Integrated Annual
Report 2021
Integrated Annual
Report 2021
This document has been prepared in PDF format in order to facilitate readers of the financial statements. This document is a
supplementary variant of the official version compliant with the provisions of Commission Delegated Regulation (EU) 2019/815 (the
ESEF Regulation - European Single Electronic Format) available on the Company's website (www.enel.com) and at the authorized
storage mechanism “eMarket STORAGE” (www.emarketstorage.com).
Enel is Open Power
POSITIONING
Open Power
VISION
Open Power
to tackle some
of the world’s
biggest challenges.
Integrated Annual Report 2021
MISSION
• 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.
PRINCIPLES OF CONDUCT
• 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.
VALUES
• Trust
• Proactivity
• Responsibility
• Innovation
Letter to
shareholders
and other
stakeholders
Michele Crisostomo
Francesco Starace
Chairman
Chief Executive Officer
and General Manager
6
Integrated Annual Report 2021
Dear shareholders and stakeholders,
2021 was the year in which the Enel Group
sharply accelerated its energy-transition
strategy towards a decarbonized, customer-
centric business model.
We are the largest private renewable energy
operator in the world, with 53.4 GW of managed
capacity, and the largest private-sector
electricity distribution company globally, with
more than 75 million end users connected to
our grids, the world’s most advanced digitalized
networks. We also manage the largest
customer base in the world among private-
sector companies, with more than 69 million
customers.
Our business model, which is entirely based
on digital platforms, enables us to optimally
seize the opportunities offered by the energy
transition now under way around the globe.
75 million
End users
53.4 GW
Renewables
capacity managed
The solid economic and financial
performance of the Enel Group in
2021 made it possible to achieve
the objectives we announced to
the market, including our targets
for EBITDA and ordinary profit.
The Group’s leadership in sustainability
was once again recognized at
the international level by our
continuing presence in a number
of important sustainability ratings,
indices and rankings. In addition,
Enel was again included in the main
indices that monitor corporate gender
diversity performance.
In 2021 we were again the leading utility by
market capitalization in Europe and the second
in the world.
The macroeconomic environment
The global economy in 2021 experienced
a generalized recovery on a global scale,
with estimated world GDP growth of
about 5.8% on an annual basis, sustained
by government fiscal policies and strong
monetary stimulus from central banks,
as well as by the effective vaccination
campaign implemented in many countries
starting from the 2nd Quarter of the year.
In the United States, GDP expanded by an
annual 5.7% in 2021, although the decline
in private consumption and industrial
production, shortages of raw materials and
sharply rising energy prices slowed the
economy in the final months of the year.
In the euro area, the real economy
registered a substantial recovery in 2021,
with GDP growing by 5.2% on an annual
basis, driven by a strong recovery in the 2nd
and 3rd Quarters, although growth slowed
in the 4th Quarter due to a rapid increase
in energy prices and the introduction of
restrictions on economic activity and
mobility in response to the spread of the
Omicron variant.
The pattern was similar in Latin America,
where economic developments in 2021
were strongly influenced by the progress
of national vaccination campaigns, with
an average increase in GDP of almost 10%
compared with the previous year in the
main countries in which we operate.
The broad-based recovery and the
reopening of commercial activities at
the beginning of 2021 generated large
imbalances between supply and demand,
creating severe distortions in supply chains
and consequently triggering inflationary
pressures that subsequently impacted
the prices of intermediate and consumer
goods.
During 2021, the oil market experienced
rapid growth in its indices, reflecting
optimism about the recovery in economic
activity, combined with the precautionary
measures of OPEC regarding production
cuts. Considerable volatility was registered
in the European gas market, caused by both
supply and demand factors, contributing to a
sharp increase in prices in the 4th Quarter of
2021. CO2 prices also increased, responding
to the strong commitment expressed by the
European authorities, who expressed their
intention to reduce CO2 emissions by at
least 55% by 2030, causing the price of the
commodity to rise above €80/ton at the end
of December.
The bullish performance of the commodity
markets in 2021 led to a sharp increase in
power prices across Europe, which exceeded
220% compared with 2020 in Italy and Spain.
Letter to shareholders and other stakeholders
7
Ordinary
net profit
€5.6
billion
+8%
on 2020
The year 2021 was also characterized
by large increases in the prices of the
main industrial metals. The resumption
of economic activity and the revival of
investment have driven demand, while
supply has been challenged by availability
issues and logistical bottlenecks,
generating scarcity on the market with a
consequent sharp rise in prices.
The world scenario, already characterized
by high price volatility, was further shaken
in February 2022 by the Russian military
intervention in Ukraine.
The conflict is dramatic in its impact on
the civilian population and its profound
Performance
The Enel Group continued to grow in 2021,
hitting all the objectives announced to the
financial community despite the continuing
instability associated with the COVID-19
pandemic and the uncertainty engendered
by the volatility in commodity prices.
In particular, the 2021 financial year closed
with ordinary EBITDA of €19.2 billion, with
an increase of 6.7% compared with 2020.
Ordinary profit, on which the dividend is
calculated, reached €5.6 billion, an increase
Main developments
As in previous years, Enel reached a
new record for renewables generation
capacity in 2021, adding 5,120 MW of
new renewables capacity globally, which
includes 220 MW of battery storage for
the first time, while continuing to grow our
project pipeline to 370 GW worldwide.
Installed renewables capacity reached
53.4 GW, taking an important step towards
the complete decarbonization of the
generation mix and divesting 1,983 MW of
installed coal-fired capacity.(1)
For the second consecutive year, 2021
posted a record for renewables generation,
with about 118 TWh of output, equal to 51%
of the total Group production.
effect on the world's geopolitical,
economic and energy balance, with major
repercussions for the energy security of
the European Union countries in particular.
In this constantly evolving environment,
the Group is carefully monitoring
international developments, promptly
assessing the impacts on its business
activities, financial situation and
performance in the main euro-area
countries in which it operates, with
particular regard to the shortage of raw
materials from the areas affected by the
conflict and the generalized increase in
commodity prices.
of 8% compared with the previous year.
The dividend for 2021 amounts to €0.38
per share, an increase of 6.1% compared
with 2020. In terms of cash generation, FFO
in 2021 were about 3% greater than the
previous year despite the impact on working
capital of the still unstable macroeconomic
situation. Net debt is equal to €52.0 billion,
lower than the forecasts previously provided
to investors.
As a result, the Group reduced specific CO2
emissions to 227 gCO2eq/kWh, a decrease
of 45% compared with 2017, continuing
progress along the path towards the SBTi
certified target of 82 gCO2eq/kWh by 2030.
Thanks to investments in grids and the
simultaneous effort to digitalize systems
and processes, we have reached 75
million customers connected to our
grids, 60% of which are equipped with
smart meters. At the same time, we have
exceeded 1 million prosumers (customers
who are both consumers and electricity
producers) connected to the Group’s grids.
Furthermore, the volume of electricity
distributed over our grids around the world
(1)
1,120 MW Litoral (Andalusia, Spain), 548 MW La Spezia (Liguria, Italy) and 315 MW units 1 and 2 of Fusina (Veneto, Italy).
8
Integrated Annual Report 2021
reached 510 TWh in 2021, surpassing the
levels recorded in the pre-pandemic period.
In order to meet the new demands on the
grid and the new role of distribution system
operators (DSOs), the Grid Futurability®
project was launched in 2021 within the
scope of COP26, with which the Global
Infrastructure and Networks (GI&N) area
has delineated a path to 2030 for the
renovation, upgrading, digitalization and
expansion of power grids.
The year 2021 was also crucial for the
progress of the Grid Blue Sky project, which
seeks to redesign the operating model
from a platform standpoint, making grid
operations significantly more efficient and
enabling new services for customers.
Furthermore, 2021 saw the launch of
Gridspertise, a company born from the
Group’s successful experience in the field
of technological and digital innovation of
distribution grids, with the aim of making
innovative solutions available to third-party
distribution companies to accelerate the
energy transition.
The Group confirmed its leadership in
managing the largest customer base in
the world, with 16 retailers, 69 million
commodity customers and 7 million
beyond-commodity customers.
In order to simplify the customer
experience and maximize their satisfaction,
in April the Global Customer Operations
Service Function was created. It is
responsible for managing and optimizing
the activation, billing, credit and customer
care processes, leveraging the platform
operating model.
Furthermore, in order to seize the incredible
opportunities offered by the electrification
process that will characterize the coming
decade, a new global organizational unit
named Enel X Global Retail was created with
the job of creating a single commercial and
marketing strategy directed at end users,
integrating the commodity market with
the beyond-commodity solutions offered
by the Enel X businesses. Our leadership
has grown stronger in the business-to-
government segment, in active demand
management services for our industrial
customers and in energy storage solutions
in the business-to-business segment.
In order to further accelerate the
electrification of transport, we have
launched the new Enel X Way in order to
lend even more energy to the development
of electric mobility, a key business for the
energy transition.
Among extraordinary corporate
transactions during the year, the sale of
50% of the share capital of Open Fiber, held
by Enel, to Macquarie Infrastructure and
Real Assets and CDP Equity (40% and 10%
respectively) closed in December 2021.
From a financial point of view, on March
4, 2021, an equity-accounted perpetual
hybrid bond was issued in the amount of
€2.25 billion. The transaction increased the
Group’s hybrid bond portfolio, bringing it
to about €5.6 billion, further strengthening
and optimizing the Group’s financial
structure.
Between June and September 2021,
Enel issued sustainability-linked bonds
denominated in euros and US dollars
in the total equivalent amount of
about €10.1 billion. These issues
are linked to the achievement
of Enel’s sustainability target
for the reduction of direct
greenhouse gas emissions
(Scope 1) and are consistent
with the Group’s Sustainability-Linked
Financing Framework, updated to January
2021.
At the same time, Enel repurchased and
cancelled outstanding bonds not linked to
the pursuit of SDG objectives through two
voluntary purchase offers and the exercise
of repurchase options for a total amount of
about €7.4 billion.
The bond issue and repurchase programs
made it possible to achieve a ratio
between sustainable sources
of financing and the Group’s
total gross debt of about 55%,
simultaneously reducing the
cost of the Group’s debt to its
current 3.5%.
Furthermore, on March 5, 2021, Enel
obtained a revolving 5-year credit line
from a pool of banks in the amount of
€10 billion. The credit line is linked to the
key performance indicator (KPI) for direct
greenhouse gas emissions.
€10.1
billion
Sustainability-linked
bonds issued between
June and September
2021
55 %
Ratio between
sustainable sources
of financing and the
Group’s total gross
debt
Letter to shareholders and other stakeholders
9
€210
billion
Direct and
third-party
investments to
2030
Strategy and forecasts for 2022-2024
Over the past decade we have seen how
the development of renewables has been
the dominant trend in energy generation
thanks to cost reductions, allowing
decarbonization to proceed more rapidly.
Similarly, we expect the electrification
process to characterize the current decade,
emerging as a crucial factor for avoiding
the grave consequences of a temperature
increase above 1.5 °C compared with pre-
industrial levels.
With electrification, customers will gradually
convert their energy consumption to
electricity, with gains in terms of cost,
efficiency, emissions and price stability.
With the new Strategic Plan, the Group has
confirmed the path towards 2030 already
under way, increasing investments envisaged
in the previous Business Plan by 6% to
around €210 billion in direct and third-party
investments.
The Group confirmed the use of two
different business models (Ownership and
Stewardship) to achieve the objectives we
have set, which will be deployed depending
on geographical area and operating
conditions.
The strategy and positioning of the Group
envisaged for 2030 have made it possible to
bring forward the “Net-Zero” commitment
for both direct and indirect emissions by
10 years from 2050 to 2040. With regard
to the generation of energy and the
sale of electricity and natural gas to end
users, Enel is committed to achieving zero
emissions without resorting to CO2 capture
techniques or nature-based solutions such
as reforestation.
The Plan underpinning the early
achievement of this ambitious goal is
based on the implementation of certain
key strategic steps: (i) the plan to abandon
coal and gas generation by 2027 and
2040 respectively, replacing the thermal
generation portfolio with new renewables
capacity and exploiting the hybridization
of renewables with storage solutions; (ii) by
2040, 100% of the electricity sold by the
Group will be generated from renewables
and by the same year the Group will exit the
retail gas sales business.
In support of our long-term targets, in
2022-2024 the Group expects to directly
invest around €45 billion, of which €43
billion through the Ownership model, mainly
in expanding and upgrading grids and in
developing renewables and about €2 billion
through the Stewardship model, while
mobilizing €8 billion in investment from
third parties.
About 94% of 2022-2024 consolidated
investment is in line with the United Nations
Sustainable Development Goals (SDGs) and
it is estimated that more than 85% of this
investment will be aligned with the criteria
of the European taxonomy.
The Group expects to increase the
renewables capacity it manages to some 77
GW by the end of 2024, with zero-emission
output reaching about 77% of the total,
with a decrease in specific greenhouse gas
emissions of more than 35% in the same
period.
In distribution grids, the acceleration
of investment, thanks in part to the
opportunities created with the National
Recovery and Resilience Plans launched by
the European Union, will expand the Group’s
regulatory asset base (RAB) by 14% to about
€49 billion in 2024, making it possible to
reach a total of some 81 million customers
served, 4 million of which through the
Stewardship model.
The central role of our customers in
the Group’s business model makes the
integrated margin a pillar of our Plan.
10
Integrated Annual Report 2021
This is the margin from the sale of power
generated and purchased, the correct
management of which requires the joint
optimization of both sales and provisioning.
Compared with 2021, we expect the
integrated margin to grow 1.6 times
by 2024. This will be accompanied by a
decrease of about 15% in the total cost of
electricity sold compared with 2021.
On the performance front, the Group
expects ordinary EBITDA to reach between
€21.0 and 21.6 billion by 2024, an increase
of about 11% compared with 2021. At the
same time, ordinary profit is forecast to rise
by about 20% from €5.6 billion in 2021 to
between €6.7 and 6.9 billion in 2024.
Enel’s dividend policy for the period
remains simple, predictable and attractive.
Shareholders should receive a fixed
dividend per share (DPS) that is expected to
increase by 13% between 2021 and 2024,
reaching €0.43 per share.
Letter to shareholders and other stakeholders
11
Contents
LETTER TO SHAREHOLDERS AND OTHER STAKEHOLDERS
6
REPORT
ON OPERATIONS
BASIS OF PRESENTATION
14
1.
2.
3.
ENEL GROUP
20
GOVERNANCE
Highlights
World Economic Forum
(WEF)
European Union
taxonomy
Value creation
and the business
model
Enel around the world
22
26
28
31
36
Enel shareholders
Corporate boards
The Enel corporate
governance system
Enel organizational model
Incentive system
Values and pillars
of corporate ethics
38
40
42
44
51
54
55
GROUP STRATEGY &
RISK MANAGEMENT
Group strategy
58
60
Reference scenario
74
- Macroeconomic environment 74
- The energy industry
76
- Climate change and
long-term scenarios
79
- Assessment of the risks and
opportunities connected with
the Strategic Plan
Risk management
96
98
Guide to navigating the report
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hyperlinks have been
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Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Back/forward
Statement of Comprehensive Income
4.
5.
GROUP PERFORMANCE
130
OUTLOOK
Outlook for operations
Other information
Definition of performance
indicators
Performance of the Group
Value generated and
distributed for
stakeholders
Analysis of the Group’s
financial position
and structure
Performance by
Business Line
Enel shares
132
134
162
163
170
205
Innovation and digitalization
208
People centricity
Significant events in 2021
Regulatory and rate issues
212
223
231
CONSOLIDATED
FINANCIAL STATEMENTS
6.
252
254
256
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated financial
statements
Notes to the consolidated
financial statements
Declaration of the Chief
Executive Officer
and the officer in charge
REPORTS
Report of the Board
of Statutory Auditors
Report of the Audit Firm
ATTACHMENTS
Subsidiaries, associates
and other significant
equity investments of
the Enel Group
at December 31, 2021
260
262
269
437
438
438
453
460
460
Basis of Presentation
Enel’s approach to corporate reporting
The Integrated Annual Report of the Enel Group, consisting
of the Report on Operations inspired by integrated think-
ing and the consolidated financial statements prepared
in accordance with the IFRS/IAS international accounting
standards, represents the “core” document of the Enel
Group’s integrated corporate reporting system, based on
the transparency and accountability of information.
The objective of the Enel’s Integrated Annual Report is to
describe its strategic-sustainable thinking and to present
its results and the medium- and long-term outlook for a
sustainable and integrated business model that in recent
years has fostered the creation of value in the context of
the energy transition.
The Enel Group has drawn inspiration from the “Core&More”
reporting approach, designing its own corporate reporting
system at the service of all stakeholders in a connected,
logical and structured manner and developing its own
concept for presenting economic, social, environmental
and governance information, in accordance with specif-
ic regulations, recommendations and international best
practices.
This “Core Report” seeks to provide a holistic view of the
Group, its sustainable and integrated business model and
the related medium/long-term value creation process,
including the qualitative and quantitative financial and
non-financial information considered most relevant on the
basis of a materiality assessment that also considers the
expectations of all stakeholders.
The “More Reports”, on the other hand, include more de-
tailed and additional information, partly in compliance with
specific regulations, than that provided in the Core Report
while being cross referenced to the latter.
14
14
Integrated Annual Report 2021
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 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
2021
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
Basis of Presentation
15
15
The Integrated Annual Report and materiality analysis
As an expression of integrated thinking, the Integrated An-
nual Report seeks to represent the capacity of the busi-
ness model to create value for stakeholders in the short,
medium and long term, ensuring the connectivity of the
information it contains.
The Group maintains ongoing relationships with all stake-
holders in order to understand and meet their reporting
needs, taking account of the importance of the impact of
the Group’s business model for all interests involved, with a
view to creating shared value.
The financial and non-financial information presented
within the various documents of the corporate reporting
system are selected based on their materiality determined
on the basis of specific frameworks, methodologies and
assessments.
The following represent the key principles underpinning
the preparation of the Report on Operations, with the ba-
sis of preparation of the consolidated financial statements
being discussed in the section “Form and content of the
consolidated financial statements”.
The Report on Operations includes financial and sustain-
ability information selected on the basis of a materiality
analysis that takes account of stakeholder information
requirements, including Enel’s contribution to achieving
the United Nations Sustainable Development Goals (SDGs)
included in the Group Strategic Plan (i.e., “Affordable and
Clean Energy” (SDG 7), “Industry, Innovation and Infrastruc-
ture” (SDG 9), “Sustainable Cities and Communities” (SDG
11) and “Climate Action” (SDG 13)) and on the activities im-
plemented to contribute to their achievement in order to
meet the expectations of the main stakeholders in the In-
tegrated Annual Report.
The Enel Group also performs a double materiality analysis,
details on which are available in the methodological note of
the Sustainability Report.
In addition to the concept of materiality, the qualitative
and quantitative financial and sustainability information
reported in the Report on Operations have been prepared
and presented in such a way as to ensure their complete-
ness, accuracy, neutrality and comprehensibility.
The information contained in the Report on Operations is
also consistent with the previous year.
Accordingly, the Group applies the same methodologies
from year to year, unless otherwise specified, in compli-
ance with international best practices for integrated re-
porting and non-financial reporting.
For the purposes of preparing sustainability information,
especially quantitative information, the Group mainly ap-
plies the provisions of the Global Reporting Initiative (GRI)
Standard, in line with the Sustainability Report, and the
“Aspects” of the GRI supplement dedicated to the Elec-
tric Utilities sector (“Electric Utilities Sector Disclosures”).
Consideration was also given to the indicators proposed in
the white paper “Towards Common Metrics and Consist-
ent Reporting of Sustainable Value Creation” of the World
Economic Forum (WEF), the details of which are highlight-
ed in the section below on the WEF and in the “Group Per-
formance” chapter of this Report.
16
16
Integrated Annual Report 2021
The Report on Operations in organized into the following
sections:
Outlook
The section discusses significant
developments connected with the
outlook for the operations of the Enel
Group, providing forward-looking
information in line with the Strategic
Plan
Group
Performance
In accordance with “IFRS 8 - Segment
Reporting“, this section focuses on the
business segments of the Enel Group
and their financial and non-financial
performance for the year, offering a
holistic view consistent with Enel’s
integrated and sustainable business
model
4
3
Taking account of the results of the priority matrix and
the significant climate impacts on the Group’s value cre-
ation process, each chapter (entitled after the four pillars
of the Task Force on Climate-Related Financial Disclosures
- TCFD: Governance, Group Strategy & Risk Management,
Group Performance and Outlook) includes information re-
lating to climate change as proposed by the TCFD, which
published specific recommendations in June 2017 that
were adopted by the Group in its voluntary reporting on
the financial impacts of climate risks.
The Group also took account of the recommendations is-
sued by the IASB in November 2019 “IFRS Standards and
climate-related disclosures” and November 2020 “Effects
of climate-related matters on financial statements“, which
emphasize that this risk must be considered in the as-
Connectivity matrix
1
Governance
The section discusses the Group’s
governance bodies, its organizational
model and its involvement in
sustainability and climate change
policies
100%
2
Group Strategy and
Risk Management
Founded on a macroeconomic vision,
the section provides an overview of
the Group’s strategies and the main
objectives of the Strategic Plan,
examining the main risks to which
the Group is exposed, including risks
associated with climate change and
specific mitigation actions. It also
underscores the opportunities of the
business model within the current
energy transition scenario
sumptions of management in the exercise of its judgment
in measuring items in the financial statements.
In order to ensure the connectivity of information and to
communicate the way in which the progress achieved in
sustainability contributes to enhancing current and future
financial performance, clear and consistent relationships
between key financial and sustainability information have
been identified and presented in the Report on Operations
for each of the four chapters indicated above.
In addition, Enel’s Integrated Annual Report has been pub-
lished in the “Investors” section of the Enel website (www.
enel.com).
In order to provide an integrated representation of the
Group and represent the connectivity of information, since
2020 the Enel Group has prepared a matrix delineating the
relationships between:
• strategic objectives that also clearly represent Enel’s
contribution to achieving the United Nations Sustaina-
ble Development Goals (SDGs) and in particular the four
key objectives of the Strategic Plan (i.e., SDG 7, SDG 9,
SDG 11 and SDG 13);
• the governance, Group strategy and risk management,
Group performance and the outlook for each Business
Line.
Basis of Presentation
17
17
Enel business
Value creation and
business model
Governance
Group strategy
SDGs
Risk management
Group performance
Outlook
GENERATION AND
TRADING
ENEL GREEN POWER AND
THERMAL GENERATION
&
GLOBAL ENERGY AND
COMMODITY MANAGEMENT
• Enel shareholders
• Corporate boards
• The Enel corporate governance
system
• Enel organizational model
• Incentive system
“THE DECADE
OF ELECTRIFICATION“
I.
Allocate capital to support the
supply of decarbonized electricity
II. Enable the electrification of
customer energy demand
III. Leverage the creation of value
throughout the value chain
• Values and pillars of corporate
ethics
IV. Move forward achievement of
sustainable Net-Zero objectives to
2040
CUSTOMERS
RETAIL
ENEL X
DISTRIBUTION
GLOBAL INFRASTRUCTURE
AND NETWORKS
18
18
Integrated Annual Report 2021
Value generated and distributed for stakeholders (p. 162)
Innovation and digitalization (p. 208)
ENEL GREEN POWER (p. 180)
Operations
• Net electricity generation
• Net efficient installed capacity
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
THERMAL GENERATION AND TRADING (p. 174)
Operations
• Net electricity generation
• Net efficient installed capacity
• Revenue from thermal and nuclear generation
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Value generated and distributed for stakeholders (p. 162)
Innovation and digitalization (p. 208)
END-USER MARKETS (p. 194)
Operations
• Sales of electricity
• Sales of natural gas
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Strategic (p. 102)
• Legislative and regulatory
developments
• Macroeconomic and geopolitical
trends
• Risks and strategic opportunities
associated with climate change
• Competitive environment
Financial (p. 121)
• Interest rate
• Commodity
• Currency
• Credit and counterparty
• Liquidity
Digital Technology (p. 124)
• Cyber security
• Digitalization, IT effectiveness and
service continuity
Value generated and distributed for stakeholders (p. 162)
Innovation and digitalization (p. 208)
ENEL X (p. 198)
Operations
• Demand response
• Lighting points
• Storage
• Charging points
Performance
• Revenue
• Procurement, logistics and supply
chain
• People and organization
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Operational (p. 125)
• Health and safety
• Environment
Compliance (p. 128)
• Data protection
Value generated and distributed for stakeholders (p. 162)
Innovation and digitalization (p. 208)
INFRASTRUCTURE AND NETWORKS (p. 188)
Operations
• Distribution grids and electricity transmission
• Average frequency interruptions per customer
• Average duration of interruptions per customer
• Grid losses
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
• Allocate capital to support the supply of
decarbonized electricity (p. 254)
• Enable the electrification of customer energy
demand (p. 254)
• Leverage the creation of value throughout the
value chain (p. 254)
• Achieve sustainable Net-Zero objectives
in advance (p. 254)
2020-2030
As a result of the above strategic lines of action, the
Group’s ordinary EBITDA is expected to increase at
a compound annual growth rate of 5-6%, with the
ordinary profit of the Group expected to increase at
a compound annual rate of 6-7%.
2022-2024
in 2021.
in 2021.
In 2024 the Group’s ordinary EBITDA is forecast to
reach €21-21.6 billion, compared with €19.2 billion
The Group’s ordinary profit is expected to rise to
€6.7-6.9 billion in 2024, compared with €5.6 billion
Enel’s dividend policy for the period remains simple,
predictable and attractive. Shareholders should
receive a fixed dividend per share (“DPS”) that is
expected to increase by 13% between 2021 and
2024, reaching €0.43 per share.
2022
• An acceleration of investments in renewable
energy, especially in Iberia and North America, to
support industrial growth and as part of the Group’s
decarbonization policies.
• An increase in investments in distribution grids,
especially in Italy, with the aim of further improving
service quality and increasing the flexibility and
resilience of the grid.
• An increase in investments dedicated to the
electrification of consumption, with the aim of
leveraging the growth of the customer base, and to
achieving continuous efficiency gains, supported by
the development of global business platforms.
• Ordinary EBITDA is forecast at €19-19.6 billion, with
ordinary net profit of €5.6-5.8 billion.
Enel business
Governance
Group strategy
SDGs
Risk management
Group performance
Outlook
Value creation and
business model
GENERATION AND
TRADING
ENEL GREEN POWER AND
THERMAL GENERATION
&
GLOBAL ENERGY AND
COMMODITY MANAGEMENT
• Enel shareholders (p. 40)
• Corporate boards (p. 42)
• The Enel corporate governance
system (p. 44)
• Enel organizational model (p. 51)
• Incentive system (p. 54)
“THE DECADE
OF ELECTRIFICATION“ (p. 61)
I. Allocate capital to support the
supply of decarbonized electricity
II. Enable the electrification of
customer energy demand
III. Leverage the creation of value
throughout the value chain
• Values and pillars of corporate
ethics (p. 55)
2040
IV. Move forward achievement of
sustainable Net-Zero objectives to
CUSTOMERS
RETAIL
ENEL X
DISTRIBUTION
GLOBAL INFRASTRUCTURE
AND NETWORKS
Value generated and distributed for stakeholders
Innovation and digitalization
ENEL GREEN POWER
Operations
• Net electricity generation
• Net efficient installed capacity
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
THERMAL GENERATION AND TRADING
Operations
• Net electricity generation
• Net efficient installed capacity
Performance
• Revenue from thermal and nuclear generation
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Value generated and distributed for stakeholders
Innovation and digitalization
END-USER MARKETS
Operations
• Sales of electricity
• Sales of natural gas
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Strategic
• Legislative and regulatory
developments
• Macroeconomic and geopolitical
trends
• Risks and strategic opportunities
associated with climate change
• Competitive environment
Financial
• Interest rate
• Commodity
• Currency
• Credit and counterparty
• Liquidity
Digital Technology
• Cyber security
• Digitalization, IT effectiveness and
service continuity
Value generated and distributed for stakeholders
Innovation and digitalization
Operational
• Health and safety
• Environment
• Procurement, logistics and supply
chain
• People and organization
Compliance
• Data protection
ENEL X
Operations
• Demand response
• Lighting points
• Storage
• Charging points
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
Value generated and distributed for stakeholders
Innovation and digitalization
INFRASTRUCTURE AND NETWORKS
Operations
• Distribution grids and electricity transmission
• Average frequency interruptions per customer
• Average duration of interruptions per customer
• Grid losses
Performance
• Revenue
• Ordinary gross operating profit
• Ordinary operating profit
• Capex
• Allocate capital to support the supply of
decarbonized electricity
• Enable the electrification of customer
energy demand
• Leverage the creation of value throughout
the value chain
• Achieve sustainable Net-Zero objectives
in advance
2020-2030
As a result of the above strategic lines of action, the
Group’s ordinary EBITDA is expected to increase at
a compound annual growth rate of 5-6%, with the
ordinary profit of the Group expected to increase at
a compound annual rate of 6-7%.
2022-2024
In 2024 the Group’s ordinary EBITDA is forecast to
reach €21-21.6 billion, compared with €19.2 billion
in 2021.
The Group’s ordinary profit is expected to rise to
€6.7-6.9 billion in 2024, compared with €5.6 billion
in 2021.
