefits
Adjustment to other provisions
Expense from equity investments
Expense from hyperinflation
Other expenses
2020
2019
Change
291
1,887
149
2,327
1,245
109
150
1
472
653
386
2,030
183
2,599
1,229
135
186
2
737
367
(95)
(143)
(34)
(272)
16
(26)
(36)
(1)
(265)
196
(298)
-24.6%
-7.0%
-18.6%
-10.5%
1.3%
-19.3%
-19.4%
-50.0%
-36.0%
53.4%
-5.7%
TOTAL OTHER FINANCIAL EXPENSE
4,957
5,255
Other financial expense, equal to €4,957 million, showed
cation of IAS 29 in Argentina (-€265 million). These effects
an overall decrease of €298 million compared with 2019.
were partially offset by the impairment loss on the financial
The change is reflected in particular by a decrease in inte-
asset in respect of the sale of the investment in Slovenské
rest expense in the amount of €272 million, especially on
elektrárne (€401 million).
bonds, and a decrease in charges deriving from the appli-
14. Share of profit/(loss) of equity-accounted
investments - €(299) million
Millions of euro
Share of profit of associates
Share of loss of associates
Total
2020
131
(430)
(299)
2019
120
(242)
(122)
Change
11
(188)
(177)
9.2%
-77.7%
-
Net losses of equity-accounted investments increased by
› the profit posted by OpEn Fiber, which increased by €60
€177 million compared with the previous year. The change
million compared with 2019, mainly due to the tax benefit
was essentially due to the impairment loss on the invest-
registered by the company for the revaluation of assets
ment in Slovak Power Holding (€433 million) following the
under the provisions of Decree Law 104/2020;
signing of the general term agreement on December 22,
› €25 million in profit recognized in Spain in September
2020 between Enel Produzione and EPH, which modified a
2020 in respect of Nuclenor following the successful
number of terms and conditions of the agreement signed
settlement of a dispute;
on December 18, 2015 (as already amended in 2018) con-
› the recognition in 2019 of the effects of reacquiring 13
cerning the sale of the investment held by Enel Produzione
companies from EGPNA REP, which resulted in the reco-
in Slovenské elektrárne.
This negative effect was partly offset by:
gnition of a capital loss (€88 million) by EGPNA REP.
281
Integrated Annual Report 2020 15. Income taxes - €1,841 million
Millions of euro
Current taxes
Adjustments for income taxes relating to prior years
Total current taxes
Deferred tax expense
Deferred tax income
TOTAL
2020
1,898
(168)
1,730
180
(69)
1,841
2019
2,137
(132)
2,005
(567)
(602)
836
Change
(239)
(36)
(275)
747
533
1,005
-11.2%
-27.3%
-13.7%
-
-88.5%
-
The increase in taxes in 2020 compared with the previous
gnized in Argentina by the generation companies Enel
year is essentially attributable to the deferred tax assets
Generación Costanera and Central Dock Sud as a result
associated with the effect of the impairment losses con-
of exercising the “revalúo impositivo” option for tax in-
nected with the decarbonization process recognized in
centives. In return for payment of a tax in lieu, this me-
2019, while the impairment losses on certain assets of Slo-
chanism allows the remeasurement of certain assets for
venské elektrárne and the impairment losses on the Enel
tax purposes, resulting in the recognition of deferred tax
Produzione’s financial assets from EP Slovakia BV for the
assets and the greater deductibility of future deprecia-
sale of that holding essentially did not give rise to deferred
tion;
tax assets.
› the reversal of deferred tax liabilities by EGPNA as an an-
In addition, the tax burden increased in reflection of the fol-
cillary effect of the acquisition of a number of companies
lowing factors from the previous year:
from EGPNA REP;
› the release of €494 million in deferred taxes by Enel Di-
› the deductibility of goodwill resulting from the merger of
stribuição São Paulo following the merger with Enel Brasil
GasAtacama into Enel Generación Chile.
Investimentos Sudeste SA (Enel Sudeste);
› the agreement with the tax authorities concerning the
For more information on changes in deferred tax assets
“patent box” option, which provides for preferential ta-
and liabilities, see note 23.
xation of earnings resulting from the use of intellectual
The following table provides a reconciliation of the theore-
property (€53 million);
tical tax rate and the effective tax rate.
› a decrease in taxes (in the amount of €35 million) reco-
Millions of euro
Pre-tax profit
Theoretical taxes
Change in tax effect on impairment losses, capital
gains and negative goodwill
Reversal of deferred taxes in Brazil
Net effect on deferred taxation recognized with
timing mismatch
Impact on deferred taxation of changes in tax rates
Patent box mechanism in Italy
Remeasurement for tax purposes of certain assets
in Argentina
IRAP
Other differences, effect of different tax rates
abroad compared with the theoretical rate in Italy,
and other minor items
Total
282282
24.0%
2020
5,463
1,311
202
-
16
-
-
-
249
63
1,841
24.0%
2019
4,312
1,035
93
(494)
-
(33)
(53)
(35)
235
88
836
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 16. Basic and diluted earnings per share
Both of these indicators are calculated on the basis of the
(348,092 at December 31, 2019). The exact number of the
treasury shares at December 31, 2020 and December 31,
average number of ordinary shares for the year, equal to
2019 was equal to 3,269,152 and 1,549,152, respectively,
10,166,679,946, adjusted by the average number of trea-
with a par value of €1. For further information on treasury
sury shares acquired to support the Long-Term Incentive
shares, please see note 49 “Share-based payments”.
Plan (“LTI Plan”), equal to 2,067,594, with a par value of €1
Profit from continuing operations attributable to
owners of the Parent
Profit from discontinued operations attributable to
owners of the Parent (millions of euro)
Profit attributable to owners of the Parent (millions
of euro)
2020
2,610
-
2,610
2019
2,174
-
2,174
Number of ordinary shares
10,166,679,946
10,166,679,946
Change
436
-
436
-
Average number of ordinary shares, excluding
treasury shares
Basic and diluted earnings per share (euro)
Basic and diluted earnings from continuing
operations per share (euro)
Basic and diluted earnings from discontinued
operations per share (euro)
10,164,612,352
10,166,331,854
(1,719,502)
0.26
0.26
-
0.21
0.21
-
0.05
0.05
-
20.1%
-
20.1%
-
-
23.8%
23.8%
-
283
Integrated Annual Report 2020 Information on the
statement
of financial position
17. Property, plant and equipment -
€78,718 million
The breakdown of and changes in property, plant and equip-
ment for 2020 is shown below.
Millions of euro
Land
Buildings
Plant and
machinery
Industrial and
commercial
equipment
Other
assets
Leased
assets
Leasehold
improvements
Assets
under
construction
and advances
Total
663
10,265
160,068
527
1,471
2,614
-
5,469
96,604
366
1,149
613
663
4,796
63,464
161
322
2,001
2
8
277
188
2,780
2,711
(26)
(287)
(2,475)
-
(1)
-
(8)
-
(1)
-
(26)
-
(3)
(9)
(81)
(174)
(3,515)
(65)
-
75
-
11
(1,091)
31
15
(226)
(1,860)
23
1
(1)
-
(1)
(26)
-
-
(14)
-
(18)
81
57
4
19
(23)
(90)
(15)
(15)
(92)
-
-
17
-
10
(1)
(40)
(280)
(10)
-
572
-
174
637
10,263
159,411
523
1,487
2,994
-
5,456
97,807
380
1,155
819
637
4,807
61,604
143
332
2,175
427
291
136
7
13
(1)
-
-
(31)
-
-
-
-
(12)
443
319
124
8,266
184,301
-
104,492
8,266
79,809
5,155
8,329
(2,997)
-
(907)
(3,810)
15
(8)
-
(10)
(149)
(4,118)
(369)
(1,543)
-
261
31
925
(520)
630
(746)
(1,091)
8,896
184,654
-
105,936
8,896
78,718
Cost net of
accumulated
impairment
losses
Accumulated
depreciation
Balance at Dec.
31, 2019
Capital
expenditure
Assets entering
service
Exchange
differences
Change in the
consolidation
scope
Disposals
Depreciation
Impairment
losses
Impairment gains
Other changes
Reclassifications
from/to assets
held for sale
Total changes
Cost net of
accumulated
impairment
losses
Accumulated
depreciation
Balance at Dec.
31, 2020
284284
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Plant and machinery includes assets to be relinquished
For more information on leased assets, see note 19 below.
free of charge with a carrying amount of €8,083 million
(€8,976 million at December 31, 2019), largely regarding
The types of capital expenditure made during 2020 are
power plants in Iberia and Latin America amounting to
summarized below, including that on intangible assets and
€3,808 million (€4,267 million at December 31, 2019), and
investment property. These expenditures, totaling €9,548
the electricity distribution network in Latin America tota-
million, increased by €289 million from 2019, with the in-
ling €3,626 million (€3,911 million at December 31, 2019).
crease being particularly concentrated in solar power
plants.
Millions of euro
Power plants:
- thermal
- hydroelectric
- geothermal
- nuclear
- alternative energy sources
Total power plants
Electricity distribution networks (1)
Enel X (e-mobility, e-city, e-industries, e-home)
Retail customers
Other
TOTAL (2)
2020
452
332
145
137
4,007
5,073
3,288
303
460
424
9,548
2019
602
382
145
130
3,695
4,954
3,213
270
449
373
9,259
(1) The figure for 2020 does not include €649 million in respect of infrastructure investments within the scope of IFRIC 12 (€692 million in 2019).
(2) The figure for 2019 includes €4 million regarding units classified as “held for sale”.
The Enel Group, in line with the Paris agreements on CO2 emis-
sions reductions and guided by energy efficiency and energy
The exchange loss of €3,810 million primarily reflects the ge-
neral depreciation of South American currencies against the
transition objectives, has invested above all in generation plan-
euro.
ts that exploit alternative energy sources. Capital expenditure
The “change in the consolidation scope” in 2020 mainly refers
on generation plants mainly regard solar plants in Chile and
to the sale of a stake held in the Spanish company Endesa So-
wind farms in the United States, Russia, South Africa, India and
luciones SLU, in which the interest is now 14%, as well as the
Italy.
acquisition of control by Enel Green Power Italia of a number
In order to respond to ever more variable climate developmen-
of renewable energy companies.
ts and, therefore, enhance the resilience of grids, the Group
continued to invest in the Distribution Business Line (€3,288
“Impairment losses” amounted to €1,543 million and are
million). The €75 million increase is mainly attributable to hi-
mainly attributable to the decarbonization process initiated
gher investments in Italy and Romania for maintenance activi-
by the Group, which in 2020 led to the impairment loss of the
ties on grids and an increase in connection requests, partially
Bocamina II plant and certain assets of a number of Italian
offset by the contraction in investments in development and
thermal generation plants, as well as Unit 2 of the Brindisi Sud
service quality, especially in South America. Expenditure on
power plant. In addition, the Group took account of climate
digital meters decline as a result of the slowdown in the mass
change impacts in performing the impairment tests.
replacement of meters due to the COVID-19 emergency.
In the transition towards the sustainability of urban centers,
Following impairment testing, this item was also affected by
Enel X, convinced of the key role of electric mobility, has in-
the impairment loss of assets in Australia as a result of the de-
vested above all in the e-city business, particularly in Colom-
terioration of market conditions and in Mexico due to:
bia, with the E-Bus project. In Italy, following the introduction
› the increase in regulatory charges as a result of recently
of measures to revive the economy and to encourage energy
approved laws (“Porteo”);
upgrading and seismic resilience, Enel X has undertaken gre-
› a decrease in generation due to regulatory and plant
ater investments in the development of the e-Home business
constraints, with particular regard to the Dolores facility;
associated with the Vivi Meglio initiative.
› the deconsolidation of the hydroelectric plant.
285
Integrated Annual Report 2020 “Reclassifications from/to assets held for sale” refer mainly to
and site restoration costs in the amount of €142 million, new
the plants of the South African companies involved in Round
leases of €569 million and the effect of capitalizing interest on
4, Enel Green Power Bulgaria as well as the storage plant ow-
loans specifically dedicated to capital expenditure on proper-
ned by Tynemouth Energy Storage.
ty, plant and equipment of €154 million (€150 million in 2019),
“Other changes” include the provision for plant dismantling
broken down as follows.
Millions of euro
Enel Green Power
Enel Green Power Brazil
Enel Green Power North America
Enel Green Power México
Enel Green Power South Africa
Enel Américas Group
Enel Chile Group
Endesa Group (1)
EGP Spain Group
Enel Russia Group
EGP India Group
EGP Australia Group
EGP Colombia
Enel Produzione
Nuove Energie
Enel Green Power Italia
Enel Green Power Chile
Enel Finance International
Total (2)
2020
Rate %
2019
Rate %
Change
-
12
10
23
47
7
21
3
-
10
1
1
2
4
1
1
4
15
162
-
2.4%
0.2%
4.1%
6.3%
5.8%
7.2%
1.7%
-
7.2%
7.5%
3.4%
1.3%
4.3%
0.5%
3.3%
4.6%
1.8%
4
16
16
36
17
14
12
3
3
5
3
-
-
9
-
-
-
21
159
1.2%
5.8%
0.2%
7.0%
6.4%
8.3%
8.0%
1.8%
1.8%
9.13%
7.5%
4.8%
1.6%
(4)
(4)
(6)
(13)
30
(7)
9
-
(3)
5
(2)
1
2
(5)
1
1
4
(6)
3
-
-25.0%
-37.5%
-36.1%
-
-50.0%
75.0%
-
-
-
-66.7%
-
-
-55.6%
-
-
-
-28.6%
1.9%
(1) The 2020 amount for the EGP Spain Group is included in that for the Endesa Group.
(2) The total for 2020 also includes €7 million in capitalized financial expense in respect of intangible assets (€1 million in 2019) and €1 million in other non-cur-
rent assets (€8 million in 2019).
At December 31, 2020, contractual commitments to pur-
chase property, plant and equipment amounted to €6,409
million.
286286
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 18. Infrastructure within the scope of “IFRIC
12 - Service concession arrangements”
Service concession arrangements, which are recognized
serving concessions for electricity distribution in Brazil and
Costa Rica.
The following table summarizes the salient details of those
in accordance with IFRIC 12, regard certain infrastructure
concessions.
Millions of euro
Grantor
Activity
Country
Concession
period
Concession
period
remaining
Renewal
option
Enel Distribuição
Rio de Janeiro
Enel Distribuição
Ceará
Enel Green
Power Mourão
Brazilian
government
Brazilian
government
Brazilian
government
Enel Green Power
Paranapanema
Brazilian
government
Enel Distribuição
Goiás
Brazilian
government
Enel Green
Power Volta
Grande
Enel Distribuição
São Paulo
PH Chucas
Total
Brazilian
government
Brazilian
government
Costa Rican
Electricity
Institute
Electricity
distribution
Electricity
distribution
Electricity
generation
Electricity
generation
Electricity
distribution
Electricity
generation
Electricity
distribution
Hydroelectric
Brazil
1997-2026
6 years
Yes
Brazil
1998-2028
8 years
Yes
Brazil
2016-2046
26 years
Brazil
2016-2046
26 years
Brazil
2015-2045
25 years
Brazil
2017-2047
27 years
Brazil
1998-2028
8 years
No
No
No
No
No
plant Costa Rica
2002-2022
11 years
No
Amount
recognized
among
contract
assets at
Dec. 31,
2020
Amount
recognized
among
financial
assets at
Dec. 31,
2020
Amount
recognized
among
intangible
assets at
Dec. 31,
2020
52
40
-
-
165
-
40
-
297
678
475
5
21
35
226
823
442
412
-
-
461
-
621
46
2,309
172
2,108
The assets at the end of the concessions classified under
information, see note 48 “Assets and liabilities measured
financial assets have been measured at fair value. For more
at fair value”.
287
Integrated Annual Report 2020 Total
2,001
560
(90)
(280)
(16)
2,175
1,964
441
(208)
(129)
2,068
1,821
247
2020
280
66
42
1
17
406
19. Leases
The table below shows the changes in right-of-use assets
in 2020.
Millions of euro
Leased land
Leased buildings
Leased plant
Other leased assets
Total at December 31, 2019
Increases
Exchange differences
Depreciation
Other changes
Total at December 31, 2020
545
241
(40)
(30)
(9)
707
601
109
(16)
(119)
(24)
551
488
16
(21)
(33)
29
479
367
194
(13)
(98)
(12)
438
Lease liabilities and changes during the year are shown in
the table below.
Millions of euro
Total at December 31, 2019
Increases
Payments
Other changes
Total at December 31, 2020
of which medium to long term
of which short term
Note that in 2020, despite the effects of the pandemic, no
changes or renegotiations were made to leases.
Millions of euro
Depreciation of right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases (included in cost for services and other materials)
Expense relating to leases of low-value assets (included in cost for services and other materials)
Variable lease payments (included in cost for services and other materials)
Total
288288
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 20. Investment property - €103 million
Investment property at December 31, 2020 came to €103
million, a decrease of €9 million year on year.
Millions of euro
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2019
Investments
Exchange differences
Depreciation
Impairment losses
Other changes
Total changes
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2020
157
45
112
1
(3)
(2)
(7)
2
(9)
159
56
103
The Group’s investment property consists of properties in
ses recognized on a number of assets of Endesa and the
Italy, Spain, Brazil and Chile, which are free of restrictions
depreciation of the Brazilian real.
on the sale of the investment property or the remittance
of income and proceeds of disposal. In addition, the Group
For more information on the valuation of investment pro-
has no contractual obligations to purchase, construct or
perty, see notes 48 “Assets and liabilities measured at fair
develop investment property or for repairs, maintenance or
value”, and 48.2 “Assets not measured at fair value in the
enhancements.
statement of financial position”.
The change for the year was mainly due to impairment los-
289
Integrated Annual Report 2020 21. Intangible assets - €17,668 million
A breakdown of and changes in intangible assets for 2020
are shown below.
Industrial
patents &
intellectual
property
rights
Concessions,
licenses,
trademarks
and similar
rights
Development
expenditure
Service
concession
arrangements
Other
Leasehold
improvements
Assets under
development
and
advances
Contract
costs
Total
46
23
23
4
4
(2)
(2)
-
(2)
-
-
(4)
-
(2)
44
23
21
2,767
15,083
6,987
3,747
10
1,060
1,275
30,975
2,185
1,837
4,370
2,802
582
75
176
(18)
-
-
(257)
-
-
9
-
13,246
2,617
29
10
-
-
945
71
311
(1,193)
(768)
(26)
-
(5)
(168)
-
2
(499)
-
(15)
59
-
(300)
(307)
-
-
574
(27)
-
469
(2)
-
-
(15)
(1,826)
(509)
550
2,985
12,988
5,452
4,821
2,418
1,568
3,344
3,326
567
11,420
2,108
1,495
3
7
-
-
-
-
-
(1)
-
-
-
-
(1)
10
4
6
-
666
11,886
1,060
609
19,089
731
308
1,218
(501)
-
-
(52)
(1)
(2,060)
59
(7)
-
(6)
-
106
(53)
277
-
-
116
(27)
(202)
(1,237)
-
-
-
-
(33)
2
655
(55)
105
(1,421)
1,337
1,581
29,218
-
867
11,550
1,337
714
17,668
Millions of euro
Cost net of
accumulated
impairment losses
Accumulated
amortization
Balance at Dec. 31,
2019
Capital expenditure
Assets entering
service
Exchange
differences
Change in the
consolidation scope
Disposals
Amortization
Impairment losses
Impairment gains
Other changes
Reclassifications
from/to assets held
for sale
Total changes
Cost net of
accumulated
impairment losses
Accumulated
amortization
Balance at Dec. 31,
2020
In 2020, the Enel Group renewed and strengthened its
of an application bus into which peripheral interfaces de-
commitment to the enhancement and development of its
veloped to meet different operational needs are integra-
intellectual assets as a source of competitive advantage for
ted, with the goal of handling managing millions of finan-
the Group, which is increasingly directed at achieving its
cial transactions per day. Other monitoring and control
strategic objectives for decarbonization, electrification and
modules enable users to carry out supervisory, audit and
the creation of platforms.
performance analysis activities;
In this regard, the increase in investment in intangible as-
› investments in networks for the management of smart
sets is particularly evident, with special regard to IT and
meters, remote grid control and communication software;
digital applications, whether legally protected or not. The
› investments at Enel X in demand response systems;
investments focused on all the Group’s Global Business
› investments in power generation for predictive mainte-
Lines and mainly concerned internally developed software
nance systems;
(i.e. internal customization of software purchased exter-
› additional customizations of Group ERP (Enterprise Re-
nally). Among these, we highlight:
source Planning).
› the technological infrastructure of Paytipper, consisting
The patent activity of the Group is also proving to be pro-
290290
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements lific, involving as many as 837 applications for patents in
accordance with the Open Innovability® model. For more
137 technological families. Of these, 692 have been gran-
information, please see the “Innovation and digitalization”
ted and 145 are pending.
section of the “Performance & Metrics” chapter of the Re-
The Group also intends to continue to support and en-
port on Operations.
courage the development of its innovation model through
specific projects for internal dissemination by the Intel-
The following table reports service concession arrange-
lectual Property unit and through the creation of speci-
ments that do not fall within the scope of IFRIC 12 and had
fic tools to identify, ascertain, protect and preserve on an
a balance as at December 31, 2020.
iterative basis all information of value generated in Enel in
Millions of euro
Endesa
Distribución
Eléctrica
Codensa
Enel Distribución
Chile (formerly
Chilectra)
Enel Distribución
Perú (formerly
Empresa de
Distribución
Eléctrica de Lima
Norte)
E-Distribuţie
Muntenia
Grantor
Activity
Country
Concession
period
Concession
period
remaining
Renewal
option
at Dec. 31,
2020
Initial fair
value
Electricity
distribution
-
Republic of
Colombia
Electricity
distribution
Republic of
Chile
Electricity
distribution
Spain
Indefinite
Indefinite
Colombia
Indefinite
Indefinite
Chile
Indefinite
Indefinite
Republic of
Peru
Electricity
distribution
Romanian
Ministry for
the Economy
Electricity
distribution
Peru
Indefinite
Indefinite
-
-
-
-
5,678
5,673
1,291
1,839
1,388
1,667
535
548
Romania
2005-2054
33 years
Yes
125
191
291
Integrated Annual Report 2020 The item includes assets with an indefinite useful life in the
The change in the consolidation scope for 2020 mainly
amount of €8,892 million (€9,218 million at December 31,
reflects the acquisition of a number of companies in Spain
2019), essentially accounted for by concessions for distri-
and the PPA of Paytipper SpA and to a number of re-
bution activities in Spain (€5,678 million), Colombia (€1,291
newables companies in Italy.
million), Chile (€1,388 million), and Peru (€535 million), for
which there is no statutory or currently predictable expi-
Impairment losses amounted to €33 million in 2020. For
ration date. On the basis of the forecasts developed, cash
more information, see note 10.e.
flows for each CGU, with which the various concessions are
associated, are sufficient to recover the carrying amount.
“Other changes” report the design costs connected with
The change during the year is essentially attributable to
the acquisition of a number of Brazilian vehicle companies.
changes in exchange rates. For more information on servi-
ce concession arrangements, see note 18.
22. Goodwill - €13,779 million
Change
in consol.
scope
Exchange
differences
Impairment
losses
Offsetting
cost with
accum.
impairment
losses
Other
changes
at Dec. 31, 2020
-
(4)
-
-
-
(138)
-
(1)
-
(28)
-
-
-
-
-
(7)
(178)
-
-
(253)
-
-
-
-
(18)
-
-
-
(3)
-
-
-
-
(274)
Cumulative
impairment
Net
carrying
amount
(2,392)
8,785
-
1,205
(253)
-
-
-
-
(18)
-
-
-
(3)
-
-
-
(13)
22
564
530
1,273
25
-
70
184
84
43
-
580
20
394
Cost
11,177
1,205
275
564
530
1,273
25
18
70
-
-
(1)
-
-
-
-
-
-
(123)
184
84
39
-
1
-
-
84
46
-
580
20
407
- 16,458
(2,679)
13,779
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Millions of
euro
Iberia
Chile
Argentina
Peru
Colombia
Brazil
Central
America
Mexico
Enel Green
Power North
America
Enel X North
America
Enel X Asia
Pacific
Enel X Rest of
Europe (1)
Enel X Italy
Cost
11,177
1,209
276
561
530
1,411
23
19
70
335
-
3
19
Market Italy (2)
579
Enel Green
Power Italy
Romania
20
414
at Dec. 31, 2019
Cumulative
impairment
Net
carrying
amount
(2,392)
8,785
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13)
1,209
276
561
530
1,411
23
19
70
335
-
3
19
579
20
401
-
-
-
3
-
-
2
-
-
-
-
4
(19)
-
-
-
Total
16,646
(2,405)
14,241
(10)
(1)
(2)
Includes Tynemouth and Viva Labs.
Includes Enel Energia.
292292
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements GOODWILL MATRIX AT DECEMBER 31, 2020
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other
Total
Millions of euro
Enel Green Power SpA
Italy
Market Italy (1)
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Central America
Romania
Enel Green Power North
America
Enel X North America
Enel X Asia Pacific
Enel X Rest of Europe (2)
-
-
-
-
-
-
-
43
-
-
-
-
-
-
20
-
-
-
1,190
5,788
-
580
1,807
3
397
992
307
201
25
-
70
-
-
-
19
876
213
223
320
-
336
-
-
-
-
-
-
-
-
-
-
58
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
184
84
43
311
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
580
8,785
22
1,273
1,205
530
564
25
394
70
184
84
43
13,779
Total
43
3,205
7,775
2,445
(1)
(2)
Includes Enel Energia.
Includes Viva Labs.
GOODWILL MATRIX AT DECEMBER 31, 2019
Millions of euro
Enel Green Power SpA
Italy
Market Italy (1)
Enel X Italia
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Central America
Romania
Enel Green Power North
America
Mexico
Enel X North America
Enel X Rest of Europe (2)
Total
(1)
(2)
Includes Enel Energia.
Includes Tynemout.
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other
Total
-
-
-
-
-
-
-
-
43
-
-
-
-
-
3
46
20
-
-
1,190
40
397
996
307
198
23
-
70
19
-
-
-
-
-
5,788
236
1,014
213
223
320
-
342
-
-
-
-
-
579
-
1,807
-
-
-
-
-
-
59
-
-
-
-
3,260
8,136
2,445
-
-
19
-
-
-
-
-
-
-
-
-
-
335
-
354
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
579
19
8,785
276
1,411
1,209
530
561
23
401
70
19
335
3
14,241
293
Integrated Annual Report 2020 The decrease of €462 million in goodwill is mainly attri-
as risk-free rates, betas and market-risk premiums.
butable to impairment losses of €274 million, mainly in
Cash flows were determined on the basis of the best in-
Argentina (€253 million) and Mexico (€18 million) following
formation available at the time of the estimate, taking ac-
impairment testing, as well as €3 million on the goodwill
count of the specific risks of each CGU, and drawn:
recorded in respect of Tynemouth.
› for the explicit period, from the Business Plan approved
by the Board of Directors of the Parent on November 23,
The decrease attributable to the change in the consoli-
2020, containing forecasts for volumes, revenue, opera-
dation scope is exclusively due to the finalization of the
ting costs, capital expenditure, industrial and commer-
allocation of the purchase price of Paytipper, partly offset
cial organization and developments in the main macro-
by the €4 million recorded for Viva Labs in respect of a
economic variables (inflation, nominal interest rates and
consolidation difference pending allocation through the
exchange rates) and commodity prices. The explicit pe-
PPA process and by the goodwill recognized with the ac-
riod of cash flows considered in impairment testing was
quisition of new companies (Los Pinos, Enel Solar).
three years;
› for subsequent years, from assumptions concerning
“Exchange differences” are mainly due to adverse exchan-
long-term developments in the main variables that de-
ge rate developments in Brazil, the United States, Roma-
termine cash flows, the average residual useful life of as-
nia, Chile and Mexico.
sets or the duration of the concessions.
“Other changes” are attributable to the reallocation of the
More specifically, the terminal value is calculated based on
goodwill associated with a number of CGUs in order to
the specific characteristics of the businesses related to
reflect the effects of the corporate reorganizations con-
the various CGUs subject to impairment testing:
cluded by the Group in 2020, with particular reference to:
› perpetuity, for the businesses of large-hydro (LH) power
› the separation of the Mexican renewables business from
generation and of distribution, in which the licenses and
the Central America segment, which was merged as
public concessions are of a long-term nature and are
part of the Astrid operation following the organizational
easily renewable; as well as for the Enel X businesses, as
changes implemented in 2020;
they feature the development of specific know-how that
› the definition of the Enel X Rest of Europe and Enel X Asia
is sustainable over the long term;
Pacific CGUs to complete the process of reorganizing
› annuity, for CGUs that are predominantly characterized
the assets (essentially related to intellectual property) of
by retail business, for which the residual life is, therefo-
Enel X North America.
re, essentially correlated with the average duration of
the customer relationships; as well as for businesses of
The criteria used to identify the cash generating units
conventional thermal power generation (G&T). An annu-
(CGUs) for impairment testing purposes were essentially
ity was also used for the renewable energy (Enel Green
based – in line with management’s strategic and opera-
Power) businesses to take account of: (i) the value resul-
tional vision – on the specific characteristics of their busi-
ting from the remaining useful lives of the plants; and (ii)
ness, on the operational rules and regulations of the mar-
the residual value, in the event of plant decommissioning,
kets in which Enel operates, on the corporate organization,
associated with licensing rights, the competitiveness of
and on the level of reporting monitored by management.
the production facilities (in terms of natural resources),
and network interconnectivity.
The reallocation of goodwill among the new CGUs men-
tioned above was carried out specifically or on the basis
The nominal growth rate (g-rate) is equal to the long-term
of the “relative value” of each CGU in accordance with the
rate of growth in electricity and/or inflation (depending on
applicable accounting standard.
the country and business involved) and in any case no hi-
The recoverable amount of the goodwill recognized was
gher than the average long-term growth rate of the refe-
estimated by calculating the value in use of the CGUs using
rence market.
discounted cash flow models, which involve estimating
The Group has also taken account of the long-term im-
expected future cash flows and applying an appropriate
pact of climate change, in particular by considering in the
discount rate, selected on the basis of market inputs such
estimation of the terminal value a long-term growth rate
294294
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements in line with the change in electricity demand in 2030-2050
tion of platform models, making the most of technological
based on the specific characteristics of the businesses in-
and digital evolution, which will foster the electrification of
volved.
energy consumption, as well as the development of new
services for end users.
The Group therefore confirmed its strategic direction ba-
In 2020, Enel’s decarbonization roadmap was updated to
sed on the trends associated with the energy transition.
capture the acceleration in the spread of renewables and
The use of capital has been focused on decarbonization
the reduction in thermal generation capacity envisaged in
through the development of generation assets that use
the new 2021-2023 Strategic Plan and in the 2030 ambi-
renewable sources, on the enabling infrastructures linked
tions presented on the 2020 Capital Markets Day, setting
to the development of networks and on the implementa-
the following objectives in line with the Paris Agreement:
TIME HORIZON
Short term
Medium term
Long term
GREENHOUSE GAS (GHG) REDUCTION TARGET
2023
2030
› Direct emissions of Scope 1 greenhouse gases to 148 gCO2eq/kWh (-32%
compared with 2020)
› Direct emissions of Scope 1 greenhouse gases to 82 gCO2eq/kWh (-80% compared
with 2017, consistent with the 1.5 °C path as certified by the SBTi)
› 16% reduction in indirect Scope 3 emissions associate with gas consumption by
end users compared with 2017
2050 › Full decarbonization of energy mix
In addition, the scenarios used to determine cash flows
drivers of the amounts, in particular WACC, the long-term
took account of the impact of COVID-19.
growth rate and margins, the outcomes of which fully sup-
The value in use calculated as described above was found
to be greater than the amount recognized on the state-
The table below reports the composition of the main go-
ment of financial position.
odwill amounts by CGU, along with the discount rates ap-
In order to verify the robustness of the value in use of the
plied and the time horizon over which the expected cash
CGUs, sensitivity analyses were conducted for the main
flows have been discounted.
ported that amount.
295
Integrated Annual Report 2020 Millions of euro
Amount of goodwill
Growth rate (1)
Pre-tax WACC
discount rate (2)
Explicit period
of cash flows
Terminal value (3)
Amount of goodwill
Growth rate (1)
Pre-tax WACC
discount rate (2)
Explicit period
of cash flows
Terminal value (3)
Iberia
Chile
Argentina
Peru
Colombia
Brazil
Central America
Mexico
Enel Green Power North
America
Enel X North America
Enel X Asia Pacific
Enel X Rest of Europe
Market Italy
Enel Green Power Italy
Romania
CGUs with no
recognized goodwill
but that underwent
impairment testing given
the presence of the
indicators provided for in
IAS 36 (4)
Australia
8,785
1,205
275
564
530
1,273
25
18
70
184
84
39
580
20
394
at Dec. 31, 2020
1.65%
1.97%
4.06%
6.95%
11.79%
41.61%
2.30%
3.04%
3.25%
1.97%
1.43%
1.97%
1.97%
2.02%
2.02%
1.30%
1.38%
2.35%
6.73%
8.54%
9.35%
8.15%
8.83%
5.49%
8.25%
9.07%
8.70%
9.98%
5.44%
7.98%
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
Perpetuity/24 years
EGP/11 years G&T
Perpetuity/25 years
EGP/7 years G&T
Perpetuity/1 year
G&T/5 years LH
Perpetuity/24 years
EGP/10 years G&T
Perpetuity/28 years
EGP/17 years G&T
Perpetuity/26 years
EGP/8 years G&T
22 years
25 years
25 years
Perpetuity
Perpetuity
Perpetuity
15 years
3 years
Perpetuity/24 years
3 years
Perpetuity/26 years
8,785
1,209
276
561
530
1,411
42
n.a.
70
335
n.a.
n.a.
579
20
401
at Dec. 31, 2019
4.59%
7.41%
21.84%
7.46%
9.01%
10.64%
9.68%
n.a.
6.58%
10.89%
n.a.
n.a.
10.23%
6.15%
7.27%
1.80%
2.07%
6.36%
2.39%
2.97%
3.61%
2.01%
n.a.
2.01%
2.01%
n.a.
n.a.
0.48%
1.03%
2.00%
5 years
5 years
5 years
5 years
5 years
5 years
5 years
n.a.
5 years
5 years
n.a.
n.a.
5 years
5 years
5 years
Perpetuity/26 years
EGP/9 years G&T
Perpetuity/25 years
EGP/9 years G&T
Perpetuity/1 year
G&T/4 years LH
Perpetuity/23 years
EGP/9 years G&T
Perpetuity/27 years
EGP/16 years G&T
Perpetuity/26 years
EGP/7 years G&T
22 years
n.a.
25 years
Perpetuity
n.a.
n.a.
15 years
Perpetuity/25 years
Perpetuity/18 years
-
1.35%
4.42%
3 years
26 years
n.a.
n.a.
n.a.
n.a.
n.a.
(1) Perpetual growth rate for cash flows after the explicit forecast period.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
calculated with post-tax cash flows discounted with the post-tax WACC.
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column (G&T = Generation
& Trading, EGP = Enel Green Power, LH = Large Hydro).
(4) With regard to Australia it became necessary to perform the test following the deterioration in local market conditions.
296296
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Iberia
Chile
Argentina
Peru
Colombia
Brazil
Mexico
America
Central America
Enel Green Power North
Enel X North America
Enel X Asia Pacific
Enel X Rest of Europe
Market Italy
Enel Green Power Italy
Romania
CGUs with no
recognized goodwill
but that underwent
impairment testing given
the presence of the
indicators provided for in
IAS 36 (4)
Australia
Millions of euro
Amount of goodwill
Growth rate (1)
Pre-tax WACC
discount rate (2)
Explicit period
of cash flows
Terminal value (3)
Amount of goodwill
Growth rate (1)
Pre-tax WACC
discount rate (2)
Explicit period
of cash flows
Terminal value (3)
at Dec. 31, 2020
at Dec. 31, 2019
11.79%
41.61%
3 years
8,785
1,205
275
564
530
1,273
25
18
70
184
84
39
580
20
394
1.65%
1.97%
2.30%
3.04%
3.25%
1.97%
1.43%
1.97%
1.97%
2.02%
2.02%
1.30%
1.38%
2.35%
4.06%
6.95%
6.73%
8.54%
9.35%
8.15%
8.83%
5.49%
8.25%
9.07%
8.70%
9.98%
5.44%
7.98%
Perpetuity/24 years
3 years
EGP/11 years G&T
Perpetuity/25 years
3 years
EGP/7 years G&T
Perpetuity/1 year
G&T/5 years LH
Perpetuity/24 years
3 years
EGP/10 years G&T
Perpetuity/28 years
3 years
EGP/17 years G&T
Perpetuity/26 years
EGP/8 years G&T
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
22 years
25 years
25 years
Perpetuity
Perpetuity
Perpetuity
15 years
3 years
Perpetuity/24 years
3 years
Perpetuity/26 years
8,785
1,209
276
561
530
1,411
42
n.a.
70
335
n.a.
n.a.
579
20
401
1.80%
2.07%
6.36%
2.39%
2.97%
3.61%
2.01%
n.a.
2.01%
2.01%
n.a.
n.a.
0.48%
1.03%
2.00%
4.59%
7.41%
21.84%
7.46%
9.01%
10.64%
9.68%
n.a.
6.58%
10.89%
n.a.
n.a.
10.23%
6.15%
7.27%
5 years
5 years
5 years
5 years
5 years
5 years
5 years
n.a.
5 years
5 years
n.a.
n.a.
5 years
5 years
5 years
Perpetuity/26 years
EGP/9 years G&T
Perpetuity/25 years
EGP/9 years G&T
Perpetuity/1 year
G&T/4 years LH
Perpetuity/23 years
EGP/9 years G&T
Perpetuity/27 years
EGP/16 years G&T
Perpetuity/26 years
EGP/7 years G&T
22 years
n.a.
25 years
Perpetuity
n.a.
n.a.
15 years
Perpetuity/25 years
Perpetuity/18 years
-
1.35%
4.42%
3 years
26 years
n.a.
n.a.
n.a.
n.a.
n.a.
(1) Perpetual growth rate for cash flows after the explicit forecast period.
calculated with post-tax cash flows discounted with the post-tax WACC.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column (G&T = Generation
& Trading, EGP = Enel Green Power, LH = Large Hydro).
(4) With regard to Australia it became necessary to perform the test following the deterioration in local market conditions.
297
Integrated Annual Report 2020 At December 31, 2020 the impairment tests performed on
and liabilities by type of timing difference and calculated
the CGUs to which goodwill was allocated revealed an im-
based on the tax rates established by applicable regula-
pairment loss of €253 million on the Argentina CGU and
tions, as well as the amount of deferred tax assets offset-
€308 million on the EGP Mexico CGU. With reference to the
table, where permitted, with deferred tax liabilities.
CGUs with no goodwill recognized, an impairment loss of
€23 million was found for the Australia CGU.
23. Deferred tax assets and liabilities -
€8,578 million and €7,797 million
The following table details changes in deferred tax assets
Increase/
(Decrease)
taken to
profit or loss
Increase/
(Decrease)
taken to
equity
Change in the
consolidation
scope
Exchange
differences
Other
changes
Reclassifications
of assets held
for sale
at Dec. 31,
2020
-
-
-
(17)
-
-
(17)
2,123
1,725
508
561
898
2,763
8,578
15
(34)
29
(162)
(113)
(5)
(145)
(88)
(547)
(41)
49
8
5
(79)
(29)
-
-
-
-
-
15
24
-
-
24
(459)
(19)
(16)
5,442
(18)
(149)
(626)
52
(9)
24
-
-
(16)
470
1,885
7,797
4,637
3,078
778
Millions of euro
Deferred tax assets:
- differences in the
carrying amount
of intangible assets,
property, plant and
equipment
- accruals to provisions
for risks and charges
and impairment
losses with deferred
deductibility
- tax loss carried forward
- measurement of
financial instruments
- employee benefits
- other items
Total
Deferred tax liabilities:
- differences on non-
current and financial
assets
- measurement of
financial instruments
- other items
Total
at Dec. 31,
2019
2,372
(259)
1,702
502
786
1,086
2,664
9,112
226
70
(22)
(211)
265
69
-
-
-
(189)
163
1
(25)
6,093
(181)
-
481
1,740
8,314
55
306
180
(100)
(3)
(103)
Non-offsettable deferred tax assets
Non-offsettable deferred tax liabilities
Excess net deferred tax liabilities after
any offsetting
298298
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Deferred tax assets recognized at December 31, 2020, as
prior tax losses in the amount of €769 million because, on
the generation of sufficient future taxable income to reco-
the basis of current estimates of future taxable income, it is
very such assets is considered highly likely, totaled €8,578
not highly likely that such assets will be recovered.
million (€9,112 million at December 31, 2019).
Deferred tax assets during the year decreased by €534 mil-
Deferred tax liabilities amounted to €7,797 million at De-
lion, essentially due to unfavorable exchange rate develop-
cember 31, 2020 (€8,314 million at December 31, 2019).
ments in Latin America, reversals of deferred tax assets on
They essentially include the determination of the tax effects
differences in the carrying amount of non-current assets,
of the adjustments to assets acquired as part of the final al-
mainly in Italy and Spain, a decrease in deferred tax assets
location of the cost of acquisitions made in the various ye-
linked to developments in the fair value of cash flow hedge
ars and the deferred taxation in respect of the differences
derivatives and the recognition of the tax effects relating
between depreciation charged for tax purposes, including
to the reversal of the electricity discount provision in Spain.
accelerated depreciation, and depreciation based on the
These effects were partially offset by the deferred tax as-
estimated useful lives of assets.
sets recognized on the increase in provisions for early reti-
Deferred tax liabilities decreased by a total of €517 million
rement incentives in Italy and Spain.
due, in particular, to adverse exchange rate developments
in Latin America and reversals associated with write-downs
It should also be noted that deferred tax assets (in the
of a number of coal-fired plants in Italy, Spain and Chile.
amount of €205 million) were not recorded in relation to
299
Integrated Annual Report 2020 24. Equity-accounted investments -
€861 million
Investments in joint ventures and associated companies
accounted for using the equity method are as follows.
Impact on
profit or
loss
% held
Change in
consolidation
scope Dividends
Reclassifications
from/to assets
held for sale
Other
changes
Millions of euro
Joint ventures
at Dec. 31,
2019
Slovak Power Holding
504
50.0%
(385)
EGPNA Renewable
Energy Partners
OpEn Fiber
Zacapa Topco Sàrl
Project Kino
companies
Tejo Energia Produção
e Distribuição de
Energia Eléctrica
Rocky Caney Holding
Drift Sand Wind
Project
Front Maritím del
Besòs
Enel Green Power
Bungala
Rusenergosbyt
Energie Electrique de
Tahaddart
Transmisora Eléctrica
de Quillota
PowerCrop
Nuclenor
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
Cogenio Srl
Other
Total
137
384
130
20.0%
50.0%
20.6%
8
2
(1)
60
20.0%
(17)
43.8%
20.0%
50.0%
61.4%
50.0%
49.5%
32.0%
50.0%
50.0%
50.0%
42.7%
45.0%
33.5%
37.5%
20.0%
58
46
36
37
-
40
26
7
-
-
61
30
11
9
11
95
1,682
(3)
5
3
(4)
(3)
45
1
1
-
25
(4)
(2)
5
-
1
24
(299)
-
(9)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
(5)
-
-
-
-
-
(9)
-
-
-
-
(43)
(2)
-
-
-
-
-
(3)
(1)
(1)
(14)
(73)
-
-
(489)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(489)
(15)
(21)
103
(14)
(3)
-
(6)
(4)
-
34
4
(3)
1
2
(25)
3
-
(1)
-
1
(11)
45
% held
at Dec. 31,
2020
104
50.0%
115
-
115
20.0%
50.0%
20.6%
40
20.0%
43.8%
20.0%
50.0%
61.4%
51.0%
49.5%
32.0%
50.0%
50.0%
50.0%
42.7%
45.0%
33.5%
37.5%
20.0%
46
45
35
33
31
46
22
9
2
-
60
28
12
8
12
98
861
300300
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The impact on profit or loss includes the profit or loss re-
for the income recognized in September 2020 following
cognized by the companies in proportion to the share held
the successful resolution of a dispute.
in these companies by the Enel Group and mainly concerns
the impairment loss of the Slovak Power Holding invest-
The decrease associated with changes in the consolidation
ment, which takes account of the general term agree-
scope mainly refer to the sale of a number North American
ment signed on December 22, 2020 between Enel Produ-
companies, offset in part by the increase recorded in Spain
zione and EPH modifying certain terms and conditions of
due to the reduction in the stake held by Endesa Energía
the contract signed on December 18, 2015 (as previously
SA in Endesa Soluciones SLU, which had previously been
amended in 2018) concerning the sale of Enel Produzio-
consolidated on a line-by-line basis.
ne’s interest in Slovenské elektrárne. This adjustment, cal-
culated on the basis of the price formula, takes account of
Reclassification to assets held for sale refers exclusively to
the different scenarios that could occur depending on the
the investment in OpEn Fiber following receipt of a binding
different opportunities of the parties by virtue of the provi-
acquisition offer and the occurrence of additional condi-
sions of the general term agreement. The value associated
tions in accordance with the provisions of IFRS 5.
with each of the different scenarios was weighted on the
basis of the probability of occurrence assigned to each.
“Other changes” mainly include the pro-rated changes in
Based on these assessments, at December 31, 2020 the
the OCI reserves or other changes recognized directly in
consideration is estimated at €208 million. Accordingly, a
equity. In particular, the €103 million in respect of OpEn
write-down of 433 million on the residual investment was
Fiber comprise €113 million for capital increases, partially
recognized and the financial receivable resulting from the
offset by fair value gains/(losses) on cash flow hedge deri-
sale of the first stake, equal to €354 million, was dereco-
vatives. The Australian Bungala companies also reflect the
gnized, with the simultaneous recognition of a provision for
fair value gain (€32 million) on the PPA contracts signed
risks and charges of €47 million.
with customers following the decline in the prices on the
Companies making the largest positive contribution inclu-
de Rusenergosbyt (€45 million) under the contract for the
The following tables provide a summary of financial infor-
supply of electricity to a leading railway transport company
mation for each joint venture and associate of the Group
in Russia and Nuclenor (€25 million), a Spanish company,
not classified as held for sale in accordance with IFRS 5.
Australian forward market.
301
Integrated Annual Report 2020 Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019
Joint ventures
Slovak Power
Holding (1)
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia
Produção e
Distribuição de
Energia Eléctrica
Energie Electrique
de Tahaddart
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
10,813
1,253
2
10,206
1,376
3
82
62
202
60
67
21
146
77
198
62
19
4
676
117
120
128
18
25
58
32
3
700
99
144
132
20
13
64
66
23
11,489
1,370
122
10,906
1,475
147
6,922
729
-
6,461
753
-
210
80
227
118
99
24
278
97
211
126
85
27
802
90
106
33
6
-
33
45
2
754
73
131
85
8
-
24
20
2
7,724
819
106
54
11
17
56
63
4
7,215
826
131
110
14
21
59
53
4
3,765
551
16
156
69
210
62
36
20
3,691
649
16
168
83
190
67
32
23
21
5
17
23
18
2
25
6
21
35
33
2
(1) The figures at December 31, 2019 for Slovak Power Holding have been updated from those published in the 2019 Annual Report to align them with the
financial statements approved on May 29, 2020.
Millions of euro
Total revenue
Pre-tax profit/(loss)
Profit/(Loss) from continuing operations
2020
2019
2020
2019
2020
2019
Joint ventures
Slovak Power
Holding (1)
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia
Produção e
Distribuição de
Energia Eléctrica
Energie Electrique
de Tahaddart
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
2,954
221
2,198
114
33
122
78
25
8
2,601
208
2,548
145
37
111
104
18
12
163
7
112
17
5
(14)
(5)
21
-
125
(22)
111
21
9
9
2
11
2
120
(3)
90
8
3
(16)
(5)
14
-
96
(32)
89
14
6
6
2
11
1
(1) The figures at December 31, 2019 for Slovak Power Holding have been updated from those published in the 2019 Annual Report to align them with the
financial statements approved on May 29, 2020.
302302
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019
802
90
106
33
6
-
33
45
2
754
73
131
85
8
-
24
20
2
7,724
819
106
54
11
17
56
63
4
7,215
826
131
110
14
21
59
53
4
3,765
551
16
156
69
210
62
36
20
3,691
649
16
168
83
190
67
32
23
10,813
1,253
2
10,206
1,376
3
11,489
1,370
122
10,906
1,475
147
6,922
729
-
6,461
753
-
21
5
17
23
18
2
25
6
21
35
33
2
Joint ventures
Slovak Power
Holding (1)
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia
Produção e
Distribuição de
Energia Eléctrica
Energie Electrique
de Tahaddart
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
Joint ventures
Slovak Power
Holding (1)
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia
Produção e
Distribuição de
Energia Eléctrica
Energie Electrique
de Tahaddart
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
(1) The figures at December 31, 2019 for Slovak Power Holding have been updated from those published in the 2019 Annual Report to align them with the
financial statements approved on May 29, 2020.
Millions of euro
Total revenue
Pre-tax profit/(loss)
Profit/(Loss) from continuing operations
2020
2019
2020
2019
2020
2019
676
117
120
128
18
25
58
32
3
163
7
112
17
5
(14)
(5)
21
-
700
99
144
132
20
13
64
66
23
125
(22)
111
21
9
9
2
11
2
210
80
227
118
99
24
120
(3)
90
8
3
(16)
(5)
14
-
278
97
211
126
85
27
96
(32)
89
14
6
6
2
11
1
82
62
202
60
67
21
2,954
221
2,198
114
33
122
78
25
8
146
77
198
62
19
4
2,601
208
2,548
145
37
111
104
18
12
(1) The figures at December 31, 2019 for Slovak Power Holding have been updated from those published in the 2019 Annual Report to align them with the
financial statements approved on May 29, 2020.
303
Integrated Annual Report 2020 In addition, the financial disclosure requirements of IFRS 12
for subsidiaries with significant non-controlling interests
are reported below.
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
owners of the Parent
Non-controlling interests
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Equity attributable to
Subsidiaries
Enel Américas
Group
Enel Chile Group
Endesa Group
21,337
9,295
41,819
26,278
9,711
41,722
4,582
170
1,386
5,570
367
1,087
25,919
9,465
43,205
31,848
10,078
42,809
8,827
3,027
12,869
11,230
3,332
12,440
5,495
1,066
7,101
5,668
1,049
6,943
14,322
4,093
19,970
16,898
4,381
19,383
11,597
5,372
23,235
14,950
5,697
23,426
6,643
3,326
17,366
8,231
3,363
17,466
4,954
2,046
5,869
6,719
2,334
5,960
Millions of euro
Total revenue
Pre-tax profit
Profit from continuing operations
Subsidiaries
Enel Américas Group
Enel Chile Group
Endesa Group
2020
10,350
2,775
17,065
2019
12,601
3,482
18,468
2020
1,187
(133)
1,965
2019
1,974
469
114
Profit attributable
to owners of the Parent
Profit attributable
to non-controlling interests
2020
738
(40)
1,551
2019
1,844
394
93
2020
274
(25)
1,082
2019
2020
784
230
57
464
(15)
469
2019
1,060
164
36
304304
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
Equity attributable to
owners of the Parent
Non-controlling interests
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
at Dec. 31,
2020
2019
2020
2019
2020
2019
2020
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
21,337
9,295
41,819
26,278
9,711
41,722
4,582
170
1,386
5,570
367
1,087
25,919
9,465
43,205
31,848
10,078
42,809
8,827
3,027
12,869
11,230
3,332
12,440
5,495
1,066
7,101
5,668
1,049
6,943
14,322
4,093
19,970
16,898
4,381
19,383
11,597
5,372
23,235
14,950
5,697
23,426
6,643
3,326
17,366
8,231
3,363
17,466
4,954
2,046
5,869
6,719
2,334
5,960
Millions of euro
Total revenue
Pre-tax profit
Profit from continuing operations
Profit attributable
to owners of the Parent
Profit attributable
to non-controlling interests
2020
10,350
2,775
17,065
2019
12,601
3,482
18,468
2020
1,187
(133)
1,965
2019
1,974
469
114
2020
738
(40)
1,551
2019
1,844
394
93
2020
274
(25)
1,082
2019
2020
784
230
57
464
(15)
469
2019
1,060
164
36
Subsidiaries
Enel Américas
Group
Enel Chile Group
Endesa Group
Subsidiaries
Enel Américas Group
Enel Chile Group
Endesa Group
305
Integrated Annual Report 2020
25. Derivatives
Millions of euro
Non-current
Current
Derivative financial assets
Derivative financial liabilities
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
1,236
3,606
1,383
2,407
3,471
3,531
4,065
3,554
For more information on derivatives classified as non-cur-
rent financial assets and liabilities, please see note 47 for
hedging derivatives and trading derivatives.
26. Current/Non-current contract
assets/(liabilities)
Millions of euro
Contract assets
Contract liabilities
Non-current
Current
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
304
6,191
487
6,301
176
1,275
166
1,328
Non-current assets deriving from contracts with custo-
on which are subject to the fulfillment of a performance
mers (contract assets) refer mainly to assets under deve-
obligation.
lopment resulting from public-to-private service conces-
The figure at December 31, 2020 for non-current contract
sion arrangements recognized in accordance with IFRIC 12
liabilities is mainly attributable to distribution in Italy (€3,359
and which have an expiration of beyond 12 months (€297
million), Spain (€2,400 million) and Romania (€425 million)
million). These cases arise when the concession holder has
as a result of the accounting treatment of revenue from
not yet obtained full right to recognize the asset from the
connections of new customers with invoicing in advance of
grantor at the hypothetical conclusion of the concession
the completion of the performance obligation.
arrangement in that there remains a contractual obligation
to ensure that the asset becomes operational. At Decem-
Current contract liabilities include the contractual liabilities
ber 31, 2020, the figure includes investments for the year in
related to revenue from connections to the electricity grid
the amount of €649 million.
expiring within 12 months in the amount of €859 million,
mainly recognized in Italy and Spain, as well as liabilities for
Current contract assets mainly concern construction con-
construction contracts in progress (€387 million).
tracts in progress (€154 million) to be invoiced, payments
27. Other non-current financial assets -
€5,159 million
Millions of euro
Equity investments in other companies measured at
fair value
Financial assets and securities included in net
financial debt (see note 27.1)
Service concession arrangements
Non-current financial prepayments
Total
306306
at Dec. 31, 2020
at Dec. 31, 2019
Change
70
2,745
2,300
44
5,159
72
3,185
2,702
47
6,006
(2)
(440)
(402)
(3)
(847)
-2.8%
-13.8%
-14.9%
-6.4%
-14.1%
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The reduction in “other non-current financial assets” pri-
concession arrangements (in application of IFRIC 12) in
marily reflects:
Brazil.
› a decrease in financial assets included in net financial
debt, as detailed in note 27.1;
The following is a breakdown of equity investments in other
› adverse exchange rate developments, mainly for service
companies measured at fair value.
Millions of euro
Galsi
Empresa Proprietaria de la
Red SA
European Energy Exchange
Athonet Srl
Korea Line Corporation
Hubject GmbH
Termoeléctrica José de San
Martín SA
Termoeléctrica Manuel
Belgrano SA
Other
Total
at Dec. 31, 2020
-
5
13
7
1
10
10
11
13
70
% held
17.6%
11.1%
2.4%
16.0%
0.3%
12.5%
3.3%
3.7%
at Dec. 31, 2019
14
17
8
7
2
10
-
-
14
72
% held
17.6%
11.1%
2.2%
16.0%
0.3%
12.5%
-
-
Change
(14)
(12)
5
-
(1)
-
10
11
(1)
(2)
The change in “equity investments in other companies me-
held by Enel SpA in Empresa Propietaria de la Red. These
asured at fair value” reflects the full impairment loss reco-
effects were offset above all by the new carrying amount
gnized by Enel Produzione on the investment held in Galsi
recognized for Termoeléctrica José de San Martín SA and
and by the impairment loss of €12 million on the investment
Termoeléctrica Manuel Belgrano SA.
27.1 Other non-current financial assets included
in net financial debt - €2,745 million
Millions of euro
Securities at FVOCI
Other financial assets
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
408
2,337
2,745
416
2,769
3,185
(8)
(432)
(440)
-1.9%
-15.6%
-13.8%
Securities measured at FVOCI represent financial instru-
› €93 million in respect of the reclassification, from of
ments in which the Dutch insurance companies invest a
medium- and long-term financial assets to short-term
portion of their liquidity.
financial assets and securities, of the current portion
of the amount due to e-distribuzione from the Energy
The reduction in “other financial assets” is mainly attribu-
and Environmental Services Fund (€56 million) and the
table to:
amount due to the same company related to reimburse-
› €354 million in respect of the impairment loss on the re-
ment of the extraordinary costs incurred by distributors
ceivable due to Enel Produzione from EP Slovakia BV re-
for the early replacement of electromechanical meters
lating to the sale of 50% of its investment in Slovak Power
with electronic devices (€37 million).
Holding BV;
307
Integrated Annual Report 2020 28. Other current financial assets -
€5,113 million
Millions of euro
Current financial assets included in net financial
debt (see note 28.1)
Other
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
4,971
142
5,113
4,158
147
4,305
813
(5)
808
19.6%
-3.4%
18.8%
28.1 Other current financial assets included
in net financial debt - €4,971 million
Millions of euro
Current portion of long-term financial assets
Securities at FVOCI
Financial assets and cash collateral
Other
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
1,428
67
3,223
253
4,971
1,585
61
2,153
359
4,158
(157)
6
1,070
(106)
813
-9.9%
9.8%
49.7%
-29.5%
19.6%
The change in the item is mainly attributable to:
ruling of the judicial authorities in favor of the concession
› €1,070 million in respect of an increase in cash collateral
holders of the public electricity distribution service (€95
paid to counterparties for derivatives transactions;
million);
› €157 million in respect of the reduction in the current portion
– an increase in financial assets for security deposits
of long-term financial assets, which essentially reflects:
(€46 million);
– the decrease in financial assets relating to the deficit of
› €106 million in respect of a decrease in the residual item
the Spanish electricity system (€71 million);
“other”, mainly reflecting the reduction in a number of fi-
– the offsetting in 2020 of financial assets relating to the Bra-
nancial assets in South Africa and Italy and the deprecia-
zilian rate deficit with a number of liabilities for regulatory
tion of currencies in Latin America.
items following the settlement of a court dispute and the
29. Other non-current assets -
€2,494 million
Millions of euro
Amounts due from institutional market operators
Other assets
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
186
2,308
2,494
232
2,469
2,701
(46)
(161)
(207)
-19.8%
-6.5%
-7.7%
Amounts due from institutional market operators decrea-
to be received in respect of green certificates amounting to
sed by €46 million on the previous year, mainly in Spain as a
€73 million (€37 million at December 31, 2019).
result of the remuneration of distribution operations.
The change for the year mainly reflects the tax assets re-
cognized by Enel Distribuição São Paulo and Enel Distribu-
At December 31, 2020 other assets mainly include tax assets
ição Ceará related to the PIS/COFINS dispute in Brazil in the
in the amount of €1,539 million (€1,587 million at December
amount of €211 million, which was more than offset by the
31, 2019), security deposits in the amount of €330 million
depreciation of the Brazilian real.
(€418 million at the end of 2019) and non-monetary grants
308308
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 30. Other current assets - €3,578 million
Millions of euro
Amounts due from institutional market operators
Advances to suppliers
Amounts due from employees
Amounts due from others
Sundry tax assets
Accrued operating income and prepayments
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
1,265
309
30
956
848
170
3,578
732
314
28
1,084
797
160
3,115
533
(5)
2
(128)
51
10
463
72.8%
-1.6%
7.1%
-11.8%
6.4%
6.3%
14.9%
Amounts due from institutional market operators include
The increase of €51 million in sundry tax assets is mainly
amounts due in respect of the Italian system in the amount
attributable to an increase in credits for indirect taxes and
of €890 million (€450 million at December 31, 2019) and
duties.
the Spanish system in the amount of €337 million (€254
Amounts due from others decreased mainly due to a de-
million at December 31, 2019). The increase is essentially
cline in advances paid to third parties, a reduction in recei-
attributable to the increase in amounts due in Italy in re-
vables in respect of pension and insurance institutions and
spect of the Energy and Environmental Services Fund,
a decrease in other sundry amounts.
mainly held by e-distribuzione (€207 million) and Servizio
Elettrico Nazionale (€249 million), primarily connected with
equalization mechanisms.
31. Inventories - €2,401 million
Millions of euro
Raw and ancillary materials, and consumables:
- fuels
- materials, equipment and other inventories
Total
Environmental certificates:
- CO2 emissions allowances
- green certificates
- white certificates
Total
Buildings held for sale
Payments on account
TOTAL
at Dec. 31, 2020
at Dec. 31, 2019
Change
595
1,542
2,137
159
5
7
171
52
41
857
1,493
2,350
96
12
1
109
54
18
(262)
49
(213)
63
(7)
6
62
(2)
23
2,401
2,531
(130)
-30.6%
3.3%
-9.1%
65.6%
-58.3%
-
56.9%
-3.7%
-
-5.1%
Raw and ancillary materials, and consumables consist of
le, as a result of the energy transition process begun by the
materials and equipment used to operate, maintain, and
Group. Other factors include the reduction in inventories in
construct power plants and distribution networks, as well
Russia following the disposal of the Reftinskaya GRES plant
as fuel inventories to cover the Group’s requirements for
generation and trading activities.
The change in the year is mainly attributable to the wri-
in the final Quarter of 2019. These developments were par-
tially offset by an increase in CO2 emissions allowances in
Spain as a result of a decrease in the compliance obligation
te-down of inventories of fuel and materials associated
as a result of the reduction in high-emissions generation.
with plants subject to impairment, primarily in Italy and Chi-
309
Integrated Annual Report 2020 32. Trade receivables - €12,046 million
Millions of euro
Customers:
- electricity sales and transport
- distribution and sale of gas
- other assets
Total trade receivables due from customers
Trade receivables due from associates and joint
ventures
TOTAL
at Dec. 31, 2020
at Dec. 31, 2019
Change
7,986
900
2,945
11,831
215
12,046
8,532
1,284
3,014
12,830
253
13,083
(546)
(384)
(69)
(999)
(38)
(1,037)
-6.4%
-29.9%
-2.3%
-7.8%
-15.0%
-7.9%
Trade receivables due from customers are recognized net of
For more information on trade receivables, see note 44 “Fi-
loss allowances, which totaled €3,287 million at the end of
nancial instruments”.
the year, compared with a balance of €2,980 million at the
end of the previous year. Specifically, the reduction for the
year, totaling €1,037 million, mainly recognized in Italy (€819
million) and Latin America (€176 million), was attributable to
33. Cash and cash equivalents -
€5,906 million
Cash and cash equivalents, detailed in the following table,
the decline in receivables for the sale and transport of electri-
decreased especially for the Parent, due to cash outflows
city and gas, the deterioration in the collection status of
linked to the acquisition of additional equity interests in
certain receivables and an increase in write-downs, all con-
subsidiaries in Latin America and to the depreciation of lo-
nected with the effects of the COVID-19 pandemic, as well as
cal currencies.
the depreciation of the Latin American currencies.