Enel’s dividend policy for the period remains simple,
predictable and attractive. Shareholders should
receive a fixed dividend per share (“DPS”) that is
expected to increase by 13% between 2021 and
2024, reaching €0.43 per share.
2022
• An acceleration of investments in renewable
energy, especially in Iberia and North America, to
support industrial growth and as part of the Group’s
decarbonization policies.
• An increase in investments in distribution grids,
especially in Italy, with the aim of further improving
service quality and increasing the flexibility and
resilience of the grid.
• An increase in investments dedicated to the
electrification of consumption, with the aim of
leveraging the growth of the customer base, and to
achieving continuous efficiency gains, supported by
the development of global business platforms.
• Ordinary EBITDA is forecast at €19-19.6 billion, with
ordinary net profit of €5.6-5.8 billion.
Basis of Presentation
19
19
REPORT
ON OPERATIONS
1. Enel
Group
Value creation
and the business model
An integrated representation of how
the Group transforms its resources
into outcomes and value created for
stakeholders, prioritizing the pursuit of
Sustainable Development Goals (SDGs) 7, 9,
11 and 13.
WEF metrics
and the European taxonomy
Clear, transparent and comparable
disclosure through WEF metrics and the
European taxonomy.
Sustainable development
on 5 continents
The Enel Group is present in 47 countries
with more than 1,000 companies.
20
Integrated Annual Report 2021
21
Highlights
22
22
Integrated Annual Report 2021
Revenue
Group
revenue(1) (2)
+33.3%
GROSS OPERATING
PROFIT(2)
ORDINARY GROSS
OPERATING PROFIT(2)
+3.9%
+6.6%
€88,006 million
€66,004 million in 2020
€17,567 million
€16,903 million in 2020
€19,210 million
€18,027 million in 2020
Performance
Group
profit
+22.2%
€3,189 million
€2,610 million in 2020
GROUP ORDINARY
PROFIT
+7.6%
€5,593 million
€5,197 million in 2020
NET FINANCIAL
DEBT
+14.4%
€51,952 million
€45,415 million in 2020
Capital expenditure
Capital expenditure
on property, plant
and equipment and
intangible assets(3)
CASH FLOWS FROM
OPERATING ACTIVITIES
+27.5%
-12.5%
€12,997 million
€10,197 million in 2020
€10,069 million
€11,508 million in 2020
People
Group
employees
-0.7%
“LIFE CHANGING“
INCIDENTS AT ENEL(4)
66,279 employees
66,717 in 2020
1 employee
- in 2020
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
(3) Does not include €111 million regarding units classified as “held for sale” in 2021.
(4)
Injuries whose consequences caused permanent changes in the life of the individual.
Highlights
2323
Business Line
Highlights
Global Power Generation
TOTAL NET EFFICIENT
INSTALLED CAPACITY
+3.7%
87.1 GW
84.0 in 2020
NET ELECTRICITY
GENERATION
+7.5%
222.6 TWh
207.1 in 2020
NET EFFICIENT
INSTALLED RENEWABLES
CAPACITY
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY AS %
OF TOTAL
ADDITIONAL EFFICIENT
INSTALLED RENEWABLES
CAPACITY
+7.3%
57.5 %
53.6 in 2020
+78.0%
5.18 GW
2.91 in 2020
+11.3%
50.1 GW
45.0 in 2020
NET RENEWABLE
ELECTRICITY
GENERATION
+3.2%
108.8 TWh
105.4 in 2020
DIRECT GREENHOUSE GAS
EMISSIONS - SCOPE 1 –
SPECIFIC(1) (2)
+5.1%
227 gCO2eq/kWh
216 in 2020
(1) The figures for 2020 have been modified following the introduction of a new calculation method deriving from the implementation of the Net-Zero project.
(2) Specific emissions are calculated by considering total direct (Scope 1) emissions from total renewable, nuclear and conventional thermal generation includ-
ing the contribution of heat.
24
24
Integrated Annual Report 2021
Global Infrastructure and Networks
END USERS
+1.2%
75,178,777 no.
74,303,931 in 2020
ELECTRICITY DISTRIBUTION
AND TRANSMISSION
GRID
ELECTRICITY
TRANSPORTED ON ENEL’S
DISTRIBUTION GRID
END USERS
WITH ACTIVE
SMART METERS
+0.1%
+5.2%
+1.5%
2,233,368 km(3)
510.3 TWh(3)
44,968,974 no.(3) (4)
2,232,023 in 2020
485.2 in 2020
44,293,483 in 2020
Retail
ELECTRICITY SOLD BY ENEL
RETAIL CUSTOMERS
of which free market
+3.8%
-0.3%
+8.3%
309.4 TWh
298.2 in 2020
69,342,818 no.
24,839,600 no.(3)
69,517,932 in 2020
22,931,809 in 2020
Enel X
STORAGE
+205%
375 MW
123 in 2020
CHARGING POINTS
DEMAND RESPONSE
+49.6%
157,209 no.(3)
105,079 in 2020
+27.7%
7,713 MW
6,038 in 2020
(3) The figure for 2020 reflects a more accurate calculation of the numbers.
(4) Of which 23.5 million second-generation smart meters in 2021 and 18.2 million in 2020.
Business Line Highlights
25
25
World Economic Forum (WEF)
The International Business Council (IBC) of the World Eco-
nomic Forum has produced a report entitled “Measuring
Stakeholder Capitalism: Towards Common Metrics and
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 effec-
tiveness of its actions in pursuing the Sustainable De-
velopment Goals set by the United Nations (SDGs), in the
business model adopted to create value for stakeholders.
The metrics are based on existing standards and seek to
increase convergence and comparability between the var-
ious parameters used today in sustainability reports.
The following table gives the 21 main indicators specified
in the WEF report.
Integrated Annual Report 2021
Pillar
Theme
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
2021
2020 Change
Governing
purpose
Setting purpose
Quality of
governing body
Governance body
composition
Stakeholder
engagement
Material issues
impacting
stakeholder
No. of women on Board
4
4
-
Principles
of Governance
Ethical behavior
Employees with training in
anti-corruption policies and
procedures (%)
30.3
40.0
(9.7)
Confirmed violations for conflict
of interest/corruption (no.)
7
2
Reports received for violations of
Code of Ethics
153
151
5
2
Anti-corruption
Protected
ethics advice
and reporting
mechanisms
Risk and
opportunity
oversight
Integrating risk and
opportunity into
business process
Greenhouse gas
(GHG) emissions
Climate change
Direct greenhouse gas emissions
- Scope 1 (million/teq)
51.6
45.7
5.9
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 3 (million/teq)
4.3
4.1
0.2
7.1
6.9
0.2
69.1
64.9
4.2
Planet
Nature loss
TCFD
implementation
Land use and
ecological
sensitivity
Freshwater
availability
Water
consumption
and withdrawal in
water-stressed
areas
26
26
Integrated Annual Report 2021
Habitat recovery (hectares)
9,092 4,356 4,736
Water withdrawals (millions of m3) 55.6
51.5
4.1
Water withdrawals in water-
stressed areas (%)
27.4
23.3
4.1
Total water consumption (millions
of m3)
26.3
20.4
5.9
Water consumption in water-
stressed areas (%)
33.8
31.6
2.2
Chapter/Section reporting all
KPIs and disclosure on the 21
CORE KPIs of the WEF
Enel is Open Power
“Corporate boards” section in
“Governance” chapter
“Basis of Presentation” chapter
“Values and pillars of corporate
ethics” section in “Governance”
chapter
“Values and pillars of corporate
ethics” section in “Governance”
chapter
“Risk management” section
in “Group Strategy & Risk
Management” chapter
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Performance” chapter
“Governance”, “Group Strategy
& Risk Management”, “Group
Performance” and “Outlook”
chapters
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Performance” chapter
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Performance” chapter
Integrated Annual Report 2021
Pillar
Theme
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
2021
2020 Change
Diversity and
inclusion
Women as proportion of total
employees (%)
22.5
21.5
1.0
Pay equality
Equal Remuneration Ratio (%)
81.1
83.3
(2.2)
Dignity and
equality
Wage level
CEO Pay Ratio (%)(1)
91.0
145.0
(54.0)
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
People
Health and well-
being
Health and safety
Skills for the
future
Training provided
Fatal accidents - Enel (no.)
3
1
2
Frequency of fatal accidents -
Enel (i.)
Life changing accidents - Enel
(no.)
Frequency of life changing
accidents - Enel (i.)
Average hours of training per
employee (hrs/person)
Employee training costs
(millions of euro)
0.024 0.008 0.016
1
-
1
0.008 -
0.008
44.6
40.9
3.7
23
19
4
Absolute number
and rate of
employment
People hired (no.)
5,401 3,131 2,270
Hiring rate (%)
8.1
4.7
3.4
Terminations (no.)
5,862 3,696 2,166
Turnover (%)
8.8
6.0
2.8
Chapter/Section reporting all
KPIs and disclosure on the 21
CORE KPIs of the WEF
“People centricity” section in
“Group Performance” chapter
“People centricity” section in
“Group Performance” chapter
“Values and pillars of corporate
ethics” section in “Governance”
chapter
“People centricity” section in
“Group Performance” chapter
“People centricity” section in
“Group Performance” chapter
“People centricity” section in
“Group Performance” chapter
“Value generated and distributed
for stakeholders” section in
“Group Performance” chapter
“Analysis of the Group’s financial
position and structure” section
in “Group Performance” chapter
Employment
and wealth
generation
Economic
contribution
Prosperity
Financial
investment
contribution
Total investment (millions of euro) 12,997 10,197 2,800
Purchase of treasury shares and
dividends and interim dividends
paid to holders of hybrid bonds
5,054 4,755 299
Consolidated financial
statements
Innovation in
better products
and services
Total R&D
expenses
Investment in R&D (millions of
euro)
130
111
19
Community and
social vitality
Total tax paid
Total tax paid (millions of euro)(2)
4,127 4,260
(133)
“Innovation and digitalization”
section in “Group Performance”
chapter
“Value generated and distributed
for stakeholders” section in
“Group Performance” chapter
(1) Ratio between the total remuneration of the CEO/General Manager of Enel and the average gross annual remuneration of Group employees. The figure for
2020 has been adjusted to take account of 2021 exchange rates.
(2) The amount represents “total tax borne”, which is costs for taxes borne by the Group. For more information, see the 2021 Sustainability Report and the
Consolidated Non-Financial Statement. The 2020 figure has been calculated more accurately.
World Economic Forum (WEF)
27
27
European Union taxonomy
The European taxonomy was adopted by the European
Union with Regulation 2020/852, published in the Official
Journal of the European Union on June 22, 2020 and en-
tered into force on July 12, 2020.
The European taxonomy establishes six environmental ob-
jectives to identify environmentally sustainable economic
activities: climate change mitigation; climate change ad-
aptation; the sustainable use and protection of water and
marine resources; the transition to a circular economy;
pollution prevention and control; and the protection and
restoration of biodiversity and ecosystems. Accordingly, an
economic activity is defined as environmentally sustaina-
ble if:
• it makes a substantive contribution to at least one of
the six environmental objectives;
• it does no significant harm (DNSH) to the other five en-
vironmental objectives;
• it meets minimum safeguards.
The European taxonomy provides a standardized, sci-
ence-based classification system to identify environmen-
tally sustainable economic activities and thus acts as an
important enabler to promote sustainable investment and
accelerate the decarbonization of the European economy,
while at the same time creating security and transparen-
cy for investors and supporting businesses in planning the
Net Zero transition.
Although the taxonomy regulation establishes an obliga-
tion for undertakings to declare compliance with the tax-
onomy from January 2022, Enel has positioned itself as
leader and elected to announce implementation in the
previous 2020 Sustainability Report and the Integrated
Annual Report 2020 as well as during the 2020 and 2021
Capital Markets Days.
EU taxonomy reporting pursuant to the regulation and the
delegated act is provided in full in the 2021 Sustainability
Report - Non-Financial Statement pursuant to Regulation
(EU) 2020/852.
The European taxonomy implementation process at Enel
1
2
Identification of
eligible economic
activities
Analysis
of substantial
contribution
3
Assessment of the
principle of Do No
Significant Harm
(DNSH) to other
environmental
objectives
4
Verification of
minimum social
safeguards
5
Calculation
of financial
metrics
Through a process overseen by the CEO and top manage-
ment, involving the competent functions at the company
and country level as well as all Business Lines, five steps
have been identified to analyze the applicability of the Eu-
ropean taxonomy along the entire value chain in all coun-
tries in which the Group operates.
1. Identification of eligible economic activities: all the ac-
tivities within the Group’s portfolio included in the Cli-
mate Delegated Act have been identified. The process
only considered the climate change mitigation objec-
tive as it is the most material objective in consideration
of the Enel Group’s business model and the sector in
which we operate.
2. Analysis of substantial contribution: the eligible activi-
ties identified in the previous phase were carefully ana-
lyzed to verify their compliance with the specific tech-
28
28
Integrated Annual Report 2021
nical criteria established to measure their substantial
contribution to climate change mitigation. The analysis
was conducted following the criteria contained in the
Climate Delegated Act, namely:
– technology screening for electricity generation. The
threshold of 100 gCO2eq/kWh measured on a life-cy-
cle basis was complied with as follows:
• coal and liquid fossil fuels: technology non included
in the European taxonomy;
• gas and nuclear: on February 2, 2022, the European
Commission approved in principle a Complementa-
ry Delegated Act on climate which includes, under
strict conditions, activities related to nuclear energy
and gas in the list of economic activities covered
by the European taxonomy. At the time of publica-
tion of this Report, the Complementary Delegated
Act is going through the approval process with the
European Parliament and the Council. In these cir-
cumstances, the legislation is not yet finalized and
therefore the production of electricity from gas and
nuclear activities has been considered as “non-eli-
gible”;
• wind, solar and energy storage: these activities are
exempt from the verification of the carbon intensi-
ty threshold due to their substantial contribution to
climate change mitigation;
• hydroelectric energy: the carbon intensity thresh-
old was verified only for those plants whose power
density is less than 5 W/m2. All plants with power
densities greater than 5W/m2 as well as run-of-the-
river plants and pumping facilities are exempt from
verification of the threshold;
• geothermal: the threshold was verified by carrying
out life-cycle emissions assessments certified by
independent third parties;
– geographical and system level screening for electric-
ity transmission and distribution. For the purposes of
classifying activities as eligible, compliance with one
of the following technical screening criteria was ver-
ified in all eight countries wherein which Enel distrib-
utes electricity:
• the distribution system operator (DSO) is the Euro-
pean interconnected system;
• the non-European DSO operates a system in which
more than 67% of newly enabled generation capac-
ity is below the threshold value of 100 gCO2eq/kWh
measured on a life-cycle basis in the 2016-2020
period;
• the average emissions factor of the non-European
DSO network is below the threshold value of 100
gCO2eq/kWh measured on a life-cycle basis in ac-
cordance with electricity generation criteria in the
2016-2020 period.
Infrastructure constructed in 2021 and dedicated to
the creation of a direct connection or expanding an
existing direct connection between a substation or
network and a power production plant that is more
greenhouse gas
intensive than 100 gCO2eq/kWh
measured on a life-cycle basis has been identified and
excluded from the aligned activities of the DSOs;
– product cluster screening for the Enel X Business Line.
A complete analysis of the Enel X portfolio was con-
ducted, classifying the eligible activities in the sectors
identified in the Climate Delegated Act, such as con-
struction and real estate, transport or professional,
scientific and technical activities;
– provisioning screening for retail electricity activities.
The amount of power sold by electricity sales com-
panies in Italy and Spain supported by Certificates of
Origin was calculated and considered to be aligned
with the European taxonomy due to its compliance
with the technical screening criteria established in the
Climate Delegated Act for electricity generation.
3. Analysis of compliance with the principle of not caus-
ing significant harm to other objectives (Do No Sig-
nificant Harm - DNSH): an analysis of existing environ-
mental procedures was performed to verify compliance
with the DNSH quality criteria for each technology (for
power generation activities), region (for transmission
and distribution activities) and product cluster (for the
activities of the Enel X Business Line), adapted to the
specific requirements envisaged for each environmen-
tal objective.
4. Due diligence assessment of compliance with min-
imum social guarantees: we verified that the due dili-
gence process for the Group’s human rights assessments
includes the entire Enel Group.
5. Calculation of financial metrics: the corresponding fi-
nancial metrics were associated with each economic
activity in accordance with the classification performed
in steps 1-4, as described in the “Statement on the
alignment of Enel’s business with the European taxono-
my” section of the “Group Performance” chapter.
Using this process, Enel has classified all the economic ac-
tivities along its value chain in the following three catego-
ries: eligible-aligned, eligible-not aligned, non-eligible.
Eligible-aligned: this refers to an economic activity that si-
multaneously meets the following three conditions:
• it is explicitly included in the European taxonomy regu-
lation for its substantial contribution to climate change
mitigation;
• it meets the specific criteria in the European taxonomy
regulation for this specific environmental objective;
• it meets all DNSH criteria and minimum protection guar-
antees.
European Union taxonomy
29
29
Eligible-not aligned: this refers to an economic activity
that:
• is explicitly included in the European taxonomy regula-
tion for its substantial contribution to climate change
mitigation or adaptation; but
• it does not meet the specific criteria in the European
taxonomy regulation for these specific environmental
objectives; or
• it does not meet at least one of the DNSH conditions
and/or the minimum protection guarantees.
Not eligible: this refers to an economic activity that has not
been identified by the European taxonomy as a substantial
contributor to climate change mitigation and, therefore,
no criteria have been developed. The rationale of the Euro-
pean Commission is that these activities may:
• not have a significant impact on climate change mitiga-
tion or may be integrated into the European taxonomy
regulation at a later stage;
• have a very significant impact on climate change miti-
gation, so they may not be eligible in any case;
• be awaiting a definitive resolution of the European au-
thorities regarding their classification (nuclear and gas).
Eligibility of Enel activities
In 2021, Enel’s eligibility analysis was updated in accord-
ance with the process delineated above and the new
definition for the three categories described above and
pursuant to the final version of the Climate Delegated Act
published in the Official Journal of the European Union in
December 2021.
European
taxonomy
Eligible
Aligned
Non-aligned
Not eligible
Mapping in
accordance
with Climate
Delegated Act
• Solar and wind
• Hydro (99.5%)
• Geothermal
• RES Storage
Distribution in Europe,
Brazil, Chile, Peru and
Colombia without new
connections to generation
plant over threshold of
100 gCO2eq/kWh
Smart Lighting, e-Bus,
Energy Efficiency, Home,
Vivi Meglio Unifamiliare,
Condominium, Customer
Insight, Distributed Energy,
e-Mobility, Battery Energy
Storage
Retail sale of power in Italy
and Spain with Certificates
of Origin
Hydro (0.5%)
Trading
• New connections
between subscriber or
grid and a generation
plant with greenhouse
gas intensity over
threshold of
100 gCO2eq/kWh
• Distribution in
Argentina
Retail sale of power
without Certificates of
Origin
Sale of gas
to end users
Finanical services,
hardware and software,
insurance and other
general services
Coal and liquid
fossil fuels
• Nuclear
• Gas
TBD
TBD
Pending approval of Complementary
Delegated Act. To be considered not
eligible until approval.
30
30
Integrated Annual Report 2021
Value creation and the business
model
The value creation process
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. Environmental, social and economic aspects are
increasingly significant in terms of assessing the ability to
create value for all categories of stakeholders.
The following graphical representation summarizes the
value chain of the Enel Group with the main inputs used
and how they are transformed into outcomes and value
created for stakeholders by the Group’s organization and
the business model in the short term. For more on the me-
dium/long-term impacts, please see the Sustainability Re-
port. The Group is characterized by sound and transparent
governance and a sustainable strategy that prioritizes the
pursuit of Sustainable Development Goals (SDGs) 7, 9, 11
and 13. These SDGs are thus the objectives of the Group’s
strategic action and are translated into the creation of val-
ue for the Group itself and for its stakeholders.
Value creation and the business model
31
31
Value creation and the business model
Our resources
Our business model
||GOVERNANCE
GOVERNANCE|
|
Planet
55.6 million m3 Total water
withdrawals
27.4% Water withdrawals
in water-stressed areas
26.3 Total direct consumption
of fuel in mtoe
People
66,279 Enel employees
22.5% Women as proportion of total
employees
4,163 Women in management
positions
170,421 Contractor personnel (FTE)
Prosperity
€51,952 million Net financial
debt
€42,342 million Equity
€12,997 million Capital
expenditure(1)
€18,070 million Intangible assets
€11,636 million Concessions
€84,572 million Property, plant
and equipment
87.1 GW Total net efficient installed
capacity
50.1 GW Net efficient installed
renewables capacity
2.2 million km Electricity
distribution grid
45.0 million End users with active
smart meters
75.2 million End users
69.3 million Retail customers
157.2 thousand Total charging
points
T ||
T
N
N
E
E
M
M
N
N
Purpose
OPEN POWER FOR
A BRIGHTER FUTURE
WE EMPOWER
SUSTAINABLE PROGRESS
TERNAL EN VIR O
TERNAL EN VIR O
X
X
||||E
E
Values
ENEL’S VALUES
TRUST
PROACTIVITY
Strategic pillars
Value chain
G
E
N
E
R
A
T
I
O
N
••
S
S
E
E
I
I
T
T
I
I
N
N
U
U
T
T
R
R
O
O
P
P
P
P
O
O
D
D
N
N
A
A
S
S
K
K
S
S
I
I
R
R
••
D
I
S
T
RIBUTION
||
G
G
R
R
O
O
U
U
P
P
P
P
E
E
R
R
F
F
O
O
R
R
M
M
A
A
N
N
C
C
E
E
|
|
G
G
R
R
O
O
U
U
P
P
S
S
T
T
R
R
A
A
T
T
E
E
G
G
Y
Y
A
A
N
N
D
D
R
R
I
I
S
S
K
K
M
M
A
A
N
N
A
A
G
G
E
E
M
M
E
E
N
N
T
T
||
K
K
O
O
||O UTLO
O UTLO
S
R
E
M
O
T
S
U
C
G
T R A D I N
Principles of Governance
44% Women on Board of Directors
153 Reported Code of Ethics incidents (of which 41 found to be violations)
(1) Does not include €111 million regarding units classified as “held for sale”.
32
32
Integrated Annual Report 2021
Value created for Enel and our stakeholders
Outcomes
Impacts
||GOVERNANCE
GOVERNANCE |
|
IS OPEN POWER
Vision
Open Power
to tackle
some of the
world’s biggest
challenges.
|
|
G
G
Mission
• Open access to electricity
R
R
O
O
U
U
P
P
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.
S
S
T
T
R
R
T ||
T
N
N
E
E
M
M
N
N
EN VIR O
EN VIR O
TERNAL
TERNAL
X
X
E
||||E
••
S
S
E
E
I
I
T
T
I
I
N
N
U
U
T
T
R
R
O
O
P
P
P
P
O
O
D
D
N
N
A
A
S
S
K
K
S
S
I
I
R
R
••
||
G
G
R
R
O
O
U
U
P
P
P
P
E
E
R
R
F
F
O
O
R
R
M
M
A
A
N
N
C
C
E
E
RESPONSIBILITY
INNOVATION
1.
Allocate capital
to support
the supply of
decarbonized
electricity
2.
Enable the
electrification
of customer
energy
demand
3.
Leverage
the creation
of value
throughout
the value chain
G
E
N
E
R
A
T
I
O
N
S
R
E
M
O
T
S
U
C
D
I
S
T
RIBUTION
G
T R A D I N
A
A
T
T
E
E
G
G
Y
Y
A
A
N
N
D
D
R
R
I
I
S
S
K
K
4.
Move forward
achievement of
sustainable Net-
Zero objectives
to 2040
M
M
A
A
N
N
A
A
G
G
E
E
M
M
E
E
N
N
T
T
|
|
K
K
O
O
O UTLO
||O UTLO
6
12
13 14
15
2
4
8
1
3
5
10
7
9
11
Planet
227 gCO2eq/kWh Direct greenhouse
gas emissions - Scope 1
125 million tCO2eq Scopes 1, 2, 3(2)
26.3 million m3 Total water
consumption
33.8% Water consumption in
water-stressed areas
9,092 Hectares of habitat recovered
People
44.6 hours of training (average hours
per employee)
8.8% Turnover
1.264 i. Injury frequency rate - Enel
3.521 i. Injury frequency rate
- Contractors
19.9 million beneficiaries (SDG 4, 7 and
8 projects)
Prosperity
€88,006 million Revenue
€19,210 million Ordinary EBITDA
68.7% Ordinary EBITDA of business
activities aligned with European taxonomy
as % of Group total
€4,127 million Total tax borne
€5,054 million Purchase of treasury
shares and dividends distributed
3.5% Cost of debt
0.38 (€/sh) Fixed DPS
510.3 TWh Electricity transported
309.4 TWh Electricity sold
5.18 GW Additional efficient installed
renewables capacity
48.9% Renewables generation as % of
Group total
52.1 thousand Public and private
charging points installed in 2021
243.3 min. SAIDI
892 Patent applications filed, of which
749 granted
41 Partnership agreements
for innovation
16 17
(2) Only location-based Scope 2 was considered for Scope 2.
Value creation and the business model
33
33
Business model
Enel’s business model has been structured so as to Group’s
strategic objectives, including the commitments made by
the Group in the fight against climate change.
The business model delineates how the organizational units
of the Company, linked to our three main businesses (gen-
eration, distribution and sales), must work to reap all the
possible benefits from the main trends in the sector, possi-
bly accelerating their implementation as well.
The role defined for all the major organizational units is also
intended to enable them to effectively address all the risks
posed by developments in the rapidly changing energy in-
dustry.
In order to fully benefit from all the opportunities emerging
in the market environment in which it operates, the Group
has identified two different business models (Ownership
and Stewardship) that it can use to achieve the ambitions
we have defined. The most appropriate and effective busi-
ness model is selected depending on the geographical area
and operating environment involved:
• the Ownership business model, in which the Group
makes direct investments in renewables, grids and cus-
tomers. This model is employed in countries where the
entire value chain can already be leveraged, from gen-
eration to integration with end user. These are defined
as “Tier 1” countries, such as Italy, Spain and Romania in
Europe and the United States, Brazil, Chile, Colombia and
Peru in the Americas. The central role of our customers in
the Group’s business model makes the integrated margin
a pillar of our Plan. This is the margin from the sale of
power generated and purchased, the correct manage-
ment of which requires the joint optimization of both
sales of power, considering the different options availa-
ble in the countries in which we operate, and provision-
ing, which is linked to our generation rather than to the
different sourcing options;
• the Stewardship business model, in which the Group in-
vests capital in existing or new joint ventures or acquires
minority stakes, with a view to maximizing the value of the
know-how developed in the various businesses in which
it operates. This is achieved through the delivery of spe-
cific contractual services to partners or the subsequent
monetization of these investments on the market. This
model focuses mainly, but not exclusively, on “non-Tier 1”
countries, where the Group’s presence is not integrated
and it seeks to build partnerships with third parties to ex-
plore new geographical areas or to leverage the Group’s
operational experience in alternative environments.
In this design, each country organization acts within its ter-
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 lo-
cal communication. The current mission of each business
can be summarized as follows:
• Enel Green Power and Thermal Generation: the Group operates through this Business Line to
accelerate the energy transition, continuing to increase investments in new renewable energy
capacity, and manages the decarbonization of its generation mix and the countries in which it
operates, always aiming to ensure the safety and capacity of electrical systems.
Generation
• Global Energy and Commodity Management: this Business Line manages our integrated
margin as a single portfolio in which Generation and Retail operations are always balanced
effectively. In addition, the Line manages all trading operations on international desks.
Trading
34
34
Integrated Annual Report 2021
Distribution
• Global Infrastructure and Networks: in developing and operating infrastructure that enables
the energy transition, the Group ensures the reliability in the supply of energy and the quality
of service to communities through resilient and flexible networks, leveraging efficiency,
technology and digital innovation, and ensuring appropriate returns on investment and cash
generation.
Customers
• Global Retail: through its sales relationships with end users, the Group interacts locally with
millions of families and companies. Thanks to our technology, the platform model enables
us to improve customer satisfaction and the customer experience, while at the same time
achieving ever higher levels of efficiency. The business units optimize the supply of power to
their customer base, maximizing the value generated by that resource and fostering long-
term relationships with customers.
• Enel X: this Business Line is enabling the energy transition by acting as an accelerator for the
electrification and decarbonization of customers, helping them to use energy more efficiently,
driving circularity and leveraging the assets of the Enel Group through the delivery of innova-
tive beyond-commodity services.
In 2021, the Enel X Global Retail and Global e-Mobility Busi-
ness Lines were formed but will only begin operations from
2022.
Enel X Global Retail is involved in managing energy and be-
yond-commodity services, as well as expanding the cus-
tomer base while maximizing value for customers, innovat-
ing and developing the services offered and managing the
entire life cycle.
Global e-Mobility is responsible for managing the portfo-
lio of e-Mobility solutions in both existing and new coun-
tries, maximizing value for customers and leveraging Enel
X Global Retail for sales activities. It is also involved in inno-
vating and developing e-Mobility solutions, managing the
entire life cycle.
By exploiting the synergies between the different busi-
ness areas, implementing actions through the lever of
innovation and deploying Open Power approaches, the
Enel Group seeks to develop solutions to reduce environ-
mental impact, meet the needs of customers and the local
communities in which it operates and ensure high safety
standards for employees and suppliers.
Value creation and the business model
3535
Enel around the world
The Enel Group has a presence in 47 countries on multiple
continents around the world, with more than 1,000 sub-
sidiaries.
The following map shows the distribution of the Enel Group
across the globe.
Presence 47 countries
more than
1,000 subsidiaries
36
36
Integrated Annual Report 2021
Enel around the world
37
37
REPORT
ON OPERATIONS
2.
Governance
Corporate governance system focused on
achieving sustainable success.
Governance model compliant with
international best practice.
Transparency and integrity its fundamental
values.
38
Integrated Annual Report 2021
39
Enel shareholders
At December 31, 2021, the fully subscribed and paid-up
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 compared
with that registered at December 31, 2020. In 2021 the
Company purchased a total of 1,620,000 treasury shares
to support the 2021 Long-Term Incentive Plan (LTI Plan) for
the management of Enel and/or its subsidiaries pursuant
to Article 2359 of the Italian Civil Code. Considering the
number of treasury shares already owned, Enel SpA holds
a total of 4,889,152 treasury shares, all supporting the
2019, 2020 and 2021 LTI Plans.
Significant shareholders
At December 31, 2021, based on the shareholders register
and the notices submitted to CONSOB and received by the
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
Economy and Finance (with a 23.585% stake), BlackRock
Inc. (with a stake of 5.000% held for asset management
purposes) and Capital Research and Management Com-
pany (with a 5.000% stake held for asset management pur-
poses).
Composition of shareholder base
Since 1999, Enel has been listed on the Euronext Milan
market (formerly the Mercato Telematico Azionario) organ-
ized and operated by Borsa Italiana SpA. Enel’s sharehold-
ers include leading international investment funds, insur-
ance companies, pension funds and ethical funds.
40
40
Integrated Annual Report 2021
Composition of shareholder
base at December 2021
23.6%
Ministry for the Economy
and Finance
17.0%
Retail
investors
100%
59.4%
Institutional
investors
With regard to Environmental, Social and Governance
(ESG) investors in Enel, at December 31, 2021, socially re-
sponsible investors (SRIs) held around 14.6% of the share
capital (in line with December 31, 2020), while investors
who have signed the Principles for Responsible Investment
represent 46.6% of the share capital (compared with 47.8%
at December 31, 2020).
Enel shareholders
41
41
Corporate boards
Board of Directors
CHAIRMAN
Michele Crisostomo
CHIEF EXECUTIVE OFFICER
AND GENERAL MANAGER
Francesco Starace
SECRETARY
Silvia Alessandra Fappani
DIRECTORS
Cesare Calari
Costanza Esclapon de Villeneuve
Samuel Leupold
Alberto Marchi
Mariana Mazzucato
Mirella Pellegrini
Anna Chiara Svelto
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
42
42
Integrated Annual Report 2021
Composition
of the Board
of Directors
1 executive director
1 in 2020
8 non-executive directors
8 in 2020
of which 8 independent(1)
7 in 2020
>50
89 %
AGE
30-50
11%
<30
0%
2021
EXPERTISE
Energy industry
3
1
Legal and corporate governance
3
1
Strategic vision
4
1
Communication and marketing
1
1
GENDER
55.6% 44.4%
55.6% in 2020
44.4% in 2020
5
Men
5 in 2020
4
Women
4 in 2020
9
9
9
9
Accounting, finance and risk management
1
International experience
1
5
6
9
9
(1) The figures for 2020 refer to directors qualifying as independent pursuant to the Corporate Governance Code for Italian listed companies (2018 edition).
The figures for 2021 refer to directors qualifying as independent pursuant to the Italian Corporate Governance Code (2020 edition).
Corporate boards
43
43
The Enel corporate governance system
The corporate governance system of Enel SpA is compli-
ant with the principles set forth in the January 2020 edi-
tion of the Italian Corporate Governance Code,(2) adopted
by the Company, and with international best practice. The
corporate governance system adopted by Enel and its
Group is essentially aimed at achieving sustainable suc-
cess, as it is aimed at creating value for the shareholders
over the long term, taking into account the environmental
and 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:
Shareholders’
Meeting
Audit Firm
KPMG SpA
Board
of Directors
Board of
Statutory Auditors
Control and Risk
Committee
Nomination and
Compensation
Committee
Corporate
Governance and
Sustainability
Committee
Related Parties
Committee
(2) Available from the website of Borsa Italiana (at https://www.borsaitaliana.it/comitato-corporate-governance/codice/2020.pdf).
44
44
Integrated Annual Report 2021
Shareholders’
Meeting
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 Stat-
utory Auditors and their compensation and undertaking any stockholder actions;
• the approval of the financial statements and the allocation of profit;
• 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 2021, in 8 of
which it addressed
issues connected
with climate and
their impact on
strategies and
the associated
approaches to
implementation
• It is vested by the bylaws with the broadest powers for the ordinary and extraordinary manage-
ment of the Company and has the power to carry out all the actions it deems advisable to imple-
ment and achieve the corporate purpose.
• It plays a central role in corporate governance, hold powers for strategic and organizational guid-
ance and control of the Company and the Group, whose sustainable success it pursues. In this
context, it examines and approves corporate strategy, including the annual budget and Business
Plan (which incorporate the main objectives and planned actions, including with regard to sustain-
ability,(3) to lead the energy transition and tackle climate change), taking account of the analysis of
key issues for the generation of long-term value and therefore promoting a sustainable business
model.
• It performs a policy-setting role and provides an assessment of the adequacy of the internal con-
trol and risk management system (the ICRMS). More specifically, it determines the nature and
level of risk compatible with the strategic objectives of the Company and the Group, incorporat-
ing in its assessments all factors that could be relevant to achieving the sustainable success of
the Company. The ICRMS consists of the set of rules, procedures and organizational structures
designed to enable the identification, measurement, management and monitoring of the main
business risks to which the Group is exposed. These include 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.
• It determines the remuneration policy for directors, statutory auditors and key management per-
sonnel with a view to pursuing the Company’s sustainable success, taking due account of the
need to have, retain and motivate people with the skills and expertise required by the positions
they hold, submitting this policy for approval by the Shareholders’ Meeting.
• Activities performed in 2021 included addressing climate-related issues on the occasion of: (i) the
examination and approval of the Business Plan of the Company and the Group; (ii) the updating
of the Code of Ethics and the Human Rights Policy; (iii) the determination of Enel’s remuneration
policy for 2021; (iv) the examination of the 2020 Sustainability Report, which incorporates the Con-
solidated Non-Financial Statement pursuant to Legislative Decree 254/2016 for the same year. In
addition, it discussed climate-related issues as part of the analysis of proposed legislation and in
its engagement with investors.
• With regard to enhancing gender diversity, it agreed on the introduction of a new performance
objective in the 2021 Long-Term Incentive Plan, represented by the percentage of women in man-
agement succession plans at the end of 2023.
• Finally, the Board of Directors receives regular updates on the impact of the COVID-19 pandemic
and safety-related issues in the countries in which the Group operates, as well as information on
developments in and the substance of the various forms of investor engagement.
(3) 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.
The Enel corporate governance system
45
45
In compliance with the provisions of the Italian Civil Code,
the Board of Directors has delegated part of its manage-
ment duties to the Chief Executive Officer and, in accord-
ance with the recommendations of the Corporate Gov-
ernance Code and the provisions of the applicable CON-
SOB regulations, has appointed the following committees
from among its members to provide recommendations
and advice.
Corporate
Governance and
Sustainability
Committee
5
meetings held by
the Committee
in 2021, 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
17
meetings held by
the Committee
in 2021, 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 in 2021 it was composed of the
Chairman of the Board of Directors and two other directors, all of whom met independence
requirements.
• 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 materiality matrix, which specifies the priority themes for stakeholders in the light
of the Group’s business strategies;
– the approach to implementing the sustainability policy;
– the general approach and the structure of the content of the Non-Financial Statement and
the Sustainability Report – which may be presented in a single document – and the com-
prehensiveness and transparency of the disclosures they provide, including with regard
to climate change, and their consistency with the principles envisaged in the reporting
standard adopted, issuing a prior opinion to the Board of Directors, which is called upon to
approve those documents.
• Activities performed in 2021 included addressing climate-related issues on the occasion of the
examination of: (i) the 2020 Sustainability Report, which incorporates the Consolidated Non-Fi-
nancial Statement pursuant to Legislative Decree 254/2016 for the same year; (ii) the materiality
analysis and the guidelines of the 2022-2024 Sustainability Plan; (iii) the proposed update of
the Human Rights Policy; (iv) updates on the main sustainability activities performed by the Enel
Group in 2021, on the state of implementation of the 2021-2023 Sustainability Plan and on the
inclusion of Enel in the main sustainability indices.
• It is composed of non-executive directors, the majority of whom (including its Chairman) are
independent. In 2021 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 (the ICRMS), as well as those relating to
the approval of periodic financial and non-financial reports. In particular, it issues its prior
opinion to the Board of Directors, inter alia: (i) on the guidelines of the ICRMS, so that the main
risks concerning Enel and its subsidiaries – including the various risks that may be relevant
from the perspective of sustainable success – are correctly identified and adequately meas-
ured, managed and monitored; (ii) on the degree of compatibility of the risks referred to in
point (i) above with company operations consistent with the strategic objectives identified;
and (iii) on the adequacy of the ICRMS with respect to the characteristics of the Company and
the risk profile assumed, as well as the effectiveness of the system itself.
• It evaluates whether periodic financial and non-financial reporting correctly represents the
business model, the strategies of the Company and the Group it heads and the impact of
company activities and the performance achieved, coordinating with the Corporate Govern-
ance and Sustainability Committee with regard to periodic non-financial reporting.
• It examines the issues relevant to the ICRMS addressed in the Non-Financial Statement and
the Sustainability Report, which may be presented in a single document and contains corpo-
rate disclosures on climate issues, issuing a prior opinion on these aspects to the Board of
Directors, which is called upon to approve these documents.
• Activities performed in 2021 included addressing climate-related issues on the occasion of
the examination of: (i) issues concerning the ICRMS dealt with in the 2020 Sustainability Re-
46
46
Integrated Annual Report 2021
Nomination and
Compensation
Committee
12
meetings held
in 2021
port, which incorporates the Consolidated Non-Financial Statement pursuant to Legislative
Decree 254/2016 for the same year; (ii) the analysis of the risks associated with macroeco-
nomic and environmental developments and climate risks; (iii) the proposed update of the
Human Rights Policy; and (iv) the analysis of the compatibility of the main risks associated with
the strategic objectives of the Business Plan.
• It is composed of non-executive directors, the majority of whom (including its Chairman) are
independent. In 2021 it was made up of four independent directors.
• It supports the Board of Directors in, inter alia, evaluations and decisions relating to the size
and optimal composition of the Board and its committees, as well as the remuneration of
directors and key management personnel. In this regard, the remuneration policy for 2021
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 objectives. In particular, with regard to the long-term vari-
able component of the remuneration of the Chief Executive Officer/General Manager and key
management personnel, in the 2021 Long-Term Incentive Plan, an additional ESG target was
introduced, represented by the percentage of women in management succession plans at
the end of 2023. With specific regard to the fight against climate change, the Plan retains the
objective for the ratio between consolidated net installed renewables capacity and the total
consolidated net installed capacity, albeit with a slightly smaller weighting compared with the
2020 Long-Term Incentive Plan as a result of the addition of the objective indicated above.
Furthermore, the 2021 Long-Term Incentive Plan also retains the reduction of specific green-
house gas emissions among the performance objectives, in line with the Group’s decarbon-
ization strategy, which provides for the progressive reduction of such 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 improve-
ment of safety parameters in the workplace was retained in the remuneration policy for 2021.
Furthermore, in light of the central role played by distribution grids in the pursuit of decar-
bonization and the electrification of energy consumption by the Group, a new performance
target was introduced that measures the average annual duration of service interruptions for
low-voltage customers (System Average Interruption Duration Index - SAIDI).
Related Parties
Committee
7
meetings held
in 2021
• It is composed of independent non-executive directors. In 2021 it was made up of four inde-
pendent 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
comprehensive information on the transaction.
The Enel corporate governance system
47
47
Board of
Statutory
Auditors
28
meetings held
in 2021
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 in-
dependence of the Audit Firm;
• the approach adopted in implementing the corporate governance rules envisaged by the
Corporate Governance Code.
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.
• The Chairman presides over Shareholders’ Meetings.
• The Chairman convenes the meetings of the Board of Directors, establishes the agenda and
presides over its proceedings.
• The Chairman acts as a liaison between the executive directors and the non-executive di-
rectors and, with the support of the Secretary of the Board of Directors, is responsible for
the effective operation of the Board. More specifically, the Chairman, with the support of the
Board Secretary, is responsible, among other things, for ensuring:
– that information provided before Board meetings and supplementary information provid-
ed during meetings enable the directors to act in an informed manner in the performance
of their duties; and
– that the activity of the Board committees is coordinated with that of the Board of Directors.
• The Chairman ensures that the Board of Directors is informed in a timely manner on develop-
ments in and the substance of engagement activities with all shareholders.
• The Chairman 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 2021 the Chairman also chaired the Corporate Governance and Sustaina-
bility 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 reso-
lution 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 (making the Chief Executive Officer the officer with prima-
ry responsibility for managing the Company).
• In the exercise of these powers, the CEO has defined a sustainable business model, deline-
ating a strategy to lead the energy transition towards a low-carbon model. The CEO is also
responsible 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 ad-
dress climate change.
• The CEO represents Enel in various initiatives that deal with sustainability, holding positions
of leadership in international institutions such as Sustainable Energy for All (SEforALL) of the
United Nations and the Global Investors for Sustainable Development (GISD) Alliance launched
by the United Nations in 2019.
48
48
Integrated Annual Report 2021
• As the officer with primary responsibility for managing the Company, the CEO has primary
authority for engaging with institutional investors, providing them with any appropriate clar-
ification concerning matters that fall within the scope of the CEO's management powers, in
line with the policy for engaging with institutional investors and with Enel’s shareholders and
bondholders as a whole.
• The CEO has also been designated as the director responsible for establishing and maintain-
ing the ICRMS.
Statutory audit of
the accounts
• The statutory audit 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 propos-
al from the Board of Statutory Auditors.
Good corporate
governance
practices
• Following up on the comprehensive induction program organized in 2020 in order to provide
the directors with an understanding of the sectors in which the Group operates (including
issues related to sustainability), in 2021 this program continued with specific examination of
corporate governance and climate change issues.
• At the end of 2021 and during the first two months of 2022, 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 advanced 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 Auditors. The board review also specifically
sought to verify the directors’ perception of: (i) training activities performed in 2021 within the
induction program concerning climate change issues; and (ii) the Board’s involvement with
sustainability issues and the integration of sustainability into corporate strategy. The findings
of the board review are reported in Enel’s Report on Corporate Governance and Ownership
Structure.
• 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 con-
sidered optimal 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 qual-
ified points of view, able to examine the issues under discussion from different perspectives.
The policy approved by the Board 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, ensur-
ing that at least one-third of directors should have adequate experience in the internation-
al 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;
The Enel corporate governance system
49
49
– in view of the differences in their roles, the Chairman and the CEO should have the ap-
propriate skills (specifically indicated in the policy) for the effective performance of their
respective duties.
• 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 subsidiaries with shares listed on regulated markets and at the same time ensuring the
implementation of local best practices in this area by those companies. Among other issues,
these recommendations concern the composition 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.
• In order to regulate the procedures for the Company’s engagement with institutional in-
vestors and with its shareholders and bondholders as a whole, in March 2021 the Board of
Directors adopted, acting on a proposal from the Chairman formulated in agreement with
the Chief Executive Officer, a specific policy in this area (the “Engagement Policy”). It largely
incorporates the practices already followed by Enel to ensure that this dialogue is based on
principles of fairness and transparency and takes place in compliance with EU and nation-
al regulations concerning market abuse, as well as in line with international best practices.
In drawing up the Engagement Policy, which was consistently applied during 2021, the best
practices adopted in this field by institutional investors and reflected in “stewardship” codes
were taken into account.
For more detailed information on the corporate govern-
ance system, please see the Report on Corporate Gov-
ernance and Ownership Structure of Enel, which has been
published on the Company’s website (http://www.enel.com,
in the “Governance” section).
50
50
Integrated Annual Report 2021
Enel organizational model
Enel Group Chairman
Enel Group CEO
M. Crisostomo
F. Starace
Holding
Function
ADMINISTRATION, FINANCE AND CONTROL
A. De Paoli
PEOPLE AND ORGANIZATION
G. Stratta
COMMUNICATIONS
R. Deambrogio
INNOVABILITY
E. Ciorra
LEGAL AND CORPORATE AFFAIRS
G. Fazio
AUDIT
S. Fiori
GLOBAL PROCUREMENT
F. Di Carlo
GLOBAL CUSTOMER OPERATIONS
N. Melchiotti
GLOBAL DIGITAL SOLUTIONS
C. Bozzoli
Global
Business Line
Global
lnfrastructure
and Networks
Global
Energy and
Commodity
Management
Enel
Green Power
and Thermal
Generation
Enel X
Global Retail
Global
e-Mobility
A. Cammisecra
C. Machetti
S. Bernabei
F. Venturini
E. Ripa
Country
and Region
ITALY
N. Lanzetta
IBERIA
J. Bogas Galvez
EUROPE
S. Mori
AFRICA, ASIA AND OCEANIA
S. Bernabei
NORTH AMERICA
E. Viale
LATIN AMERICA
M. Bezzeccheri
Enel organizational model
51
51
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 performance and the return on capital employed in the various geographical areas in
which the Group operates. In addition, in compliance with safety, protection and environmen-
tal policies and regulations, they are tasked with maximizing the efficiency of the processes
they manage and applying best international practices, sharing responsibility for EBITDA, cash
flows and revenue with the countries.
The Group, which also draws on the work of an Investment Committee,(4) benefits from a cen-
tralized 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. Furthermore, 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 compe-
tence.
In 2021 the Global Power Generation Business Line, created from the merger of Enel Green
Power and Global Thermal Generation, was renamed Enel Green Power and Thermal Genera-
tion. This Business Line is responsible for the integrated management of the growth of renew-
ables generation capacity, the decarbonization process and managing storage assets, thus
confirming the Enel Group’s leadership role in the energy transition.
In 2021, the Enel X Global Retail Business Line was formed. It is specifically involved in manag-
ing energy and beyond-commodity services, as well as expanding the customer base while
maximizing value for customers. Furthermore, it has the task of innovating and developing the
services offered, managing the entire life cycle from conception to technological develop-
ment, testing, marketing, sales, operations and after-sales activities.
The Global e-Mobility Business Line was also established in 2021. It is responsible for manag-
ing the portfolio of e-Mobility solutions in both existing and new countries, maximizing value
for customers, also leveraging Enel X Global Retail for sales activities. It is also involved in inno-
vating and developing e-Mobility solutions, managing the entire life cycle, from conception to
technological development, testing and marketing in step with the rest of the retail product
line.
In addition, the Grid Blue Sky project is being implemented. Its objective is to innovate and
digitalize infrastructures 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
Regions and countries are responsible for managing relationships with institutional bodies and
regulatory 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 transi-
tion towards a low-carbon business model within their areas of responsibility.
(4) 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.
52
52
Integrated Annual Report 2021
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.
During the 1st Half of 2021, a new Service Function called Global Customer Operations was intro-
duced. Its activities are focused on managing customer activation, invoicing, credit management,
customer assistance and the related support processes at the Group level. It is also responsible for:
• defining and implementing the strategy of global actions regarding customers, increasing
customer satisfaction and value and at the same time optimizing service costs and related
cash flows;
• managing customer operational processes, maximizing operational excellence and customer
focus and exploiting technology;
• developing and innovating operating models and solutions for managing the customer’s life
cycle, maximizing adaptability to internal and external change through market leadership that
innovates on the basis of specific data analyses.
The Global Service Functions are also focused on the responsible adoption of measures that al-
low the achievement of sustainable development objectives, in particular 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 consol-
idating scenario analysis and managing the strategic and financial planning process aimed at
promoting the decarbonization of the energy mix and the electrification of energy demand, key
actions in the fight against climate change.
Enel organizational model
53
53
in specific long-term incentive plans. In particular, for
2021 this component is linked to participation in the
2021 Long-Term Incentive Plan for the management of
Enel SpA and/or its subsidiaries pursuant to Article 2359
of the Italian Civil Code (2021 LTI Plan), which establishes
three-year performance targets for the following:
– Enel’s average TSR (Total Shareholder Return) com-
pared with the average TSR for the EURO STOXX Util-
ities - EMU index for the 2021-2023 period;
– ROACE (Return on Average Capital Employed), cu-
mulative for 2021-2023;
– consolidated net installed renewables capacity/con-
solidated net installed total capacity at the end of
2023;
– grams of Scope 1 GHG emissions per equivalent
kWh generated by the Group in 2023;
– percentage of women in management succession
plans at the end of 2023.
The 2021 LTI Plan establishes that any bonus accrued is
represented by an equity component, which can be sup-
plemented – depending on the level of achievement of the
various targets – by a cash component. More specifical-
ly, the Plan envisages that 100% of the basic bonus of the
Chief Executive Officer/General Manager (compared with a
maximum of 280% of the basic bonus) and 50% of the ba-
sic bonus of key management personnel (compared with a
maximum of 180% of the basic bonus) will be paid in Enel
shares previously acquired by the Company. In addition,
the disbursement of a significant portion of long-term
variable remuneration (70% of the total) is deferred to the
second year following the three-year performance period
covered by the 2021 LTI Plan.
For more information on the remuneration policy for 2021,
please see Enel’s “Report on the remuneration policy for
2021 and compensation paid in 2020”, which is available on
the Company’s website (www.enel.com).
Incentive system
Enel’s remuneration policy for 2021, which was adopted by
the Board of Directors acting on a proposal of the Nomina-
tion and Compensation Committee and approved by the
Shareholders’ Meeting of May 20, 2021, was formulated on
the basis of: (i) the recommendations of the Italian Corpo-
rate Governance Code published on January 31, 2020; (ii)
national and international best practice; (iii) the guidance
provided by the favorable vote of the Shareholders’ Meet-
ing of May 14, 2020 on the remuneration policy for 2020; (iv)
the results of the engagement activity on corporate gov-
ernance issues pursued by the Company between January
and March 2021 with the leading proxy advisors and Enel’s
institutional investors; and (v) the findings of the benchmark
analysis of the remuneration of the Chairman of the Board
of Directors, the Chief Executive Officer/General Manager
and the non-executive directors of Enel for 2020, which
was performed by the independent consultant Mercer.
This policy is intended to: (i) foster Enel’s sustainable suc-
cess, which takes the form of creating long-term value for
the benefit of shareholders, taking due consideration of the
interests of other key stakeholders, so as to incentivize the
achievement of strategic objectives; (ii) attract, retain and
motivate personnel with the professional skills and experi-
ence required by the sensitive managerial duties entrusted
to them, taking into account the remuneration and working
conditions of the employees of the Company and the Enel
Group; and (iii) promote the corporate mission and values.
The 2021 remuneration policy adopted for the Chief Exec-
utive Officer/General Manager and key management per-
sonnel envisages:
• a fixed component;
• a short-term variable component (MBO) that will be
paid out on the basis of achievement of specific perfor-
mance objectives. Namely:
– for the CEO/General Manager, annual objectives have
been set for the following components:
• consolidated net ordinary profit;
• Group opex;
• funds from operations/consolidated net financial
debt;
• System Average Interruption Duration Index (SAIDI);
• workplace safety;
– for key management personnel, objective annual
goals connected with their business area have been
set in their MBO mechanism, differentiated by the
functions and responsibilities assigned to them;
• a long-term variable component linked to participation
54
54
Integrated Annual Report 2021
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 in-
ternational best practices that everyone who works for and
with Enel must respect and apply in their daily activities.
The system is based on specific compliance programs,
including: the Code of Ethics, the Compliance Model un-
der Legislative Decree 231/2001, the Enel Global Compli-
ance Program, the Zero-Tolerance-of-Corruption Plan, the
Human Rights Policy, and any other national compliance
models adopted by Group companies in accordance with
local laws and regulations.
Code of Ethics
In 2002, Enel adopted a Code of Ethics, which expresses
the Company’s ethical responsibilities and commitments
in conducting business, governing and standardizing cor-
porate conduct on the basis of standards aimed to ensure
the maximum transparency and fairness with all stakehold-
ers.
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
violations or suspected violations of Enel Compliance
Programs can be reported, including in anonymous form,
through a single Group-level platform (the “Ethics Point”).
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 corporate
mission and the United Nations Sustainable Development
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-
ports the average number of training hours per person, to-
tal reports of violations received and violations confirmed.
Total reported violations of the Code of Ethics received
Confirmed violations of the Code of Ethics
- of which violations involving conflicts of interest/bribery
no.
no.
no.
2021
153
41
7
2020
151
26
2
Change
2
15
5
1.3%
57.7%
-
Compliance Model under Legislative Decree 231/2001
Legislative Decree 231 of June 8, 2001 introduced into
Italian law a system of administrative (and de facto crim-
inal) liability for companies for certain types of offenses
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 Legis-
lative Decree 231/2001 (also known as “Model 231”). It has
been constantly updated to reflect developments in the
applicable regulatory framework and current organiza-
tional arrangements.
Values and pillars of corporate ethics
55
55
Enel Global Compliance Program (EGCP)
The Enel Global Compliance Program for the Group’s for-
eign companies was approved by Enel in September 2016.
It is a governance mechanism aimed at strengthening the
Group’s ethical and professional commitment to prevent-
ing the commission of crimes abroad that could result in
criminal liability for the company and do harm to our rep-
utation. Identification of the types of crime covered by the
Enel Global Compliance Program – which encompasses
standards of conduct and areas to be monitored for pre-
ventive purposes – is based on illicit conduct that is gener-
ally considered such in most countries, such as corruption,
crimes against the government, false accounting, money
laundering, violations of regulations governing safety in
the workplace, environmental crimes, etc.
Zero-Tolerance-of-Corruption Plan and the anti-bribery
management system
In compliance with the tenth principle of the Global Com-
pact, according to which “businesses should work against
corruption in all its forms, including extortion and bribery”,
Enel is committed to combating corruption. For this rea-
son, in 2006 we adopted the “Zero-Tolerance-of-Corrup-
tion Plan” (ZTC Plan), confirming the Group’s commitment,
as described in both the Code of Ethics and the Model 231,
to ensure propriety and transparency in conducting com-
pany business and operations and to safeguard our image
and positioning, the work of our employees, the expecta-
tions of shareholders and all of the Group’s stakeholders.
Following receipt of the ISO 37001 anti-corruption certifi-
cation by Enel SpA in 2017, the 37001 certification plan has
gradually been extended to the main Italian and interna-
tional subsidiaries of the Group.
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
2021
20,074
30.3
34.5
37.4
17.8
21.0
27.7
75.9
no.
%
%
%
%
%
%
%
2020
Change
26,660
(6,586)
40.0
(9.7)
47.7
20.2
26.8
80.7
28.4
56.7
(13.2)
17.2
(9.0)
(59.7)
(0.7)
19.2
-24.7%
-24.3%
-27.7%
85.1%
-33.6%
-74.0%
-2.5%
33.9%
Human Rights Policy
The Company adopted a human rights policy in 2013,
which was subsequently approved by all the subsidiaries
of the Group. In implementing the “Guiding Principles on
Business and Human Rights” set out by the United Nations,
it defines the principles that all associates of Enel SpA and
its subsidiaries undertake to respect on the basis of their
relevance in the context of their activities and business re-
lationships in each country in which they operate, taking
due consideration of local cultural, social and economic
diversity and requiring that all its stakeholders adopt a line
of conduct that complies with these principles.
Stakeholders are all those who have a direct or indirect in-
terest in the activities of the Enel Group, such as custom-
ers, employees of any type or level, suppliers, contractors,
partners, other companies and trade associations, the
financial community, civil society, local communities and
indigenous and tribal peoples, national and international
institutions, the media, as well as the organizations and in-
stitutions that represent them.
In consideration of the evolution of external conditions
and operational, organizational and management devel-
opments at Enel, including compliance with the Code of
Ethics updated at the beginning of the year, a review of the
Human Rights Policy was begun in 2021.
The update, similar to the 2013 version, involved a process
of consultation with stakeholders relevant to the Compa-
56
56
Integrated Annual Report 2021
ny (internal, other companies, suppliers, human rights ex-
perts, think tanks, NGOs) conducted in accordance with
the criteria contained in the ‘‘UN Global Compact Guide
for Business: How to Develop a Human Rights Policy’’.
The new code, which was approved by the Board of Direc-
tors of Enel SpA on November 4, 2021, identifies twelve
principles (compared with the previous eight), again divid-
ed into two macro-themes: work practices and community
relations.
The Human Rights Policy is a commitment to:
• proactively consider the needs and priorities of people
and society in general because this makes it possible
to innovate processes and products, a key factor in
an increasingly competitive, inclusive and sustainable
business model, including through the adoption of the
principles of circularity, the protection of natural capital
and biodiversity;
• promote the engagement of our main external and in-
ternal stakeholders in order to enhance their awareness
and develop a constructive dialogue that can provide a
valuable contribution to the design of solutions to miti-
gate climate change.