Millions of euro
Bank and postal deposits
Cash and cash equivalents on hand
Other investments of liquidity
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
5,699
42
165
5,906
7,910
87
1,032
9,029
(2,211)
(45)
(867)
(3,123)
-28.0%
-51.7%
-84.0%
-34.6%
310310
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 34. Assets and liabilities included in disposal
groups classified as held for sale - €1,416 mil-
lion and €808 million
Changes in assets held for sale during 2020 can be broken
down as follows.
Millions of euro
Property, plant and equipment
Intangible assets
Deferred tax assets
Equity-accounted
investments
Non-current financial assets
Cash and cash equivalents
Inventories, trade
receivables, and other
current assets
Total
at Dec. 31, 2019
Reclassification from/
to current and non-
current assets
Disposals and
changes in the
consolidation scope
Other changes
at Dec. 31, 2020
14
7
-
80
-
-
-
101
747
56
17
489
11
28
29
1,377
(10)
(7)
-
(79)
-
-
-
(96)
30
2
1
(1)
-
1
1
34
781
58
18
489
11
29
30
1,416
Changes in liabilities included in disposal groups held for
sale in 2020 were as follows.
Millions of euro
Long-term borrowings
Provisions for risks and charges, non-current
portion
Deferred tax liabilities
Non-current financial liabilities
Other non-current liabilities
Other current financial liabilities
Trade payables and other current liabilities
Total
Reclassification
from/to current
and non-current
liabilities
at Dec. 31, 2019
Other changes
at Dec. 31, 2020
-
-
-
-
3
-
-
3
660
2
16
54
-
11
33
776
27
-
1
3
(3)
1
-
29
687
2
17
57
-
12
33
808
Assets and liabilities included in disposal groups held for
Majorana” site at Termini Imerese in the amount of €4 mil-
sale at December 31, 2020 amounted to €1,416 million and
lion, as well as the plant with a carrying amount of €2 mil-
€808 million respectively and mainly comprise a number
lion held by the Panamanian company Llano Sanchez Solar
of renewables companies held for sale in South Africa and
Power One SA.
Bulgaria, which, following decisions by management, meet
the requirements of IFRS 5 for classification within this ag-
During 2020 a number of hydro companies held by Enel
gregate.
North America, which had previously been classified as
At December 31, 2020, the equity-accounted investment
available for sale, were sold, producing a capital gain of
in OpEn Fiber, with a carrying amount of €489 million, was
about €2 million, as was the Rionegro plant in Colombia,
reclassified as held for sale.
which was also classified in that item.
The aggregate also includes the plant held for sale making
Finally, net debt relating to assets and liabilities held for sale
up the Enel Produzione business unit formed of the “Ettore
amounted to €646 million.
311
Integrated Annual Report 2020 35. Equity - €42,357 million
35.1 Equity attributable to owners of the Parent -
€28,325 million
petual hybrid bond in an amount, net of transaction costs,
of €592 million and with the conversion of bonds already
in issue and converted into perpetual hybrid bonds in the
amount, net of transaction costs, of €1,794 million.
Share capital - €10,167 million
Legal reserve - €2,034 million
At December 31, 2020, the fully subscribed and paid-up
The legal reserve is formed of the part of profits that, pur-
share capital of Enel SpA totaled €10,166,679,946, repre-
suant to Article 2430 of the Italian Civil Code, cannot be
sented by the same number of ordinary shares with a par
distributed as dividends.
value of €1.00 each.
The share capital is unchanged compared with the amount
Other reserves - €2,268 million
reported at December 31, 2019.
These include €2,215 million related to the remaining por-
At December 31, 2020, based on the shareholders regi-
tion of the adjustments carried out when Enel was transfor-
ster and the notices submitted to CONSOB and received
med from a public entity to a joint-stock company.
by the Parent pursuant to Article 120 of Legislative Decree
Pursuant to Article 47 of the Consolidated Income Tax Code
58 of February 24, 1998, as well as other available infor-
(Testo Unico Imposte sul Reddito, or “TUIR”), this amount
mation, shareholders with interests of greater than 3% in
does not constitute taxable income when distributed.
the Parent’s share capital were the Ministry for the Eco-
nomy and Finance (with a 23.585% stake), BlackRock Inc.
Translation reserve - €(7,046) million
(with a 5.081% stake held for asset management purposes)
The decrease for the year, of €3,244 million, was mainly
and Capital Research and Management Company (with a
due to the net appreciation of the euro against the foreign
5.029% stake held for asset management purposes).
currencies used by subsidiaries and the change in the con-
solidation scope connected with the purchase of 5.03% of
Treasury share reserve - €(3) million
Enel Américas and 2.89% of Enel Chile.
As at December 31, 2020, treasury shares are represented
by 3,269,152 ordinary shares of Enel SpA with a par value of
Hedging reserve - €(1,917) million
€1.00 each (1,549,152 at December 31, 2019), purchased
This includes the net expense recognized in equity from
through a qualified intermediary for a total amount of €23
the measurement of cash flow hedge derivatives. The cu-
million. The difference between the amount paid and the
mulative tax effect is equal to €305 million.
par value is recognized as a reduction in equity in the share
premium reserve.
Other reserves - €(39) million
Share premium reserve - €7,476 million
Pursuant to Article 2431 of the Italian Civil Code, the share
premium reserve contains, in the case of the issue of sha-
res at a price above par, the difference between the issue
price of the shares and their par value, including those re-
sulting from conversion from bonds. The reserve, which is
a capital reserve, may not be distributed until the legal re-
serve has reached the threshold established under Article
2430 of the Italian Civil Code. The change of €11 million for
the year reflects the purchase of treasury shares suppor-
ting the 2020 LTI Plan.
Reserve for equity instruments - perpetual hybrid bonds
– €2,386 million
This reserve was established with the subscription of a per-
312312
Hedging costs reserve - €(242) million
In application of IFRS 9, these reserves include the fair va-
lue gains and losses on currency basis points and forward
points. The cumulative tax effect is equal to €5 million.
Reserve from measurement of financial instruments at
FVOCI - €(1) million
This includes net unrealized fair value losses on financial
assets.
The cumulative tax effect is equal to a negative €2 million.
Reserve from equity-accounted investments -
€(128) million
The reserve reports the share of comprehensive income to
be recognized directly in equity of equity-accounted inve-
stees. The cumulative tax effect is equal to €26 million.
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Actuarial reserve - €(1,196) million
› the effects of the merger into Enel Américas of Endesa
This reserve includes all actuarial gains and losses, net of
Américas and Chilectra Américas;
tax effects. The change is mainly attributable to the decrea-
› the disposal to third parties of a non-controlling interest
se in net actuarial losses recognized during the year, mainly
without loss of control in Enel Green Power North Ameri-
reflecting changes in the discount rate, and to the reclas-
ca Renewable Energy Partners and a number of compa-
sification following the curtailment of a number of defined
nies in South Africa.
benefit plans following the signing of the 5th Endesa Col-
The reserve did not change in 2020.
lective Bargaining Agreement. The cumulative tax effect is
equal to €329 million.
Reserve from acquisitions of non-controlling interests -
€(1,292) million
Reserve from disposal of equity interests without loss of
This reserve mainly includes the surplus of acquisition pri-
control - €(2,381) million
This item mainly reports:
ces with respect to the carrying amount of the equity ac-
quired following the acquisition from third parties of further
› the gain posted on the public offering of Enel Green
interests in companies already controlled in Latin America
Power shares, net of expenses associated with the di-
and in Italy (Enel Green Power SpA).
sposal and the related taxation;
The change for the year mainly reflects the effects of the
› the sale of non-controlling interests recognized as a re-
increase of 5.03% in the interest held in Enel Américas and
sult of the Enersis (now Enel Américas and Enel Chile) ca-
of 2.89% in that held in Enel Chile, bringing the overall sta-
pital increase;
kes to 65% and 64.93%, respectively.
› the capital loss, net of expenses associated with the di-
sposal and the related taxation, from the public offering
Retained earnings - €18,200 million
of 21.92% of Endesa;
This reserve reports earnings from previous years that have
› the income from the disposal of the non-controlling
not been distributed or allocated to other reserves.
interest in Enel Green Power North America Renewable
Energy Partners;
313
Integrated Annual Report 2020 The table below shows the changes in gains and losses
ding non-controlling interests, with specific reporting of
recognized directly in other comprehensive income, inclu-
the related tax effects.
at Dec. 31, 2019
Change
Of which
owners
of the Parent
Of which
non-controlling
interests
Gains/(Losses)
recognized in equity
during the year
Released
to profit or loss
(3,471)
(1,627)
(147)
2
(168)
(11)
(1,045)
(3,719)
(341)
2
(1)
2
-
(430)
(4,510)
(2,121)
(91)
1
(10)
(21)
(516)
-
2,003
(6)
(3)
-
-
-
Total
(7,190)
(1,968)
(145)
1
(166)
(11)
(1,475)
(10,954)
(6,467)
(4,487)
(7,268)
1,994
(5,261)
(3,638)
(1,623)
(16,215)
(10,105)
(6,110)
Of which
owners
Of which
non-controlling
interests
(1,523)
of the Parent
(2,987)
(294)
(95)
26
(4)
-
-
-
(122)
(1)
(9)
(21)
(231)
Total
(4,510)
(268)
(99)
(1)
(9)
(21)
(353)
at Dec. 31, 2020
Of which
Of which non-
owners of the
Parent
(6,458)
(1,921)
(242)
1
(177)
(32)
(1,276)
controlling
interests
(5,242)
(315)
(2)
(1)
2
-
(552)
Total
(11,700)
(2,236)
(244)
-
(175)
(32)
(1,828)
Taxes
-
(150)
(2)
1
1
-
163
13
Millions of euro
Translation reserve
Hedging reserve
Hedging costs reserve
Reserve from measurement
of financial instruments at
FVOCI
Share of OCI of equity-
accounted associates
Reserve from measurement
of equity investments in
other companies
Actuarial reserve
Total gains/(losses)
recognized in equity
314314
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Translation reserve
Hedging reserve
Hedging costs reserve
Reserve from measurement
of financial instruments at
FVOCI
Share of OCI of equity-
accounted associates
Reserve from measurement
of equity investments in
other companies
Actuarial reserve
Total gains/(losses)
recognized in equity
at Dec. 31, 2019
Of which
owners
of the Parent
Of which
Gains/(Losses)
non-controlling
recognized in equity
Released
interests
during the year
to profit or loss
Change
Total
(7,190)
(1,968)
(145)
1
(166)
(11)
(1,475)
(3,471)
(1,627)
(147)
2
(168)
(11)
(1,045)
(3,719)
(341)
2
(1)
2
-
(430)
(4,510)
(2,121)
(91)
1
(10)
(21)
(516)
2,003
-
(6)
(3)
-
-
-
(10,954)
(6,467)
(4,487)
(7,268)
1,994
Of which
owners
of the Parent
Of which
non-controlling
interests
(2,987)
(294)
(95)
(1)
(9)
(21)
(231)
(1,523)
26
(4)
-
-
-
(122)
Total
(4,510)
(268)
(99)
(1)
(9)
(21)
(353)
at Dec. 31, 2020
Of which
owners of the
Parent
Of which non-
controlling
interests
(6,458)
(1,921)
(242)
1
(177)
(32)
(1,276)
(5,242)
(315)
(2)
(1)
2
-
(552)
Total
(11,700)
(2,236)
(244)
-
(175)
(32)
(1,828)
(5,261)
(3,638)
(1,623)
(16,215)
(10,105)
(6,110)
Taxes
-
(150)
(2)
1
1
-
163
13
315
Integrated Annual Report 2020 35.2 Dividends
Dividends paid in 2019
Dividends for 2018
Interim dividends for 2019 (1)
Special dividends
Total dividend paid in 2019
Dividends paid in 2020
Dividends for 2019
Interim dividends for 2020 (2)
Special dividends
Total dividend paid in 2020
Amount distributed
(millions of euro)
Dividend per share (euro)
2,847
-
-
2,847
3,334
-
-
3,334
0.28
-
-
0.28
0.33
-
-
0.33
(1) Approved by the Board of Directors on November 12, 2019, and paid as from January 22, 2020 (interim dividend of €0.16 per share for a total of €1,627
million).
(2) Approved by the Board of Directors on November 5, 2020, and paid as from January 20, 2021 (interim dividend of €0.175 per share for a total of €1,779
million).
The dividend for 2020 is equal to €0.358 per share, for a to-
Capital management
tal amount of €3,640 million (of which €0.175 per share, for
The Group’s objectives for managing capital comprise sa-
a total of €1,779 million, already paid as an interim dividend
feguarding the business as a going concern, creating value
as from January 20, 2021) approved by the Board of Direc-
for stakeholders and supporting the development of the
tors on March 18, 2020 and proposed to the Shareholders’
Group. In particular, the Group seeks to maintain an ade-
Meeting of May 20, 2021 at single call. These consolidated
quate capitalization that enables it to achieve a satisfactory
financial statements do not take account of the effects of
return for shareholders and ensure access to external sour-
the distribution to shareholders of the dividend for 2020,
ces of financing, in part by maintaining an adequate rating.
except for the liability in respect of shareholders for the in-
In this context, the Group manages its capital structure
terim dividend for 2020 dividend, which was approved by
and adjusts that structure when changes in economic con-
the Board of Directors on November 5, 2020 for a potential
ditions so require. There were no substantive changes in
maximum of €1,779 million, and paid as from January 20,
objectives, policies or processes in 2020.
2021 net of the portion pertaining to the 3,269,152 million
To this end, the Group constantly monitors developments in the
treasury shares held as at the record date of January 19,
level of its debt in relation to equity. The situation at December
2021.
Millions of euro
Non-current financial debt
Net current financial position
Non-current financial assets and long-term securities
Net financial debt
Equity attributable to owners of the Parent
Non-controlling interests
Equity
Debt/equity ratio
316316
31, 2020 and 2019, is summarized in the following table.
at Dec. 31, 2020
at Dec. 31, 2019
49,519
(1,359)
(2,745)
45,415
28,325
14,032
42,357
1.07
54,174
(5,814)
(3,185)
45,175
30,377
16,561
46,938
0.96
Change
(4,655)
4,455
440
240
(2,052)
(2,529)
(4,581)
-
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The percentage increase in the debt ratio is attributable to the
additional interests in Enel Américas and Enel Chile.
decrease in equity, essentially reflecting adverse exchange rate
See note 43 for a breakdown of the individual items in the table.
developments, and the increase in net financial debt, mainly
reflecting the funding requirements of investments in the
year, the payment of dividends and extraordinary transactions
35.3 Non-controlling interests - €14,032 million
The following table presents the composition of non-con-
in non-controlling interests connected with the acquisition of
trolling interests by geographic area.
Millions of euro
Non-controlling interests
Profit for the year attributable
to non-controlling interests
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
Total
2
5,869
7,206
638
160
157
14,032
1
5,961
9,277
903
222
197
-
468
477
55
6
6
(2)
36
1,256
6
(1)
7
16,561
1,012
1,302
The decrease in the portion attributable to non-controlling
and the increase in the percentage holding in Enel Améric-
interests mainly reflects exchange rate effects, dividends
as and Enel Chile.
36. Borrowings
Millions of euro
Non-current
Current
Long-term borrowings
Short-term borrowings
Total
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
at Dec. 31, 2019
49,519
-
49,519
54,174
-
54,174
3,168
6,345
9,513
3,409
3,917
7,326
For more information on the nature of borrowings, see note
by appropriate insurance policies. In addition, the group
44 “Financial instruments by category”.
has two other limited-enrollment plans (i) for current and
retired Endesa employees covered by the electricity indu-
37. Employee benefits - €2,964 million
The Group provides its employees with a variety of benefits,
stry collective bargaining agreement prior to the changes
introduced with the framework agreement noted earlier
including deferred compensation benefits, additional mon-
and (ii) for employees of the Catalan companies merged
ths’ pay for having reached age limits or eligibility for old-age
in the past (Fecsa/Enher/HidroEmpordà). Both are defi-
pension, loyalty bonuses for achievement of seniority milesto-
ned benefit plans and benefits are fully ensured, with the
nes, supplemental retirement and healthcare plans, residen-
exception of the former plan for benefits in the event of
tial electricity discounts and similar benefits. More specifically:
the death of a retired employee. Finally, the Brazilian com-
› for Italy, the item “pension benefits” regards estimated ac-
panies have also established defined benefit plans;
cruals made to cover benefits due under the supplemental
› the item “electricity discount” comprises benefits regar-
retirement schemes of retired executives and the benefits
ding electricity supply associated with foreign companies.
due to personnel under law or contract at the time the em-
For Italy, that benefit, which was granted until the end of
ployment relationship is terminated. For the foreign com-
2015 to retired employees only, was unilaterally cancelled;
panies, the item refers to post-employment benefits, of
› the item “health insurance” refers to benefits for current
which the most material regard the pension benefit sche-
or retired employees covering medical expenses;
mes of Endesa in Spain, which break down into three types
› “other benefits” mainly regard the loyalty bonus, which is
that differ on the basis of employee seniority and company.
adopted in various countries and for Italy is represented
In general, under the framework agreement of October 25,
by the estimated liability for the benefit entitling em-
2000, employees participate in a specific defined contribu-
ployees covered by the electricity workers national col-
tion pension plan and, in cases of disability or death of em-
lective bargaining agreement to a bonus for achievement
ployees in service, a defined benefit plan which is covered
of seniority milestones (25th and 35th year of service).
317
Integrated Annual Report 2020 It also includes other incentive plans, which provide for
obligation for post-employment and other long-term em-
the award to certain Company managers of a monetary
ployee benefits at December 31, 2020, and December 31,
bonus subject to specified conditions.
2019, respectively, as well as a reconciliation of that obliga-
The following table reports changes in the defined benefit
tion with the actuarial liability.
Millions of euro
2020
Electricity
2019
Pension benefits
discount Health insurance
Other benefits
Total
Pension benefits
Electricity discount
Health insurance
Other benefits
CHANGES IN ACTUARIAL OBLIGATION
Actuarial obligation at the start of the year
5,691
18
249
45
105
466
(24)
(584)
(1,206)
-
1
(358)
5
-
4,408
3,374
160
85
(782)
342
1
(358)
(523)
-
2,299
45
3
(24)
(11)
-
13
904
3
5
12
19
(21)
(504)
-
(1)
-
-
(16)
2
-
403
-
-
-
-
16
-
(16)
-
-
-
-
-
-
-
-
-
263
4
7
6
(2)
(7)
(13)
-
(30)
-
-
(11)
-
-
217
-
-
-
-
11
-
(11)
-
-
-
-
-
-
-
-
-
242
38
4
1
2
(8)
(1)
-
(7)
-
-
(48)
(1)
-
222
-
-
-
-
21
-
(21)
-
-
-
-
-
-
-
-
-
7,100
63
265
64
124
430
(542)
(584)
(1,244)
-
1
(433)
6
-
5,250
3,374
160
85
(782)
390
1
(406)
(523)
-
2,299
45
3
(24)
(11)
-
13
Current service cost
Interest expense
Actuarial (gains)/losses arising from changes
in demographic assumptions
Actuarial (gains)/losses arising from changes
in financial assumptions
Experience adjustments
Past service cost
(Gains)/losses arising from settlements
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other changes
Liabilities included in disposal groups
classified as held for sale
Actuarial obligation at year-end (A)
CHANGES IN PLAN ASSETS
Fair value of plan assets at the start of the year
Interest income
Expected return on plan assets excluding
amounts included in interest income
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other payments
Changes in the consolidation scope
Fair value of plan assets at year-end (B)
EFFECT OF ASSET CEILING
Asset ceiling at the start of the year
Interest income
Changes in asset ceiling
Exchange differences
Changes in the consolidation scope
Asset ceiling at year-end
Net liability in statement of financial position
(A-B+C)
318318
5,072
20
335
(16)
701
94
(8)
(84)
-
-
2
6
-
(431)
5,691
3,160
235
272
(50)
186
(431)
2
-
-
3,374
24
2
20
(1)
-
45
767
4
15
91
55
(31)
904
31
(31)
-
-
-
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
253
4
10
1
15
(4)
(2)
(14)
263
14
(14)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
231
32
8
13
5
-
2
-
1
-
-
(45)
(5)
242
16
(16)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
6,323
60
365
(15)
815
158
(6)
(85)
-
-
2
4
-
(521)
7,100
3,160
235
272
(50)
247
(492)
2
-
-
3,374
24
2
20
(1)
-
45
2,122
403
217
222
2,964
2,362
904
263
242
3,771
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
2020
Electricity
CHANGES IN ACTUARIAL OBLIGATION
Actuarial obligation at the start of the year
5,691
Current service cost
Interest expense
Actuarial (gains)/losses arising from changes
in demographic assumptions
Actuarial (gains)/losses arising from changes
(Gains)/losses arising from settlements
in financial assumptions
Experience adjustments
Past service cost
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other changes
Liabilities included in disposal groups
classified as held for sale
Actuarial obligation at year-end (A)
CHANGES IN PLAN ASSETS
Fair value of plan assets at the start of the year
Interest income
Expected return on plan assets excluding
amounts included in interest income
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other payments
Changes in the consolidation scope
Fair value of plan assets at year-end (B)
EFFECT OF ASSET CEILING
Asset ceiling at the start of the year
Interest income
Changes in asset ceiling
Exchange differences
Changes in the consolidation scope
Asset ceiling at year-end
Net liability in statement of financial position
18
249
45
105
466
(24)
(584)
(1,206)
(358)
-
1
5
-
4,408
3,374
160
85
(782)
342
(358)
(523)
1
-
2,299
45
3
(24)
(11)
-
13
217
222
5,250
904
3
5
12
19
(21)
(504)
(1)
-
-
-
2
-
(16)
403
16
(16)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
263
4
7
6
(2)
(7)
(13)
(30)
(11)
11
(11)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
242
38
4
1
2
(8)
(1)
(7)
-
-
-
(48)
(1)
21
(21)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,244)
7,100
63
265
64
124
430
(542)
(584)
(433)
-
1
6
-
3,374
160
85
(782)
390
(406)
(523)
1
-
2,299
45
3
(24)
(11)
-
13
Pension benefits
discount Health insurance
Other benefits
Total
Pension benefits
Electricity discount
Health insurance
Other benefits
2019
5,072
20
335
(16)
701
94
(8)
-
(84)
-
2
(431)
6
-
5,691
3,160
235
272
(50)
186
2
(431)
-
-
3,374
24
2
20
(1)
-
45
767
4
15
-
91
55
-
-
-
-
-
(31)
3
-
904
-
-
-
-
31
-
(31)
-
-
-
-
-
-
-
-
-
253
4
10
1
15
(4)
-
-
(2)
-
-
(14)
-
-
263
-
-
-
-
14
-
(14)
-
-
-
-
-
-
-
-
-
231
32
5
-
8
13
2
-
1
-
-
(45)
(5)
-
242
-
-
-
-
16
-
(16)
-
-
-
-
-
-
-
-
-
Total
6,323
60
365
(15)
815
158
(6)
-
(85)
-
2
(521)
4
-
7,100
3,160
235
272
(50)
247
2
(492)
-
-
3,374
24
2
20
(1)
-
45
(A-B+C)
2,122
403
217
222
2,964
2,362
904
263
242
3,771
319
Integrated Annual Report 2020 The decrease in the actuarial liability compared with 2019,
Note also that the obligations in respect of Enel Group per-
equal to €807 million, is mainly attributable to the transfer
sonnel have not been appreciably affected by the effects of
by Enel Distribuição São Paulo in Brazil of part of its em-
the COVID-19 emergency, which are considered temporary
ployee defined benefit plans to external companies. These
and short-term.
plans thereby became defined contribution plans, which
are not subject to actuarial measurement.
Millions of euro
(Gains)/Losses taken to profit or loss
Service cost and past service cost
Net interest expense
(Gains)/Losses arising from settlements
Actuarial (gains)/losses on other long-term benefits
Other changes
Total
Millions of euro
Change in (gains)/losses in OCI
Expected return on plan assets excluding amounts included in interest
income
Actuarial (gains)/losses on defined benefit plans
Changes in asset ceiling excluding amounts included in interest income
Other changes
Total
2020
(509)
108
(61)
31
(9)
(440)
2020
(85)
626
(24)
(1)
516
2019
32
129
-
25
-
186
2019
(272)
958
20
(4)
702
The decrease in the cost recognized in profit or loss was
The liability recognized in the statement of financial posi-
equal to €626 million. The impact on the income state-
tion at the end of the year is reported net of the fair value
ment is, therefore, smaller than in 2019, due mainly to the
of plan assets, amounting to €2,299 million at December
signing in 2020 of the 5th Endesa Collective Bargaining
31, 2020. Those assets, which are entirely in Spain and
Agreement, which modified the electricity discount bene-
Brazil, break down as follows.
fit for current and former employees, with the consequent
reversal of the associated provision.
Investments quoted in active markets
Equity instruments
Fixed-income securities
Investment property
Other
Unquoted investments
Assets held by insurance undertakings
Other
Total
320320
at Dec. 31, 2020
at Dec. 31, 2019
7%
63%
2%
-
-
28%
100%
8%
68%
3%
-
-
21%
100%
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The main actuarial assumptions used to calculate the liabi-
which are consistent with those used the previous year, are
lities in respect of employee benefits and the plan assets,
set out in the following table.
Italy
Iberia
2020
0.00%
-0.50%
0.50%
0.50%
-2.50%
0.00%
-0.61%
1.00%
1.00%
1.50%
3.20%
-
0.57%
Latin
America
Other
countries
2.55%
-7.95%
3.00%
-4.85%
3.80%
-5.04%
7.12%
-8.00%
6.08%
-7.33%
0.75%
-6.30%
0.75%
-3.83%
2.25%
-3.83%
-
-
Italy
Iberia
2019
0.00%
-0.70%
0.70%
0.70%
-1.70%
0.00%
-1.14%
2.00%
2.00%
1.70%
3.20%
-
1.09%
Latin
America
Other
countries
3.40%
-7.59%
3.00%
-8.00%
3.80%
-8.00%
7.12%
-8.00%
6.44%
-7.38%
1.20%
-6.45%
1.00%
-3.94%
2.50%
-3.94%
-
-
Discount rate
Inflation rate
Rate of wage increases
Rate of increase in
healthcare costs
Expected rate of return
on plan assets
The following table reports the outcome of a sensitivity
of the year in the actuarial assumptions used in estimating
analysis that demonstrates the effects on the defined be-
the obligation.
nefit obligation of changes reasonably possible at the end
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
at Dec. 31, 2020
at Dec. 31, 2019
Decrease of 0.5% in
discount rate
Increase of 0.5% in
discount rate
Increase of 0.5% in
inflation rate
Decrease of 0.5% in
inflation rate
Increase of 0.5% in
remuneration
Increase of 0.5% in
pensions currently being
paid
Increase of 1% healthcare
costs
Increase of 1 year in life
expectancy of active and
retired employees
239
(190)
(1)
33
14
15
-
27
30
(30)
(5)
2
(2)
(2)
-
(11)
11
(15)
(3)
7
(3)
(3)
(2)
2
(1)
(11)
(7)
(4)
(3)
(6)
-
321
(285)
(2)
31
19
9
-
(34)
179
78
(73)
(74)
79
2
(2)
-
36
15
(19)
(5)
10
(2)
(3)
12
19
5
(7)
(3)
1
5
(1)
-
(1)
The sensitivity analysis used an approach that extrapolates the
plans in the subsequent year amount to €80 million.
effect on the defined benefit obligation of reasonable changes
in an individual actuarial assumption, leaving the other assu-
The following table reports expected benefit payments in the
mptions unchanged.
coming years for defined benefit plans.
The contributions expected to be paid into defined benefit
Millions of euro
Within 1 year
In 1-2 years
In 2-5 years
More than 5 years
at Dec. 31, 2020
at Dec. 31, 2019
366
337
971
1,534
461
447
1,288
2,040
321
Integrated Annual Report 2020 -
102
132
33
24
504
795
401
-
1,196
at Dec.
31, 2020
38. Provisions for risks and charges -
€6,831 million
Millions of euro
Provision for litigation, risks and other
charges:
- nuclear decommissioning
- site retirement, removal and restoration
- litigation
- environmental certificates
- taxes and duties
- other
Total
Provision for early retirement incentives
and other restructuring plans
Provision for restructuring programs
connected with energy transition
TOTAL
at Dec. 31, 2020
at Dec. 31, 2019
Non-current
Current
Non-current
Current
596
2,017
734
-
288
757
4,392
623
759
5,774
-
99
86
42
43
343
613
444
-
1,057
640
1,840
938
-
312
762
4,492
832
-
5,324
Provisions
for site
retirement
and
restoration
Change in
the conso-
lidation
scope
Exchan-
ge
differen-
ces
Other
changes
Reclassifi-
cations of
liabilities
included
in disposal
groups held
for sale
Millions of euro
Accrual Reversal
Utiliza-
tion
Discoun-
ting
at Dec.
31, 2019
Provision for
litigation, risks and
other charges:
- nuclear
decommissioning
640
1
-
-
1
(46)
1,942
1,070
33
336
1,266
5,287
99
187
41
46
331
705
(50)
(44)
(160)
(136)
(8)
(18)
(24)
(17)
(147)
(178)
(383)
(399)
17
37
-
34
10
99
187
-
-
-
-
141
1,233
223
(39)
(443)
59
-
- site retirement,
removal and
restoration
- litigation
- environmental
certificates
- taxes and duties
- other
Total
Provision for
early retirement
incentives and
other restructuring
plans
Provision for
restructuring
programs
connected with
energy transition
-
759
-
-
-
158
-
141
TOTAL
6,520
1,687
(422)
(842)
322322
-
-
-
-
-
-
-
-
-
-
-
-
-
596
(36)
(198)
-
(46)
(51)
(331)
2
21
-
(4)
(131)
(112)
(1)
(1)
-
-
-
2,116
820
42
331
1,100
(2)
5,005
(2)
36
-
1,067
-
(333)
-
(76)
-
(2)
759
6,831
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Nuclear decommissioning provision
At December 31, 2020, the provision reflected solely the costs
need for compliance with national or supranational en-
vironmental protection requirements and mainly regards
that will be incurred at the time of decommissioning of nucle-
Enel Energia, Endesa Energía and Unelco.
ar plants by ENRESA, a Spanish public entity responsible for
such activities in accordance with Royal Decree 1349/2003
and Law 24/2005. Quantification of the costs is based on
Provision for taxes and duties
The provision for taxes and duties covers the estimated
the standard contract between ENRESA and the electricity
liability deriving from tax disputes concerning direct and
companies approved by the Ministry for the Economy in Sep-
indirect taxes. The balance of the provision also includes
tember 2001, which regulates the retirement and closing of
the provision for current and potential disputes concer-
nuclear power plants. The time horizon envisaged, three ye-
ning local property tax (whether the Imposta Comunale
ars, corresponds to the period from the termination of power
sugli Immobili (“ICI”) or the new Imposta Municipale Unica
generation to the transfer of plant management to ENRESA
(“IMU”)) in Italy. The Group has taken due account of the
(so-called post-operational costs) and takes account, among
criteria introduced with circular no. 6/2012 of the Public
the various assumptions used to estimate the amount, of the
Land Agency (which resolved interpretive issues concer-
quantity of unused nuclear fuel expected at the date of clo-
ning the valuation methods for movable assets consi-
sure of each of the Spanish nuclear plants on the basis of the
dered relevant for property registry purposes, including
provisions of the concession agreement.
Site retirement, removal and restoration provision
This provision represents the present value of the estima-
certain assets typical to generation plants, such as turbi-
nes) in estimating the liability for such taxes, both for the
purposes of quantifying the probable risk associated with
pending litigation and generating a reasonable valuation
ted cost for the retirement and removal of non-nuclear
of probable future charges on positions that have not yet
plants where there is a legal or constructive obligation to
been assessed by Land Agency offices and municipalities.
do so. The provision mainly regards the Endesa Group,
The provision was virtually unchanged on December 31, 2019.
Enel Produzione and the companies in Latin America. The
change in the provisions during 2020 is mainly linked to the
redetermination of the future retirement costs of certain
Other provisions
Other provisions cover various risks and charges, mainly in
plants in Iberia and an increase in provisions for retirement
connection with regulatory disputes and disputes with lo-
costs resulting from the Group’s decision to promote the
cal authorities regarding various duties and fees or other
termination of generation from coal-fired power plants in
charges.
Iberia, Italy and Chile in order to achieve the Group’s stra-
The decrease of €166 million in other provisions is mainly
tegic objective of decarbonizing generation in order to
attributable to Enel Energia and the adverse exchange rate
mitigate the impacts of climate change.
effects in Latin America.
Litigation provision
The litigation provision covers contingent liabilities in re-
spect of pending litigation and other disputes. It includes
an estimate of the potential liability relating to disputes
that arose during the year, as well as revised estimates of
the potential costs associated with disputes initiated in
Note also the recognition of a provision for risks (equal to
€47 million) as a result of the write-down of the sale of
50% of the investment in Slovak Power Holding.
Provision for early retirement incentives and other
restructuring plans
The provision for early retirement incentives and other
prior years. The balance for litigation mainly regards the
restructuring plans includes the estimated charges rela-
companies in Spain (€178 million), Italy (€107 million) and
ted to binding agreements for the voluntary termination
Latin America (€522 million).
of employment contracts in response to organizational
The decrease compared with the previous year, equal to
needs. The reduction of €166 million for the year mainly
€250 million, mainly reflects the change in the provision in
reflects uses of provisions for incentives established in
Latin America and North America, attributable in particular
Spain and Italy in previous years.
to adverse exchange rate developments in Brazil and Ar-
In Italy, the latter is largely associated with the union-com-
gentina, as well as the resolution of a number of disputes
pany agreements signed in September 2013 and Decem-
in the United States.
ber 2015, implementing, for a number of companies in
Italy, the mechanism provided for under Article 4, para-
Provision for environmental certificates
The provision for environmental certificates covers costs
graphs 1-7 ter, of Law 92/2012 (the Fornero Act). The latter
agreement envisaged the voluntary termination, in Italy, of
in respect of shortfalls in the environmental certificates
about 6,100 employees in 2016-2020.
323
Integrated Annual Report 2020 In Spain, the provisions regard the Acuerdo de Salida Vo-
reskilling plans and voluntary individual early retirement
luntaria.
Provision for restructuring programs connected
with the energy transition
Enel, in its role as a leader of the energy transition, has
agreements that will involve around 1,300 people worldwi-
de. The energy transition is also based on the progressive
and expansive development of digital tools, as digitization
is essential to responding to multiple external forces and
making informed and well-considered decisions at every
placed decarbonization and growth of renewables around
level within the Group.
the world at the center of its strategy.
A provision was therefore established for restructuring
In this context, Enel has begun restructuring the activities
programs, which at December 31, 2020 amounted to
associated with the energy transition process, which in-
€759 million, which is mainly attributable to Spain and Italy,
volves thermal generation plants in all the geographical
and represents the estimated costs that the Group has
areas in which the Group operates. The consequent revi-
provisioned to accelerate the energy transition process,
sion of processes and operating models will require chan-
for all direct and indirect activities related to the review of
ges in the roles and skills of employees, which the Group
processes and operating models and the roles and skills
intends to implement with highly sustainable plans based
of employees.
on redeployment programs, with major upskilling and
39. Other non-current liabilities -
€3,458 million
Millions of euro
Accrued operating expenses and deferred
income
Other items
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
500
2,958
3,458
552
3,154
3,706
(52)
(196)
(248)
-9.4%
-6.2%
-6.7%
The decrease of €52 million in “accrued operating expen-
to “accrued operating expenses and deferred income”, the
ses and deferred income” is essentially attributable to the
change in “other items” reflected an increase in liabilities
€59 million reclassification carried out by Enel Finance In-
for tax partnerships beyond 12 months in the United Sta-
ternational for presentation purposes for deferred income
tes and an increase in liabilities relating to the outcome of
related to the negotiation of derivative contracts, now re-
the PIS/COFINS dispute in Brazil (already discussed under
ported in “other items” of the same table.
“other non-current assets”) in the amount of €330 million.
These changes were more than offset by adverse exchange
In addition to the reclassification mentioned with regard
rate developments, mainly in Latin America.
324324
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 40. Other current liabilities - €11,651 million
Millions of euro
Amounts due to customers
Amounts due to institutional market
operators
Amounts due to employees
Other tax liabilities
Amounts due to social security institutions
Contingent consideration
Put options granted to non-controlling
shareholders
Current accrued expenses and deferred
income
Dividends
Other
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
1,481
4,012
438
886
207
53
1
346
2,135
2,092
11,651
1,670
4,507
496
1,082
212
116
3
372
2,143
2,560
13,161
(189)
(495)
(58)
(196)
(5)
(63)
(2)
(26)
(8)
(468)
(1,510)
-11.3%
-11.0%
-11.7%
-18.1%
-2.4%
-54.3%
-66.7%
-7.0%
-0.4%
-18.3%
-11.5%
Amounts due to customers include €822 million (€880 mil-
tnerships (€87 million) posted by renewables companies in
lion at December 31, 2019) in security deposits related to
North America in the amount of €181 million as a result of
amounts received from customers in Italy as part of electri-
the entry of new plants into service.
city and gas supply contracts. Following the finalization of
the contract, deposits for electricity sales, the use of which
is not restricted in any way, are classified as current liabili-
41. Trade payables - €12,859 million
The item amounted to €12,859 million (€12,960 million in
ties given that the Parent does not have an unconditional
2019) and includes payables in respect of electricity sup-
right to defer repayment beyond 12 months.
plies, fuel, materials, equipment associated with tenders,
Amounts due to institutional market operators include
and other services.
liabilities arising from the application of equalization me-
chanisms to electricity purchases on the Italian market
More specifically, trade payables falling due in less than 12
amounting to €2,444 million (€3,064 million at December
months amounted to €12,282 million (€12,322 million at
31, 2019), on the Spanish market amounting to €1,538 mil-
December 31, 2019), while those with falling due in more
lion (€1,267 million at December 31, 2019) and on the Latin
than 12 months amounted to €577 million (€638 million at
American market amounting to €30 million (€176 million at
December 31, 2019).
December 31, 2019).
Contingent consideration mainly regards a number of
equity investments held by the Group in North America, the
fair value of which was determined on the basis of the con-
tractual conditions in the agreements between the parties.
Other mainly regards the liabilities of some Brazilian com-
panies to the national electricity agency ANEEL (Regulatory
Resolution no. 885/2020 of June 23) in respect of loans
granted to distribution companies in order to provide liqui-
dity to them and minimize the effects of the pandemic.
The decline in other is mainly attributable to the effect of
the recognition in 2019 of the debt of €358 million asso-
ciated with the purchase through financial intermediaries
(with share swaps) of additional shares in Enel Américas and
Enel Chile, compounded by the impact of the reduction in
2020 of liabilities for expired commodity derivatives, whi-
ch were registered mainly in Italy and Spain. These effects
were partially offset by an increase in liabilities for tax par-
325
Integrated Annual Report 2020 42. Other current financial liabilities -
€622 million
Millions of euro
Accrued financial expense and deferred
financial income
Other items
Total
at Dec. 31, 2020
at Dec. 31, 2019
Change
535
87
622
607
147
754
(72)
(60)
(132)
-11.9%
-40.8%
-17.5%
The decrease in other current financial liabilities is at-
tributable to a €73 million decrease in accrued financial
expense, connected primarily with the decline in interest
on bonds, a €41 million decrease in the liability in respect
43. Net financial position and long-term
financial assets and securities -
€45,415 million
The following table shows the net financial position and
of the deficit of the Spanish electrical system and a €20
long-term financial assets and securities on the basis of
million decrease in the liability in respect of bondholders
the items on the consolidated statement of financial po-
for accrued interest to be settled.
sition.
Millions of euro
Long-term borrowings
Short-term borrowings
Other current financial borrowings (1)
Current portion of long-term borrowings
Other non-current financial assets included in net financial debt
Other current financial assets included in net financial debt
Cash and cash equivalents
Total
Notes
at Dec. 31,
2020
at Dec. 31,
2019
Change
36
36
36
27.1
28
33
49,519
6,345
5
3,168
(2,745)
(4,971)
(5,906)
45,415
54,174
3,917
47
3,409
(3,185)
(4,158)
(9,029)
45,175
(4,655)
2,428
(42)
(241)
440
(813)
3,123
240
-8.6%
62.0%
-89.4%
-7.1%
13.8%
-19.6%
34.6%
0.5%
(1)
“Other current financial borrowings” is included under “Other current financial liabilities”.
Pursuant to CONSOB instructions of July 28, 2006, the fol-
debt as provided for in the presentation methods of the
lowing table reports the net financial debt at December 31,
Enel Group.
2020 and December 31, 2019, reconciled with net financial
326326
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Cash and cash equivalents on hand
Bank and post office deposits
Other investments of liquidity
Securities
Liquidity
Short-term loan assets
Current portion of long-term loan assets
Current loan assets
Short-term bank borrowings
Commercial paper
Current portion of long-term bank
borrowings
Bonds issued (current portion)
Other borrowings (current portion)
Other short-term borrowings (1)
Total current financial debt
Net current financial position
Bank borrowings
Bonds
Other borrowings
Non-current financial debt
NET FINANCIAL DEBT
as per CONSOB Communication
Non-current financial assets and
securities
NET FINANCIAL DEBT
at Dec. 31, 2020
at Dec. 31, 2019
Change
42
5,699
165
67
5,973
3,476
1,428
4,904
(711)
(4,854)
(1,369)
(1,412)
(387)
(785)
(9,518)
1,359
(8,663)
(38,357)
(2,499)
(49,519)
87
7,910
1,032
51
9,080
2,522
1,585
4,107
(579)
(2,284)
(1,121)
(1,906)
(382)
(1,101)
(7,373)
5,814
(8,407)
(43,294)
(2,473)
(54,174)
(48,160)
(48,360)
2,745
(45,415)
3,185
(45,175)
(45)
(2,211)
(867)
16
(3,107)
954
(157)
797
(132)
(2,570)
(248)
494
(5)
316
(2,145)
(4,455)
(256)
4,937
(26)
4,655
200
(440)
(240)
(1)
Includes current borrowings included under other current financial liabilities.
-51.7%
-28.0%
-84.0%
31.4%
-34.2%
37.8%
-9.9%
19.4%
-22.8%
-
-22.1%
25.9%
-1.3%
28.7%
-29.1%
-76.6%
-3.0%
11.4%
-1.1%
8.6%
0.4%
-13.8%
-0.5%
327
Integrated Annual Report 2020 Financial instruments
44. Financial instruments by category
This note provides disclosures necessary for users to
44.1 Financial assets by category
The following table reports the carrying amount for each
category of financial asset provided for under IFRS 9,
broken down into current and non-current financial as-
assess the significance of financial instruments for the
sets, showing hedging derivatives and derivatives me-
Group’s financial position and performance.
asured at fair value through profit or loss separately.
Millions of euro
Financial assets at amortized cost
Financial assets at FVOCI
Financial assets at fair value through profit or loss
Derivative financial assets at FVTPL
Other financial assets at FVTPL
Financial assets designated upon initial recognition (fair value
option)
Total financial assets at fair value through profit or loss
Derivative financial assets designated as hedging instruments
Fair value hedge derivatives
Cash flow hedge derivatives
Total derivative financial assets designated as hedging
instruments
TOTAL
Notes
44.1.1
44.1.2
44.1.3
44.1.3
44.1.3
44.1.4
44.1.4
Non-current
Current
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
3,966
448
52
2,087
-
2,139
50
1,134
1,184
7,737
4,258
480
29
2,370
-
2,399
32
1,322
1,354
8,491
22,967
26,326
67
61
2,765
301
-
3,066
28
678
706
26,806
3,086
51
-
3,137
-
979
979
30,503
For more information on fair value measurement, see note
44.1.1 Financial assets measured at amortized cost
48 “Assets and liabilities measured at fair value”.
The following table reports financial assets measured at
amortized cost by nature, broken down into current and
non-current financial assets.
Millions of euro
Non-current
Current
Cash and cash equivalents
Trade receivables
Current portion of long-term loan assets
Cash collateral
Other financial assets
Financial assets from service concession
arrangements at amortized cost
Other financial assets at amortized cost
Total
Notes
at Dec. 31,
2020
at Dec. 31,
2019
Notes
at Dec. 31,
2020
at Dec. 31,
2019
32
27.1
27
-
1,200
-
-
-
917
-
-
2,337
2,769
243
186
3,966
340
232
4,258
33
32
28.1
28.1
28.1
28
5,702
10,846
1,331
3,223
253
9
1,603
22,967
9,029
12,166
1,534
2,153
370
13
1,061
26,326
Impairment of financial assets at amortized cost
measured at amortized cost subject to impairment testing:
Financial assets measured at amortized cost at December
› cash and cash equivalents;
31, 2020 amounted to €3,624 million (€3,370 million at De-
› trade receivables and contract assets;
cember 31, 2019) and are recognized net of allowances for
› loan assets;
expected credit losses.
› other financial assets.
The Group mainly has the following types of financial assets
While cash and cash equivalents are also subject to the im-
328328
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
pairment requirements of IFRS 9, the identified impairment
For more information on assets deriving from contracts
loss was immaterial.
with customers, please see note 26 “Current/Non-current
contract assets/(liabilities).
The expected credit loss (ECL), determined using proba-
A forward-looking adjustment can be applied considering
bility of default (PD), loss given default (LGD) and exposure
qualitative and quantitative information in order to reflect
at default (EAD), is the difference between all contractual
future events and macroeconomic developments that
cash flows that are due in accordance with the contract
could impact the risk associated with the portfolio or finan-
and all cash flows that are expected to be received (i.e.,
cial instrument.
all shortfalls) discounted at the original effective interest
Depending on the nature of the financial assets and the
rate (EIR).
credit risk information available, the assessment of the in-
For calculating ECL, the Group applies two different appro-
crease in credit risk can be performed on:
aches:
› an individual basis, if the receivables are individually si-
› the general approach, for financial assets other than
gnificant and for all receivables which have been indivi-
trade receivables, contract assets and lease receivables.
dually identified for impairment based on reasonable and
This approach, based on an assessment of any signifi-
supportable information;
cant increase in credit risk since initial recognition, is per-
› a collective basis, if no reasonable and supportable infor-
formed comparing the PD at origination with PD at the
mation is available without undue cost or effort to mea-
reporting date, at each reporting date.
sure expected credit losses on an individual instrument
Then, based on the results of the assessment, a loss al-
basis.
lowance is recognized based on 12-month ECL or lifeti-
When there is no reasonable expectation of recovering a
me ECL (i.e. staging):
financial asset in its entirety or a portion thereof, the gross
– 12-month ECL, for financial assets for which there has
carrying amount of the financial asset shall be reduced.
not been a significant increase in credit risk since initial
A write-off represents a derecognition event (e.g. the right
recognition;
to cash flows is legally or contractually extinguished, tran-
– lifetime ECL, for financial assets for which there has been
sferred or expired).
a significant increase in credit risk or which are credit
impaired (i.e. defaulted based on past due information);
The following table reports expected credit losses on finan-
› the simplified approach, for trade receivables, contract
cial assets measured at amortized cost on the basis of the
assets and lease receivables with or without a significant
general simplified approach.
financing component, based on lifetime ECL without
tracking changes in credit risk.
Millions of euro
Cash and cash equivalents
Trade receivables
Loan assets
Other financial assets at amortized cost
Total
at Dec. 31, 2020
Allowance
for expected
credit losses
-
3,287
208
129
3,624
Gross amount
5,702
15,333
7,352
2,170
30,557
at Dec. 31, 2019
Allowance
for expected
credit losses
-
2,980
231
159
Total
9,029
13,083
6,826
1,646
3,370
30,584
Total
Gross amount
5,702
12,046
7,144
2,041
26,933
9,029
16,063
7,057
1,805
33,954
To measure expected losses, the Group assesses trade re-
ceivables are grouped on the basis of their shared credit
ceivables and contract assets with the simplified approach,
risk characteristics and information on past due positions,
both on an individual basis (e.g. government entities, au-
considering a specific definition of default.
thorities, financial counterparties, wholesale sellers, traders
Based on each business and local regulatory framework, as
and large companies, etc.) and a collective basis (e.g. retail
well as differences between customer portfolios, including
customers).
their default and recovery rates (comprising expectations
In the case of individual assessments, PD is generally obtai-
› the Group mainly defines a defaulted position as one that
ned from external providers.
is 180 days past due. Accordingly, beyond this time limit,
Otherwise, in the case of collective assessments, trade re-
trade receivables are presumed to be credit impaired); and
for recovery beyond 90 days):
329
Integrated Annual Report 2020 › specific clusters are defined on the basis of specific mar-
› LGD is a function of the recovery rates for each cluster,
kets, business and risk characteristics.
discounted using the effective interest rate; and
Contract assets substantially have the same risk characte-
› EAD is estimated as equal to the carrying amount at the
ristics as trade receivables for the same types of contracts.
reporting date net of cash deposits, including invoices is-
In order to measure the ECL for trade receivables on a col-
sued but not past due and invoices to be issued.
lective basis, as well as for contract assets, the Group uses
the following assumptions regarding the ECL parameters:
The following table reports changes in the allowance for
› PD, assumed equal to the average default rate, is calcu-
expected credit losses on loan assets in accordance with
lated by cluster and considering historical data from at
the general simplified approach.
ECL 12-month allowance
ECL lifetime allowance
87
-
-
(1)
(8)
78
78
354
-
(4)
(363)
65
142
26
-
(3)
(12)
153
153
8
-
(4)
(14)
143
2,828
1,239
(834)
(202)
(51)
2,980
2,980
1,505
(819)
(194)
(185)
3,287
least 24 months;
Millions of euro
Opening balance at Jan. 1, 2019
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
The following table reports changes in the allowance for
expected credit losses on trade receivables.
Millions of euro
Opening balance at Jan. 1, 2019
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
330330
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following table reports changes in the allowance for
expected credit losses on other financial assets at amorti-
zed cost.
Millions of euro
Opening balance at Jan. 1, 2019
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
ECL lifetime allowance
64
105
-
(7)
(3)
159
159
22
-
(23)
(29)
129
Note 45 “Risk management” provides additional informa-
44.1.2 Financial assets at fair value through
tion on the exposure to credit risk and expected losses.
other comprehensive income
The following table shows financial assets at fair value throu-
gh other comprehensive income by nature, broken down into
current and non-current financial assets.
Notes
27
27.1
Non-current
at Dec. 31,
2020
at Dec. 31,
2019
40
408
448
64
416
480
Notes
28.1
Current
at Dec. 31,
2020
at Dec. 31,
2019
-
67
67
-
61
61
Millions of euro
Equity investments in other companies at FVOCI
Securities
Total
Changes in financial assets at FVOCI
EQUITY INVESTMENTS IN OTHER COMPANIES
Millions of euro
Opening balance at Jan. 1, 2020
Purchases
Sales
Changes in fair value through OCI
Other changes
Closing balance at Dec. 31, 2020
SECURITIES AT FVOCI
Millions of euro
Opening balance at Jan. 1, 2020
Purchases
Sales
Changes in fair value through OCI
Reclassifications
Other changes
Closing balance at Dec. 31, 2020
Non-current
Current
64
6
-
(21)
(9)
40
-
-
-
-
-
-
Non-current
Current
416
124
(54)
(3)
(75)
-
408
61
-
-
-
75
(69)
67
331
Integrated Annual Report 2020 44.1.3 Financial assets at fair value through profit or loss
through profit or loss by nature, broken down into current
The following table shows financial assets at fair value
and non-current financial assets.
Millions of euro
Derivatives at FVTPL
Investments in liquid assets
Financial assets at FVTPL
Equity investments in other companies at FVTPL
Financial assets from service concession
arrangements at FVTPL
Total
Notes
47
27
27
Non-current
at Dec. 31,
2020
at Dec. 31,
2019
52
-
-
30
29
-
-
8
2,057
2,139
2,362
2,399
Notes
47
32
28, 28.1
Current
at Dec. 31,
2020
2,765
204
97
-
-
at Dec. 31,
2019
3,086
-
51
-
-
3,066
3,137
44.1.4 Derivative financial assets designated as hedging
instruments
44.2 Financial liabilities by category
The following table shows the carrying amount for each
For more information on derivative financial assets, please
category of financial liability provided for under IFRS 9,
see note 47 “Derivatives and hedge accounting”.
broken down into current and non-current financial liabili-
Millions of euro
Financial liabilities measured at amortized cost
Financial liabilities at fair value through profit or loss
Derivative financial liabilities at FVTPL
Total financial liabilities at fair value through profit or loss
Derivative financial liabilities designated as hedging instruments
Fair value hedge derivatives
Cash flow hedge derivatives
Total derivative financial liabilities designated as hedging
instruments
TOTAL
ties, showing hedging derivatives and derivatives measured
at fair value through profit or loss separately.
Notes
44.2.1
44.4
44.4
44.4
Non-current
Current
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
50,254
54,931
29,598
28,261
29
29
-
20
20
1
3,577
2,386
3,577
53,860
2,387
57,338
2,887
2,887
-
644
644
33,129
2,981
2,981
-
573
573
31,815
For more information on fair value measurement, please
44.2.1 Financial liabilities measured at amortized cost
see note 48 “Liabilities measured at fair value”.
The following table shows financial liabilities at amortized
cost by nature, broken down into current and non-current
financial liabilities.
Millions of euro
Long-term borrowings
Short-term borrowings
Trade payables
Other financial liabilities
Total
332332
Notes
44.3
41
Non-current
at Dec. 31,
2020
at Dec. 31,
2019
49,519
54,174
-
577
158
-
638
119
50,254
54,931
Notes
44.3
44.3
41
Current
at Dec. 31,
2020
at Dec. 31,
2019
3,168
6,345
12,282
7,803
29,598
3,409
3,917
12,322
8,613
28,261
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
44.3 Borrowings
The following table reports the carrying amount and fair va-
lue for each category of long-term debt and interest rate,
44.3.1 Long-term borrowings (including the portion
including the portion falling due within 12 months.
falling due within 12 months) - €52,687 million
Millions of euro
Nominal
value
Carrying
amount
Current
portion
Portion
due in
more than
12 months Fair value
Nominal
value
Carrying
amount
Current
portion
Portion
due in
more than
12 months Fair value
Changes
in carrying
amount
at Dec. 31, 2020
at Dec. 31, 2019
Bonds:
- listed, fixed rate
23,629
23,052
1,041
22,011
27,470
27,312
26,593
1,621
24,972
31,073
(3,541)
- listed, floating
rate
- unlisted, fixed
rate
- unlisted, floating
rate
2,817
2,800
260
2,540
2,937
3,515
3,488
258
3,230
3,655
(688)
13,262
13,184
-
13,184
15,753
14,458
14,359
-
14,359
15,794
(1,175)
733
733
111
622
828
760
760
27
733
753
(27)
Total bonds
40,441
39,769
1,412
38,357
46,988
46,045
45,200
1,906
43,294
51,275
(5,431)
Bank borrowings:
- fixed rate
790
782
254
- floating rate
9,278
9,250
1,115
528
8,135
833
896
893
9,259
8,610
8,565
279
842
614
7,723
947
8,642
(111)
685
-
-
-
-
-
70
70
-
70
70
(70)
10,068
10,032
1,369
8,663
10,092
9,576
9,528
1,121
8,407
9,659
504
1,979
1,979
- floating rate
89
89
Total leases
2,068
2,068
225
22
247
74
66
1,754
1,979
1,856
1,856
67
89
108
108
1,821
2,068
1,964
1,964
565
113
630
160
792
86
822
69
257
18
275
92
15
1,599
1,856
90
108
1,689
1,964
730
54
811
75
123
(19)
104
(183)
110
607
191
639
179
798
818
140
678
790
878
891
107
784
886
(73)
40,267
39,636
1,594
38,042
46,665
45,314
44,523
2,249
42,274
50,481
(4,887)
13,108
13,051
1,574
11,477
13,273
13,149
13,060
1,160
11,900
13,303
(9)
TOTAL
53,375
52,687
3,168
49,519
59,938
58,463
57,583
3,409
54,174
63,784
(4,896)
333
- use of revolving
credit lines
Total bank
borrowings
Leases:
- fixed rate
Other non-bank
borrowings:
- fixed rate
- floating rate
Total other non-
bank borrowings
Total fixed-rate
borrowings
Total floating-rate
borrowings
Integrated Annual Report 2020
The table below reports long-term financial debt by curren-
cy and interest rate.
LONG-TERM FINANCIAL DEBT BY CURRENCY AND INTEREST RATE
Millions of euro
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Russian ruble
Other currencies
Carrying
amount
Nominal value
Carrying
amount
Nominal value
Current
average
nominal
interest rate
Current
effective
interest rate
at Dec. 31, 2020
at Dec. 31, 2019
at Dec. 31, 2020
25,581
18,500
3,955
1,283
1,832
328
368
388
281
171
26,089
18,589
3,998
1,283
1,864
329
374
388
286
175
27,272
20,103
4,354
1,381
2,412
419
414
426
225
577
30,311
57,583
27,915
20,239
4,394
1,381
2,458
419
421
426
227
583
30,548
58,463
2.2%
4.5%
5.1%
6.8%
5.3%
1.8%
4.9%
5.8%
7.1%
2.6%
4.7%
5.3%
6.8%
5.3%
1.8%
5.0%
5.8%
7.1%
Total non-euro currencies
TOTAL
27,106
52,687
27,286
53,375
Long-term financial debt denominated in currencies other
butable to the positive effect of the exchange rates of the
than the euro decreased by €3,205 million, largely attri-
main currencies.
CHANGE IN THE NOMINAL VALUE OF LONG-TERM DEBT
Millions of euro
Nominal value
Repayments
Change in the
consolidation
scope
New issues
Other changes
Exchange
differences
Bonds
Borrowings
- of which leases
Total financial debt
at Dec. 31,
2019
46,045
12,418
1,964
58,463
(2,109)
(1,638)
(208)
(3,747)
-
(389)
-
(389)
668
3,256
441
3,924
(1,797)
(48)
-
(2,366)
(665)
(129)
(1,845)
(3,031)
Nominal value
at Dec. 31,
2020
40,441
12,934
2,068
53,375
The nominal value of long-term debt amounted to €53,375
instruments regarded their maturity, which was transfor-
million at December 31, 2020, a decrease of €5,088 million
med from fixed to perpetual, which means that they will be
compared with December 31, 2019. The increase in debt
redeemed only in the event of liquidation. As a result, those
deriving from new issues of €3,924 million was easily offset
bonds are no longer recognized as debt instruments but as
by reductions associated with repayments in the amount
equity instruments.
of €3,747 million, exchange gains of €3,031 million, the
deconsolidation of the debt of a number of South African
Repayments in 2020 concerned bonds in the amount of
companies in the amount of €389 million (that amount is
€2,109 million and borrowings totaling €1,638 million.
net of new issues in 2020 by the deconsolidated compa-
nies) and other changes in debt totaling €1,845 million.
More specifically, the main bonds maturing in 2020 inclu-
This value includes €1,797 million reflecting the accounting
ded:
effects of the consent solicitation directed at the holders
› €410 million in respect of a fixed-rate hybrid bond issued
of three non-convertible subordinated hybrid bonds deno-
by Enel SpA, maturing in January 2020;
minated in euros in order to align their features with those
› €100 million in respect of a fixed-rate bond issued by
of new issues. More specifically, the main change to those
Enel Finance International, maturing in January 2020;
334334
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements › €482 million in respect of a fixed-rate bond issued by
› €150 million in respect of a floating-rate loan of Enel SpA;
Enel Finance International, maturing in March 2020;
› €182 million in respect of loan repayments by Endesa;
› the equivalent of €93 million in respect of a fixed-rate
› €285 million in respect of loans linked to the achievement
bond in Swiss francs issued by Enel Finance International,
of sustainability goals of the Group’s Italian companies;
maturing in June 2020;
› the equivalent of €585 million associated with Latin
› the equivalent of €438 million in respect of a fixed-rate
American companies.
bond in pounds sterling issued by Enel SpA, maturing in
September 2020;
New borrowing carried out in 2020 involved bonds in the
› the equivalent of €274 million in respect of a fixed-rate
amount of €668 million and borrowings of €3,256 million
hybrid bond in pounds sterling repurchased early by Enel
(both translated at the exchange rates prevailing at the is-
SpA in September 2020;
sue date).
› the equivalent of €286 million in respect of bonds issued
by the Latin American companies.
The table below shows the main characteristics of the most
significant financial transactions involving bond issues and
The main repayments of borrowings in the year included
bank borrowings carried out in 2020 and translated into eu-
the following:
ros at the exchange rate prevailing at December 31, 2020.