In addition to the commitment to the contribution to
achieving the United Nations Sustainable Development
Goals, the updates include: (i) a reminder of how envi-
ronmental degradation and climate change are intercon-
nected with human rights, in that the implementation of
measures to mitigate the effects of human activities on
the environment cannot take place without taking ac-
count of their social impact; (ii) the strengthening of the
principles of “respect for diversity and non-discrimination”
and “health and safety” in the part relating to psycholog-
ical and physical well-being and work-life integration; (iii)
an increase in the granularity of our commitment in our
relations with communities, with particular regard to local
communities, indigenous and tribal populations, privacy
and communication.
Enel has undertaken to monitor application of the Human
Rights Policy (i) by employing a specific due diligence pro-
cess in the various countries in which we operate; (ii) by
promoting conduct consistent with a just and inclusive
transition; and (iii) by enhancing communication with re-
gard to the action plans developed to prevent and remedy
situations in which critical issues could arise.
More specifically, the due diligence process for the man-
agement system, which is structured into three-year cy-
cles and has been developed in accordance with the main
international standards such as the United Nations Guid-
ing Principles on Business and Human Rights, the OECD
guidelines and international best practices, enables us
to identify opportunities for improvement and develop
specific action plans for each country in which we have a
presence, accompanied by a plan for improvement at the
central level in order to harmonize and integrate processes
and policies defined at the global level and applied at the
local level. All of these improvement plans are also inte-
grated into the Sustainability Plan.
In the 2020-2022 cycle, some 170 actions have been iden-
tified, covering 100% of operations and sites.
As more specifically regards the sustainability of the sup-
ply chain, human rights performance is evaluated for all
potential suppliers through a dedicated questionnaire in
which the characteristics of potential suppliers are ana-
lyzed with regard to inclusion and diversity, protection of
workers’ privacy, verification of their supply chain, forced
or child labor, freedom of association and collective bar-
gaining, and application of fair working conditions (includ-
ing adequate wages and working hours). As enshrined in
the Human Rights Policy, in addition to guaranteeing the
necessary quality standards, supplier performance must
go hand in hand with the commitment to adopt best prac-
tices in terms of human rights and working conditions
(including appropriate working hours, no forced or child
labor, respect for personal dignity, non-discrimination and
inclusion of diversity, freedom of association and collec-
tive bargaining), workplace health and safety, environmen-
tal responsibility and respect for privacy by design and
by default. Furthermore, general contractual terms and
conditions expressly provide for suppliers to undertake to
adopt and implement, among other things, the principles
contained in the Human Rights Policy and in the Group’s
Code of Ethics and to comply with International Labor Or-
ganization conventions or legislation in force in the coun-
try in which activities are to be performed, if more restric-
tive, and in accordance with the principles of the Global
Compact that Enel has adopted, ensuring that such prin-
ciples are met in the performance of all activities both by a
supplier’s employees and its subcontractors.
Values and pillars of corporate ethics
57
57
REPORT
ON OPERATIONS
3. Group Strategy &
Risk Management
Long-term planning
This decade will be the decade of electrification:
a key step, along with the development of
renewables, in accelerating decarbonization and
achieving our ambitious climate goals.
The new 2022-2024 Business Plan
Within the broader ambitions for the positioning
of the Group by 2030, the 2022-2024 Business
Plan is ideally positioned as the start of a journey
of growth that spans the entire decade.
Reference scenarios
Assessing the impacts of climate change and
the energy transition is crucial for long-term
planning. To this end, the Group has created a
comprehensive framework and a process that
can translate data into useful information to
maximize opportunities and mitigate risks.
58
Integrated Annual Report 2021
59
Group strategy
Determination of the Group’s long-term strategy is based
on an assessment of options that will enable the sustain-
able generation of value for all stakeholders.
Fundamental to this is the assessment of the external
environment and its evolution. To determine the frame-
work in which we operate, we conduct in-depth scenario
planning in order to be prepared to seize opportunities
and manage future risks and uncertainties in the most
robust manner possible. This analysis of what could hap-
pen in the external landscape, together with the Group’s
purpose and our Open Power mission, is key to defining
the Group’s positioning within that landscape. We then
define our long-term ambitions and design the strategic
options that characterize our long-term planning.
In recent years, the increasing complexity of the rapidly
changing context in which we operate has made it so that
the process of defining the Group’s strategies has also
evolved in order to capture as much of this dynamism as
possible, so as to make it an enabling factor in the defi-
nition of goals.
Today, this process is organized into the following main
activities:
• strategic dialogue: a continuous process of active
dialogue throughout the year and across all Group
functions, through which the strategic topics for the
evolution and growth of the Group are identified, ana-
lyzed, discussed and addressed. This dialogue is part
of a strategic design phase, where communication
between executives makes a valuable contribution to
developing new strategic options, with an emphasis
on the need for cultural or organizational change and
synergies between businesses. This process, which is
coordinated at the Group level, first involves the iden-
tification of topics through consensus among senior
management and approval by the CEO. The next phase
of the strategic dialogue process involves the struc-
turing of agile working groups with all the profession-
al expertise necessary for the proper analysis of each
topic, aimed at the preparation of dedicated work-
shops or strategic options to be discussed.
The process is centrally governed and includes mile-
stones and deadlines that are defined based, in part, on
the relative priority of the decisions to be made. In 2021,
the working groups created for the various topics were
organized around strategic priorities (e.g., Electrifica-
tion, Value for the entire System, Decarbonization, Plat-
forms and the Digital Transition, etc.). This process ena-
bles us to properly define opportunities related to each
strategic topic (including any financial or operational
impacts) and a roadmap for the implementation of any
actions to be taken. The outputs are then discussed by
top management in dedicated meetings. These meet-
ings include one special event, the Top Team Offsite
meeting, at which all senior management discusses
the priority topics. The most significant conclusions are
then included in the Group’s long-term planning. This is
then followed by the Strategic Summit, usually organ-
ized in October in order to discuss the annual update
of the Strategic Plan with the Board of Directors. This
framework enables governance of the treatment of
strategic issues, while at the same time ensuring swift
identification of emerging trends and the necessary
cross-business involvement for a complete analysis of
complex and interdependent issues in the presence of
an organizational structure based on the country/Busi-
ness Line/Service Functions matrix;
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Integrated Annual Report 2021
Discover new topics12Go in-depth of hot topics andraise flagsKEEP ROLLING ANDDON’T MISS OUTStrategic dialogue3Discuss optionsand crossroads4Evaluate being on-track with long-term plan and vision2021 • strategic planning: this process, which is driven on
an ongoing basis by feedback from the strategic dia-
logue, transforms the information to be processed into
quantitative models in order to establish an overview
of the industrial, economic and financial evolution of
the Group, supplemented by possible active portfolio
management. The evaluation of strategic options over
a time horizon extends beyond that used in industrial
planning, with (i) the definition and the quantitative and
qualitative development of alternative macroeconom-
ic, energy and climate scenarios against which overall
strategy can be assessed; and (ii) analysis based on
stress testing for various factors, including the evolu-
tion of the industrial sector, technology, competitive
structure and policies;
• long-term positioning: the analyses and decisions de-
scribed in the previous points generate information for
long-term positioning on multiple topics and the as-
sessment of ambitions and targets for the Group;
• analysis of ESG factors and assessment of materiality
in the field of sustainability: the method Enel uses to
perform ESG and materiality analysis was developed
on the basis of the guidelines set out in numerous in-
ternational standards (for example, the Global Report-
ing Initiative - GRI, UN Global Compact, SDG Compass,
etc.), with the aim of identifying and evaluating priori-
ties for stakeholders and integrating them into Group
strategy.
The strategy of the Enel Group has proven its ability to
create sustainable long-term value, fully integrating the
themes of sustainability and close attention to climate
change issues while simultaneously ensuring increased
profitability.
The Group is among the leaders guiding the energy tran-
sition through the decarbonization of electricity genera-
tion and other activities and the electrification of energy
consumption, which represent opportunities both to in-
crease value creation for all and to contribute positively
to more rapid achievement of the Sustainable Develop-
ment Goals set by the United National (SDGs) in the 2030
Agenda.
Strategic Plan
The decade of electrification - The quest for net zero is
under way throughout the world, and decarbonization
and the electrification of the global economy are cru-
cial to avoiding the grave consequences of an increase
in temperatures of 1.5 °C above pre-industrial levels. The
most recent scenarios all indicate that we will need to ac-
celerate the electrification of energy consumption and
decarbonize electricity generation in order to achieve our
ambitious climate goals. Our customers will play an active
role and be the primary beneficiaries of this process.
Over the last 10 years, renewable energy has become the
dominant trend in power generation thanks to declining
costs, thereby enabling decarbonization to move at a
more rapid pace. It has been a decade of radical change
in the power generation mix, and this is destined to con-
tinue accelerating. The coming decade will be crucial in
achieving the goals set by the 2015 Paris Agreement. At
the same time, it will also be a period characterized by in-
creasing efforts in electrification, whereby customers will
gradually convert their energy consumption to the elec-
trical grid, which will improve spending levels, efficiency,
emissions, and price stability.
In order to respond more effectively to the expected ac-
celeration in investment and contribute to more rapidly
achieving the primary goals that are needed to combat
climate change, the Enel Group intends to leverage the
progress we have made in digitalization, as well as our
position as:
• the world’s leading private-sector player in renewable
energy, with a total global capacity of about 53.4 GW;
• the world’s primary private-sector network operator,
with more than 75 million network customers;
• the private-sector player with the world’s largest base
of retail customers, with more than 69 million retail
customers worldwide.
Our business model - In order to take full advantage of all
the opportunities emerging in the marketplace in which
we operate, the Group has established the Ownership
and Stewardship business models. The most appropriate
and effective business model is selected based on the
geographical area and context of operations:
• the Ownership business model, by which the Group in-
vests directly in renewable energy, grids and custom-
ers. This model is used when operating in countries
in which we can leverage the entire value chain, from
power generation to integration with the end user. Ac-
cordingly, we refer to these countries as “Tier 1”, and
they include Italy, Spain and Romania in Europe, and
the United States, Brazil, Chile, Colombia and Peru in
the Americas;
• the Stewardship business model, by which the Group
invests in new joint ventures (JVs), existing JVs or ac-
quires minority interests in order to maximize the val-
ue of the know-how we have developed in the various
businesses in which we have a presence. This is done
Group strategy
61
61
by activating specific contract services with partners
or by the subsequent development of assets. This
model focuses primarily, although not exclusively, on
the “non-Tier 1” countries where the Group does not
have an integrated presence and where we seek to
build partnerships with others in order to explore new
geographical areas or to contribute the Group’s oper-
ating experience in alternative contexts.
Strategic action - Within this landscape, the Group has
set the following strategy guidelines:
I. Allocating capital to support the provision of decar-
bonized electricity
The Group expects to mobilize €210 billion between 2021
and 2030. Of this total, the Group expects to invest di-
rectly some €170 billion (up 6% from the previous Plan)
by way of the Ownership and Stewardship business mod-
els, with an additional €40 billion being catalyzed through
third parties under the Stewardship model.
We expect this allocation of capital to accelerate achieve-
ment of the Group’s electrification and decarbonization
goals.
Total investments(1)
(€bn)
Capex by Business Line and customers’ needs
+6%
190
10
150
210
10
160
44%
Reliable and safe
delivery
10%
High tech and
high quality service
43%
Affordable and
clean energy
2021-2030
170 €bn
3%
2021-2030
Old Plan
2021-2030
New Plan
Ownership
Stewardship
Third parties
(1) 2021-2030 Old Plan included Enel X consolidated
capex in stewardship.
By 2030, the Enel Group expects to manage a total renew-
ables capacity of about 154 GW, triple our 2020 portfo-
lio, as well as to grow our grid customer base by 12 million
and promote the electrification of energy consumption,
while increasing the volume of electricity sold by nearly
30% and focusing, at the same time, on the development
of beyond-commodity services, such as strengthening
the electric-vehicle charging grid or for behind-the-me-
ter storage and electric buses, in collaboration with other
partners.
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62
Integrated Annual Report 2021
Ownership
Stewardship
2020
2030
2020
2030
2020
2030
RES capacity (GW)
Grid customers (mln)
Electricity sold(2) (TWh)
45
129(1)
74
81
~430
~550
+84 GW
+7 mln
+28%
Storage (MW)
~4
25
0
5
6
>600
+21 GW
+5 mln
Electric buses (k)
0.4
>20
~49
154
74
86
Total
+105 GW
+12 mln
It includes RES capacity and BESS.
(1)
(2) Power free + regulated + wholesales + PPAs.
II. Enabling the electrification of energy demand among
customers
The Group’s strategic action will seek to increase value
for customers in the business-to-consumer (B2C), busi-
ness-to-business
(B2B), and business-to-government
(B2G) segments by increasing the level of electrification of
these customers while improving the services provided.
In the “Tier 1“ countries, we expect this targeted strate-
gy, paired with investment in our asset base, to increase
the Group’s integrated margin by 2.6 times between 2021
and 2030 with the support of a unified platform that is able
to manage the world’s largest customer base of any pri-
vate-sector player.
The Group will be taking advantage of our integrated posi-
tioning in the “Tier 1“ countries, where we forecast:
• an 80% increase in revenue compared with 2021;
• a 40% decrease in the total cost of energy sold to cus-
tomers from all sources as compared with 2021.
2030
~40%
Reduction of household
energy spending(1)
>85%
Sales covered by RES
production(2) (%)
~80%
GHG emissions household
reduction(1)
(1) Vs. 2020, based on Enel’s portfolio of clients in Italy and Spain.
(2) Based on “Tier 1“ countries; free market.
Group strategy
63
63
The increase in the volume of electricity sold and the
growth in beyond-commodity services will be accompa-
nied by a generalized reduction in costs. More specifical-
ly, we expect total production costs to decrease by about
50% as a result of greater use of our own output in elec-
tricity sales and an increase in the share of renewable en-
ergy in the Group’s generation mix, which is expected to
increase from around 60% in 2021 to more than 85% by
2030 in the “Tier 1“ countries.
We also estimate that value created for customers by the
Group could lead to a reduction of up to 40% in their to-
tal energy costs, together with a decrease of up to 80% in
their carbon footprint by 2030.
III. Focusing on the creation of value throughout the value
chain
To reinforce our strategy of focusing on the customer by
making use of platforms, the Group has created the Global
Customer Operations Business Line, which is responsible
for defining commercial strategies and guiding the alloca-
tion of capital towards customer needs by leveraging elec-
trification and continuing to improve service quality.
This renewed focus of the Group will accompany the bal-
ancing and streamlining of our portfolio by way of: (i) a focus
on “Tier 1“ countries; (ii) resources made available by selling
off assets that no longer serve Group strategies; and (iii) ex-
traordinary operations aimed at improving positioning, ac-
quiring skills or generating synergies.
T
I
E
R
1
C
O
U
N
T
R
I
E
S
Enel
Green Power
Global Energy
and Commodity
Management
Global
Infrastructure
and Networks
Enel X
Global Retail
Migration
to cloud
2016
2019
2021
2014
Launch of matrix
organization
2017
Set up of
2020
Customer
Operations
platform
GRID BLUE SKY
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Integrated Annual Report 2021
IV. Moving sustainable Net Zero goals up to 2040
The Group’s strategy and positioning planned for 2030
enable us to affirm our intention to move up achievement
of Paris Agreement’s Net Zero commitment by 10 years,
from 2050 to 2040, for both direct and indirect emissions.
Enel is committed to achieving zero emissions, without the
use of any carbon-removal technologies or nature-based
solutions, related to power generation and the sale of
electricity and natural gas to end users.
The plan by which the Group expects to reach this ambi-
tious goal ahead of our original schedule is based on the
implementation of certain key strategic steps: (i) the ex-
pectation to accelerate the decarbonization of genera-
tion, progressively replacing our thermal portfolio with new
renewables capacity while also taking advantage of the
hybridization of renewables with storage solutions; (ii) by
2040, the electricity sold by the Group will be 100% renew-
able and we will exit the retail sale of natural gas.
Development of new
RES capacity to have a
100%-sustainable fleet
Exit from coal
and exit
from gas
Exit from
gas and 100%
sales from RES
Enel capex plan
fully aligned with
2040 Net-Zero
targets
RES capacity
on total(1)
59%
2021
~80%
2030
~100%
2040
Gas sold
(bsmc)
9.9
2021
~6
2030
0
2040
(1)
Including 3.3 GW of managed renewable capacity.
Investment plan
The Group’s investment plan is fully aligned with its goal of
achieving net zero by 2040 (in line with the Paris Agree-
ment’s goal of limiting global warming to 1.5 °C). Conse-
quently, investments in carbon-intensive assets or prod-
ucts will gradually decline to zero by 2040.
In line with this vision, over the next decade the Group ex-
pects to directly invest some €160 billion under the Own-
ership business model, mainly in “Tier 1“ countries.
More specifically:
• nearly half (€70 billion approximately) will be dedicat-
ed to our Renewables business, where we expect an
increase of about 84 GW in capacity compared with
2020, 9 GW of which in storage, to bring our consoli-
dated renewable energy installed capacity to 129 GW
by 2030. We expect this outcome to be achieved by
developing a growing pipeline, equal to about 370 GW
and more than doubling since last year, along with three
global platforms for the activities of Business Develop-
ment, Engineering and Construction, and Operations
and Maintenance;
• an additional investment of about €70 billion is planned
for the Infrastructure and Networks business, up €10
billion from the previous plan and concentrated in Eu-
rope, with the goal of strengthening the Group’s posi-
tion as a global player in terms of size, quality, efficien-
cy, and resilience. We forecast that this investment will
produce a regulatory asset base (RAB) of €65 billion by
2030, along with the full digitalization of our entire net-
work customer base with smart meters. Development
Group strategy
65
65
of Group activities in this space will benefit from imple-
mentation of Grid Blue Sky, a digital platform to manage
the grid assets within the framework of a unified, global
model that places the customer at the heart of the value
chain.
Capex
Capex deployed in “Tier 1“ countries
44%
44%
9%
3%
2021-2030
160 €bn
98%
2021-2030
160 €bn
“Tier 1“ countries
Other countries
Within the scope of the Stewardship business model, the
Group plans to invest about €10 billion, while also catalyz-
ing €40 billion in additional investment by third parties.
Net Zero by 2040
In 2019, Enel, responding to the call for action from the
United Nations, signed a commitment to act to limit the
increase 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 (Scopes 2 and 3) emissions.
In 2021, Enel announced that we have moved up our Net
Zero target to 2040. This commitment calls for: (i) the
100% reduction of direct emissions (Scope 1) and of in-
direct emissions related to gas sales (Scope 3 Gas); (ii) a
reduction of at least 90% in all other indirect emissions
(Scopes 2 and 3). This objective requires not only a sharp
acceleration in renewables and energy efficiency, but also
a complete rethinking of the economic model and invest-
ment planning. Over the next 10 years, the Strategic Plan
presented by Enel in November 2021 describes how the
massive investments envisaged through the Ownership
business model are consistent with the objective of reduc-
ing direct emissions (Scope 1) to 82 gCO2eq/kWh by 2030,
an objective that has been certified by the Science Based
Targets initiative (SBTi) as in line with the 1.5 °C scenario
set out in the Paris Agreement. In particular, investments
in new renewables capacity will enable the achievement
of certain key performance indicators (KPIs): renewable
sources will account for more than 80% of total capacity
and about 80% of electricity generation in 2030. This will
allow the share of “emission-free” generation to grow from
65% in 2020 to over 85% in 2030 and, consequently, to
cut direct emissions from 211 gCO2eq/kWh in 2020 to 82
gCO2eq/kWh in 2030.
The goal of achieving total decarbonization by 2040 re-
quires a complete rethinking of the economic model in
terms of circularity.
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 Group has increased both awareness of and transpar-
ency around all categories of indirect emissions. Despite
the fact that reporting on indirect emissions is voluntary,
Enel has prepared a more in-depth report of emissions
from fuel extraction and transport, grid losses, self-con-
sumption, and supplier relations.
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Integrated Annual Report 2021
Net-Zero commitment
As a signatory of the “Business Ambition for 1.5 °C” campaign promoted by the United Nations
and other institutions, Enel is committed to setting a long-term goal to achieve net-zero
emissions across the entire value chain by 2040 (up from the previous target of 2050), including
both direct emissions (Scope 1) and indirect emissions (Scopes 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
140 gCO2eq/kWh
by 2024
100%
of Scope 1
GHG emissions(1)
1.5 °C(2)
• Gradual phase out of coal-fired capacity in the 2022-2024
period (percentage of coal capacity out of total consolidated
capacity reduced from 7% in 2021 to about 4% in 2024)
• Invest €17.3 billion to accelerate the development of renewable
energy by installing 17 GW of new renewables capacity in
the 2022-2024 period, reaching 67 GW of consolidated
renewables capacity by 2024
Short term
(2024)
21.3 million
tCO2eq by 2024
≤130 gCO2eq/kWh
by 2024
82 gCO2eq/kWh
by 2030
(80% reduction
compared with
2017)
11.4 million
tCO2eq by 2030
(55% reduction
compared with
2017)
≤73 gCO2eq/kWh
by 2030
(80% reduction
compared with
2017)
Medium term
(2030)
100%
of Scope 3
emissions
connected
with the sale of
natural gas on
end-user market
100%
of of Scope 1
and Scope 3
emissions
connected
with the sale of
electricity on
end-user market
1.5 °C(2)
• Promote the switch of customers from gas to electricity
• Optimize the gas portfolio of customers (especially industrial
(especially residential customers)
customers)
1.5 °C(2)
• Increase the percentage of renewable energy sold to
customers, while increasing Group’s renewables production
100%
of Scope 1
GHG emissions(1)
1.5 °C, SBTi
certified
capacity)
• Exit from coal-fired generation (phasing out 16 GW of coal
• Invest €65 billion to accelerate the development of renewable
energy by installing 75 GW of renewables capacity in the 2021-
2030 period, reaching 120 GW of consolidated renewables
capacity by 2030 (3 times installed renewables capacity in the
2017 base year)
100%
of Scope 3
emissions
connected
with the sale of
natural gas on
end-user market
100%
of Scope 1 and
Scope 3
emissions
connected
with the sale of
electricity on
end-user market
1.5 °C(3)
with the previous 2030 target
• Update to previous target, equal to a 46% reduction compared
• Promote the switch of customers from gas to electricity
• Optimization of the gas portfolio of customers (especially
(especially residential customers)
industrial customers)
1.5 °C(3)
• Increase the percentage of renewable energy sold to
customers, while increasing Group’s renewables production
Group strategy
67
67
GHG target
Scope
Climate scenario Main drivers and actions to achieve target
~0 gCO2eq/kWh
by 2040
100%
of Scope 1
GHG emissions(1)
1.5 °C(3)
• Gradual phase out of thermal capacity and achieve a 100%
• No use of carbon-removal technologies
renewable energy mix
Long term
(2040)(4)
~0 million tCO2eq
by 2040
~0 gCO2eq/kWh
by 2040
Net-zero
emissions by
2040
100%
of Scope 3
emissions
connected
with the sale of
natural gas on
end-user market
100%
of Scope 1 and
Scope 3
emissions
connected
with the sale of
electricity on
end-user market
All
remaining
emissions
(Scopes 1, 2
and 3)
1.5 °C(3)
• Exit from the sale of gas to end users by promoting the
electrification of energy consumption
• No use of carbon-removal technologies
1.5 °C(3)
• Aim to achieve sale of 100% renewable energy to end users by
• No use of carbon-removal technologies
2040
1.5 °C(3)
• Potential use of carbon-removal technologies
(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 decarbon-
ization approach, SDA).
(3) We expect to request SBTi certification of the target in June 2022 and, in any event, based on a schedule agreed upon with SBTi.
(4)
In compliance with the Group’s Net-Zero commitment, which comprises both direct and indirect emissions, targets also will be set for additional compo-
nents of Scope 2 and Scope 3 emissions in accordance with the Net-Zero Standard that SBTi published in October 2021.
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Integrated Annual Report 2021
The Enel Group’s strategy with regard to the IEA NZE scenario
The Net Zero Emissions (NZE) scenario of the International
Energy Agency (IEA) sets out one of the possible paths to
achieving global net-zero emissions by 2050. It is the most
ambitious of the scenarios defined by the IEA and was de-
veloped with the goal of reducing emissions by the energy
system in line with the goal of containing the average in-
crease in global temperatures to within +1.5 °C. Compared
with the IEA’s other scenarios, there is a gap to be closed
in emission reductions by way of a sharp acceleration in
terms of policies and in terms of the rate of electrification
and the development of renewables capacity. Like all IEA
scenarios, this scenario, too, is based on currently known
industrial processes and consumption models and on ex-
isting technologies and does not include any disruptive
technologies that could emerge in the coming years.
The IEA NZE scenario is particularly useful to help busi-
nesses assess the sustainability of their strategies in re-
lation to a scenario of net-zero emissions by 2050. The
roadmap to net-zero emissions set out in this scenario
provides helpful, global and regional signposts in terms
The Sustainability Plan
People centricity is one of the pillars of Enel’s sustainability
strategy.
The Group is committed to providing the best conditions
and opportunities for the people who work for us, with the
goal of facing the challenges of the energy transition in
line with the United Nations’ just-transition commitment
signed in 2019. Upskilling, reskilling and specific training in
digital skills are being paired with action plans for employ-
ee development and valuing diversity aimed at creating an
inclusive workplace by way of detailed objectives, including
in terms of listening to employees and evaluating their per-
formance. Within this context, the Group has raised tar-
gets, compared with the previous year, related to the per-
centages of female senior managers and middle managers
to 26.8% and 33.4%, respectively, by 2024.
At the same time, one of the pillars of our sustainability
strategy centers on the importance of the relationship with
the local communities in which the Group operates, with
the commitment, for the period 2015-2030, to reach: 5
million beneficiaries of a quality education (SDG 4); 20 mil-
lion beneficiaries of clean, accessible energy (SDG 7); and
8 million beneficiaries of decent work and lasting, inclusive
and sustainable economic growth (SDG 8).
To support the Group’s sustainability strategy, a focus on
health and safety throughout the value chain continues to
of the evolution and penetration of technologies deemed
necessary to reach this goal. Nonetheless, local details are
not always available in order to test more granular business
assumptions and hypotheses.
As for Enel’s strategy, the main points of note are as fol-
lows:
• exit from gas-fired generation by 2040, with a roadmap
that does not call for any carbon-removal technologies
or solutions, which are not compatible with the Group’s
strategic or technological positioning. Therefore, this is
a target of zero, not “net” zero, direct emissions charac-
terized by power generation that is entirely renewable;
• forecasts of end-use electrification that, in accordance
with the IEA NZE roadmap, call for milestones that would
leave room for additional business opportunities due, in
particular, to the segments of transportation (e.g., 60%
of global car sales must be electric vehicles, no new
combustion-engine cars by 2035, etc.) and heating and
air conditioning.
be of central importance, made possible by way of con-
stant, increasing monitoring. The Group is committed to
promoting issues of sustainability and quality in supplier
relations throughout the supply chain. Also crucial is envi-
ronmental management aimed at reducing emissions, the
consumption of water and other natural resources, and
the preservation of biodiversity, and a strong governance
structure continues to be a cornerstone of Group strategy.
Finally, the energy transition must include enabling factors
such as digitalization and cyber security, by way of which
the Group is committed to promoting the most advanced
solutions and actions to verify them (e.g., ethical hacking,
vulnerability assessments, and cyber exercises involving
industrial plant and facilities).
The adoption of a fully sustainable business model re-
quires us to completely rethink the concept of circulari-
ty. The circular economy is fundamental for two reasons
in particular: on the one hand, it is an indispensable lever
in achieving the goals of decarbonization throughout the
value chain,(5) as well as making a positive contribution to
resolving a series of other critical environmental issues in
terms of the use of soil, water consumption, the creation
of waste, etc.; on the other, the large-scale adoption of
technologies such as photovoltaic power, batteries, and
electrical mobility requires, right from the start, a circular
(5)
It is estimated that about 45% of emissions at the Planet level are currently associated with the extraction and production of materials, manufacturing and
disposal.
Group strategy
69
69
approach to raw materials – and critical raw materials es-
pecially – throughout the value chain.
For years now, based on this awareness, Enel has included
the circular economy among our strategic drivers by way of:
• increasing engagement with suppliers in order to meas-
ure the circularity of all that we purchase (e.g., the EPD
project, which covers the Group’s strategic categories
and accounts for about 55% of all products purchased
globally), the implementation of a system of tracking
the raw materials procured, and co-innovation with
suppliers with an emphasis on solutions to close loops
together by way of specific projects;
• focusing on new models for the use of assets, extend-
ing the useful lives of the assets in use, and increasing
focus by way of remanufacturing and recycling projects
for assets that have reached the end of their useful lives;
• in terms of customers, both increasing the circularity of
the solutions offered by Enel X for end users and sup-
porting customers in terms of metering and improving
The 2022-2024 Business Plan
Within the broader ambitions for the positioning of the
Group by 2030, the 2022-2024 Business Plan is ideally
placed as the starting point for a growth path spanning the
entire decade.