Issuer/Borrower
Issue/Grant
date
Amount in
millions of euro
Currency
Interest rate
Interest rate
type
Maturity
Bonds
Total bonds
Bank borrowings
Total bank
borrowings
Enel Finance
International
20.10.2020
Codensa
25.08.2020
Codensa
25.08.2020
Enel SpA
26.10.2020
Enel SpA
27.11.2020
Enel Finance
America
21.01.2020
Endesa
20.04.2020
e-distribuzione
30.03.2020
Dolores Wind SA
de Cv
Enel Distribuição São
Paulo
09.03.2020
17.04.2020
Enel Rus Wind Kola
27.03.2020
Endesa
01.09.2020
Parque Amistad IV
SA de Cv
EGP Magdalena Solar
SA de Cv
Enel Distribuição
Ceará
Enel Distribuição
Goiás
Enel Distribuição Rio
de Janeiro
09.03.2020
09.03.2020
07.01.2020
06.03.2020
23.12.2020
557
60
60
677
500
500
277
300
250
57
71
39
35
33
33
30
27
32
2,184
GBP
COP
COP
EUR
EUR
USD
EUR
EUR
USD
USD
1.00%
Fixed rate
20.10.2027
CPI + 2.5%
Floating rate
25.08.2027
4.700%
Fixed rate
25.08.2024
Euribor 6M
+ 1%
Euribor 6M
+ 1%
LIBOR 6M +
1.3%
Euribor 3M +
0.7%
Euribor 6M +
0.42%
LIBOR 6 M +
1.4%
Floating rate
15.10.2026
Floating rate
15.10.2026
Floating rate
20.11.2026
Floating rate
19.04.2022
Floating rate
30.03.2035
Floating rate
15.01.2027
2.96%
Fixed rate
19.04.2021
RUB OFZ 3Y+ 1.55%
Floating rate
26.02.2034
EUR
USD
USD
USD
USD
USD
Euribor 6M +
0.51%
LIBOR 6 M +
1.4%
LIBOR 6 M +
1.4%
Floating rate
03.09.2035
Floating rate
15.01.2027
Floating rate
15.01.2027
2.1%
Fixed rate
07.01.2021
1.8%
Fixed rate
08.03.2021
1.4%
Fixed rate
23.12.2022
335
Integrated Annual Report 2020 The Group’s main long-term financial liabilities are gover-
be repaid in the event of the dissolution or liquidation of
ned by covenants that are commonly adopted in interna-
the Company, can be summarized as follows:
tional business practice. These liabilities primarily regard
› subordination clauses, under which each hybrid bond is
the bond issues carried out within the framework of the
subordinate to all other bonds issued by the company
Global/Euro Medium-Term Notes program, issues of su-
and has the same seniority with all other hybrid financial
bordinated unconvertible hybrid bonds (so-called “hybrid
instruments issued, being senior only to equity instru-
bonds”) and loans granted by banks and other financial
ments;
institutions (including the European Investment Bank and
› prohibition on mergers with other companies, the sale or
Cassa Depositi e Prestiti SpA).
leasing of all or a substantial part of the company’s as-
sets to another company, unless the latter succeeds in all
The main covenants regarding bond issues carried out within
obligations of the issuer.
the framework of the Global/Euro Medium-Term Notes pro-
gram of (i) Enel and Enel Finance International NV (including
The main covenants envisaged in the loan contracts of Enel
the green bonds of Enel Finance International NV guaranteed
and Enel Finance International NV and the other Group
by Enel SpA, which are used to finance the Group’s so-called
companies, including the sustainability-linked loan facili-
eligible green projects) and those regarding bonds issued by
ty agreements obtained by Enel in 2019 and 2020, can be
Enel Finance International NV on the US market guaranteed
summarized as follows:
by Enel SpA can be summarized as follows:
› negative pledge clauses, under which the borrower and,
› negative pledge clauses under which the issuer and the
in some cases, the guarantor are subject to limitations on
guarantor may not establish or maintain mortgages, liens
the establishment of mortgages, liens or other encum-
or other encumbrances on all or part of its assets or reve-
brances on all or part of their respective assets, with the
nue to secure certain financial liabilities, unless the same
exception of expressly permitted encumbrances;
encumbrances are extended equally or pro rata to the
› disposals clauses, under which the borrower and, in
bonds in question;
some cases, the guarantor may not dispose of their as-
› pari passu clauses, under which the bonds and the as-
sets or operations, with the exception of expressly per-
sociated security constitute a direct, unconditional and
mitted disposals;
unsecured obligation of the issuer and the guarantor and
› pari passu clauses, under which the payment undertakin-
are issued without preferential rights among them and
gs of the borrower have the same seniority as its other
have at least the same seniority as other present and fu-
unsecured and unsubordinated payment obligations;
ture unsubordinated and unsecured bonds of the issuer
› change of control clauses, under which the borrower
and the guarantor;
and, in some cases, the guarantor could be required to
› cross-default clauses, under which the occurrence of a
renegotiate the terms and conditions of the financing or
default event in respect of a specified financial liability
make compulsory early repayment of the loans granted;
(above a threshold level) of the issuer, the guarantor or, in
› rating clauses, which provide for the borrower or the
some cases, “significant” subsidiaries, constitutes a de-
guarantor to maintain their rating above a certain spe-
fault in respect of the liabilities in question, which beco-
cified level;
me immediately repayable.
› cross-default clauses, under which the occurrence of a
Since 2019, Enel Finance International NV has issued a
default event in respect of a specified financial liability
number of “sustainable” bonds on the European market (as
(above a threshold level) of the issuer or, in some cases,
part of the Euro Medium Term Notes - EMTN bond issue
the guarantor constitutes a default in respect of the liabi-
program) and on the American market, both guaranteed
lities in question, which become immediately repayable.
by Enel SpA, linked to the achievement of a number of the
In some cases the covenants are also binding for the signi-
Sustainable Development Goals (SDGs) of the United Na-
ficant companies or subsidiaries of the obligated parties. All
tions that contain the same covenants as other bonds of
the borrowings considered specify “events of default” typi-
the same type.
cal of international business practice, such as, for example,
insolvency, bankruptcy proceedings or the entity ceases
The main covenants covering Enel’s hybrid bonds, including
trading.
the perpetual hybrid bond issues in September, which will
In addition, the guarantees issued by Enel in the interest
336336
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements of e-distribuzione SpA for certain loans to e-distribuzione
(notably Enel Generación Chile SA) contain covenants and
SpA from Cassa Depositi e Prestiti SpA require that at the
events of default typical of international business practice,
end of each six-month measurement period that Enel’s net
which had all been complied with as at December 31, 2020.
consolidated financial debt shall not exceed 4.5 times an-
nual consolidated EBITDA.
The following table reports the impact on gross long-term
Finally, the debt of Endesa SA, Enel Américas SA, Enel Chile
debt of hedges to mitigate currency risk.
SA and the other Spanish and Latin American subsidiaries
LONG-TERM FINANCIAL DEBT BY CURRENCY AFTER HEDGING
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Initial debt structure
Impact of
hedge
Debt structure
after hedging
Initial debt structure
Impact of
hedge
Debt structure
after hedging
Carrying
amount
Nominal
value
%
Carrying
amount
Nominal
value
%
Euro
US dollar
25,581
26,089
48.9%
18,423
44,512
83.4%
27,272
27,915
47.8%
20,218 48,133
82.3%
18,500
18,589
34.8%
(14,955)
3,634
6.8%
20,103
20,239
34.6%
(16,445)
3,794
6.5%
Pound sterling
3,955
3,998
7.5%
(3,998)
-
-
4,354
4,394
7.5%
(4,394)
-
-
Colombian
peso
Brazilian real
Swiss franc
Chilean peso/
UF
Peruvian sol
Russian ruble
Other
currencies
Total non-euro
currencies
1,283
1,832
328
368
388
281
1,283
1,864
329
374
388
286
2.4%
3.5%
0.6%
0.7%
0.7%
0.5%
-
1,283
794
2,658
(329)
-
-
-
-
374
388
286
2.4%
5.0%
-
0.7%
0.7%
0.5%
1,381
2,412
419
414
426
225
1,381
2,458
419
421
426
227
2.4%
4.2%
0.7%
0.7%
0.7%
0.4%
-
1,381
968
3,426
(419)
-
-
-
-
421
426
227
2.4%
5.9%
-
0.7%
0.7%
0.4%
171
175
0.4%
65
240
0.5%
577
583
1.0%
72
655
1.1%
27,106
27,286
51.1%
(18,423)
8,863
16.6%
30,311
30,548
52.2%
(20,218) 10,330
17.7%
TOTAL
52,687
53,375 100.0%
-
53,375
100.0%
57,583
58,463 100.0%
- 58,463 100.0%
The amount of floating-rate debt that is not hedged
the income statement (raising borrowing costs) in the event
against interest rate risk is a risk factor that could impact
of an increase in market interest rates.
Millions of euro
2020
2019
Pre-hedge
%
Post-hedge
%
Pre-hedge
%
Post-hedge
Floating rate
Fixed rate
Total
19,458
40,267
59,725
32.6%
67.4%
13,672
46,053
59,725
22.9%
77.1%
17,113
45,314
62,427
27.4%
72.6%
12,208
50,219
62,427
%
19.6%
80.4%
At December 31, 2020, 32.6% of financial debt was floa-
accounting, the percentage of net financial debt hedged
ting rate (27.4% at December 31, 2019). Taking account of
at December 31, 2020 was unchanged compared with the
hedges of interest rates considered effective pursuant to
previous year.
the IFRS-EU, 22.9% of net financial debt at December 31,
2020 (19.6% at December 31, 2019) was exposed to inte-
These results are in line with the limits established in the
rest rate risk. Including interest rate derivatives treated as
risk management policy.
hedges for management purposes but ineligible for hedge
337
Integrated Annual Report 2020 44.3.2 Short-term borrowings - €6,345 million
€6,345 million, an increase of €2,428 million on December
At December 31, 2020 short-term borrowings amounted to
31, 2019. They break down as follows.
Millions of euro
Short-term bank borrowings
Commercial paper
Cash collateral and other financing on derivatives
Other short-term borrowings (1)
Short-term borrowings
at Dec. 31, 2020
at Dec. 31, 2019
Change
711
4,854
370
410
6,345
579
2,284
750
304
3,917
132
2,570
(380)
106
2,428
(1) Does not include current financial borrowings included in other current financial liabilities.
Commercial paper amounted to €4,854 million, issued by
als and at December 31, 2020 these issues totaled €3,901
Enel Finance International, Enel Finance America and En-
million.
desa.
The main commercial paper programs include:
› €6,000 million of Enel Finance International;
44.4 Derivative financial liabilities
For more information on derivative financial liabilities, plea-
› €4,000 million of Endesa;
se see note 47 “Derivatives and hedge accounting”.
› $3,000 million (equivalent to €2,445 million at December
31, 2020) of Enel Finance America.
During 2020 Enel Finance International and Endesa structu-
44.5 Net gains and losses
The following table shows net gains and losses by category of
red commercial paper programs linked to sustainability go-
financial instruments, excluding derivatives.
Millions of euro
2020
2019
Financial assets at amortized cost
(1,326)
(1,334)
(525)
(1,137)
Net gain/(loss)
Of which impairment
loss/gain
Net gain/(loss)
Of which impairment
loss/gain
-
-
-
(346)
-
(346)
-
-
-
-
1
5
6
177
-
177
(3,514)
-
-
-
-
-
-
(23)
-
(23)
-
-
-
-
Financial assets at FVOCI
Equity investments at FVOCI
Other financial assets at FVOCI
Total financial assets at FVOCI
Financial assets at FVTPL
Financial assets at FVTPL
Financial assets designated upon initial
recognition (fair value option)
Total financial assets at FVTPL
Financial liabilities measured at amortized
cost
Financial liabilities at FVTPL
Financial liabilities held for trading
Financial liabilities designated upon initial
recognition (fair value option)
Total financial liabilities at FVTPL
1
6
7
(125)
-
(125)
(1,385)
-
-
-
For more details on net gains and losses on derivatives,
please see note 12 “Net financial income/(expense) from
derivatives”.
338338
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 45. Risk management
Financial risk management governance and
objectives
As part of its operations, the Enel Group is exposed to a va-
riety of financial risks, notably interest rate risk, commodity
risk, currency risk, credit and counterparty risk and liquidity
risk.
As noted in the section “Risk management” in the Report
on Operations, the Group’s governance arrangements for
financial risks include internal committees and the establi-
shment of specific policies and operational limits. Enel’s
primary objective is to mitigate financial risks appropriately
so that they do not give rise to unexpected changes in re-
sults.
The Group’s policies for managing financial risks provide
for the mitigation of the effects on performance of chan-
ges in interest rates and exchange rates with the exclusion
of translation risk (connected with consolidation of the ac-
counts). This objective is achieved at the source of the risk,
through the diversification of both the nature of the finan-
cial instruments and the sources of revenue, and by modi-
fying the risk profile of specific exposures with derivatives
entered into on over-the-counter markets or with specific
commercial agreements.
As part of its governance of financial risks, Enel regularly
monitors the size of the OTC derivatives portfolio in rela-
tion to the threshold values set by regulators for the acti-
vation of clearing obligations (EMIR - European Market
Infrastructure Regulation no. 648/2012 of the European
Parliament and of the Council). During 2020, no overshoot
of those threshold values was detected.
There were no changes in the sources of exposure to such
risks compared with the previous year.
Finally, the impact of COVID-19 on risk management is-
sues was limited and in any case not such as to directly and
materially influence the valuation of derivative instruments
and the outcome of the assessment of the effectiveness of
hedges of exchange rates, interest rates and commodities.
The financial underlyings were not affected by the adverse
impact of COVID-19 either, and no changes were recorded
in the exposures.
Interest rate risk
Interest rate risk derives primarily from the use of financial
instruments and manifests itself as unexpected changes in
charges on financial liabilities, if indexed to floating rates
and/or exposed to the uncertainty of financial terms and
conditions in negotiating new debt instruments, or as an
unexpected change in the value of financial instruments
measured at fair value (such as fixed-rate debt).
The main financial liabilities held by the Group include
bonds, bank borrowings, borrowings from other lenders,
commercial paper, derivatives, cash deposits received to
secure commercial or derivative contracts (guarantees,
cash collateral).
The Enel Group mainly manages interest rate risk through
the definition of an optimal financial structure, with the dual
goal of stabilizing borrowing costs and containing the cost
of funds.
This goal is pursued through the diversification of the por-
tfolio of financial liabilities by contract type, maturity and
interest rate, and modifying the risk profile of specific
exposures using OTC derivatives, mainly interest rate swaps
and interest rate options. The term of such derivatives does
not exceed the maturity of the underlying financial liability,
so that any change in the fair value and/or expected cash
flows of such contracts is offset by a corresponding change
in the fair value and/or cash flows of the hedged position.
Proxy hedging techniques can be used in a number of re-
sidual circumstances, when the hedging instruments for
the risk factors are not available on the market or are not
sufficiently liquid.
For the purpose of EMIR compliance, in order to test the
actual effectiveness of the hedging techniques adopted,
the Group subjects its hedge portfolios to periodic stati-
stical assessment.
Using interest rate swaps, the Enel Group agrees with the
counterparty to periodically exchange floating-rate interest
flows with fixed-rate flows, both calculated on the same
notional principal amount.
Floating-to-fixed interest rate swaps transform floating-ra-
te financial liabilities into fixed rate liabilities, thereby neu-
tralizing the exposure of cash flows to changes in interest
rates.
Fixed-to-floating interest rate swaps transform fixed rate
financial liabilities into floating-rate liabilities, thereby neu-
tralizing the exposure of their fair value to changes in inte-
rest rates.
Floating-to-floating interest rate swaps transform the in-
dexing criteria for floating-rate financial liabilities.
Some structured borrowings have multi-stage cash flows
hedged by interest rate swaps that at the reporting date,
and for a limited time, provide for the exchange of fixed-ra-
te interest flows.
Interest rate options involve the exchange of interest diffe-
rences calculated on a notional principal amount once cer-
tain thresholds (strike prices) are reached. These thresholds
specify the effective maximum rate (cap) or the minimum
rate (floor) to which the synthetic financial instrument will
be indexed as a result of the hedge. Certain hedging stra-
tegies provide for the use of combinations of options (col-
lars) that establish the minimum and maximum rates at the
339
Integrated Annual Report 2020 same time. In this case, the strike prices are normally set so
of greater uncertainty about future interest rate develop-
that no premium is paid on the contract (zero cost collars).
ments because they make it possible to benefit from any
Such contracts are normally used when the fixed interest
decrease in interest rates.
rate that can be obtained in an interest rate swap is con-
The following table reports the notional amount of interest
sidered too high with respect to market expectations for
rate derivatives at December 31, 2020 and December 31,
future interest rate developments. In addition, interest rate
2019 broken down by type of contract.
options are also considered most appropriate in periods
Millions of euro
Notional amount
Floating-to-fixed interest rate swaps
Fixed-to-floating interest rate swaps
Fixed-to-fixed interest rate swaps
Floating-to-floating interest rate swaps
Interest rate options
Total
2020
7,323
173
-
276
50
7,822
2019
7,932
152
-
327
50
8,461
For more details on interest rate derivatives, please see
the financial expense associated with unhedged gross debt.
note 47 “Derivatives and hedge accounting”.
These market scenarios are obtained by simulating parallel
increases and decreases in the yield curve as at the repor-
Interest rate risk sensitivity analysis
ting date.
Enel analyzes the sensitivity of its exposure by estimating
There were no changes introduced in the methods and as-
the effects of a change in interest rates on the portfolio of
sumptions used in the sensitivity analysis compared with
financial instruments.
the previous year.
More specifically, sensitivity analysis measures the potential
With all other variables held constant, the Group’s pre-tax
impact on profit or loss and on equity of market scenarios
profit would be affected by a change in the level of interest
that would cause a change in the fair value of derivatives or in
rates as follows.
Millions of euro
2020
Change in financial expense on gross long-term floating-
rate debt after hedging
Change in fair value of derivatives classified as non-
hedging instruments
Change in fair value of derivatives designated as hedging
instruments
Cash flow hedges
Fair value hedges
Pre-tax impact on profit or loss
Pre-tax impact on equity
Basis points
Increase
Decrease
Increase
Decrease
25
25
25
25
18
6
-
-
(18)
(6)
-
-
-
-
112
-
-
-
(112)
-
340340
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements At December 31, 2020, 24.6% (22.5% at December 31, 2019)
ments include cross currency interest rate swaps, currency
of gross long-term financial debt was floating rate. Taking
forwards and currency swaps. The term of such contracts
account of effective cash flow hedges of interest rate risk
does not exceed the maturity of the underlying instrument,
(in accordance with the provisions of the IFRS-EU), 86.3%
so that any change in the fair value and/or expected cash
of gross long-term financial debt was hedged at December
flows of such instruments offsets the corresponding chan-
31, 2020 (85.9% at December 31, 2019).
ge in the fair value and/or cash flows of the hedged posi-
tion.
Currency risk
Cross currency interest rate swaps are used to transform a
Currency risk mainly manifests itself as unexpected chan-
long-term financial liability denominated in currency other
ges in the financial statement items associated with tran-
than the presentation currency into an equivalent liability in
sactions denominated in a currency other than the pre-
the presentation currency.
sentation currency. The Group’s consolidated financial
Currency forwards are contracts in which the counter-
statements are also exposed to translation risk as a result
parties agree to exchange principal amounts denomina-
of the conversion of the financial statements of foreign
ted in different currencies at a specified future date and
subsidiaries, which are denominated in local currencies,
exchange rate (the strike). Such contracts may call for the
into euros as the Group’s presentation currency.
actual exchange of the two principal amounts (deliverable
The Group’s exposure to currency risk is connected with
forwards) or payment of the difference generated by diffe-
the purchase or sale of fuels and power, investments (cash
rences between the strike exchange rate and the prevai-
flows for capitalized costs), dividends and the purchase or
ling exchange rate at maturity (non-deliverable forwards).
sale of equity investments, commercial transactions and fi-
In the latter case, the strike rate and/or the spot rate can
nancial assets and liabilities.
be determined as averages of the rates observed in a given
The Group policies for managing currency risk provide for
period.
the mitigation of the effects on profit or loss of changes in
Currency swaps are contracts in which the counterparties
the level of exchange rates, with the exception of the tran-
enter into two transactions of the opposite sign at different
slation effects connected with consolidation.
future dates (normally one spot, the other forward) that
In order to minimize the exposure to currency risk, Enel im-
provide for the exchange of principal denominated in dif-
plements diversified revenue and cost sources geographi-
ferent currencies.
cally, and uses indexing mechanisms in commercial con-
tracts. Enel also uses various types of derivative, typically
The following table reports the notional amount of tran-
on the OTC market.
sactions outstanding at December 31, 2020 and December
The derivatives in the Group’s portfolio of financial instru-
31, 2019, broken down by type of hedged item.
Millions of euro
Notional amount
Cross currency interest rate swaps (CCIRSs) hedging debt denominated in
currencies other than the euro
Currency forwards hedging currency risk on commodities
Currency forwards/swaps hedging future cash flows in currencies other than
the euro
Other currency forwards
Total
2020
20,636
5,469
3,971
990
31,066
2019
22,756
4,291
4,760
1,488
33,295
More specifically, these include:
› other currency forwards include OTC derivatives tran-
› CCIRSs with a notional amount of €20,636 million to he-
sactions carried out to mitigate currency risk on expected
dge the currency risk on debt denominated in curren-
cash flows in currencies other than the presentation cur-
cies other than the euro (€22,756 million at December
rency connected with the purchase of investment goods
31, 2019);
in the renewables and infrastructure and networks sec-
› currency forwards with a total notional amount of €9,440
tors (new generation digital meters), on operating costs
million used to hedge the currency risk associated with
for the supply of cloud services and on revenue from the
purchases of natural gas and fuel and expected cash
sale of renewable energy.
flows in currencies other than the euro (€9,051 million at
December 31, 2019);
At December 31, 2020, 51% (52% at December 31, 2019)
341
Integrated Annual Report 2020 of Group long-term debt was denominated in currencies
would cause a change in the fair value of derivatives or in
other than the euro.
the financial expense associated with unhedged gross me-
Taking account of hedges of currency risk, the percentage
dium/long-term debt.
of debt not hedged against that risk amounted to 17% at
These scenarios are obtained by simulating the apprecia-
December 31, 2020 (18% at December 31, 2019).
tion/depreciation of the euro against all of the currencies
compared with the value observed as at the reporting date.
Currency risk sensitivity analysis
There were no changes in the methods or assumptions
The Group analyses the sensitivity of its exposure by esti-
used in the sensitivity analysis compared with the previous
mating the effects of a change in exchange rates on the
year.
portfolio of financial instruments.
With all other variables held constant, the pre-tax profit
More specifically, sensitivity analysis measures the potential
would be affected by changes in exchange rates as follows.
impact on profit or loss and equity of market scenarios that
Millions of euro
Change in fair value of derivatives classified as non-
hedging instruments
Change in fair value of derivatives designated as hedging
instruments
2020
Pre-tax impact
on profit or loss
Pre-tax impact
on equity
Exchange rate
Increase
Decrease
Increase
Decrease
10%
605
(739)
-
-
Cash flow hedges
Fair value hedges
10%
10%
-
(53)
-
65
(2,968)
-
3,626
-
Commodity price risk
the strike price and to Enel in the opposite case. The resi-
The risk of fluctuations in the price of energy commodities
such as electricity, gas, oil, CO2, etc. is generated by the vo-
latility of prices and structural correlations between them,
dual exposure in respect of the sale of energy on the spot
market not hedged with such contracts is aggregated by
uniform risk factors that can be managed with hedging
which create uncertainty in the margin on purchases and
transactions on the market. Proxy hedging techniques can
sales of electricity and fuels at variable prices (e.g. indexed
be used for the industrial portfolios when the hedging in-
bilateral contracts, transactions on the spot market, etc.).
struments for the specific risk factors generating the expo-
The exposures on indexed contracts are quantified by bre-
sure are not available on the market or are not sufficiently
aking down the contracts that generate exposure into the
liquid. In addition, Enel uses portfolio hedging techniques
underlying risk factors.
to assess opportunities for netting intercompany exposu-
To contain the effects of fluctuations and stabilize margins,
res.
in accordance with the policies and operating limits deter-
The Group mainly uses plain vanilla derivatives for hedging
mined by the Group’s governance and leaving an appro-
(more specifically, forwards, swaps, options on commodi-
priate margin of flexibility to seize any short-term opportu-
ties, futures, contracts for differences).
nities that may present themselves, Enel develops and plans
strategies that impact the various phases of the industrial
process linked to the production and sale of electricity and
Some of these products can be indexed to a variety of un-
derlyings (coal, gas, oil, CO2, different geographical areas,
etc.) and the approaches can be assessed and adapted to
gas (such as forward procurement and long-term commer-
specific needs.
cial agreements), as well as risk mitigation plans and tech-
Enel also engages in proprietary trading in order to main-
niques using derivative contracts (hedging).
tain a presence in the Group’s reference energy commodity
As regards electricity sold by the Group, Enel mainly uses
fixed-price contracts in the form of bilateral physical con-
tracts (PPAs) and financial contracts (e.g. contracts for dif-
markets. These operations consist in taking on exposures
in energy commodities (oil products, gas, coal, CO2 certi-
ficates and electricity) using financial derivatives and phy-
ferences, VPP contracts, etc.) in which differences are paid
sical contracts traded on regulated and over-the-counter
to the counterparty if the market electricity price exceeds
markets, optimizing profits through transactions carried
342342
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements out on the basis of expected market developments.
ding transactions at December 31, 2020 and December 31,
The following table reports the notional amount of outstan-
2019, broken down by type of instrument.
Millions of euro
Notional amount
Forward and futures contracts
Swaps
Options
Embedded
Total
2020
48,064
1,862
576
7
50,509
2019
35,824
5,706
654
68
42,252
For more details, please see note 47 “Derivatives and hedge
the price curve for the main commodities that make up
accounting”.
Sensitivity analysis of commodity risk
The following table presents the results of the analysis of
sensitivity to a reasonably possible change in the com-
modity prices underlying the valuation model used in the
scenario at the same date, with all other variables held con-
the fuel scenario and the basket of formulas used in the
contracts is mainly attributable to the change in the price
of electricity, gas and petroleum products and, to a lesser
extent, of CO2. The impact on equity of the same shifts in
the price curve is primarily due to changes in the price of
electricity, petroleum products and, to a lesser extent, CO2.
The Group’s exposure to changes in the prices of other
stant.
commodities is not material.
The impact on pre-tax profit of shifts of +15% and -15% in
Millions of euro
2020
Pre-tax impact on profit or loss
Pre-tax impact on equity
Commodity
price
Increase
Decrease
Increase
Decrease
Change in the fair value of trading derivatives on
commodities
Change in the fair value of derivatives on commodities
designated as hedging instruments
15%
15%
(43)
-
43
-
-
25
-
(25)
Credit and counterparty risk
consolidated exposure is carried out by Enel SpA.
The Group’s commercial, commodity and financial tran-
In addition, at the Group level the policy provides for the
sactions expose it to credit and counterparty risk, i.e. the
use of uniform criteria – in all the main Regions/Countries/
possibility that a deterioration in the creditworthiness of a
Global Business Lines and at the consolidated level – in me-
counterparty that has an adverse impact on the expected
asuring commercial credit exposures in order to promptly
value of the creditor position or, for trade payables only, in-
identify any deterioration in the quality of outstanding re-
crease average collection times.
ceivables and any mitigation actions to be taken.
Accordingly, the exposure to credit risk is attributable to
The policy for managing credit risk associated with com-
the following types of transactions:
mercial activities provides for a preliminary assessment of
› the sale and distribution of electricity and gas in free and
the creditworthiness of counterparties and the adoption of
regulated markets and the supply of goods and services
mitigation instruments, such as obtaining collateral or un-
(trade receivables);
secured guarantees.
› trading activities that involve the physical exchange of
In addition, the Group undertakes transactions to factor re-
assets or transactions in financial instruments (the com-
ceivables without recourse, which results in the complete
modity portfolio);
derecognition of the corresponding assets involved in the
› trading in derivatives, bank deposits and, more generally,
factoring, as the risks and rewards associated with them
financial instruments (the financial portfolio).
have been transferred.
In order to minimize credit risk, credit exposures are ma-
Finally, with regard to financial and commodity transactions,
naged at the Region/Country/Global Business Line level by
risk mitigation is pursued with a uniform system for asses-
different units, thereby ensuring the necessary segregation
sing counterparties at the Group level, including implemen-
of risk management and control activities. Monitoring the
tation at the level of Regions/Countries/Global Business Li-
343
Integrated Annual Report 2020 nes, as well as with the adoption of specific standardized
assessment of the impairment of trade receivables, to date
contractual frameworks that contain risk mitigation clau-
the Group portfolio has displayed resilience to the global
ses (e.g. netting arrangements) and possibly the exchange
pandemic. This reflects the strengthening of digital col-
of cash collateral.
lection channels and a sound diversification of commercial
Despite the deterioration in the collection status of some
customers with a low exposure to the impacts of COVID
customer segments, which was taken into account in the
(e.g. utilities and distribution companies).
LOAN ASSETS
Millions of euro
Staging
Performing
Underperforming
Non-performing
Total
Basis for recognition
of expected credit
loss allowance
12 m ECL
Lifetime ECL
Lifetime ECL
at Dec. 31, 2020
Avg loss rate
(PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
0.9%
25.0%
68.8%
7,088
88
176
7,352
65
22
121
208
CONTRACT ASSETS, TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS: INDIVIDUAL MEASUREMENT
Millions of euro
at Dec. 31, 2020
Avg loss rate
(PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
Contract assets
Trade receivables
Trade receivables not past due
Trade receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total trade receivables
Other financial assets
Other financial assets not past due
Other financial assets past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total other financial assets
TOTAL
344344
4.3%
1.3%
1.5%
2.8%
12.8%
28.0%
12.9%
100.0%
83.8%
3.1%
15.6%
-
-
-
-
40.0%
6.3%
23
4,953
453
106
39
25
31
53
1,692
7,352
1,243
499
11
-
-
-
5
79
1,837
9,212
1
66
7
3
5
7
4
53
1,418
1,563
38
78
-
-
-
-
2
5
123
1,687
Carrying
amount
7,023
66
55
7,144
Carrying
amount
22
4,887
446
103
34
18
27
-
274
5,789
1,205
421
11
-
-
-
3
74
1,714
7,525
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements CONTRACT ASSETS, TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS COLLECTIVE MEASUREMENT
Millions of euro
at Dec. 31, 2020
Avg loss rate
(PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
Contract assets
Trade receivables
Trade receivables not past due
Trade receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total trade receivables
Other financial assets
Other financial assets not past due
Other financial assets past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total other financial assets
TOTAL
Liquidity risk
1.2%
0.6%
7.2%
16.2%
26.4%
36.6%
43.1%
100.0%
100.0%
2.2%
-
-
-
-
-
-
-
163
5,487
554
154
110
71
58
79
1,468
7,981
274
3
1
-
-
-
-
55
333
8,477
2
32
40
25
29
26
25
79
1,468
1,724
6
-
-
-
-
-
-
-
6
1,732
Carrying
amount
161
5,455
514
129
81
45
33
-
-
6,257
268
3
1
-
-
-
-
55
327
6,745
sources of funding on different markets, in different cur-
Liquidity risk manifests itself as uncertainty about the
rencies and with diverse counterparties.
Group’s ability to discharge its obligations associated with
The mitigation of liquidity risk enables the Group to main-
financial liabilities that are settled by delivering cash or
tain a credit rating that ensures access to the capital mar-
another financial asset.
ket and limits the cost of funds, with a positive impact on
Enel manages liquidity risk by implementing measures to
its financial position and performance.
ensure an appropriate level of liquid financial resources,
minimizing the associated opportunity cost and maintai-
In order to respond to any exceptional circumstances that
ning a balanced debt structure in terms of its maturity pro-
might arise in the context of the COVID-19 emergency, in
file and funding sources.
2020 the Group decided to further increase its already lar-
In the short term, liquidity risk is mitigated by maintaining
ge and robust level of liquid financial resources available by
an appropriate level of unconditionally available resources,
expanding its committed credit lines and commercial pa-
including liquidity on hand and short-term deposits, avai-
per programs.
lable committed credit lines and a portfolio of highly liquid
assets.
The Group holds the following undrawn lines of credit and
In the long term, liquidity risk is mitigated by maintaining a
commercial paper programs.
balanced maturity profile for our debt, access to a range of
345
Integrated Annual Report 2020 Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Committed credit lines
Uncommitted credit lines
Commercial paper
Total
Maturity analysis
Expiring within
one year
Expiring beyond
one year
Expiring within
one year
Expiring beyond
one year
4,028
802
7,591
12,421
14,531
-
-
14,531
215
927
9,627
10,769
15,461
-
-
15,461
The table below summarizes the maturity profile of the
Group’s long-term debt.
Millions of euro
Maturing in
Less than 3
months
From 3 months
to 1 year
2022
2023
2024
2025
Beyond
Bonds:
- listed, fixed rate
- listed, floating rate
- unlisted, fixed rate
- unlisted, floating rate
Total bonds
Bank borrowings:
- fixed rate
- floating rate
- use of revolving
credit lines
Total bank borrowings
Leases:
- fixed rate
- floating rate
Total leases
Other non-bank
borrowings:
- fixed rate
- floating rate
Total other non-bank
borrowings
TOTAL
175
-
-
-
175
69
181
-
250
62
5
67
21
44
65
557
866
260
-
111
1,237
185
934
-
1,119
163
17
180
53
22
75
2,256
437
1,677
97
4,467
233
944
-
1,177
194
15
209
63
24
87
2,611
5,940
2,085
580
2,032
97
4,794
63
713
-
776
159
13
172
90
17
4,595
397
1,217
97
6,306
32
722
-
754
121
13
134
130
14
107
5,849
144
7,338
3,408
308
1,213
97
5,026
32
683
-
715
115
13
128
24
19
43
9,667
818
7,045
234
17,764
168
5,073
-
5,241
1,165
13
1,178
258
39
297
5,912
24,480
Commitments to purchase commodities
own use exemption provided for under IFRS 9.
In conducting its business, the Enel Group has entered into
The following table reports the undiscounted cash flows
contracts to purchase specified quantities of commodities
associated with outstanding commitments at December
at a certain future date for its own use, which qualify for the
31, 2020.
Millions of euro
Commitments to purchase commodities:
- electricity
- fuels
Total
346346
at Dec. 31,
2020
67,400
41,855
109,255
2021-2024
2025-2029
2030-2034
Beyond
19,058
21,207
40,265
15,730
12,855
28,585
13,273
5,832
19,105
19,339
1,961
21,300
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 46. Offsetting financial assets and financial
liabilities
At December 31, 2020, the Group did not hold offset po-
tionship and the hedged risk, broken down into current and
non-current instruments.
sitions in assets and liabilities, as it is not the Enel Group’s
The notional amount of a derivative contract is the amount
policy to settle financial assets and liabilities on a net basis.
on the basis of which cash flows are exchanged. This
amount can be expressed as a value or a quantity (for
47. Derivatives and hedge accounting
The following tables show the notional amount and the fair
example tons, converted into euros by multiplying the no-
tional amount by the agreed price). Amounts denominated
value of derivative financial assets and derivative finan-
in currencies other than the euro are translated at the offi-
cial liabilities eligible for hedge accounting or measured a
cial closing exchange rates provided by the World Markets
FVTPL, classified on the basis of the type of hedge rela-
Refinitiv (WMR) Company.
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
DERIVATIVE ASSETS
Fair value hedge
derivatives:
- on interest rates
- on exchange rates
Total
Cash flow hedge
derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
TOTAL DERIVATIVE
ASSETS
138
639
777
161
5,061
2,541
7,763
50
71
379
500
12
166
178
335
11,705
1,628
22
28
50
21
685
428
13,668
1,134
50
-
322
372
2
4
46
52
7
25
32
26
1,081
215
1,322
2
-
27
29
-
79
79
-
698
2,165
2,863
-
3,430
21,424
-
-
-
133
2,717
3,081
5,931
-
3,399
17,203
24,854
20,602
-
28
28
-
51
627
678
-
79
2,686
2,765
-
-
-
-
132
847
979
-
34
3,052
3,086
9,040
14,218
1,236
1,383
27,796
26,533
3,471
4,065
347
Integrated Annual Report 2020 Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
DERIVATIVE LIABILITIES
Fair value hedge
derivatives:
- on exchange rates
Total
Cash flow hedge
derivatives:
- on interest rates
- on exchange rates
- on commodities
-
-
5
5
7,201
16,310
1,535
7,704
11,049
601
Total
25,046
19,354
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
TOTAL DERIVATIVE
LIABILITIES
50
28
89
167
62
2
154
218
-
-
938
2,491
148
3,577
4
3
22
29
1
1
779
1,560
47
2,386
6
-
14
20
-
-
-
-
122
3,766
1,466
5,354
100
984
20,910
21,994
65
2,573
1,613
4,251
100
1,679
17,650
19,429
-
-
2
263
379
644
88
41
2,758
2,887
-
-
1
115
457
573
79
38
2,864
2,981
25,213
19,577
3,606
2,407
27,348
23,680
3,531
3,554
47.1 Derivatives designated as hedging instruments
Derivatives are initially recognized at fair value, on the tra-
arising from financial instruments to which the Group is
exposed, please see note 45 “Risk management”.
de date of the contract and are subsequently re-measured
To be effective a hedging relationship shall meet all of the
at their fair value. The method of recognizing the resulting
following criteria:
gain or loss depends on whether the derivative is designa-
› existence of an economic relationship between hedging
ted as a hedging instrument, and if so, the nature of the
instrument and hedged item;
item being hedged.
› the effect of credit risk does not dominate the value
Hedge accounting is applied to derivatives entered into in
changes resulting from the economic relationship;
order to reduce risks such as interest rate risk, currency
› the hedge ratio defined at initial designation shall be
risk, commodity price risk and net investments in foreign
equal to the one used for risk management purposes (i.e.
operations when all the criteria provided by IFRS 9 are met.
same quantity of the hedged item that the entity actually
At the inception of the transaction, the Group documents
hedges and the quantity of the hedging instrument that
the relationship between hedging instruments and hedged
the entity actually uses to hedge the quantity of the he-
items, as well as its risk management objectives and strate-
dged item).
gy. The Group also documents its assessment, both at hed-
Based on the IFRS 9 requirements, the existence of an
ge inception and on an ongoing basis, of whether hedging
economic relationship is evaluated by the Group through a
instruments are highly effective in offsetting changes in fair
qualitative assessment or a quantitative computation, de-
values or cash flows of hedged items.
pending on the following circumstances:
For cash flow hedges of forecast transactions designated
› if the underlying risk of the hedging instrument and the
as hedged items, the Group assesses and documents that
hedged item is the same, the existence of an economic
they are highly probable and present an exposure to chan-
relationship will be provided through a qualitative analysis;
ges in cash flows that affect profit or loss.
› on the other hand, if the underling risk of the hedging
Depending on the nature of the risk exposure, the Group
instrument and the hedged item is not the same, the exi-
designates derivatives as either:
› fair value hedges;
› cash flow hedges.
stence of the economic relationship will be demonstra-
ted through a quantitative method in addition to a quali-
tative analysis of the nature of the economic relationship
For more details about the nature and the extent of risks
(i.e. linear regression).
348348
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements In order to demonstrate that the behavior of the hedging
Fair value hedges
instrument is in line with those of the hedged item, diffe-
Fair value hedges are used to protect the Group against
rent scenarios will be analyzed.
exposures to changes in the fair value of assets, liabilities or
For hedging of commodity price risk, the existence of an
firm commitment attributable to a particular risk that could
economic relationship is deduced from a ranking matrix
affect profit or loss.
that defines, for each possible risk component a set of all
Changes in fair value of derivatives that qualify and are
standard derivatives available in the market whose ranking is
designated as hedging instruments are recognized in the
based on their effectiveness in hedging the considered risk.
income statement, together with changes in the fair value
In order to evaluate the credit risk effects, the Group con-
of the hedged item that are attributable to the hedged risk.
siders the existence of risk mitigating measures (collateral,
If the hedge no longer meets the criteria for hedge accoun-
mutual break-up clauses, netting agreements, etc.).
ting, the adjustment to the carrying amount of a hedged
item for which the effective interest rate method is used is
The Group has established a hedge ratio of 1:1 for all the
amortized to profit or loss over the period to maturity.
hedging relationships (including commodity price risk he-
dging) as the underlying risk of the hedging derivative is
Cash flow hedges
identical to the hedged risk, in order to minimize hedging
Cash flow hedges are applied in order to hedge the Group
ineffectiveness.
exposure to changes in future cash flows that are attribu-
The hedge ineffectiveness will be evaluated through a qua-
table to a particular risk associated with a recognized asset
litative assessment or a quantitative computation, depen-
or liability or a highly probable transaction that could affect
ding on the following circumstances:
profit or loss.
› if the critical terms of the hedged item and hedging in-
The effective portion of changes in the fair value of deriva-
strument match and there are no other sources of inef-
tives that are designated and qualify as cash flow hedges
fectiveness included the credit risk adjustment on the
is recognized in other comprehensive income. The gain or
hedging derivative, the hedge relationship will be consi-
loss relating to the ineffective portion is recognized imme-
dered fully effective on the basis of a qualitative asses-
diately in the income statement.
sment;
Amounts accumulated in equity are reclassified to profit
› if the critical terms of the hedged item and hedging in-
or loss in the periods when the hedged item affects profit
strument do not match or there is at least one source of
or loss (for example, when the hedged forecast sale takes
ineffectiveness, the hedge ineffectiveness will be quan-
place).
tified applying the dollar offset cumulative method with
If the hedged item results in the recognition of a non-fi-
hypothetical derivative. This method compares changes
nancial asset (i.e. property, plant and equipment or inven-
in fair value of the hedging instrument and the hypothe-
tories, etc.) or a non-financial liability, or a hedged forecast
tical derivative between the reporting date and the in-
transaction for a non-financial asset or a non-financial
ception date.
liability becomes a firm commitment for which fair value
hedge accounting is applied, the amount accumulated in
The main causes of hedge ineffectiveness can be the fol-
equity (i.e. hedging reserve) shall be removed and included
lowing:
in the initial amount (cost or other carrying amount) of the
› basis differences (i.e. the fair value or cash flows of the
asset or the liability hedged (i.e. “basis adjustment”).
hedged item depend on a variable that is different from
When a hedging instrument expires or is sold, or when a
the variable that causes the fair value or cash flows of the
hedge no longer meets the criteria for hedge accounting,
hedging instrument to change);
any cumulative gain or loss existing in equity at that time
› timing differences (i.e. the hedged item and hedging in-
remains in equity and is recognized when the forecast
strument occur or are settled at different dates);
transaction is ultimately recognized in the income state-
› quantity or notional amount differences (i.e. the hed-
ment. When a forecast transaction is no longer expected
ged item and hedging instrument are based on different
to occur, the cumulative gain or loss that was reported in
quantities or notional amounts);
equity is immediately transferred to the income statement.
› other risks (i.e. changes in the fair value or cash flows of
For hedging relationships using forwards as a hedging in-
a derivative hedging instrument or hedged item relate
strument, where only the change in the value of the spot
to risks other than the specific risk being hedged);
element is designated as the hedging instrument, accoun-
› credit risk (i.e. the counterparty credit risk differently im-
ting for the forward element (profit or loss vs OCI) is defi-
pact the changes in the fair value of the hedging instru-
ned case by case. This approach is actually applied by the
ments and hedged items).
Group for hedging of currency risk on renewables assets.
349
Integrated Annual Report 2020 Conversely, hedging relationships using cross currency in-
the Group is finalizing an assessment of the impact of the
terest rate swaps as hedging instruments, the Group sepa-
reform on contracts after having delineated their global
rates foreign currency basis spread, in designating the he-
scope in terms of their number and nominal value throu-
dging derivative, and present them in other comprehensive
gh a census based on data collection from Countries and
income (OCI) as hedging costs.
Business Lines. In addition, contractual amendments are
With specific regard to cash flow hedges of commodi-
beginning to be implemented gradually in a process that
ty risk, in order to improve their consistency with the risk
will continue in 2021, although this may vary depending on
management strategy, the Enel Group applies a dynamic
developments in the reform of benchmarks for determi-
hedge accounting approach based on specific liquidity re-
ning interest rates and alternative risk-free reference rates
quirements (the so-called liquidity-based approach).
associated with market liquidity.
This approach requires the designation of hedges through
the use of the most liquid derivatives available on the mar-
Derivatives
ket and replacing them with others that are more effective
For risk management purposes, the Group holds interest
in covering the risk in question.
rate swaps and cross currency interest rate swaps that are
Consistent with the risk management strategy, the liquidi-
mostly designated as cash flow hedging relationships, with
ty-based approach allows the roll-over of a derivative by
only a minority portion designated as fair value hedges.
replacing it with a new derivative, not only in the event of
Interest rate swaps and cross currency interest rate swaps
expiry but also during the hedging relationship, if and only
are essentially indexed to either Euribor or LIBOR in dollars
if the new derivative meets both of the following require-
or pounds. The Group’s derivative instruments are mana-
ments:
ged through contracts that are mainly based on framework
› it represents a best proxy of the old derivative in terms
agreements defined by the International Swaps and Deriva-
of ranking;
tives Association (ISDA).
› it meets specific liquidity requirements.
The ISDA has revised its standardized contracts in light of
Satisfaction of these requirements is verified quarterly.
the benchmark reform and plans to amend the 2006 ISDA
At the roll-over date, the hedging relationship is not di-
definitions relating to floating rates to include replacement
scontinued. Accordingly, starting from that date, changes
clauses (fallbacks) that would apply upon the permanent di-
in the effective fair value of the new derivative will be re-
scontinuation of certain key IBORs. The ISDA has published
cognized in equity (the hedging reserve), while changes in
a supplement to amend the ISDA 2006 definitions (the ISDA
the fair value of the old derivative are recognized through
Fallback Supplement) and a protocol to facilitate multila-
profit or loss.
teral amendments to include the amended floating-rate
options in derivative transactions entered into prior to the
Reform of benchmarks for the determination of interest
entry into force of the supplement (ISDA Fallback Proto-
rates and the associated risk
Overview
col). The Group is evaluating whether or not to adopt to
this protocol, monitoring whether other counterparties are
doing so. In the event of a change in the plan or if certain
Interbank Offered Rates (“IBORs”) are benchmark rates at
counterparties do not adopt the protocol, the Group would
which banks can borrow funds on the interbank market on
negotiate bilaterally with them about the inclusion of new
an unsecured basis for a given period ranging from overni-
fallback clauses.
ght to 12 months, in a specific currency.
In recent years there have been a number of cases of ma-
Hedging relationships
nipulation of these rates by the banks contributing to their
The Group has assessed the impact of uncertainty engen-
calculation. For this reason, regulators around the world
dered by the IBOR reform on hedging relationships at De-
have begun a sweeping reform of the benchmarks for the
cember 31, 2020 with reference to both hedging instru-
determination of interest rates that includes the replace-
ments and hedged items. Both the hedged items and the
ment of some benchmark indices with alternative risk-free
Group’s hedging instruments will change their paramete-
reference rates (the IBOR reform).
rization from interbank market-based benchmarks (IBORs)
In a context of significant uncertainty regarding the ti-
to alternative risk-free rates (RFRs) as a result of the con-
ming and transition procedures in the various countries,
tractual amendments that will take effect in 2021. More
350350
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements specifically, for hedging instruments indexed to Euribor,
The hedging relationships affected by the IBOR reform
the replacement rate will be based on the Euro STR (Euro
could become ineffective owing to the expectations of
Short-Term Rate), while those indexed to LIBOR in dollars
market players regarding the moment in which the tran-
and pounds will be indexed to SOFR (Secured Overnight
sition from the benchmarks for determining interest rates
Financing Rate) and SONIA (Sterling Overnight Index Ave-
based on interbank markets to alternative rates will take
rage), respectively.
place. This transition could occur at different times for he-
The most significant exposure of the Group is to Euribor,
dged items and hedging instruments and lead to ineffecti-
together with significant exposures to LIBOR in pounds
veness. In any case, the Group will work to implement the
and dollars as well. However, it is certainly on the euro side
replacements at the same time.
that the uncertainty surrounding the replacement process
is greatest.
The exposure of the Enel Group to hedging relationships
However, even if the Group expects the benchmark rates
impacted by the IBOR reform, for which the exceptions
based on interbank markets to be discontinued after the
provided for in the amendments to IFRS 9 issued in Sep-
end of 2021, there is uncertainty about the timing and pro-
tember 2019 were applied, amounts to €9,434 million in
cedures for replacing these indices for both hedged items
terms of the notional amount of the hedging instruments
and hedging instruments. The Group is therefore applying
at December 31, 2020. The following table provides a brea-
the amendments to IFRS 9 issued in September 2019 to
kdown of the notional amounts of the hedging instruments
hedging relationships directly impacted by the IBOR re-
by IBOR rate.
form.
Millions of euro
Hedging instruments
GBP LIBOR
USD LIBOR
Euribor
Total
Notional amount
at Dec. 31, 2020
1,225
1,595
6,614
9,434
351
Integrated Annual Report 2020 47.1.1 Hedge relationships by type of risk hedged
rage interest rate of instruments hedging the interest rate
Interest rate risk
The following table shows the notional amount and the ave-
risk on transactions outstanding at December 31, 2020 and
December 31, 2019, broken down by maturity.
Millions of euro
At Dec. 31, 2020
Interest rate swaps
Total notional amount
Notional amount related to IRS in euro
Average IRS rate in euro
Notional amount related to IRS in US
dollars
Average IRS rate in US dollars
At Dec. 31, 2019
Interest rate swaps
Total notional amount
Notional amount related to IRS in euro
Average IRS rate in euro
Notional amount related to IRS in US
dollars
Average IRS rate in US dollars
2021
2022
2023
2024
2025
Beyond
Maturity
122
-
461
135
178
178
155
155
591
591
5.0139
4.1593
4.4380
1.9058
122
2.0350
326
3.5227
-
-
-
6,115
5,295
1.8321
639
2.4648
2020
2021
2022
2023
2024
Beyond
199
47
3.1825
134
1.5740
140
-
499
143
187
187
170
170
4.9699
4.0516
4.1629
134
2.0350
356
3.5227
-
-
7,054
6,042
1.8298
665
2.9665
The following table shows the notional amount and the fair
of transactions outstanding as at December 31, 2020 and
value of the hedging instruments on the interest rate risk
December 31, 2019, broken down by type of hedged item.
Millions of euro
Fair value
Assets
Liabilities
Notional
amount
Hedging instrument
Hedged item
at Dec. 31, 2020
Fair value
Assets
Liabilities
at Dec. 31, 2019
Notional
amount
Fair value hedges
Interest rate swaps
Interest rate swaps
Cash flow hedges
Interest rate swaps
Interest rate swaps
Interest rate swaps
Total
Floating-rate
non-bank
borrowings
Fixed-rate bank
borrowings
Floating-rate
bonds
Floating-rate
loan assets
Floating-rate
non-bank
borrowings
352352
15
7
-
21
-
43
-
-
126
12
(232)
1,190
-
161
(708)
(940)
6,133
7,622
-
7
11
15
-
33
-
-
-
12
(499)
3,953
-
140
(281)
(780)
4,144
8,249
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following table shows the notional amount and the fair
cember 31, 2020 and December 31, 2019, broken down by
value of hedging derivatives on interest rate risk as at De-
type of hedge.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
Derivatives
Fair value hedges
Interest rate swaps
Interest rate
options
Total
Cash flow hedges
Interest rate swaps
Interest rate
options
Total
TOTAL
INTEREST RATE
DERIVATIVES
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
138
-
138
161
-
161
12
-
12
468
-
468
299
480
22
-
22
21
-
21
43
7
-
7
26
-
26
33
-
-
-
-
-
-
-
-
-
-
-
-
7,323
7,769
(940)
(780)
-
7,323
-
7,769
-
(940)
-
(780)
7,323
7,769
(940)
(780)
The notional amount of derivatives classified as hedging
› new interest rate swaps amounting to €40 million. The
instruments at December 31, 2020, came to €7,622 million,
amount also reflects the reduction of €360 million in the
with a corresponding negative fair value of €897 million.
notional amount of amortizing interest rate swaps.
The deterioration in the fair value of €150 million mainly
Compared with December 31, 2019, the notional amount
reflects developments in the yield curve.
decreased by €627 million, mainly reflecting:
› the expiry of interest rate swaps amounting to €180 mil-
Fair value hedge derivatives
lion;
The following table reports net gains and losses recognized
› a reduction of €127 million in interest rate swaps due
through profit or loss deriving from changes in the fair va-
to a change in the consolidation method used for avai-
lue of fair value hedge derivatives and the changes in the
lable-for-sale entities in the Africa, Asia and Oceania
fair value of the hedged item that are attributable to inte-
area;
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
rest rate risk both in 2020 and the previous year.
2020
Net gain/(loss)
2019
Net gain/(loss)
15
(14)
1
-
-
-
The following table shows the impact of fair value hedges
of interest rate risk in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
2020
2019
Interest rate swaps
Notional
amount
138
Carrying
amount
22
Fair value used
to measure
ineffectiveness
in the year
22
Notional
amount
12
Carrying
amount
7
Fair value used
to measure
ineffectiveness
in the year
7
353
Integrated Annual Report 2020 The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
2020
2019
Fixed-rate borrowings
Floating-rate borrowings
Total
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in the year
7
15
22
(7)
(15)
(22)
Carrying
amount
20
146
166
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in the year
7
-
7
(7)
-
(7)
Carrying
amount
20
-
20
Cash flow hedge derivatives
The following table shows the cash flows expected in co-
ming years from cash flow hedge derivatives on interest
rate risk.
Millions of euro
Cash flow hedge
derivatives on interest
rates
Positive fair value
Negative fair value
Fair value
at Dec. 31,
2020
Distribution of expected cash flows
2021
2022
2023
2024
2025
Beyond
21
(940)
4
(149)
4
(141)
4
(141)
3
(125)
2
(104)
5
(306)
The following table shows the impact of cash flow hedges
of interest rate risk in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
2020
2019
Interest rate swaps
Total
Fair value used
to measure
ineffectiveness
in the year
(919)
(919)
Carrying
amount
(919)
(919)
Notional
amount
7,484
7,484
Fair value used
to measure
ineffectiveness
in the year
(754)
(754)
Carrying
amount
(754)
(754)
Notional
amount
8,237
8,237
354354
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following table shows the impact of the hedged item of
cash flow hedges in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of
euro
Floating-rate
bonds
Floating-rate
loan assets
Floating-rate
non-bank
borrowings
Total
2020
2019
Fair value
at the
designation
date of CFH
derivatives
through
profit or
loss
Fair value used
to measure
ineffectiveness
in the year
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value used
to measure
ineffectiveness
in the year
Hedging
reserve
Hedging
costs
reserve
Fair value
at the
designation
date of CFH
derivatives
through
profit or
loss
Ineffective
portion of
carrying
amount
of CFH
derivatives
Hedging
reserve
Hedging
costs
reserve
232
(21)
653
864
-
-
(232)
21
(44)
(44)
(653)
(864)
-
-
-
-
-
-
(11)
(11)
486
(15)
275
746
-
-
(486)
15
(49)
(49)
(226)
(697)
-
-
-
-
(2)
-
(6)
(8)
Finally, note that for cash flow hedge derivatives on in-
Currency risk
terest rates, the amount reclassified in 2020 from other
The following table reports the maturity profile of the notio-
comprehensive income to profit or loss generated financial
nal amount and associated average contractual exchange
expense of €82 million gross of tax effects, while the pre-
rate for the instruments hedging currency risk on tran-
vious year the financial expense recognized amounted to
sactions outstanding at December 31, 2020 and December
€1,315 million.
31, 2019.
355
Integrated Annual Report 2020 Millions of euro
Maturity
2021
2022
2023
2024
2025
Beyond
Total
At Dec. 31, 2020
Cross currency interest rate
swaps (CCIRS)
Total notional amount of CCIRS
859
1,702
3,120
3,088
1,336
10,882
20,987
185
1.1348
1,630
1.1213
2,038
1.2493
1,223
1.1039
1,223
1.1593
6,928
1.2397
Total notional amount of forwards
3.684
1.871
Notional amount for CCIRS EUR-
USD
Average exchange rate EUR/USD
Notional amount for CCIRS EUR-
GBP
Average exchange rate EUR/GBP
Notional amount for CCIRS EUR-
CHF
Average exchange rate EUR/CHF
Notional amount for CCIRS USD-
BRL
Average exchange rate USD/BRL
Currency forwards
Notional amount - currency
forward EUR/USD
Average currency forward rate -
EUR/USD
Notional amount - currency
forward USD/BRL
Average currency forward rate -
USD/BRL
Notional amount - currency
forward USD/COP
Average currency forward rate -
USD/COP
Notional amount - currency
forward USD/CLP
Average currency forward rate -
USD/CLP
716.8847
Notional amount - currency
forward EUR/RUB
Average currency forward rate -
EUR/RUB
100
91.8464
356356
278
0.8248
-
-
-
-
-
946
0.8765
208
1.0642
395
4.3935
71
64
4.1779
5.1967
2.671
1.786
1.1473
1.1535
1.1976
379
37
5.2226
5.4405
187
3.782
121
-
-
-
12
12
-
-
-
-
-
-
-
-
-
-
-
13,227
4,667
328
774
5,567
4,469
416
187
121
100
-
-
-
-
-
-
-
-
-
3.443
0.7876
120
0.9040
244
3.4489
-
-
-
-
-
-
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
At Dec. 31, 2019
Cross currency interest rate swaps
(CCIRS)
2020
2021
2022
2023
2024
Beyond
Total
Maturity
Total notional amount of CCIRS
831
1.115
1.781
3.339
3.146
12.511
22.723
Notional amount for CCIRS EUR-
USD
Average exchange rate EUR/USD
-
202
1.1348
1.781
1.1213
3.339
1.2184
1.336
1.1039
8.904
1.2067
15.562
-
-
-
18
18
Notional amount for CCIRS EUR-
GBP
Average exchange rate EUR/GBP
470
0.8466
587
0.8245
Notional amount for CCIRS EUR-
CHF
Average exchange rate EUR/CHF
92
1.2169
-
Notional amount for CCIRS USD-
BRL
Average exchange rate USD/BRL
269
3.9273
326
3.4742
Currency forwards
Total notional amount of forwards
4.459
1.015
Notional amount - currency
forward EUR/USD
Average currency forward rate -
EUR/USD
Notional amount - currency
forward USD/CLP
Average currency forward rate -
USD/CLP
Notional amount - currency
forward USD/BRL
Average currency forward rate -
USD/BRL
Notional amount - currency
forward EUR/ZAR
Average currency forward rate -
EUR/ZAR
Notional amount - currency
forward EUR/RUB
Average currency forward rate -
EUR/RUB
2.899
958
1.1774
1.1803
1.1609
527
678.0443
44
680
313
14
4.1274
4.1330
221
17.7856
181
74.1277
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
999
0.8765
3.041
0.8062
5.097
207
1.0642
120
1.21
-
-
-
-
-
-
-
288
3.5655
-
-
-
-
-
-
419
883
5.492
3.875
571
327
221
181
357
Integrated Annual Report 2020 The following table shows the notional amount and the fair
transactions outstanding as at December 31, 2020 and
value of the hedging instruments on the currency risk of
December 31, 2019, broken down by type of hedged item.
Millions of euro
Fair value
Notional
amount
Fair value
Notional
amount
Hedging instrument
Hedged item
Assets
Liabilities
Assets
Liabilities
at Dec. 31, 2020
at Dec. 31, 2019
Fair value hedges
Cross currency interest
rate swaps (CCIRS)
Cross currency interest
rate swaps (CCIRS)
Cash flow hedges
Cross currency interest
rate swaps (CCIRS)
Cross currency interest
rate swaps (CCIRS)
Fixed-rate
borrowings/bonds in
foreign currencies
Floating-rate
borrowings in
foreign currencies
Floating-rate
borrowings in
foreign currencies
Fixed-rate
borrowings in
foreign currencies
Cross currency interest
rate swaps (CCIRS)
Floating-rate bonds
in foreign currencies
Cross currency interest
rate swaps (CCIRS)
Fixed-rate bonds in
foreign currencies
Cross currency interest
rate swaps (CCIRS)
Currency forwards
Currency forwards
Currency forwards
Total
Future cash flows
denominated in
foreign currencies
Future cash flows
denominated in
foreign currencies
Future commodity
purchases
denominated in
foreign currencies
Purchases of
investment goods
and other in foreign
currency
28
28
67
50
12
-
-
639
79
25
-
(15)
579
55
-
-
484
356
-
6
(1)
-
(5)
(4)
(1)
171
-
999
72
302
588
(2,374)
18,499
1,022
(1,535)
20,877
7
3
5
(4)
(12)
351
574
-
3
(17)
302
(63)
811
(309)
4,167
124
(7)
3,462
4
792
(40)
(2,754)
825
26,553
3
1,238
(43)
(1,676)
1,219
28,215
Cash flow hedges and fair value hedges include:
› currency forwards with a notional amount of €825 million
› CCIRSs with a notional amount of €19,622 million used to
and a negative fair value of €36 million in respect of OTC
hedge the currency risk on fixed-rate debt denominated
transactions to mitigate the currency risk on expected
in currencies other than the euro, with a negative fair va-
cash flows in currencies other than the presentation cur-
lue of €1,708 million;
rency connected with the purchase of investment goods
› CCIRSs with a notional amount of €1,365 million used to
in the renewables and infrastructure and networks sec-
hedge the currency risk on floating-rate debt denomina-
tors (new generation digital meters), on operating costs
ted in currencies other than the euro, with a positive fair
for the supply of cloud services and on revenue from the
value of €95 million;
sale of renewable energy.
› currency forwards with a notional amount of €4,741 mil-
lion used to hedge the currency risk associated with pur-
The following table reports the notional amount and fair va-
chases of natural gas, purchases of fuel and expected
lue of foreign exchange derivatives at December 31, 2020
cash flows in currencies other than the euro, with a ne-
and December 31, 2019, broken down by type of hedge.
gative fair value of €313 million;
358358
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
Derivatives
Fair value hedges
CCIRS
Total
Cash flow hedges
Currency forwards
CCIRS
Total
TOTAL
EXCHANGE RATE
DERIVATIVES
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
718
718
476
5,582
6,058
166
166
3,253
11,169
14,422
56
56
12
724
736
25
25
130
1,083
1,213
-
-
5,090
14,687
19,777
5
5
2,238
11,384
13,622
-
-
(361)
(2,393)
(2,754)
(1)
(1)
(113)
(1,562)
(1,675)
6,776
14,588
792
1,238
19,777
13,627
(2,754)
(1,676)
The notional amount of CCIRSs at December 31, 2020
cember 31, 2019), an increase of €75 million. The exposure
amounted to €20,987 million (€22,724 million at December
to currency risk, especially that associated with the US dol-
31, 2019), a decrease of €1,737 million. Cross currency inte-
lar, is mainly due to purchases of natural gas, purchases of
rest rate swaps with a total amount of €831 million expired,
fuel and cash flows in respect of investments. Changes in
while new derivatives amounted to €1,108 million, of whi-
the notional amount are connected with normal develop-
ch €557 million in respect of bond issues denominated in
ments in operations.
pounds sterling in October 2020. In addition, cross curren-
cy interest rate swaps of €294 million were terminated ear-
Fair value hedge derivatives
ly. The amount also reflects developments in the exchange
The following table reports net gains and losses recognized
rate of the euro against the main other currencies and the
through profit or loss, reflecting changes in the fair value
effect of amortization, which caused their notional amount
of fair value hedge derivatives and the changes in the fair
to decrease by €1,720 million.
value of the hedged item that are attributable to currency
The notional amount of currency forwards at December
risk for 2020 and the previous year.
31, 2020 amounted to €5,566 million (€5,491 million at De-
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
The following table shows the impact of fair value hedges
of currency risk in the statement of financial position at De-
cember 31, 2020 and December 31, 2019.
2020
2019
Net gain/(loss)
Net gain/(loss)
44
(51)
(7)
1
(4)
(3)
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
Cross currency interest rate swaps
(CCIRS)
718
56
56
171
24
24
359
Integrated Annual Report 2020 The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Fixed-rate borrowings in foreign
currency
Floating-rate borrowings in foreign
currency
Total
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
637
79
716
34
28
62
(34)
(28)
(62)
81
90
171
11
15
26
(11)
(15)
(26)
Cash flow hedge derivatives
The following table shows the cash flows expected in co-
ming years from cash flow hedge derivatives on currency
risk.
Millions of euro
Cash flow hedge
derivatives on
exchange rates
Positive fair value
Negative fair value
Fair value
at Dec. 31,
2020
Distribution of expected cash flows
2021
2022
2023
2024
2025
Beyond
736
(2,754)
140
(139)
105
(180)
178
(18)
87
(96)
13
27
53
(98)
The following table shows the impact of cash flow hedges
of currency risk in the statement of financial position at De-
cember 31, 2020 and December 31, 2019.
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Cross currency interest rate swaps
(CCIRS)
Currency forwards
Total
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
20,269
5,566
25,835
(1,669)
(349)
(2,018)
(1,463)
(342)
(1,805)
22,552
5,491
28,043
(479)
17
(462)
(345)
52
(293)
360360
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The following table shows the impact of the hedged item of
cash flow hedges in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Fair value used
to measure
ineffectiveness
in the year
Hedging
reserve
Hedging
costs reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value used
to measure
ineffectiveness
in the year
Ineffective
portion of
carrying
amount
of CFH
derivatives
Hedging
reserve
Hedging
costs
reserve
Floating-rate
borrowings in
foreign currencies
Fixed-rate
borrowings in
foreign currencies
Floating-rate
bonds in foreign
currencies
Fixed-rate
bonds in foreign
currencies
Future cash flows
denominated in
foreign currencies
Future cash flows
denominated in
foreign currencies
Future commodity
purchases
denominated in
foreign currencies
Purchases of
investment goods
and other in
foreign currency
Total
(52)
(50)
(12)
52
50
12
-
-
-
1,580
(1,580)
(205)
(3)
7
3
(7)
305
(305)
-
(3)
-
-
-
-
-
-
-
1
(49)
3
(5)
49
(3)
5
1
(1)
-
378
(378)
(135)
17
59
(17)
(59)
-
(1)
(119)
119
-
30
1,805
(30)
(1,805)
(5)
(213)
(1)
-
9
293
(9)
(293)
(32)
(168)
-
-
-
-
-
-
(2)
1
(1)
Finally, note that for cash flow hedge derivatives on exchan-
expense of €1,483 million gross of tax effects, while the
ge rates, the amount reclassified in 2020 from other com-
previous year the financial expense recognized amounted
prehensive income to profit or loss generated financial
to €770 million.
361
Integrated Annual Report 2020 2021
2022
2023
2024
2025
Beyond
Total
Maturity
78
65
64
65
53
37.7
37.7
37.6
1,065
244
246
40.3
32
37.9
2
51.2
57.9
-
-
-
-
43.2
1,521
14.3
317
24.2
744
25.0
973
14.9
134
26.6
413
45.0
44.3
8
-
-
-
-
-
-
19.1
17
15.2
37
27.9
-
-
9
-
-
-
-
197
17.9
20
4.9
-
-
-
-
9
-
-
-
-
191
17.4
20
4.9
-
-
-
-
9
29.7
26.4
26.4
26.4
31.7
606
34
-
281
37.7
-
-
-
-
741
2,684
2,659
488
1,157
15.2
108
2.5
-
-
-
-
45
80
Commodity price risk
Millions of euro
At Dec. 31, 2020
Commodity swaps
Notional value on
power
Average commodity
swap price on power
(€/MWh)
Notional value on coal/
shipping
Average commodity
swap price on coal/
shipping ($/ton)
Notional value on gas
Average commodity
swap price on gas (€/
MWh)
Commodity forwards/
futures
Notional value on
power
Average commodity
forward/future price
on power (€/MWh)
Notional value on gas
Average commodity
forward/future price
on gas (€/MWh)
Notional value on CO2
Average commodity
forward/future price
on CO2 (€/ton)
Notional value on oil
Average commodity
forward/future price
on oil ($/bbl)
Commodity options
Notional value on
power
Average commodity
option price on power
(€/MWh)
362362
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements 2020
2021
2022
2023
2024
Beyond
Total
Maturity
123
121
135
128
712
1.922
20.5
20.2
20.2
20.2
20.7
Millions of euro
At Dec. 31, 2019
Commodity swaps
Notional value on
power
Average commodity
swap price on power
(€/MWh)
Notional value on coal/
shipping
Average commodity
swap price on coal/
shipping ($/ton)
Notional value on gas
Average commodity
swap price on gas (€/
MWh)
Commodity forwards/
futures
Notional value on
power
Average commodity
forward/future price
on power (€/MWh)
Notional value on gas
Average commodity
forward/future price
on gas (€/MWh)
Notional value on CO2
Average commodity
forward/future price
on CO2 (€/ton)
Notional value on oil
Average commodity
forward/future price
on oil ($/bbl)
Commodity options
Notional value on
power
Average commodity
option price on power
(€/MWh)
703
47.7
253
62.4
13
-
-
13
-
-
13
-
-
13
3.0
3.0
3.0
3.0
726
2
50.5
1,869
15.9
217
18.0
988
50.4
662
19.1
9
25.0
115
64.8
59.7
-
-
-
-
-
-
1
17.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
7.0
-
-
-
-
-
-
-
-
-
-
-
-
66
7.9
-
-
-
-
-
-
-
-
-
-
253
159
728
2,532
226
1,103
-
363
Integrated Annual Report 2020 The following table reports the notional amount and fair va-
sactions outstanding at December 31, 2020 and December
lue of instruments hedging commodity price risk on tran-
31, 2019, broken down by type of commodity.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
Derivatives
Cash flow hedges
Derivatives on
power:
- swaps
- forwards/futures
- options
Total derivatives
on power
Derivatives on
coal/shipping:
- swaps
- forwards/futures
- options
Total derivatives
on coal/shipping
Derivatives on gas
and oil:
- swaps
- forwards/futures
- options
Total derivatives
on gas and oil
Derivatives on
CO2:
- swaps
- forwards/futures
- options
Total derivatives
on CO2
TOTAL
COMMODITY
DERIVATIVES
369
2,066
70
1,301
280
-
2,505
1,581
34
-
-
34
-
1,674
11
-
-
-
-
79
2,823
-
1,685
2,902
-
482
-
482
-
226
-
226
70
361
-
431
11
-
-
11
-
456
18
474
-
139
-
139
234
34
-
268
7
-
-
7
9
694
-
703
-
84
-
84
236
571
-
807
-
-
-
-
-
2,189
-
2,189
-
5
-
5
621
448
-
1,069
253
-
-
253
80
812
-
892
-
-
-
-
(56)
(16)
-
(72)
-
-
-
-
-
(455)
-
(107)
(44)
-
(151)
(54)
-
-
(54)
(1)
(298)
-
(455)
(299)
-
-
-
-
-
-
-
-
4,706
4,709
1,055
1,062
3,001
2,214
(527)
(504)
The table reports the notional amount and fair value of
derivatives hedging commodity price risk on at December
The CO2 category mainly includes hedging transactions
undertaken for Enel Group compliance purposes.
31, 2020 and at December 31, 2019, broken down by type
The power category mainly includes medium/long-term
of hedge.
hedging transactions, especially in North America.
The positive fair value of cash flow hedge derivatives on
Cash flow hedge derivatives on commodities included in
commodities regards derivatives on gas and oil commo-
dities in the amount of €474 million, derivatives on CO2
(€139 million), derivatives on power (€431 million) and, to a
liabilities regard derivatives on gas and oil commodities in
the amount of €455 million (mainly for derivatives hedging
sales) and derivatives on power in the amount of €72 million.
lesser extent, hedges of coal purchases requested by the
The Group’s main hedge accounting transactions have not
generation companies in the amount of €11 million.
currently been affected by any particular adverse negative
The first category primarily regards hedges of fluctuations
effects (e.g. discontinuation, ineffectiveness) associated
in the price of natural gas, for both purchases and sales,
with the COVID-19 emergency either globally or at the lo-
carried out for oil commodities and gas products.
cal economy level.
364364
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Cash flow hedge derivatives
The following table shows the cash flows expected in co-
ming years from cash flow hedge derivatives on commo-
dity price risk.
Millions of euro
Cash flow hedge
derivatives on
commodities
Positive fair value
Negative fair value
Fair value
at Dec. 31,
2020
Distribution of expected cash flows
2021
2022
2023
2024
2025
Beyond
1,055
(527)
626
(392)
131
(99)
34
(23)
18
(6)
19
(6)
227
(1)
The following table shows the impact of cash flow hedges
of commodity price risk in the statement of financial posi-
tion at December 31, 2020 and December 31, 2019.
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Power swaps
Coal/shipping swaps
Gas and oil swaps
Power forwards/futures
Coal/shipping forwards/futures
Gas and oil forwards/futures
CO2 forwards/futures
Power options
Total
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
605
34
-
2,717
-
3,794
487
70
7,707
23
11
-
375
-
(20)
139
-
528
23
11
-
356
-
(20)
139
-
509
1,922
253
159
728
-
3,635
226
127
(47)
8
(10)
-
396
84
127
(47)
8
(10)
-
396
84
6,923
558
558
The following table shows the impact of the hedged item of
cash flow hedges in the statement of financial position at
December 31, 2020 and December 31, 2019.
Millions of euro
at Dec. 31, 2020
at Dec. 31, 2019
Fair value used
to measure
ineffectiveness
in the year
Hedging
reserve
Hedging
costs reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value used
to measure
ineffectiveness
in the year
Ineffective
portion of
carrying
amount
of CFH
derivatives
Hedging
reserve
Hedging
costs reserve
Future
transactions in
power
Future
transactions in
coal/shipping
Future
transactions in gas
and oil
Future
transactions in
CO2
Total
(316)
374
(11)
11
20
(20)
(139)
(446)
139
504
-
-
-
-
-
24
(110)
110
-
-
-
24
47
(47)
(404)
404
(84)
(551)
84
551
-
-
-
-
-
7
-
-
-
7
365
Integrated Annual Report 2020 Finally, note that for cash flow hedge derivatives on com-
modity prices, the amount reclassified in 2020 from other
47.2 Derivatives at fair value through profit or loss
The following table shows the notional amount and the fair
comprehensive income to profit or loss generated finan-
value of derivatives at FVTPL as at December 31, 2020 and
cial expense of €293 million gross of tax effects, while the
December 31, 2019.
previous year the financial income recognized amounted
to €20 million.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
at Dec. 31,
2020
at Dec. 31,
2019
Derivatives at FVTPL:
- derivatives on
interest rates:
- interest rate swaps
- interest rate options
- derivatives on
exchange rates:
50
-
50
-
- currency forwards
3,501
3,399
-
-
144
5,493
137
-
-
282
5,353
3
2
-
83
-
-
14
75
24
2
-
34
-
-
25
403
2
100
50
112
50
(88)
(4)
(80)
(5)
1,012
1,648
(44)
(38)
-
-
109
5,626
9
33
-
281
4,329
27
-
-
(18)
(428)
(12)
-
-
(28)
(155)
(14)
5,774
5,638
113
430
5,744
4,637
(458)
(197)
47
200
247
635
13,993
185
311
-
311
1,259
9,782
315
4
40
44
81
2,108
165
69
-
69
168
2,126
247
16
144
160
259
14,121
170
367
-
367
(1)
(27)
(28)
(80)
-
(80)
852
11,047
309
(34)
(1,999)
(173)
(97)
(2,190)
(273)
14,813
11,356
2,354
2,541
14,550
12,208
(2,206)
(2,560)
-
770
-
770
-
195
195
4
-
185
-
185
4
6
10
25
-
209
-
209
-
9
9
3
-
31
-
31
2
3
5
3
-
290
5
295
13
234
247
3
-
524
-
524
16
9
25
43
-
(72)
(5)
(77)
(7)
(1)
(8)
(3)
-
(32)
-
(32)
(1)
(4)
(5)
(4)
TOTAL
25,354
20,974
2,817
3,115
22,161
19,647
(2,916)
(3,001)
366366
- CCIRS
- derivatives on
commodities
Derivatives on power:
- swaps
- forwards/futures
- options
Total derivatives on
power
Derivatives on coal:
- swaps
- forwards/futures
Total derivatives on
coal
Derivatives on gas
and oil:
- swaps
- forwards/futures
- options
Total derivatives on
gas and oil
Derivatives on CO2:
- swaps
- forwards/futures
- options
Total derivatives on
CO2
Derivatives on other:
- swaps
- forwards/futures
Total derivatives on
other
Embedded derivatives
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements At December 31, 2020 the notional amount of trading deri-
depending on the inputs and valuation techniques used in
vatives on interest rates came to €200 million. The net ne-
determining their fair value:
gative fair value of €90 million increased by €7 million on
› Level 1, where the fair value is determined on basis of
the previous year, mainly due to developments in the yield
quoted prices (unadjusted) in active markets for identical
curve.
assets or liabilities that the entity can access at the me-
At December 31, 2020, the notional amount of derivatives
asurement date;
on exchange rates was €4,513 million. The overall decrease
› Level 2, where the fair value is determined on basis of
in their notional value and the increase in the associated
inputs other than quoted prices included within Level 1
net positive fair value of €43 million mainly reflected normal
that are observable for the asset or liability, either directly
operations and developments in exchange rates.
(such as prices) or indirectly (derived from prices);
At December 31, 2020, the notional amount of derivatives
› Level 3, where the fair value is determined on the basis of
on commodities came to €42,802 million. The fair value
unobservable inputs.
of trading derivatives on commodities classified as assets
This note also provides detailed disclosures concerning
mainly reflects the market valuation of hedges of gas and
the valuation techniques and inputs used to perform these
oil amounting to €2,354 million and derivatives on power
measurements.
amounting to €113 million.
To that end:
The fair value of trading derivatives on commodities clas-
› recurring fair value measurements of assets or liabilities
sified as liabilities mainly regards hedges of gas and oil
are those required or permitted by the IFRS in the sta-
amounting to €2,206 million and derivatives on power
tement of financial position at the close of each period;
amounting to €458 million.
› non-recurring fair value measurements are those requi-
The “other” category includes hedges using weather deri-
red or permitted by the IFRS in the statement of financial
vatives. In addition to commodity risk, the Group compa-
position in particular circumstances.
nies are also exposed to changes in volumes associated
For general information or specific disclosures on the ac-
with weather conditions (for example, temperature impacts
counting treatment of these circumstances, please see
the consumption of gas and power).
note 2 “Accounting policies”.
Embedded derivatives, which are held by Enel Green Power
North America, mainly regard supplementary financial clau-
ses in more complex tax equity partnership agreements,
which are used to finance investment in new renewables
48.1 Assets measured at fair value in the statement
of financial position
The following table shows, for each class of assets measu-
capacity.
red at fair value on a recurring or non-recurring basis in the
statement of financial position, the fair value measurement
Derivatives at fair value through profit or loss include tran-
at the end of the reporting period and the level in the fair
sactions managed within the trading portfolios and tran-
value hierarchy into which the fair value measurements of
sactions that, although established for hedging purposes,
those assets are classified.
did not meet the requirements for hedge accounting.
Measurement at fair value
48. Assets and liabilities measured at fair value
The Group determines fair value in accordance with IFRS
13 whenever such measurement is required by the IFRS as
a recognition or measurement criterion.
Fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability, in an orderly tran-
saction, between market participants, at the measurement
date (i.e. an exit price).
The best proxy of fair value is market price, i.e. the current
publically available price actually used on a liquid and active
market.
The fair value of assets and liabilities is classified in ac-
cordance with the three-level hierarchy described below,
367
Integrated Annual Report 2020 Millions of euro
Non-current assets
Current assets
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Equity investments in
other companies at
FVOCI
27
Securities at FVOCI
27.1, 28.1
40
408
4
408
27
30
21
27
2,057
Equity investments in
other companies at
FVTPL
Financial assets from
service concession
arrangements at FVTPL
Loan assets and
other financial assets
measured at fair value
Fair value hedge
derivatives:
- on interest rates
- on exchange rates
Cash flow hedge
derivatives:
- on interest rates
- on exchange rates
- on commodities
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Inventories measured at
fair value
13
-
-
2,057
-
22
28
21
685
282
2
4
40
-
8
23
-
9
-
-
-
-
-
-
44
-
-
2
-
13
-
67
-
-
-
67
-
-
301
226
-
28
-
51
627
-
79
-
-
-
-
279
-
-
-
-
-
-
75
-
28
-
51
333
-
79
2,686
1,637
1,049
55
23
41
-
2
11
-
-
-
-
-
-
-
-
-
15
-
-
-
12
12
-
-
-
-
-
-
102
-
-
5
-
-
27
47
47
47
47
47
47
47
47
47
-
22
28
21
685
428
2
4
46
-
21
Contingent consideration
29, 30
The fair value of “equity investments in other companies
the official prices for instruments traded on regulated mar-
at FVOCI” is determined for listed companies on the basis
kets. The fair value of instruments not listed on a regulated
of the quoted price at the close of the year, while that for
market is determined using valuation methods appropriate
unlisted companies is based on a reliable valuation of the
for each type of financial instrument and market data as
relevant assets and liabilities.
of the end of the reporting period (such as interest rates,
exchange rates, volatility), discounting expected future
“Financial assets from service concession arrangements at
cash flows on the basis of the market yield curve and tran-
FVTPL” concern electricity distribution operations in Brazil,
slating amounts in currencies other than the euro using
mainly by Enel Distribuição Rio de Janeiro, Enel Distribuição
exchange rates provided by the World Markets Refinitiv
Ceará and Enel Distribuição Goiás, as well as the generation
(WMR) Company.
plant of PH Chucas in Costa Rica, and are accounted for
Derivatives on interest rates and exchange rates are all me-
in accordance with IFRIC 12. Fair value was estimated as
asured using Level 2 inputs.
the net replacement cost based on the most recent rate
The fair value of derivatives on commodities is almost
information available and on the general price index for the
always measured using Level 1 or Level 2 inputs, as the de-
Brazilian market.
termination is based on market inputs as these contracts
are entered into with exchange counterparties, leading
“Loan assets and other financial assets measured at fair
sector operators or financial institutions.
value” essentially regard investments of liquidity. Their fair
Marginal exceptions for both cash flow hedges and trading
value is determined using Level 1 or Level 2 market inputs.
transactions include certain derivatives relating to weather
The fair value of derivative contracts is determined using
derivatives, which are measured on the basis of certified hi-
368368
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements storical data for the underlying variables as well as certain
the position and subsequently allocating the adjustment to
long-term financial contracts (virtual power purchase agre-
the individual financial instruments that make up the overall
ements, or VPPAs), for which internal measurement models
portfolio. All of the inputs used in this technique are obser-
were also used in part in order to measure these instru-
vable on the market.
ments over longer time horizons, given the illiquidity of the
underlying variables.
In accordance with the IFRS, the Group assess credit risk,
both of the counterparty (Credit Valuation Adjustment or
48.2 Assets not measured at fair value in the
statement of financial position
For each class of assets not measured at fair value on a
CVA) and its own (Debit Valuation Adjustment or DVA), in
recurring basis but whose fair value must be reported, the
order to adjust the fair value of financial instruments for
following table reports the fair value at the end of the year
the corresponding amount of counterparty risk. More spe-
and the level in the fair value hierarchy into which the fair
cifically, the Group measures CVA/DVA using a Potential Fu-
value measurements of those assets are classified.
ture Exposure valuation technique for the net exposure of
Millions of euro
Non-current assets
Current assets
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Investment property
Inventories
20
31
148
-
-
-
-
-
148
-
-
52
-
-
-
-
-
52
The table reports the fair value of investment property and
inventories of real estate not used in the business in the
amount of €148 million and €52 million respectively. The
48.3 Liabilities measured at fair value in the
statement of financial position
The following table reports for each class of liabilities measu-
amounts were calculated with the assistance of appraisals
red at fair value on a recurring or non-recurring basis in the
conducted by independent experts, who used different
statement of financial position the fair value measurement at
methods depending on the specific assets involved.
the end of the reporting period and the level in the fair value
hierarchy into which the fair value measurements are classified.
Millions of euro
Non-current liabilities
Current liabilities
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Cash flow hedge
derivatives:
- on interest rates
- on exchange rates
- on commodities
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
47
47
47
47
47
47
Contingent consideration
39, 40
938
2,491
148
4
3
22
41
-
-
29
-
-
3
-
938
2,491
76
4
3,0
19
-
-
-
43
-
-
-
41
2
263
379
88
41
2,758
53
-
-
75
-
-
1,629
-
2
263
302
88
41
1,122
51
-
-
2
-
-
7
2
Contingent consideration mainly regards a number of
equity investments held by the Group in North America and
Greece, whose fair value was determined on the basis of
the contractual terms and conditions.
369
Integrated Annual Report 2020 48.4 Liabilities not measured at fair value in the
statement of financial position
For each class of liabilities not measured at fair value in the
be reported, the following table reports the fair value at the
end of the period and the level in the fair value hierarchy
into which the fair value measurements of those liabilities
statement of financial position but whose fair value must
are classified.
Millions of euro
Bonds:
- fixed rate
- floating rate
Bank borrowings:
- fixed rate
- floating rate
Non-bank borrowings:
- fixed rate
- floating rate
Total
Notes
Fair value
Level 1
Level 2
Level 3
44.3.1
44.3.1
44.3.1
44.3.1
44.3.1
44.3.1
43,223
3,765
39,722
147
833
9,259
2,609
249
-
-
-
-
3,501
3,618
833
9,259
2,609
249
59,938
39,869
20,069
-
-
-
-
-
-
-
For listed debt instruments, the fair value is given by official
of financial instrument and market data at the close of the
prices. For unlisted instruments the fair value is determined
year, including the credit spreads of Enel.
using appropriate valuation techniques for each category
370370
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Other information
49. Share-based payments
Long-term incentive plans, described below, are part of the
Remuneration Policy adopted by the Group and described
in the section “Incentive system” in the Report on Opera-
tions.
Plan beneficiaries are the Chief Executive Officer/General
Manager of Enel and Group managers in the positions most
directly responsible for company performance or conside-
red to be of strategic interest. The plans provide for the
award to the beneficiaries of a non-transferrable incenti-
ve consisting of an equity component (share-based pay-
ment transaction) and a monetary component (classified as
another long-term employee benefit).
For more details on the accounting treatment of these
plans, please see note 2.2 “Significant accounting policies”.
The following information describes the main characteri-
stics of the share-based incentive plans adopted by Enel
outstanding during 2020:
2019 LTI Plan
2020 LTI Plan
Date of approval
Grant date
Performance
period
Verification of
achievement of
targets
16.05.2019 (3)
12.11.2019 (4)
2019-2021
14.05.2020 (6)
17.09.2020 (7)
2020-2022
2021 (5)
2022 (8)
Payout
2022-2023
2023-2024
The vesting of the incentive envisaged under these plans
the degree of achievement of each of the three-year per-
is subject to the condition that the beneficiaries remain
formance targets by the plans, ranging from zero up to a
employed with the Group during the vesting period (i.e. the
maximum of 280% or 180% of the base value in the case,
service condition), with a small number of exceptions spe-
respectively, of the Chief Executive Officer/General Mana-
cifically governed by the Rules, and that they achieve spe-
ger or the other beneficiaries.
cific performance conditions connected with the following
three-year performance variables:
The plans establish that any bonus vested shall be repre-
› Enel’s average TSR (Total Shareholder Return)(9) compa-
sented by an equity component, which can be supplemen-
red with the average TSR for the EURO STOXX Utilities
ted – depending on the level of achievement of the various
- EMU for the three-year reference period (with a weight
targets – by a cash component. More specifically, the plans
of 50%);
envisage that 100% of the base value for the Chief Executi-
› cumulative consolidated ROACE (Return on Average
ve Officer and General Manager and 50% of the base value
Capital Employed) over the three-year reference period
for key management personnel will be paid in Enel shares
(with a weight of 25% in the 2020 LTI Plan and 40% in the
previously acquired by the Company for the amount of the
2019 LTI Plan);
› emissions of CO2 in grams per kWh equivalent produced
by the Group in the last year of the three-year reference
award that has effectively vested. This equity component
represents a share-based payment transaction settled with
equity instruments.
period(10) (with a weight of 10%);
If the targets have been achieved, the disbursement of a si-
› consolidated net installed renewables capacity as a per-
gnificant portion of the equity and cash components of the
centage of total consolidated net installed capacity at
vested incentive (70% of the total) is deferred to the second
the end of the last year of the three-year reference pe-
year following the three-year performance period covered
riod (only in the 2020 LTI Plan; with a weight of 15%).
by the plans, without prejudice to the beneficiaries’ right to
This incentive – determined, at the time of the award, as
request deferred payment of the entire incentive.
a base value calculated in relation to the fixed remunera-
tion of the individual beneficiary – may vary depending on
(3) The date of the Enel Shareholders’ Meeting that approved the 2019 LTI Plan pursuant to Article 2359 of the Civil Code, granting the Board of Directors all
powers necessary to implement the Plan.
(4) The date on which the Board of Directors approved the procedures and timing for granting the 2019 LTI Plan to the beneficiaries (taking account of the pro-
posal issued by the Nomination and Compensation Committee at its meeting of November 11, 2019).
(5) On the occasion of the approval of the financial statements of Enel SpA at December 31, 2021, the Company will verify the level of achievement of the per-
formance targets of the 2019 LTI Plan.
(6) The date of the Enel Shareholders’ Meeting that approved the 2020 LTI Plan pursuant to Article 2359 of the Civil Code, granting the Board of Directors all
powers necessary to implement the Plan.
(7) The date on which the Board of Directors approved the procedures and timing for granting the 2020 LTI Plan to the beneficiaries (taking account of the pro-
posal issued by the Nomination and Compensation Committee at its meeting of September 16, 2020).
(8) On the occasion of the approval of the financial statements of Enel SpA at December 31, 2022, the Company will verify the level of achievement of the per-
formance targets of the 2020 LTI Plan.
(9) Average Total Shareholder Return (TSR) of Enel and the EURO STOXX Utilities – EMU index is calculated for the three months preceding the start and end of
the performance period in order to neutalize any market volatility.
(10) Emissions from generation by Group plants.
371
Integrated Annual Report 2020 LTI PLANS (Long-Term Incentive Plans)
Vesting period
Payout of 30%(1)
Payout of 70%(1)
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
3-year performance period
Verify achievement
Deferred payment
(1) Nel caso di raggiungimento degli obiettivi di performance.
(1)
If performance targets are achieved.
In implementation of the authorization granted by the Sha-
the launch of a share buyback programs to support the LTI
reholders’ Meeting and in compliance with the relevant
Plans.
terms and conditions, the Board of Directors approved
Purchases authorized
Actual purchases
Number of shares
Total (euro)
Number of shares
Weighted average
price (euros per
share)
2019 LTI Plan (11)
2020 LTI Plan (13)
2,500,000
1,720,000
10,500,000
1,549,152 (12)
1,720,000 (14)
6.7779
7.4366
Total (euro)
10,499,999
12,790,870
As a result of the purchases made to support the LTI Plans,
The following information concerns the equity instruments
at December 31, 2020 Enel holds a total of. 3,269,152 tre-
granted in 2019 and 2020.
asury shares, equal to approximately 0.032% of the share
capital.
2020
2019
Number of
shares granted
Fair value per
share
Number
of shares
potentially
available for
award
Number of
shares granted
Fair value per
share
Number
of shares
potentially
available for
award
2019 LTI Plan
2020 LTI Plan
-
-
1,529,182
1,538,547
6.983
1,538,547
1,635,307
7.380
1,635,307
-
-
The fair value of those equity instruments is measured on
loss amounted to €5 million in 2020 (€0.3 million in 2019).
the basis of the market price of Enel shares at the grant
There have been no terminations or amendments involving
date(15).
either of the plans.
The total costs recognized by the Group through profit or
(11) On September 19, 2019 the Board of Directors approved the launch of a share buyback program to support the 2019 LTI Plan.
(12) Number of shares purchased in the period between September 23 and December 2, 2019 equivalent to approximately 0.015% of Enel’s share capital.
(13) On July 29, 2020 the Board of Directors approved the launch of a share buyback program to support the 2020 LTI Plan.
(14) Number of shares purchased in the period between September 3 and October 28, 2020 equivalent to approximately 0.017% of Enel’s share capital.
(15) For the 2019 LTI Plan, the grant date is November 12, 2019, i.e. the date of the meeting of the Board of Directors that approved the procedures and timing of
the grant under the 2019 LTI Plan to the beneficiaries.
For the 2020 LTI Plan, the grant date is September 17, 2020, i.e. the date of the meeting of the Board of Directors that approved the procedures and timing of
the grant under the 2020 LTI Plan to the beneficiaries.
372372
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements
50. Related parties
As an operator in the field of generation, distribution, tran-
Group’s controlling shareholder.
sport and sale of electricity and the sale of natural gas,
The table below summarizes the main types of transactions
Enel carries out transactions with a number of companies
carried out with such counterparties.
directly or indirectly controlled by the Italian State, the
Related party
Single Buyer
Relationship
Nature of main transactions
Fully controlled (indirectly) by the Ministry for the
Economy and Finance
Purchase of electricity for the enhanced protection
market
Cassa Depositi e Prestiti Group
Directly controlled by the Ministry for the Economy
and Finance
ESO - Energy Services Operator
Fully controlled (directly) by the Ministry for the
Economy and Finance
EMO - Energy Markets Operator
Fully controlled (indirectly) by the Ministry for the
Economy and Finance
Sale of electricity on the Ancillary Services Market
(Terna)
Sale of electricity transport services (Eni Group)
Purchase of transport, dispatching and metering
services (Terna)
Purchase of postal services (Poste Italiane)
Purchase of fuels for generation plants and natural
gas storage and distribution services (Eni Group)
Sale of subsidized electricity
Payment of A3 component for renewable resource
incentives
Sale of electricity on the Power Exchange (EMO)
Purchase of electricity on the Power Exchange for
pumping and plant planning (EMO)
Leonardo Group
Directly controlled by the Ministry for the Economy
and Finance
Purchase of IT services and supply of goods
In addition, the Group conducts essentially commercial
normal market terms and conditions, which in some ca-
transactions with associated companies or companies in
ses are determined by the Regulatory Authority for Energy,
which it holds non-controlling interests.
Networks and the Environment.
Finally, Enel also maintains relationships with the pension
funds FOPEN and FONDENEL, as well as Fondazione Enel
The following tables summarize transactions with related
and Enel Cuore, an Enel non-profit company devoted to
parties, associated companies and joint ventures outstan-
providing social and healthcare assistance.
ding at December 31, 2020 and December 31, 2019 and
All transactions with related parties were carried out on
carried out during the period.
373
Integrated Annual Report 2020
Single Buyer
EMO
-
-
-
808
-
-
2,038
2,059
-
6
-
-
38
183
-
-
ESO
295
-
-
-
3
-
-
-
Cassa Depositi e
Prestiti Group
Other
personnel
Total 2020
ventures
Overall total 2020
% of total
Key management
Associates and joint
Total in financial
statements
2,542
-
-
1,122
2,728
9
1
13
187
1
-
-
44
1
-
-
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group
Other
personnel Total at Dec. 31, 2020
ventures
2020
statements
% of total
Key management
Associates and joint
Overall total at Dec. 31,
Total in financial
-
-
-
-
-
-
-
-
-
554
-
-
-
-
-
-
-
35
-
9
-
-
-
-
83
-
-
250
-
-
-
-
15
-
84
-
-
-
-
746
-
-
-
-
-
-
-
569
-
63
625
4
-
89
748
-
15
13
157
102
-
-
29
1
2
-
6
-
-
5
1
13
83
36
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,832
1
-
5,219
2,813
199
1
13
-
-
1
648
158
625
10
-
89
1
28
346
193
104
2,136
1,144
1,144
206
9
62
166
145
3
-
58
21
215
189
6
359
151
21
19
69
15
9
-
-
-
4,038
10
62
5,385
2,958
202
1
71
21
863
190
164
984
161
21
108
2,205
16
37
346
193
104
62,623
2,362
2,763
25,049
18,298
2,202
(212)
4,485
5,159
1,236
12,046
5,113
3,578
49,519
6,191
6,345
3,168
12,859
1,275
11,651
6.4%
0.4%
2.2%
21.5%
16.2%
9.2%
-0.5%
1.6%
22.2%
1.7%
7.2%
3.7%
4.6%
2.0%
2.6%
0.3%
3.4%
17.1%
1.3%
0.3%
Millions of euro
Income statement
Revenue from sales and
services
Other income
Financial income
Electricity, gas and fuel
purchases
Costs for services and other
materials
Other operating costs
Net income/(expense) from
commodity derivatives
Financial expense
Millions of euro
Statement of financial
position
Other non-current financial
assets
Non-current financial
derivative assets
Trade receivables
Other current financial
assets
Other current assets
Long-term borrowings
Non-current contract
liabilities
Short-term borrowings
Current portion of long-
term borrowings
Trade payables
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
374374
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Income statement
Revenue from sales and
services
Other income
Financial income
Electricity, gas and fuel
purchases
Costs for services and other
materials
Other operating costs
Net income/(expense) from
commodity derivatives
Financial expense
Millions of euro
Statement of financial
position
assets
Other non-current financial
Non-current financial
derivative assets
Trade receivables
Other current financial
assets
Other current assets
Long-term borrowings
Non-current contract
liabilities
Short-term borrowings
Current portion of long-
term borrowings
Trade payables
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
2,038
2,059
-
-
-
-
6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
808
38
183
-
-
-
-
-
-
-
9
-
-
-
-
-
-
-
-
35
250
554
83
746
ESO
295
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
84
2,542
-
-
1,122
2,728
9
1
13
-
-
569
-
63
625
4
-
89
748
-
15
13
157
102
187
1
-
-
1
-
-
44
29
-
-
1
2
-
6
-
-
5
1
13
83
36
2
Single Buyer
EMO
Cassa Depositi e
Prestiti Group
Other
Key management
personnel
Total 2020
Associates and joint
ventures
Overall total 2020
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
3,832
1
-
5,219
2,813
199
1
13
206
9
62
166
145
3
-
58
4,038
10
62
5,385
2,958
202
1
71
62,623
2,362
2,763
25,049
18,298
2,202
(212)
4,485
6.4%
0.4%
2.2%
21.5%
16.2%
9.2%
-0.5%
1.6%
Single Buyer
EMO
ESO
Other
Cassa Depositi e
Prestiti Group
Key management
personnel Total at Dec. 31, 2020
Associates and joint
ventures
Overall total at Dec. 31,
2020
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
648
1
158
625
10
-
89
2,136
1
28
346
193
104
1,144
1,144
21
215
189
6
359
151
21
19
69
15
9
-
-
-
21
863
190
164
984
161
21
108
2,205
16
37
346
193
104
5,159
1,236
12,046
5,113
3,578
49,519
6,191
6,345
3,168
12,859
1,275
11,651
22.2%
1.7%
7.2%
3.7%
4.6%
2.0%
2.6%
0.3%
3.4%
17.1%
1.3%
0.3%
375
Integrated Annual Report 2020 Single Buyer
EMO
-
-
-
2,661
-
3
-
-
1,320
-
-
3,009
54
182
-
-
ESO
255
5
-
4
4
1
-
1
Cassa Depositi e
Prestiti Group
Other
personnel
Total 2019
ventures
Overall total 2019
% of total
Key management
Associates and joint
Total in financial
statements
2,733
1
1
1,372
2,338
4
11
14
183
-
-
-
70
-
-
-
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group
Other
personnel Total at Dec. 31, 2019
ventures
31, 2019
statements
% of total
Key management
Associates and joint
Overall total at Dec.
Total in financial
-
-
-
-
-
-
-
-
601
-
-
-
-
-
-
-
45
-
-
23
-
-
-
92
-
-
-
250
-
-
-
15
-
-
89
-
-
-
793
-
-
-
-
-
-
-
573
-
-
69
715
2
89
726
-
-
16
354
125
9
-
13
-
-
1
-
6
-
18
-
1
9
164
35
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,491
6
1
7,046
2,466
190
11
15
646
-
-
-
182
715
8
89
-
1
25
768
160
13
2,230
313
10
87
143
151
45
-
31
15
250
143
8
27
1
-
-
61
38
8
5
-
-
-
4,804
16
88
7,189
2,617
235
11
46
15
896
8
27
183
715
151
8
39
30
768
160
13
89
2,291
77,366
2,961
1,637
38,082
18,836
2,693
(733)
4,518
1,383
13,083
4,065
4,305
3,115
54,174
6,301
3,409
12,960
3,554
1,328
13,161
6.2%
0.5%
5.4%
18.9%
13.9%
8.7%
-1.5%
1.0%
1.1%
6.8%
0.2%
0.6%
5.9%
1.3%
2.4%
2.6%
17.7%
0.2%
2.9%
0.2%
Millions of euro
Income statement
Revenue from sales and
services
Other income
Other financial income
Electricity, gas and fuel
purchases
Costs for services and other
materials
Other operating costs
Net income/(expense) from
commodity derivatives
Financial expense
Millions of euro
Statement of financial
position
Non-current financial
derivative assets
Trade receivables
Current financial derivative
assets
Other current financial
assets
Other current assets
Long-term borrowings
Non-current contract
liabilities
Current portion of long-
term borrowings
Trade payables
Current financial derivative
liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
376376
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Millions of euro
Income statement
Revenue from sales and
services
Other income
Other financial income
Electricity, gas and fuel
purchases
Costs for services and other
materials
Other operating costs
Net income/(expense) from
commodity derivatives
Financial expense
Millions of euro
Statement of financial
position
Non-current financial
derivative assets
Trade receivables
Current financial derivative
assets
assets
Other current financial
Other current assets
Long-term borrowings
Non-current contract
liabilities
Current portion of long-
term borrowings
Trade payables
Current financial derivative
liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
2,661
3,009
-
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,320
54
182
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
23
250
601
92
793
ESO
255
5
-
4
4
1
-
1
-
15
89
-
-
-
-
-
-
-
-
-
-
-
2,733
1
1
1,372
2,338
4
11
14
573
-
-
-
2
69
715
89
726
-
-
16
354
125
9
183
-
-
-
-
-
-
70
-
13
-
-
1
-
6
-
18
-
1
9
164
35
4
Single Buyer
EMO
Cassa Depositi e
Prestiti Group
Other
Key management
personnel
Total 2019
Associates and joint
ventures
Overall total 2019
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
4,491
6
1
7,046
2,466
190
11
15
313
10
87
143
151
45
-
31
4,804
16
88
7,189
2,617
235
11
46
77,366
2,961
1,637
38,082
18,836
2,693
(733)
4,518
6.2%
0.5%
5.4%
18.9%
13.9%
8.7%
-1.5%
1.0%
Single Buyer
EMO
ESO
Other
Cassa Depositi e
Prestiti Group
Key management
personnel Total at Dec. 31, 2019
Associates and joint
ventures
Overall total at Dec.
31, 2019
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
646
-
-
182
715
8
89
2,230
-
1
25
768
160
13
1,383
13,083
4,065
4,305
3,115
54,174
6,301
3,409
12,960
3,554
1,328
13,161
15
250
8
27
1
-
143
-
61
8
38
5
-
-
-
15
896
8
27
183
715
151
89
2,291
8
39
30
768
160
13
1.1%
6.8%
0.2%
0.6%
5.9%
1.3%
2.4%
2.6%
17.7%
0.2%
2.9%
0.2%
377
Integrated Annual Report 2020 With regard to disclosures on the remuneration of key ma-
nagement personnel, provided for under IAS 24, please see
Section I “Remuneration Policy for the Members of the Bo-
ard of Directors, the General Manager, the Executives with
51. Government grants - Disclosure pursuant
to Article 1, paragraphs 125-129, of Law
124/2017
Pursuant to Article 1, paragraphs 125-129, of Law 124/2017
Strategic Responsibilities and the Members of the Board
as amended, the following provides information on gran-
of Statutory Auditors. Procedures for the Adoption and
ts received from Italian public agencies and bodies, as well
Implementation of the Policy” of the Remuneration Report
as donations by Enel SpA and the fully consolidated sub-
published on the Enel website at https://www.enel.com/in-
sidiaries to companies, individuals and public and private
vestors/governance/remuneration.
entities. The disclosure comprises: (i) grants received from
Italian public entities/State entities; and (ii) donations made
In November 2010, the Board of Directors of Enel SpA ap-
by Enel SpA and Group subsidiaries to public or private par-
proved (and subsequently updated) a procedure governing
ties resident or established in Italy.
the approval and execution of transactions with related par-
The following disclosure includes payments in excess of
ties carried out by Enel SpA directly or through subsidiaries.
€10,000 made by the same grantor/donor during 2020,
The procedure (available at https://www.enel.com/investors/
even if made through multiple financial transactions. They
bylaws-rules-and-policies/transactions-with-related-par-
are recognized on a cash basis.
ties/) sets out rules designed to ensure the transparency and
Pursuant to the provisions of Article 3-quater of Decree
procedural and substantive propriety of transactions with
Law 135 of December 14, 2018, ratified with Law 12 of Fe-
related parties. It was adopted in implementation of the pro-
bruary 11, 2019, for grants received, please refer to the in-
visions of Article 2391-bis of the Italian Civil Code and the im-
formation contained in the National Register of State Aid
plementing regulations issued by CONSOB. In 2020, no tran-
referred to in Article 52 of Law 234 of December 24, 2012.
sactions were carried out for which it was necessary to make
the disclosures required in the rules on transactions with re-
lated parties adopted with CONSOB Resolution no. 17221 of
March 12, 2010, as amended.
Grants received in millions of euro
Financial institution/
Grantor
Min. Education, Universities
& Research (MIUR)
Donations made in millions of euro
Beneficiary
Amount Notes
Enel X Srl
Instalment of grant received for WinSic4AP project, funded under
the ECSEL-2016-1-RIA call
0.03
0.03 Total
Beneficiary
Amount Notes
Elettrici senza frontiere
Onlus
0.04 Donation for development energy
Enel Cuore Onlus
1 2020 grant
European University
Institute
Fondazione Accademia
Nazionale “Santa Cecilia”
Fondazione Centro Studi
Enel
0.11 Donation to support research
0.65 2020 donation for cultural projects
0.05 2020 donation
Fondazione MAXXI
0.6 2020 donation for cultural projects
Fondazione Teatro del
Maggio Musicale
OECD International Energy
Agency (IEA)
Responsible Business
Alliance Foundation
0.4 2020 donation for cultural projects
0.15 2019 and 2020 donation
0.05 2020 donation
Donor
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
378378
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Enel SpA
Enel SpA
Enel X Srl
Stichting Global Reporting
Initiative
Università Commerciale
Luigi Bocconi
0.04 2020 donation
0.13 Donation to support study grants
Enel Cuore Onlus
1 Donation under Article 66 of Decree 18 of March 17, 2020
Enel Produzione SpA
Municipality of Gualdo
Cattaneo
0.02 Coronavirus emergency - Civil Protection
Enel Produzione SpA
Municipality of Porto Tolle
0.03 Donation for purchase of school equipment
Enel Produzione SpA
Amatrice Alpinist Club
0.03 Donation to Amatrice Alpinist Club for three small brick huts
Enel Produzione SpA
Municipality of Brindisi
Donation for July 1 - August 31 period of 130 meals per day for
persons experiencing financial difficulty resident in the city
0.08
Enel Produzione SpA
Enel Produzione SpA
Autorità di Sistema
Portuale del Mare Adriatico
Meridionale - Porto di
Brindisi (Faro Porto)
Municipality of
Civitavecchia
Donation for installation and connection of a RACON in the outer
port of Brindisi
0.08
0.07 Donation of an artistic lighting installation
Enel Produzione SpA
Enel Foundation Onlus
0.16 Donation - 50% of balance of 2019 grant Enel Foundation
Enel Produzione SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Cuore Onlus
Enel Cuore Onlus
Fondazione Centro Studi
Enel
1 Article 66 of Decree 18 of March 17, 2020 COVID-19
1 Enel Cuore Onlus grant - COVID-19 emergency
0.05 2020 donation
Legambiente Onlus
0.03 3° Sal Legambiente - Alleva La Speranza
Progetto Itaca Roma
0.01 Donation UPSKILLING 4 AN H project
Progetto Itaca Roma
0.01 Donation UPSKILLING 4 AN H project
Enel Italia SpA
Ashoka Italy Onlus
Enel Italia SpA
Municipality of Matera
Enel Italia SpA
Municipality of
Civitavecchia
Grant for creation of ecosystems for territorial transformation and
development (“Puglia fa sistema”)
0.13
Donation of an artistic lighting installation within the Palombaro
Lungo cistern
0.06
0.05 Donation of an artistic lighting installation
Enel Italia SpA
Municipality of Piegaro (PG)
0.04
Enel Italy contributed design and construction of a 32 kW
photovoltaic plant on the roof of the “Luigi Boldrini” Museum of
Paleontology
Enel Italia SpA
Municipality of Tolfa (RM)
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Moige - Movimento italiano
genitori Onlus
ASES - Agricoltori,
Sostenibilità E Sviluppo
(Associazione non profit)
Fondazione Teatro alla
Scala
Società Cooperativa
Sociale Camelot Onlus
(Progetto WE)
e-distribuzione SpA
Enel Cuore Onlus
e-distribuzione SpA
e-distribuzione SpA
e-distribuzione SpA
Fondazione Centro Studi
Enel
Fondazione Centro Studi
Enel
Comando dei Vigili del
Fuoco di Belluno
e-distribuzione SpA
Azienda Sanitaria Locale BT
e-distribuzione SpA
Municipality of Crema
Grant for upgrade of gym facilties for use as emergency shelter
under provisions of town civil protection plan
0.01
Enel collaborated with Moige to counter cyber risks, bullying
and cyber bullying in all its forms. Part of pursuit Sustainable
Development Goals 4 (Quality Education) and 10 (Reduced
Inequalities)
0.06
0.02 Donation for #lanaturanonsiferma project
0.6 Donation for 2020-2023
Donation for the implementation of a social innovation project with
the aim of contributing to increasing the capacity for cooperation
between citizens and public-private entities in a specific territory, for
the implementation of projects capable of creating long-term value
0.03
Donation to support initiatives to counter COVID-19 emergency -
pursuant to Cure Italy Decree of March 16, 2020
9
1.66
1.4
0.05
0.02
0.03
50% balance of 2019 donation
50% of 2020 donation
Donatino of 66 generators to Belluno Fire Department
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
379
Integrated Annual Report 2020 e-distribuzione SpA
e-distribuzione SpA
e-distribuzione SpA
e-distribuzione SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Energia SpA
Enel Global Trading SpA
Enel Global Trading SpA
Soggetto Attuatore
Emergenza COVID-19
Calabria
Azienda Ospedaliera
Regionale San Carlo
Azienda Ospedaliera di
Perugia
A.S.M. Azienda Sanitaria
Locale Di Matera
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
Donation for power grid connection of healthcare facilities involved
in fighting COVID-19 pandemic
0.04
0.05
0.05
0.09
Enel Cuore Onlus
8 Article 66 of Decree 18 of March 17, 2020 COVID-19
Protezione Civile Regione
Sicilia
Federazione Nazionale
Ordine Professioni
Infermieristiche
Fondazione Centro Studi
Enel
Enel Cuore Onlus
Enel Cuore Onlus
Enel Cuore Onlus
Enel Cuore Onlus
Regione Sicilia -
Dipartimento Protezione
Civile
Enel Cuore Onlus
Enel Cuore Onlus
0.07 Donation to Civil Protection of Sicily
COVID-19 emergency - donation for the purchase of personal
protective equipment and material for sanitization to protect nurses.
0.13
0.86 Balance of 2019 donation
0.32 20% payment on account of 2019 grant
1.28 80% balance of 2018 grant
0.13 Donation enelpremia 3.0 2016/2017/2018 editions
0.04 2019 assocation dues
COVID-19 emergency - donation for the purchase of personal
protective equipment and material for sanitization, especially for
healthcare personnel, and for the purchase of machinery and
equipment for new intensive/semi-intensive care beds
0.06
0.04 2020 grant to support and develop organization’s projects
1 COVID-19 emergency donation
32.11 Total
52. Contractual commitments and guarantees
The commitments entered into by the Enel Group and the
guarantees given to third parties are shown below.
Millions of euro
Guarantees given:
- sureties and other guarantees granted to third parties
Commitments to suppliers for:
- electricity purchases
- fuel purchases
- various supplies
- tenders
- other
Total
TOTAL
at Dec. 31, 2020
at Dec. 31, 2019
Change
11,451
67,400
41,855
1,511
3,604
4,383
118,718
130,169
11,078
97,472
48,016
1,034
3,522
3,391
153,435
164,513
373
(30,072)
(6,161)
477
82
957
(34,717)
(34,344)
Compared with December 31, 2019, the decrease of
The decrease of €6,161 million in commitments for “fuel
€30,072 million in commitments for “electricity purcha-
purchases” mainly regards to gas supplies, especially in
ses” million is essentially attributable to companies in Latin
Spain and Italy, and was affected by the decline in demand
America Region, in particular in Brazil, and mainly reflects
for natural gas and gas prices, as well as exchange rate ef-
exchange rate effects, as well as differences in the state of
fects.
progress of outstanding contracts.
380380
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements For more details on the expiry of commitments and gua-
With a subsequent ruling, the Court of Appeal of Lec-
rantees, please see the section “Commitments to purchase
ce granted the appeal lodged by the Province of Brindisi
commodities” in note 45.
against the ruling, acknowledging that a material error had
been made and therefore recognizing the generic entitle-
53. Contingent assets and liabilities
The following reports the main contingent assets and lia-
ment of the Province to damages. The defendants filed an
appeal against ruling with the Court of Cassation on June
bilities at December 31, 2020, which are not recognized in
22, 2019. The hearing initially scheduled for April 24, 2020
the consolidated financial statements as they do not meet
was postponed until October 1, 2020 owing to the CO-
the requirements provided for in IAS 37.
VID-19 health emergency. On that date, the Court of Cas-
Brindisi Sud thermal generation plant - Criminal
proceedings against Enel employees
A criminal proceeding was held before the Court of Brindisi
sation voided the ruling of the Court of Appeal of Lecce,
with referral to another section of the same court for a new
proceeding.
Criminal proceedings are also under way before the Cour-
concerning the Brindisi Sud thermal plant in which a num-
ts of Reggio Calabria and Vibo Valentia against a number
ber of employees of Enel Produzione – cited as a liable par-
of employees of Enel Produzione for the offense of illegal
ty in civil litigation – have been accused of causing criminal
waste disposal in connection with alleged violations con-
damage and dumping hazardous substances with regard
cerning the disposal of waste from the Brindisi plant. Enel
to the alleged contamination of land adjacent to the plant
Produzione has not been cited as a liable party for civil da-
with coal dust as a result of actions between 1999 and
mages.
2011. At the end of 2013, the accusations were extended
The criminal proceedings before the Court of Reggio Ca-
to cover 2012 and 2013. As part of the proceeding, inju-
labria ended with the hearing of June 23, 2016. The court
red parties, including the Province and City of Brindisi, have
acquitted nearly all of the Enel defendants of the main
submitted claims for total damages of about €1.4 billion.
charges because no crime was committed. Just one case
In its decision of October 26, 2016, the Court of Brindisi:
was dismissed under the statute of limitations. Similarly, all
(i) acquitted nine of the thirteen defendants (all employees
of the remaining charges involving minor offenses were di-
of Enel Produzione) for not having committed the offense;
smissed under the statute of limitations. The proceedings
(ii) ruled that it did not have to proceed as the offense was
before the Court of Vibo Valentia are still pending and are
time-barred for two of the defendants; and (iii) convicted
currently in the testimony phase, as the court ruled that
the remaining two defendants, sentencing them with all
the offenses could not be dismissed under the statute of
the allowances provided for by law to nine months’ impri-
limitations. At a hearing on February 24, 2020, the Prose-
sonment. With regard to payment of damages, the Court’s
cution’s expert witness testified. Following the postpone-
ruling also: (i) denied all claims of public parties and asso-
ment of hearings in all criminal and civil proceedings as part
ciations acting in the criminal proceeding to recover dama-
of the measures to counter COVID-19, the hearings in this
ges; and (ii) granted most of the claims filed by the private
case resumed on September 7, 2020, when a number of
parties acting to recover damages, referring the latter to the
the witnesses of the co-defendants testified. On October
civil courts for quantification without granting a provisional
22, 2020, an additional hearing was held to hear witness
award. The convicted defendants and the civil defendant,
testimony. Arguments were initially scheduled to continue
Enel Produzione, as well as by one of the two employees
on November 19, 2020. However, due to the persistence of
for whom the expiry of the period of limitations had been
the health emergency, the hearing was then postponed to
declared, appealed the conviction. In a ruling issued on Fe-
January 14, 2021, the date on which the legal counsel of
bruary 8, 2019, the Lecce Court of Appeal: (i) confirmed the
the defendants were heard. The arguments of the public
trial court ruling regarding the criminal convictions of two
prosecutor and the civil parties were heard on February 4,
Enel Produzione executives; (ii) denied the claims for da-
2021, while the discussion of the defense being scheduled
mages of some private appellants; (iii) granted some claims
for March 18 and 25, 2021.
for damages, which had been denied in the trial court, re-
ferring the parties, like the others – whose claims had been
granted by the trial court – to the civil courts for quantifi-
cation, without granting a provisional award; (iv) confirmed
Enel Energia and Servizio Elettrico Nazionale anti-
trust proceeding
On May 11, 2017, the Competition Authority announced
for the rest the ruling of the Court of Brindisi except for
the beginning proceedings for alleged abuse of a domi-
extending litigation costs to the Province of Brindisi, which
nant position against Enel SpA (Enel), Enel Energia SpA (EE)
had not been awarded damages at either the trial court or
and Servizio Elettrico Nazionale SpA (SEN), with the con-
on appeal.
comitant performance of inspections. The proceeding was
381
Integrated Annual Report 2020 initiated on the basis of complaints filed by the Italian As-
27, 2019, the Competition Authority set the recalculated
sociation of Energy Wholesalers and Traders (AIGET) and
penalty at €27,529,786.46.
the company Green Network SpA (GN), as well as a number
The rulings of the Regional Administrative Court were chal-
of complaints from individual consumers. According to the
lenged on appeal before the Council of State by the three
charges filed by the Competition Authority, the Enel Group,
Enel Group companies and a precautionary request was
as an integrated participant in the distribution and sale of
presented to the Council of State asking for the suspen-
power on the regulated market and at a crucial phase of
sion of the measure for recalculating the penalty levied by
the liberalization of retail markets for residential and non-
the Competition Authority. At the pre-trial hearing, held on
residential low-voltage customers, engaged in an exclusio-
February 20, 2020, this petition was not discussed in consi-
nary strategy, using a series of non-replicable commercial
deration of the supervening action of the Council of State
stratagems capable of hindering its non-integrated com-
to set a date for the hearing of the arguments in the dispu-
petitors to the benefit of the Group company operating on
te for May 21, 2020.
the free market (EE).
With an order of July 20, 2020, the Council of State (ac-
On December 20, 2018 the Competition Authority issued
cepting a subordinate petition from the counsel defending
its final ruling, subsequently notified to the parties on Ja-
the three companies), after the joinder of the three judg-
nuary 8, 2019, with which it levied a fine on Enel SpA, SEN
ments, suspended the ruling and ordered that the issue be
and EE of €93,084,790.50, for abuse of a dominant position
submitted for a preliminary ruling before the Court of Ju-
in violation of Article 102 of the Treaty on the Functioning of
stice of the European Union (CJEU) pursuant to Article 267
the European Union (TFEU).
of the TFEU, formulating a number of questions aimed at
The disputed conduct consisted in the adoption of a stra-
clarifying the interpretation of the concept of “abuse of a
tegy to exclude competitors from the free market for retail
dominant position” to be applied to the present case. On
power supply on the part of the Group’s operating compa-
September 11 and 18, 2020, the CJEU notified EE and SEN
nies, in particular EE, who used the privacy consent given by
and Enel, respectively, of the initiation of a proceeding pur-
consumers to channel their offers within the Group in order
suant to Article 267 of the TFEU. The companies then filed
to contact SEN customers who were still being served on
briefs and are now waiting for the proceeding to continue.
the regulated market.
Pending the opening of the proceedings before the CJEU,
With regard to other allegations made with the measure
Enel, EE and SEN filed an additional precautionary petition
to initiate the proceeding, concerning the organization and
to the Council of State asking for the suspension of the en-
performance of sales activities at physical locations (Enel
forceability of the contested ruling of the Regional Admi-
Points and Enel Point Partner Shops) and winback policies
nistrative Court and the measure recalculating the penalty.
reported by GN, the Competition Authority reached the
Following the precautionary hearing on November 11, 2020,
conclusion that the preliminary findings did not provide
with three separate orders with identical content – publi-
sufficient evidence of any abusive conduct on the part of
shed on November 16 – the Council of State granted the
Enel Group companies.
request for suspension filed by the Enel companies and, as
The companies involved filed an appeal to void the ruling
a guarantee of payment of the penalty in the event of an
before the Lazio Regional Administrative Court. The deci-
unfavorable final ruling for Enel, required the issue of a first
sion of that court, filed on October 17, 2019, partially upheld
demand surety in favor of the Competition Authority in an
the appeals filed by SEN and EE, declaring that the abusive
amount equal to that of the penalty suspended with the
conduct had been engaged in for a period of 1 year and
precautionary orders.
9 months, rather than the original period of 5 years and
Subsequently, with a separate ruling, the Council of State
5 months referred to in the penalty ruling of the Compe-
also set the date of the final trial session of the appeal for
tition Authority and requiring that authority to recalculate
November 11, 2021, believing that the suspended procee-
the penalty in accordance with the criteria specified in the
ding could be resumed by that date. The Company is the-
ruling. At the same time, the Regional Administrative Court
refore still awaiting the final decision.
denied Enel’s appeal concerning solely the reasons for the
alleged joint and several liability of the Parent with SEN and
EE, therefore without an autonomous financial impact on
BEG litigation
Following an arbitration proceeding initiated by BEG SpA in
the recalculation of the penalty. With a measure November
Italy, Enelpower SpA obtained a ruling in its favor in 2002,
382382
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements which was upheld by the Court of Cassation in 2010, which
Following the beginning of the case before the TGI, again
entirely rejected the claim for damages with regard to alle-
at the initiative of ABA, between 2012 and 2013 Enel Fran-
ged breach by Enelpower of an agreement concerning the
ce was served with two “Saise Conservatoire de Créances”
construction of a hydroelectric power station in Albania.
(orders for the precautionary attachment of receivables) to
Subsequently, BEG, acting through its subsidiary Albania
conserve any receivables of Enel in respect of Enel France.
BEG Ambient Shpk (ABA), an Albanian company, filed suit
On January 29, 2018, the TGI issued a ruling in favor of Enel
against Enelpower and Enel SpA concerning the matter,
and Enelpower, denying ABA the recognition and enforce-
obtaining a ruling from the District Court of Tirana, upheld
ment of the Tirana court’s ruling in France for lack of the
by the Albanian Court of Cassation, ordering Enelpower
requirements under French law for the purposes of gran-
and Enel to pay tortious damages of about €25 million for
ting exequatur. Among other issues, the TGI ruled that: (i)
2004 as well as an unspecified amount of tortious damages
the Albanian ruling conflicted with an existing decision, in
for subsequent years. Following the ruling, ABA demanded
this case the arbitration ruling of 2002 and that (ii) the fact
payment of more than €430 million from Enel.
that BEG sought to obtain in Albania what it was not able
With a ruling of June 16, 2015, the first level of adjudication
to obtain in the Italian arbitration proceeding, resubmitting
was completed in the additional suit lodged by Enelpower
the same claim through ABA, represented fraud. ABA ap-
and Enel with the Court of Rome asking the Court to ascer-
pealed the ruling. The hearing before the Paris Court of Ap-
tain the liability of BEG for having evaded compliance with
peal was held on February 2, 2021 and a ruling is pending.
the arbitration ruling issued in Italy in favor of Enelpower
through the legal action taken by ABA. With this action,
The Netherlands
Enelpower and Enel asked the Court to find BEG liable and
At the end of July 2014, ABA filed suit with the Court of
order it to pay damages in the amount that they could be
Amsterdam to render the ruling of the Albanian court en-
required to pay to ABA in the event of the enforcement of
forceable in the Netherlands. On June 29, 2016, the court
the ruling issued by the Albanian courts. With the ruling, the
filed its judgment, which: (i) ruled that the Albanian ruling
Court of Rome found that BEG did not have standing to be
meet the requirements for recognition and enforcement
sued, or alternatively, that the request was not admissible
in the Netherlands; (ii) ordered Enel and Enelpower to pay
for lack of an interest for Enel and Enelpower to sue, as the
€433,091,870.00 to ABA, in addition to costs and ancillary
Albanian ruling had not yet been declared enforceable in
charges of €60,673.78; and (iii) denied ABA’s request to de-
any court. The Court ordered the setting off of court costs.
clare the ruling provisionally enforceable.
Enel and Enelpower appealed the ruling before the Rome
On June 29, 2016, Enel and Enelpower filed appeals against
Court of Appeal, asking that it be overturned in full. The he-
the first-level ruling of the Court of Amsterdam issued on
aring scheduled for February 18, 2021 was postponed until
the same date. On September 27, 2016, ABA also appealed
November 11, 2021.
the court’s ruling of June 29, 2016, to request the reversal
On November 5, 2016, Enel and Enelpower filed a petition
of its partial loss on the merits. On April 11, 2017, the Am-
with the Albanian Court of Cassation, asking for the ruling
sterdam Court of Appeal granted the request of Enel and
issued by the District Court of Tirana on March 24, 2009 to
Enelpower to join to two pending appeals.
be voided. The proceeding is still pending.
In a ruling of July 17, 2018, the Amsterdam Court of Appeal
upheld the appeal advanced by Enel and Enelpower, ruling
Proceedings undertaken by Albania BEG Ambient Shpk
that the Albanian judgment cannot be recognized and en-
(ABA) to obtain enforcement of the ruling of the District
forced in the Netherlands. The Court of Appeal found that
Court of Tirana of March 24, 2009
the Albanian decision was arbitrary and manifestly unrea-
ABA had initiated two proceedings requesting recognition
sonable and therefore contrary to Dutch public order. For
and enforcement of the Albanian ruling before the courts
these reasons, the court did not consider it necessary to
of the State of New York and Ireland, which both ruled in
analyze the additional arguments of Enel and Enelpower.
favor of Enel and Enelpower, respectively, on February 23
The proceeding before the Court of Appeal continued with
and February 26, 2018. Accordingly, there are no lawsuits
regard to the subordinate question raised by ABA in the ap-
pending in Ireland or New York State.
peal proceedings, with which it is asking the court to rule
France
on the merits of the dispute in Albania and in particular the
alleged non-contractual liability of Enel and Enelpower in
In February 2012, ABA filed suit against Enel and Enelpower
the failure to build the plant in Albania. On December 3,
with the Tribunal de Grande Instance in Paris (TGI) in order
2019, the Amsterdam Court of Appeal issued a ruling in
to render the ruling of the Albanian court enforceable in
which it quashed the trial court judgment of June 29, 2016,
France. Enel SpA and Enelpower SpA challenged the suit.
rejecting any claim made by ABA. The Court came to this
383
Integrated Annual Report 2020 conclusion after affirming its jurisdiction over ABA’s subor-
30, 2018, it was learned that Gas Natural had appealed the
dinate claim and re-analyzing the merits of the case under
decision of the Commission.