Over the next three years, the Group will be operating
within the framework of the objectives set for 2030. More
specifically, the mid- and long-term strategies are fully in
line with the following strategic actions.
I. Allocating capital to support the delivery of decarbon-
ized electricity
The Group plans to directly invest a total of around €45 bil-
lion over the period 2022-2024, an increase of 12% above
the previous Plan, while also mobilizing an additional €8
billion from third parties within the scope of the Steward-
ship business model.
For the period 2022-2024, the Group plans to invest some
€43 billion within the Ownership business model, align-
ing 94% with the United Nations Sustainable Develop-
circularity by way of reporting and consulting services.
A transition of this sort requires a change both in technolo-
gy and business models, methods of interaction within the
value chain and the functioning of the economic model
writ large. To this end, Enel is collaborating with business-
es, organizations and stakeholders in all countries in which
we have a presence. All of this will also require a profound
transformation in skills and professionalism, for which we
are placing a great deal of emphasis on training and on
new approaches to collaboration between the various ar-
eas of the Group.
We have also seen growing interest in this issue in recent
years from the financial services industry, and Enel has,
for some time now, been supplementing our efforts with
a view to financing in order to ensure that new initiatives
are designed from the start to be financially competitive
(and so scalable) and to contribute to the profitability and
derisking of Group performance overall.
ment Goals (SDGs). Specifically, these funds will be aimed
at achieving the targets of SDG 7 (“Affordable and Clean
Energy”), SDG 9 (“Industry, Innovation and Infrastructure”),
and SDG 11 (“Sustainable Cities and Communities”), there-
by helping to combat climate change (SDG 13 - “Climate
Action”).
The alignment of the investments envisaged in the Group’s
Strategic Plan with decarbonization and greenhouse gas
reduction objectives is defined on the basis of a specific
methodology in which investments in renewables and retail
power by their very nature fall under SDG 7, investments in
the distribution grid fall under SDG 9 and investments in
Enel X concern SDG 11. The 94% mentioned above there-
fore excludes investments in conventional generation and
retail gas.
Furthermore, it is estimated that between 80% and 90% of
planned investments will be aligned with the criteria of the
European taxonomy, given the substantial contribution to
climate change mitigation.
70
70
Integrated Annual Report 2021
Total investments(1)
(€bn)
Enel’s capex
(€bn)
~48
~2
38
~52
~2
42.6
44.6
+11%
1.9
40
2
~94%
SDG aligned(2)
38
42.6
>85%
EU taxonomy
aligned(2)
2021-2023
Old Plan
2022-2024
New Plan
2021-2023
Old Plan
2022-2024
New Plan
Ownership
Stewardship
Third parties
(1) 2021-2023 Old Plan included Enel X consolidated capex in stewardship.
(2) Referred only to capex under the ownership model.
Over the same period, the Group also plans to invest some
€2 billion (of which 27% in renewables, 17% in the distribution
grid and the remaining 56% to enable customer electrifica-
tion) within the scope of the Stewardship business model by
way of capital contributions and acquisitions of minority in-
terests, while also mobilizing an additional €8 billion in invest-
ment by third parties. Investment in conventional generation
will decline progressively over the period covered by the Plan.
Of the Group’s total investment planned under the Owner-
ship and Stewardship models for 2022-2024:
• about €19 billion is expected to go to Renewables, par-
ticularly in countries in which the Group benefits from
business integrated with the end user. The Group’s total
renewables capacity is expected to increase to 77 GW, up
from an estimated 53 GW installed at the end of 2021. As
a result, it is estimated that zero-emission production will
reach 77% by 2024 and that, over the same period, carbon
emissions per kWh will decline by more than 35% com-
pared with 2021, moving the Group closer to achieving our
net-zero goals on schedule;
• about €18 billion is expected to go to the Infrastructure
and Networks business, up 12% from the previous Plan,
as a result of increased investment in Europe, which is
expected to take advantage of opportunities created by
the national plans under the EU’s Recovery and Resilience
Facility. With these investments, the goal of which is to
further increase grid quality and resilience, it is estimated
that the Group’s RAB will reach €49 billion, an increase of
nearly 14% over 2021.
Gross capex
Capex deployed in “Tier 1“ countries
43%
44%
8%
5%
2022-2024
42.6 €bn
98%
2022-2024
42.6 €bn
“Tier 1“ countries
Other countries
Group strategy
71
71
II. Enabling the electrification of energy demand among
customers
With the Group’s new customer-centric model, the inte-
grated margin is expected to grow 1.6 times by 2024 as
compared with 2021. Over the next three years, revenue
from customers are expected to increase by 26%, while
electricity sales are expected to rise by 25%. This will be
accompanied by about a 15% decrease in the total cost
of energy sold compared with 2021, thanks, in part, to a
reduction of about 23% in average production costs.
III. Focusing on the creation of value throughout the value
chain
Active management of assets will complete the process of
streamlining the Enel Group and providing the resources to
be used to take advantage of additional opportunities for
growth. These actions are expected to generate a €300 mil-
lion increase in profits once fully operational.
Integrated margin
in “Tier 1“ countries
(€bn)
~2.6x
1.6x
~6
2021
2024
2030
At the Group level, ordinary EBITDA is expected to grow by
11%, from €19.2 billion in 2021 to between €21.0-21.6 bil-
lion by 2024.
Cumulated EBITDA by GBL
EBITDA evolution over 2021-2024
(€bn)
42%
2022-2024
60-62 €bn
36%
19.2
2.9
+11%
1.3
1.2
21-21.6
(1.8)-(1.2)
(1.8)
5.4 €bn
Business
growth
22%
EBITDA
2021
Open Fiber
Generation
Customers
Networks Active portfolio
management
& other
EBITDA
2024
The following factors are expected to contribute to this
growth in the Group’s ordinary EBITDA:
• growth in Renewables will be the main driver for the pe-
riod, with an expected contribution of about €2.0 billion
out of a total contribution of the power generation busi-
ness of €2.9 billion. The evolution of the generation port-
folio is expected to translate into a 45% increase in the
EBITDA of Enel Green Power(6) over the period of the Plan,
from the €6.0 billion of 2021 to €8.7 billion by 2024;
• EBITDA for the Customers business is expected grow by
about 40% over the period of the Plan to reach €4.9 bil-
lion by 2024, up from the €3.4 billion of 2021. This growth
will be driven by Group actions to implement an integrat-
ed strategy in terms of commercial strategy and genera-
tion capacity, as well as by the contribution of electricity
volumes on the free market and by incremental needs for
additional services;
• EBITDA for the Infrastructure and Networks business is
expected to increase by 16% to €8.7 billion by 2024, up
from the €7.7 billion of 2021. The primary factors in this
growth are the increase in RAB, driven by increased capi-
tal expenditure, programs to increase efficiency, increas-
es in inflation-indexed rates, particularly in Latin America,
and increased volumes in energy distribution.
(6)
Including conventional generation activities.
72
72
Integrated Annual Report 2021
Enel’s dividend policy for the period will remain simple, pre-
dictable and attractive. Shareholders are expected to receive
a fixed dividend per share (DPS) that will grow by 13% from
2021 to 2024 to reach €0.43/share. We estimate that the ex-
pected growth in profits, added to the underlying dividend
yield, will translate into a total yield of around 13%.
Ordinary profit is expected to increase by about 20%, from
€5.6 billion in 2021 to between €6.7-6.9 billion by 2024, as
a result of the operating trends described above and the
ongoing optimization of the Group’s financial management.
This optimization will be achieved primarily by way of increas-
es in sustainable sources of financing, which are expected to
account for about 65% of total gross debt by 2024, decreas-
ing the cost of gross debt to an estimated 2.9% by 2024,
down from 3.5% in 2021.
We expect the use of debt to remain stable at a ratio of net
debt to EBITDA for the Group of 2.9 times over the period of
the Plan, with net debt for the Group expected to be €61-62
billion by 2024, up from €52 billion in 2021.
2021
2022
2023
2024
Total return
19.2
19-19.6
20-20.6
21-21.6
5.6
5.6-5.8
6.1-6.3
6.7-6.9
0.38
0.40
0.43
0.43
5.4%
5.7%
6.1%
6.1%
Earnings
CAGR
>13%
Average dividend
yield
Earnings
growth
Value
creation
Ordinary
EBITDA (€bn)
Net ordinary
income (€bn)
Fixed
DPS (€/sh)
Implied
dividend
yield(1)
(1) Enel Share Price: 7 €/sh.
Group strategy
73
73
Reference scenario
Macroeconomic environment
The world economic environment in 2021 was character-
ized by a broad-based economic recovery, with world GDP
growth of about 5.8% on an annual basis in 2021, following
a sharp drop of about 3.5% the previous year. This recovery
was made possible – especially in more developed countries
– with significant fiscal support from governments and rapid
and effective vaccination, which prevented the introduction
of significant restrictions on economic activity and mobility,
especially in the 2nd Half of the year. However, the differenc-
es in the pace of vaccination between developed and devel-
oping countries was also substantially reflected in the GDP
growth rates, engendering clear disparities in the recovery
of the different economies.
The generalized reopening of countries at the beginning
of 2021 in concomitance with the initial roll out of vaccines
generated sharp imbalances between supply and demand
on a global scale, creating large distortions in supply chains
and, consequently, pushing up the prices of raw materials.
These inflationary pressures also spilled over into the prices
of intermediate and consumer goods, creating a surge in in-
flation spiral that, accompanied by severe bottlenecks due to
logistical hurdles, is expected to continue in 2022.
In the advanced countries, the 2nd Half of the year was
marked by an unexpected economic slowdown, reflecting
interrelated factors such as an upturn in COVID-19 cases
driven by the spread of new variants on a global scale and
bottlenecks associated with logistical challenges. With re-
surgent demand buoyed by the reopening of economies,
limits on production accompanied by the already rising pric-
es of commodities have generated severe inflationary pres-
sures, boosting inflation to record levels.
US GDP grew by 5.7% on an annual basis in 2021, but in the
2nd Half expanded more slowly than expected at the begin-
ning of the year due to general slowdowns in private con-
sumption and industrial production in connection with the
various waves of COVID-19, the reduction of the government
support for private individuals that marked the first months
of the pandemic, shortages of raw materials and sharply
higher energy prices. For 2022, projections confirm a slow-
down in the economy as the support provided by excess
private saving, which helped fuel the recovery in early 2021,
will dissipate. Another factor will be the shift in the monetary
policy stance to a less accommodative posture with the Fed-
eral Reserve’s announcement that it would begin tapering its
purchases of securities and could increase its main official
rates as early as this year. Furthermore, significant risks linked
to the pandemic, inflation pressures at least until the end of
74
74
Integrated Annual Report 2021
the year, and political uncertainty connected with the mid-
term elections in November 2022 persist.
In the euro area, the real economy posted a strong recovery
in both the 2nd and 3rd Quarters of 2021, with annual GDP
growing by 5.2%. However, the economic recovery slowed
in the 4th Quarter due to steep increases in energy prices
and the resurgence of COVID-19 with the Omicron variant,
which prompted many countries to reintroduce business
closures and restrictions on mobility. The price increases in
the energy sector represent a crucial risk factor, especially
for industrial production, which is more sensitive than pri-
vate consumption, and therefore for the outlook for growth
in 2022. However, inflationary pressures associated with the
high prices of electricity and natural gas will have heteroge-
neous impacts within the euro area, and investment will re-
ceive significant support from the Next Generation EU recov-
ery plan. Finally, the monetary policy stance of the European
Central Bank will remain accommodative in 2022, although it
has been announced that the massive pandemic emergency
purchase program (PEPP) will be gradually tapered, but not
before March.
In Latin America, the progress of national vaccination cam-
paigns led to a steep drop in COVID-19 cases in the 2nd Half
of 2021. The associated reopening of national economies
coincided with a global increase in food and energy prices,
weak local currencies and periods of severe drought in sev-
eral large areas of the continent. These factors produced a
general increase in the price level, with inflation well above
the targets of many local central banks. The Argentine econ-
omy has shown signs of recovery, with GDP growing by
9.8% on an annual basis in 2021. Structural problems per-
sist, mainly concerning inflation and the public finances, but
negotiations with the International Monetary Fund continue
on a debt restructuring to avoid default in 2022. In Brazil,
most sectors of the economy recovered to pre-pandemic
levels, with GDP growth estimated at an annual 4.7% in 2021.
High levels of inflation prompted a restrictive monetary pol-
icy stance, which, combined with the limited contribution of
reopening to growth as a result of the vaccination process,
is moving the country towards a 2022 of stagflation. Further
downside risks are represented by political uncertainty, with
the previous President Lula favored for the upcoming elec-
tions. In 2021, the Chilean economy was driven by an upturn
in private consumption and investment, which produced
GDP growth of 12% on annual basis. Current risks are mainly
represented by the uncertainties associated with the choic-
es that the newly elected leftist candidate Gabriel Boric will
make. With inflation above the national target and a growing
current account deficit, he could pursue excessively radical
programs, with consequences for Chilean assets, including
the local currency, which had adverse repercussions at the
beginning of 2022. In Colombia, currency and inflationary
pressures led to a generalized increase in prices, with an-
nual inflation standing at 3.5% in 2021. For 2022, downside
risks are represented by a slowdown in oil prices and global
demand despite the estimated annual GDP growth of 9.6%
in 2021. In Peru, the reopening of the economy and an ac-
commodative monetary policy stance fueled annual GDP
growth of 12.9% in 2021. For 2022, the risks of low or moder-
ate growth are mainly attributable to the removal of current
fiscal and monetary stimuli and considerable political uncer-
tainty, with President Castillo surviving an impeachment at-
tempt just four months after taking office.
.
GDP growth and inflation(1)
%
Italy
Spain
Portugal
Greece
Argentina
Romania
Russia
Brazil
Chile
Colombia
Mexico
Peru
Canada
United States
South Africa
India
GDP
2021
6.5
5.0
4.9
8.8
9.8
6.3
4.4
4.7
12.0
9.6
5.2
12.9
4.7
5.7
4.7
-
2020
-9.0
-10.8
-8.4
-8.8
-9.9
-3.7
-3.0
-4.2
-6.0
-6.8
-8.4
-11.0
-5.2
-3.4
-6.4
-
Inflation
2021
2.0
3.0
-
-
48.1
4.1
6.7
8.3
4.5
3.5
5.7
4.0
3.4
4.7
4.5
5.1
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
Change
2.1
3.3
-
-
6.1
1.5
3.3
5.0
1.5
1.0
2.3
2.2
2.6
3.5
1.2
-1.7
(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 coming
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
2021
1.18
0.86
1.08
110
1.25
1.33
73.71
95.16
5.40
760.72
3,747.97
3.88
20.29
8.90
73.93
14.79
2020
Change
1.14
0.89
1.07
107
1.34
1.45
72.29
70.68
5.16
791.61
3,692.87
3.50
21.48
7.02
74.08
16.46
3.39%
-3.49%
0.93%
2.80%
-7.20%
-9.02%
1.93%
25.73%
4.44%
-4.06%
1.47%
9.79%
-5.86%
21.12%
-0.20%
-11.29%
Reference scenario
75
75
The energy industry
Energy - Commodity conditions in 2021
During 2021, the oil market experienced sharp growth in
its indices, reflecting the optimism for the recovery of eco-
nomic activity, combined with the precautionary measures
of OPEC+ regarding production cuts, which produced ten-
sions in price indices in the 2nd and 3rd Quarters. After
peaking in October, with the spread of new COVID-19 var-
iants, prices began to ease, falling below $75/barrel in De-
cember.
In 2021, the European gas market experienced considerable
volatility, caused by both supply and demand factors. In the
1st Half of the year, lower than average temperatures and
a heating season that lasted until May led to a progressive
depletion of gas inventories in Europe, with a consequent
increase in demand during the summer months.
On the supply side, however, LNG exports from the United
States have been attracted to the Asian market, further ex-
acerbating the commodity’s scarcity.
The rise in gas prices, combined with strong Chinese de-
mand, in turn led to an increase in coal prices, which peaked
at $231 per metric ton in October, before falling below $150
per metric ton in November following the reopening of a
number of mines in China, which eased supply-side strains.
Brent
API2
TTF
CO2
Copper
Aluminum
Nickel
$/barrel
$/ton
€/MWh
€/ton
$/ton
$/ton
$/ton
2021
71
120
46
53
9,310
2,472
18,461
2020
43
50
9
25
6,177
1,704
13,787
Change
65.1%
-
-
-
50.7%
45.1%
33.9%
The prices of CO2 in the ETS are also increasing, following
the strong commitment expressed by the European au-
thorities, culminating in the approval in July of the “Fit for
55” package, an expression of the desire to reduce CO2
emissions by at least 55% by 2030. Expectations of rising
prices, combined with strains in the gas market and the in-
crease in speculative positions in this market, produced an
increase in the price of the commodity, which at the end of
December stood above €80/ton.
Similarly to developments in energy commodities, 2021
was a very volatile year, characterized by sharp increases
in the prices of the main industrial metals as well. The re-
sumption of post-COVID-19 economic activities and the
launch of investment and recovery plans focused on the
energy transition around the world have driven the de-
mand for metals up sharply.
At the same time, metal supply, which is intrinsically inelas-
tic and affected by availability problems and logistical and
transport bottlenecks, has not managed to keep pace with
the growth in demand, generating scarcity on the market
with a consequently large increase in prices.
For copper and aluminum, after the highs reached during
the year (over $10,000/ton in May for copper and around
$3,000/ton in October for aluminum), prices appear to
have stabilized during the last quarter, albeit at a high level,
with less strained market fundamentals looking forward.
Similarly, after the peaks recorded in the 3rd Quarter of 2021,
demand for steel has declined, reflecting both the slowdown
in the Chinese economy and the environmental and energy
limitations that have slowed down production at foundries in
the Far East. All these factors paved the way for a substantial
stabilization of prices in the final months of the year.
Finally, as regards metals used in batteries, in particular nick-
el, lithium and cobalt, prices rose steadily throughout the
year, driven by strained market fundamentals, in particular
demand from the electric vehicle and general energy sec-
tors, which has not shown any signs of slowing down.
Please see the section “Fighting climate change and ensur-
ing environmental sustainability” for an analysis of the circular
management of commodities linked to the energy transition.
76
76
Integrated Annual Report 2021
Electricity and natural gas markets
Electricity demand
Developments in electricity demand(1)
TWh
Italy
Spain(2)
Romania
Russia(3)
Argentina
Brazil
Chile
Colombia
2021
319.3
256.4
62.2
820.1
138.7
609.0
81.5
74.1
2020
302.8
250.1
59.3
778.6
131.7
586.6
77.7
70.4
Change
5.4%
2.5%
4.9%
5.3%
5.3%
3.8%
4.9%
5.3%
(1) Gross of grid losses.
(2) National data.
(3) Europe/Urals.
Source: Enel based on TSO figures. The figures are the best estimate available at the publication date and could be revised by TSOs in the coming months.
The year 2021 was characterized by a broad recovery in
electricity consumption, which returned to pre-pandemic
levels in most of the countries in which we operate.
In Italy, electricity demand grew by 5.4%, thanks to the
gradual reopening of various sectors of the economy.
Spain also recovered, registering a rise of 2.5% compared
with 2020, although demand remains below pre-pandemic
levels (-2.9% compared with 2019). This difference is due
to the slower recovery to normal economic activity, which
dampened demand in the services sector, combined with
summer temperatures that were below the seasonal av-
erage.
The high prices of electricity recorded in Europe in the
4th Quarter nevertheless had an impact on industrial con-
sumption, and demand destruction is also expected in the
1st Quarter of 2022 given the current tensions in the Eu-
ropean markets.
Consumption also increased in Russia and Romania, by
5.3% and 4.9% respectively.
Similar developments were recorded in Latin America,
where electricity demand grew by an average of 4.8%.
Growth was particularly rapid in Argentina (+5.3%), Colom-
bia (+5.3%) and Chile (+4.9%); in the latter country, demand
had also grown in 2020, albeit only very slightly (+0.8%).
Electricity prices
Electricity prices
Italy
Spain
Average baseload
price 2021
(€/MWh)
Change in average
baseload price
2021-2020
Average peakload
price 2021
(€/MWh)
Change in average
peakload price
2021-2020
125.0
111.5
86.1
77.5
139.8
120.8
95.2
84.8
Electricity prices in Italy and Spain rose sharply compared
with 2020, reflecting the rise in prices on commodity
markets in 2021.
More specifically, the sharp increase in the price of gas,
together with a decline in output from renewable sourc-
es and maintenance at a number of nuclear power plants
in Europe, caused power prices in Italy and Spain to in-
crease by more than 220% compared with 2020, reaching
record highs in the 4th Quarter of 2021. The strains on
electricity prices recorded at the end of 2021 are expect-
Reference scenario
77
77
ed to continue in 2022.
The following table provides an overview of prices in
end-user markets by main consumption segment.
Price developments in the main markets
Eurocents/kWh
End-user market (residential)(1)
Italy
Romania
Spain
End-user market (industrial)(2)
Italy
Romania
Spain
(1) Annual price net of taxes - annual consumption of between 2,500 kWh and 5,000 kWh.
(2) 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
2021
2020
Change
0.1432
0.1115
0.1358
0.0939
0.0824
0.0931
0.1357
0.1043
0.1219
0.0867
0.0869
0.0834
5.5%
6.9%
11.4%
8.3%
-5.2%
11.6%
2021
75.0
32.5
2020
70.0
31.0
Change
5.0
1.5
7.1%
4.8%
The resumption of activity in various sectors of the econ-
omy, combined with a particularly long and severe winter
in the Northern hemisphere, drove global demand for gas
in 2021.
In Italy and Spain, demand grew by 7.1% and 4.8% respec-
tively.
Natural gas demand in Italy
Billions of m3
Distribution grids
Industry
Thermal generation
Other(1)
Total
2021
33.4
14.0
25.9
1.7
75.0
2020
Change
31.0
13.0
25.0
1.0
70.0
2.4
1.0
0.9
0.7
5.0
7.7%
7.7%
3.6%
70.0%
7.1%
Includes other consumption and losses.
(1)
Source: Enel based on data from the Ministry for Economic Development and Snam Rete Gas.
In Italy, demand increased by 7.1% compared with 2020,
with a particularly strong rise in the distribution grid (+7.7%)
and industrial (+7.7%) sectors, attributable to the greater
demand for gas for heating and industrial production. The
recovery in thermal generation (+3.6%) was less marked,
but still significant.
78
78
Integrated Annual Report 2021
Climate change and long-term scenarios
Enel promotes transparency in its climate-change disclo-
sures and works to demonstrate to its stakeholders that
it is tackling climate change with diligence and determi-
nation. Enel has publicly committed to adopting the rec-
ommendations of the Task Force on Climate-Related Fi-
nancial Disclosures (TCFD) of the Financial Stability Board
and to following all published updates. The Group is also
taking on board the “Guidelines on reporting climate-re-
lated information” published by the European Commission
in June 2019, which, together with the TCFD recommenda-
tions and the GRI standard, constituted the main frame-
Scenario analysis
Analysis of the evolving external conditions is a funda-
mental component of Enel’s strategy. In today’s complex
world and faced with uncertainty about the future, defin-
ing a solid and resilient strategy is crucial to the creation
of value for all stakeholders. Therefore, Enel’s strategic
planning process begins with an analysis of the evolving
external landscape, with a particular emphasis on climate
change and the energy transition. To this end, the Group
adopts a structured approach to scenario analysis in or-
der to maximize opportunities and mitigate risks.
Scenario-based planning involves defining “alternative
futures” based on a number of key uncertainty variables,
such as achieving the goals of the Paris Agreement or the
development of technology. Compared with forecasting,
scenario analysis provides greater flexibility and enables
us to prepare for handling risks and seizing opportuni-
ties. Forecasting, on the other hand, seeks to understand
the future based on past trends, so it cannot anticipate
changes, risks or significant uncertainties.
At Enel, scenario analysis is used in planning, the alloca-
tion of capital, strategic positioning, and the assessment
of risks and of strategy resilience. The preparation of sce-
narios helps companies to make strategic decisions un-
der complex, uncertain conditions by exploring plausible
work for the Group’s reporting on climate change issues in
2021. Enel has been involved in a working group to develop
specific recommendations to support the implementation
of the TCFD guidelines concerning scenario analysis. The
TCFD Advisory Council worked on the scenarios in 2020
and, since then, Enel has been involved in various initia-
tives of scenario analysis, sharing our experience in order
to support the increasingly widespread and transparent
implementation of this practice among a growing number
of organizations.
alternative futures, designing various paths forward with
different timing and options for mitigation, and conduct-
ing risk-based analyses in order to challenge our strate-
gic thinking.
In 2021, the scenario framework was defined by way of
a specific workstream to support the decision-making
process (“strategic dialogue”). The topic was analyzed in
dedicated workshops with senior management that fo-
cused on identifying the primary trends, disruptions, fu-
ture uncertainties and potential scenario narratives.
Within the scope of defining Enel’s long-term scenarios,
the mid- and long-term trends identified were then ana-
lyzed in depth, and the results of this analysis were sum-
marized in an Industry View document for internal use.
Designed to support the decision-making process, this
document provides an overview of the structural forces,
macro-trends, potential disruptions, and technologies that
have an impact on the development of the industry and
the economy and describes the potential impact on the
Company’s business. As a result, it provides a framework
for the definition of actions aimed at guiding, preventing,
and adapting to changes in our various businesses, as well
as at seizing related opportunities and developing a great-
er awareness of the risks involved.
Reference scenario
79
79
Structural
forces
3 macro-level
structural factors
People
Planet
Prosperity
Emerging trends
and disruption
Scenario
narratives
10 key factors
that delineate the long-term
outlook for our industry. They may
be affected by greater or lesser
uncertainty but their common
feature is high expected impact.
3 narratives
to capture the evolution of trends
and uncertainty. They are the
foundation of our long-term
planning and the assessment
of risks and opportunities in
alternative scenarios. They are a
starting point for ”what-if” analysis.
Technologies
10 areas
Ideas for the future
5 suggestions for further analysis
Benchmarking and analyses were also conducted on the
external energy-transition scenarios, which, together with
an analysis of relevant reports on trends in the economy, in
commodities, and in climate, have fed the internal model
in order to define the assumptions for the long-term sce-
narios.
Analysis of trends
and uncertainties
Analysis of external
scenarios and
benchmarking
Macroeconomic,
financial and climate
analysis and forecasting
Analysis of key trends and
distruptions that drive
the scenarios, creating a
“library” of trends that fuel
our strategic dialogue and
scenario planning.
Collection and analysis of key
available scenarios, comparing
their main features.
Processing data for use in
scenario planning based on
internal models and analysis
of performance data and
indicators from key reports.
Internal Enel scenarios
Full vision of macroeconomic, financial, energy and
climate variants.
80
80
Integrated Annual Report 2021
Within this framework, each scenario narrative has been
prepared so as to ensure consistency between the ener-
gy-transition scenarios and the climate scenarios, based
on which the acute and chronic physical phenomena are
analyzed.
This benchmarking of external scenarios is a key starting
point in order to build robust internal scenarios. There are
many global energy-transition scenarios published by var-
ious providers and designed for a wide range of purposes,
from government planning to the support of enterprise
decision-making processes. Benchmarking entails analyz-
ing the scenarios produced by the external organizations
in order to compare results in terms of the energy mixes,
trends in emissions, and technology decisions and to iden-
tify the main drivers of the energy transition for each.
Global energy scenarios are typically grouped by family
based on the degree of climate ambition, as follows:
• Business-as-usual/Stated-policies scenarios:
these
provide a fairly conservative benchmark for the future
and represent how the energy system would evolve in
the absence of additional climate and energy policies.
These scenarios do not manage to achieve the goals of
the Paris Agreement.
• Paris-Aligned scenarios: these include a goal of limiting
the increase in average global temperatures ”well below
2 °C” above pre-industrial levels. In order to achieve this
goal, this family of scenarios consider new, more ambi-
tious policies for the electrification of end uses and for
the development of renewables.
• Paris-Ambitious scenarios: global energy scenarios that
take a path towards net-zero greenhouse gas emissions
by 2050, in line with the most ambitious of the Paris
Agreement goals, i.e., to stabilize the average increase
in global temperatures within 1.5 °C. All scenarios in this
family are in agreement that the primary drivers of the
energy transition to net zero by 2050 are the electri-
fication of end uses and increasing the generation of
renewable energy over the medium and long term. How
they differ is in the additional solutions needed over the
long term to close the gap towards the goal of net-ze-
ro emissions, in that they assign different relevance to
the contributions of the various technologies and to the
changes in consumer behavior.
GtCO2
35
30
25
20
15
10
5
0
2010
Scenarios considered:
Consensus:
High
Low
Range
Consensus
25-27%
≥50% of
sales
10-12 TW
2020
2030
2040
2050
Source: IEA (2021) Net-Zero by 2050; BNEF (2021), New Energy Outlook; IRENA
(2021); 1.5 Scenario.
Consensus
Range
~50%
~100% sales EV
25-46 TW
Hydrogen demand
500-1,000 MtH2
Behavioral changes
and circularity
CCS/CCUS, DAC
Nuclear
None - High impact
0-7 GtCO2/year
0.4-7 TW
Reference scenario
81
81
In general, a systematic analysis of the various scenarios
found that the response to the most challenging scenari-
os for climate change mitigation efforts involves a greater
penetration of electrification and renewable energy.