Albanian law. Enel and Enelpower are therefore not liable to
pay any amount to ABA, which was in fact ordered by the
Court of Appeal to reimburse the appellant companies for
Bono Social - Spain
With the rulings of October 24 and 25, 2016 and November
the losses incurred in illegitimate conservative seizures, to
2, 2016, the Spanish Supreme Court declared Article 45.4
be quantified as part of a specific procedure, and the costs
of the Electricity Industry Law no. 24 of December 26, 2013
of the trial and appeal proceedings. On March 3, 2020, ABA
void for incompatibility with Directive 2009/72/EC of the
filed an appeal with the Supreme Court of the Netherlands
European Parliament and of the Council of July 13, 2009,
against the ruling of the Court of Appeal. On April 3, 2020,
granting the appeals filed by Endesa against the obligation
Enel and Enelpower appeared before the Supreme Court.
to finance the “Bono Social” (Social Bonus) mechanism.
Following the exchange of briefs between the parties, on
The Supreme Court recognized Endesa’s right to receive all
July 17, 2020 the Supreme Court ordered the Advocate Ge-
amounts that had been paid to users, in addition to legal in-
neral to issue an opinion on the case. On February 5, 2021,
terest (equal to about €214 million), under the “Bono Social”
the Advocate General issued an opinion favorable to Enel
system, provided for in the law declared void by the Supre-
and Enelpower, calling for the denial the appeal filed by
me Court. The government challenged these rulings of the
ABA. On February 19, 2021, ABA submitted a response to
Supreme Court, requesting that they be overturned, but
the opinion of the Advocate General. The issuance of the
the related appeals were denied. Subsequently, the gover-
decision is pending.
Luxembourg
nment initiated two proceedings before the Constitutional
Court requesting the reopening of the Supreme Court pro-
ceedings so that the latter may ask for a preliminary ruling
In Luxembourg, again at the initiative of ABA, J.P. Morgan
from the European Court of Justice (CJEU). The Constitutio-
Bank Luxembourg SA was also served with an order for the
nal Court granted the appeals and a preliminary ruling on
precautionary attachment of any receivables of Enel SpA.
the petition before the CJEU is pending. The government
In parallel ABA filed a claim to obtain enforcement of the
has not requested the repayment of any sum so far.
ruling of the Court of Tirana in that country. The proceeding
The CJEU had initially set the date for oral arguments of
is still under way and briefs are being exchanged between
the preliminary question as October 8, 2020. Following the
the parties. No ruling has been issued.
adoption of COVID-19 containment measures, the CJEU
Environmental incentives - Spain
Following the Decision of the European Commission of No-
canceled this hearing, replacing it with the submission of
written arguments. All parties, including Endesa, presented
their respective written arguments by the deadline of No-
vember 27, 2017 on the issue of environmental incentives
vember 13, 2020.
for thermal power plants, the European Commission’s Di-
rectorate-General for Competition opened an investiga-
tion pursuant to Article 108, paragraph 2, of the Treaty on
“Endesa I” industrial relations dispute - Spain
After a series of meetings of the Comisión Negociadora of
the Functioning of the European Union (TFEU) in order to
the 5th Endesa Collective Bargaining Agreement (Comisión
assess whether the environmental incentive for coal power
Negociadora) which began in October 2017 and continued
plants provided for in Order ITC/3860/2007 represents
throughout 2018, in view of the impossibility of reaching
State aid compatible with the internal market. According
an agreement between the social partners, Endesa notified
to a literal interpretation of that Decision, the Commis-
the workers and their union representatives that, with effect
sion reached the preliminary conclusion that the incentive
from January 1, 2019, the 4th Collective Bargaining Agree-
in question would constitute State aid pursuant to Article
ment must be considered terminated under the terms of
107, paragraph 1, of the TFEU, expressing doubts about the
the “framework guarantee contract” and the “agreement
compatibility of the incentive with the internal market while
on the voluntary suspension or resolution of employment
recognizing that the incentives are in line with the Europe-
contracts in the period 2013-2018”, applying from that date
an Union’s environmental policy. On April 13, 2018, Endesa
the provisions of general labor law, as well as the applicable
Generación SA, acting as an interested third party, submit-
legal criteria established in the matter.
ted comments contesting this interpretation, while on July
Despite the resumption of negotiations within the Comi-
384384
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements sión Negociadora in February 2019, the interpretative dif-
ferences between Endesa and the trade union represen-
“Endesa II” industrial relations dispute - Spain
On December 30, 2020, the Audiencia Nacional notified
tatives regarding the effects of the resolution of the 4th
Endesa a petition for a “collective dispute” initiated by
Collective Bargaining Agreement with regard, in particular,
three trade unions with minority representation filed on
to the social benefits granted to retired personnel, led to
December 16, 2020 concerning the cancellation of some
the initiation of a suit by the unions having representation
“derogatory provisions” of the 5th Endesa Collective Bar-
in the company. On March 13, 2019 a hearing was held be-
gaining Agreement. The plaintiffs claim that the contested
fore the court of first instance, which on March 26, 2019,
“derogatory provisions” would imply the illegitimate abo-
issued a ruling in favor of Endesa, upholding the company’s
lition of social benefits and economic rights of workers.
position concerning the legitimacy of abolishing certain
Endesa considers these provisions to be fully legitimate, in
social benefits for retired personnel as a consequence of
line with the arguments made during proceeding concer-
the termination of the 4th Endesa Collective Bargaining
ning the reduction of social benefits for retired personnel
Agreement. The unions appealed this decision before the
(ruling of the court of first instance of March 26, 2019, now
Supreme Court, while the initial ruling remains provisio-
under appeal before the Supreme Court). The conciliation
nally enforceable. On June 19, 2019, Endesa submitted its
hearing is scheduled for June 23, 2021.
defense. In order to submit the dispute to arbitration, in
December 2019, Endesa’s largest union agreed to waive its
appeal before the Supreme Court against the ruling of the
Furnas-Tractebel litigation - Brazil
In 1998 the Brazilian company CIEN (now Enel CIEN) signed
court of first instance of March 26, 2019. The other trade
an agreement with Tractebel for the delivery of electrici-
unions involved refused to join the arbitration proceeding,
ty from Argentina through its Argentina-Brazil intercon-
electing to go ahead with the proceedings before the Su-
nection line. As a result of Argentine regulatory changes
preme Court.
introduced as a consequence of the economic crisis in
On January 21, 2020, the arbitration award was issued, with
2002, CIEN was unable to make the electricity available to
the amendment of the corresponding parts of the 5th En-
Tractebel.
desa Collective Bargaining Agreement, which was subse-
In October 2009, Tractebel sued CIEN, which submitted
quently signed by the social partners. It entered force on
its defense. CIEN cited force majeure as a result of the Ar-
January 23, 2020. On the same date, Endesa also signed
gentine crisis as the main argument in its defense. Out of
two further collective bargaining agreements (a “fra-
court, the Tractebel has indicated that it plans to acquire
mework guarantee contract” and an “agreement on volun-
30% of the interconnection line involved in the dispute. On
tary measures to suspend or terminate employment con-
February 14, 2019, CIEN received notice of an order begin-
tracts”) with all the unions present in the company. On June
ning expert witness operation, which is still pending. The
17, 2020, 5th Endesa Collective Bargaining Agreement was
amount involved in the dispute is estimated at about R$118
published in the Spanish Official Journal (Boletín Oficial del
million (about €28 million), plus unspecified damages.
Estado), taking full effect.
For analogous reasons, in May 2010 Furnas had also filed
In view of the foregoing, the proceedings before the Su-
suit against CIEN for failure to deliver electricity, requesting
preme Court continue at the request of the three minority
payment of about R$520 million (about €124 million), in
unions that had initially initiated the action together with
addition to unspecified damages, seeking to acquire ow-
the most representative union.
nership (in this case 70%) of the interconnection line. The
In parallel, numerous individual actions have been filed by
proceeding was decided in CIEN’s favor with a ruling of the
retired staff and former employees who had agreed to
Tribunal de Justiça with a definitive ruling of October 18,
participate in termination incentive agreements in order
2019, which denied all of the claims of Furnas.
to obtain judicial confirmation that the termination of the
4th Endesa Collective Bargaining Agreement did not affect
them. Currently, the majority of these proceedings have
Cibran litigation - Brazil
Companhia Brasileira de Antibióticos (Cibran) has filed six
been suspended or are being suspended, pending the de-
suits against the Enel Group company Ampla Energia e
finition of the collective action pending before the Supre-
Serviços SA (Ampla)(16) to obtain damages for alleged losses
me Court, on whose outcome these proceedings depend.
incurred as a result of the interruption of electricity servi-
ce by the Brazilian distribution company between 1987 and
(16) The trading name of Ampla is Enel Distribuição Rio de Janeiro.
385
Integrated Annual Report 2020 2002, in addition to non-pecuniary damages. The Court
do not specifically identify the grids governed by the agre-
ordered a unified technical appraisal for those cases, the
ements, which has prompted a number of the cooperatives
findings of which were partly unfavorable to Ampla. The lat-
to sue Coelce asking for, among other things, a revision of
ter challenged the findings, asking for a new study, which
the fees agreed in the contracts.
led to the denial of part of Cibran’s petitions. Cibran subse-
These actions include the suit filed by Cooperativa de Ele-
quently appealed the decision and the ruling was in favor
trificação Rural do Vale do Acarau Ltda (Coperva) with a va-
of Ampla.
lue of about R$310 million (about €53 million). Coelce was
The first suit, filed in 1999 and regarding the years from
granted rulings in its favor from the trial court and the court
1995 to 1999, was adjudicated in September 2014 when
of appeal, but Coperva filed a further appeal (Embargo de
the court of first instance issued a ruling against Ampla, le-
Declaração) based on procedural issues, which was also
vying a fine of about R$200,000 (about €46,000) as well as
denied by the appeal court in a ruling of January 11, 2016.
other damages to be quantified at a later stage. Ampla ap-
On February 3, 2016, Coperva lodged an extraordinary ap-
pealed the ruling and the appeal was upheld by the Tribunal
peal before the Superior Tribunal de Justiça (the court of
de Justiça. In response, on December 16, 2016, Cibran filed
third instance) against the appeal court ruling on the me-
an appeal (recurso especial) before the Superior Tribunal
rits, which was granted on November 5, 2018 for the ruling
de Justiça, which was denied on June 19, 2020. The ruling
issued in the previous appeal (Embargo de Declaração). On
became definitive on August 24, 2020.
December 3, 2018, Enel filed an appeal (Agravo Interno)
With regard to the second case, filed in 2006 and regarding
against this ruling of the Superior Tribunal de Justiça. The
the years from 1987 to 1994, on June 1, 2015, the courts
proceedings are currently pending.
issued a ruling ordering Ampla to pay R$80,000 Brazi-
lian (about €19,000) in non-pecuniary damages as well as
R$96,465,103 (about €23 million) in pecuniary damages,
AGM litigation - Brazil
In 1993, Celg-D,(17) the Association of Municipalities of
plus interest. On July 8, 2015 Ampla appealed the decision
Goiás (AGM), the State of Goiás and the Banca di Goiás re-
with the Tribunal de Justiça of Rio de Janeiro, which on No-
ached an agreement (convenio) for the payment of muni-
vember 6, 2019 issued a ruling granting Ampla’s petition
cipal debts to Celg-D through the transfer of the portion
and denying all of Cibran’s claims. On November 25, 2019,
of ICMS - Imposto sobre Circulação de Mercadorias e Ser-
Cibran filed an appeal against the ruling of the Tribunal de
viços (VAT) that the State would have transferred to those
Justiça of Rio de Janeiro, which was preliminarily denied on
governments. In 2001 the parties to the agreement were
September 10, 2020. On January 29, 2021 Cibran appea-
sued by the individual municipal governments to obtain
led the decisions before the Superior Tribunal de Justiça.
a ruling that the agreement was invalid, a position then
Decisions at first instance are still pending with regard to
upheld by the Supreme Federal Court on the grounds of
the remaining four suits for the years 2001 and 2002. The
the non-participation of the local governments themselves
value of all the disputes is estimated at about R$605 million
in the agreement process. In September 2004, Celg-D re-
(about €103 million).
ached a settlement with 23 municipalities. Between 2007
and 2008, Celg-D was again sued on numerous occasions
Coperva litigation - Brazil
As part of the project to expand the grid in rural areas of
(there are currently 90 pending suits) seeking the restitu-
tion of amounts paid under the agreement. Despite the ru-
Brazil, in 1982 Companhia Energética do Ceará SA (Coelce),
ling that the agreement was void, Celg-D argues that the
then owned by the Brazilian government and now an Enel
payment of the debts on the part of the local governments
Group company, had entered into contracts for the use of
is legitimate, as electricity was supplied in accordance with
the grids of a number of cooperatives established specifi-
the supply contracts and, accordingly, the claims for resti-
cally to pursue the expansion project. The contracts provi-
tution of amounts paid should be denied.
ded for the payment of a monthly fee by Coelce, which was
The proceedings pending before the Goiás State Court
also required to maintain the networks.
include: (i) a suit filed by the Municipio de Aparecida de
Those contracts, between cooperatives established in spe-
Goiânia, which is pending at the preliminary stage at first
cial circumstances and the then public-sector company,
instance, for an amount of approximately R$624 million
(17) The trading name of Celg-D is Enel Distribuição Goiás.
386386
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements (approximately €106 million); (ii) a suit filed by the Munici-
cense. ANLA has submitted a request for clarification of the
pio de Quirinópolis, also pending at the preliminary stage
ruling. Another acción popular was brought by a number of
of the proceeding at first instance for an amount of about
fish farming companies over the alleged impact that filling
R$334 million (about €57 million); and (iii) a suit filed by the
the Quimbo basin would have on fishing in the Betania ba-
Municipio de Anápolis, submitted to the court of first in-
sin downstream from Quimbo. After a number of precau-
stance after a failed attempt at conciliation between the
tionary rulings, on February 22, 2016, the Huila court issued
parties, for an amount of approximately R$320 million
a ruling allowing generation to continue for six months. The
(about €54 million).
court ordered Emgesa to prepare a technical design that
The total value of the suits is equal to about R$3.5 billion
would ensure compliance with oxygen level requirements
(about €599 million). It is important to emphasize that the
and to provide collateral of about 20,000,000,000 Colom-
contingent liability deriving from this dispute is covered by
bian pesos (about €5.5 million).
the “Funac” provision established during the privatization
The Huila court subsequently extended the six-month time
of Celg-D.
limit, and therefore, in the absence of contrary court rulings
the Quimbo plant is continuing to generate electricity as
ANEEL litigation - Brazil
In 2014, Eletropaulo(18) initiated an action before the federal
the oxygenation system installed by Emgesa has so far de-
monstrated that it can maintain the oxygen levels required
courts seeking to void the administrative measure of ANE-
by the court.
EL (the National Electricity Agency), which in 2012 retro-
On March 22, 2018, ANLA and CAM jointly presented the
actively introduced a negative coefficient to be applied in
final report on the monitoring of water quality downstre-
determining rates for the following regulatory period (2011-
am of the dam of the El Quimbo hydroelectric plant. Both
2015). With this provision, the Authority ordered the resti-
authorities confirmed the compliance of Emgesa with the
tution of the value of some components of the network
oxygen level requirements. On June 15, 2018, Emgesa filed
previously included in rates because they were considered
its final pleadings. On January 12, 2021, it was learned that
non-existent and denied Eletropaulo’s request to include
the ruling of first instance of the Court of Huila had been
additional components in rates. On September 9, 2014, the
issued (it was subsequently notified to the company on Fe-
administrative measure of ANEEL was suspended on a pre-
bruary 1, 2021). The ruling, while acknowledging that the
cautionary basis. The first-instance proceeding is in its pre-
oxygenation system implemented by Emgesa has mitiga-
liminary stages and the value of the suit is R$1,093 million
ted the risks associated with the protection of fauna in the
(about €186 million).
Bethany basin, imposed a series of obligations on the envi-
ronmental authorities involved, as well as on Emgesa itself.
El Quimbo - Colombia
A number of legal actions (“acciones de grupo” and “ac-
In particular, the latter is required to implement a deconta-
mination project to ensure that the water in the basin does
ciones populares”) brought by residents and fishermen in
not generate risks for the flora and fauna of the river, which
the affected area are pending with regard to the El Quim-
will be subject to verification by ANLA, and to make perma-
bo project for the construction of a 400 MW hydroelectric
nent the operation of the oxygenation system, adapting it
plant in the region of Huila (Colombia). More specifically, the
to comply with the parameters established by ANLA. Em-
first collective action, currently in the preliminary stage, was
gesa will take all necessary actions to safeguard its rights.
brought by around 1,140 residents of the municipality of
Garzón, who claim that the construction of the plant would
reduce their business revenue by 30%. A second action was
Nivel de Tensión Uno proceedings - Colombia
This dispute involves an “acción de grupo” brought by Cen-
brought, between August 2011 and December 2012, by re-
tro Médico de la Sabana hospital and other parties against
sidents and businesses/associations of five municipalities
Codensa seeking restitution of allegedly excess rates. The
of Huila claiming damages related to the closing of a brid-
action is based upon the alleged failure of Codensa to ap-
ge (Paso El Colegio). With regard to acciones populares, or
ply a subsidized rate that they claim the users should have
class action lawsuits, in 2008 a suit was filed by a number
paid as Tensión Uno category users (voltage of less than 1
of residents of the area demanding, among other things,
kV) and owners of infrastructure, as established in Resolu-
that the environmental permit be suspended. As part of
tion no. 82/2002, as amended by Resolution no. 97/2008.
this action, on September 11, 2020, the Huila Court issued
The suit is at a preliminary stage. The estimated value of the
an unfavorable ruling against Emgesa, sentencing it to fulfill
proceeding is about 337 billion Colombian pesos (about
the obligations already provided for in the environmental li-
€96 million).
(18) The trading name of Eletropaulo is Enel Distribuição São Paulo.
387
Integrated Annual Report 2020 Arbitration proceedings in Colombia
On October 8, 2018 the Grupo Energía de Bogotá (GEB)
pon the PPO immediately appealed the decision.
In parallel with the PPO action, VV also filed a number of
(which holds about 51.5% of Emgesa and Codensa) an-
suits, asking in particular for the voidance of the VEG Ope-
nounced that it had started arbitration proceedings befo-
rating Agreement.
re the Centro de Arbitraje y Conciliación de la Cámara de
On December 12, 2014, VV withdrew unilaterally from the
Comercio de Bogotá against Enel Américas SA for an alle-
VEG Operating Agreement, notifying its termination on
ged breach of contract in relation to the non-distribution
March 9, 2015, for breach of contract. On March 9, 2015,
of dividends in the 2016, 2017 and 2018 financial years for
the decision of the appeals court overturned the ruling of
the companies Emgesa and Codensa and for the failure to
the trial court and voided the contract as part of the action
comply with certain provisions of the shareholders’ agree-
pursued by the PPO. SE lodged an extraordinary appeal
ment. The GEB is claiming damages of about €514 million
against that decision before the Supreme Court. At a hea-
plus interest. The preliminary phase has been completed
ring of June 29, 2016, the Supreme Court denied the appe-
and the procedure is currently suspended.
al. SE then appealed the ruling to the Constitutional Court,
In parallel, GEB also initiated, respectively, 17 arbitration
which denied the appeal on January 18, 2017.
proceedings against Codensa and 20 against Emgesa, for
In addition, SE lodged a request for arbitration with the
a total of 37 pending disputes (now joined into two sepa-
Vienna International Arbitral Centre (VIAC) under the VEG
rate proceedings for each company), in an attempt to void
Indemnity Agreement. Under that accord, which had been
the decisions of the Junta Directiva and shareholders’ me-
signed as part of the privatization between the National
etings of the defendant companies for alleged violation
Property Fund (now MH Manazment) of the Slovak Republic
of mandatory rules, defect of absolute nullity for illegality
and SE, the latter is entitled to an indemnity in the event
of motive and subject matter and alleged violation of sha-
of the early termination of the VEG Operating Agreement
reholders’ agreements. On February 24, 2020, GEB filed a
for reasons not attributable to SE. The arbitration court
revision of the arbitration petition filed against Emgesa, in-
rejected the objection that it did not have jurisdiction and
cluding, among other things, claims concerning the failure
the arbitration proceeding continued to examine the me-
to pursue the corporate purpose and abuse of the exercise
rits of the case, with a ruling on the amount involved being
of voting rights by Enel Américas and its directors. Emgesa
deferred to any subsequent proceeding. Following the he-
filed a defense brief challenging GEB’s new claims. Both of
aring held on February 2, 2017, the arbitration court issued
the two suits launched against Emgesa and Codensa are
its ruling denying the request of SE on June 30, 2017.
currently suspended due to negotiations by agreement of
In parallel with the arbitration proceeding launched by SE,
the parties. The value of the disputes is undetermined and
both VV and MH Manazment filed two suits in the Slovakian
the proceedings are both in the preliminary phase.
courts to void the VEG Indemnity Agreement owing to the
Gabčíkovo dispute - Slovakia
Slovenské elektrárne (SE) is involved in a number of ca-
alleged connection of the latter with the VEG Operating
Agreement. These proceedings were joindered and, on
September 27, 2017, a hearing was held before the Court
ses before the national courts concerning the 720 MW
of Bratislava in which the judge denied the request of the
Gabčíkovo hydroelectric plant, which is administered by
plaintiffs for procedural reasons. Both VV and MH Manaz-
Vodohospodárska Výsatavba Štátny Podnik (VV) and whose
ment appealed that decision. The appeal filed by MH Ma-
operation and maintenance, as part of the privatization of
nazment was denied by the Bratislava Court of Appeal on
SE in 2006, had been entrusted to SE for a period of 30
June 8, 2019, upholding the decision of the court of first
years under an operating agreement (the VEG Operating
instance in favor of SE. Similarly, the appeal filed by VV was
Agreement).
denied, upholding the trial court decision in favor of SE. VV
Immediately after the closing of the privatization, the Pu-
filed a further appeal (dovolanie) against that decision on
blic Procurement Office (PPO) filed suit with the Court of
March 9, 2020, to which SE replied with a brief submitted
Bratislava seeking to void the VEG Operating Agreement
on June 8, 2020. At the local level, SE was sued by VV for
on the basis of alleged violations of the regulations gover-
alleged unjustified enrichment (estimated at about €360
ning public tenders, qualifying the contract as a service
million plus interest) for the period from 2006 to 2015. SE
contract and as such governed by those regulations. In
filed counter-claims for all of the proceedings under way
November 2011 the trial court ruled in favor of SE, whereu-
and, in particular: (i) for 2006, 2007 and 2008, at the he-
388388
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements aring of June 26, 2019, the Court of Bratislava denied the
On May 27, 2015, under the provisions of the BOT con-
claims of both parties for procedural reasons. The ruling
tract, Chucas initiated an arbitration proceeding before
in first instance was appealed by both VV and SE and the
the Cámara Costarricense-Norteamericana de Comercio
appeals for the years 2006-2008 are pending. As for the
(AMCHAM CICA) seeking reimbursement of the additional
appeal proceedings relating to 2007, in November 2019, SE
costs incurred to build the plant and as a result of the de-
had raised a preliminary question which was rejected by the
lays in completing the project as well as voidance of the
Court of Appeal on January 15, 2020. On August 18, 2020,
fine levied by ICE for alleged delays in finalizing the wor-
SE filed an appeal with the Constitutional Court; (ii) for the
ks. In a decision issued in December 2017, the arbitration
proceedings relating to 2009, the Court of Bratislava had
board ruled in Chucas’ favor, granting recognition of the
initially scheduled the first hearing for October 13, 2020,
additional costs in the amount of about $113 million (about
which was then postponed to November 24, 2020 and
€91 million) and legal costs and ruling that the fines should
again postponed to March 23, 2021; (iii) for the proceeding
not be paid. ICE appealed the arbitration ruling before the
relating to 2011, the Court set the first hearing for Novem-
Supreme Court and on September 5, 2019 Chucas was no-
ber 19, 2020, again postponed to a date to be decided due
tified of the ruling upholding the ICE’s appeal to void the
to the COVID-19 situation; (iv) with regard to the procee-
arbitration ruling for a number of formal procedural rea-
ding involving 2012, at the hearing of April 24, 2019, the
sons. On September 11, 2019, Chucas filed a “recurso de
Court denied the petition of VV, which filed an appeal on
aclaración y adición” with the same court and it was partial-
June 21, 2019 and the appeal is under way; (v) for the proce-
ly upheld on June 8, 2020. The Court’s decision expanded
edings relating to the years 2010 and 2013, the exchange of
on the ruling of September 5, 2019 with information con-
final pleadings between the parties was concluded and the
cerning the admission of evidence deposited by Chucas
hearing at first instance, initially set for May 12, 2020, was
without, however, modifying the decision concerning the
postponed to October 6, 2020. On this date, VV has asked
voidance of the arbitration award. On July 15, 2020, Chu-
for the hearing to be postponed to November 6, 2020, and
cas filed a request for arbitration with the AMCHAM CICA
subsequently to February 23, 2021. The hearing was subse-
for an estimated amount of about $240 million. On August
quently postponed to a date to be determined as a result of
14, 2020, ICE filed a response to Chucas’s arbitration pe-
the epidemiological emergency; (vi) for the proceeding re-
tition, requesting the dismissal of the proceeding for lack
lating to 2014, the hearing at first instance initially schedu-
of jurisdiction on the part of the arbitration tribunal. The
led for October 6, 2020 was first postponed to November
request was denied by AMCHAM CICA. In parallel, ICE filed
6, 2020, and then to February 23, 2021. The hearing was
precautionary appeals to the Tribunal Contencioso Admini-
subsequently postponed to a date to be determined due
strativo against Chucas and the AMCHAM CICA in order to
to the health emergency.
suspend the arbitration proceedings. These appeals were
Finally, in another proceeding before the Court of Bratisla-
preliminarily upheld and subsequently revoked. Arbitration
va, VV asked for SE to return the fee for the transfer from
is therefore in the initial stages.
SE to VV of the technology assets of the Gabčíkovo plant
as part of the privatization, with a value of about €43 million
plus interest. The parties exchanged briefs. At the hearing
GasAtacama Chile - Chile
On August 4, 2016, the Superintendencia de Electricidad
on November 19, 2019, the court issued a preliminary de-
y Combustibles (SEC) fined GasAtacama Chile $8.3 million
cision on the case in which it noted the lack of standing of
(about 5.8 billion Chilean pesos) for information provided by
VV. At the hearing of October 1, 2020, the parties filed their
the latter to the CDEC-SING (Centro de Despacho Económ-
final briefs and on December 18, 2020, the court issued a
ico de Carga) between January 1, 2011 and October 29,
decision in favor of SE, rejecting VV’s claims. On January 7,
2015, relating to the Minimum Technical and Minimum
2021, VV filed an appeal against the decision, and the pro-
Operating Time variables at the Atacama plant.
ceeding is pending.
Precautionary administrative proceeding
and Chucas arbitration
PH Chucas SA (Chucas) is a special purpose entity establi-
GasAtacama Chile appealed this measure with the SEC,
which denied the appeal on November 2, 2016. GasAtaca-
ma Chile appealed this decision before the Santiago Court
of Appeal, which on April 9, 2019, issued a ruling reducing
the fine to $432,000 (about 290 million Chilean pesos).
shed by Enel Green Power Costa Rica SA after it won a tender
Both GasAtacama Chile and the SEC have appealed this
organized in 2007 by the Instituto Costarricense de Electrici-
decision before the Supreme Court of Chile. On June 28,
dad (ICE) for the construction of a 50 MW hydroelectric plant
2019, a hearing was held for both parties to submit argu-
and the sale of the power generated by the plant to ICE un-
ments and on January 15, 2020 the Supreme Court upheld
der a build, operate and transfer contract (BOT).
the ruling of the Santiago Court of Appeal, leaving unchan-
389
Integrated Annual Report 2020 ged the reduction in the fine established by that court. The
raise funds abroad. Under the special rules then in force,
adjusted fine was paid on March 12, 2020.
subject to maintaining the bond until 2008, the interest
In parallel, GasAtacama Chile also filed an appeal before the
paid by Ampla to its subsidiary was not subject to withhol-
Constitutional Court, claiming that the legal provisions un-
ding tax in Brazil.
der which the SEC imposed the fine had been repealed at
However, the financial crisis of 1998 forced the Panamanian
the time the penalty was issued. On July 17, 2018, the Con-
company to refinance itself with its Brazilian parent, which
stitutional Court rejected GasAtacama Chile’s appeal.
for that purpose obtained loans from local banks. The tax
In relation to this issue, some operators of the Sistema In-
authorities considered this financing to be the equivalent of
terconectado del Norte Grande (SING), including Aes Gener
the early extinguishment of the bond, with the consequent
SA, Eléctrica Angamos SA and Engie Energía Chile SA, have
loss of entitlement to the exemption from withholding tax.
initiated actions in order to obtain damages in an amount
In December 2005, Ampla carried out a spin-off that in-
of about €58 million (the former) and about €141 million
volved the transfer of the residual FRN debt and the as-
(the latter two). The disputes were joindered in part in a sin-
sociated rights and obligations to Ampla Investimentos e
gle proceeding and the preliminary phase is currently su-
Serviços SA.
spended under the state of national emergency declared
On November 6, 2012, the Câmara Superior de Recursos
in response to the COVID-19 pandemic.
Fiscais (the highest level of administrative courts) issued
a ruling against Ampla, for which the company prompt-
Kino arbitration - Mexico
On September 16, 2020, Kino Contractor SA de Cv, Kino
ly asked that body for clarifications. On October 15, 2013,
Ampla was notified of the denial of the request for clarifica-
Facilities Manager SA de Cv and Enel SpA were notified of a
tion (Embargo de Declaração), thereby upholding the pre-
request for arbitration filed by Parque Solar Don José SA de
vious adverse decision. The company provided security for
Cv, Villanueva Solar SA de Cv and Parque Solar Villanueva
the debt and on June 27, 2014 continued litigation before
Tres SA de Cv (together, “Project Companies”) in which the
the ordinary courts (Tribunal de Justiça).
Project Companies alleged the violation (i) by Kino Contrac-
In December 2017, the court appointed an expert to exami-
tor of certain provisions of the EPC Contract and (ii) by Kino
ne the issue in greater detail in support of the future ruling.
Facilities of certain provisions of the Asset Management
In September 2018, the expert submitted a report, reque-
Agreement, both contracts concerning solar projects ow-
sting additional documentation.
ned by the three companies filing for arbitration.
In December 2018, the company provided the additional
Enel SpA – which is the guarantor of the obligations of Kino
documentation and is awaiting the court’s assessment of
Contractor and Kino Facilities deriving from the above con-
the arguments and documents presented.
tracts – has also been called into the arbitration procee-
The amount involved in the dispute at December 31, 2020
ding, but without specific claims being filed against it.
was about €206 million.
The Project Companies, in which Enel Green Power SpA is
a non-controlling shareholder, are controlled by Caisse de
PIS - Eletropaulo
Dépôt et Placement du Québec and CKD Infraestructura
In July 2000, Eletropaulo filed suit seeking a tax credit for
México SA de Cv. The proceeding is in the preliminary pha-
PIS (Programa Integração Social) paid in application of re-
se and the formation of the arbitration panel is in progress.
gulations (Decree Laws 2.445/1988 and 2.449/1988) that
The claim is provisionally quantified at about $140 million,
were subsequently declared unconstitutional by the Supre-
while the Project Companies provisionally quantified their
mo Tribunal Federal (STF). In May 2012, the Superior Tribunal
claim at about $15.4 million.
de Justiça (STJ) issued a final ruling in favor of the company
Tax litigation in Brazil
Withholding tax - Ampla
that recognized the right to the credit.
In 2002, before the issue of that favorable final ruling, the
company had offset its credit against other federal taxes.
This behavior was contested by the federal tax authorities
In 1998, Ampla Energia e Serviços SA (Ampla) financed the
but the company, claiming it had acted correctly, challen-
acquisition of Coelce with the issue of bonds in the amount
ged in court the assessments issued by the federal tax au-
of $350 million (“Fixed Rate Notes” - FRN) subscribed by
thorities. Following defeat at the initial level of adjudication,
its Panamanian subsidiary, which had been established to
the company appealed.
390390
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements The amount involved in the dispute at December 31, 2020
from 0.50% to 0.65% with the issue of a provisional measu-
was about €103 million.
re (Executive Provisional Order).
Subsequently, the provisional measure was re-issued five
ICMS - Ampla, Coelce and Eletropaulo
times before its definitive ratification into law in 1998. Un-
The States of Rio de Janeiro, Ceará and São Paulo issued a
der Brazilian legislation, an increase in the tax rate (or the
number of tax assessments against Ampla Energia e Ser-
establishment of a new tax) can only be ordered by law and
viços SA (for the years 1996-1999 and 2007-2017), Com-
take effect 90 days after its publication.
panhia Energética do Ceará(19) (2003, 2004, 2006-2012 and
Eletropaulo therefore filed suit arguing that an increase in
2015) and Eletropaulo (2008-2019), challenging the de-
the tax rate would only have been effective 90 days after
duction of ICMS (Imposto sobre Circulação de Mercadorias
the last Provisional Order, claiming that the effects of the
e Serviços) in relation to the purchase of certain non-cur-
first four provisional measures should be considered void
rent assets. The companies challenged the assessments,
(since they were never ratified into law). This dispute ended
arguing that they correctly deducted the tax and asserting
in April 2008 with recognition of the validity of the increase
that the assets, the purchase of which generated the ICMS,
in the PIS rate starting from the first provisional measure.
are intended for use in their electricity distribution activi-
In May 2008, the Brazilian tax authorities filed a suit against
ties.
Eletropaulo to request payment of taxes corresponding
The companies are continuing to defend their actions at
to the rate increase from March 1996 to December 1998.
the various levels of adjudication.
Eletropaulo has fought the request at the various levels of
The amount involved in the disputes totaled approximately
adjudication, arguing that the time limit for the issue of
€75 million at December 31, 2020.
the notice of assessment had lapsed. In particular, since
Withholding tax - Endesa Brasil
more than five years have passed since the taxable event
(December 1995, the date of the first provisional measure)
On November 4, 2014, the Brazilian tax authorities issued
without issuing any formal instrument, the right of the tax
an assessment against Endesa Brasil SA (now Enel Brasil SA)
authorities to request the payment of additional taxes and
alleging the failure to apply withholding tax to payments of
the authority to undertake legal action to obtain payment
allegedly higher dividends to non-resident recipients.
have been challenged.
More specifically, in 2009, Endesa Brasil, as a result of the
In 2017, following the unfavorable decisions issued in pre-
first-time application of the IFRS, had derecognized goo-
vious rulings, Eletropaulo filed an appeal in defense of its
dwill, recognizing the effects in equity, on the basis of the
rights and its actions with the Superior Tribunal de Justiça
correct application of the accounting standards it had
(STJ) and the Supremo Tribunal Federal (STF). The procee-
adopted. The Brazilian tax authorities, however, asserted –
dings are still pending while the amounts subject to dispute
during an audit – that the accounting treatment was incor-
have been covered by a bank guarantee.
rect and that the effects of the derecognition should have
With regard to the request of the Office of the Attorney Ge-
been recognized through profit or loss. As a result, the cor-
neral of the Brazilian National Treasury Department to re-
responding amount (about €202 million) was reclassified
place the bank guarantee with a deposit in court, the court
as a payment of income to non-residents and, therefore,
of second instance granted the petition. The company
subject to withholding tax of 15%.
therefore replaced the bank guarantee with a cash deposit
It should be noted that the accounting treatment adopted
and filed a clarification motion against the related decision,
by the company was agreed with the external auditor and
which is currently awaiting a decision.
also confirmed by a specific legal opinion issued by a local
The overall amount involved in the dispute at December 31,
firm.
2020 was about €38 million.
Following unfavorable rulings from the administrative cour-
ts, the company is continuing to defend its actions in court
ICMS - Coelce
and the appropriateness of the accounting treatment.
The State of Ceará has filed various tax assessments against
The overall amount involved in the dispute at December 31,
Companhia Energética do Ceará SA over the years (for tax
2020 was about €56 million.
PIS - Eletropaulo
periods from 2005 to 2014), contesting the determination
of the deductible portion of the ICMS (Imposto sobre Cir-
culação de Mercadorias e Serviços) and in particular the
In December 1995, the Brazilian government increased
method of calculation of the pro-rata deduction with re-
the rate of the federal PIS (Programa Integração Social) tax
ference to the revenue deriving from the application of a
(19) The trading name of Coelce is Enel Distribuição Ceará.
391
Integrated Annual Report 2020 special rate envisaged by the Brazilian government for the
propriateness of the criteria adopted for the deductibility
sale of electricity to low-income households (Baixa Renda).
of certain financial expense (about €24 million) and costs
The company has appealed the individual assessments, ar-
for decommissioning nuclear power plants (about €6 mil-
guing that the tax deduction was calculated correctly. The
lion).
company is defending its actions in the various levels of ju-
risdiction.
Income taxes - Enel Green Power España SL
The overall amount involved in the dispute at December 31,
On June 7, 2017, the Spanish tax authorities issued a no-
2020 was about €39 million.
FINSOCIAL - Eletropaulo
tice of assessment to Enel Green Power España SL, con-
testing the treatment of the merger of Enel Unión Fenosa
Renovables SA (“EUFER”) into Enel Green Power España SL
Following a final ruling issued by the Federal Regional Court
in 2011 as a tax neutral transaction, asserting that the tran-
on September 11, 2011, Eletropaulo was recognized the ri-
saction had no valid economic reason.
ght to compensation for certain FINSOCIAL credits (social
On July 6, 2017, the company appealed the assessment at
contributions) relating to sums paid from September 1989
the first administrative level (Tribunal Económico-Adminis-
to March 1992.
trativo Central - TEAC), defending the appropriateness of
Despite the expiration of the relative statute of limitations,
the tax treatment applied to the merger. The company has
the Federal Tax Authority contested the determination of
provided the supporting documentation demonstrating
some credits and rejected the corresponding offsetting, is-
the synergies achieved as a result of the merger in order
suing tax assessments that the company promptly challen-
to prove the existence of a valid economic reason for the
ged in the administrative courts, defending the legitimacy
transaction. On December 10, 2019, the TEAC denied the
of its calculations and actions.
appeal and the company is continuing to defend its actions
After an unfavorable ruling at first instance, the company
in court (Audiencia Nacional).
filed an appeal before the administrative court of second
The overall amount involved in the dispute at December 31,
instance.
2020 was about €95 million.
The overall amount involved in the dispute at December 31,
2020 was about €36 million.
Tax litigation in Italy
Tax litigation in Spain
Withholding tax - Enel Servizio Elettrico Nazionale
As a result of a tax audit initiated in March 2018 and fol-
Income tax - Enel Iberia, Endesa and subsidiaries
lowing a subsequent investigation conducted with que-
In 2018, the Spanish tax authorities completed a general
stionnaires submitted to the banks involved as assignees
audit involving the companies of the Group participating
in certain transfers of receivables from Servizio Elettrico
in the Spanish tax consolidation mechanism. This audit,
Nazionale SpA (SEN) in respect of mass market customers
which began in 2016, involved corporate income tax, value
under a framework agreement, on December 19, 2018, the
added tax and withholding taxes (mainly for the years 2012
Revenue Agency Regional Directorate of Lazio Large Ta-
to 2014).
xpayers Office, notified the company of an assessment in
With reference to the main claims, the companies involved
respect of the alleged violation of withholding tax obliga-
have challenged the related assessments at the first admi-
tions relating to the amounts paid to the banks as part of
nistrative level (Tribunal Económico-Administrativo Central
the aforementioned transfers in 2013.
- TEAC), defending the correctness of their actions.
In particular, the dispute arises from an assessment by the
With regard to the disputes concerning corporate income
Office that: (i) reclassified, for tax purposes only, the assign-
tax, the issues for which an unfavorable outcome is consi-
ment of receivables as a financing transaction; (ii) asserted
dered possible amounted to about €151 million at Decem-
an alleged withholding obligation for the company com-
ber 31, 2020: (i) Enel Iberia is defending the appropriateness
mensurate with the cost of the transaction (as the differen-
of the criterion adopted for determining the deductibility
ce between the nominal value of the assigned receivables
of capital losses deriving from stock sales (around €103
and the transfer price), reconstructing the subsequent
million) and certain financial expense (around €18 million);
transactions involving the assigned receivables (further sa-
(ii) Endesa and its subsidiaries are mainly defending the ap-
les and/or securitizations with non-residents carried out by
392392
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements the banks), in which the company had no role.
these amendments indefinitely, but if the amendments
In the first stages of the proceeding, which arose following
are applied early, they must be applied prospectively.
SEN’s appeal of the assessment, the company’s objections
› “Amendments to IAS 1 - Classification of Liabilities as
concerning the illegitimacy of the Office’s reclassification
Current or Non-current”, issued in January 2020. The
of the transaction for tax purposes and, consequently, of
amendments regard the provisions of IAS 1 concerning
the payment flows were not upheld, despite significant
the presentation of liabilities. More specifically, the chan-
procedural violations in the assessment activity.
ges clarify:
Believing that it has valid legal grounds to continue the di-
– the criteria to adopt in classifying a liability as current
spute, the company filed an appeal with the Court of Cassa-
or non-current, specifying the meaning of right of an
tion, asserting the illegitimacy of the tax claim for violation
entity to defer settlement and that that right must exist
and false application of the rules that, in the view of the trial
at the end of the reporting period;
court, permit the classification of the income generated by
– the classification is unaffected by the intentions or
the assignment of receivables as “property income”, which,
expectations of management about when the entity
consequently, would require SEN to apply withholding tax.
will exercise its right to defer settlement of a liability;
The overall amount involved in the dispute at December 31,
– that the right to defer exists if and only if the entity sa-
2020 is about €81 million.
54. Future accounting standards
The following provides a list of accounting standards,
tisfies the terms of the loan at the end of the reporting
period, even if the creditor does not verify compliance
until later; and
– that settlement regards the transfer to the counterpar-
amendments and interpretations that will take effect for
ty of cash, equity instruments, other assets or services.
the Group after December 31, 2020.
The amendments will take effect, subject to endorse-
› “IFRS 17 - Insurance contracts”, issued in May 2017. The
ment, for annual periods beginning on or after January 1,
standard will take effect, subject to endorsement, for an-
2023, with earlier application permitted.
nual periods beginning on or after January 1, 2021, with
› “Amendments to IFRS 3 - Reference to the Conceptual
earlier application permitted.
Framework” issued in May 2020. The amendments are
› “Amendment to IFRS 16: COVID 19-related rent conces-
intended to replace a reference to the definitions of as-
sions”, issued on May 28, 2020 in order to permit lesse-
sets and liabilities provided by the Revised Conceptual
es to not account for rent concessions (rent payment
Framework for Financial Reporting issued in March 2018
holidays, deferral of lease payments, reductions in rent
(Conceptual Framework) without significantly changing
for a period of time, possibly followed by rent increa-
its provisions.
ses in future periods) as lease modifications if they are
The amendments also add to IFRS 3 a requirement that,
a direct consequence of the COVID-19 pandemic and
for transactions and other events within the scope of
meet certain conditions. According to IFRS 16, a lease
“IAS 37 - Provisions, contingent liabilities and contingent
modification is a change in the scope of a lease, or the
assets” or “IFRIC 21 - Levies”, an acquirer applies IAS 37 or
consideration for a lease, that was not part of the origi-
IFRIC 21 (instead of the Conceptual Framework) to identi-
nal terms and conditions of the lease. Accordingly, rent
fy the liabilities it has assumed in a business combination.
concessions would represent lease modifications unless
Finally, the amendments clarify the existing guidelines in
they were provided for in the original lease agreement.
IFRS 3 for contingent assets acquired in a business com-
The amendment applies only to lessees, while lessors are
bination, specifying that, if it is not sure that an asset exi-
required to apply the current provisions of IFRS 16. The
sts at the acquisition date, the contingent asset shall not
amendment, which applies retrospectively for annual re-
be recognized.
porting periods beginning on or after June 1, 2020, was
The amendments will take effect, subject to endorse-
not applied early by the Group.
ment, for annual periods beginning on or after January
› “Amendments to IFRS 10 and IAS 28 - Sale or Contribution
1, 2022.
of Assets between an Investor and its Associate or Joint
› “Amendments to IAS 16 - Property, Plant and Equipment:
Venture”, issued in September 2014. The amendments
Proceeds before Intended Use”, issued in May 2020. The
clarify the accounting treatment for sales or contribution
amendments prohibit a company from deducting from
of assets between an investor and its associates or joint
the cost of property, plant and equipment amounts re-
ventures. They confirm that the accounting treatment
ceived from selling items produced while the company is
depends on whether the assets sold or contributed to an
preparing the asset for its intended use. Instead, a com-
associate or joint venture constitute a ‘business’ (as defi-
pany will recognize such sales proceeds and related cost
ned in IFRS 3). The IASB has deferred the effective date of
in profit or loss. The amendments will take effect, subject
393
Integrated Annual Report 2020 to endorsement, for annual periods beginning on or after
relating to leasehold improvements from the example;
January 1, 2022. Early application is permitted.
– “IAS 41 - Agriculture”; the amendment removes the
› “Amendments to IAS 37 - Onerous Contracts - Costs
requirement for entities to exclude cash flows for ta-
of Fulfilling a Contract”, issued in May 2020. The amend-
xation when measuring fair value. Accordingly, entities
ments specify which costs an entity includes in determi-
shall use pre-tax cash flows and a pre-tax rate to di-
ning the cost of fulfilling a contract for the purpose of
scount those cash flows.
assessing whether the contract is onerous. To this end,
The amendments shall be applied prospectively, subject
the cost of fulfilling a contract comprises the costs that
to endorsement, for annual periods beginning on or after
relate directly to the contract. These consist of the incre-
January 1, 2022. Early application is permitted.
mental costs of fulfilling that contract or an allocation of
› “Amendments to IFRS 9, IAS 39, IFRS 7, and IFRS 16 - In-
other costs that relate directly to fulfilling contracts. The
terest Rate Benchmark Reform - Phase 2”, issued in Au-
amendments will take effect, subject to endorsement,
gust 2020. The amendments supplement those issued
for annual periods beginning on or after January 1, 2022.
in 2019 (Interest Rate Benchmark Reform - Phase 1) and
Early application is permitted.
address issues that could affect financial reporting after
› “Annual improvements to IFRS Standards 2018-2020”,
a benchmark has been reformed or replaced with an al-
issued in May 2020. The document mainly comprises
ternative benchmark rate. The objectives of the Phase 2
amendments to the following standards:
amendments are to assist companies: (i) in applying the
– “IFRS 1 - First-Time Adoption of International Finan-
IFRSs when changes occur in contractual cash flows or
cial Reporting Standards”; the amendment simplifies
hedging relationships due to the reform of the bench-
the application of IFRS 1 by an investee (subsidiary,
marks for determining interest rates; and (ii) in providing
associate or joint venture) that becomes a first-time
information to users of financial statements.
adopter of IFRS Standards after its parent has already
In addition, when the Phase 1 exemptions cease to apply,
adopted them. More specifically, if the investee adop-
companies are required to amend the documentation of
ts the IFRSs after its parent and applies IFRS 1.D16 (a),
hedging relationship to reflect the changes required un-
then the investee can elect to measure the cumulative
der the IBOR reform by the end of the year in which the
translation differences for all foreign operations at the
changes are made (such changes do not constitute the
amounts that would be included in the parent’s conso-
discontinuation of the hedging relationship). When the de-
lidated financial statements, based on parent’s date of
scription of a hedged element in the documentation of the
transition to the IFRSs;
hedging relationship is changed, the amounts accumula-
– “IFRS 9 - Financial Instruments”; with regard to fees inclu-
ted in the hedging reserve shall be considered to be based
ded in the ‘10 per cent’ test for derecognition of financial
on the alternative benchmark rate on the basis of which
liabilities, the amendment clarifies the fees that an entity
the future hedged cash flows will be determined.
includes when assessing whether the terms of a new or
The amendments will require providing additional disclo-
modified financial liability are substantially different from
sures about the entity’s exposure to the risks arising from
the terms of the original financial liability. In particular,
the interest rate benchmark reform and related risk ma-
these include only fees paid or received between the
nagement activities.
borrower and the lender, including fees paid or received
The amendments will take effect for annual periods be-
by either the borrower or lender on the other’s behalf;
ginning on or after January 1, 2021. Early application is
– “IFRS 16 - Leases”; the International Accounting Stan-
permitted.
dards Board amended Illustrative Example 13 accom-
› “Amendments to IAS 1 and IFRS Practice Statement 2 - Di-
panying “IFRS 16 - Leases”. Specifically, the amendment
sclosure of Accounting Policies”, issued in February 2021.
eliminates the potential for confusion in the application
The amendments are intended to support entities in deci-
of IFRS 16 created by the way in which Illustrative Exam-
ding which accounting policies to disclose in the financial
ple 13 had illustrated the requirements for lease incenti-
statements. The amendments to IAS 1 require companies
ves. The example had included a reimbursement relating
to disclose their material accounting policy information ra-
to leasehold improvements without explaining whether
ther than their significant accounting policies. A guide on
the reimbursement qualified as a lease incentive. The
how to apply the concept of materiality to disclosures on
amendment removes the illustration of a reimbursement
accounting policies is provided in the amendments to IFRS
394394
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Practice Statement 2. The amendments will take effect,
ding perpetual bonds, for up to a maximum of €3 billion.
subject to endorsement, for annual periods beginning on
The bonds are to be placed exclusively with European and
or after January 1, 2023. Early application is permitted.
non-European institutional investors, including through
› “Amendments to IAS 8 - Definition of Accounting Esti-
private placements.
mates”, issued in February 2021. The amendments clarify
how companies should distinguish changes in accoun-
ting policies from changes in accounting estimates.
The definition of changes in accounting estimates has
Enel issues new hybrid bonds for an aggregate prin-
cipal amount of €2.25 billion
In execution of the February 25, 2021 resolution, on March
been replaced with a definition of accounting estimates
4, 2021 Enel announced the issue of a new perpetual hybrid
as “monetary amounts in financial statements that are
bond of €2.25 billion. The new issue strengthens and optimi-
subject to measurement uncertainty”. The amendments
zes the Group’s capital structure with an incremental hybrid
will take effect, subject to endorsement, for annual pe-
bond component, thus contributing to support the Group’s
riods beginning on or after January 1, 2023. Early appli-
growth set out in the 2021-2023 Strategic Plan, which envisa-
cation is permitted.
ges direct investments of around €40 billion over the period.
The Group is assessing the potential impact of the future
application of the new provisions.
55. Events after the reporting period
Enel closes Unit I of Bocamina coal-fired plant
three years ahead of date set in Chile’s National
Decarbonization Plan
On January 4, 2021 the Enel Group disconnected and cea-
sed operations at Unit I of the Bocamina coal-fired power
plant, which is located in the Chilean municipality of Coro-
nel. The 128 MW Unit I was disconnected three years before
Enel signs the largest ever sustainability-linked
revolving credit facility
On March 5, 2021, Enel and its Dutch subsidiary Enel Fi-
nance International NV (EFI) signed the largest ever sustai-
nability-linked revolving credit facility in the amount of €10
billion, with a term of five years.
The facility, which will be used to meet the Group’s finan-
cial requirements, is linked to a key performance indicator
consisting of direct greenhouse gas emissions (i.e., Group
Scope 1 CO2 equivalent emissions from the production of
electricity and heat), contributing to the achievement of
the date set in Chile’s National Decarbonization Plan. With
the United Nations Sustainable Development Goal (SDG) 13
this milestone, coupled with the closure of Tarapacá coal
“Climate Action” and in line with the Group’s “Sustainabili-
plant on December 31, 2019 and the expected closure of
ty-Linked Financing Framework”, for which Vigeo Eiris pro-
Enel’s last coal facility in the country, Bocamina’s Unit II, by
vided a second-party opinion.
May 2022, steadily progress is being made towards the de-
The facility replaces the previous €10 billion revolving cre-
carbonization of Enel’s Chilean generation mix.
dit line signed by Enel and EFI in December 2017 and has a
lower all-in cost than the earlier facility.
Moody’s upgrades Enel’s long-term rating to
“Baa1”
On January 15, 2021, Moody’s Investors Service (Moody’s)
announced that it had upgraded its long-term rating of
Voluntary partial public tender offer for the shares
and American Depositary Shares of Enel Américas SA
As part of the process of corporate reorganization aimed at
Enel SpA to “Baa1” from the previous level of “Baa2”. Among
integrating the non-conventional renewable energy business
the rating drivers prompting the upgrade, Moody’s cited:
of the Enel Group in Central and South America (excluding
› low earnings volatility driven by large scale and geo-
Chile) into the listed Chilean subsidiary Enel Américas SA, on
graphical diversification;
March 15, 2021, Enel SpA, as previously announced to inve-
› stable earnings stemming from regulated networks and
stors, launched a voluntary partial public tender offer for Enel
contracted generation, which account for 80% of the
Américas common stock and American Depositary Shares
Group’s EBITDA;
(ADSs) up to a maximum overall amount of 7,608,631,104 sha-
› solid financial profile, with funds from operations/net
res (including the shares represented by ADSs), equal to 10%
debt in excess of 20%.
Enel’s Board of Directors approves the issue of hy-
brid bonds up to a maximum of €3 billion
On February 25, 2021, the Board of Directors of Enel SpA
of the company’s outstanding share capital at that date.
The tender was organized as a voluntary public tender offer in
the United States and a voluntary public tender offer in Chile.
The Offer period ran from March 15 to April 13, 2021.
The Offer was conditional upon the effectiveness of the mer-
authorized the issue, by December 31, 2021, of one or
ger of EGP Américas SpA into Enel Américas SA, which occur-
more non-convertible subordinated hybrid bonds, inclu-
red on April 1, 2021.
395
Integrated Annual Report 2020 The total maximum outlay of approximately 1,065.2 billion
Chilean pesos (equal to about €1.2 billion, calculated at the
exchange rate prevailing on March 12, 2021 of 853.44 Chile-
an pesos per euro) was funded through internally generated
cash flows and existing borrowing capacity.
Following the completion of the voluntary partial public ten-
der offer and the completion of the merger of EGP Américas,
Enel owns about 82.3% of the share capital of Enel Américas
currently in circulation.
396396
3452Strategy & Risk ManagementPerformance& MetricsOutlookGovernance16Enel GroupConsolidated financial statements Declaration of the Chief Executive Officer
and the officer in charge of financial reporting of
the Enel Group at December 31, 2020, pursuant
to the provisions of Article 154-bis, paragraph 5,
of Legislative Decree 58 of February 24, 1998 and
Article 81-ter of CONSOB Regulation no. 11971 of
May 14, 1999
1. The undersigned Francesco Starace and Alberto De Paoli, in their respective capacities as Chief Executive Officer and
officer in charge of financial reporting of Enel SpA, hereby certify, taking account of the provisions of Article 154-bis, para-
graphs 3 and 4, of Legislative Decree 58 of February 24, 1998:
a. the appropriateness with respect to the characteristics of the Enel Group and
b. the effective adoption of the administrative and accounting procedures for the preparation of the consolidated finan-
cial statements of the Enel Group in the period between January 1, 2020 and December 31, 2020.
2.
In this regard, we report that:
a. the appropriateness of the administrative and accounting procedures used in the preparation of the consolidated
financial statements of the Enel Group has been verified in an assessment of the internal control system for financial
reporting. The assessment was carried out on the basis of the guidelines set out in the “Internal Controls - Integrated
Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO);
b. the assessment of the internal control system for financial reporting did not identify any material issues.
3.
In addition, we certify that the consolidated financial statements of the Enel Group at December 31, 2020:
a. have been prepared in compliance with the International Financial Reporting Standards endorsed by the European
Union pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of July 19, 2002;
b. correspond to the information in the books and other accounting records;
c. provide a true and fair representation of the financial position, financial performance and cash flows of the issuer and
the companies included in the consolidation scope.
4. Finally, we certify that the Report on Operations, accompanied by the consolidated financial statements of the Enel Group
at December 31, 2020, contains a reliable analysis of operations and performance, as well as the situation of the issuer
and the companies included in the consolidation scope, together with a description of the main risks and uncertainties to
which they are exposed.
Rome, March 18, 2021
Francesco Starace
Alberto De Paoli
Chief Executive Officer of Enel SpA
Officer in charge of financial reporting of Enel SpA
397
Integrated Annual Report 2020 REPORTS
Report of the Board
of Statutory Auditors
to the Shareholders’
Meeting of Enel SpA
398
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’
MEETING OF ENEL SpA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2020
(pursuant to Article 153 of Legislative Decree 58/1998 )
Shareholders,
during the year ended December 31, 2020 we performed the oversight activities
envisaged by law at Enel SpA (hereinafter also “Enel” or the “Company”). In
particular, pursuant to the provisions of Article 149, paragraph 1, of Legislative
Decree 58 of February 24, 1998 (hereinafter the “Consolidated Law on Financial
Intermediation”) and Article 19, paragraph 1 of Legislative Decree 39 of January 27,
2010, as amended by Legislative Decree 135 of July 17, 2016 (hereinafter “Decree
39/2010”), we monitored:
- compliance with the law and the corporate bylaws as well as compliance with the
principles of sound administration in the performance of the Company’s business;
-
-
-
-
-
-
the Company’s financial reporting process and the adequacy of the administrative
and accounting system, as well as the reliability of the latter in representing
operational events;
the statutory audit of the annual statutory and consolidated accounts and the
independence of the audit firm;
the adequacy and effectiveness of the internal control and risk management
system;
the adequacy of the organizational structure of the Company, within the scope of
our responsibilities;
the implementation of the corporate governance rules as provided for by the
2018 edition of the Corporate Governance Code
for Listed Companies
(hereinafter, the “Corporate Governance Code”), which the Company had adopted
until March 2021;(1)
the appropriateness of the instructions given by the Company to its subsidiaries
to enable Enel to meet statutory public disclosure requirements.
In performing our checks and assessments of the above issues, we did not find any
particular issues to report.
In compliance with the instructions issued by CONSOB with (i) Communication no.
DEM/1025564 of April 6, 2001, as amended, and (ii) in warning notice no. 1/2021 of
February 16, 2021, we report the following:
(1) In March 2021, the Board of Directors completed the adoption of measures to ensure that
Enel had implemented the amendments to the Italian Corporate Governance Code published in
January 2020.
399
Integrated Annual Report 2020
• we monitored compliance with the law and the bylaws and we have no issues to
report;
• on a quarterly basis, we received adequate information from the Chief Executive
Officer, as well as through our participation in the meetings of the Board of
Directors of Enel, on activities performed, general developments in operations
and the outlook, and on transactions with the most significant impact on
performance or the financial position carried out by the Company and its
subsidiaries. We report that the actions approved and implemented were in
compliance with the law and the bylaws and were not manifestly imprudent,
risky, in potential conflict of interest or in contrast with the resolutions of the
Shareholders’ Meeting or otherwise prejudicial to the integrity of the Company’s
assets. For a discussion of the features of the most significant transactions,
please see the Report on Operations accompanying the separate financial
statements of the Company and the consolidated financial statements of the Enel
Group for 2020 (in the section “Significant events in 2020”);
• we did not find any atypical or unusual transactions conducted with third parties,
Group companies or other related parties;
•
in the section “Related parties” of the notes to the separate financial statements
for 2020 of the Company, the directors describe the main transactions with
related parties – the latter being identified on the basis of international
accounting standards and the instructions of CONSOB – carried out by the
Company, to which readers may refer for details on the transactions and their
financial impact. They also detail the procedures adopted to ensure that related-
party transactions are carried out in accordance with the principles of
transparency and procedural and substantive fairness. The transactions were
carried out in compliance with the approval and execution processes set out in
the related procedure – adopted in compliance with the provisions of Article 2391-
bis of the Italian Civil Code and the implementing regulations issued by CONSOB
– described in the Report on Corporate Governance and Ownership Structure for
2020. All transactions with related parties reported in the notes to the separate
financial statements for 2020 of the Company were executed as part of ordinary
operations in the interest of the Company and settled on market terms and
conditions;
•
the Company declares that it has prepared its separate financial statements for
2020 on the basis of international accounting standards (IAS/IFRS) – and the
interpretations issued by the IFRIC and the SIC – endorsed by the European
Union pursuant to Regulation (EC) no. 1606/2002 and in force at the close of
2020, as well as the provisions of Legislative Decree 38 of February 28, 2005 and
its related implementing measures, as it did the previous year. The Company’s
2
400
separate financial statements for 2020 have been prepared on a going-concern
basis using the cost method, with the exception of items that are measured at fair
value under the IFRS-EU, as indicated in the accounting policies for the individual
items of the financial statements. The notes to the separate financial statements
give detailed information on the accounting standards and measurement criteria
adopted, accompanied by an indication of the standards applied for the first time
in 2020, which as indicated in the notes did not have a significant impact in the
year under review, and standards that will apply in the future. The separate
financial statements for 2020 of the Company underwent the statutory audit by
the audit firm, KPMG SpA, which issued an unqualified opinion, including with
regard to the consistency of the Report on Operations and certain information in
the Report on Corporate Governance and Ownership Structure of the Company
with the financial statements, as well as compliance with the provisions of law,
pursuant to Article 14 of Legislative Decree 39/2010 and Article 10 of Regulation
(EU) no. 537/2014. The report of KPMG SpA also includes:
- a discussion of key aspects of the audit report on the separate financial
statements; and
-
the declaration provided pursuant to Article 14, paragraph 2(e) of Legislative
Decree 39/2010 stating that the audit firm did not identify any significant
errors in the contents of the report on operations;
•
the Company declares that it has also prepared the consolidated financial
statements of the Enel Group for 2020 on the basis of international accounting
standards (IAS/IFRS) – and the interpretations issued by the IFRIC and the SIC –
endorsed by the European Union pursuant to Regulation (EC) no. 1606/2002 and
in force at the close of 2020, as well as the provisions of Legislative Decree 38 of
February 28, 2005 and its related implementing measures, as it did the previous
year. The 2020 consolidated financial statements of the Enel Group are also
prepared on a going-concern basis using the cost method, with the exception of
items that are measured at fair value under the IFRS-EU (as indicated in the
discussion of measurement criteria for the individual items) and non-current
assets (or disposal groups) classified as held for sale, which are measured at the
lower of carrying amount and fair value less costs to sell. The notes to the
consolidated financial statements provide a detailed discussion of the accounting
standards and measurement criteria adopted, accompanied by an indication of
standards applied for the first time in 2020, which did not have a significant
impact in the year under review. The consolidated financial statements for 2020
of the Enel Group underwent statutory audit by the audit firm KPMG SpA, which
issued an unqualified opinion, including with regard to the consistency of the
consistency of the Report on Operations and certain information in the Report on
3
401
Integrated Annual Report 2020
Corporate Governance and Ownership Structure with the consolidated financial
statements, as well as compliance with the provisions of law, pursuant to Article
14 of Decree 39/2010 and Article 10 of Regulation (EU) no. 537/2014. The report
of KPMG SpA also includes:
- a discussion of key aspects of the audit report on the consolidated financial
statements; and
-
the declaration provided pursuant to Article 14, paragraph 2(e) of Decree
39/2010 and Article 4 of CONSOB Regulation no. 20267 (implementing
Legislative Decree 254 of December 30, 2016) concerning, respectively, a
statement that the audit firm did not identify any significant errors in the
contents of the Report on Operations and that it verified that the Board of
Directors had approved the consolidated non-financial statement.