)
%
(
e
t
a
r
n
o
i
t
a
c
fi
i
r
t
c
e
E
l
50
45
40
35
30
25
20
15
20
Red
NZE
1.5C
Green
Energreen
SDS
Enerblue
PES
Enerbase
2019 level
STEPS
Base
30
40
50
60
70
80
90
100
Renewable generation (%)
Temperature increase
NZ@2050/~1.5 °C
≤2 °C
>2 °C
To 2050 | Graphic source: internal processing based on IEA (2021), World Energy Outlook 2021 | BNEF (2021), New Energy Outlook | IRENA (2020), Global Renew-
ables Outlook | IRENA (2021), World Energy Transition Outlook.
One climate scenario, multiple energy-transition scenarios
An energy-transition scenario represents how the contri-
bution of the various energy sources might evolve within
a specific economic, social, regulatory and policy context
and based on the technology options available. Social and
macroeconomic assumptions determine the service de-
mand, while the regulatory, policy and cost restrictions
define the optimal mix of technologies needed to meet
that demand. Each scenario is associated with a trend in
greenhouse gas emissions.
A given long-term result in terms of temperature increase
may be associated with various trends in greenhouse gas
emissions and, therefore, to more than one transition sce-
nario. Each energy scenario is associated, more or less
strictly, to a specific climate trajectory defined by the Inter-
governmental Panel on Climate Change (IPCC) and, conse-
quently, to a range of temperature increases estimated to
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82
Integrated Annual Report 2021
a certain degree of likelihood over a given period of time.(7)
In turn, various increases in global temperatures by 2100
(and, therefore, various future scenarios of global warming)
also change the trends in the other climate variables (e.g.,
rainfall, wind, etc.), causing changes in the intensity and
frequency of the physical manifestations (e.g., heat waves,
extreme rainfall, etc.). It should be underscored that these
changes affect the entire globe, but the physical manifes-
tations vary at the regional and local level.
That said, a global energy scenario is said to be Par-
is Aligned when the overall result, in terms of trends in
greenhouse gas emissions, may be associated with an av-
erage increase in global temperatures that is in line with
the Paris Agreement objective of “holding the increase in
the global average temperature to well below 2 °C above
pre-industrial levels and pursuing efforts to limit the tem-
perature increase to 1.5 °C”.(8)
Enel’s long-term scenarios
The issues associated with the industrial and economic
transition towards solutions to reduce atmospheric con-
centrations of CO2 are the characteristic elements of the
“energy-transition scenario”, while the issues connected
with future trends in climate variables (in terms of acute
and chronic manifestations) define the “physical scenario”.
The scenarios are constructed within an overall framework
that ensures consistency between transition assumptions
and climate projections.
Granularity
& extended
geographical
coverage
Forward-looking
metrics & KPIs
Automation and
advanced analytical
techniques
Integration of
interdependencies
Open databases
available to
stakeholders
Macro-Finance
More than 150
countries monitored
for analysis of
country risk and
macroeconomic-
financial scenarios
Monitoring of market
expectations and
sensitivity analysis
of new social and
technology paradigms
General equilibrium
models and machine-
learning techniques to
manage big data
Incorporation of social-
environmental effects
in analysis to quantify
effects of actions taken
(e.g., TSI)
Periodic updating on
interactive platforms
with optimization for
graphical analysis
Energy
Climate
Integrated
System Models
Broad coverage
of market and
geographical indicators
and starting-point
focus areas
Monitoring of trends in
electricity demand and
price volatility. With
analysis of regulatory
and transition impacts
Climate scenario
data available with
worldwide high-
resolution coverage
Standard and/or ad
hoc metrics to assess
developments in
future scenarios
Main countries of
interest for Enel.
Developed to manage
integrated business
models
Development of
scenarios by economic
sector to identify
trends in electrification
and efficiency
Econometric models
and neural networks to
produce forecasts
Impact analysis with
exogenous variables
(macroeconomic and
climate)
Development of
integrated database
updated automatically
Analytics and machine
learning to manage
georeferenced big
data in downloadable
cloud environments
Use of system models
to optimize the use
of technologies to
minimize emissions
and costs
Integration of exposure
data (e.g., demographic
density, asset location/
value)
Platforms for sharing,
visualizing and
downloading results
Integrated
management of both
energy supply and
demand
Technology database
for each service: types
of electric vehicles,
heat pumps, etc.
The acquisition and processing of the large volume of data
and information needed to define the scenarios, and the
identification of the methodologies and metrics necessary
to interpret phenomena that are complex and – in the case
of climate scenarios – at very high resolution, require a con-
tinuous dialogue with both external and internal sources.
In order to evaluate the effects of physical and transitional
phenomena on the energy system, for example, the Group
makes use of models that, for each country analyzed, de-
scribe the energy system in terms of specific technological,
socio-economic, policy and regulatory aspects.
(7) For example, the scenario SSP1-1.9 (which includes the assumptions of the scenario SSP1 and the RCP 1.9 climate forecasts), which predicts an immediate
decline in climate-altering emissions to reach net-zero emissions by around 2050, followed by net negative emissions, leads to an estimated average in-
crease in global temperatures of 1.4 °C by 2081-2100, with a “very likely” (i.e., with a probability of 90 to 100%) range of average temperature increase of 1.0
to 1.8 °C. The SSP1-2.6 scenario considers a slower reduction in emissions, reaching net-zero emissions in the second half of the century, and is associated
with a best-estimate average increase in global temperatures of 1.8 °C by 2018-2100, with a very likely range of 1.3 °C - 2.4 °C.
(8) Paris Agreement, published in the Official Journal of the European Union.
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22016A1019(01)&from=EN.
Reference scenario
83
83
The adoption of these scenarios and their integration into
corporate processes take account of the guidelines of the
TCFD and enable the assessment of the risks and opportu-
nities connected with climate change.
The process that translates scenario phenomena into use-
ful information for industrial and strategic decisions can
be summarized in five steps:
Impact
assessment
FIV
E
S
T
E
P
S
5
1
4
2
3
Identification of trends and factors relevant
to the business (e.g., electrification of
consumption, heat waves, etc.)
Development of link functions connecting
climate/transition scenarios and operating
variables
Identification of risks and opportunities
Calculation of impacts on business (e.g.,
change in performance, losses, capex)
Strategic actions: definition and
implementation (e.g., capital allocation,
resilience plans)
1
2
3
4
5
Enel’s energy-transition scenarios
A transition scenario describes how energy generation and
consumption evolve in the various sectors in a specific eco-
nomic, social, policy and regulatory context, and this corre-
sponds to a trend in greenhouse gas (GHG) emission.
The main assumptions considered in developing the ener-
gy-transition scenarios concern:
• the local policies and regulatory measures to combat
climate change, such as measures to reduce carbon
dioxide emissions and the consumption of fossil fuels,
to increase energy efficiency, and to decarbonize the
electricity sector;
• the global macroeconomic and energy context (for ex-
ample, gross domestic product, population and com-
modity prices), considering international benchmarks
including those produced by the International Energy
Agency (IEA), Bloomberg New Energy Finance (BNEF),
the International Institute for Applied Systems Analysis
(IIASA)(9) and others;
• the evolution of energy production, conversion and
consumption technologies, in terms of both technical
operating parameters and costs.
In 2021, Enel revised the framework of medium- and long-
term energy-transition scenarios and defined three alterna-
tive scenario narratives.
• Paris scenario - Calls for achieving the objectives of the
Paris Agreement, so it is a level of climate ambition that
is significantly higher than business as usual. The greater
ambition is supported by greater electrification of energy
consumption and a growing development of renewables.
• Slow Transition scenario - Characterized by a slower en-
ergy transition that does not achieve the objectives of the
Paris Agreement. This scenario involves a slower increase
in renewables and in the electrification process than that
of the Paris scenario, particularly over the short term (i.e.,
delays in implementation of the energy transition).
• Best Place scenario - Designed to test assumptions that
improve upon the Paris scenario. Here, too, the objec-
tives of the Paris Agreement are achieved, but the sce-
nario considers a wider range of technology options,
such as a greater penetration of green hydrogen (i.e.,
produced using renewable energy) used more widely in
hard-to-abate sectors, thereby facilitating the decar-
bonization process towards net-zero emissions.
At Enel, we have selected the Paris scenario, which calls for
achieving the Paris Agreement objectives, as the bench-
(9) As regards the IIASA, for example, we have considered the fundamentals of commodity demand and the population underlying the Shared Socioeconomic
Pathways (SSPs), which project different scenarios describing socioeconomic developments and policies consistent with climate scenarios. The information
from the SSPs is used, together with the internal modeling, to support long-term forecasts, such as those for commodity prices and electricity demand.
84
84
Integrated Annual Report 2021
mark for long-term planning, unlike last year when the
benchmark was the Stated-policies scenario. We did this
on the belief that the world’s governments, businesses,
organizations, and people will work together effectively to
mitigate greenhouse gas emissions. The increased com-
mitment to net-zero emissions in 2021 among nations that
currently account for 88% of global emissions(10) and the
success of COP26 support the decision to select a sce-
nario that achieves the Paris objectives as Enel’s long-term
benchmark. As for the possibility of assuming achievement
of the more challenging Paris Agreement objective, i.e., to
stabilize average global temperatures to within +1.5 °C, as
a benchmark for long-term planning, there remain evident
uncertainties that a number of countries could remain on
business-as-usual trajectories, thereby slowing the decar-
bonization process towards net-zero emissions by 2050.
Given this external environment, the Enel Group imple-
ments a business model that is in line with the highest am-
bition of the Paris Agreement and so is consistent with an
increase in average global temperatures of 1.5 °C by 2100.
Enel has set a long-term objective of reaching zero direct
emissions (Scope 1) with fully renewable power generation
and zero emissions connected with the retail sale of ener-
gy (Scope 3).
The assumptions for trends in commodities prices feeding
the Paris scenario are consistent with the external scenari-
os that achieve the objectives of the Paris Agreement. More
specifically, we assume sustained growth in the price of CO2
through 2030, caused by a gradual reduction in the supply
of permits as demand increases, as well as stabilization in
the price of coal due to declining demand. As for gas, we
expect pricing pressures to lessen in the coming years as
we see a realignment between global supply and demand.
Finally, we are forecasting a gradual stabilization in oil prices,
with demand expected to peak by around 2030.
In the following tables, the values for “Enel scenario” repre-
sent the assumptions in the Group’s baseline scenario used
for various applications, including planning activities and
determining impairment.
Brent ($/barrel)
API2 ($/t)
~68
~70
~62
~72
~73
~67
~65
43.2
~45
50.3
Enel scenario
Average
benchmark(1)
Max
benchmark
Min
benchmark
2020(2)
2030
2020(2)
2030
CO2 EU - ETS (€/t)
~127
TTF (€/MWh)
~42
~95
~87
24.7
9.3
~53
~21
~20
~13
2020(2)
2030
2020(2)
2030
(1) Sources: IEA, Sustainable Development Scenario and Net-Zero Scenario; BNEF; IHS green case scenario; Enerdata green scenario. N.B. The scenarios used
as benchmarks have been published at various points throughout the year and may not be up to date with the latest market trends.
(2) Actuals.
(10) At December 28, 2021.
Reference scenario
85
85
The two alternative scenarios, i.e., Slow Transition and Best
Place, are used for strategic stress testing, risk assess-
ment, and the identification of business opportunities.
Analysis of the main components of the
transition scenarios
The Group analyzes energy-transition scenarios and de-
fines assumptions regarding trends in policy, technology,
commodities, and other macroeconomic variables.
Enel’s benchmark scenario, the Paris scenario, is based
on a decarbonization ambition that is in line with the ob-
jectives of the Paris Agreement, supported by a growing
electrification of energy consumption and the develop-
ment of renewable capacity.
Definition of the Paris scenario at the local level has been
set up based on two different approaches that vary based
on the availability of models fundamental to simulating
the long-term equilibrium of the entire energy system.
More specifically, in the primary countries in which we
have a presence and for which these models are avail-
able (i.e., Italy, Spain and Brazil at present), we have tak-
en a bottom-up approach, imposing an explicit limit on
the trend in CO2 emissions for the country. The values of
the scenario variables of relevance to the activities of the
Group (including electricity demand, electrification rates,
renewable and distributed-generation capacity, the
number of electric vehicles, and the production of green
hydrogen) have been calculated by the model over a time
horizon to 2050, in line with the limit on emissions and
with a view to minimizing costs for the system. For the
rest of the world, we have taken a top-down approach,
such that the variables of interest have been calculated
by way of analyses of consensus in relation to external
scenarios aligned with the objectives of the Paris Agree-
ment as provided by international accredited bodies.
These two different approaches have also been used to
define the alternative Slow Transition and Best Place sce-
narios at the local level.
Under the Paris scenario, European countries show a
downward trend in emissions consistent with the Euro-
pean “Fit for 55” package thanks to a greater electrifica-
tion of energy consumption supported by an increasing
contribution of renewables in the energy mix. More spe-
cifically, the Paris scenario for Italy, which is more ambi-
tious than the national plan currently in place, calls for an
increase in electrification to 28% by 2030 (vs. 22% in 2021)
and a level of renewable energy generation that can meet
70% of electricity demand (vs. about 55% under the Italian
national plan at the same date). Romania, too, sees an in-
crease in the electrification of energy consumption and in
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86
Integrated Annual Report 2021
the role of renewables in pursuing a more aggressive re-
duction in emissions compared with the current national
plan. For Spain, the ambition level defined under the na-
tional plan is in line with achievement of the Paris Agree-
ment objectives. As such, the Paris scenario calls for an
electrification rate of 29% by 2030 and development of
renewables capacity that would bring the percentage of
electricity demand met by renewable energy to over 80%.
For Brazil, the Paris scenario has been defined based on
the assumption of reaching the target of net-zero emis-
sions by 2050. For the remaining countries of interest to
the Group, the Paris scenario and the alternative scenar-
ios have been defined based on a consensus analysis of
the external scenarios available.
The Slow Transition scenario shows a lower ambition in
combating climate change, which translates into a slow-
er development of renewables and slower growth in
electrification at all levels. This scenario has been con-
structed based on the assumption that countries will re-
main essentially tied to the current national plans, where
these plans do not feature a climate ambition in line with
achieving the Paris Agreement objectives, or that the am-
bition, if high, is not supported by adequate implement-
ing policies. This latter case, for example, applies to Spain,
which, under the Slow Transition scenario, fails to meet
the ambition of the national plan due to delays in imple-
menting policies that would enable a greater penetration
of renewables and of other electricity technologies.
The Best Place scenario assumes a faster reduction in the
cost of technologies to produce green hydrogen. This,
then, translates into greater penetration of green hydro-
gen in the hard-to-abate sectors, at the expense of blue
and gray hydrogen (i.e., gas-fueled hydrogen production
with or without, respectively, the use of CCS technolo-
gies), resulting in an increase in electricity demand and
in the installation of renewables capacity in the countries
analyzed as compared with the Paris scenario.
With the help of fundamental system models, we have
also been able to estimate the impact of energy efficien-
cy measures on both energy consumption and trends in
electricity demand. We have also quantified the benefit
of electrification of the average household’s energy con-
sumption and transportation in terms of lower energy bills
and lower emissions. This analysis was done in relation to
an average Enel customer, which showed a higher degree
of electrification than the national average for the coun-
try in question as a result of Enel’s electrification strategy.
Finally, we have analyzed the impact of each scenario in
terms of the reduction in overall consumption of fossil fu-
els and energy dependency.
Within the scope of defining the scenario, we also devel-
oped a specific analysis of electric mobility in Latin Amer-
ica in order to determine the primary drivers of electrifi-
cation in end-user consumption. A number of countries
are working to promote electric mobility in the region:
Chile and Colombia, for example, have set specific tar-
gets for electric mobility and their governments are im-
plementing clear policies to promote growth in this mar-
ket. Most of the scenarios expect private-sector electric
mobility to take off in the region between 2025 and 2030,
when costs will become more competitive.
The physical climate scenario
Under the scenarios, the role of climate change is always
the most important and generates effects both in terms
of transitioning the economy towards net-zero emissions
and in terms of physical impacts, which may be:
• acute phenomena (heat waves, flooding, hurricanes,
etc.) and their potential impact on industrial assets;
• chronic phenomena related to structural changes in
the climate, such as the rising trend in temperatures,
rising sea levels, etc. which can bring about constant
changes, for example, in the output of generation
plants and in electricity consumption profiles in the
residential and commercial sectors.
The Group has selected three of the global climate path-
ways developed by the Intergovernmental Panel on Climate
Change (IPCC), which are in line with those of the IPCC’s
sixth assessment report (AR6). These scenarios are asso-
ciated with emission patterns linked to a level of the Rep-
resentative Concentration Pathway, each of which is con-
nected to one of the five scenarios defined by the scientif-
ic community as Shared Socioeconomic Pathways (SSPs).
The SSP scenarios include general assumptions concern-
ing population, urbanization, etc. The three physical sce-
narios analyzed by the Group are as follows:
• SSP1-RCP 2.6: compatible with a range of global warm-
ing below 2 °C from pre-industrial levels (1850-1900) by
2100 (the IPCC forecasts an average of about +1.8 °C
from 1850-1900 with a 44% likelihood of staying below
1.5 °C and 78% of staying below +2 °C (11)); in the analyses
that consider both physical and transition variables, the
Group associates the SSP1-RCP 2.6 scenario with the
Paris and Best Place scenarios.
• SSP2-RCP 4.5: compatible with an intermediate sce-
nario that calls for an average temperature increase
of about 2.7 °C by 2100 from pre-industrial levels. The
RCP 4.5 scenario is the one that is most representative
of the world’s current climate and political landscape
and correlated transition assumptions. This scenar-
io forecasts global warming in line with the estimates
of temperature increases that consider current policy
around the world;(12) in the analyses that consider both
physical and transition variables, the Group associates
the SSP2-RCP 4.5 scenario with the Slow Transition
scenario.
• SSP5-RCP 8.5: compatible with a scenario where no
particular measures to combat climate change are im-
plemented. This scenario forecasts an increase in global
temperatures of about +4.4 °C from pre-industrial levels
by 2100 (definitely above 3 °C and with a 62% likelihood of
being above 4 °C according to IPCC estimates).
The Group considers the RCP 8.5 scenario to a worst-
case climate scenario used to assess the effects of phys-
ical phenomena in a context of particularly significant cli-
mate change, but it is currently deemed not to be very
likely. The RCP 2.6 scenario is used both to assess phys-
ical phenomena and perform analyses that consider an
energy transition consistent with most ambitious mitiga-
tion objectives.
The analyses carried out for the physical scenarios con-
sidered both chronic and acute phenomena. For the de-
scription of specific, complex events, the Group consid-
ers data and analyses of public bodies, universities, and
private-sector entities.
The climate scenarios are global and must be analyzed
at the local level in order to determine their impact in the
areas of relevance to the Group. Among active partner-
ships, collaboration is under way with the Earth Sciences
Department of the International Centre for Theoretical
Physics (ICTP) in Trieste. As part of this collaboration, the
ICTP provides projections for the major climate variables
with a grid resolution of varying from about 12 km to 100
km and a forecast horizon running from 2020 to 2050.
The main variables are temperature, rain and snowfall,
and solar radiation. Compared with past analyses, current
studies are based on the use of multiple regional climate
models: the one of the ICTP along with five other simu-
lations, which have been selected as being representa-
tive of the set of climate models currently available in the
literature. The output of this set is representative of the
average of the various climate models. This technique is
usually used in the scientific community to obtain a more
robust and bias-free analysis, mediating the different as-
sumptions that could characterize the single model.
IPCC Fifth Assessment Report, Working Group 1, “Long-term Climate Change: Projections, Commitments and Irreversibility”.
(11)
(12) Climate Action Tracker Thermometer, estimates of global heating at 2100 considering existing policies and action, and 2030 targets only (November 2021
update).
Reference scenario
87
87
In this phase of the study, future projections have been
analyzed for Italy, Spain and all countries of interest to the
Group in South America, obtaining – thanks to the use
of the set of models – a more highly defined representa-
tion of the physical scenario. In the same way, the Group
is also analyzing data related to climate projections for
North America.
The ICTP is also providing science support to interpret all
other climate data we gather. We are using climate sce-
narios for the countries of interest to the Group to allow
for a homogeneous assessment of climate risk.
Some of these phenomena entail high levels of complex-
ity, as they depend not only on climate trends but also
on the specific characteristics of the territory and re-
quire further modeling to obtain a high-resolution rep-
resentation. For this reason, in addition to the climate
scenarios provided by ICTP, the Group also uses natural
hazard maps. This tool makes it possible to obtain, with
a high spatial resolution, recurrence intervals for a series
of events, such as storms, hurricanes and floods. As de-
scribed in the section “Risks and strategic opportunities
associated with climate change”, these maps are widely
used within the Group, which already uses historical data
to optimize insurance strategies. In addition, work is un-
der way to be able to take advantage of this information
developed in accordance with climate scenario projec-
tions.
Finally, the Group has acquired the tools and capabilities
needed to autonomously gather and analyze the raw out-
put published by the scientific community, so as to have
a global, high-level view of the long-term trends in the
climate variables of interest to us. These sources include
the output from the climate and regional models CMIP6(13)
and CORDEX(14). CMIP6 is the sixth assessment of the
Coupled Model Intercomparison Project (CMIP), which
is a project of the World Climate Research Programme
(WCRP) and of the Working Group of Coupled Modelling
(WGCM), which provides raw climate data from global cli-
mate models. These are used to assess standard global
measurements at a resolution of about 100x100 km. The
Coordinated Regional Climate Downscaling Experiment
(CORDEX) also falls within the scope of the WCRP and
generates regional climate forecasts at a higher resolu-
tion.
Physical scenario analysis - Integration
of climate scenarios within the Open
Country Risk model
In addition to using high-resolution data to analyze the
impact of physical phenomena, the Group has also de-
signed a higher-level analysis framework that enables us
to obtain a country-level assessment of trends in cer-
tain global climate hazards in a manner that is consist-
ent across all regions. More specifically, we have adopted
a modular approach that will enable us to progressively
upgrade our analyses by including new physical phenom-
ena and refining both the data and our methodologies.
At present, four climate phenomena are included: two
related to extreme temperatures; one related to intense
rainfall; and one related to drought. The phenomena are
assigned a numerical index based on the global distribu-
tion to a resolution of about 100x100 km and are sum-
marized in a composite index. This has enabled us to in-
clude a dimension related to climate change in the Open
Country Risk model. This enables the tool to include both
the aspects considered by the Country Risk models and
those aspects related to the physical risks considered in
the model as a cause of environmental and economic
stress in a given country. The Open Country Risk model is
described in greater detail in the section “Macroeconom-
ic and geopolitical trends”.
Physical scenario analysis - Italy
Acute phenomena: for Italy, we first analyzed the phe-
nomenon of acute rainfall to study the change in daily
rainfall above the ninety-fifth percentile, calculated as
average millimeters per year for the periods of analysis.
As shown in the left-hand figure below, comparing 2030-
2050 with the historical period 1990-2020, under the RCP
2.6 scenario, intense rainfall is forecast to increase, above
all, in the northeast and significantly along the Tyrrhenian
coastline. It is interesting to note that, under the RCP 2.6
scenario, this general increase in extreme rainfall is ac-
companied by a slight decrease in the annual total of daily
rainfall excluding the acute phenomena (see right-hand
figure). Under the other scenarios (RCP 4.5 and 8.5), too,
we see the same dichotomy between intense and aver-
age rainfall.
(13) https://www.wcrp-climate.org/wgcm-cmip/wgcm-cmip6.
(14) https://cordex.org/.
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Integrated Annual Report 2021
Acute rainfall and average rainfall (i.e., total rainfall net of acute rainfall):
difference between RCP 2.6 (2030-2050) and historical values (2000-2020)
Acute
rainfall - RCP 2.6
Average
rainfall - RCP 2.6
∆%
∆%
(-8) • (-5)
(-5) • 0
0 • 5
5 • 10
10 • 15
15 • 20
(-6) • (-3)
(-3) • 0
0 • 3
As seen in previous analyses published by the Group,
heat waves and fire risk will change significantly, both in-
creasing under the various climate scenarios considered.
Fire risk is described by the Fire Weather Index (FWI), an
indicator widely used internationally that takes account
of temperature, humidity, rainfall, and wind in order to
calculate an estimate of fire risk. Figures provided by the
ICTP may be used to describe the trend in fire risk in or-
der to support the business in properly managing this
risk. Studies that examine the changes in the 2030-2050
forecasts compared with 1990-2010 show that, under all
scenarios, there is an increase in the number of high-risk
days (index > 45) in summer. This change mainly impacts
the islands and southern Italy, where the increase in high-
risk days goes from about +6 to +8 days compared with
historical values.
Chronic phenomena: chronic temperature changes can
be analyzed to obtain information about the potential ef-
fects on the cooling and heating demand of local energy
systems. As was done in 2020, to measure the thermal
requirement are 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 Tinternal (assumed to be 21 °C), respec-
tively, for heating and cooling requirements. The analysis
for Italy has been refined both by increasing the number
of models considered, from 3 to 6, and by increasing data
resolution, from about 50x50 km to 12x12 km. The coun-
try averages have been calculated as an average over the
country, weighting each geographical node by population
thanks to the use of the Shared Socioeconomic Pathways
(SSPs) associated with each RCP scenario. In 2030-2050,
the heating requirement is expected to decrease from 7%
to 15% compared with 2000-2020 under the various sce-
narios, while CDDs are always greater than historical data,
with an increasing trend going from the RCP 2.6 scenario
(~+50%) to RPC 8.5 (~+100%).
CDD and HDD Italy: differential
between RCP (2030-2050) and
historical values (2000-2020)
100%
74%
49%
-7%
-11%
-15%
SSP1-RCP 2.6
SSP2-RCP 4.5
SSP5-RCP 8.5
Heating Degree Days (HDD)
Cooling Degree Days (CDD)
With regard to rainfall, changes in the areas of interest for
the Group’s hydroelectric power generation have been
analyzed. A preliminary analysis points to no significant
change, with a generalized slightly downward trend in
southern Italy and a slight increase in the north under the
RCP 2.6 and RCP 4.5 scenarios.
Reference scenario
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89
Physical scenario analysis - Spain
Acute phenomena: as regards fire risk, the number of days
at extreme risk (i.e., Fire Weather Index > 45) is higher in the
RCP 8.5 scenario than in the RCP 2.6 scenario, and is al-
ways greater than the historical average. The south-central
region of Spain is expected to see the greatest increase in
average number of days of high fire risk per year in sum-
mer under all future scenarios.
Increase in average number of days of high fire risk per year in summer under the various RCP
scenarios compared with historical values (2000-2020)
RCP 2.6
RCP 2.6
RCP 4.5
RCP 4.5
RCP 8.5
RCP 8.5
∆ days
FWI > 45
(-1) • 0
(-1) • 0
0 • 2
0 • 2
2 • 4
2 • 4
4 • 6
4 • 6
6 • 8
6 • 8
8 • 10
8 • 10
10 • 12
10 • 12
12 • 14
12 • 14
As seen in previous analyses published by the Group, heat
waves are expected to be more widespread geographi-
cally and more frequent in 2030-2050, particularly in the
southern regions of the country.
Extreme rainfall will change in frequency throughout
most of Spain. A preliminary analysis that looked at days
of average annual rainfall in millimeters above the nine-
ty-fifth percentile pointed to a reduction in certain areas
of southern Spain even under the RCP 2.6 scenario.
Chronic phenomena: the analysis of heating and cooling
needs has been refined and updated in the same man-
ner as for Italy. For the period 2030-2050, compared with
1990-2020, we estimate a reduction in Heating Degree
Days (HDDs) under all scenarios within a range of -8% un-
der RCP 2.6 to -17% under RCP 8.5. The data also confirms
the increase (+35%) in Cooling Degree Days (CDDs) under
the RCP 2.6 scenario and increases of 58% and 81%, re-
spectively, under the RCP 4.5 and RCP 8.5 scenarios.
CDD and HDD Spain: differential
between RCP (2030-2050) and
historical values (2000-2020)
81%
58%
35%
-8%
-12%
-17%
SSP1-RCP 2.6
SSP2-RCP 4.5
SSP5-RCP 8.5
Heating Degree Days (HDD)
Cooling Degree Days (CDD)
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Integrated Annual Report 2021
With regard to rainfall, changes in the areas of interest for
the Group’s hydroelectric power generation have been
analyzed. According to a preliminary analysis, the figures
do not change significantly when comparing 2030-2050
to 1990-2009, pointing to a generalized slight downward
trend in southern Spain under all scenarios.
Physical scenario analysis - Latin America
Acute phenomena: for very large countries such as Brazil,
the trend in acute phenomena can differ significantly in the
various areas of the country. To have a holistic view of the
entire continent and identify the areas of greatest interest
for our studies, we have analyzed a number of acute phe-
nomena using standard indicators. The analyses have been
based on data from a set of 6 climate models at a spatial
resolution of 25x25 km.
In order to study the phenomenon of extreme tempera-
tures, we have used the Warm Spell Duration Index (WSDI),
which considers heat waves of at least 6 consecutive days
with an average daily high above the ninetieth percentile.