Under the terms of its engagement, KPMG SpA also issued unqualified opinions on
the financial statements for 2020 of the most significant Italian companies of the
Enel Group. Moreover, during periodic meetings with the representatives of the
audit firm, KPMG SpA, the latter did not raise any issues concerning the reporting
packages of the main foreign companies of the Enel Group, selected by the
auditors on the basis of the work plan established for the auditing of the
consolidated financial statements of the Enel Group that would have a sufficiently
material impact to be reported in the opinion on those financial statements;
•
taking due account of the recommendations of the European Securities and
Markets Authority issued on January 21, 2013, and most recently confirmed with
the Public Statement of October 28, 2020, to ensure appropriate transparency
concerning the methods used by listed companies in testing goodwill for
impairment, in line with the recommendations contained in the joint Bank of
Italy-CONSOB-ISVAP document no. 4 of March 3, 2010, and in the light of
indications of CONSOB in its Communication no. 7780 of January 28, 2016, the
compliance of the impairment testing procedure with the provisions of IAS 36 was
expressly approved by the Board of Directors of the Company, having obtained a
favorable opinion in this regard from the Control and Risk Committee in February
2021, i.e. prior to the date of approval of the financial statements for 2020;
• we examined the Board of Directors’ proposal for the allocation of net profit for
2020 and the distribution of available reserves and have no comments in this
regard;
• we note that the Board of Directors of the Company certified, following
appropriate checks by the Control and Risk Committee and the Board of Statutory
Auditors in March 2021, that as at the date on which the 2020 financial
statements were approved, the Enel Group continued to meet the conditions
established by CONSOB (set out in Article 15 of the Market Rules, approved with
4
402
Resolution no. 20249 of December 28, 2017) concerning the accounting
transparency and adequacy of the organizational structures and internal control
systems that subsidiaries established and regulated under the law of non-EU
countries must comply with so that Enel shares can continue to be listed on
regulated markets in Italy;
• we monitored, within the scope of our responsibilities, the adequacy of the
organizational structure of the Company (and the Enel Group as a whole),
obtaining information from department heads and in meetings with the boards of
auditors or equivalent bodies of a number of the main Enel Group companies in
Italy and abroad, for the purpose of the reciprocal exchange of material
information. As from the second half of 2014, the organizational structure of the
Enel Group is based on a matrix of global business lines and geographical areas.
Taking account of the changes implemented most recently in 2020 and the early
months of 2021, it is organized into: (i) Global Business Lines, which are
responsible for managing and developing assets, optimizing their performance
and the return on capital employed in the various geographical areas in which the
Group operates. The Global Business Lines are: Global Power Generation, Global
Energy and Commodity Management, Global Infrastructure and Networks and
Enel X; (ii) Regions and Countries, which are responsible for managing
relationships with local institutional bodies, regulatory authorities, the media and
other local stakeholders, as well as the development of the customer base with
regard to the sale of electricity and gas, in each of the countries in which the
Group is present, while also providing staff and other service support to the
Global Business Lines and adopting appropriate security, safety and
environmental standards. Regions and Countries comprise: Italy, Iberia, Europe,
Latin America, North America, and Africa, Asia and Oceania; (iii) Global Service
Functions, which are responsible for managing information and communication
technology activities (Global Digital Solutions) and procurement at the Group
level (Global Procurement); and (iv) Holding Company Functions, which among
other things are responsible for managing governance processes at the Group
level. They include: Administration, Finance and Control, Human Resources and
Organization, Communication, Legal and Corporate Affairs, Audit, and Innovation
and Sustainability. The Board of Statutory Auditors feels that the organizational
system described above is adequate to support the strategic development of the
Company and the Enel Group and is also consistent with control requirements;
• during meetings with the boards of auditors or equivalent bodies of a number of
the Group’s main companies in Italy and abroad, no material issues emerged that
would require reporting here;
5
403
Integrated Annual Report 2020
• we monitored the independence of the audit firms, first EY SpA and then its
successor during 2020 KPMG SpA, having received today from KPMG (which
succeeded EY SpA beginning with the audit activity performed for Enel’s
consolidated half-year report for 2020) specific written confirmation that they met
that requirement (pursuant to the provisions of Article 6, paragraph 2(a), of
Regulation (EU) no. 537/2014) and paragraph 17 of international standard on
auditing (ISA Italia) 260 and having discussed the substance of that declaration
with the audit partner. In this regard, we also monitored – as provided for under
Article 19, paragraph 1(e), of Legislative Decree 39/2010 – the nature and the
scale of non-audit services provided to the Company and other Enel Group
companies by EY SpA and then KPMG SpA and the entities belonging to their
respective networks. The fees due to KPMG SpA and the entities belonging to its
network are reported in the notes to the separate financial statements of the
Company. Following our examinations, the Board of Statutory Auditors feels that
there are no critical issues concerning the independence of EY SpA or its
successor during the 2020 KPMG SpA.
We held periodic meetings with the representatives of the audit firms, pursuant to
Article 150, paragraph 3, of the Consolidated Law on Financial Intermediation,
and no material issues emerged that would require mention in this report.
With specific regard to the provisions of Article 11 of Regulation (EU) no.
537/2014, KPMG SpA today provided the Board of Statutory Auditors with the
“additional report” for 2020 on the results of the statutory audit carried out,
which indicates no significant difficulties encountered during the audit or any
significant shortcomings in the internal control system for financial reporting or
the Enel accounting system that would raise issues requiring mention in the
opinion on the separate and consolidated financial statements. The Board of
Statutory Auditors will transmit that report to the Board of Directors promptly,
accompanied by any comments it may have, in accordance with Article 19,
paragraph 1(a), of Legislative Decree 39/2010.
As at the date of this report, the audit firm also reported that it did not prepare
any management letter for 2020;
• we monitored the financial reporting process, the appropriateness of the
administrative and accounting system and
its reliability
in representing
operational events, as well as compliance with the principles of sound
administration in the performance of the Company’s business and we have no
comments in that regard. We conducted our checks by obtaining information from
the head of the Administration, Finance and Control department (taking due
account of the head’s role as the officer responsible for the preparation of the
Company’s financial reports), examining Company documentation and analyzing
6
404
the findings of the examinations performed first by EY SpA and then its successor
during 2020 KPMG SpA. The Chief Executive Officer and the officer in charge of
financial reporting of Enel issued a statement (regarding the Company’s 2020
separate financial statements) certifying (i) the appropriateness with respect to
the characteristics of the Company and the effective adoption of the
administrative and accounting procedures used in the preparation of the financial
statements; (ii) the compliance of the content of the financial reports with
international accounting standards endorsed by the European Union pursuant to
Regulation (EC) no. 1606/2002; (iii) the correspondence of the financial
statements with the information in the books and other accounting records and
their ability to provide a true and fair representation of the performance and
financial position of the Company; and (iv) that the Report on Operations
accompanying the financial statements contains a reliable analysis of operations
and performance, as well as the situation of the issuer, together with a
description of the main risks and uncertainties to which it is exposed. The
statement also affirmed that the appropriateness of the administrative and
accounting procedures used in the preparation of the separate financial
statements of the Company had been verified in an assessment of the internal
control system for financial reporting (supported by the findings of the
independent testing performed by a qualified external advisor and – only for the
Information Technology General Controls – the Company’s Audit department) and
that the assessment of the internal control system did not identify any material
issues. An analogous statement was prepared for the consolidated financial
statements for 2020 of the Enel Group;
• we monitored the adequacy and effectiveness of the internal control system,
primarily through constant participation of the head of the Audit department of
the Company in the meetings of the Board of Statutory Auditors and holding
about half of the meetings jointly with the Control and Risk Committee, as well as
through periodic meetings with the body charged with overseeing the operation of
and compliance with the organizational and management model adopted by the
Company pursuant to Legislative Decree 231/2001. In the light of our
examination and in the absence of significant issues, the internal control and risk
management system can be considered adequate and effective. In February
2021, the Board of Directors of the Company expressed an analogous assessment
of the situation and also noted, in November 2020, that the main risks associated
with the strategic targets set out in the 2021-2023 Business Plan were compatible
with the management of the Company in a manner consistent with those targets;
7
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Integrated Annual Report 2020
•
in 2020 no petitions were received by the Board of Auditors nor did we receive
any complaints concerning circumstances deemed censurable pursuant to Article
2408 of the Italian Civil Code;
• we monitored the effective implementation of the Corporate Governance Code,
which the Company has adopted, verifying the compliance of Enel’s governance
arrangements with the recommendations of the Code. Detailed information on the
Company’s corporate governance system can be found in the Report on Corporate
Governance and Ownership Structure for 2020.
In February and June 2020, the Board of Statutory Auditors verified that the
Board of Directors, in evaluating the independence of non-executive directors,
correctly applied the assessment criteria specified in the Corporate Governance
Code and the principle of the priority of substance over form set out in that Code,
adopting a transparent procedure, the details of which are discussed in the Report
on Corporate Governance and Ownership Structure for 2020.
With regard to the so-called “self-assessment” of the independence of its
members, the Board of Statutory Auditors – in February 2020 – ascertained that
all standing statutory auditors met the relevant requirements set out in the
Consolidated Law on Financial Intermediation and in the Corporate Governance
Code.
In the final part of 2020 and during the first two months of 2021, the Board of
Statutory Auditors, with the support of an independent advisory firm, conducted a
board review assessing the size, composition and functioning of the Board of
Statutory Auditors, as was done for 2018 and 2019, similar to the review
conducted for the Board of Directors since 2004. This is a best practice that the
Board of Statutory Auditors intended to adopt even in the absence of a specific
recommendation of the Corporate Governance Code, a “peer-to-peer review”
approach, i.e. the assessment not only of the functioning of the body as a whole,
but also of the style and content of the contribution provided by each of the
auditors. The findings of the board review for 2020 reveal the unanimous
agreement of the members of the Board of Statutory Auditors concerning the
complete adequacy of its size, membership and functioning. Compared with the
previous year, it was confirmed that the oversight body has adopted effective and
efficient operating methods that comply with the reference regulatory framework.
Note that during the assessment phase that preceded the adoption by the Board
of Directors of Enel of the measures intended to ensure the implementation of the
changes contained in the Italian Corporate Governance Code published in January
2020, the Board of Statutory Auditors, in December 2020, invited the Board of
Directors to take account of a number of recommendations intended to ensure
the optimal functioning of the Board committees. In particular, the Board of
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406
Statutory Auditors recommended that the task of assisting the Board of Directors
in implementing the board review should be entrusted to a single Board
committee and that the organizational rules of the Committees should limit the
number of responsibilities to be exercised jointly to the greatest possible
extent.(2) The Board of Directors, when adopting the measures intended to ensure
the implementation by Enel of the changes to the Italian Corporate Governance
Code published in January 2020, took account of the guidance offered by the
Board of Statutory Auditors;
•
during 2020, the Board of Statutory Auditors also participated in an induction
program, structured into 17 meetings, organized by the Company to provide an
adequate understanding of the business sectors in which the Enel Group
operates, as well as the company dynamics and their evolution, market trends
and the applicable regulatory framework. For an analysis of the issues addressed
at the various induction sessions, please see the Report on Corporate
Governance and Ownership Structure for 2020;
• we monitored the application of the provisions of Legislative Decree 254 of
December 30, 2016 (hereinafter “Decree 254”) concerning the disclosure of non-
financial and diversity information by certain large undertakings and groups. In
performing that activity, we monitored the adequacy of the organizational,
administrative, reporting and control system established by the Company in order
to enable the accurate representation in the consolidated non-financial statement
for 2020 of the activity of the Enel Group, its results and its impacts in the non-
financial areas referred to in Article 3, paragraph 1, of Decree 254, and have no
comments in this regard. As at the date of this report, the audit firm, KPMG SpA,
had not yet issued, pursuant to Article 3, paragraph 10, of Decree 254 and Article
5 of CONSOB Regulation no. 20267 of January 18, 2018, its certification of the
conformity of the information provided in the consolidated non-financial
statement with the requirements of applicable law. In any event, during meetings
with KPMG SpA, the audit firm did not raise any issues in this regard of such
significance that they would require mention in this report;
• since the listing of its shares, the Company has adopted specific rules (most
recently amended in September 2018) for the internal management and
processing of confidential information, which also set out the procedures for the
disclosure of documentation and information concerning the Company and the
(2) This is because the assignment of assessment duties jointly to multiple Board committees,
the sum of whose members represents more than half of the members of the Board of
Directors, may in the opinion of the Board of Statutory Auditors – taking account of the fact
that its power is not merely consultative but advisory – have an adverse impact on the
evaluative independence of the Board of Directors and, therefore, impede the correct
functioning of the collegial method.
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Integrated Annual Report 2020
Group, with specific regard to inside information. Those rules (which can be
consulted on the corporate website) contain appropriate provisions directed at
subsidiaries to enable Enel to comply with statutory public disclosure
requirements, pursuant to Article 114, paragraph 2, of the Consolidated Law on
Financial Intermediation;
•
in 2002 the Company also adopted (and has subsequently updated, most recently
in February 2021) a Code of Ethics (also available on the corporate website) that
expresses the commitments and ethical responsibilities involved in the conduct of
business, regulating and harmonizing corporate conduct in accordance with
standards of maximum transparency and fairness with respect to all stakeholders;
• with regard to the provisions of Legislative Decree 231 of June 8, 2001 – which
introduced into Italian law a system of administrative (in fact criminal) liability for
companies for certain types of offences committed by its directors, managers or
employees on behalf of or to the benefit of the company – since July 2002 Enel
has adopted a compliance program consisting of a “general part” and various
“special parts” concerning the difference offences specified by Legislative Decree
231/2001 that the program is intended to prevent. For a description of the
manner in which the model has been adapted to the characteristics of the various
Italian companies of the Group, as well as a description of the purposes of the
“Enel Global Compliance Program” for the Group’s foreign companies, please see
the Report on Corporate Governance and Ownership Structure for 2020. The
structure that monitors the operation and compliance with the program and is
responsible for updating it is a collegial body. In July 2020, the Board of Directors
again appointed the members of that body, which is still composed of three
external members who jointly have specific professional expertise on corporate
organization matters and corporate criminal law. The Board of Statutory Auditors
received adequate information on the main activities carried out in 2020 by that
structure, including in meetings with its members. Our examination of those
activities found no facts or situations that would require mention in this report;
•
in 2020, the Board of Statutory Auditors issued a the following opinions:
- a favorable opinion (at the meeting of January 28, 2020) on the 2020 Audit
Plan, in accordance with the provisions of Article 7.C.1, letter c) of the
Corporate Governance Code;
- a favorable opinion (at the meeting of July 2, 2020) pursuant to Article 2389,
paragraph 3, of the Italian Civil Code, regarding the amount of remuneration
to be paid to the members of the various committees established within the
Board of Directors, following the appointment of the latter body by the
Shareholders’ Meeting on May 14, 2020, taking account of the provisions of
10
408
Enel’s remuneration policy for 2020 approved with a binding vote by the
Shareholders’ Meeting;
- a favorable opinion (at the same meeting of July 2, 2020) on the attendance
fee to be paid to the Magistrate of the Court of Auditors delegated to monitor
the financial management of Enel for participation in the meetings of the
corporate bodies;
- a favorable opinion (at the meeting of October 7, 2020) pursuant to Article
2389, paragraph 3, of the Civil Code, regarding the decisions concerning the
remuneration and terms and conditions of employment for top management,
taking account of the provisions of Enel’s remuneration policy for 2020
approved with a binding vote by the Shareholders’ Meeting of May 14, 2020;
• a report on the fixed and variable compensation accrued by those who served as
Chairman of the Board of Directors, the Chief Executive Officer/General Manager
and other directors in 2020 for their respective positions and any compensation
instruments awarded to them is contained in the second section of the Report on
Remuneration Policy for 2021 and Remuneration Paid in 2020 referred to in
Article 123-ter of the Consolidated Law on Financial Intermediation (for the sake
of brevity, “Remuneration Report” hereinafter), approved by the Board of
Directors, acting on a proposal of the Nomination and Compensation Committee
on April 15, 2021, which will be published in compliance with the time limits
established by law. The design of these remuneration instruments is in line with
best practices as it complies with the principle of establishing a link with
appropriate financial and non-financial performance targets and pursuing the
creation of shareholder value over the medium and long term. The proposals to
the Board of Directors concerning such forms of compensation and the
determination of the associated parameters were prepared by the Nomination and
Compensation Committee, which is made up entirely of independent directors,
drawing on the findings of benchmark analyses, including at the international
level, conducted by an independent consulting firm. In addition, the second
section of the Remuneration Report contains, in compliance with the applicable
CONSOB regulations, specific disclosures on the remuneration earned in 2020 by
the members of the oversight body and by key management personnel (in
aggregate form for the latter).
The Board of Statutory Auditors also supervised the process of preparing the
remuneration policy for 2021 – described in full in the first section of the
Remuneration Report – without finding any critical issues. In particular, oversight
activity examined the consistency of the various measures envisaged by that
policy with (i) the provisions of Directive (EU) no. 2017/828 as transposed into
Italian law, with (ii) the recommendations of the Italian Corporate Governance
11
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Integrated Annual Report 2020
Code published in January 2020, as well as with (iii) the results of the benchmark
analysis carried out, including at the international level, by an independent
consulting firm that the Nomination and Compensation Committee elected to
engage.
As indicated in the first section of the Remuneration Report, during the
preparation of the remuneration policy for 2021, the Board of Statutory Auditors
– taking account of the recommendations in this regard by the Italian Corporate
Governance Committee – asked the independent consulting firm to conduct an
additional benchmark analysis to ascertain the adequacy of the remuneration paid
to the members of the oversight body. This analysis was performed on the basis
of the data reported in the documentation published on the occasion of 2020
Shareholders’ Meetings by issuers belonging to a peer group composed – unlike
that used for the analogous analysis concerning the Board of Directors –
exclusively of Italian companies belonging the FTSE-MIB index(3). The functions
that the Italian legal system assigns to the Board of Statutory Auditors
differentiate the latter from the bodies with oversight functions provided for in the
one-tier and two-tier governance systems commonly adopted in other countries.
For the purpose of identifying the peer group, the consultant, in agreement with
the Board of Statutory Auditors, agreed to exclude certain industrial companies
belonging to the FTSE-MIB index that have concentrated ownership structures,
while evaluating some companies in the FTSE-MIB index operating in the financial
services industry.
The analysis showed that, on the basis of the data as at December 31, 2019, Enel
exceeds the peer group in terms of capitalization, is above the ninth decile in
terms of revenue and slightly below the ninth decile in terms of number of
employees.
The same analysis also found that – against Enel’s very high positioning
compared with the companies included in the panel in terms of capitalization,
revenue and number of employees – the remuneration of the Chairman of the
Board of Statutory Auditors and of the other Statutory Auditors is just above the
peer group median. The analysis also found that in 2019, on average, the boards
of statutory auditors of the companies belonging to the panel were composed of
four standing auditors compared with the three standing members of Enel’s Board
of Statutory Auditors, and held 26 meetings compared with the 17 meetings held
by Enel’s Board of Statutory Auditors. From this last point of view, however, it
(3) The peer group consists of the following 19 companies: A2A, Atlantia, Banco BPM, BPER
Banca, Eni, Generali, Hera, Leonardo, Mediobanca, Nexi, Pirelli, Poste Italiane, Prysmian,
Saipem, Snam, Terna, TIM, Unicredit and Unipol.
12
410
should be noted that in 2020 the Enel Board of Statutory Auditors held 27
meetings, a significant increase compared with the previous year.
On the basis of the analysis, it therefore emerged that the competitiveness of the
remuneration envisaged for the Chairman and the standing members of Enel’s
Board of Statutory Auditors is substantially similar to that envisaged for non-
executive directors with regard to the remuneration paid to them in their capacity
as directors. However, the consultant noted that there is a weaker correlation
compared with non-executive directors between the remuneration paid to the
members of the Board of Statutory Auditors and the volume of work requested of
them. In this regard, it should borne in mind that the overall remuneration paid
to non-executive directors also takes into account their possible participation on
the Board committees, while the members of the Board of Statutory Auditors
regularly take part in the meetings of these committees as a necessary part of
the performance of the oversight tasks assigned to them by law without being
remunerated for this activity.
Finally, it should be noted that the benchmark analysis found a clear correlation
between the competitiveness of the remuneration offered by the peer group
companies to their respective boards of statutory auditors and the different work
load required of them, as indicated by the number of meetings held in 2019. At
the same time, the analysis noted that the amount of remuneration paid to the
Chairman and the standing members of Enel’s Board of Statutory Auditors is
substantially in line with that currently paid by most of the peer group companies
in which the Ministry for the Economy and Finance holds a significant direct
and/or indirect investment.
The Board of Statutory Auditors’ oversight activity in 2020 was carried out in 27
meetings (12 of which held jointly with the Control and Risk Committee) and with
participation in the 16 meetings of the Board of Directors, and, through the chairman
or one or more of its members, in the 12 meetings of the Nomination and
Compensation Committee, in the 4 meetings of the Related Parties Committee and in
the 11 meetings of the Corporate Governance and Sustainability Committee. The
delegated magistrate of the State Audit Court participated in the meetings of the
Board of Statutory Auditors and those of the Board of Directors.
During the course of this activity and on the basis of information obtained from KPMG
SpA, no omissions, censurable facts, irregularities or other significant developments
were found that would require reporting to the regulatory authorities or mention in
this report.
Finally, the Board of Statutory Auditors notes that, as at the date of this report, the
major global health emergency associated with the COVID-19 pandemic has not
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Integrated Annual Report 2020
ended. Italian authorities have introduced significant limitations on freedom of
movement within the country to contain the contagion, among other things imposing
bans on gatherings.
In this context, the Board of Statutory Auditors, in compliance with the above
measures to contain the COVID-19 pandemic, held nearly all of its meetings –
beginning with the meeting of February 26, 2020 – exclusively with the use of
audio/video conference systems by all participants, which nevertheless ensured their
identification and the exchange of documentation – in accordance with the provisions
of Article 25.4 of the bylaws – and, more generally, the full performance of the
oversight body’s functions.
The Board of Statutory Auditors also notes that the Company’s Board of Directors has
called the ordinary Shareholders’ Meeting for May 20, 2021 in a single call,
establishing that – in light of the evolution of the COVID-19 pandemic and taking
account of the provisions concerning the holding of company meetings in Article 106,
paragraph 4, of Decree Law 18 of March 17, 2020, ratified with amendments by Law
27 of April 24, 2020(4) – it will be conducted in a manner that enables shareholders to
participate exclusively through the shareholders’ representative designated by the
Company referred to in Article 135-undecies of the Consolidated Law on Financial
Intermediation, to whom shareholders may also confer proxies or sub-proxies
pursuant to Article 135-novies of the Consolidated Law, also in derogation from the
provisions of Article 135-undecies, paragraph 4, of the Consolidated Law. The Board
of Statutory Auditors will ensure that the rights of the shareholders can be exercised
on the occasion of the aforementioned Shareholders’ Meeting, within the limits
permitted by the special procedures envisaged for holding the Meeting.
During 2021, the Board of Statutory Auditors will continue to carry out its oversight
activity in close coordination with the Board of Directors and the audit firm to
evaluate the impact of the COVID-19 pandemic on the performance and financial
position of the Company and the Enel Group.
Based on the oversight activity performed and the information exchanged with the
independent auditors KPMG SpA, we recommend that you approve the Company’s
financial statements for the year ended December 31, 2020 in conformity with the
proposals of the Board of Directors.
Rome, April 16, 2021
The Board of Auditors
(4) Whose validity was extended until July 31, 2021 by Article 3, paragraph 6, of Decree Law
183 of December 31, 2020, ratified with amendments by Law 21 of February 26, 2021.
14
412
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
dal Consiglio di Amministrazione.
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
dal Consiglio di Amministrazione.
Roma, 8 aprile 2020
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
Il Collegio Sindacale
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
dal Consiglio di Amministrazione.
Roma, 8 aprile 2020
Il Collegio Sindacale
Roma, 8 aprile 2020
Il Collegio Sindacale
_____________
Dott.ssa Barbara Tadolini Presidente
_____________
____________________
Dott.ssa Barbara Tadolini Presidente
Barbara Tadolini - Chairman
_____________
Dott.ssa Barbara Tadolini Presidente
____________________
____________________
____________________
Romina Guglielmetti - Auditor
Avv. Romina Guglielmetti – Sindaco
Avv. Romina Guglielmetti – Sindaco
____________________
Avv. Romina Guglielmetti – Sindaco
____________________
Claudio Sottoriva - Auditor
____________________
____________________
____________________
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
13
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413
Integrated Annual Report 2020
Independent auditors’
report
414
KPMG S.p.A.
Revisione e organizzazione contabile
Via Curtatone, 3
00185 ROMA RM
Telefono +39 06 80961.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
(Translation from the Italian original which remains the definitive version)
Independent auditors’ report pursuant to article 14 of
Legislative decree no. 39 of 27 January 2010 and article 10
of Regulation (EU) no. 537 of 16 April 2014
To the shareholders of
Enel S.p.A.
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of the Enel Group (the
“group”), which comprise the statement of financial position as at 31 December 2020,
the income statement and the statements of comprehensive income, changes in
equity and cash flows for the year then ended and notes thereto, which include a
summary of the significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the
financial position of the Enel Group as at 31 December 2020 and of its financial
performance and cash flows for the year then ended in accordance with the
International Financial Reporting Standards endorsed by the European Union and the
Italian regulations implementing article 9 of Legislative decree no. 38/05.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA
Italia). Our responsibilities under those standards are further described in the
“Auditors’ responsibilities for the audit of the consolidated financial statements” section
of our report. We are independent of Enel S.p.A. (the “parent”) in accordance with the
ethics and independence rules and standards applicable in Italy to audits of financial
statements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other matters
The group’s 2019 consolidated financial statements were audited by other auditors,
who expressed their unqualified opinion thereon on 8 April 2020.
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
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e Codice Fiscale N. 00709600159
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415
Integrated Annual Report 2020
Enel Group
Independent auditors’ report
31 December 2020
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in the audit of the consolidated financial statements of the current year.
These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Recognition of revenue from the supply of electricity and gas not yet invoiced
Notes to the consolidated financial statements: notes 2.1 “Use of estimates and
management judgement – Revenue from contracts with customers”, 2.2 “Significant
accounting policies – Revenue from contracts with customers”, 9.a “Revenue from
sales and services” and 32 “Trade receivables”
Key audit matter
Revenue from the supply of electricity and
gas to end users is recognised at the time
the electricity or gas is delivered and
includes, in addition to amounts invoiced on
the basis of periodic meter readings or on
the volumes notified by distributors and
transporters, an estimate of the electricity
and gas delivered during the year but not yet
invoiced that is calculated also taking
account of any network losses. Revenue
accrued between the date of the last meter
reading and the year-end is based on
estimates of the daily consumption of
individual customers, primarily determined
on their historical information, adjusted to
reflect the climate factors or other matters
that may affect the estimated consumption.
These estimates are very complex given the
nature of underlying assumptions.
Therefore, we believe that the recognition of
revenue from the supply of electricity and
gas not yet invoiced is a key audit matter.
Audit procedures addressing the key
audit matter
Our audit procedures included:
— understanding the process for the
recognition of revenue from the supply
of electricity and gas not yet invoiced;
— assessing the design, implementation
and operating effectiveness of controls,
including IT controls, deemed material
for the purposes of our audit, including
by involving our IT specialists;
— performing substantive procedures on
the electricity and gas volumes
considered in the estimation;
— checking the accuracy of the selling
prices used in the estimation;
— comparing the estimates recognised in
the consolidated financial statements
with the subsequent actual figures;
— assessing the appropriateness of the
disclosures provided in the notes about
the revenue from the supply of electricity
and gas not yet invoiced.
Recoverability of non-current assets
Notes to the consolidated financial statements: notes 2.1 “Use of estimates and
management judgement - Impairment of non-financial assets and Identification of
cash-generating units (CGUs)”, 2.2. “Significant accounting policies – Impairment of
non-financial assets”, 10.e “Depreciation, amortisation and other impairment losses”,
17 “Property, plant and equipment” and 22 “Goodwill”
Key audit matter
The consolidated financial statements at 31
December 2020 include property, plant and
equipment of €78,718 million, intangible
assets of €17,668 million and goodwill of
€13,779 million under non-current assets.
Audit procedures addressing the key
audit matter
Our audit procedures included:
— understanding the impairment testing
procedure approved by the company’s
board of directors on 25 February 2021;
416
2
Enel Group
Independent auditors’ report
31 December 2020
The directors tested the cash-generating
units (CGUs) to which goodwill is allocated
or that include other non-current assets for
which indicators of impairment had been
identified for impairment.
The directors have calculated the CGUs’
estimated recoverable amount, based on
their value in use, using the discounted cash
flow model.The model is very complex and
entails the use of estimates which, by their
very nature, are uncertain and subjective,
about:
— the expected cash flows, calculated by
taking into account the general
economic performance and that of the
group’s sector, the actual cash flows for
recent years and the projected growth
rates;
— the financial parameters used to
calculate the discount rate.
For the above reasons, we believe that the
recoverability of non-current assets is a key
audit matter.
— understanding the process for preparing
the business plan approved by the
parent’s board of directors on 23
November 2020 (the “business plan”);
— analysing the reasonableness of the
main assumptions used by the directors
to prepare the business plan, including
their consistency with the group’s
strategies addressing the climate
change and the objectives of the Paris
Agreement;
— analysing the criteria used to identify the
CGUs and tracing the amount of the
CGUs’ assets and liabilities to the
relevant carrying amounts in the
consolidated financial statements;
— assessing the consistency of the cash
flows used for impairment testing with
the cash flows forecast in the business
plan;
— analysing the most significant
—
discrepancies between the previous
year business plans’ figures and actual
figures, in order to check the accuracy of
the estimation process adopted;
involving experts of the KPMG network
in the assessment of the
reasonableness of the impairment
testing and related assumptions,
including by means of a comparison with
external data and information;
— assessing the appropriateness of the
disclosures provided in the notes about
non-current assets and the related
impairment tests.
Responsibilities of the parent’s directors and board of statutory auditors
(“Collegio Sindacale”) for the consolidated financial statements
The directors are responsible for the preparation of consolidated financial statements
that give a true and fair view in accordance with the International Financial Reporting
Standards endorsed by the European Union and the Italian regulations implementing
article 9 of Legislative decree no. 38/05 and, within the terms established by the Italian
law, for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud
or error.
The directors are responsible for assessing the group’s ability to continue as a going
concern and for the appropriate use of the going concern basis in the preparation of
the consolidated financial statements and for the adequacy of the related disclosures.
The use of this basis of accounting is appropriate unless the directors believe that the
conditions for liquidating the parent or ceasing operations exist, or have no realistic
alternative but to do so.
The Collegio Sindacale is responsible for overseeing, within the terms established by
the Italian law, the group’s financial reporting process.
3
417
Integrated Annual Report 2020
Enel Group
Independent auditors’ report
31 December 2020
Auditors’ responsibilities for the audit of the consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated
financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISA Italia will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISA Italia, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
— identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control;
— obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the group’s internal control;
— evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the directors;
— conclude on the appropriateness of the directors’ use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors’ report to the
related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or
conditions may cause the group to cease to continue as a going concern;
— evaluate the overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner
that achieves fair presentation;
— obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the group to express an opinion on the
consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance, identified at the appropriate
level required by ISA Italia, regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
418
4
Enel Group
Independent auditors’ report
31 December 2020
We also provide those charged with governance with a statement that we have
complied with the ethics and independence rules and standards applicable in Italy and
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the consolidated financial
statements of the current year and are, therefore, the key audit matters. We describe
these matters in our auditors’ report.
Other information required by article 10 of Regulation (EU) no. 537/14
On 16 May 2019, the company’s shareholders appointed us to perform the statutory
audit of its separate and consolidated financial statements as at and for the years
ending from 31 December 2020 to 31 December 2028.
We declare that we did not provide the prohibited non-audit services referred to in
article 5.1 of Regulation (EU) no. 537/14 and that we remained independent of the
parent in conducting the statutory audit.
We confirm that the opinion on the consolidated financial statements expressed herein
is consistent with the additional report to the Collegio Sindacale, in its capacity as
audit committee, prepared in accordance with article 11 of the Regulation mentioned
above.
Report on other legal and regulatory requirements
Opinion pursuant to article 14.2.e) of Legislative decree no. 39/10 and article
123-bis.4 of Legislative decree no. 58/98
The parent’s directors are responsible for the preparation of the group’s reports on
operation and on corporate governance and ownership structure at 31 December
2020 and for the consistency of such reports with the related consolidated financial
statements and their compliance with the applicable law.
We have performed the procedures required by Standard on Auditing (SA Italia) 720B
in order to express an opinion on the consistency of the report on operations and the
specific information presented in the report on corporate governance and ownership
structure indicated by article 123-bis.4 of Legislative decree no. 58/98 with the group’s
consolidated financial statements at 31 December 2020 and their compliance with the
applicable law and to state whether we have identified material misstatements.
In our opinion, the report on operations and the specific information presented in the
report on corporate governance and ownership structure referred to above are
consistent with the group’s consolidated financial statements at 31 December 2020
and have been prepared in compliance with the applicable law.
With reference to the above statement required by article 14.2.e) of Legislative decree
no. 39/10, based on our knowledge and understanding of the entity and its
environment obtained through our audit, we have nothing to report.
5
419
Integrated Annual Report 2020
Enel Group
Independent auditors’ report
31 December 2020
Statement pursuant to article 4 of the Consob regulation implementing
Legislative decree no. 254/16
The directors of Enel S.p.A. are responsible for the preparation of a non-financial
statement pursuant to Legislative decree no. 254/16. We have checked that the
directors had approved such non-financial statement. In accordance with article 3.10
of Legislative decree no. 254/16, we attested the compliance of the non-financial
statement separately.
Rome, 16 April 2021
KPMG S.p.A.
(signed on the original)
Renato Naschi
Director of Audit
420
6
ATTACHMENTS
Subsidiaries, associates
and other significant
equity investments of
the Enel Group
at December 31, 2020
In compliance with CONSOB Notice no. DEM/6064293 of
The following information is included for each company:
July 28, 2006 and Article 126 of CONSOB Resolution no.
name, registered office, share capital, currency in which
11971 of May 14, 1999, a list of subsidiaries and associa-
share capital is denominated, business segment, method
tes of Enel SpA at December 31, 2020, pursuant to Arti-
of consolidation, Group companies that have a stake in the
cle 2359 of the Italian Civil Code, and of other significant
company and their respective ownership share, and the
equity investments is provided below. Enel has full title to
Group’s ownership share.
all investments.
Business segment
Description of business segments
Group holding company
Country holding company
Enel Green Power
Thermal Generation
Trading
Infrastructure and Networks
Enel X
End-user Markets
Services
Finance
421
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Parent
Enel SpA
Rome
IT
10,166,679,946.00 EUR
Holding
Group %
holding
100.00%
Subsidiaries
400 Manley Solar
LLC
Boston
US
-
4814
Investments LLC
Andover
US
-
USD
USD
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
ABC Solar 11
SpA
Santiago de
Chile
ABC Solar 3 SpA
Santiago de
Chile
CL
1,000,000.00
CLP
Line-by-line
CL
1,000,000.00
CLP
Line-by-line
Aced
Renewables
Hidden Valley
(RF) (Pty) Ltd
Johannesburg
ZA
1,000.00
ZAR
ACEFAT AIE
Barcelona
ES
793,340.00
EUR
AFS
-
Adams Solar PV
Project Two (RF)
(Pty) Ltd
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Adria Link Srl
Gorizia
Aero-Tanna Srl
Rome
IT
IT
300,297.00
EUR
Equity
15,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Agassiz Beach
LLC
Agatos Green
Power Trino Srl
Minneapolis
US
-
USD
Line-by-line
Rome
IT
10,000.00
EUR
Line-by-line
Aguilón 20 SA
Zaragoza
ES
2,682,000.00
EUR
Line-by-line
Alba Energia
Ltda
Niterói
BR
16,045,169.00
BRL
Line-by-line
100.00%
Albany Solar LLC Wilmington
US
-
USD
Line-by-line
Alliance SA
Managua
NI
6,180,150.00
NIO
Equity
Ufinet Latam SLU
49.90%
10.28%
Almeyda Solar
SpA
Santiago de
Chile
CL
61,655,088.43
USD
Line-by-line
Enel Green Power
Chile SA
100.00%
64.93%
Udine
IT
900,000.00
EUR
Line-by-line
Enel Produzione
SpA
50.00%
50.00%
Alpe Adria
Energia Srl
422
Enel Green Power
Chile SA
100.00%
64.93%
Enel Green Power
Chile SA
100.00%
64.93%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00%
60.00%
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
14.29%
10.02%
Enel Green Power
RSA (Pty) Ltd
60.00%
60.00%
Enel Produzione
SpA
50.00%
50.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Enel Green Power
Solar Energy Srl
80.00%
80.00%
Enel Green Power
España SL
51.00%
35.75%
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Aurora Distributed
Solar LLC
100.00%
74.13%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Alta Farms Wind
Project II LLC
Andover
US
1.00
USD
Line-by-line
Alvorada Energia
SA
Niterói
BR
22,317,415.92
BRL
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Niterói
BR
2,498,230,386.65
BRL
Line-by-line
Enel Brasil SA
99.73%
64.83%
Ampla Energia e
Serviços SA
Annandale Solar
LLC
Apiacás Energia
SA
Aquilla Wind
Project LLC
Aragonesa de
Actividades
Energéticas SA
Aranort
Desarrollos SL
Aravalli Surya
(Project 1) Private
Limited
Asociación
Nuclear Ascó-
Vandellós II AIE
Wilmington
US
-
USD
Line-by-line
Niterói
BR
14,216,846.33
BRL
Line-by-line
Andover
US
1.00
USD
Line-by-line
Teruel
ES
60,100.00
EUR
Line-by-line
Madrid
ES
3,010.00
EUR
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Tarragona
ES
19,232,400.00
EUR
Proportional
Aurora Distributed
Solar LLC
100.00%
74.13%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Tradewind Energy
Inc.
100.00%
100.00%
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Endesa
Generación SA
100.00%
70.11%
100.00%
70.11%
100.00%
100.00%
85.41%
59.88%
Athonet Srl
100.00%
16.00%
Enel X Srl
16.00%
16.00%
Athonet Srl
100.00%
16.00%
Athonet Srl
100.00%
16.00%
-
-
-
-
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Aurora Solar
Holdings LLC
74.13%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
423
Athonet France
SASU
Paris
FR
50,000.00
EUR
Athonet Srl
Trieste
IT
68,927.57
EUR
Athonet UK Ltd
Battle, East
Sussex
GB
1.00
Athonet USA Inc. Wilmington
US
1.00
Atwater Solar
LLC
Aurora
Distributed Solar
LLC
Aurora Land
Holdings LLC
Aurora Solar
Holdings LLC
Aurora Wind
Holdings LLC
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Andover
US
-
GBP
USD
USD
USD
USD
USD
USD
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Aurora Wind
Project LLC
Andover
US
1.00
Autumn Hills LLC Wilmington
US
-
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Avikiran Energy
India Private
Limited
Avikiran Solar
India Private
Limited
Avikiran Surya
India Private
Limited
Avikiran Vayu
India Private
Limited
Gurugram
IN
100,000.00
INR
Line-by-line
New Delhi
IN
100,000.00
INR
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Azure Sky Solar
Project LLC
Andover
US
1.00
Azure Sky Wind
Holdings LLC
Andover
US
-
Azure Sky Wind
Project LLC
Andover
US
1.00
Azure Sky Wind
Storage LLC
Andover
US
-
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Baikal Enterprise
SL
Palma de
Mallorca
Baleares Energy
SL
Palma de
Mallorca
ES
3,006.00
EUR
Line-by-line
ES
4,509.00
EUR
Line-by-line
Barnwell County
Solar Project LLC
Andover
US
-
USD
Line-by-line
Baylio Solar SLU
Seville
ES
3,000.00
EUR
Line-by-line
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
Wilmington
US
-
Wilmington
US
-
USD
USD
Line-by-line
Line-by-line
Beaver Valley
Holdings LLC
67.50%
67.50%
Moscow
RU
3,010,000.00
RUB
Line-by-line
Andover
US
1.00
USD
Line-by-line
Enel Green Power
North America Inc.
Enel Green Power
Rus Limited
Liability Company
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Beaver Falls
Water Power
Company
Beaver Valley
Holdings LLC
Belomechetskaya
WPS
Bijou Hills Wind
LLC
424
Slovenské
elektrárne AS
5.00%
1.65%
Enel Green Power
España SL
100.00%
70.11%
Enel X Colombia
SAS
100.00%
31.40%
Enel Green Power
España SL
40.00%
28.04%
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Green Power
España SL
51.00%
35.75%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Bioenergy Casei
Gerola Srl
Rome
IT
100,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Bison Meadows
Wind Project LLC
Andover
US
-
Blue Star Wind
Project LLC
Andover
US
1.00
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
BluRe M.A.
San José
LU
7,092,970.00
EUR
-
Bogaris PV1 SLU Seville
ES
3,000.00
EUR
Line-by-line
Bogotá ZE SAS
Bogotá
CO
1,000,000.00
COP
Line-by-line
Boiro Energía SA Boiro
ES
601,010.00
EUR
Equity
Bondia Energia
Ltda
Niterói
BR
2,950,888.00
BRL
Line-by-line
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Bosa del Ebro SL Zaragoza
ES
3,010.00
EUR
Line-by-line
Bottom Grass
Solar Project LLC
Boujdour Wind
Farm
Bp Hydro
Finance
Partnership
Casablanca
MA
300,000.00
MAD
Equity
Salt Lake City
US
-
Line-by-line
Nareva Enel Green
Power Morocco SA
90.00%
45.00%
Enel Kansas LLC
75.92%
Enel Green Power
North America Inc.
24.08%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
USD
USD
USD
USD
USD
Bravo Dome
Wind Project LLC
Andover
US
1.00
Brazoria County
Solar Project LLC
Andover
US
-
Brazoria West
Solar Project LLC
Andover
US
-
Brazos Flat Solar
Project LLC
Andover
US
-
Broadband
Comunicaciones
SA
Brush County
Solar Project LLC
Quito
EC
436,425.00
USD
Equity
Andover
US
-
USD
Line-by-line
Ufinet Ecuador
Ufiec SA
100.00%
20.60%
Ufinet Latam SLU
0.00%
Tradewind Energy
Inc.
100.00%
100.00%
425
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Buffalo Dunes
Wind Project LLC
Topeka
US
-
USD
Line-by-line
EGPNA
Development
Holdings LLC
75.00%
75.00%
Enel Alberta Wind
Inc.
0.10%
Buffalo Jump LP
Alberta
CA
10.00
CAD
Line-by-line
100.00%
Andover
US
1.00
USD
Line-by-line
Sydney
AU
1,000.00
AUD
Equity
Sydney
AU
100.00
AUD
Equity
Sydney
AU
100.00
AUD
Equity
Sydney
AU
1,000.00
AUD
Equity
Sydney
AU
-
AUD
Equity
Sydney
AU
1,000.00
AUD
Equity
Sydney
AU
100.00
AUD
Equity
Sydney
AU
100.00
AUD
Equity
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Enel Green Power
Canada Inc.
99.90%
Tradewind Energy
Inc.
100.00%
100.00%
Bungala One
Property (Pty) Ltd
100.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Bungala One
Operations
Holding (Pty) Ltd
Bungala One
Operations
Holding (Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
100.00%
51.00%
100.00%
51.00%
100.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Bungala One
Property Holding
(Pty) Ltd
Bungala Two
Property (Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Bungala Two
Operations
Holding (Pty) Ltd
Bungala Two
Operations
Holding (Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Buffalo Spirit
Wind Project LLC
Bungala One
Finco (Pty) Ltd
Bungala One
Operation
Holding Trust
Bungala One
Operations
Holding (Pty) Ltd
Bungala One
Operations (Pty)
Ltd
Bungala One
Operations Trust
Bungala One
Property (Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
Bungala One
Property Holding
Trust
Bungala One
Property Trust
Bungala Two
Finco (Pty) Ltd
Bungala Two
Operations
Holding (Pty) Ltd
Bungala Two
Operations
Holding Trust
Bungala Two
Operations (Pty)
Ltd
Bungala Two
Operations Trust
Bungala Two
Property Holding
(Pty) Ltd
Bungala Two
Property Holding
Trust
426
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Bungala Two
Property (Pty) Ltd
Sydney
AU
-
Sydney
AU
1.00
AUD
AUD
Equity
Equity
Johannesburg
ZA
100.00
ZAR
Line-by-line
Bungala Two
Property Holding
(Pty) Ltd
Bungala Two
Property Holding
(Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
C&C
Castelvetere Srl
Rome
C&C Uno Energy
Srl
Rome
IT
IT
100,000.00
EUR
Line-by-line
118,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Canastota Wind
Power LLC
Andover
US
-
Caney River
Wind Project LLC
Overland Park
US
-
USD
USD
Line-by-line
Fenner Wind
Holdings LLC
100.00%
100.00%
Equity
Rocky Caney Wind
LLC
100.00%
20.00%
Endesa Generación
Portugal SA
0.01%
Lisbon
PT
50,000.00
EUR
Equity
35.05%
Madrid
ES
3,000.00
EUR
Line-by-line
Endesa
Generación SA
49.99%
Enel Green Power
España SL
100.00%
70.11%
Enel Alberta Wind
Inc.
0.10%
Alberta
CA
-
CAD
Line-by-line
100.00%
Bungala Two
Property Trust
Business Venture
Investments
1468 (Pty) Ltd
Butterfly
Meadows Solar
Project LLC
Carbopego -
Abastecimento
de Combustíveis
SA
Castiblanco
Solar SL
Castle Rock
Ridge Limited
Partnership
Catalana
d’Iniciatives SCR
SA
Ccp.Ro
Bucharest SA
Enel Green Power
Canada Inc.
99.90%
Endesa Red
SA (Sociedad
Unipersonal)
0.94%
0.66%
Enel Romania SA
9.52%
9.52%
Almeyda Solar SpA 6.00%
3.90%
-
-
-
Barcelona
ES
30,862,800.00
EUR
Bucharest
RO
79,800,000.00
RON
Cdec - Sic Ltda
Santiago de
Chile
CL
709,783,206.00
CLP
Cedar Run Wind
Project LLC
Andover
US
1.00
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Celg Distribuição
SA - Celg D
Goiás
BR
5,075,679,362.52
BRL
Line-by-line
Enel Brasil SA
99.96%
64.97%
Central Dock
Sud SA
Buenos Aires
AR
1,231,270,567.54
ARS
Line-by-line
Enel Argentina SA
0.24%
Inversora Dock
Sud SA
71.78%
26.81%
427
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Central Geradora
Fotovoltaica Bom
Nome Ltda
Central Geradora
Fotovoltaica São
Francisco Ltda
Central Geradora
Termelétrica
Fortaleza SA
Central
Hidráulica
Güejar-Sierra SL
Central Térmica
de Anllares AIE
Salvador
BR
4,979,739.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil SA
0.00%
0.00%
Niterói
BR
74,549,250.00
BRL
Line-by-line
65.00%
Enel X Brasil SA
100.00%
Fortaleza
BR
151,935,779.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Seville
ES
364,213.34
EUR
Madrid
ES
595,000.00
EUR
Equity
Equity
Enel Green Power
España SL
33.30%
23.35%
Endesa
Generación SA
33.33%
23.37%
Central Dock Sud
SA
6.40%
Central Vuelta de
Obligado SA
Buenos Aires
AR
500,000.00
ARS
Equity
Enel Generación
Costanera SA
1.30%
16.54%
Madrid
ES
-
EUR
Kalná Nad
Hronom
SK
6,639.00
EUR
Enel Generación El
Chocón SA
33.20%
Equity
Equity
Endesa
Generación SA
Slovenské
elektrárne AS
24.18%
16.95%
100.00%
33.00%
Milan
IT
8,550,000.00
EUR
Equity
Enel SpA
42.70%
42.70%
Wilmington
US
1.00
USD
Line-by-line
Andover
US
1.00
Line-by-line
Cheyenne Ridge
Wind Project LLC
Andover
US
1.00
Wilmington
US
-
Wilmington
US
-
USD
USD
USD
USD
Andover
US
100.00
USD
Line-by-line
Chi Power Inc.
Naples
US
100.00
USD
Line-by-line
428
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Centrales
Nucleares
Almaraz-Trillo AIE
Centrum Pre
Vedu A Vyskum
SRO
CESI - Centro
Elettrotecnico
Sperimentale
Italiano Giacinto
Motta SpA
Champagne
Storage LLC
Cherrywood
Solar II LLC
Chi Black River
LLC
Chi Minnesota
Wind LLC
Chi Operations
Inc.
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Chi Power
Marketing Inc.
Wilmington
US
100.00
USD
Line-by-line
Chi West LLC
San Francisco
US
100.00
USD
Line-by-line
Chinango SAC
San Miguel
PE
295,249,298.00
PEN
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Generación
Perú SAA
80.00%
43.47%
Chisago Solar
LLC
Wilmington
US
-
Chisholm View II
Holding LLC
Chisholm View
Wind Project II
LLC
Chisholm View
Wind Project LLC
Wilmington
US
-
Wilmington
US
-
New York
US
-
USD
USD
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chisholm View II
Holding LLC
62.79%
62.79%
Equity
EGPNA REP Wind
Holdings LLC
100.00%
20.00%
Cimarron Bend
Assets LLC
Wilmington
US
-
USD
Line-by-line
Cimarron Bend III
HoldCo LLC
Andover
US
1.00
USD
Line-by-line
Wilmington
US
-
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Cimarron Bend
Wind Project I LLC
49.00%
Cimarron Bend
Wind Project II LLC
49.00%
Cimarron Bend
Wind Project III LLC
1.00%
Enel Kansas LLC
1.00%
100.00%
Enel Green Power
Cimarron Bend
Wind Holdings III
LLC
Cimarron Bend
Wind Holdings II
LLC
100.00%
100.00%
100.00%
100.00%
Cimarron Bend
Wind Holdings LLC
100.00%
100.00%
Andover
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Andover
US
1.00
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Line-by-line
Line-by-line
Cimarron Bend
Wind Holdings I
LLC
Cimarron Bend
Wind Holdings I
LLC
Cimarron Bend
Wind Holdings III
LLC
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
CivDrone
Haifa
IL
1,093,350.00
ILS
-
Enel Global
Infrastructure and
Networks Srl
4.27%
4.27%
429
Cimarron Bend
Wind Holdings
I LLC
Cimarron Bend
Wind Holdings
II LLC
Cimarron Bend
Wind Holdings
III LLC
Cimarron Bend
Wind Holdings
LLC
Cimarron Bend
Wind Project
I LLC
Cimarron Bend
Wind Project II
LLC
Cimarron Bend
Wind Project III
LLC
Cipher Solar
Project LLC
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Clear Sky Wind
Project LLC
Andover
US
1.00
Clinton Farms
Wind Project LLC
Andover
US
1.00
Cloudwalker
Wind Project LLC
Andover
US
1.00
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Codensa SA ESP Bogotá
CO
13,487,545,000.00 COP
Line-by-line
Enel Américas SA
48.30%
31.40%
Cogein Sannio
Srl
Cogeneración El
Salto SL
Rome
IT
10,000.00
EUR
Line-by-line
Zaragoza
ES
36,060.73
EUR
Equity
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
España SL
20.00%
14.02%
Cogenio Srl
Rome
IT
2,310,000.00
EUR
Equity
Enel.si Srl
20.00%
20.00%
Cohuna Solar
Farm (Pty) Ltd
Cohuna Solar
Farm Trust
Comanche Crest
Ranch LLC
Comercializadora
Eléctrica de
Cádiz SA
Compagnia
Porto di
Civitavecchia
SpA in
liquidation
Companhia
Energética do
Ceará - Coelce
Compañía de
Trasmisión del
Mercosur SA -
CTM
Compañía
Energética
Veracruz SAC
Sydney
AU
100.00
AUD
Line-by-line
Sydney
AU
1.00
Andover
US
1.00
AUD
USD
Enel Green Power
Cohuna Holdings
(Pty) Ltd
Enel Green Power
Cohuna Trust
100.00%
100.00%
100.00%
100.00%
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Cádiz
ES
600,000.00
EUR
Equity
Rome
IT
14,730,800.00
EUR
Equity
Endesa Red
SA (Sociedad
Unipersonal)
33.50%
23.49%
Enel Produzione
SpA
25.00%
25.00%
Fortaleza
BR
892,246,885.77
BRL
Line-by-line
Enel Brasil SA
74.05%
48.13%
Buenos Aires
AR
2,025,191,313.00
ARS
Line-by-line
Enel CIEN SA
25.85%
65.00%
Enel Brasil SA
74.15%
Enel SpA
0.00%
San Miguel
PE
2,886,000.00
PEN
Line-by-line
Enel Perú SAC
100.00%
65.00%
Compañía Eólica
Tierras Altas SA
Soria
ES
13,222,000.00
EUR
Equity
26.30%
Compañía Eólica
Tierras Altas SA
5.00%
Concert Srl
Rome
IT
10,000.00
EUR
Line-by-line
Concho Solar
I LLC
Andover
US
1.00
USD
Line-by-line
430
Enel Green Power
España SL
35.63%
Enel Global
Thermal
Generation Srl
100.00%
100.00%
Tradewind Energy
Inc.
100.00%
100.00%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
CONSEL -
Consorzio
ELIS per la
formazione
professionale
superiore
Consolidated
Hydro New
Hampshire LLC
Consolidated
Hydro Southeast
LLC
Consolidated
Pumped Storage
Inc.
Rome
IT
51,000.00
EUR
Equity
OpEn Fiber SpA
1.00%
0.50%
Wilmington
US
-
Wilmington
US
-
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Wilmington
US
550,000.00
USD
Line-by-line
Enel Green Power
North America Inc.
81.83%
81.83%
Consorzio Civita
in liquidation
Rome
Conza Green
Energy Srl
Rome
IT
IT
156,000.00
EUR
-
Enel SpA
33.30%
33.30%
73,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Copper Landing
Solar Project LLC
Corporación
Empresarial de
Extremadura SA
Corporación
Eólica de
Zaragoza SL
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Badajoz
ES
44,538,000.00
EUR
-
Endesa SA
1.01%
0.71%
La Puebla de
Alfinden
ES
271,652.00
EUR
Equity
Enel Green Power
España SL
25.00%
17.53%
Cow Creek Wind
Project LLC
Andover
US
1.00
Andover
US
1.00
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Sandton
ZA
100.00
ZAR
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Enel Green Power
Romania Srl
100.00%
De Rock Int’l Srl
Bucharest
RO
5,629,000.00
RON
Line-by-line
100.00%
Dehesa de los
Guadalupes
Solar SLU
Dehesa PV Farm
03 SLU
Dehesa PV Farm
04 SLU
Depuración
Destilación
Reciclaje SL
Seville
ES
3,000.00
EUR
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Boiro
ES
600,000.00
EUR
Equity
Enel Green Power
SpA
0.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
40.00%
28.04%
Derivex SA
Bogotá
CO
715,292,000.00
COP
-
Emgesa SA ESP
5.00%
1.58%
431
Crockett Solar
I LLC
Danax Energy
(Pty) Ltd
Integrated Annual Report 2020 Desarrollo
de Fuerzas
Renovables S de
RL de Cv
Di.T.N.E. -
Distretto
Tecnologico
Nazionale
sull’Energia
- Società
Consortile a
Responsabilità
Limitata
Diamond Vista
Holdings LLC
Distribuidora de
Energía Eléctrica
del Bages SA
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Mexico City
MX
33,101,350.00
MXN
Line-by-line
Group %
holding
100.00%
Held by
% holding
Enel Green Power
México S de RL
de Cv
99.99%
Energía Nueva
Energía Limpia
México S de RL
de Cv
0.01%
Rome
IT
405,850.51
EUR
-
Enel Produzione
SpA
1.89%
1.89%
Wilmington
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Endesa Red SA
(Sociedad
Unipersonal)
55.00%
70.11%
Hidroeléctrica de
Catalunya SL
45.00%
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
Barcelona
ES
108,240.00
EUR
Line-by-line
Distribuidora
Eléctrica del
Puerto de la Cruz
SA
Santa Cruz de
Tenerife
ES
12,621,210.00
EUR
Line-by-line
Distrilec
Inversora SA
Buenos Aires
AR
497,612,021.00
ARS
Line-by-line
Enel Américas SA
51.50%
33.48%
Dmd Holding AS
in liquidation
Trenčín-
Zlatovce
SK
199,543,284.87
EUR
-
Slovenské
elektrárne AS
2.94%
0.97%
Dodge Center
Distributed Solar
LLC
Dolores Wind SA
de Cv
Dominica
Energía Limpia
SA de Cv
Wilmington
US
-
USD
Line-by-line
Mexico City
MX
200.00
MXN
Line-by-line
Mexico City
MX
2,070,600,646.00 MXN
Equity
Aurora Distributed
Solar LLC
100.00%
74.13%
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
100.00%
1.00%
60.80%
20.00%
Dorset Ridge
Wind Project LLC
Andover
US
1.00
Dover Solar I LLC Andover
US
-
Dragonfly Fields
Solar Project LLC
Andover
US
-
Drift Sand Wind
Holdings LLC
Wilmington
US
-
Drift Sand Wind
Project LLC
Wilmington
US
-
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Equity
Enel Kansas LLC
50.00%
50.00%
Equity
Drift Sand Wind
Holdings LLC
100.00%
50.00%
432
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Dwarka Vayu 1
Private Limited
Gurgaon
E.S.CO. Comuni
Srl
Bergamo
IN
IT
100,000.00
INR
Line-by-line
Avikiran Vayu India
Private Limited
100.00%
100.00%
1,000,000.00
EUR
Line-by-line
Yousave SpA
60.00%
60.00%
Eastwood Solar
LLC
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
E-Distribuţie
Banat SA
E-Distribuţie
Dobrogea SA
E-Distribuţie
Muntenia SA
e-distribuzione
SpA
Wilmington
US
-
USD
Line-by-line
Madrid
ES
1,204,540,060.00
EUR
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
Timisoara
RO
382,158,580.00
RON
Line-by-line
Enel SpA
51.00%
51.00%
Constanţa
RO
280,285,560.00
RON
Line-by-line
Enel SpA
51.00%
51.00%
Bucharest
RO
271,635,250.00
RON
Line-by-line
Enel SpA
78.00%
78.00%
Rome
IT
2,600,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
EF Divesture LLC Andover
US
1.00
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Efficientya Srl
Bergamo
IT
100,000.00
EUR
Equity
Yousave SpA
50.00%
50.00%
EGP Américas
SpA
Santiago de
Chile
CL
12,000.00
USD
Line-by-line
Enel SpA
100.00%
100.00%
EGP Australia
(Pty) Ltd
EGP Bioenergy
Srl
EGP fotovoltaica
La Loma SAS in
liquidation
EGP Geronimo
Holding
Company Inc.
EGP HoldCo 1
LLC
EGP HoldCo 10
LLC
EGP HoldCo 11
LLC
EGP HoldCo 12
LLC
EGP HoldCo 13
LLC
Sydney
AU
10,000.00
AUD
Line-by-line
Rome
IT
1,000,000.00
EUR
Line-by-line
Bogotá
CO
8,000,000.00
COP
Line-by-line
Wilmington
US
1,000.00
USD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Green Power
Puglia Srl
100.00%
100.00%
Enel Green Power
Colombia SAS ESP
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
433
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Mexico City
MX
691,771,740.00
MXN
Line-by-line
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
100.00%
EGP HoldCo 14
LLC
EGP HoldCo 15
LLC
EGP HoldCo 16
LLC
EGP HoldCo 17
LLC
EGP HoldCo 18
LLC
EGP HoldCo 2
LLC
EGP HoldCo 3
LLC
EGP HoldCo 4
LLC
EGP HoldCo 5
LLC
EGP HoldCo 6
LLC
EGP HoldCo 7
LLC
EGP HoldCo 8
LLC
EGP HoldCo 9
LLC
EGP Magdalena
Solar SA de Cv
EGP Nevada
Power LLC
EGP Salt Wells
Solar LLC
Wilmington
US
-
Wilmington
US
-
EGP San Leandro
Microgrid I LLC
Wilmington
US
-
EGP Solar 1 LLC
Andover
US
-
EGP Solar
Services LLC
Andover
US
-
434
USD
USD
USD
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
EGPNA REP Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGP Stillwater
Solar LLC
EGP Stillwater
Solar PV II LLC
Wilmington
US
-
Wilmington
US
1.00
EGP Timber Hills
Project LLC
Los Angeles
US
-
EGPNA 2020
HoldCo 1 LLC
EGPNA 2020
HoldCo 10 LLC
EGPNA 2020
HoldCo 11 LLC
EGPNA 2020
HoldCo 12 LLC
EGPNA 2020
HoldCo 13 LLC
EGPNA 2020
HoldCo 14 LLC
EGPNA 2020
HoldCo 15 LLC
EGPNA 2020
HoldCo 16 LLC
EGPNA 2020
HoldCo 17 LLC
EGPNA 2020
HoldCo 18 LLC
EGPNA 2020
HoldCo 19 LLC
EGPNA 2020
HoldCo 2 LLC
EGPNA 2020
HoldCo 20 LLC
EGPNA 2020
HoldCo 21 LLC
EGPNA 2020
HoldCo 22 LLC
EGPNA 2020
HoldCo 23 LLC
EGPNA 2020
HoldCo 24 LLC
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Stillwater LLC 100.00%
100.00%
Line-by-line
Stillwater Woods
Hill Holdings LLC
100.00%
100.00%
Line-by-line
Padoma Wind
Power LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
435
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Line-by-line
Enel Green Power
North America
Development LLC
Enel Green Power
North America Inc.
100.00%
100.00%
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Dover
US
100.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Dover
US
100.00
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
EGPNA 2020
HoldCo 25 LLC
EGPNA 2020
HoldCo 26 LLC
EGPNA 2020
HoldCo 27 LLC
EGPNA 2020
HoldCo 28 LLC
EGPNA 2020
HoldCo 29 LLC
EGPNA 2020
HoldCo 3 LLC
EGPNA 2020
HoldCo 30 LLC
EGPNA 2020
HoldCo 4 LLC
EGPNA 2020
HoldCo 5 LLC
EGPNA 2020
HoldCo 6 LLC
EGPNA 2020
HoldCo 7 LLC
EGPNA 2020
HoldCo 8 LLC
EGPNA 2020
HoldCo 9 LLC
EGPNA
Development
Holdings LLC
EGPNA Hydro
Holdings LLC
EGPNA Preferred
Wind Holdings
II LLC
EGPNA Preferred
Wind Holdings
LLC
EGPNA Project
HoldCo 1 LLC
EGPNA Project
HoldCo 2 LLC
EGPNA Project
HoldCo 3 LLC
436
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Dover
US
100.00
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Wilmington
US
-
Wilmington
US
-
EGPNA REP Solar
Holdings LLC
Wilmington
US
-
Equity
EGPNA REP
Holdings LLC
20.00%
20.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
USD
USD
USD
USD
USD
Wilmington
US
-
Wilmington
US
-
Equity
Equity
Puertollano
ES
809,690.40
EUR
Equity
EGPNA Project
HoldCo 4 LLC
EGPNA Project
HoldCo 5 LLC
EGPNA Project
HoldCo 6 LLC
EGPNA Project
HoldCo 7 LLC
EGPNA
Renewable
Energy Partners
LLC
EGPNA REP
Holdings LLC
EGPNA REP
Wind Holdings
LLC
EGPNA Wind
Holdings 1 LLC
Elcogas SA in
liquidation
Elcomex Solar
Energy Srl
Bucharest
RO
4,590,000.00
RON
Line-by-line
100.00%
Elecgas SA
Pego
PT
50,000.00
EUR
Equity
Electra Capital
(RF) (Pty) Ltd
Eléctrica de Jafre
SA
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Barcelona
ES
165,876.00
EUR
Line-by-line
Eléctrica de Lijar
SL
Cádiz
ES
1,081,821.79
EUR
Equity
Barcelona
ES
500,000.00
EUR
Line-by-line
Cádiz
ES
4,960,246.40
EUR
Equity
Eléctrica
del Ebro SA
(Sociedad
Unipersonal)
Electricidad de
Puerto Real SA
Electrometalúrgica
del Ebro SL
Barcelona
ES
2,906,862.00
EUR
-
Enel Green Power
España SL
0.18%
0.12%
437
EGPNA Renewable
Energy Partners
LLC
EGPNA REP Wind
Holdings LLC
Endesa
Generación SA
100.00%
20.00%
100.00%
20.00%
40.99%
33.06%
Enel SpA
4.32%
Enel Green Power
Romania Srl
100.00%
Enel Green Power
SpA
0.00%
Endesa Generación
Portugal SA
50.00%
35.05%
Enel Green Power
RSA (Pty) Ltd
60.00%
60.00%
Endesa Red
SA (Sociedad
Unipersonal)
52.54%
70.11%
Hidroeléctrica de
Catalunya SL
47.46%
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
50.00%
35.05%
100.00%
70.11%
50.00%
35.05%
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Eletropaulo
Metropolitana
Eletricidade de
São Paulo SA
Barueri
BR
3,079,524,934.33
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Elini
Antwerp
BE
76,273,810.00
EUR
-
Slovenské
elektrárne AS
4.00%
1.32%
Livister Guatemala
SA
1.00%
20.60%
Livister Latam SLU
99.00%
San Salvador
SV
2,000.00
USD
Equity
Wilmington
US
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Panama City
PA
300.00
USD
Equity
Ifx/eni - Spc
Panama Inc.
100.00%
20.60%
Emgesa SA ESP
Bogotá
CO
655,222,312,800.00 COP
Line-by-line
Enel Américas SA
48.48%
31.51%
Emintegral Cycle
SLU
Madrid
ES
3,000.00
EUR
Line-by-line
Madrid
ES
18,030,000.00
EUR
Line-by-line
Ceuta
ES
9,335,000.00
EUR
Line-by-line
Ceuta
ES
16,562,250.00
EUR
Line-by-line
San Miguel
PE
7,928,044.00
PEN
Line-by-line
100.00%
Energética
Monzón SAC
0.00%
Enel Green Power
Perú SAC
100.00%
San Miguel
PE
3,368,424.00
PEN
Line-by-line
100.00%
Emerging
Networks El
Salvador SA
de Cv
Emerging
Networks Latam
Inc.
Emerging
Networks
Panama SA
Empresa
Carbonífera del
Sur SA
Empresa de
Alumbrado
Eléctrico
de Ceuta
Distribución
SA (Sociedad
Unipersonal)
Empresa de
Alumbrado
Eléctrico de
Ceuta SA
Empresa de
Generación
Eléctrica Los
Pinos SA
Empresa de
Generación
Eléctrica
Marcona SAC
Enel Green Power
España SL
100.00%
70.11%
Endesa
Generación SA
100.00%
70.11%
Empresa de
Alumbrado
Eléctrico de Ceuta
SA
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
67.56%
96.37%
67.56%
Enel Green Power
Perú SAC
100.00%
Energética
Monzón SAC
Enel Colina SA
0.00%
0.10%
Enel Distribución
Chile SA
99.90%
Distrilec Inversora
SA
56.36%
Enel Argentina SA
43.10%
64.34%
46.88%
Enel Generación
Chile SA
92.65%
56.27%
Enel Green Power
Chile SA
51.00%
33.11%
Empresa de
Transmisión
Chena SA
Santiago de
Chile
CL
250,428,941.00
CLP
Line-by-line
Empresa
Distribuidora Sur
SA - Edesur
Buenos Aires
AR
898,585,028.00
ARS
Line-by-line
CL
175,774,920,733.00 CLP
Line-by-line
CL
12,647,789,439.24 CLP
Line-by-line
Empresa
Eléctrica
Pehuenche SA
Empresa
Nacional de
Geotermia SA in
liquidation
Santiago de
Chile
Santiago de
Chile
438
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Empresa
Propietaria de la
Red SA
Endesa Capital
SA
Endesa
Comercialização
de Energia SA
Endesa Energía
Renovable
SL (Sociedad
Unipersonal)
Endesa Energía
SA
Endesa
Financiación
Filiales SA
Endesa
Generación II SA
Endesa
Generación
Nuclear SA
Endesa
Generación
Portugal SA
Endesa
Generación SA
Endesa
Ingeniería SLU
Endesa Medios
y Sistemas
SL (Sociedad
Unipersonal)
Endesa
Operaciones
y Servicios
Comerciales SL
Endesa Power
Trading Ltd
Endesa Red
SA (Sociedad
Unipersonal)
Panama City
PA
58,500,000.00
USD
-
Enel SpA
11.11%
11.11%
Madrid
ES
60,200.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Porto
PT
250,000.00
EUR
Line-by-line
Endesa Energía SA 100.00%
70.11%
Madrid
ES
100,000.00
EUR
Line-by-line
Endesa Energía SA 100.00%
70.11%
Madrid
ES
14,445,575.90
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Madrid
ES
4,621,003,006.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Seville
ES
63,107.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Seville
ES
60,000.00
EUR
Line-by-line
Lisbon
PT
50,000.00
EUR
Line-by-line
Endesa
Generación SA
100.00%
70.11%
Endesa Energía SA
0.20%
Endesa
Generación SA
99.20%
70.11%
Enel Green Power
España SL
0.60%
Seville
ES
1,940,379,735.35
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Seville
ES
965,305.00
EUR
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
Madrid
ES
89,999,790.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Madrid
ES
10,138,580.00
EUR
Line-by-line
Endesa Energía SA 100.00%
70.11%
London
GB
2.00
GBP
Line-by-line
Endesa SA
100.00%
70.11%
Madrid
ES
719,901,723.26
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Endesa SA
Madrid
ES
1,270,502,540.40
EUR
Line-by-line
70.11%
Endesa SA
0.01%
Madrid
ES
2,874,621.80
EUR
Equity
Enel Iberia Srl
70.10%
Endesa X Servicios
SLU
20.00%
14.02%
Madrid
ES
60,000.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Endesa
Soluciones SL
Endesa X
Servicios SLU
439
Integrated Annual Report 2020
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Alberta
Wind Inc.
Alberta
CA
16,251,021.00
CAD
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Enel Américas
SA
Santiago de
Chile
CL
9,783,875,314.43
USD
Line-by-line
Enel SpA
65.00%
65.00%
Enel and
Shikun & Binui
Innovation
Infralab Ltd
Enel Argentina
SA
Enel Bella Energy
Storage LLC
Enel Brasil
Central SA
Airport City
IL
38,000.00
ILS
Equity
Buenos Aires
AR
2,297,711,908.00
ARS
Line-by-line
Wilmington
US
-
USD
Line-by-line
Enel Global
Infrastructure and
Networks Srl
50.00%
50.00%
Enel Américas SA
99.92%
Enel Generación
Chile SA
0.08%
65.00%
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Niterói
BR
10,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Enel Brasil SA
Niterói
BR
18,978,311,482.06
BRL
Line-by-line
65.00%
Enel Brasil SA
0.75%
Enel Américas SA
99.25%
Enel Chile SA
Santiago de
Chile
CL
3,882,103,470,184.00 CLP
Line-by-line
Enel SpA
64.93%
64.93%
Enel CIEN SA
Niterói
BR
285,044,682.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Enel Colina SA
Santiago de
Chile
CL
82,222,000.00
CLP
Line-by-line
Enel Chile SA
0.00%
Enel Distribución
Chile SA
100.00%
64.34%
Enel Cove Fort
II LLC
Enel Cove Fort
LLC
Wilmington
US
-
Beaver
US
-
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Geothermal
LLC
100.00%
100.00%
Enel Distribución
Chile SA
Santiago de
Chile
CL
230,137,979,938.00 CLP
Line-by-line
Enel Chile SA
99.09%
64.34%
Enel Distribución
Perú SAA
San Miguel
PE
638,563,900.00
PEN
Line-by-line
Enel Perú SAC
83.15%
54.05%
Enel Energia SpA Rome
IT
302,039.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Mexico City
MX
25,000,100.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
100.00%
100.00%
Energía Nueva de
Iguu S de RL de Cv
0.00%
Bucharest
RO
37,004,350.00
RON
Line-by-line
Enel SpA
78.00%
78.00%
Enel Energía SA
de Cv
Enel Energie
Muntenia SA
440
Enel Energy
Australia (Pty) Ltd
Enel Energy
South Africa
Enel Energy
Storage Holdings
LLC (formerly
EGP Energy
Storage Holdings
LLC)
Enel Finance
America LLC
Enel Finance
International NV
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Energie SA
Bucharest
RO
140,000,000.00
RON
Line-by-line
Enel SpA
51.00%
51.00%
Sydney
AU
100.00
AUD
Line-by-line
Wilmington
ZA
100.00
ZAR
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Andover
US
100.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Wilmington
US
200,000,000.00
USD
Line-by-line
Amsterdam
NL
1,478,810,371.00
EUR
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Enel Holding
Finance Srl
75.00%
100.00%
Enel SpA
25.00%
Enel Green Power
Panamá Srl
50.06%
50.06%
Enel Fortuna SA
Panama City
PA
100,000,000.00
USD
Line-by-line
Enel Future
Project 2020 #1
LLC
Enel Future
Project 2020 #10
LLC
Enel Future
Project 2020 #11
LLC
Enel Future
Project 2020 #12
LLC
Enel Future
Project 2020 #13
LLC
Enel Future
Project 2020 #14
LLC
Enel Future
Project 2020 #15
LLC
Enel Future
Project 2020 #16
LLC
Enel Future
Project 2020 #17
LLC
Enel Future
Project 2020 #18
LLC
Enel Future
Project 2020 #19
LLC
Enel Future
Project 2020 #2
LLC
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
441
Integrated Annual Report 2020
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Future
Project 2020 #20
LLC
Enel Future
Project 2020 #3
LLC
Enel Future
Project 2020 #4
LLC
Enel Future
Project 2020 #5
LLC
Enel Future
Project 2020 #6
LLC
Enel Future
Project 2020 #7
LLC
Enel Future
Project 2020 #8
LLC
Enel Future
Project 2020 #9
LLC
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Enel Generación
Chile SA
Santiago de
Chile
CL
552,777,320,871.00 CLP
Line-by-line
Enel Chile SA
93.55%
60.74%
Enel Generación
Costanera SA
Enel Generación
El Chocón SA
Enel Generación
Perú SAA
Enel Generación
Piura SA
Enel Generación
SA de Cv
Enel Geothermal
LLC
Buenos Aires
AR
701,988,378.00
ARS
Line-by-line
Enel Argentina SA
75.68%
49.19%
Buenos Aires
AR
298,584,050.00
ARS
Line-by-line
42.72%
Hidroinvest SA
59.00%
Enel Argentina SA
8.67%
San Miguel
PE
2,498,101,267.20
PEN
Line-by-line
Enel Perú SAC
83.60%
54.34%
San Miguel
PE
73,982,594.00
PEN
Line-by-line
Enel Perú SAC
96.50%
62.72%
Mexico City
MX
7,100,100.00
MXN
Line-by-line
Wilmington
US
-
USD
Line-by-line
Enel Green Power
México S de RL
de Cv
100.00%
100.00%
Energía Nueva de
Iguu S de RL de Cv
0.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Global
Infrastructure
and Networks Srl
Rome
Enel Global
Services Srl
Enel Global
Thermal
Generation Srl
Rome
Rome
IT
IT
IT
442
10,100,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
10,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
11,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Global
Trading SpA
Enel Green
Power Argentina
SA
Enel Green
Power Aroeira
01 SA
Enel Green
Power Aroeira
02 SA
Enel Green
Power Aroeira
03 SA
Enel Green
Power Aroeira
04 SA
Enel Green
Power Aroeira
05 SA
Enel Green
Power Aroeira
06 SA
Enel Green
Power Aroeira
07 SA
Rome
IT
90,885,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Buenos Aires
AR
82,534,295.00
ARS
Line-by-line
Enel Rinnovabili Srl
99.24%
100.00%
Enel Green Power
SpA
0.00%
Energía y Servicios
South America
SpA
Enel Green Power
Brasil Participações
Ltda
0.76%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
443
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Enel Green
Power Aroeira
08 SA
Enel Green
Power Aroeira 09
SA (formerly Enel
Green Power
São Gonçalo
Participações SA)
Enel Green
Power Australia
(Pty) Ltd
Enel Green
Power Australia
Trust
Enel Green
Power Boa Vista
01 Ltda
Enel Green
Power Boa Vista
Eólica SA
Enel Green
Power
Bouldercombe
Holding (Pty) Ltd
Enel Green
Power Brasil
Participações
Ltda
Enel Green
Power
Brejolândia Solar
SA
Enel Green
Power Bulgaria
EAD
Enel Green
Power Bungala
(Pty) Ltd
Enel Green
Power Bungala
Trust
Enel Green
Power Cabeça
de Boi SA
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Sydney
AU
100.00
AUD
Line-by-line
Sydney
AU
100.00
AUD
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Salvador
BR
1,946,507.00
BRL
Line-by-line
100.00%
Niterói
BR
104,890,000.00
BRL
Line-by-line
Sydney
AU
100.00
AUD
Line-by-line
Niterói
BR
8,411,724,678.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
100.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Rinnovabili Srl
100.00%
Energía y Servicios
South America
SpA
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
100.00%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
100.00%
Sofia
BG
35,231,000.00
BGN
AFS
Sydney
AU
100.00
AUD
Line-by-line
Sydney
AU
-
AUD
Line-by-line
Niterói
BR
270,114,539.00
BRL
Line-by-line
Enel Green
Power Cachoeira
Dourada SA
Cachoeira
Dourada
BR
64,339,835.85
BRL
Line-by-line
444
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Brasil SA
99.61%
Enel Green Power
Cachoeira Dourada
SA
0.15%
64.84%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green
Power Calabria
Srl
Enel Green
Power Canada
Inc.
Enel Green
Power Cerrado
Solar SA
Rome
IT
10,000.00
EUR
Line-by-line
Montreal
CA
85,681,857.00
CAD
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
99.90%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Chile SA
0.10%
72.46%
Enel Green Power
Chile SA
27.54%
64.93%
Enel SpA
0.01%
Enel Green
Power Chile SA
Santiago de
Chile
CL
1,197,691,313.37 USD
Line-by-line
Enel Green
Power Cimarron
Bend Wind
Holdings III LLC
Enel Green
Power Cohuna
Holdings (Pty) Ltd
Enel Green
Power Cohuna
Trust
Enel Green
Power Colombia
SAS ESP
Enel Green
Power Costa
Rica SA
Enel Green
Power Cove Fort
Solar LLC
Enel Green
Power Cremzow
GmbH & Co. Kg
Enel Green
Power Cremzow
Verwaltungs
GmbH
Enel Green
Power Cristal
Eólica SA
Enel Green
Power Cumaru
01 SA
Andover
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Sydney
AU
3,419,700.00
AUD
Line-by-line
Sydney
AU
-
AUD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Green Power
Australia Trust
100.00%
100.00%
Bogotá
CO
6,263,213,000.00
COP
Line-by-line
Enel Rinnovabili Srl
100.00%
100.00%
San José
CR
27,500,000.00
USD
Line-by-line
Energía y Servicios
South America
SpA
100.00%
100.00%
Wilmington
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Schenkenberg
DE
1,000.00
EUR
Line-by-line
Schenkenberg
DE
25,000.00
EUR
Line-by-line
Niterói
BR
144,784,899.00
BRL
Line-by-line
Niterói
BR
100,001,000.00
BRL
Line-by-line
Enel Green Power
Germany GmbH
90.00%
90.00%
Enel Green Power
Germany GmbH
90.00%
90.00%
Enel Green Power
Brasil Participações
Ltda
99.17%
Enel Green Power
Cristal Eólica SA
0.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.83%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
445
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Niterói
BR
100,001,000.00
BRL
Line-by-line
100.00%
Niterói
BR
100,001,000.00
BRL
Line-by-line
Niterói
BR
100,001,000.00
BRL
Line-by-line
Niterói
BR
100,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.16%
Niterói
BR
83,709,003.00
BRL
Line-by-line
100.00%
Niterói
BR
549,062,483.00
BRL
Line-by-line
Niterói
BR
93,068,000.00
BRL
Line-by-line
Niterói
BR
31,105,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
0.84%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel Green
Power Cumaru
02 SA
Enel Green
Power Cumaru
03 SA
Enel Green
Power Cumaru
04 SA
Enel Green
Power Cumaru
05 SA
Enel Green
Power Cumaru
Participações SA
Enel Green
Power Cumaru
Solar 01 SA
Enel Green
Power Cumaru
Solar 02 SA
Enel Green
Power
Damascena
Eólica SA
Enel Green
Power Delfina A
Eólica SA
Enel Green
Power Delfina B
Eólica SA
Enel Green
Power Delfina C
Eólica SA
446
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green
Power Delfina D
Eólica SA
Enel Green
Power Delfina E
Eólica SA
Enel Green Power
Desenvolvimento
Ltda
Enel Green
Power
Development Srl
Enel Green
Power Diamond
Vista Wind
Project LLC
Enel Green
Power Dois
Riachos Eólica
SA
Niterói
BR
105,864,000.00
BRL
Line-by-line
Niterói
BR
105,936,000.00
BRL
Line-by-line
Niterói
BR
43,342,090.38
BRL
Line-by-line
Rome
IT
20,000.00
EUR
Line-by-line
Wilmington
US
1.00
USD
Line-by-line
Niterói
BR
130,354,009.00
BRL
Line-by-line
Enel Green
Power Egypt SAE
Cairo
EG
250,000.00
EGP
Line-by-line
El Salvador
SV
22,860.00
USD
Line-by-line
Enel Green
Power El
Salvador SA
de Cv
Enel Green
Power Elkwater
Wind Limited
Partnership
Enel Green
Power
Elmsthorpe
Wind LP
Enel Green
Power Emiliana
Eólica SA
Enel Green
Power Esperança
Eólica SA
Alberta
CA
1,000.00
CAD
Line-by-line
100.00%
Enel Green Power
Canada Inc.
99.00%
Enel Alberta Wind
Inc.
0.10%
Calgary
CA
1,000.00
CAD
Line-by-line
100.00%
Niterói
BR
135,191,530.00
BRL
Line-by-line
Enel Green
Power España SL
Seville
ES
11,152.74
EUR
Line-by-line
Niterói
BR
129,418,174.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.86%
447
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Energía y Servicios
South America
SpA
0.00%
Enel Green Power
SpA
100.00%
100.00%
Diamond Vista
Holdings LLC
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
SpA
99.96%
Energía y Servicios
South America
SpA
Enel Alberta Wind
Inc.
0.04%
1.00%
100.00%
Enel Green Power
Canada Inc.
99.90%
Enel Green Power
Brasil Participações
Ltda
98.81%
Enel Green Power
Desenvolvimento
Ltda
1.19%
100.00%
Enel Green Power
Emiliana Eólica SA
0.00%
Endesa
Generación SA
100.00%
70.11%
Enel Green Power
Brasil Participações
Ltda
99.14%
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
264,141,174.00
BRL
Line-by-line
Niterói
BR
121,001,000.00
BRL
Line-by-line
Niterói
BR
121,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Paris
FR
100,000.00
EUR
Line-by-line
Berlin
DE
25,000.00
EUR
Line-by-line
Sydney
AU
100.00
AUD
Line-by-line
Amsterdam
NL
10,000.00
EUR
Line-by-line
Guatemala City GT
67,208,000.00
GTQ
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Rinnovabili Srl
100.00%
Energía y Servicios
South America
SpA
Enel Alberta Wind
Inc.
0.00%
1.00%
100.00%
-
CA
1,000.00
CAD
Line-by-line
100.00%
Maroussi
GR
8,180,350.00
EUR
Line-by-line
Enel Green Power
Canada Inc.
99.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green
Power Esperança
Solar SA
Enel Green
Power Fazenda
SA
Enel Green
Power Fontes
dos Ventos 2 SA
Enel Green
Power Fontes
dos Ventos 3 SA
Enel Green
Power Fontes II
Participações SA
Enel Green
Power Fontes
Solar SA
Enel Green
Power France
SAS
Enel Green
Power Germany
GmbH
Enel Green
Power Girgarre
Holdings (Pty) Ltd
Enel Green
Power Global
Investment BV
Enel Green
Power
Guatemala SA
Enel Green
Power Hadros
Wind Limited
Partnership
Enel Green
Power Hellas SA
448
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green
Power Hellas
Supply Single
Member SA
Enel Green
Power Hellas
Wind Parks
South Evia Single
Member SA
Enel Green
Power Hilltopper
Wind LLC
(formerly
Hilltopper Wind
Power LLC)
Enel Green
Power Horizonte
Mp Solar SA
Enel Green
Power India
Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green
Power Italia Srl
Enel Green
Power Ituverava
Norte Solar SA
Enel Green
Power Ituverava
Solar SA
Enel Green
Power Ituverava
Sul Solar SA
Enel Green
Power Joana
Eólica SA
Enel Green
Power Kenya
Limited
Maroussi
GR
600,000.00
EUR
Line-by-line
Enel Green Power
Hellas SA
100.00%
100.00%
Maroussi
GR
106,609,641.00
EUR
Line-by-line
Enel Green Power
Hellas SA
100.00%
100.00%
Dover
US
1.00
USD
Line-by-line
Niterói
BR
451,566,053.00
BRL
Line-by-line
New Delhi
IN
100,000,000.00
INR
Line-by-line
Hilltopper Wind
Holdings LLC
100.00%
100.00%
Alba Energia Ltda
0.01%
Enel Green Power
Brasil Participações
Ltda
99.99%
100.00%
Enel Green Power
Development Srl
100.00%
100.00%
Rome
IT
272,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Niterói
BR
204,706,645.67
BRL
Line-by-line
Niterói
BR
219,235,933.00
BRL
Line-by-line
Niterói
BR
407,279,143.00
BRL
Line-by-line
Bondia Energia
Ltda
0.09%
Enel Green Power
Brasil Participações
Ltda
Bondia Energia
Ltda
99.91%
0.00%
Enel Green Power
Brasil Participações
Ltda
Bondia Energia
Ltda
100.00%
0.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
98.89%
100.00%
100.00%
100.00%
Niterói
BR
135,459,530.00
BRL
Line-by-line
100.00%
Nairobi
KE
100,000.00
KES
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
RSA (Pty) Ltd
1.11%
1.00%
Enel Green
Power Korea LLC
Seoul
KR
1,040,000,000.00
KRW
Line-by-line
Enel Green Power
SpA
99.00%
Enel Green Power
SpA
100.00%
100.00%
449
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green
Power Lagoa do
Sol 01 SA
Enel Green
Power Lagoa do
Sol 02 SA
Enel Green
Power Lagoa do
Sol 03 SA
Enel Green
Power Lagoa do
Sol 04 SA
Enel Green
Power Lagoa do
Sol 05 SA
Enel Green
Power Lagoa do
Sol 06 SA
Enel Green
Power Lagoa do
Sol 07 SA
Enel Green
Power Lagoa do
Sol 08 SA
Enel Green
Power Lagoa do
Sol 09 SA
450
Enel Green
Power Lagoa II
Participações SA
Enel Green
Power Lagoa III
Participações SA
Enel Green
Power Lagoa
Participações SA
(formerly Enel
Green Power
Projetos 45 SA)
Enel Green
Power Lily Solar
Holdings LLC
Enel Green
Power Maniçoba
Eólica SA
Enel Green
Power México S
de RL de Cv
Enel Green
Power Modelo I
Eólica SA
Enel Green
Power Modelo II
Eólica SA
Enel Green
Power Morocco
SARLAU
Enel Green
Power Morro do
Chapéu I Eólica
SA
Enel Green
Power Morro do
Chapéu II Eólica
SA
Enel Green
Power Morro do
Chapéu Solar 01
SA (formerly Enel
Green Power
São Gonçalo III
Participações SA)
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Andover
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Niterói
BR
90,722,530.00
BRL
Line-by-line
100.00%
Enel Green Power
Brasil Participações
Ltda
99.20%
Enel Green
Power Metehara
Solar Private
Limited
Company
-
ET
5,600,000.00
ETB
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.80%
Enel Green Power
Solar Metehara
SpA
80.00%
80.00%
Enel Green Power
SpA
100.00%
Mexico City
MX
662,949,966.00 MXN
Line-by-line
100.00%
Niterói
BR
132,642,000.00
BRL
Line-by-line
Niterói
BR
117,142,000.00
BRL
Line-by-line
Casablanca
MA
340,000,000.00
MAD
Line-by-line
Niterói
BR
248,138,287.11
BRL
Line-by-line
Niterói
BR
206,050,114.05
BRL
Line-by-line
Niterói
BR
1,000.00
BRL
Line-by-line
Enel Rinnovabile
SA de Cv
0.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
100.00%
100.00%
99.90%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
451
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Niterói
BR
25,600,100.00
BRL
Line-by-line
Windhoek
NA
10,000.00
NAD
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Wilmington
US
-
Andover
US
-
Andover
US
-
USD
USD
USD
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Panama City
PA
3,001.00
USD
Line-by-line
Niterói
BR
123,350,100.00
BRL
Line-by-line
Rome
IT
10,000.00
EUR
Line-by-line
Niterói
BR
127,424,000.00
BRL
Line-by-line
Enel Rinnovabili Srl
99.97%
Energía y Servicios
South America
SpA
0.03%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
98.79%
Enel Green Power
Desenvolvimento
Ltda
1.21%
100.00%
Enel Green Power
Pau Ferro Eólica SA
0.00%
Enel Green Power
Brasil Participações
Ltda
98.90%
Niterói
BR
189,519,527.57
BRL
Line-by-line
100.00%
San Miguel
PE
973,213,507.00
PEN
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
1.10%
Enel Rinnovabili Srl
100.00%
Energía y Servicios
South America
SpA
Enel Green Power
Brasil Participações
Ltda
0.00%
99.00%
100.00%
Niterói
BR
143,674,900.01
BRL
Line-by-line
100.00%
Rome
IT
1,000,000.00
EUR
Line-by-line
Cairo
EG
15,000,000.00
EGP
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
1.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
Egypt SAE
100.00%
100.00%
Enel Green
Power Mourão
SA
Enel Green
Power Namibia
(Pty) Ltd
Enel Green
Power North
America
Development
LLC
Enel Green
Power North
America Inc.
Enel Green
Power O&M
Solar LLC
Enel Green
Power Panamá
Srl
Enel Green
Power
Paranapanema
SA
Enel Green
Power
Partecipazioni
Speciali Srl
Enel Green
Power Pau Ferro
Eólica SA
Enel Green
Power Pedra do
Gerônimo Eólica
SA
Enel Green
Power Perú SAC
Enel Green
Power Primavera
Eólica SA
Enel Green
Power Puglia Srl
Enel Green
Power RA SAE in
liquidation
452
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green
Power
Rattlesnake
Creek Wind
Project LLC
(formerly
Rattlesnake
Creek Wind
Project LLC)
Enel Green
Power
Roadrunner
Solar Project
Holdings II LLC
Enel Green
Power
Roadrunner
Solar Project
Holdings LLC
Enel Green
Power
Roadrunner
Solar Project II
LLC
Enel Green
Power Romania
Srl
Enel Green
Power RSA (Pty)
Ltd
Enel Green
Power RSA 2 (RF)
(Pty) Ltd
Enel Green
Power Rus
Limited Liability
Company
Enel Green
Power SpA
Enel Green
Power Salto
Apiacás SA
(formerly Enel
Green Power
Damascena
Eólica SA)
Enel Green
Power Sannio
Enel Green
Power São
Abraão Eólica SA
Enel Green
Power São
Gonçalo 07 SA
(formerly Enel
Green Power
Projetos 42 SA)
Enel Green
Power São
Gonçalo 08 SA
(formerly Enel
Green Power
Projetos 43 SA)
Delaware
US
1.00
USD
Line-by-line
Rattlesnake Creek
Holdings LLC
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Dover
US
100.00
USD
Line-by-line
Bucharest
RO
2,430,631,000.00
RON
Line-by-line
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Johannesburg
ZA
120.00
ZAR
AFS
Moscow
RU
60,500,000.00
RUB
Line-by-line
Enel Roadrunner
Solar Project
Holdings II LLC
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Development Srl
100.00%
100.00%
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Partecipazioni
Speciali Srl
100.00%
100.00%
1.00%
100.00%
Enel Green Power
SpA
99.00%
Rome
IT
272,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Niterói
BR
274,420,832.00
BRL
Line-by-line
Rome
IT
750,000.00
EUR
Line-by-line
Niterói
BR
91,300,000.00
BRL
Line-by-line
Teresina
BR
121,600,480.00
BRL
Line-by-line
Teresina
BR
113,710,396.00
BRL
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
453
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Teresina
BR
101,671,353.82
BRL
Line-by-line
Teresina
BR
122,883,216.25
BRL
Line-by-line
Group %
holding
100.00%
100.00%
Held by
% holding
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Teresina
BR
129,375,630.00
BRL
Line-by-line
100.00%
Teresina
BR
100,619,590.00
BRL
Line-by-line
Teresina
BR
110,001,000.00
BRL
Line-by-line
Teresina
BR
110,001,000.00
BRL
Line-by-line
Teresina
BR
110,001,000.00
BRL
Line-by-line
Teresina
BR
110,001,000.00
BRL
Line-by-line
Teresina
BR
110,001,000.00
BRL
Line-by-line
Teresina
BR
129,213,750.53
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green
Power São
Gonçalo 1 SA
(formerly Enel
Green Power
Projetos 10)
Enel Green
Power São
Gonçalo 10 SA
(formerly Enel
Green Power
Projetos 15)
Enel Green
Power São
Gonçalo 11 SA
(formerly Enel
Green Power
Projetos 44 SA)
Enel Green
Power São
Gonçalo 12 SA
(formerly Enel
Green Power
Projetos 22 SA)
Enel Green
Power São
Gonçalo 14
Enel Green
Power São
Gonçalo 15
Enel Green
Power São
Gonçalo 17 SA
Enel Green
Power São
Gonçalo 18 SA
(formerly Enel
Green Power
Ventos de Santa
Ângela 13 SA)
Enel Green
Power São
Gonçalo 19 SA
Enel Green
Power São
Gonçalo 2 SA
(formerly Enel
Green Power
Projetos 11)
454
Enel Green
Power São
Gonçalo 21 SA
(formerly Enel
Green Power
Projetos 16)
Enel Green
Power São
Gonçalo 22 SA
(formerly Enel
Green Power
Projetos 30)
Enel Green
Power São
Gonçalo 3 SA
(formerly Enel
Green Power
Projetos 12)
Enel Green
Power São
Gonçalo 4 SA
(formerly Enel
Green Power
Projetos 13)
Enel Green
Power São
Gonçalo 5 SA
(formerly Enel
Green Power
Projetos 14)
Enel Green
Power São
Gonçalo 6 SA
(formerly Enel
Green Power
Projetos 19 SA)
Enel Green
Power São Judas
Eólica SA
Enel Green Power
São Micael 01
SA (formerly Enel
Green Power São
Gonçalo 9 SA)
Enel Green Power
São Micael 02
SA (formerly Enel
Green Power São
Gonçalo 13 SA)
Enel Green Power
São Micael 03
SA (formerly Enel
Green Power São
Gonçalo 16 SA)
Enel Green Power
São Micael 04
SA (formerly Enel
Green Power São
Gonçalo 20 SA)
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Teresina
BR
139,939,932.22
BRL
Line-by-line
Teresina
BR
138,733,692.21
BRL
Line-by-line
Teresina
BR
216,299,843.02
BRL
Line-by-line
Teresina
BR
123,720,789.57
BRL
Line-by-line
Teresina
BR
197,176,257.11
BRL
Line-by-line
Teresina
BR
199,271,048.28
BRL
Line-by-line
Group %
holding
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Held by
% holding
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Alba Energia Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
99.00%
Niterói
BR
143,674,900.00
BRL
Line-by-line
100.00%
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
1.00%
Alba Energia Ltda
0.10%
Enel Green Power
Brasil Participações
Ltda
99.90%
Alba Energia Ltda
0.10%
Enel Green Power
Brasil Participações
Ltda
99.90%
Alba Energia Ltda
0.10%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
99.90%
99.90%
100.00%
100.00%
100.00%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
455
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
Egypt SAE
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Wilmington
US
100.00
USD
Line-by-line
Cairo
EG
15,000,000.00
EGP
Line-by-line
Singapore
SG
1,975,000.00
SGD
Line-by-line
10,000.00
EUR
Line-by-line
50,000.00
EUR
Line-by-line
Rome
Rome
Rome
IT
IT
IT
50,000.00
EUR
AFS
Enel Green Power
SpA
100.00%
100.00%
Calgary
CA
1,000.00
CAD
Line-by-line
100.00%
Enel Alberta Wind
Inc.
0.10%
Niterói
BR
86,034,360.00
BRL
Line-by-line
100.00%
Enel Green Power
Canada Inc.
99.90%
Enel Green Power
Brasil Participações
Ltda
98.76%
Cairo
EG
15,000,000.00
EGP
Line-by-line
Istanbul
TR
65,654,658.00
TRY
Line-by-line
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
171,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
1.24%
Enel Green Power
Egypt SAE
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
100.00%
100.00%
Enel Green
Power São
Micael 05 SA
Enel Green
Power Services
LLC
Enel Green
Power Shu SAE
in liquidation
Enel Green
Power Singapore
Pte Ltd
Enel Green
Power Solar
Energy Srl
Enel Green
Power Solar
Metehara SpA
Enel Green
Power Solar
Ngonye SpA
(formerly Enel
Green Power
Africa Srl)
Enel Green
Power Swift
Wind LP
Enel Green
Power Tacaicó
Eólica SA
Enel Green
Power Tefnut
SAE in liquidation
Enel Green
Power Turkey
Enerjí Yatirimlari
Anoním Şírketí
Enel Green
Power Ventos
de Santa Ângela
1 SA
Enel Green
Power Ventos de
Santa Ângela 10
SA (formerly Enel
Green Power
Projetos 21)
456
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Enel Green
Power Ventos de
Santa Ângela 11
SA (formerly Enel
Green Power
Projetos 23)
Enel Green
Power Ventos de
Santa Ângela 14
SA (formerly Enel
Green Power
Projetos 24)
Enel Green
Power Ventos de
Santa Ângela 15
SA (formerly Enel
Green Power
Projetos 25)
Enel Green
Power Ventos de
Santa Ângela 17
SA (formerly Enel
Green Power
Projetos 26)
Enel Green
Power Ventos de
Santa Ângela 19
SA (formerly Enel
Green Power
Projetos 27)
Enel Green
Power Ventos
de Santa Ângela
2 SA
Enel Green
Power Ventos de
Santa Ângela 20
SA (formerly Enel
Green Power
Projetos 28)
Enel Green
Power Ventos de
Santa Ângela 21
SA (formerly Enel
Green Power
Projetos 29)
Teresina
BR
185,001,000.00
BRL
Line-by-line
Teresina
BR
231,402,551.00
BRL
Line-by-line
Teresina
BR
182,001,000.00
BRL
Line-by-line
Teresina
BR
198,001,000.00
BRL
Line-by-line
Teresina
BR
126,001,000.00
BRL
Line-by-line
Teresina
BR
249,650,000.00
BRL
Line-by-line
Teresina
BR
126,001,000.00
BRL
Line-by-line
Teresina
BR
113,001,000.00
BRL
Line-by-line
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Group %
holding
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
457
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
106,001,000.00
BRL
Line-by-line
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green
Power Ventos de
Santa Esperança
Energias
Renováveis SA
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Group %
holding
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
185,001,000.00
BRL
Line-by-line
Teresina
BR
105,001,000.00
BRL
Line-by-line
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Green
Power Ventos de
Santa Ângela 3
SA (formerly Enel
Green Power
Projetos 4)
Enel Green
Power Ventos de
Santa Ângela 4
SA (formerly Enel
Green Power
Projetos 6)
Enel Green
Power Ventos de
Santa Ângela 5
SA (formerly Enel
Green Power
Projetos 7)
Enel Green
Power Ventos de
Santa Ângela 6
SA (formerly Enel
Green Power
Projetos 8)
Enel Green
Power Ventos de
Santa Ângela 7
SA (formerly Enel
Green Power
Projetos 9)
Enel Green
Power Ventos de
Santa Ângela 8
SA (formerly Enel
Green Power
Projetos 18)
Enel Green
Power Ventos de
Santa Ângela 9
SA (formerly Enel
Green Power
Projetos 20)
Enel Green
Power Ventos
de Santa Ângela
ACL 12 (formerly
Enel Green
Power Projetos
36 SA)
458
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green
Power Ventos
de Santa Ângela
ACL 13 SA
(formerly Enel
Green Power
Projetos 17 SA)
Enel Green
Power Ventos
de Santa Ângela
ACL 16 SA
(formerly Enel
Green Power
Projetos 38 SA)
Enel Green Power
Ventos de Santa
Ângela ACL 18
SA (formerly Enel
Green Power
Projetos 47 SA)
Enel Green
Power Ventos
de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Ventos de Santa
Esperança 08
SA (formerly Enel
Green Power
Projetos 34 SA)
Enel Green
Power Ventos de
Santa Esperança
1 SA (formerly
Enel Green
Power Fonte dos
Ventos 1 SA)
Enel Green Power
Ventos de Santa
Esperança 13
(formerly Enel
Green Power
Projetos 33 SA)
Enel Green
Power Ventos de
Santa Esperança
15 SA
Enel Green
Power Ventos de
Santa Esperança
16 SA (formerly
Enel Green
Power Projetos
35 SA)
Teresina
BR
105,001,000.00
BRL
Line-by-line
100.00%
Teresina
BR
105,001,000.00
BRL
Line-by-line
Teresina
BR
105,001,000.00
BRL
Line-by-line
Niterói
BR
7,315,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Niterói
BR
110,200,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
147,000,000.00
BRL
Line-by-line
Niterói
BR
202,100,000.00
BRL
Line-by-line
Niterói
BR
183,700,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
459
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
100.00%
Niterói
BR
183,700,000.00
BRL
Line-by-line
100.00%
Niterói
BR
202,100,000.00
BRL
Line-by-line
Niterói
BR
202,100,000.00
BRL
Line-by-line
Salvador
BR
110,200,000.00
BRL
Line-by-line
Niterói
BR
202,100,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Ventos de Santa
Esperança 26 SA
(formerly Enel
Green Power
Projetos 41 SA)
0.00%
100.00%
0.00%
Enel Green Power
Brasil Participações
Ltda
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
4,727,414.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green
Power Ventos de
Santa Esperança
17 SA (formerly
Enel Green
Power Projetos
31 SA)
Enel Green
Power Ventos de
Santa Esperança
21 SA (formerly
Enel Green
Power Projetos
37 SA)
Enel Green
Power Ventos de
Santa Esperança
22 SA (formerly
Enel Green
Power Projetos
39 SA)
Enel Green
Power Ventos de
Santa Esperança
25 SA (formerly
Enel Green
Power Projetos
40 SA)
Enel Green
Power Ventos de
Santa Esperança
26 SA (formerly
Enel Green
Power Projetos
41 SA)
Enel Green
Power Ventos de
Santa Esperança
3 SA
Enel Green
Power Ventos de
Santa Esperança
7 SA (formerly
Enel Green
Power Lagedo
Alto SA)
Enel Green
Power Ventos de
Santa Esperança
Energias
Renováveis SA
460
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Enel Green
Power Ventos de
Santa Esperança
Participações SA
(formerly Enel
Green Power
Cumaru 06 SA)
Enel Green
Power Ventos de
Santo Orestes
1 SA
Enel Green
Power Ventos de
Santo Orestes
2 SA
Enel Green
Power Ventos de
São Roque 01 SA
Enel Green
Power Ventos
de São Roque
02 SA
Enel Green
Power Ventos de
São Roque 03 SA
Enel Green
Power Ventos
de São Roque
04 SA
Enel Green
Power Ventos
de São Roque
05 SA
Enel Green
Power Ventos
de São Roque
06 SA
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Teresina
BR
138,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
461
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green
Power Ventos de
São Roque 07 SA
Enel Green
Power Ventos
de São Roque
08 SA
Enel Green
Power Ventos de
São Roque 11 SA
Enel Green
Power Ventos de
São Roque 13 SA
Enel Green
Power Ventos de
São Roque 16 SA
Enel Green
Power Ventos de
São Roque 17 SA
Enel Green
Power Ventos de
São Roque 18 SA
Enel Green
Power Ventos de
São Roque 19 SA
Enel Green
Power Ventos de
São Roque 22 SA
462
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
Brasil Participações
Ltda
99.90%
Enel Green
Power Ventos de
São Roque 26 SA
Enel Green
Power Ventos de
São Roque 29 SA
Enel Green
Power Villoresi
Srl
Enel Green
Power Volta
Grande SA
(formerly Enel
Green Power
Projetos 1 SA)
Enel Green
Power Zambia
Limited
Enel Green
Power Zeus II -
Delfina 8 SA
Enel Green
Power Zeus Sul
1 Ltda
Enel Green
Power Zeus Sul
2 SA
Enel Holding
Finance Srl
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.10%
99.90%
Teresina
BR
1,000.00
BRL
Line-by-line
100.00%
Rome
IT
1,200,000.00
EUR
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
Italia Srl
51.00%
51.00%
Niterói
BR
565,756,528.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Lusaka
ZM
15,000.00
ZMW
Line-by-line
100.00%
Enel Green Power
Development Srl
1.00%
Niterói
BR
129,639,980.00
BRL
Line-by-line
Salvador
BR
6,986,993.00
BRL
Line-by-line
Enel Green Power
RSA (Pty) Ltd
99.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
100.00%
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
0.00%
99.90%
Niterói
BR
1,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Rome
IT
10,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Iberia Srl
Madrid
ES
336,142,500.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Innovation
Hubs Srl
Enel Insurance
NV
Enel Investment
Holding BV
Rome
IT
1,100,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Amsterdam
NL
60,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Amsterdam
NL
1,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Italia SpA
Rome
IT
100,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
463
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Kansas
Development
Holdings LLC
Andover
US
-
Enel Kansas LLC Wilmington
US
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Logistics Srl Rome
IT
1,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Minnesota
Holdings LLC
Minneapolis
US
-
Enel Nevkan Inc. Wilmington
US
-
Andover
US
50.00
Enel North
America Inc.
Enel Operations
Canada Ltd
USD
USD
USD
Line-by-line
Line-by-line
EGP Geronimo
Holding Company
Inc.
Enel Green Power
North America Inc.
100.00%
100.00%
100.00%
100.00%
Line-by-line
Enel SpA
100.00%
100.00%
Alberta
CA
1,000.00
CAD
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Enel Perú SAC
San Miguel
PE
5,361,789,105.00
PEN
Line-by-line
Enel Américas SA
100.00%
65.00%
Enel Produzione
SpA
Rome
IT
1,800,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Rinnovabile
SA de Cv
Enel Rinnovabili
Srl
Enel Roadrunner
Solar Project
Holdings II LLC
Enel Roadrunner
Solar Project
Holdings LLC
Mexico City
MX
100.00
MXN
Line-by-line
100.00%
Enel Green Power
Global Investment
BV
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
Rome
IT
10,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Enel Green Power
Roadrunner Solar
Project Holdings
II LLC
Enel Green Power
Roadrunner Solar
Project Holdings
LLC
100.00%
100.00%
100.00%
100.00%
Enel Romania SA Buftea
RO
200,000.00
RON
Line-by-line
Enel SpA
100.00%
100.00%
Enel Rus Wind
Azov LLC
Enel Rus Wind
Kola LLC
Moscow
RU
200,000,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Murmansk City
RU
10,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Enel Rus Wind
Stavropolye LLC
Region of
Stavropol
RU
350,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Enel Russia PJSC Yekaterinburg
RU
35,371,898,370.00 RUB
Line-by-line
Enel SpA
56.43%
56.43%
464
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Salt Wells
LLC
Enel Saudi Arabia
Limited
Enel Servicii
Comune SA
Fallon
US
-
USD
Line-by-line
Al Khobar
SA
1,000,000.00
SAR
Line-by-line
Enel Geothermal
LLC
100.00%
100.00%
e-distribuzione
SpA
60.00%
60.00%
E-Distribuţie Banat
SA
50.00%
Bucharest
RO
33,000,000.00
RON
Line-by-line
51.00%
E-Distribuţie
Dobrogea SA
50.00%
Enel Green Power
Panamá Srl
99.01%
Energía y Servicios
South America
SpA
0.99%
100.00%
Enel Solar Srl
Panama City
PA
10,100.00
USD
Line-by-line
Enel Sole Srl
Rome
IT
4,600,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Soluções
Energéticas Ltda
Niterói
BR
42,863,000.00
BRL
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
100.00%
Enel Soluções
Energéticas Ltda
0.00%
Enel Stillwater
LLC
Enel Surprise
Valley LLC
Enel Tecnologia
de Redes SA
Wilmington
US
-
Wilmington
US
-
USD
USD
Line-by-line
Enel Geothermal
LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Niterói
BR
10,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Enel Texkan Inc. Wilmington
US
100.00
USD
Line-by-line
Chi Power Inc.
100.00%
100.00%
Enel Trade
Energy Srl
Enel Trade Serbia
doo
Enel Trading
Argentina Srl
Enel Trading
Brasil SA
Enel Trading
North America
LLC
Bucharest
RO
2,437,050.00
RON
Line-by-line
Enel Romania SA
100.00%
100.00%
Belgrade
RS
300,000.00
EUR
Line-by-line
Enel Global Trading
SpA
100.00%
100.00%
Enel Américas SA
55.00%
Buenos Aires
AR
14,011,100.00
ARS
Line-by-line
65.00%
Enel Argentina SA
45.00%
Niterói
BR
1,000,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
65.00%
Wilmington
US
10,000,000.00
USD
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Enel Uruguay SA Montevideo
UY
20,000.00
UYU
Line-by-line
Enel Brasil SA
100.00%
65.00%
465
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Vayu
(Project 2) Private
Limited
Enel Wind
Project (Amberi)
Private Limited
Gurugram
IN
45,000,000.00
INR
Line-by-line
New Delhi
IN
5,000,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
100.00%
100.00%
100.00%
100.00%
CL
18,000,000.00
USD
Equity
Enel X Chile SpA
20.00%
12.99%
Enel X AMPCI
Ebus Chile SpA
Santiago de
Chile
Enel X AMPCI L1
Holdings SpA
Santiago de
Chile
Enel X AMPCI L1
SpA
Santiago de
Chile
CL
18,000,000.00
USD
Equity
CL
18,000,000.00
USD
Equity
Enel X AMPCI Ebus
Chile SpA
100.00%
12.99%
Enel X AMPCI L1
Holdings SpA
100.00%
12.99%
Enel X International
Srl
100.00%
100.00%
Enel X Finance
Partner LLC
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Energy Response
Holdings (Pty) Ltd
Enel X Canada
Holding Inc.
100.00%
100.00%
0.01%
100.00%
Enel X Canada Ltd
99.99%
Enel X Ireland
Limited
0.00%
EnerNOC UK II
Limited
Central Geradora
Termelétrica
Fortaleza SA
100.00%
0.00%
65.00%
Enel Brasil SA
100.00%
Buenos Aires
AR
127,800,000.00
ARS
Line-by-line
Boston
US
-
USD
Line-by-line
Melbourne
AU
21,224,578.00
AUD
Line-by-line
Melbourne
AU
9,880.00
AUD
Line-by-line
Oakville
CA
10,000.00
CAD
Line-by-line
Enel X Argentina
SAU
Enel X Asputeck
Ave. Project LLC
Enel X Australia
Holding (Pty) Ltd
Enel X Australia
(Pty) Ltd
Enel X Battery
Storage Limited
Partnership
Enel X Brasil
Gerenciamento
de Energia Ltda
Sorocaba
BR
5,538,403.00
BRL
Line-by-line
100.00%
Enel X Brasil SA
Niterói
BR
187,725,892.00
BRL
Line-by-line
Enel X Canada
Holding Inc.
Enel X Canada
Ltd
Oakville
CA
1,000.00
CAD
Line-by-line
Enel X Canada Ltd
100.00%
100.00%
Mississauga
CA
1,000.00
CAD
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Enel X Chile SpA
Santiago de
Chile
CL
3,800,000,000.00
CLP
Line-by-line
Enel Chile SA
100.00%
64.93%
Boston
US
-
USD
Line-by-line
Enel X MA Holdings
LLC
100.00%
100.00%
Bogotá
CO
5,000,000,000.00
COP
Line-by-line
Codensa SA ESP
100.00%
31.40%
Enel X College
Ave. Project LLC
Enel X Colombia
SAS
466
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Energy
(Shanghai) Co.
Ltd
Enel X Federal
LLC
Enel X Finance
Partner LLC
Enel X Financial
Services Srl
Enel X France
SAS
Enel X Hayden
Rowe St. Project
LLC
Shanghai
CN
3,500,000.00
USD
Line-by-line
Boston
US
5,000.00
USD
Line-by-line
Boston
US
100.00
USD
Line-by-line
Enel X International
Srl
100.00%
100.00%
Enel X North
America Inc.
Enel X North
America Inc.
100.00%
100.00%
100.00%
100.00%
Rome
IT
1,000,000.00
EUR
Line-by-line
Enel X Srl
100.00%
100.00%
Paris
FR
2,901,000.00
EUR
Line-by-line
Boston
US
100.00
USD
Line-by-line
Enel X International
Srl
100.00%
100.00%
Enel X MA Holdings
LLC
100.00%
100.00%
Enel X
International Srl
Rome
Enel X Ireland
Limited
Dublin
Enel X Italia Srl
Rome
IT
IE
IT
100,000.00
EUR
Line-by-line
Enel X Srl
100.00%
100.00%
10,841.00
EUR
Line-by-line
Enel X International
Srl
100.00%
100.00%
200,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel X Japan K.K. Tokyo
JP
255,000,000.00
JPY
Line-by-line
Seoul
KR
10,000,000.00
KRW
Line-by-line
Seoul
KR
1,200,000,000.00
KRW
Line-by-line
Boston
US
100.00
USD
Line-by-line
Boston
US
-
USD
Line-by-line
Bucharest
RO
6,937,800.00
RON
Line-by-line
Enel X International
Srl
100.00%
100.00%
Enel X Korea
Limited
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Enel X Finance
Partner LLC
Enel X Finance
Partner LLC
100.00%
100.00%
100.00%
100.00%
Enel X International
Srl
99.86%
100.00%
Enel X Srl
0.14%
Rome
IT
100,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Boston
US
100.00
USD
Line-by-line
Wellington
NZ
313,606.00
AUD
Line-by-line
Boston
US
1,000.00
USD
Line-by-line
Porsgrunn
NO
1,000,000.00
NOK
Line-by-line
Enel X MA Holdings
LLC
100.00%
100.00%
Energy Response
Holdings (Pty) Ltd
100.00%
100.00%
Enel North America
Inc.
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
467
Enel X KOMIPO
Limited
Enel X Korea
Limited
Enel X MA
Holdings LLC
Enel X MA PV
Portfolio 1 LLC
Enel X Mobility
Romania Srl
Enel X Mobility
Srl
Enel X Morrissey
Blvd. Project LLC
Enel X New
Zealand Limited
Enel X North
America Inc.
Enel X Norway
AS
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Perú SAC San Miguel
PE
12,005,000.00
PEN
Line-by-line
Enel Perú SAC
100.00%
65.00%
Enel X Polska Sp.
Zo.o.
Enel X Romania
Srl
Warsaw
PL
10,000,000.00
PLN
Line-by-line
Bucharest
RO
234,450.00
RON
Line-by-line
Enel X Rus LLC
Moscow
RU
8,000,000.00
RUB
Line-by-line
Enel X Ireland
Limited
100.00%
100.00%
Enel X International
Srl
99.00%
100.00%
Enel X Srl
1.00%
Enel X International
Srl
99.00%
99.00%
Enel X Srl
Rome
IT
1,050,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel X Services
India Private
Limited
Enel X Singapore
Pte Ltd
Enel X Sweden
AB
Enel X Taiwan
Co. Ltd
Enel X UK
Limited
Mumbai City
IN
45,000.00
INR
Line-by-line
100.00%
Enel X International
Srl
100.00%
Singapore
SG
1,212,000.00
SGD
Line-by-line
Stockholm
SE
50,000.00
SEK
Line-by-line
Taipei City
TW
65,000,000.00
TWD
Line-by-line
London
GB
32,626.00
GBP
Line-by-line
Enel X North
America Inc.
0.00%
Enel X International
Srl
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Enel X Ireland
Limited
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Enel.si Srl
Rome
IT
5,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enelco SA
Maroussi
GR
60,108.80
EUR
Line-by-line
Enel Investment
Holding BV
75.00%
75.00%
Enelpower
Contractor and
Development
Saudi Arabia Ltd
Enelpower do
Brasil Ltda
Riyadh
SA
5,000,000.00
SAR
Line-by-line
Enelpower SpA
51.00%
51.00%
Niterói
BR
5,068,000.00
BRL
Line-by-line
100.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
Energía y Servicios
South America
SpA
0.00%
Enelpower SpA
Milan
IT
2,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
San Miguel
PE
6,463,000.00
PEN
Line-by-line
Ceuta
ES
65,000.00
EUR
Line-by-line
Enel Green Power
Perú SAC
100.00%
Energía y Servicios
South America
SpA
Empresa de
Alumbrado
Eléctrico de Ceuta
SA
100.00%
0.00%
100.00%
67.56%
Energética
Monzón SAC
Energía
Ceuta XXI
Comercializadora
de Referencia SA
468
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Energía Eólica
Alto del Llano
SLU
Madrid
ES
3,300.00
EUR
Line-by-line
Energia Eolica Srl -
EN.EO. Srl
Rome
IT
4,840,000.00
EUR
Line-by-line
Energía Global
de México
(Enermex) SA
de Cv
Energía Global
Operaciones Srl
Energía Limpia
de Amistad SA
de Cv
Energía Limpia
de Palo Alto SA
de Cv
Energía Limpia
de Puerto
Libertad S de RL
de Cv
Mexico City
MX
50,000.00
MXN
Line-by-line
San José
CR
10,000.00
CRC
Line-by-line
Mexico City
MX
33,452,769.00
MXN
Equity
Mexico City
MX
673,583,489.00
MXN
Equity
Mexico City
MX
2,953,980.00
MXN
Line-by-line
Energía Marina
SpA
Santiago de
Chile
Energía Neta Sa
Caseta Llucmajor
SL (Sociedad
Unipersonal)
Palma de
Mallorca
CL
2,404,240,000.00
CLP
Equity
ES
9,000.00
EUR
Line-by-line
Mexico City
MX
51,879,307.00
MXN
Line-by-line
Energía Nueva
de Iguu S de RL
de Cv
Energía Nueva
Energía Limpia
México S de RL
de Cv
Energía XXI
Comercializadora
de Referencia SL
Energía y
Servicios South
America SpA
Santiago de
Chile
Energías
Alternativas del
Sur SL
Las Palmas de
Gran Canaria
Mexico City
MX
5,339,650.00
MXN
Line-by-line
100.00%
Enel Green Power
SpA
99.96%
Madrid
ES
2,000,000.00
EUR
Line-by-line
Endesa Energía SA 100.00%
70.11%
CL
144,290,951.73
USD
Line-by-line
Enel Rinnovabili Srl
100.00%
100.00%
ES
546,919.10
EUR
Line-by-line
Energías de
Aragón I SL
Energías de
Graus SL
Zaragoza
ES
3,200,000.00
EUR
Line-by-line
Barcelona
ES
1,298,160.00
EUR
Line-by-line
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
SpA
99.00%
99.00%
Enel Green Power
Costa Rica SA
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Enel Green Power
México S de RL
de Cv
100.00%
100.00%
60.80%
20.00%
60.80%
20.00%
0.01%
100.00%
Enel Rinnovabile
SA de Cv
99.99%
Enel Green Power
Chile SA
25.00%
16.23%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
México S de RL
de Cv
99.90%
Energía Nueva
Energía Limpia
México S de RL
de Cv
Enel Green Power
Guatemala SA
0.01%
0.04%
99.91%
Enel Green Power
España SL
54.95%
38.52%
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
Enel Green Power
España SL
66.67%
46.74%
469
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Energías
Especiales de
Careón SA
Santiago de
Compostela
ES
270,450.00
EUR
Line-by-line
Energías
Especiales de
Peña Armada SA
Energías
Especiales del
Alto Ulla SA
Energías
Especiales del
Bierzo SA
Energías
Renovables La
Mata SA de Cv
Energie
Electrique de
Tahaddart SA
Madrid
ES
963,300.00
EUR
Line-by-line
Madrid
ES
19,594,860.00
EUR
Line-by-line
Torre del Bierzo ES
1,635,000.00
EUR
Equity
Mexico City
MX
656,615,400.00
MXN
Line-by-line
Marrakech
MA
637,840,000.00
MAD
Equity
Energotel AS
Bratislava
SK
2,191,200.00
EUR
Equity
Energy Hydro
Piave Srl in
liquidation
Energy Response
Holdings (Pty) Ltd
Belluno
IT
800,000.00
EUR
Line-by-line
Melbourne
AU
630,451.00
AUD
Line-by-line
Enel Green Power
España SL
77.00%
53.98%
Enel Green Power
España SL
80.00%
56.09%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
50.00%
35.05%
99.00%
100.00%
Energía Nueva de
Iguu S de RL de Cv
1.00%
Endesa
Generación SA
Slovenské
elektrárne AS
32.00%
22.43%
20.00%
6.60%
Enel Produzione
SpA
51.00%
51.00%
Enel X Australia
Holding (Pty) Ltd
100.00%
100.00%
Enerlive Srl
Rome
IT
6,520,000.00
EUR
Line-by-line
Maicor Wind Srl
100.00%
100.00%
EnerNOC GmbH Munich
DE
25,000.00
EUR
Line-by-line
EnerNOC Ireland
Limited
Dublin
IE
10,535.00
EUR
Line-by-line
Enel X North
America Inc.
Enel X Ireland
Limited
100.00%
100.00%
100.00%
100.00%
London
GB
21,000.00
GBP
Line-by-line
Enel X UK Limited
100.00%
100.00%
EnerNOC UK II
Limited
Entech (China)
Information
Technology Co.
Ltd
Entech Utility
Service Bureau
Inc.
Envatios
Promoción I SLU
Envatios
Promoción II SLU
Shenzhen
CN
140,000.00
USD
Equity
Lutherville
US
1,500.00
USD
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Envatios
Promoción III SLU
Madrid
ES
3,000.00
EUR
Line-by-line
Seville
ES
3,000.00
EUR
Line-by-line
Envatios
Promoción XX
SLU
470
EnerNOC UK II
Limited
50.00%
50.00%
Enel X North
America Inc.
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Eólica del Cierzo
SLU
Eólica del
Principado SAU
Eólica Valle del
Ebro SA
Eólica
Zopiloapan SA
de Cv
Zaragoza
ES
225,000.00
EUR
Line-by-line
Gijón - Asturias
ES
60,000.00
EUR
Line-by-line
Zaragoza
ES
3,561,342.50
EUR
Line-by-line
Mexico City
MX
1,877,201.54
MXN
Line-by-line
ES
240,400.00
EUR
Line-by-line
ES
216,360.00
EUR
Line-by-line
Eólicas de
Agaete SL
Las Palmas de
Gran Canaria
Eólicas de
Fuencaliente SA
Las Palmas de
Gran Canaria
Eólicas de
Fuerteventura
AIE
Puerto del
Rosario
ES
-
EUR
Eólicas de la
Patagonia SA
Buenos Aires
AR
480,930.00
ARS
Eólicas de
Lanzarote SL
Las Palmas de
Gran Canaria
ES
1,758,000.00
EUR
Eólicas de
Tenerife AIE
Santa Cruz de
Tenerife
ES
420,708.40
EUR
Equity
Equity
Equity
Equity
Eólicas de
Tirajana SL
Las Palmas de
Gran Canaria
ES
3,000.00
EUR
Line-by-line
Epresa Energía
SA
Cádiz
ES
2,500,000.00
EUR
Equity
European Energy
Exchange AG
Leipzig
DE
40,050,000.00
EUR
-
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
España SL
50.50%
35.40%
56.98%
96.48%
39.50%
80.00%
56.09%
Enel Green Power
España SL
55.00%
38.56%
Enel Green Power
España SL
40.00%
28.04%
Enel Green Power
España SL
50.00%
35.05%
Enel Green Power
España SL
40.00%
28.04%
Enel Green Power
España SL
50.00%
35.05%
Enel Green Power
España SL
60.00%
42.06%
Endesa Red
SA (Sociedad
Unipersonal)
50.00%
35.05%
Enel Global Trading
SpA
2.38%
2.38%
Expedition Solar
Project LLC
Andover
US
1.00
Andover
US
1.00
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Explorer Wind
Project LLC
Explotaciones
Eólicas de
Escucha SA
Explotaciones
Eólicas El Puerto
SA
Explotaciones
Eólicas Santo
Domingo de
Luna SA
Explotaciones
Eólicas Saso
Plano SA
Zaragoza
ES
3,505,000.00
EUR
Line-by-line
Teruel
ES
3,230,000.00
EUR
Line-by-line
Zaragoza
ES
100,000.00
EUR
Line-by-line
Zaragoza
ES
5,488,500.00
EUR
Line-by-line
Enel Green Power
España SL
70.00%
49.07%
Enel Green Power
España SL
73.60%
51.60%
Enel Green Power
España SL
51.00%
35.75%
Enel Green Power
España SL
65.00%
45.57%
471
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Explotaciones
Eólicas Sierra
Costera SA
Explotaciones
Eólicas Sierra La
Virgen SA
Fence Post Solar
Project LLC
Fenner Wind
Holdings LLC
Zaragoza
ES
8,046,800.00
EUR
Line-by-line
Zaragoza
ES
4,200,000.00
EUR
Line-by-line
Enel Green Power
España SL
90.00%
63.10%
Enel Green Power
España SL
90.00%
63.10%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Dover
US
100.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Finsec Lab Ltd
Tel Aviv
Flagpay Srl
Milan
IL
IT
100.00
ILS
Equity
Enel X Srl
30.00%
30.00%
10,000.00
EUR
Line-by-line
Paytipper SpA
100.00%
55.00%
Flat Rock Wind
Project LLC
Flat Top Solar
Project LLC
Andover
US
1.00
Andover
US
-
Flint Rock Solar
Project LLC
Andover
US
-
Minneapolis
US
-
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Florence Hills
LLC
Fótons de
Santo Anchieta
Energias
Renováveis SA
Fotovoltaica
Yunclillos SLU
Fourmile Wind
Project LLC
Freedom Energy
Storage LLC
Front Marítim del
Besòs SL
Furatena Solar
1 SLU
Galaxy Wind
Project LLC
Garob Wind
Farm (RF) (Pty)
Ltd
Niterói
BR
577,000.00
BRL
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Andover
US
-
USD
Line-by-line
Barcelona
ES
9,000.00
EUR
Equity
Seville
ES
3,000.00
EUR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Johannesburg
ZA
100.00
ZAR
AFS
Gas y
Electricidad
Generación SAU
Palma de
Mallorca
ES
213,775,700.00
EUR
Line-by-line
472
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
Tradewind Energy
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Endesa
Generación SA
100.00%
100.00%
100.00%
100.00%
61.37%
43.02%
Enel Green Power
España SL
100.00%
70.11%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00%
60.00%
Endesa
Generación SA
100.00%
70.11%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Gauley Hydro
LLC
Gauley River
Management
LLC
Wilmington
US
-
Willison
US
1.00
USD
USD
Equity
GRPP Holdings LLC 100.00%
50.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Genability Inc.