Comparing 2030-2050 with 1990-2020, the figures point
to a significant increase in heat waves even under the RCP
2.6 scenario, particularly in certain areas of Brazil, in Co-
lombia, in Peru, and in northern Chile. This increase in ex-
treme temperatures is expected to be even more accentu-
ated under the other scenarios, particularly RCP 8.5.
Warm Spell Duration Index (heat stress): difference between RCP (2030-2050) and historical
values (2000-2020)
RCP 2.6
RCP 4.5
RCP 8.5
∆ days
0 • 10
10 • 20
20 • 30 30 • 40 40 • 50 50 • 60 60 • 100
With regard to extreme rainfall, we have considered daily
rainfall above the ninety-fifth percentile, as was done for
Italy and Spain. Future changes in this phenomenon vary
to a greater degree. Under the RCP 2.6 scenario, certain
areas, such as northern Brazil and northern Argentina, are
expected to see declines, whereas other areas, such as
western Colombia and certain areas of Brazil and Peru, are
expected to see increases in extreme rainfall.
Chronic phenomena: for the major countries in which
we have a presence, we studied the potential changes in
heating and cooling needs related to chronic temperature
changes. Here, too, we calculated the changes in Heat-
ing Degree Days (HDDs) and Cooling Degree Days (CDDs)
for 2030-2050 compared with 1990-2020 based on data
from 6 models at a resolution of 25x25 km. The country
averages have been calculated as an average over the
country, weighting each geographical node by population
using the Shared Socioeconomic Pathways (SSPs) associ-
ated with each RCP scenario. In each country studied, the
CDDs increase progressively across all scenarios: under
the RCP 2.6 scenario, they increase by 42% in Chile, but by
only 14% and 19% in the other countries considered. Under
the RCP 4.5 scenario, the increases become 108% in Chile
and just over 25% for Argentina, Brazil and Peru, settling at
20% for Colombia. The increase in CDDs compared with
the historical values is even more significant under the RCP
8.5 scenario. As for HDDs, the RCP 2.6 scenario forecasts
considerable reductions in Colombia (-51%), Brazil (-21%),
and Peru (-15%). This trend is even greater under the RCP
4.5 scenario: ~-61% in Colombia; ~-28% in Brazil; and
~-20% in Peru.
Reference scenario
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91
CDDs and HDDs in the countries of interest to the Group: difference between RCP 2.6 and
historical values (2000-2020)
Cooling Degree Days
(CDD) - RCP 2.6
Heating Degree Days
(HDD) - RCP 2.6
∆%
∆%
10 • 15
15 • 20
20 • 25
25 • 30
30 • 35
35 • 40 40 • 45
(-60) •
(-50)
(-50) •
(-40)
(-40) •
(-30)
(-30) •
(-20)
(-20) •
(-10)
(-10) •
(-0)
With regard to rainfall, changes in the areas of interest for
the Group’s hydroelectric power generation have been
analyzed. Initial analyses, which compare 2030-2050 fore-
casts under the three scenarios with the historical period
1990-2009, show a prevalent downward trend in chronic
rainfall. The most significant average reductions are ex-
pected to be seen in Chile and Colombia, at just under
10%. A closer look at the averages for Chile shows that, in
the areas considered, the expected rainfall for 2030-2050
is in line with the rainfall experienced over the last decade
(2010-2019). These figures show how, in these areas, we
are already seeing climate change compared with the his-
torical period used as a benchmark.
Overall effect of the transition and physical
scenarios on electricity demand
Italy and Spain
The use of integrated energy system models makes it
possible to quantify the individual service demand of a
country. This level of detail therefore makes it possible to
discriminate the specific effects that a change in temper-
ature can have on energy requirements. For this purpose,
the Paris, Slow Transition, and Best Place transition sce-
narios described above have been expanded to include
the effect that temperature increases, measured in terms
of Heating Degree Days (HDDs) and Cooling Degree Days
(CDDs) as discussed above, have on (total, not just electric-
ity) energy demand for residential and commercial heat-
ing and cooling. By defining a strategic base scenario in
line with achieving the Paris objectives and with Europe’s
commitment to reduce greenhouse gas emissions,(15) we
were able to associate HDDs and CDDs consistent with the
RCP 2.6 scenario with the Paris and Best Place scenarios,
while those that are consistent with the RCP 4.5 scenario
are associated with the Slow Transition scenario. For fur-
ther stress testing, this latter scenario was also associated
with the RCP 8.5 scenario. Given current policy and the Eu-
ropean Union’s keen focus on achieving carbon neutrali-
ty by 2050, all three scenarios (i.e., Paris, Slow Transition,
and Best Place) for Italy and Spain converge on this result.
However, the Slow Transition scenario, as specified above,
is associated with a different, higher RCP because it cor-
responds to a slower downward trend in greenhouse gas
emissions. As concerns the effect of the transition con-
(15) European Commission - Fit for 55: https://www.consilium.europa.eu/en/policies/green-deal/eu-plan-for-a-green-transition/.
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Integrated Annual Report 2021
sidered on its own, the greater speed in achieving carbon
neutrality under the Paris scenario makes it, on average, a
more electrified scenario than the Slow Transition, which
points to lower average figures for electricity demand of
2031-2050 of about 2% for Italy and 1.5% for Spain. In turn,
as mentioned, the crucial role that green hydrogen will play
under the Best Place scenario is expected to lead to elec-
tricity demand far above the Paris scenario, of 19% for Italy
and 15% for Spain.
Similarly to the previous year, the speed of the energy
transition has had a much greater impact on electricity
demand than the increase in temperature as a result of
climate change. Decarbonization policies, together with
technological innovation, social responsibility, and con-
sequent changes in consumer behavior, will play an active
role in trends in electricity demand and in the energy mix
generally. However, analysis makes it clear that an increase
in temperature as a result of climate change will lead to
an increase in electricity demand, even if limited within a
range of one percentage point for both Italy and Spain.
Considering the integrated view, the potential effect of
more ambitious transition scenarios has a more significant
impact on electricity demand than the increase in temper-
ature resulting from climate change.
Although the trends in degree days (both HDDs and CDDs)
are similar, the percentage differences in electricity de-
mand in Spain for the three scenarios are lower than in Ita-
ly. The essential difference concerns the energy system by
2030, for which Spain’s existing national energy plan is al-
ready very ambitious and in line with RCP 2.6, meaning that
the Slow Transition scenario is closer to the Paris scenario.
Therefore, we expect less volatility in energy system trends
and in electricity demand over the 2031-2050 period.
Italy - Average impact on electricity demand (2031-2050) of the three transition scenarios paired
with RCP 2.6 and 4.5
Paris RCP 2.6 to Slow Transition RCP 4.5
Paris RCP 2.6 to Best Place RCP 2.6
Italy
19%
19%
Baseline RCP
2.6 Paris
0.8%
Baseline RCP
2.6 Paris
-2.1%
-1.3%
Temperature
effect
Transition
effect
Baseline RCP
4.5 Slow
Transition
Temperature
effect
Transition
effect
Baseline RCP
2.6 Best
Place
Reference scenario
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93
Spain - Average impact on electricity demand (2031-2050) of the three transition scenarios
paired with RCP 2.6 and 4.5
Paris RCP 2.6 to Slow Transition RCP 4.5
Paris RCP 2.6 to Best Place RCP 2.6
Spain
15%
15%
Baseline RCP
2.6 Paris
0.5%
Baseline RCP
2.6 Paris
-1.6%
-1.1%
Temperature
effect
Transition
effect
Baseline RCP
4.5 Slow
Transition
Temperature
effect
Transition
effect
Baseline RCP
2.6 Best
Place
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 sensitivi-
ty analysis was carried out by associating the Slow Transition
scenario with RCP 8.5, in addition to RCP 4.5. An assumption
of a further temperature increase, without changing the en-
ergy transition, results in a more limited change in demand
equal to -0.8% for Italy and -0.6% for Spain.
Effect of temperature and transition on electricity demand, average over specified period of temperature and transition
contributions for different combinations of transition scenarios and climate pathways
Paris to Slow Transition RCP 4.5
Paris to Slow Transition RCP 8.5
Paris to Best Place
Temperature
effect from
RCP 2.6 to
RCP 4.5
Transition
effect
Total
impact
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 8.5
Total
impact
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 2.6
Total
impact
Italy
2022-2030
2031-2050
-1.3%
-2.1%
0.0%
0.8%
-1.3%
-1.3%
-1.3%
-2.1%
0%
1.3%
-1.3%
-0.8%
2.7%
19.0%
0.0%
0.0%
2.7%
19.0%
Spain
2022-2030
2031-2050
-0.9%
-1.6%
0.0%
0.5%
-0.9%
-1.1%
-0.9%
-1.6%
0.0%
0.9%
-0.9%
-0.6%
3.1%
15.2%
0.0%
0.0%
3.1%
15.2%
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Integrated Annual Report 2021
As a final consideration, however, note that, in the future,
greater than forecast electrification of residential heating
could change both the sign and the size of the tempera-
ture effect in both countries. It is therefore necessary to
monitor developments over time in the share of electrifi-
cation of heating during the annual review.
Effect of the variation in temperatures on
electricity demand in the main Latin American
countries in which the Group operates
In Latin American countries, the impact of temperature
trends, quantified through the Heating Degree Days (HDDs)
and Cooling Degree Days (CDDs) metrics, was estimated
using econometric forecasting models based on historical
elasticity.
The analysis shows that Brazil could experience a signifi-
cant increase in demand due to the increase in tempera-
ture, with an estimated increase of between 0.8% and 1.5%
in prospective demand (calculated as the average of the
demand forecasts in the 2030-2050 period). The driving
factor would be the greater demand for cooling expect-
ed in the country. This change is also confirmed using a
system modeling approach. However, these forecasts are
subject to a significant degree of uncertainty given the vol-
atility of Brazilian economic growth.
Argentina could also experience an increase in demand
linked to an increase in temperature, estimated at between
0.3% and 0.6% of prospective demand. Similarly to Brazil,
this forecast depends largely on the impact of macroeco-
nomic developments in this country on electricity demand.
The same considerations can also be extended to the oth-
er countries in which the Group is present. In particular, in
the rest of South America, where we again observe the
positive elasticity of electricity demand to temperatures,
the expected rise in temperature would still have less im-
pact than economic growth. In fact, in Chile and Colombia,
historical evidence still shows a strong coupling between
the growth of electricity demand and GDP growth, with
demand from the industrial sector accounting for around
50% of electricity consumption. Furthermore, the variabil-
ity of the macroeconomic context could have repercus-
sions on the electrification of the residential and service
sectors, which represent the most immediate drivers of
the increase in electricity demand in the event of an in-
crease in temperatures.
The following table summarizes the main temperature
effects in the South American countries, with ranges ob-
tained by applying a 95% confidence interval to our base-
line case.
Upper
bound
Lower
bound
Country
Argentina
Brazil
Chile
Colombia
Country
Argentina
Brazil
Chile
Colombia
Temperature effect (annual average)
from RCP 2.6 to RCP 4.5
from RCP 2.6 to RCP 8.5
TWh
0.68
7.92
0.05
0.08
%
0.3
0.8
0.0
0.1
TWh
1.37
15.83
0.10
0.17
%
0.6
1.5
0.1
0.1
Temperature effect (annual average)
from RCP 2.6 to RCP 4.5
from RCP 2.6 to RCP 8.5
TWh
0.57
2.48
0.01
0.02
%
0.3
0
0.0
0.0
TWh
1.15
4.96
0.01
0.05
%
0.5
0
0.0
0.0
Effect of the variation in temperature on electricity demand in the main Latin American countries in which the Group operates (average 2030-2050).
Reference scenario
95
95
Assessment of the risks and opportunities connected with
the Strategic Plan
The process of defining the Group’s strategies is accom-
panied by a careful 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 de-
signed to span the horizon of the Plan in an integrated
manner.
Although the strategy underlying the Plan, as described
above, envisages a phase of careful analysis and verifica-
tion of the strategic risk factors and variables, it retains
scenario assumptions regarding future events that will not
necessarily occur, as they depend on variables that can-
not be controlled by management. Upside and downside
developments may occur as time unfolds.
Before being able to approve the Strategic Plan, a quan-
titative analysis of the risks and opportunities associated
with the Group’s strategic positioning is presented an-
nually to the Control and Risk Committee appointed by
the Board of Directors. In particular, risk factors such as
macroeconomic and energy variables (such as exchange
rates, inflation, commodity prices and electricity demand),
regulatory developments, 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 volatil-
ity is selected. In practice, we perform scenario analysis
for all those variables whose market time series provide
a robust foundation to estimate levels of correlation and
representative volatility for future risk, and a deterministic
analysis based on what-ifs of the possible evolution of the
business with respect to the main risk factors for the exe-
cution of the Business Plan.
The validity of the results is also monitored with ex-post
analyses by risk cluster. In 2021, 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 2020.
Focusing on the scenario risk analysis for the Strategic
Plan, exchange rates, electricity demand and the volatility
of energy 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 im-
pact on profits. Italy and Spain represent nearly all of the
Group’s exposure to the impact of the volatility of energy
prices and commodity price fluctuations on margins.
Examining the other risk factors, such as those connect-
ed with weather and climate events, we can see that ge-
ographical diversification significantly reduces the expo-
sure to the risk associated with renewable resources – a
highly positive factor considering the Group’s positioning
and the steady expansion of renewable generation. Fur-
thermore, with regard to climate change, the risk associ-
ated with “acute” events is managed as part of investment
for adaptation to climate change and the Group’s insur-
ance strategy.
With regard to risk factors estimated deterministically, the
monitoring of all possible regulatory issues is crucial for
assessing any upside or downside impact on the Group.
In general, correlations between all the risk factors create
diversification effects that substantially mitigate total ex-
posures.
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Integrated Annual Report 2021
Reference scenario
97
97
Risk management
The Group adopts a risk governance model supported by
principles (risk governance pillars) and by a homogeneous
taxonomy of risks for the Group (risk catalog).
The governance of the Group’s risks is based on a struc-
tured and formalized set of elements that are periodical-
ly defined and updated in line with the evolution of the
Group, with the international risk management standard
ISO 31000 and with the best risk management practices.
Pillars of risk governance
The risk governance pillars provide for:
1 Group Risk Committee
established at the highest level and headed by the CEO
of the Enel Group.
2 Local risk committees
established for the main Business Lines and geographical
segments (countries and regions), led by the head of the
appropriate organization (head of Business Line/country/
region) coordinating with the Group Risk Committee.
3 Risk Appetite Framework
expressly formalized in the Group risk catalog.
4 Three lines of defense
Clear and defined assignment of roles and
responsibilities in accordance with the principle of three
lines of defense
(1 = Management, 2 = Control, 3 = Internal Audit).
5 System of risk procedures and policies
to develop processes for the measurement,
management, monitoring and control of significant risks.
6 Reporting system
for ongoing and structured reporting to decision-
makers on risk exposures and metrics, delivered at
the level of the Group, Business Line and significant
geographical area.
Risk catalog
In view of the nature of its operations, Enel adopts a six-cat-
egory classification of the risks to which it is exposed: Stra-
tegic, Financial, Digital Technology, Operational, Compli-
ance, Governance and Culture.
Strategic
Governance
and Culture
Digital
Technology
RISKS
Financial
Operational
Compliance
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Risks are defined in a risk catalog that serves as a reference
for all areas of the Group and for all the units involved in
management and monitoring processes. The adoption of a
common language facilitates the mapping and comprehen-
sive representation of risks within the Group, thus facilitating
the identification of those that impact Group processes and
the roles of the organizational units involved in their man-
agement.
The six most significant categories of risk in relation to the
impacts on the Group are described as follows:
Category
Risk
Definition
Climate change
Risk associated with delayed or inadequate strategic and operational
initiatives for climate change adaptation and mitigation.
Competitive environment
Risk associated with evolving market trends that may affect the
Group’s competitive positioning in the markets, growth and
profitability.
Innovation
Risk associated with inadequate technology scouting, erroneous or
incomplete analysis of the uncertainty, complexity or feasibility of
innovative projects.
Strategic
Legislative and regulatory
developments
Risk associated with adverse developments in the legislative or
regulatory environment that are not promptly identified, assessed or
managed.
Macroeconomic and geopolitical
trends
Risk associated with a deterioration in global economic and
geopolitical conditions associated with economic, financial, political,
social or macroeconomic crises.
Strategic planning and capital
allocation
Risk associated with scenarios that do not capture emerging trends,
compromising the implementation of timely mitigation actions.
Corporate culture and ethics
Risk associated with the inadequate integration of the Group’s
principles of ethics, diversity and equal opportunities in corporate
processes and activities.
Corporate governance
Risk associated with ineffective corporate governance rules and/or a
lack of integrity and transparency in decision-making processes.
Governance
and Culture
Digital
Technology
Reputation
Stakeholders
IT effectiveness
Cyber security
Digitalization
Risk of adversely impacting the public image of the Group and
prejudicing the relationship of trust with shareholders.
Risk of ineffective engagement with the main stakeholders in
Enel’s strategic positioning in terms of sustainability and financial
objectives, with potential adverse effects on its reputation and
competitiveness.
Risk associated with ineffective IT system support for business
processes and operational activities.
Risk arising from cyber-attacks and theft of sensitive company
and customer data attributable to a lack of security in networks,
operating systems and databases.
Risk of ineffective business processes and incurring higher
operating costs associated with the lack of digitalization in the
workflow, systems integration and adoption of new technologies.
Service continuity
Risk associated with exposure of IT/OT systems to service
interruptions and data loss.
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Category
Risk
Definition
Appropriate capital structure and
access to financing
Risk that the Group’s debt/equity ratio or the mix of long- and short-
term debt may not support financial flexibility, enable easy access to
funding sources or achieve borrowing cost targets.
Interest rate
Commodity
Currency
Financial
Risk associated with adverse fluctuations in interest rates that affect
financial expense or the fair value measurement of sensitive financial
assets and liabilities.
Risk associated with adverse trends in commodity markets, price
volatility or lack of demand for commodities and natural resources.
Risk associated with adverse changes in exchange rates affecting
costs and revenue denominated in foreign currencies, the fair value
measurement of sensitive financial assets and liabilities and the
consolidation of subsidiaries with different currencies of account.
Credit and counterparty
Risk associated with non-compliance with contractual payment and
delivery obligations, deterioration of credit worthiness, significant
exposures to a single counterparty or counterparties operating in
the same sector or geographical area.
Liquidity
Asset protection
Business interruption
Potential impact associated with the inability to promptly meet
short-term financial commitments except on unfavorable financial
terms or the inability to liquidate assets on the financial markets in
the presence of restrictions on the divestment of assets.
Risk associated with ineffective safeguards for the Group’s physical
assets (theft, embezzlement, mismanagement) and financial assets
(insurance, legal safeguards).
Risk associated with the partial or total interruption of operations
resulting from technical failures, malfunctions, human errors,
sabotage, unavailability of raw materials or adverse weather events.
Customer needs and satisfaction
Risk associated with the failure to fully satisfy customer
expectations and needs in terms of quality, accessibility,
sustainability and innovation.
Environment
Risk of significant impacts on the quality of the environment and
on the ecosystems involved following a violation of environmental
regulations.
Operational
Health and safety
Risk of potential impacts on the health and safety of employees and
other parties following a violation of health and safety regulations.
Intellectual property
Risk associated with the infringement or fraudulent use of the
Group’s intellectual property rights.
People and organization
Risk of impacts on organizational arrangements or internal staff
skills associated with ineffective recruitment, training and incentive
processes.
Process efficiency
Risk associated with inadequate management and monitoring of
processes and operational activities.
Procurement,
logistics and supply chain
Risk of potential effects associated with inadequate procurement or
contract management activities.
Service quality management
Risk associated with the inability of third-party suppliers of internal
services to meet the agreed service standards.
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Category
Risk
Definition
Compliance
Accounting compliance
Risk of potential impacts associated with violation of international
and national accounting laws and regulations as a result of the
incorrect application and/or interpretation of the international
accounting standards adopted by the Group.
Antitrust and consumer rights
compliance
Risk associated with the violation of antitrust laws and regulations
concerning consumer rights.
Corruption
Risk of adverse impacts associated with willful misconduct or
corruption by persons within or outside the Group in order to obtain
an unfair or illegal advantage.
Personal data protection
Risk associated with the violation of applicable data protection and
privacy legislation.
External disclosure
Risk associated with the dissemination of reports, accounting
documents, communications or other notices containing incorrect,
inaccurate or incomplete information.
Compliance with financial
regulations
Risk associated with the violation of international or national
financial laws and regulations.
Compliance with tax regulations
Risk associated with the violation of international or national tax laws
and regulations.
Compliance with other laws and
regulations
Risk associated with non-compliance with other international,
national or local laws and regulations not previously described
(e.g., those governing electricity markets, distribution, generation,
tenders, authorizations, stock exchanges and golden powers, etc.).
Internal control and risk management system
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.
This system is the set of rules, procedures, and organiza-
tional structures developed to identify, measure, monitor
and manage the main risks to which the Group is exposed.
The internal control and risk management system makes
it possible to comprehensively define – for each risk and
with an integrated approach – the risk strategy, appropri-
ate management and control arrangements, the develop-
ment and updating of metrics, risk measurement models
and risk limits.
With regard to the COVID-19 pandemic, the actions taken
in recent years by the Group to increase its resilience to
such a development can leverage our sound financial posi-
tion, geographical diversification and integrated business
model to mitigate and address unforeseen events and
their potential effects with mitigation actions and contin-
gency plans.
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101
Strategic risks
This section provides disclosure on the following strategic
risks:
• Legislative and regulatory developments
• Macroeconomic and geopolitical trends
• Risks and strategic opportunities associated with
climate change
• Competitive environment
Legislative and regulatory developments
The Group operates in regulated markets and changes in
the operating rules of the various systems, as well as the
prescriptions and obligations characterizing them, impact
the operations and performance of the Parent.
Accordingly, Enel closely monitors legislative and regulato-
ry developments, such as:
• periodic revisions of regulation in the distribution segment;
• the liberalization of electricity markets, with special at-
tention being paid to the acceleration provided for in Italy
and expected developments in South America;
• developments in capacity payment mechanisms in the
generation segment.
In order to manage the risks associated with these develop-
ments, Enel has intensified its relationships with local govern-
ance and regulatory bodies, adopting a transparent, collabo-
rative and proactive approach in addressing and eliminating
sources of instability in the legislative and regulatory frame-
work.
Macroeconomic and geopolitical trends
The considerable internationalization of the Group – which
has a presence in many regions, including South America,
North America, Africa and Russia – requires Enel to consid-
er country risk, i.e., the risks of a macroeconomic, financial,
institutional, social or climatic nature and those specifical-
ly associated with the energy sector whose occurrence
could have a significant adverse impact on both revenue
flows and the value of corporate assets. Enel has adopted
a quantitative Open Country Risk assessment model capa-
ble of specifically monitoring the riskiness of the countries
in which it operates.
Economic
factors
Institutional &
political factors
Social factors
Energy factors
Open Country Risk is a quantitative model that extends the more conventional definition of country risk used in the existing literature by providing a more com-
plete analysis of the risks involved, incorporating economic, financial, political, climate and energy factors.
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Integrated Annual Report 2021
The Open Country Risk model seeks to go beyond the
more conventional definition of country risk, which focus-
es on the ability of a government to repay the debt it has
issued, to offer a broader view of the risk factors that can
impact a country. The model is divided into four risk com-
ponents: economic; institutional and political; social; and
energy factors.
More specifically, the Open Country Risk model has the
ambition to measure the economic resilience of individual
countries, defined as the balance of their position with re-
spect to the rest of the world, the effectiveness of internal
policies, the vulnerabilities of their banking and corporate
system that might portend systemic crises and their at-
tractiveness in terms of economic growth, and finally a
quantification of extreme climate events as a cause of
stress at the environmental and economic level (econom-
ic factors). This is accompanied by an assessment of the
robustness of the country’s institutions and the political
context (institutional and political factors), an in-depth
analysis of social phenomena, measuring the level of
well-being, inclusion and social progress (social factors),
and the effectiveness of the energy system and its po-
sitioning within the energy-transition process, as these
are all essential factors for evaluating the sustainability of
investments in the medium to long term (energy factors).
Specifically, the introduction of extreme climate events
within the Open Country Risk model makes it possible to
develop a uniform assessment on the evolution of certain
climate hazards at the country level on a global scale. More
information on climate scenarios and the framework used
within the Open Country Risk model is discussed in the
section “Risks and strategic opportunities associated with
climate change”.
Finally, with regard to the analysis of the energy-transition
process, the Open Country Risk model also includes risk
and opportunity analyses designed for forecasting pur-
poses, quantifying the actions and the paths taken by the
individual countries. For example, the model incorporates
various factors reflecting the weight of renewable sources
in energy generation, the electrification process and the
environmental sustainability of the national energy sys-
tem, which together are crucial characteristics for evalu-
ating the country’s potential growth and attractiveness in
the medium to long term.
In order to mitigate this risk, the model supports the cap-
ital allocation and investment evaluation processes. To
further support the investment evaluation process, Enel
has adopted a methodology called “Total Societal Impact”
that, adopting an integrated approach based on advanced
economic models, clearly and robustly expresses the di-
rect, indirect and induced impacts of investment initia-
tives at the national, regional or local levels. By quantifying
standard international metrics, Total Societal Impact cov-
ers a wide range of economic, social and environmental
indicators that play a strategic role in correctly assessing
the social and environmental contribution of Enel’s pro-
jects. In fact, considering some of the indicators that can
be analyzed, such as the contribution to GDP, the increase
in income of the weakest social groups, the calculation
of carbon dioxide emissions avoided and the recovery of
end-of-life materials from a circular economy perspec-
tive, it is clearly now essential to have a broad overview
of the situation in order to evaluate a specific project in a
given country with a view to creating shared value for all.
The year 2021 was the second year in a row in which the
world had to face the COVID-19 health crisis. However,
the economies of many mature and developing coun-
tries experienced a significant recovery last year after the
sharp decline in 2020, with estimated global GDP growth
of around 5.8% year-on-year in 2021. This progress was
mainly achieved thanks to high vaccination rates (although
there remain considerable disparities in vaccination cov-
erage between high and low-income countries) and to
the expansionary fiscal and monetary policies adopted by
governments and central banks.
Recent data show that the growth outlook for 2022 is
less optimistic, with the pace of expansion set to slow
compared with the previous year, with global annual GDP
growth projected to be around 4%. This would be attribut-
able to possible factors such as a resurgence of COVID-19
cases triggered by the spread of new variants around the
world, continuing inflationary pressures with rising food
and energy prices, which could cause inflation expecta-
tions to de-anchor from the targets pursued by central
banks, and new supply interruptions.
Finally, a range of economic and socio-political risk fac-
tors needs to be carefully monitored in Latin America as
well. For example, a worsening of the pandemic caused by
the spread of new variants could place a greater strain on
healthcare systems in the countries of the area. Central
banks in the area have been among the most reactive in
raising interest rates in response to high levels of inflation,
and could also continue to adopt such restrictive strat-
egies in 2022, representing a downside risk to the eco-
nomic recovery. Finally, other risks are connected with the
high levels of public debt accumulated by governments in
these two years of the pandemic, and with political uncer-
tainty associated with elections in Brazil and Colombia or
the potentially overly radical political agenda that might
be pursued by the new President of Chile, Gabriel Boric.
Risk management
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Risks and strategic opportunities associated with climate change
The identification and management of
risks connected with climate change and
actions to seize opportunities
Climate change and the energy transition will impact
Group activities in a variety of ways.
In order to identify the main types of risk and opportuni-
ty and their impact on the business associated with them
in a structured manner consistent with the Task Force on
Climate-Related Financial Disclosures (TCFD), we have
adopted a framework that explicitly represents the main
relationships between scenario variables and types of risk
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 varia-
bles and those linked to the evolution of the transition sce-
narios. 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, construct-
ed 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., ex-
treme events) and chronic, with the former linked to ex-
tremely intense meteorological conditions and the latter to
more gradual but structural changes in climate conditions.
Extreme events expose the Group to the risk of prolonged
unavailability of assets and infrastructure, the cost of re-
storing service, customer disruptions and so on. Chronic
changes in climate conditions expose the Group to other
risks or opportunities: for example, structural changes in
temperature could cause changes in electricity demand
and have an impact on output, while alterations in rainfall
or wind conditions could impact the Group’s business by
increasing or decreasing potential electricity generation.
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
the regulatory and legal context and trends in technology
development and competition, electrification and the con-
sequent market developments.
Consistent with the climate and transition scenarios used
by Enel to determine risks and opportunities, the main
transition-related phenomena are beginning to emerge in
relation to customer behavior, industrial strategies being
adopted in all economic sectors and regulatory policies. By
2030, the transition trends will become visible in response
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 strongly oriented
towards the energy transition, with more than 90% of in-
vestments directed at improving a number of the Sustain-
able Development Goals, enable us to incorporate risk mit-
igation and opportunity maximization “by design”, adopt-
ing a positioning that takes account of the medium- and
long-term phenomena we have identified. The strategic
choices are accompanied by the operating best practices
adopted by the Group.
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Integrated Annual Report 2021
Framework of main risks and opportunities
Scenario
phenomena
Time
horizon
Risk &
opportunity
category
Description
Impact
Management approach
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.