San Francisco
US
6,010,074.72
USD
Equity
Generadora de
Occidente Ltda
Generadora
Eólica Alto
Pacora Srl
Generadora
Montecristo SA
Generadora
Solar Austral SA
Generadora
Solar Tolé Srl
Guatemala City GT
16,261,697.33
GTQ
Line-by-line
Panama City
PA
10,100.00
USD
Line-by-line
Guatemala City GT
3,820,000.00
GTQ
Line-by-line
Chiriquí
PA
10,000.00
USD
Line-by-line
Panama City
PA
10,100.00
USD
Line-by-line
Enel X North
America Inc.
50.00%
50.00%
Enel Green Power
Guatemala SA
1.00%
Enel Rinnovabili Srl
99.00%
Enel Green Power
Panamá Srl
99.01%
Energía y Servicios
South America
SpA
Enel Green Power
Guatemala SA
0.99%
0.00%
Enel Rinnovabili Srl
100.00%
100.00%
100.00%
100.00%
Enel Green Power
Panamá Srl
100.00%
100.00%
Enel Green Power
Panamá Srl
99.01%
Energía y Servicios
South America
SpA
0.99%
100.00%
Geotérmica del
Norte SA
Santiago de
Chile
CL
326,577,419,702.00 CLP
Line-by-line
Enel Green Power
Chile SA
84.59%
54.92%
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Sydney
AU
-
AUD
Line-by-line
Gibson Bay Wind
Farm (RF) (Pty)
Ltd
Girgarre Solar
Farm (Pty) Ltd
Global
Commodities
Holdings Limited
London
GB
4,042,375.00
GBP
Globyte SA
San José
CR
891,000.00
CRC
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Girgarre Holdings
(Pty) Ltd
60.00%
60.00%
100.00%
100.00%
Enel Global Trading
SpA
4.68%
4.68%
Enel Green Power
Costa Rica SA
9.09%
9.09%
-
-
Gnl Chile SA
Santiago de
Chile
CL
3,026,160.00
USD
Equity
Enel Generación
Chile SA
33.33%
20.25%
Goodwell Wind
Project LLC
Wilmington
US
-
USD
Equity
Gorona del
Viento El Hierro
SA
Santa Cruz de
Tenerife
ES
30,936,736.00
EUR
Equity
Origin Goodwell
Holdings LLC
Unión Eléctrica
de Canarias
Generación SAU
100.00%
20.00%
23.21%
16.27%
Grand Prairie
Solar Project LLC
Andover
US
-
GRPP Holdings
LLC
Andover
US
2.00
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Equity
EGPNA REP
Holdings LLC
50.00%
50.00%
473
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Guadarranque
Solar 4 SLU
Gusty Hill Wind
Project LLC
GV Energie
Rigenerabili
ITAL-RO Srl
Seville
ES
3,006.00
EUR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Endesa
Generación II SA
100.00%
70.11%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Romania Srl
100.00%
Bucharest
RO
1,145,400.00
RON
Line-by-line
100.00%
Hadley Ridge
LLC
Minneapolis
US
-
Hamilton County
Solar Project LLC
Andover
US
1.00
Hansborough
Valley Solar
Project LLC
Andover
US
-
Harvest Ridge
Solar Project LLC
Andover
US
-
Harvest Ridge
Wind Project LLC
Andover
US
1.00
Hastings Solar
LLC
Wilmington
US
-
USD
USD
USD
USD
USD
USD
Enel Green Power
SpA
0.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Hatch Data Inc.
San Francisco
US
10,000.00
USD
-
Enel X North
America Inc.
5.00%
5.00%
Wilmington
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Heartland Farms
Wind Project LLC
Hidroeléctrica de
Catalunya SL
Barcelona
ES
126,210.00
EUR
Line-by-line
Hidroeléctrica de
Ourol SL
Lugo
ES
1,608,200.00
EUR
Equity
Hidroelectricidad
del Pacífico S de
RL de Cv
Colima
MX
30,890,736.00
MXN
Line-by-line
Hidroflamicell SL Barcelona
ES
78,120.00
EUR
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
Hidroeléctrica de
Catalunya SL
100.00%
70.11%
30.00%
21.03%
99.99%
99.99%
75.00%
52.58%
Enel Américas SA
41.94%
Hidroinvest SA
Buenos Aires
AR
55,312,093.00
ARS
Line-by-line
62.85%
High Chaparral
Solar Project LLC
Andover
US
-
Andover
US
1.00
USD
USD
Enel Argentina SA
54.76%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Wilmington
US
100.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
High Lonesome
Storage LLC
High Lonesome
Wind Holdings
LLC
474
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
High Lonesome
Wind Power LLC
High Noon Solar
Project LLC
High Street
Corporation (Pty)
Ltd
Hilltopper Wind
Holdings LLC
Boston
US
100.00
USD
Line-by-line
High Lonesome
Wind Holdings LLC
100.00%
100.00%
Andover
US
-
Melbourne
AU
2.00
USD
AUD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Energy Response
Holdings (Pty) Ltd
100.00%
100.00%
Wilmington
US
1,000.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Hispano
Generación de
Energía Solar SL
Jerez de los
Caballeros
ES
3,500.00
EUR
Line-by-line
Enel Green Power
España SL
51.00%
35.75%
Hope Creek LLC Crestview
US
-
Hope Ridge
Wind Project LLC
Andover
US
1.00
USD
USD
Hubject GmbH
Berlin
DE
65,943.00
EUR
Willison
US
5,000.00
USD
Hydro Energies
Corporation
Idalia Park Solar
Project LLC
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
-
AFS
Enel X International
Srl
12.50%
12.50%
Enel Green Power
North America Inc.
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Idrosicilia SpA
Milan
IT
22,520,000.00
EUR
Equity
Enel SpA
1.00%
1.00%
i-EM SAT Ltd
Didcot,
Oxfordshire
GB
100.00
GBP
Equity
i-EM Srl
100.00%
30.00%
i-EM Srl
Turin
IT
28,571.43
EUR
Equity
Enel Italia SpA
30.00%
30.00%
Ifx Networks
Argentina Srl
Buenos Aires
AR
2,260,551.00
ARS
Equity
Ifx Networks
Chile SA
Santiago de
Chile
CL
6,235,913,725.00 CLP
Equity
Ifx Networks
Colombia SAS
Bogotá
CO
15,734,959,000.00 COP
Equity
Ifx/eni - Spc V Inc.
99.85%
Minority Stock
Holding Corp.
0.15%
Ifx/eni - Spc IV Inc.
41.20%
Servicios de
Internet Eni Chile
Ltda
Ifx Networks
Panama SA
58.80%
58.33%
Ifx/eni - Spc III Inc.
41.67%
20.60%
20.60%
20.60%
Ifx Networks LLC Wilmington
US
80,848,653.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Ifx Networks Ltd
Tortola
VG
50,001.00
USD
Equity
Ifx Networks LLC
100.00%
20.60%
Ifx Networks
Panama SA
Panama City
PA
21,000.00
USD
Equity
Ifx/eni - Spc
Panama Inc.
100.00%
20.60%
475
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Ifx/eni - Spc III
Inc.
Ifx/eni - Spc IV
Inc.
Ifx/eni - Spc
Panama Inc.
Ifx/eni - Spc V
Inc.
Inertia Solar
Project LLC
Inertia Wind
Project LLC
Inkolan
Información y
Coordinación de
obras AIE
Tortola
VG
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Tortola
VG
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Tortola
VG
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Tortola
VG
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Andover
US
-
Andover
US
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Bilbao
ES
84,141.68
EUR
Equity
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
14.29%
10.02%
International
Multimedia
University Srl in
bankruptcy
-
IT
24,000.00
EUR
-
Enel Italia SpA
13.04%
13.04%
Bogotá
CO
5,000,000.00
COP
Line-by-line
Codensa SA ESP
100.00%
31.40%
Buenos Aires
AR
828,941,660.00
ARS
Line-by-line
Enel Américas SA
57.14%
37.14%
Niterói
BR
45,474,475.77
BRL
Line-by-line
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Jack River LLC
Minneapolis
US
-
USD
Line-by-line
Jade Energia
Ltda
Conceição do
Jacuípe
BR
4,107,097.00
BRL
Line-by-line
Jaguito Solar 10
MW SA
Panama City
PA
10,000.00
USD
Line-by-line
Jessica Mills LLC Minneapolis
US
-
USD
Line-by-line
JuiceNet GmbH
Berlin
DE
25,000.00
EUR
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Enel Green Power
Panamá Srl
100.00%
100.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Enel X International
Srl
100.00%
100.00%
JuiceNet Ltd
London
GB
1.00
Julia Hills LLC
Minneapolis
US
-
GBP
USD
Line-by-line
Enel X International
Srl
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
476
Inversora
Codensa SAS
Inversora Dock
Sud SA
Isamu Ikeda
Energia SA
Italgest Energy
(Pty) Ltd
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Juna Renewable
Energy Private
Limited
Gurugram
IN
100,000.00
INR
Line-by-line
Kelley’s Falls LLC Wilmington
US
-
USD
AFS
Khaba
Renewable
Energy Private
Limited
Khidrat
Renewable
Energy Private
Limited
Kings River
Hydro Company
Inc.
Kingston Energy
Storage LLC
Gurugram
IN
100,000.00
INR
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Wilmington
US
100.00
USD
Line-by-line
Wilmington
US
-
USD
Line-by-line
Kino Contractor
SA de Cv
Mexico City
MX
100.00
MXN
Line-by-line
Kino Facilities
Manager SA
de Cv
Kongul Enerjí
Sanayí Ve Tícaret
Anoním Şírketí
Mexico City
MX
100.00
MXN
Line-by-line
Istanbul
TR
125,000,000.00
TRY
Line-by-line
Koporie WPS
LLC
Region of
Leningrad
RU
21,000,000.00
RUB
Line-by-line
Korea Line
Corporation
Kromschroeder
SA
Seoul
KR
122,132,520,000.00 KRW
-
Barcelona
ES
627,126.00
EUR
Equity
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
North America Inc.
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
North America Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de
RL de Cv
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de
RL de Cv
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
Rus Limited
Liability Company
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.00%
100.00%
1.00%
99.00%
1.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel Global Trading
SpA
0.25%
0.25%
Endesa Medios
y Sistemas
SL (Sociedad
Unipersonal)
29.26%
20.51%
La Cabaña SpA
Santiago de
Chile
CL
1,481,845,000.00
CLP
Line-by-line
Enel Green Power
Chile SA
100.00%
64.93%
Lake Emily Solar
LLC
Wilmington
US
-
Lake Pulaski
Solar LLC
Wilmington
US
-
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
477
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Dover
US
100.00
USD
Line-by-line
Sundance Wind
Project LLC
100.00%
100.00%
Land Run Wind
Project LLC
Lava Solar
Project LLC
Andover
US
1.00
Lawrence Creek
Solar LLC
Minneapolis
US
-
Lemonade Solar
Project LLC
Andover
US
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Tradewind Energy
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Tripoli
LY
1,350,000.00
EUR
-
Enelpower SpA
0.33%
0.33%
Andover
US
1.00
Lily Solar LLC
Andover
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Line-by-line
Enel Green Power
Lily Solar Holdings
LLC
Enel Kansas
Development
Holdings LLC
100.00%
100.00%
100.00%
100.00%
Line-by-line
EGPNA Preferred
Wind Holdings LLC
100.00%
100.00%
Line-by-line
Lindahl Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Little Elk Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Boston
US
100.00
USD
AFS
Andover
US
-
USD
Line-by-line
Guatemala City GT
742,000.00
GTQ
Equity
Tegucigalpa
HN
25,000.00
HNL
Equity
Enel Green Power
North America Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
100.00%
100.00%
Ufinet Guatemala
SA
0.01%
Ufinet Latam SLU
99.99%
Livister Guatemala
SA
0.40%
Livister Latam SLU
99.60%
20.60%
20.60%
Madrid
ES
3,000.00
EUR
Equity
Ufinet Latam SLU
100.00%
20.60%
Liberty Energy
Storage LLC
Libyan Italian
Joint Company
- Azienda Libico-
Italiana (A.L.I)
Lily Solar
Holdings LLC
Lindahl Wind
Holdings LLC
Lindahl Wind
Project LLC
Little Elk Wind
Holdings LLC
Little Elk Wind
Project LLC
Little Salt Solar
Project LLC
Littleville Power
Company Inc.
Litus Energy
Storage LLC
Livister
Guatemala SA
Livister Honduras
SA
Livister Latam
SLU
478
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Llano Sánchez
Solar Power One
Srl
Panama City
PA
10,020.00
USD
Line-by-line
Held by
% holding
Enel Green Power
Panamá Srl
99.80%
Energía y Servicios
South America
SpA
0.20%
Group %
holding
100.00%
Lone Pine Wind
Inc.
Alberta
CA
-
Lone Pine Wind
Project LP
Alberta
CA
-
Lower Valley LLC Wilmington
US
-
Andover
US
-
CAD
CAD
USD
USD
-
Equity
Enel Green Power
Canada Inc.
10.00%
10.00%
Enel Green Power
Canada Inc.
10.00%
10.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Luminary
Highlands Solar
Project LLC
Luz de Angra
Energia SA
Maicor Wind Srl
Rome
Bergamo
-
-
Malaspina
Energy Scarl in
liquidation
Maple Canada
Solutions
Holdings Ltd
Maple Energy
Solutions LP
Marengo Solar
LLC
Niterói
BR
4,062,085.00
BRL
Line-by-line
Enel X Brasil SA
51.00%
33.15%
IT
IT
20,850,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
100,000.00
EUR
Line-by-line
Yousave SpA
100.00%
100.00%
CA
-
CA
-
Wilmington
US
1.00
CAD
CAD
USD
Equity
Enel X Canada Ltd
20.00%
20.00%
Equity
Enel X Canada
Holding Inc.
20.00%
20.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Marte Srl
Rome
IT
6,100,000.00
EUR
Line-by-line
Marudhar Wind
Energy Private
Limited
Más Energía S de
RL de Cv
Mason Mountain
Wind Project LLC
Matrigenix (Pty)
Ltd
Gurugram
IN
100,000.00
INR
Line-by-line
Mexico City
MX
61,872,926.00
MXN
Line-by-line
Wilmington
US
-
USD
Line-by-line
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Enel Green Power
Italia Srl
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
México S de RL
de Cv
100.00%
100.00%
100.00%
100.00%
99.99%
100.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
0.01%
Padoma Wind
Power LLC
100.00%
100.00%
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
MC Solar I LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
479
Integrated Annual Report 2020 McBride Wind
Project LLC
Medidas
Ambientales SL
Merit Wind
Project LLC
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Wilmington
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Burgos
ES
60,100.00
EUR
Equity
Nuclenor SA
50.00%
17.53%
Andover
US
1.00
Metro Wind LLC Minneapolis
US
-
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Mexicana de
Hidroelectricidad
Mexhidro S de RL
de Cv
Mexico City
MX
181,728,901.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
99.99%
99.99%
Mibgas SA
Madrid
ES
3,000,000.00
EUR
-
Endesa SA
1.35%
0.95%
Midelt Wind
Farm SA
Casablanca
MA
145,000,000.00
MAD
Equity
Minicentrales
Acequia Cinco
Villas AIE
Ejea de los
Caballeros
ES
3,346,993.04
EUR
Zaragoza
ES
1,202,000.00
EUR
-
-
Zaragoza
ES
1,820,000.00
EUR
Equity
Nareva Enel Green
Power Morocco SA
70.00%
35.00%
Enel Green Power
España SL
5.39%
3.78%
Enel Green Power
España SL
15.00%
10.52%
Enel Green Power
España SL
36.50%
25.59%
Tortola
VG
100.00
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
Johannesburg
ZA
100.00
ZAR
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Burgos
ES
1,800,000.00
EUR
-
Nuclenor SA
0.22%
0.08%
Minicentrales
del Canal de las
Bárdenas AIE
Minicentrales del
Canal Imperial-
Gallur SL
Minority Stock
Holding Corp.
Mira Energy (Pty)
Ltd
Miranda
Plataforma
Logística SA
Montrose Solar
LLC
Wilmington
US
-
Moonbeam Solar
Project LLC
Andover
US
1.00
Mountrail Wind
Project LLC
Andover
US
1.00
Mucho Viento
Wind Project LLC
Andover
US
1.00
Muskegon
County Solar
Project LLC
Andover
US
1.00
Muskegon Green
Wind Project LLC
Andover
US
1.00
Mustang Run
Wind Project LLC
Andover
US
1.00
480
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Andover
US
1.00
USD
Line-by-line
Casablanca
MA
98,750,000.00
MAD
Equity
Madrid
ES
3,000.00
EUR
Line-by-line
Barueri
BR
29,800,000.00
BRL
-
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Morocco SARLAU
50.00%
50.00%
Enel Green Power
España SL
Ufinet Brasil
Telecomunicação
Ltda
100.00%
70.11%
60.00%
12.36%
Wilmington
US
-
Line-by-line
Enel Nevkan Inc.
100.00%
100.00%
Newbury Hydro
Company LLC
Andover
US
-
USD
USD
Lusaka
ZM
10.00
ZMW
Napolean Wind
Project LLC
Nareva Enel
Green Power
Morocco SA
Navalvillar Solar
SL
Netell
Telecomunicações
SA
Nevkan
Renewables LLC
Ngonye Power
Company
Limited
Nojoli Wind Farm
(RF) (Pty) Ltd
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
AFS
AFS
Enel Green Power
North America Inc.
Enel Green Power
Solar Ngonye
SpA (formerly
Enel Green Power
Africa Srl)
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
80.00%
80.00%
60.00%
60.00%
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi West LLC
100.00%
100.00%
North Canal
Waterworks
Boston
US
-
North English
Wind Project LLC
Andover
US
1.00
North Rock Wind
LLC
Andover
US
1.00
Northland Wind
Project LLC
Andover
US
1.00
Andover
US
-
Andover
US
-
Wilmington
US
-
Northstar Wind
Project LLC
Northumberland
Solar Project I
LLC
Northwest Hydro
LLC
Notch Butte
Hydro Company
Inc.
Wilmington
US
100.00
USD
Line-by-line
Nuclenor SA
Burgos
ES
102,000,000.00
EUR
Equity
Enel Green Power
North America Inc.
100.00%
100.00%
Endesa
Generación SA
50.00%
35.05%
Nuove Energie
Srl
Porto
Empedocle
IT
5,204,028.73
EUR
Line-by-line
Enel Global Trading
SpA
100.00%
100.00%
Nxuba Wind
Farm (RF) (Pty)
Ltd
Johannesburg
ZA
1,000.00
ZAR
AFS
Enel Green Power
RSA 2 (RF) (Pty) Ltd
51.00%
51.00%
481
Integrated Annual Report 2020 Olivum PV Farm
01 SLU
Omip - Operador
do Mercado
Ibérico (Portugal)
Sgps SA
Open Range
Wind Project LLC
Operador del
Mercado Ibérico
de Energía - Polo
Español SA
Orchid Acres
Solar Project LLC
Origin Wind
Energy LLC
Osage Wind
Holdings LLC
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Nyc Storage
(353 Chester)
Spe LLC
Wilmington
US
1.00
USD
Line-by-line
Ochrana A
Bezpecnost Se
SRO
Kalná Nad
Hronom
SK
33,193.92
EUR
Equity
Madrid
ES
3,000.00
EUR
Line-by-line
Enel X North
America Inc.
Slovenské
elektrárne AS
100.00%
100.00%
100.00%
33.00%
Enel Green Power
España SL
100.00%
70.11%
Lisbon
PT
2,610,000.00
EUR
-
Endesa SA
5.00%
3.51%
OpEn Fiber SpA Milan
IT
250,000,000.00
EUR
AFS
Enel SpA
50.00%
50.00%
Andover
US
1.00
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Madrid
ES
1,999,998.00
EUR
-
Endesa SA
5.00%
3.51%
Andover
US
-
Origin Goodwell
Holdings LLC
Wilmington
US
-
Wilmington
US
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Equity
EGPNA Wind
Holdings 1 LLC
100.00%
20.00%
Origin Goodwell
Holdings LLC
100.00%
20.00%
Wilmington
US
100.00
USD
Line-by-line
Enel Kansas LLC
50.00%
50.00%
Osage Wind LLC Wilmington
US
-
USD
Line-by-line
Ottauquechee
Hydro Company
Inc.
Ovacik Eolíko
Enerjí Elektrík
Üretím Ve Tícaret
Anoním Şírketí
Wilmington
US
100.00
USD
AFS
Istanbul
TR
11,250,000.00
TRY
Line-by-line
Oxagesa AIE
Alcañiz
ES
6,010.00
EUR
Equity
Johannesburg
ZA
1,000.00
ZAR
AFS
Osage Wind
Holdings LLC
100.00%
50.00%
Enel Green Power
North America Inc.
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
España SL
100.00%
100.00%
100.00%
100.00%
33.33%
23.37%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00%
60.00%
Oyster Bay Wind
Farm (RF) (Pty)
Ltd
Padoma Wind
Power LLC
Elida
US
-
Palo Alto Farms
Wind Project LLC
Dallas
US
-
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Madrid
ES
3,000.00
EUR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Enel Green Power
España SL
100.00%
70.11%
Tradewind Energy
Inc.
100.00%
100.00%
Pampinus PV
Farm 01 SLU
Paradise Creek
Wind Project LLC
482
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Paravento SL
Lugo
ES
3,006.00
EUR
Line-by-line
Enel Green Power
España SL
90.00%
63.10%
Parc Eòlic La
Tossa - La Mola
d’en Pascual SL
Parc Eòlic Los
Aligars SL
Parco Eolico
Monti Sicani Srl
Madrid
ES
1,183,100.00
EUR
Madrid
ES
1,313,100.00
EUR
Equity
Equity
Enel Green Power
España SL
30.00%
21.03%
Enel Green Power
España SL
30.00%
21.03%
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
Enel Rinnovabile
SA de Cv
Hidroelectricidad
del Pacífico S de
RL de Cv
Enel Rinnovabile
SA de Cv
1.00%
99.00%
1.00%
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
100.00%
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
México S de RL
de Cv
0.50%
25.50%
Enel Rinnovabile
SA de Cv
25.00%
Enel Green Power
España SL
80.00%
56.09%
Enel Green Power
España SL
75.00%
Parque Eólico de
Barbanza SA
0.00%
Enel Green Power
España SL
50.17%
35.17%
Enel Green Power
España SL
82.00%
57.49%
Enel Green Power
España SL
65.67%
Parque Amistad II
SA de Cv
Mexico City
MX
1,413,533,480.00
MXN
Line-by-line
Parque Amistad
III SA de Cv
Mexico City
MX
931,692,540.00
MXN
Line-by-line
Parque Amistad
IV SA de Cv
Parque Eólico
A Capelada
SL (Sociedad
Unipersonal)
Parque Eólico
BR-1 SAPI de Cv
Mexico City
MX
1,489,508,400.00 MXN
Line-by-line
La Coruña
ES
5,857,704.33
EUR
Line-by-line
Mexico City
MX
-
MXN
Line-by-line
Parque Eólico
Carretera de
Arinaga SA
Las Palmas de
Gran Canaria
ES
1,603,000.00
EUR
Line-by-line
Parque Eólico de
Barbanza SA
La Coruña
ES
3,606,072.60
EUR
Line-by-line
52.58%
Parque Eólico de
Belmonte SA
Madrid
ES
120,400.00
EUR
Line-by-line
Parque Eólico de
San Andrés SA
La Coruña
ES
552,920.00
EUR
Line-by-line
Parque Eólico de
Santa Lucía SA
Las Palmas de
Gran Canaria
Parque Eólico
Finca de Mogán
SA
Santa Cruz de
Tenerife
ES
901,500.00
EUR
Line-by-line
46.50%
ES
3,810,340.00
EUR
Line-by-line
Parque Eólico de
Santa Lucía SA
1.00%
Enel Green Power
España SL
90.00%
63.10%
483
Integrated Annual Report 2020 Parque Eólico
Montes de Las
Navas SA
Parque Eólico
Muniesa SL
Parque Eólico
Palmas dos
Ventos Ltda
Parque Eólico
Pampa SA
Parque Eólico
Punta de Teno
SA
Parque Eólico
Sierra del
Madero SA
Parque Eólico
Tico SLU
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Madrid
ES
6,540,000.00
EUR
Line-by-line
Madrid
ES
3,006.00
EUR
Line-by-line
Enel Green Power
España SL
75.50%
52.93%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
Brasil Participações
Ltda
100.00%
Salvador
BR
4,096,626.00
BRL
Line-by-line
100.00%
Buenos Aires
AR
10,637,000.00
ARS
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Green Power
SpA
100.00%
100.00%
Santa Cruz de
Tenerife
ES
528,880.00
EUR
Line-by-line
Enel Green Power
España SL
52.00%
36.46%
Madrid
ES
7,193,970.00
EUR
Line-by-line
Zaragoza
ES
234,900.00
EUR
Line-by-line
Parque Salitrillos
SA de Cv
Mexico City
MX
100.00
MXN
Equity
Parque Solar
Cauchari IV SA
San Salvador de
Jujuy
AR
500,000.00
ARS
Line-by-line
Parque Solar Don
José SA de Cv
Parque Solar
Villanueva Tres
SA de Cv
Mexico City
MX
100.00
MXN
Equity
Mexico City
MX
306,024,631.13
MXN
Equity
Enel Green Power
España SL
58.00%
40.66%
Enel Green Power
España SL
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
100.00%
70.11%
60.80%
20.00%
Enel Green Power
Argentina SA
95.00%
Energía y Servicios
South America
SpA
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
100.00%
5.00%
60.80%
20.00%
60.80%
20.00%
Enel Green Power
Chile SA
60.91%
Parque Talinay
Oriente SA
Santiago de
Chile
CL
66,092,165,170.93 CLP
Line-by-line
74.12%
Enel Green Power
SpA
34.56%
Pastis - Centro
Nazionale per
la ricerca e lo
sviluppo dei
materiali SCPA in
liquidation
Paynesville Solar
LLC
Brindisi
IT
2,065,000.00
EUR
-
Enel Italia SpA
1.14%
1.14%
Wilmington
US
-
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
40,000.00
EUR
Line-by-line
Paytipper SpA
100.00%
55.00%
3,000,000.00
EUR
Line-by-line
Enel X Srl
55.00%
55.00%
Paytipper
Network Srl
Cascina
Paytipper SpA
Milan
IT
IT
484
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
PDP
Technologies Ltd
Ashkelon
IL
1,129,252.00
ILS
-
Pegop - Energia
Eléctrica SA
Pego
PT
50,000.00
EUR
Equity
35.05%
PH Chucás SA
San José
CR
100,000.00
CRC
Line-by-line
PH Don Pedro SA San José
CR
100,001.00
CRC
Line-by-line
PH Guácimo SA
San José
CR
50,000.00
CRC
Line-by-line
PH Río Volcán SA San José
CR
100,001.00
CRC
Line-by-line
Pincher Creek LP Alberta
CA
-
CAD
Line-by-line
100.00%
Wilmington
US
-
USD
Line-by-line
Seville
ES
1,198,532.32
EUR
Line-by-line
Enel Green Power
Canada Inc.
1.00%
Aurora Distributed
Solar LLC
100.00%
74.13%
Enel Green Power
España SL
56.12%
39.34%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Pine Island
Distributed Solar
LLC
Planta Eólica
Europea SA
Point Rider Solar
Project LLC
Pomerado
Energy Storage
LLC
PowerCrop
Macchiareddu
Srl
Bologna
PowerCrop Russi
Srl
Bologna
Bologna
PowerCrop
SpA (formerly
PowerCrop Srl)
Prairie Rose
Transmission
LLC
Prairie Rose
Wind LLC
Primavera
Energia SA
Wilmington
US
1.00
USD
Line-by-line
IT
IT
IT
100,000.00
EUR
100,000.00
EUR
4,000,000.00
EUR
Minneapolis
US
-
Albany
US
-
USD
USD
Equity
Equity
Equity
Equity
Equity
Niterói
BR
36,965,444.64
BRL
Line-by-line
Enel Global
Infrastructure and
Networks Srl
5.72%
5.72%
Endesa Generación
Portugal SA
0.02%
Endesa
Generación SA
49.98%
Enel Green Power
Costa Rica SA
40.31%
Energía y Servicios
South America
SpA
24.69%
65.00%
Enel Green Power
Costa Rica SA
33.44%
33.44%
Enel Green Power
Costa Rica SA
65.00%
65.00%
Enel Green Power
Costa Rica SA
34.32%
34.32%
Enel Alberta Wind
Inc.
99.00%
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
PowerCrop
SpA (formerly
PowerCrop Srl)
PowerCrop
SpA (formerly
PowerCrop Srl)
100.00%
100.00%
100.00%
50.00%
100.00%
50.00%
Enel Green Power
Italia Srl
50.00%
50.00%
Prairie Rose Wind
LLC
100.00%
20.00%
EGPNA REP Wind
Holdings LLC
100.00%
20.00%
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
485
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Productora de
Energías SA
Productora
Eléctrica
Urgelense SA
Progreso Solar
20 MW SA
Promociones
Energéticas del
Bierzo SL
Proveedora de
Electricidad de
Occidente S de
RL de Cv
Barcelona
ES
60,101.22
EUR
Equity
Enel Green Power
España SL
30.00%
21.03%
Lérida
ES
8,400,000.00
EUR
-
Endesa SA
8.43%
5.91%
Panama City
PA
10,000.00
USD
Line-by-line
Madrid
ES
12,020.00
EUR
Line-by-line
Mexico City
MX
89,708,835.00
MXN
Line-by-line
Enel Green Power
Panamá Srl
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
México S de RL
de Cv
99.99%
99.99%
Proyecto Almería
Mediterráneo SA
Madrid
ES
601,000.00
EUR
Equity
Endesa SA
45.00%
31.55%
Alicante
ES
27,000.00
EUR
Equity
Enel Green Power
España SL
33.33%
23.37%
Enel Green Power
Partecipazioni
Speciali Srl
99.90%
San Miguel
PE
1,000.00
PEN
Line-by-line
100.00%
Hyderabad
IN
100,000.00
INR
Line-by-line
Jakarta
ID
10,002,250.00
USD
Line-by-line
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Andover
US
-
USD
Line-by-line
Quatiara Energia
SA
Niterói
BR
13,766,118.96
BRL
Line-by-line
Queens Energy
Storage LLC
Andover
US
-
USD
Line-by-line
Energía y Servicios
South America
SpA
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
SpA
0.10%
100.00%
100.00%
90.00%
90.00%
Enel Green Power
RSA (Pty) Ltd
52.70%
52.70%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
100.00%
100.00%
Proyectos
Universitarios
de Energías
Renovables SL
Proyectos y
Soluciones
Renovables SAC
PSG Energy
Private Limited
PT Enel Green
Power Optima
Way Ratai
Pulida Energy
(RF) (Pty) Ltd
Pumpkin Vine
Wind Project LLC
Ranchland Solar
Project LLC
Andover
US
1.00
Ranchland Wind
Holdings LLC
Andover
US
-
Ranchland Wind
Project II LLC
Andover
US
1.00
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Ranchland Wind
Holdings LLC
100.00%
100.00%
486
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Ranchland Wind
Project LLC
Andover
US
-
Ranchland Wind
Storage LLC
Rattlesnake
Creek Holdings
LLC
Rausch Creek
Wind Project LLC
Andover
US
-
Delaware
US
1.00
Andover
US
1.00
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
RC Wind Srl
Milan
IT
10,000.00
EUR
-
Reaktortest SRO Trnava
SK
66,389.00
EUR
Equity
Enel Green Power
Italia Srl
0.50%
0.50%
Slovenské
elektrárne AS
49.00%
16.17%
Red
Centroamericana
de
Telecomunicaciones
SA
Red Dirt Wind
Holdings I LLC
Red Dirt Wind
Holdings LLC
Red Dirt Wind
Project LLC
Red Fox Wind
Project LLC
Redes y
Telecomunicaciones
S de RL de Cv
Reftinskaya
GRES LLC
Renovables de
Guatemala SA
Renovables La
Pedrera SLU
Renovables
Mediavilla SLU
Panama City
PA
2,700,000.00
USD
-
Enel SpA
11.11%
11.11%
Dover
US
100.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Wilmington
US
-
Dover
US
1.00
Wilmington
US
1.00
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Red Dirt Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
San Pedro Sula
HN
82,370,000.00
HNL
-
Livister Honduras
SA
80.00%
16.48%
Pgt Reftinskii
RU
10,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Guatemala City GT
1,924,465,600.00 GTQ
Line-by-line
Zaragoza
ES
3,000.00
EUR
Line-by-line
Zaragoza
ES
3,000.00
EUR
Line-by-line
Enel Green Power
Guatemala SA
0.00%
100.00%
Enel Rinnovabili Srl
100.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Rihue SpA
Santiago de
Chile
CL
986,821.00
USD
Line-by-line
Enel Green Power
Chile SA
100.00%
64.93%
Riverbend Farms
Wind Project LLC
Andover
US
1.00
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Enel Alberta Wind
Inc.
99.00%
Riverview LP
Alberta
CA
-
CAD
Line-by-line
100.00%
Enel Green Power
Canada Inc.
1.00%
487
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Roadrunner
Solar Project LLC
Roadrunner
Storage LLC
Rochelle Solar
LLC
Andover
US
100.00
USD
Line-by-line
Enel Roadrunner
Solar Project
Holdings LLC
100.00%
100.00%
Andover
US
-
Coral Springs
US
1.00
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rock Creek Wind
Holdings I LLC
Dover
Rock Creek Wind
Holdings II LLC
Dover
US
100.00
USD
Line-by-line
US
100.00
USD
Line-by-line
Rock Creek Wind
Holdings LLC
Wilmington
US
-
Rock Creek Wind
Project LLC
Clayton
US
1.00
Rockhaven Wind
Project LLC
Andover
US
1.00
Rocky Caney
Holdings LLC
Rocky Caney
Wind LLC
Oklahoma City
US
1.00
Albany
US
-
Rocky Ridge
Wind Project LLC
Oklahoma City
US
-
USD
USD
USD
USD
USD
USD
Enel Green Power
North America Inc.
100.00%
100.00%
Rock Creek Wind
Holdings LLC
EGPNA Preferred
Wind Holdings II
LLC
Rock Creek Wind
Holdings LLC
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Line-by-line
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Equity
Enel Kansas LLC
20.00%
20.00%
Equity
Enel Kansas LLC
20.00%
20.00%
Equity
Rocky Caney Wind
LLC
100.00%
20.00%
Rodnikovskaya
WPS
Rolling Farms
Wind Project LLC
Rusenergosbyt
LLC
Moscow
RU
6,010,000.00
RUB
Line-by-line
Andover
US
1.00
USD
Line-by-line
Enel Green Power
Rus Limited
Liability Company
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
Moscow
RU
18,000,000.00
RUB
Equity
Enel SpA
49.50%
49.50%
Rusenergosbyt
Siberia LLC
Krasnoyarsk
City
RU
4,600,000.00
RUB
Equity
Rusenergosbyt
LLC
50.00%
24.75%
Rustler Wind
Project LLC
Ruthton Ridge
LLC
Andover
US
1.00
Minneapolis
US
-
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Saburoy SA
Montevideo
UY
100,000.00
UYU
Equity
Ifx Networks LLC
100.00%
20.60%
Sacme SA
Buenos Aires
AR
12,000.00
ARS
Equity
Saddle House
Solar Project LLC
Andover
US
-
USD
Line-by-line
Empresa
Distribuidora Sur
SA - Edesur
Tradewind Energy
Inc.
50.00%
23.44%
100.00%
100.00%
488
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Salmon Falls
Hydro LLC
Wilmington
US
-
Salt Springs
Wind Project LLC
Andover
US
-
USD
USD
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Salto de San
Rafael SL
Seville
ES
462,185.98
EUR
Equity
Enel Green Power
España SL
50.00%
35.05%
Samantha Solar
SpA
Santiago de
Chile
CL
88,334,025.00
CLP
Line-by-line
Enel Green Power
Chile SA
100.00%
64.93%
San Francisco de
Borja SA
San Juan Mesa
Wind Project II
LLC
Sanosari Energy
Private Limited
Santo Rostro
Cogeneración
SA
Saugus River
Energy Storage
LLC
Se Služby
Inžinierskych
Stavieb SRO
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
Servicio de
Operación y
Mantenimiento
para Energías
Renovables S de
RL de Cv
Zaragoza
ES
60,000.00
EUR
Line-by-line
Wilmington
US
-
USD
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Seville
ES
207,340.00
EUR
Equity
Dover
US
100.00
USD
Line-by-line
Kalná Nad
Hronom
SK
200,000.00
EUR
Equity
Madrid
ES
3,010.00
EUR
Line-by-line
Mexico City
MX
3,000.00
MXN
Line-by-line
Enel Green Power
España SL
66.67%
46.74%
Padoma Wind
Power LLC
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
Enel Green Power
España SL
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Slovenské
elektrárne AS
100.00%
100.00%
100.00%
100.00%
45.00%
31.55%
100.00%
100.00%
100.00%
33.00%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
Guatemala SA
0.01%
Energía Nueva
Energía Limpia
México S de RL
de Cv
99.99%
Ifx Networks Ltd
0.10%
100.00%
Servicios de
Internet Eni Chile
Ltda
Santiago de
Chile
Servizio Elettrico
Nazionale SpA
Rome
Setyl Srl
Bergamo
CL
2,768,688,228.00
CLP
Equity
20.60%
Ifx/eni - Spc IV Inc.
99.90%
IT
IT
10,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
100,000.00
EUR
Equity
Yousave SpA
27.50%
27.50%
Seven Cowboy
Wind Project LLC
Andover
US
1.00
Seven Cowboys
Solar Project LLC
Andover
US
-
Shiawassee
Wind Project LLC
Wilmington
US
1.00
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
489
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Shield Energy
Storage Project
LLC
Shikhar Surya
(One) Private
Limited
SIET - Società
Informazioni
Esperienze
Termoidrauliche
SpA
Sistema Eléctrico
de Conexión
Valcaire SL
Sistemas
Energéticos
Mañón Ortigueira
SA
Skyview Wind
Project LLC
Slovak Power
Holding BV
Slovenské
elektrárne -
Energetické
Služby SRO
Slovenské
elektrárne AS
Wilmington
US
-
USD
Line-by-line
Gurugram
IN
100,000.00
INR
Line-by-line
Piacenza
IT
697,820.00
EUR
Equity
Madrid
ES
175,200.00
EUR
Equity
La Coruña
ES
2,007,750.00
EUR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Amsterdam
NL
25,010,000.00
EUR
Equity
Bratislava
SK
4,505,000.00
EUR
Equity
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
100.00%
100.00%
100.00%
100.00%
Enel Innovation
Hubs Srl
41.55%
41.55%
Enel Green Power
España SL
28.13%
19.72%
Enel Green Power
España SL
96.00%
67.30%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Produzione
SpA
50.00%
50.00%
Slovenské
elektrárne AS
100.00%
33.00%
Bratislava
SK
1,269,295,724.66
EUR
Equity
Slovak Power
Holding BV
66.00%
33.00%
Slovenské
elektrárne Česká
Republika SRO
Moravská
Ostrava
CZ
295,819.00
CZK
Equity
Slovenské
elektrárne AS
100.00%
33.00%
Smoky Hill
Holdings II LLC
Wilmington
US
-
Smoky Hills Wind
Farm LLC
Topeka
US
-
Smoky Hills Wind
Project II LLC
Lenexa
US
-
Hermleigh
US
-
Snyder Wind
Farm LLC
Socibe Energia
SA
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
EGPNA Project
HoldCo 1 LLC
100.00%
100.00%
Line-by-line
EGPNA Project
HoldCo 1 LLC
100.00%
100.00%
Line-by-line
Texkan Wind LLC
100.00%
100.00%
Niterói
BR
12,969,032.25
BRL
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00%
100.00%
Sociedad
Agrícola de
Cameros Ltda
Santiago de
Chile
CL
5,738,046,495.00
CLP
Line-by-line
Enel Chile SA
57.50%
37.33%
Seville
ES
4,507,590.78
EUR
Line-by-line
Seville
ES
1,643,000.00
EUR
Equity
Enel Green Power
España SL
64.75%
45.39%
Enel Green Power
España SL
50.00%
35.05%
Sociedad Eólica
de Andalucía SA
Sociedad Eólica
El Puntal SL
490
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Sociedad Eólica
Los Lances SA
Sociedad para
el Desarrollo de
Sierra Morena
Cordobesa SA
Sociedad
Portuaria Central
Cartagena SA
Società di
sviluppo,
realizzazione
e gestione
del gasdotto
Algeria-Italia via
Sardegna SpA
in liquidation
(Galsi SpA in
liquidation)
Società Elettrica
Trigno Srl
Soetwater Wind
Farm (RF) (Pty)
Ltd
Soliloquoy Ridge
LLC
Somersworth
Hydro Company
Inc.
Sona Enerjí
Üretím Anoním
Şírketí
Sonak Solar
Project LLC
Seville
ES
2,404,048.42
EUR
Line-by-line
Cordoba
ES
86,063.20
EUR
-
Bogotá
CO
89,714,600.00
COP
Line-by-line
Enel Green Power
España SL
60.00%
42.06%
Endesa
Generación SA
1.82%
1.27%
Emgesa SA ESP
94.94%
Inversora Codensa
SAS
5.05%
31.50%
Milan
IT
37,419,179.00
EUR
-
Enel Produzione
SpA
17.65%
17.65%
Trivento
IT
100,000.00
EUR
Line-by-line
Johannesburg
ZA
1,000.00
ZAR
AFS
Minneapolis
US
-
USD
Line-by-line
Wilmington
US
100.00
USD
AFS
Istanbul
TR
50,000.00
TRY
Line-by-line
Andover
US
-
USD
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00%
60.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Enel Green Power
North America Inc.
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Sotavento Galicia
SA
Santiago de
Compostela
ES
601,000.00
EUR
Equity
Enel Green Power
España SL
36.00%
25.24%
South Rock
Wind Project LLC
Andover
US
1.00
Southwest
Transmission
LLC
Cedar Bluff
US
-
Spartan Hills LLC Minneapolis
US
-
Stampede Solar
Project LLC
Andover
US
-
Stillman Valley
Solar LLC
Wilmington
US
-
Stillwater Woods
Hill Holdings LLC
Wilmington
US
1.00
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
491
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Group %
holding
Held by
% holding
Enel Green Power
México S de RL
de Cv
55.21%
Stipa Nayaá SA
de Cv
Mexico City
MX
1,811,016,348.00
MXN
Line-by-line
95.37%
Enel Green Power
Partecipazioni
Speciali Srl
40.16%
Stockyard Solar
Project LLC
Andover
US
-
Strinestown
Solar I LLC
Andover
US
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Suave Energía S
de RL de Cv
Sublunary
Trading (RF) (Pty)
Suggestion
Power
(Unipessoal) Lda
Suministradora
Eléctrica de
Cádiz SA
Suministro de
Luz y Fuerza SL
Summit Energy
Storage Inc.
Mexico City
MX
1,000.00
MXN
Line-by-line
Bryanston
ZA
13,750,000.00
ZAR
Line-by-line
Paço de Arcos
PT
50,000.00
EUR
Line-by-line
Cádiz
ES
12,020,240.00
EUR
Equity
Barcelona
ES
2,800,000.00
EUR
Line-by-line
Wilmington
US
1,000.00
USD
Line-by-line
Sun River LLC
Bend
US
-
USD
Line-by-line
Enel Green Power
México S de RL
de Cv
0.10%
100.00%
Enel Rinnovabile
SA de Cv
99.90%
Enel Green Power
RSA (Pty) Ltd
57.00%
57.00%
Endesa Generación
Portugal SA
100.00%
70.11%
Endesa Red
SA (Sociedad
Unipersonal)
33.50%
23.49%
Hidroeléctrica de
Catalunya SL
60.00%
42.06%
Enel Green Power
North America Inc.
75.00%
75.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Sundance Wind
Project LLC
Dover
US
100.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Sunflower Prairie
Solar Project LLC
Andover
US
-
Swather Solar
Project LLC
Andover
US
1.00
Sweet Apple
Solar Project LLC
Andover
US
1.00
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tae Technologies
Inc.
Pauling
US
53,207,936.00
USD
-
Enel Produzione
SpA
1.12%
1.12%
Tauste Energía
Distribuida SL
Zaragoza
ES
60,508.00
EUR
Line-by-line
Tecnatom SA
Madrid
ES
4,025,700.00
EUR
Equity
Enel Green Power
España SL
51.00%
35.75%
Endesa
Generación SA
45.00%
31.55%
Tecnoguat SA
Guatemala City GT
30,948,000.00
GTQ
Line-by-line
Enel Rinnovabili Srl 75.00%
75.00%
492
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Tejo Energia
- Produção e
Distribuição de
Energia Eléctrica
SA
Tenedora
de Energía
Renovable Sol
y Viento SAPI
de Cv
Teploprogress
JSC
Termoeléctrica
José de San
Martín SA
Termoeléctrica
Manuel Belgrano
SA
Termotec
Energía AIE in
liquidation
Testing Stand
of Ivanovskaya
GRES JSC
Lisbon
PT
5,025,000.00
EUR
Equity
Endesa
Generación SA
43.75%
30.67%
Mexico City
MX
2,892,643,576.00 MXN
Equity
Enel Green Power
SpA
32.89%
32.90%
Sredneuralsk
RU
128,000,000.00
RUB
Line-by-line
Enel Russia PJSC
60.00%
33.86%
Buenos Aires
AR
7,078,298.00
ARS
Equity
Buenos Aires
AR
7,078,307.00
ARS
Equity
Central Dock Sud
SA
0.42%
Enel Generación
Costanera SA
1.68%
3.33%
Enel Generación El
Chocón SA
5.60%
Central Dock Sud
SA
0.47%
Enel Generación
Costanera SA
1.89%
3.72%
Enel Generación El
Chocón SA
6.23%
La Pobla de
Vallbona
ES
481,000.00
EUR
Equity
Enel Green Power
España SL
45.00%
31.55%
Komsomolsk
RU
118,213,473.45
RUB
-
Enel Russia PJSC
1.65%
0.93%
Texkan Wind LLC Andover
US
-
USD
Line-by-line
Enel Texkan Inc.
100.00%
100.00%
Thar Surya 1
Private Limited
Thunder Ranch
Wind Holdings
I LLC
Thunder Ranch
Wind Holdings
LLC
Gurgaon
IN
100,000.00
INR
Line-by-line
Dover
US
100.00
USD
Line-by-line
Avikiran Surya India
Private Limited
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Wilmington
US
-
Thunder Ranch
Wind Project LLC
Dover
US
1.00
Thunderegg
Wind Project LLC
Andover
US
1.00
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Thunder Ranch
Wind Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tico Solar 1 SLU
Zaragoza
ES
3,000.00
EUR
Line-by-line
Tico Solar 2 SLU Zaragoza
ES
3,000.00
EUR
Line-by-line
Tobivox (RF) (Pty)
Ltd
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
España SL
100.00%
70.11%
Enel Green Power
RSA (Pty) Ltd
60.00%
60.00%
493
Integrated Annual Report 2020 Torrepalma
Energy 1 SLU
Tradewind
Energy Inc.
Transmisora
de Energía
Renovable SA
Transportadora
de Energía SA -
TESA
Transportes y
Distribuciones
Eléctricas SA in
liquidation
Trévago
Renovables SL
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Toledo PV AIE
Madrid
ES
26,887.96
EUR
Equity
Enel Green Power
España SL
33.33%
23.37%
Enel Green Power
España SL
100.00%
70.11%
Madrid
ES
3,100.00
EUR
Line-by-line
Wilmington
US
1,000.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Guatemala City GT
233,561,800.00
GTQ
Line-by-line
Enel Rinnovabili Srl
100.00%
100.00%
Enel Green Power
Guatemala SA
0.00%
Transmisora
Eléctrica de
Quillota Ltda
Santiago de
Chile
CL
4,404,446,151.00
CLP
Equity
Generadora
Montecristo SA
0.00%
Enel Generación
Chile SA
50.00%
30.37%
Enel Argentina SA
0.00%
Buenos Aires
AR
2,584,473,416.00
ARS
Line-by-line
Enel Brasil SA
60.15%
65.00%
Girona
ES
72,121.45
EUR
Line-by-line
Madrid
ES
3,000.00
EUR
Equity
Tsar Nicholas
LLC
Minneapolis
US
-
Tula WPS LLC
Tula
RU
-
USD
RUB
Line-by-line
Line-by-line
Tunga
Renewable
Energy Private
Limited
Gurugram
IN
100,000.00
INR
Line-by-line
Enel CIEN SA
39.85%
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
Furatena Solar 1
SLU
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
Chi Minnesota
Wind LLC
Enel Green Power
Rus Limited
Liability Company
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
73.33%
51.41%
17.73%
17.77%
24.89%
51.00%
51.00%
100.00%
100.00%
100.00%
100.00%
TWE Franklin
Solar Project LLC
Andover
US
-
TWE ROT DA LLC Andover
US
1.00
Twin Lake Hills
LLC
Twin Saranac
Holdings LLC
Minneapolis
US
-
Wilmington
US
-
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Tyme Srl
Bergamo
IT
100,000.00
EUR
Equity
Yousave SpA
50.00%
50.00%
494
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Tynemouth
Energy Storage
Limited
Ufinet Argentina
SA
Ufinet Brasil
Participações
Ltda
Ufinet Brasil
Telecomunicação
Ltda
London
GB
2.00
GBP
AFS
Buenos Aires
AR
9,745,583.00
ARS
Equity
Santo André
BR
45,784,638.00
BRL
Santo André
BR
45,784,638.00
BRL
-
-
Enel Global
Thermal
Generation Srl
100.00%
100.00%
Ufinet Latam SLU
99.95%
Ufinet Panamá SA
0.05%
Ufinet Guatemala
SA
0.00%
20.60%
20.60%
Ufinet Latam SLU
100.00%
Ufinet Brasil
Participações Ltda
100.00%
20.60%
Ufinet Latam SLU
0.00%
Ufinet Chile SpA
Santiago de
Chile
CL
233,750,000.00
CLP
Equity
Ufinet Latam SLU
100.00%
20.60%
Ufinet Colombia
SA
Bogotá
CO
1,180,000,000.00 COP
Equity
Ufinet Guatemala
SA
0.00%
Ufinet Honduras
SA
0.00%
18.54%
Ufinet Latam SLU
90.00%
Ufinet Panamá SA
0.00%
Ufinet Costa
Rica SA
Ufinet Ecuador
Ufiec SA
Ufinet El Salvador
SA de Cv
Ufinet Guatemala
SA
Ufinet Honduras
SA
San José
CR
25,000.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Quito
EC
1,507,800.00
USD
Equity
San Salvador
SV
10,000.00
USD
Equity
Guatemala City GT
3,000,000.00
GTQ
Equity
Tegucigalpa
HN
194,520.00
HNL
Equity
Ufinet Guatemala
SA
0.00%
Ufinet Latam SLU
100.00%
Ufinet Guatemala
SA
0.01%
Ufinet Latam SLU
99.99%
Ufinet Latam SLU
99.99%
Ufinet Panamá SA
0.01%
Ufinet Latam SLU
99.99%
Ufinet Panamá SA
0.01%
20.60%
20.60%
20.60%
20.60%
Ufinet Latam SLU Madrid
ES
15,906,312.00
EUR
Equity
Zacapa Sàrl
100.00%
20.60%
Ufinet México S
de RL de Cv
Mexico City
MX
7,635,430.00
MXN
Equity
Ufinet Guatemala
SA
1.31%
20.60%
Ufinet Latam SLU
98.69%
Ufinet Guatemala
SA
0.50%
Ufinet Nicaragua
SA
Managua
NI
2,800,000.00
NIO
Equity
Ufinet Latam SLU
99.00%
20.60%
Ufinet Panamá SA
0.50%
Ufinet Panamá
SA
Ufinet Paraguay
SA
Panama City
PA
1,275,000.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Asunción
PY
79,488,240,000.00 PYG
Equity
Ufinet Latam SLU
75.00%
15.45%
495
Integrated Annual Report 2020
Valdecaballero
Solar SL
Vayu (Project 1)
Private Limited
Vektör Enerjí
Üretím Anoním
Şírketí
Ventos de Santo
Orestes Energias
Renováveis SA
Ventos de São
Roque Energias
Renováveis SA
Vientos del
Altiplano S de RL
de Cv
Villanueva Solar
SA de Cv
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Ufinet Perú SAC Lima
PE
2,836,474.00
PEN
Equity
Held by
% holding
Ufinet Latam SLU
100.00%
Ufinet Panamá SA
0.00%
Group %
holding
20.60%
Ufinet Us LLC
Wilmington
US
1,000.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Ukuqala Solar
(Pty) Ltd
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Unión Eléctrica
de Canarias
Generación SAU
Las Palmas de
Gran Canaria
ES
190,171,520.00
EUR
Line-by-line
Upington Solar
(Pty) Ltd
Johannesburg
ZA
1,000.00
ZAR
Line-by-line
Ustav Jaderného
Výzkumu Rez AS
Řež
CZ
524,139,000.00
CZK
Equity
Madrid
ES
3,000.00
EUR
Line-by-line
Gurugram
IN
10,000,000.00
INR
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Endesa
Generación SA
100.00%
70.11%
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Slovenské
elektrárne AS
27.77%
9.17%
Enel Green Power
España SL
Enel Green Power
India Private
Limited (formerly
BLP Energy Private
Limited)
100.00%
70.11%
100.00%
100.00%
Istanbul
TR
3,500,000.00
TRY
AFS
Enel SpA
100.00%
100.00%
Maracanaú
BR
1,754,031.00
BRL
Line-by-line
Maracanaú
BR
9,988,722.00
BRL
Line-by-line
Mexico City
MX
1,455,854,094.00 MXN
Equity
Mexico City
MX
205,316,027.15
MXN
Equity
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
100.00%
100.00%
100.00%
100.00%
60.80%
20.00%
60.80%
20.00%
Viruleiros SL
Santiago de
Compostela
ES
160,000.00
EUR
Line-by-line
Enel Green Power
España SL
67.00%
46.97%
Viva Labs AS
Oslo
NO
105,534.00
NOK
Line-by-line
Enel X International
Srl
60.00%
60.00%
Wapella Bluffs
Wind Project LLC
Andover
US
1.00
Waseca Solar
LLC
Waseca
US
-
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Wilmington
US
-
USD
Line-by-line
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Weber Energy
Storage Project
LLC
496
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Wespire Inc.
Boston
US
1,625,000.00
USD
Equity
Enel X North
America Inc.
11.21%
11.21%
West Faribault
Solar LLC
Wilmington
US
-
West Hopkinton
Hydro LLC
Wilmington
US
-
Wilmington
US
-
USD
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Albany
US
300.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
West Waconia
Solar LLC
Western New
York Wind
Corporation
Wharton-El
Campo Solar
Project LLC
White Cloud
Wind Holdings
LLC
Andover
US
1.00
Andover
US
-
White Cloud
Wind Project LLC
Andover
US
1.00
White Peaks
Wind Project LLC
Andover
US
1.00
Whitetail Trails
Solar Project LLC
Andover
US
-
Whitney Hill
Wind Power
Holdings LLC
Andover
US
99.00
Whitney Hill
Wind Power LLC
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
White Cloud Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Whitney Hill Wind
Power Holdings
LLC
100.00%
100.00%
Enel Alberta Wind
Inc.
0.10%
Wild Run LP
Alberta
CA
10.00
CAD
Line-by-line
100.00%
Wildcat Flats
Wind Project LLC
Andover
US
1.00
Andover
US
-
Andover
US
1.00
USD
USD
USD
Wilderness
Range Solar
Project LLC
Wind Belt
Transco LLC
Wind Parks
Anatolis - Prinias
Single Member
SA
Wind Parks
Bolibas SA
Wind Parks
Distomos SA
Maroussi
GR
1,218,188.00
EUR
Line-by-line
Maroussi
GR
551,500.00
EUR
Maroussi
GR
556,500.00
EUR
Equity
Equity
Enel Green Power
Canada Inc.
99.90%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas SA
100.00%
100.00%
100.00%
100.00%
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
497
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Wind Parks Folia
SA
Maroussi
GR
424,000.00
EUR
Maroussi
GR
389,000.00
EUR
Maroussi
GR
551,500.00
EUR
Maroussi
GR
555,000.00
EUR
Maroussi
GR
551,500.00
EUR
Equity
Equity
Equity
Equity
Equity
Maroussi
GR
778,648.00
EUR
Line-by-line
Maroussi
GR
945,990.00
EUR
Line-by-line
Maroussi
GR
1,034,774.00
EUR
Line-by-line
Maroussi
GR
772,639.00
EUR
Line-by-line
Maroussi
GR
2,239,800.00
EUR
Line-by-line
Maroussi
GR
575,000.00
EUR
Equity
Maroussi
GR
635,467.00
EUR
Line-by-line
Maroussi
GR
472,000.00
EUR
Equity
Maroussi
GR
857,490.00
EUR
Line-by-line
Maroussi
GR
576,500.00
EUR
Maroussi
GR
361,000.00
EUR
Maroussi
GR
554,000.00
EUR
Equity
Equity
Equity
Minneapolis
US
-
USD
Line-by-line
Enel Green Power
Hellas SA
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia Single
Member SA
Enel Green Power
Hellas SA
30.00%
30.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
30.00%
30.00%
100.00%
100.00%
30.00%
30.00%
100.00%
100.00%
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
Enel Green Power
Hellas SA
30.00%
30.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Wind Parks
Gagari SA
Wind Parks
Goraki SA
Wind Parks
Gourles SA
Wind Parks
Kafoutsi SA
Wind Parks
Katharas Single
Member SA
Wind Parks
Kerasias Single
Member SA
Wind Parks Milias
Single Member
SA
Wind Parks
Mitikas Single
Member SA
Wind Parks
Paliopirgos SA
Wind Parks
Petalo SA
Wind Parks
Platanos Single
Member SA
Wind Parks
Skoubi SA
Wind Parks
Spilias Single
Member SA
Wind Parks
Strouboulas SA
Wind Parks
Vitalio SA
Wind Parks
Vourlas SA
Winter’s Spawn
LLC
498
Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
WKN Basilicata
Development
PE1 Srl
Woods Hill Solar
LLC
WP Bulgaria 1
EOOD
Rome
IT
10,000.00
EUR
Line-by-line
Wilmington
US
-
USD
Line-by-line
Sofia
BG
5,000.00
BGN
Line-by-line
WP Bulgaria 10
EOOD
Sofia
WP Bulgaria 11
EOOD
Sofia
WP Bulgaria 12
EOOD
Sofia
WP Bulgaria 13
EOOD
Sofia
WP Bulgaria 14
EOOD
Sofia
WP Bulgaria 15
EOOD
Sofia
WP Bulgaria 19
EOOD
Sofia
WP Bulgaria 21
EOOD
Sofia
WP Bulgaria 26
EOOD
Sofia
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
BG
5,000.00
BGN
Line-by-line
WP Bulgaria 3
EOOD
WP Bulgaria 6
EOOD
WP Bulgaria 8
EOOD
WP Bulgaria 9
EOOD
Sofia
BG
5,000.00
BGN
Line-by-line
Sofia
BG
5,000.00
BGN
Line-by-line
Sofia
BG
5,000.00
BGN
Line-by-line
Sofia
BG
5,000.00
BGN
Line-by-line
Xaloc Solar SLU
Valencia
ES
3,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Stillwater Woods
Hill Holdings LLC
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
Bulgaria EAD
100.00%
100.00%
Enel Green Power
España SL
100.00%
70.11%
X-bus Italia Srl
Milan
IT
15,000.00
EUR
Equity
Enel X Italia Srl
20.00%
20.00%
Yacylec SA
Buenos Aires
AR
20,000,000.00
ARS
Equity
Enel Américas SA
33.33%
21.67%
Yedesa-
Cogeneración
SA
Almería
ES
234,394.72
EUR
Equity
Enel Green Power
España SL
40.00%
28.04%
499
Integrated Annual Report 2020 Company name Headquarters
Country
Share/Quota
capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Yousave SpA
Bergamo
IT
500,000.00
EUR
Line-by-line
Enel X Italia Srl
100.00%
100.00%
Zacapa HoldCo
Sàrl
Luxembourg
LU
76,180,812.49
EUR
Equity
Zacapa Topco Sàrl
100.00%
20.60%
Zacapa LLC
Wilmington
US
100.00
USD
Equity
Zacapa Sàrl
100.00%
20.60%
Zacapa Sàrl
Luxembourg
LU
82,866,475.04
USD
Equity
Zacapa Topco
Sàrl
Zoo Solar Project
LLC
Luxembourg
LU
30,000,000.00
EUR
Equity
Andover
US
-
USD
Line-by-line
Zacapa HoldCo
Sàrl
100.00%
20.60%
Enel X International
Srl
20.60%
20.60%
Tradewind Energy
Inc.
100.00%
100.00%
500
501
Integrated Annual Report 2020 Concept design and realization
HNTO
Copy editing
postScriptum di Paola Urbani
By
Enel Communications
Disclaimer
This Report issued in Italian
has been translated into
English solely for the convenience
of international readers
Enel
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Stock Capital Euro 10,166,679,946 fully paid-in
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