Renewables generation
can also be impacted
by structural changes in
resource availability.
Transition
Starting with
short term
(1-3 years)
Policy &
Regulation
Risk/opportunity:
policies on CO2 prices
and emissions, energy
transition incentives,
greater scope for
investment in renewables
and resilience.
Policies concerning the
energy transition and
resilience can impact the
volume of and returns on
investments.
Transition
Starting with
medium
term
(2025-2029)
Market
Transition
Starting with
medium
term
(2025-2029)
Product &
Services
Starting with
medium
term
(2025-2029)
Technology
Risk/opportunity:
changes in the prices of
commodities and energy,
evolution of energy
mix, changes in retail
consumption, changes in
competitive environment.
Opportunity: increase
in margins and greater
scope for investment as
a consequence of the
transition in terms of
greater penetration of
electrical transport and
new technologies for
the electrification and
energy efficiency of final
consumption.
Considering two alternative
transition scenarios, the
Group assesses the impact
of rising trends in the
proportion of renewable
sources in the energy mix
and the electrification of
final energy consumption.
Considering two alternative
transition scenarios, the
Group assesses the impact
of different trends in the
electrification of energy
consumption.
With the current trend
in the penetration of
electrification efficiency
technologies, the Group
considers two alternative
transition scenarios to
assess opportunities to
scale up current businesses.
The Group adopts best practices to
manage the restoration of service as
quickly as possible. We also work to
implement investments in resilience
(e.g., the Italian case). 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, supported by preventive
maintenance activities and internal risk
management policies.
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 to identify any
chronic changes in renewable source
availability.
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,
grids 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, the electrification of
energy consumption and rapid growth in
renewables output.
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.
Risk management
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105
tive impact assessments performed to date are discussed
below. The above activities are performed on the founda-
tion of an ongoing effort during the year to analyze, assess
and manage the information produced. As declared by the
TCFD, the process of disclosing information on the risks and
opportunities connected with climate change will be gradu-
al and incremental from year to year.
Enel’s resilience to the energy transition
and climate change
The impacts of climate change, technological evolution,
the evolution of policies and changes in macroeconom-
ic fundamentals make it ever more important to develop
resilient business strategies, i.e., strategies capable of
withstanding external shocks, and therefore of absorbing
the causes of potential crises and thriving even when ex-
ternal conditions change, whether slowly or rapidly. Jointly
considering the factors associated with energy-transition
scenarios and the various climate change scenarios is
therefore a prerequisite for long-term planning.
The set of transition and climatic scenarios plays a role
in guiding strategic and industrial decisions, taking ac-
count, for example, of the future effects of temperature
on electricity demand, the investments necessary to sup-
port the process of ever greater electrification and de-
carbonization, the evolution of the market environment
and of consumer habits. Given that Enel’s Strategic Plan
concentrates more than 94% of investment on combat-
ting climate change through the progressive expansion of
generation from renewable sources and the development
of infrastructure and services to guide energy systems and
customers towards progressive electrification, while at the
same time significant reducing the use of fossil fuels, the
Group’s investments and activities delineate, by design, a
long-term growth path that is in line with an energy transi-
tion consistent with the Paris Agreement.
The application of long-term climate scenarios enables
the construction of adaptation plans for the Group’s asset
and business portfolio. Climate scenarios are developed
starting with the identification of the most relevant phys-
ical phenomena for each business (such as heat waves,
extreme rainfall, fire risk, etc.), to produce analyses that
provide both high-level indicators (such as comparable
country risk indices) and high-resolution data, which make
it possible to study physical hazards at the single-site lev-
el. The approach applies to both the existing portfolio and
new investments. Asset vulnerability assessment makes it
possible to identify priority actions to increase resilience.
The framework illustrated above also highlights the rela-
tionships that link the physical and transition scenarios
with the potential impact on the Group’s business.
These effects can be assessed from the perspective of
three time horizons: the short term (1-3 years), in which
sensitivity analyses based on the Strategic Plan presented
to investors in 2021 can be performed; the medium term
(until 2029), in which it is possible to assess the effects of
the energy transition; and the long term (2030-2050), in
which chronic structural changes in the climate should be-
gin to emerge.
In order to facilitate the correct identification and man-
agement of the risks and opportunities associated with
climate change, a Group policy was published in 2021 that
describes the common guidelines for assessing these risks
and opportunities. The “Climate change risks and oppor-
tunities” policy defines a shared approach for integrating
issues relating to climate change and the energy transition
into the Group’s processes and activities, thus informing
industrial and strategic choices to improve business resil-
ience and long-term sustainable value creation, in line with
the adaptation and mitigation strategy. The main steps
considered in the policy are described below.
• Prioritization of phenomena and scenario analysis. These
activities include the identification of physical and tran-
sition phenomena relevant to the Group and the con-
sequent preparation of the scenarios to be considered,
which are developed through the analysis and process-
ing of data from internal and external sources. For the
phenomena so identified, functions can be developed to
connect the scenarios (for example, data on changes in
renewable sources) to the operation of the business (for
example, changes in expected potential output).
• Evaluation of impacts. This includes all the analyses and
activities needed to quantify the effects at an operation-
al, economic and financial level, consistent with the pro-
cesses in which they are integrated (for example, design
of new buildings, evaluation of operational performance,
etc.).
• Operational and strategic actions. The information ob-
tained from the previous activities is integrated into pro-
cesses, informing the decisions of the Group and the
business activities. Some examples of activities and pro-
cesses that benefit from this are capital allocation, such
as in the evaluation of investments in existing assets or
new projects, the development of resilience plans, risk
management and financing activities, engineering and
business development.
The main sources of risk and opportunity identified, the
best practices for the operational management of weather
and climate phenomena, and the qualitative and quantita-
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Integrated Annual Report 2021
Scenario integration
High level (e.g., Open Country Risk,
evolution of energy system)
Site specific (e.g., high resolution climate
data)
Prioritization
Specification of adaptation priorities at
the local level and main adaptation risks
and actions at the country level
Vulnerability assessment
Analysis of vulnerabilities to quantify
risk at the asset level (existing and new
investment)
Adaptation plans
Development of long-term
adaptation plans to increase
resilience
Chronic and acute physical phenomena:
repercussions on our business, risks and
opportunities
Taking the scenarios developed by the Intergovernmental
Panel on Climate Change (IPCC) as our reference point, de-
velopments in the following physical variables and the as-
sociated operational and industrial impacts connected with
potential risks and opportunities are assessed.
Chronic physical changes creating risks and
opportunities
The climate scenarios developed with the Internation-
al Centre for Theoretical Physics (ICTP) in Trieste do not
provide definitive indications of structural changes before
2030, but changes could begin to emerge between 2030
and 2050.
The main impacts of chronic physical changes would be
reflected in the following variables:
Variables
impacted by
chronic physical
changes
• Electricity demand: variation in the average temperature level with a potential increase or
reduction 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 tempera-
tures 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.
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107
The Group will work to estimate the relationships be-
tween changes in physical variables and the change in
the potential output of individual plants in the different
categories of generation technology.
As part of the assessment of the effects of long-term cli-
mate change, we have identified chronic events relevant
to each technology and began the analysis of the related
impacts on potential output.
Priority
High
Low
Not material
Rain/
snow
Wind
Sunshine
Sea level
Air
temperature
River/sea
temperature
Under assessment
Event
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Infrastructure
and Networks
Enel X
Scenario analysis has shown that chronic structur-
al changes in the recent trends of physical variables will
become significant beginning in 2030. However, in order
to obtain an indicative estimate of the potential impacts,
and include the possible early emergence of chronic ef-
fects, it is possible to test sensitivity of the Business Plan
to the factors potentially influenced by the physical sce-
nario, regardless of any direct relationship with climate
variables. Of course, such stress testing has an extremely
low probability of occurrence based on historical events
and geographical diversification. The variables examined
are electricity demand (+/-1% per year), whose variations
can potentially impact the generation and retail business-
es. It was stress tested for all countries in which the Group
operates. The output potential of renewable plants was
also stressed (+/-10% over a single year). Variations in this
variable can potentially impact the generation business. It
was stressed separately at the individual technology level
around the globe. The data reported show the effect on a
single year for a single generation technology and include
both the volume and price effects.
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Integrated Annual Report 2021
Time horizon
Downside scenario current policies
Upside scenario current policies
Short (within 3 years)
Medium (until 2030)
Long (2030-2050)
Scenario
phenomena
Risk &
opportunity
category
Description
Time
horizon
Impact
GBL
affected
Scope
Quantification
- Type of
impact
Quantification - range
Upside/
Downside
< €100
mn
€100-
300 mn
> €300
mn
Chronic
physical
Market
Risk/
opportunity:
increased or
decreased
power
demand.
Short
Chronic
physical
Market
Risk/
opportunity:
increased or
decreased
renewables
output
Short
Electricity demand
is also influenced
by temperature,
the fluctuations
of which can have
an impact on the
business. Although
structural
changes should
not occur in the
short-medium
term, to assess
the sensitivity
of the Group's
performance
to potential
temperature
changes,
sensitivity analyses
are conducted
with respect
to changes in
electricity demand
of +/- 1% of the
Group total.
Renewables
output is also
influenced by
the availability of
resources whose
fluctuations
can have an
impact on the
business. Although
structural
changes should
not occur in the
short-medium
term, to assess
the sensitivity
of the Group's
performance
to potential
temperature
changes,
sensitivity analyses
are conducted
with respect
to changes in
potential output
of +/- 10% per
year by individual
technology.
Enel Green
Power and
Thermal
Generation and
Infrastructure
and Networks
Group
EBITDA/year
Enel Green
Power and
Thermal
Generation
Group
Potential
Hydro
Output
Group
Potential
Wind
Output
EBITDA/year
EBITDA/year
Group
Potential
Solar
Output
EBITDA/year
+1%
-1%
+10%
-10%
+10%
-10%
+10%
-10%
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109
Preliminary analysis of the impact of chronic
climate changes on renewable generation
Preliminary analyses were conducted to translate chronic
climate changes into impacts on potential output for the
main RES technologies operated by the Group: wind, solar
and hydroelectric.
For each technology, two pilot sites were selected, based
on the geographical position and the availability of histor-
ical data on the site, for which a link function was calculat-
ed, starting from the observed data, which makes it possi-
ble to translate trends in climatic variables into production
information. This function was then applied to the data for
climate projections to estimate the difference in output
expected in 2030-2050 compared with historical figures.
The results of these initial analyses at the pilot sites are
reported below.
Pilot sites
Input parameters
Results
Site 1
Climate variables used to calculate link
function: wind speed, air density
Time step: monthly
Time horizon: 2030-2050 vs. historical
Site 1: output in line with historical trend in
RCP 2.6 scenario and down slightly in RCP 4.5
and RCP 8.5 scenarios
Site 2: output stable in RCP 2.6 and RCP 4.5
scenarios and up slightly in RCP 8.5 scenario
Climate variables used to calculate link
function: global horizontal irradiance (GHI),
temperature
Time step: daily
Time horizon: 2030-2050 vs. historical
No material changes for the business at either
of the plants examined
Climate variables used to calculate link
function: precipitation, temperature
Time step: monthly
Time horizon: 2030-2050 vs. historical
For both areas, average output is unchanged
in RCP 2.6 scenario but declines slightly in
RCP 8.5 scenario
Site 2
Site 1
Site 2
Watershed 2
Watershed 1
Slight increase or slight decrease means a change that does not exceed +/- 5%.
Acute physical changes creating risks and
opportunities
(extreme
With regard to acute physical phenomena
events), the intensity and frequency of extreme physical
phenomena can cause significant and unexpected phys-
ical damage to assets and generate negative externalities
associated with the interruption of service.
Within climate change scenarios, the acute physical com-
ponent plays a leading role in defining the risks to which
the Group is exposed, due both to the broad geographical
diversification of its asset portfolio and the primary impor-
tance of renewable resources in electricity generation.
Acute physical phenomena, in different cases such as wind
storms, floods, heat waves, cold snaps, etc., are character-
ized by considerable intensity and a frequency of occur-
rence that, while not high in the short term, is clearly trend-
ing upwards in medium- and long-term climate scenarios.
Therefore, the Group, for the reasons described above, is
already managing the risk associated with extreme events
in the short term. At the same time, the methodology is
also being extended to longer time horizons (up to 2050)
in accordance with the climate change scenarios that have
been developed (RCP 8.5, 4.5 and 2.6).
Acute event risk assessment methodology
In order to quantify the risk deriving from extreme events,
the Group uses a consolidated catastrophic risk analysis
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Integrated Annual Report 2021
approach, which is adopted in the insurance sector and in
the IPCC reports.(16) 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, tropi-
cal cyclones, flooding, etc. In all of these types of natural
disaster, 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-
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%. This information, which is necessary for assessing
the level of frequency of the event, is then associated
with the geographical distribution of Group assets.
For this purpose, the Group adopts the hazard map
tool, which associates the estimated frequency associ-
ated with an extreme event, for the different types of
natural disasters, with each geographical point of the
global map. This information, organized in geo-refer-
enced databases, can be obtained from global reinsur-
ance companies, weather consulting firms or academic
institutions.
• Vulnerability, which indicates in percentage terms how
much value would be lost upon the occurrence of a giv-
en catastrophic event. In more specific terms, reference
can be made to the damage to material assets, the im-
pact on the continuity of electricity generation and/or
distribution or the provision of electrical services to end
users.
The Group, especially in the case of damage to its as-
sets, conducts and promotes specific vulnerability anal-
yses for each technology in its portfolio: solar, wind and
hydroelectric generation plants, transmission and dis-
tribution grids, primary and secondary substations, etc.
These analyses are naturally focused on the extreme
events that most impact the different types of technol-
ogies. This produces a sort of matrix that associates the
significantly 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 ser-
vices 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
this sense, the Group, with respect to climate change sce-
narios, differentiates its risk analyses in accordance with
the specificities of the various associated time horizons.
The following table summarizes the scheme adopted for
the assessment of the impacts deriving from acute phys-
ical 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
(16) 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 Inter-
gover nmental Panel on Climate Change (IPCC)”, Cambridge University Press, Cambridge, 2012.
Risk management
111
111
In the case of the vulnerability of assets within the portfolio,
therefore, a priority table of the impacts of the main extreme
events on the various technologies was defined in collabo-
ration with the relevant Global Business Lines of the Group:
Priority
High
Low
Not material
Heat waves
Flooding/
heavy rain
Heavy snow/
icing
Hail
Windstorms
Wildfires
Lightning
Under
assessment
Under
assessment
Under
assessment
Under
assessment
Under
assessment
Under
assessment
Event
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Infrastructure
and Networks
Enel X
“Heavy/wet snow” includes icing, which is relevant for Infrastructure and Networks.
Managing the risk of extreme events in the short term
Over the short term (1-3 years) the Group, in addition to
risk assessment and quantification, takes actions to re-
duce the impacts that the business may suffer following
catastrophic extreme events. Two main types of action can
be distinguished: obtaining effective insurance coverage
and climate adaptation activities, preventing losses that
could be caused by extreme events.
The general characteristics of these actions are illustrated
below and, naturally, in the case of adaptation activities for
damage prevention and mitigation, specific reference will
be made to the Group’s Generation and Infrastructure and
Networks Global Business Lines.
Impact of acute physical events on the Group
The Enel Group has a well-diversified portfolio in terms of
its generation technologies, geographical distribution and
asset scale and, consequently, the portfolio’s exposure to
natural risks is also diversified. The Group implements vari-
ous risk mitigation measures, which, as described below, in-
clude both insurance coverage and other management and
operational arrangements to further lower the Company’s
risk profile.
The empirical evidence indicates negligible repercussions
from these risks, as shown by the data for the last five years.
Considering the most significant events, defined as events
with a gross impact of more than €10 million, the cumulative
gross impact amounts to about €270 million, which repre-
sents less than 0.14% of the value of the Group’s insured
assets as at 2022 (about €202 billion), most of which was
recovered through insurance reimbursements.
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Integrated Annual Report 2021
Insurance in the Enel Group
Each year, the Group develops global insurance programs
for its businesses in the various countries in which it op-
erates. The two main programs, in terms of coverage and
volumes, are the following:
• the Property Program for material damage to assets
and the resulting business interruption. Accordingly,
in addition to the costs of rebuilding assets (or parts
thereof), the financial losses due to the stoppage of
electricity generation and/or distribution are also cov-
ered, within the limits and conditions defined in the
policies;
• the Liability Program, which insures against loss-
es caused to third parties, including the impact that
extreme events may have on the Group’s assets and
business.
Based on effective risk assessment, it is possible to spec-
ify appropriate limits and insurance conditions within the
policies, and this also applies in the case of extreme nat-
ural events linked to climate change. In fact, in the latter
case, the impacts on the business can be significant but,
as has happened in the past in various locations around
the world, the Group has demonstrated a high degree of
resilience, thanks to the ample insurance coverage limits,
thanks in part to the Group’s solid reinsurance capabilities
through the captive company Enel Insurance NV.
The presence of this effective insurance coverage does
not make the actions that the Group takes in the preven-
tive maintenance of its generation and distribution assets
any less important. In fact, while on the one hand the ef-
fects of these activities are immediately reflected in the
mitigation of the impacts of extreme events, on the other
hand they are a necessary prerequisite for optimizing risk
financing and minimizing the cost of the Group’s glob-
al insurance coverage programs, including the risk as-
sociated with catastrophic natural events. This adaptive
strategy takes the form of management strategies and
actions that go beyond insurance alone and change with
the surrounding conditions. For example, the Group has
managed to sterilize much of the strong upward trend
in premiums on the insurance markets through changes
to its risk retention policies for assets, as well as through
internal risk transfer policies that reward the Business
Lines that are most virtuous in terms of risk mitigation.
From this perspective, the method and the information
extracted from the ex-post analysis of events play a cru-
cial role in determining the processes and practices to be
deployed in mitigating such events in the future.
Climate change adaptation in the Enel Group
The Group implements adaptation solutions for weath-
er and climate events in order to effectively manage the
chronic and acute phenomena affecting each activity and
Business Line.
The adaptation solutions can involve both short-term and
long-term actions, such as planning investments in re-
sponse to climate phenomena. Adaptation activities also
include the implementation of procedures, policies and
best practices.
For new investments, it is also possible to take advance
action in the design and construction phase to reduce
the impact of climate risks by design (for example,
through risk and vulnerability assessment in the design
phase) and to take account of any chronic effects (e.g.,
the inclusion of climate scenarios in long-term renewable
resource estimates).
Once the relevant weather and climate phenomena have
been identified, the activities implemented to maximize
adaptability can be classified as follows:
• adverse event prevention and management: proce-
dures for advanced preparation for extreme events
(for example, acquiring short-term forecast weather
data and training) and procedures for restoring nor-
mal operations as quickly as possible (for example, the
definition of operational and organizational proce-
dures to be activated in response to critical events);
• enhancing asset resilience: measures to increase the
resilience of assets, such as the quantitative assess-
ment of potential acute and chronic risks to better de-
fine requirements in the design phase and actions to
be implemented for existing assets.
The following table provides a high-level summary of the
type of actions that Enel implements to effectively man-
age adverse events and to increase resilience to weather
phenomena and their evolution due to climate change. In
the following sections, certain activities are described in
greater detail.
Risk management
113
113
Business Line
A. Adverse event prevention and management
B. Enhancing asset resilience
Enel Green Power and
Thermal Generation
Existing assets
1. Critical incident and event management
2. Site-specific emergency management plans and
procedures
3. Specific tools for forecasting imminent extreme events
Global Infrastructure
and Networks
Enel X
Existing assets
1. Strategies and guidelines for risk prevention,
readiness, response and recovery actions for the
distribution grid
2. Global Infrastructure and Networks guidelines for
emergency and critical event management
3. Risk prevention and preparation measures for fires
involving electrical installations (lines, transformers,
etc.)
Existing assets
1. Enel X critical event management
2. e-Mobility: guidelines for asset maintenance and
monitoring (repair or replacement of charging
infrastructure)
Existing assets
1. Guidelines for hydraulic risk assessment and design
2. Lessons-learned feedback from O&M to E&C and BD
New construction
In addition to actions for existing assets:
1. Climate change risk assessments (CCRA) included in
environmental impact documentation (pilot)
Existing assets and new construction
1. Guidelines for developing grid resilience enhancement
plans (e.g., the “Network Resilience Enhancement Plan”
of e-distribuzione)
Existing assets
1. e-Mobility: the continuous improvement program
Adaptation measures - Generation
With regard to generation, over time the Group has im-
plemented targeted measures at specific sites and estab-
lished ad hoc management activities and processes.
Measures implemented for specific sites in recent years
include:
• improving cooling water management systems for cer-
tain plants in order to counter the problems caused by
the decline in water levels on rivers, such as the Po in
Italy;
• installing fogging systems to improve the flow of inlet
air and offset the reduction in power output caused by
the increase in ambient temperature in CCGTs;
• installing drainage pumps, raising embankments, peri-
odic cleaning of canals and interventions to consolidate
land adjacent to plants to prevent landslides in order to
mitigate flood risks;
• periodic site-specific reassessments for hydro plants of
flood scenarios using numerical simulations. The sce-
narios developed are managed with mitigation actions
and interventions for civil works, dams and water inlets.
The Group adopts a series of best practices to manage the
impact of weather events on power generation, such as:
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 with the use of drones), monitoring any vul-
nerabilities through digital GISs (Geographic Information Systems) and satellite measurements;
• advanced monitoring of over 100,000 parameters (with over 160 million historical measure-
ments) for dams and hydroelectric works;
• real-time remote monitoring of generation plants;
• safe rooms in plants in areas exposed to tornadoes and hurricanes, such as the wind farms in
Main areas:
Oklahoma in the United States;
Maintenance
O&M Operation
• 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)
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Integrated Annual Report 2021
Dams and Hydraulic
Infrastructure Safety
Critical Event
Management
and civil engineering works (for example, rainfall assessments for designs of drainage systems
at solar plants);
• 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
events, the Group has adopted specific emergency man-
agement procedures with protocols for real-time commu-
nication and management of all activities to restore oper-
ations rapidly and standard checklists for damage assess-
ment and the safe return to service for all plants as rapidly
as possible. One solution to minimize the impacts of cli-
mate phenomena is represented by the lessons-learned
feedback process, which is implemented by the technical
functions. It is governed by the existing operating model
and influences future projects.
Adaptation measures - Infrastructure and Networks
In the Infrastructure and Networks Business Line, the Enel
Group has adopted an approach in recent years called
“4R” to cope with extreme climate events. A specific policy
(which seeks to implement an innovative strategy to ensure
the resilience of the distribution grid) has been developed
to define the measures to be taken both in preparation for
an emergency within the network and for the prompt res-
toration of service once climate events have caused dam-
age to assets and/or outages. The 4R strategy is divided
into four phases.
• Risk prevention: this includes actions that make it pos-
sible to reduce the probability of losing network com-
ponents because of an event and/or to minimize its
effects, i.e., interventions aimed both at increasing the
robustness of the infrastructure and maintenance in-
terventions.
• Readiness: this includes all measures aimed at increas-
ing the speed with which a potentially critical event can
be identified, ensuring coordination with Civil Protection
authorities and local institutions and preparing the nec-
essary resources once a grid disruption has occurred.
• Response: this represents the phase in which the oper-
ational capacity to cope with an emergency upon the
occurrence of an extreme event is assessed. It is directly
related to the ability to mobilize operational resources
in the field and the capacity to remotely restore power
supply through resilient backup systems.
• Recovery: this is the last phase, in which the goal is to
return the network to ordinary operating conditions as
soon as possible in cases where an extreme weather
event has caused service interruptions despite the in-
creased resilience measures taken previously.
Following this approach, the Business Line has prepared
various policies for specific actions to address the various
aspects and risks associated with climate change. In par-
ticular:
Guidelines
for Readiness
Response
and Recovery
actions during
emergencies
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 specific KPIs of the network and to improve them based on proposed interven-
tions 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 ap-
proach, suggesting measures regarding risk prevention and readiness.
In Italy, this policy has been translated into 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 critical areas, name-
ly heat waves, icing and windstorms (with the associated risk of falling trees). In 2017-2020, some
€520 million were invested and about €345 million will be invested in the following three-year
period, as specified in the addendum to the 2021-2023 Plan. To address these risks, investments
Risk management
115
115
include the targeted replacement of uninsulated lines with insulated conductors, the under-
grounding of cables in some cases or solutions involving routes to restore power that are not
vulnerable to the above phenomena.
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.
Measures for Risk
Prevention and
Preparation in
case of wildfires
affecting the
electrical
installations
This policy is dedicated to addressing the risk of wildfires, outlining an integrated approach to
emergency management measures applied in the case of forest fires, whether they are of ex-
ternal origin or, in a small minority of cases, are caused by the grid itself and could potentially
threaten Enel plant. The document provides guidelines to be implemented in the various territo-
ries involved to identify areas/plant 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 preparation
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. For example, in Italy a trial has begun of sensors
on above-ground lines in areas that are highly exposed to snow and wind (Project Newman).
Moreover, with a view not only to assessing weather emer-
gencies in the short/medium term, but also in considera-
tion of the climate change we are witnessing, Infrastruc-
ture and Networks is mapping key phenomena at the glob-
al level as part of an analysis of the specific climate risks in
countries in which it operates, seeking to associate a risk
level with each phenomenon and prioritize the most ex-
posed areas.
Infrastructure and Networks is collaborating with leading
research institutes to analyze trends in the most critical
threats in the various countries in which the Group oper-
ates, and to estimate their future impact on the network in
the medium and long term.
The following are some examples.
Heavy rainfall/wind storms
• In 2021, the selection of external partners was initiated for
an investigation of scenarios concerning the evolution of
intense rainfall events in various countries. For example,
with regard to explosive cyclogenesis in Spain, a prelimi-
nary survey of the events with the greatest impact on the
grid was conducted, following the policy concerning the
enhancement of grid resilience, which will form the basis
for subsequent detailed analyses starting from 2022.
Heat waves
• In 2021, heat waves in the other countries in which Infra-
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Integrated Annual Report 2021
structure and Networks operates were investigated fur-
ther after having produced initial results for Italy in 2020.
This critical event is characterized by the persistence of
high temperatures over a period of several days in corre-
spondence with the absence of precipitation which, by
hindering the dissipation of heat from underground ca-
bles, causes an anomalous increase in the risk of multiple
failures on grids, especially in urban areas and in summer
tourist locales.
• In Spain, despite the increase in the frequency and inten-
sity of heat waves, especially where the presence of un-
derground cables is relatively low, no significant historical
correlation between heat waves and failures has been
found in the analyses conducted to date.
• Finally, starting from 2022, similar analytical work will be
performed in other geographical areas.
Wildfires
• With regard to fire risk, despite the insignificance of
events recorded to date, the Business Line, consistent
with the policy noted above, is preparing an in-depth
analysis of the scenarios through 2050 concerning the
evolution of the phenomenon, with a view to possible im-
provements in the policy itself. So far, each country has
conducted a study to identify the areas at greatest risk of
forest fires. Today, this study also makes use of GIS (Ge-
ographic Information System) mapping for more precise
identification of grids in different environments (protect-
ed natural areas, forests, habitats). This makes it possible
to adopt even more effective construction or mainte-
nance design measures with a view to preventing fire risk.
Inclusion of climate change effects in the
assessment of new projects
Many activities connected with the evaluation and imple-
mentation of new projects can benefit from general and
site-specific climate analyses, which the Group is begin-
ning to integrate with those already considered in the eval-
uation of new projects. For example:
• preliminary studies: in this phase, climate data can serve
as a preliminary screening tool, with the analysis of spe-
cific climate phenomena, such as those discussed previ-
ously in the analysis of physical scenarios, and synthetic
indicators such as the Climate Risk Index, integrated into
the Open Country Risk model. These data provide a pre-
liminary measure of the most relevant phenomena in an
area among those identified as being relevant for each
technology;
• estimation of expected output: the climate scenarios will
be progressively integrated to enable the evaluation of
how climate change will modify the availability of renew-
able sources at the specific site. In the in-depth devel-
opment of the preliminary analyses on potential output,
the approach applied for now to selected pilot sites is
described and then scaled up over the entire generation
portfolio;
Policy &
Regulation
• environmental impact analysis: the Group has begun to
integrate a Climate Change Risk Assessment into project
documentation. This contains a representation of the
main physical phenomena and their expected change in
the area;
• resilient design: as noted, the development of resilient
assets by design is a key climate change adaptation
activity. The Group is working to progressively consider
analyses based on climate data, such as the increase in
the frequency and intensity of acute events. The latter
will integrate existing analyses based on historical data
already in use, in order to increase the resilience of future
assets, including all necessary adaptation actions over
the useful life of a project.
Transition phenomena: repercussions on
our business, risks and opportunities
With regard to the risks and opportunities associated with
transition variables, we use the different reference scenar-
ios in combination with the elements that make up the risk
identification process (e.g., competitive context, long-term
vision of the industry, materiality analysis, technological
evolution, etc.) to identify the drivers of potential risks and
opportunities. Priority is given to the most material phe-
nomena. The main risks and opportunities identified within
this framework are described below.
Limits on
emissions and
carbon pricing
The enactment of laws and regulations that introduce more stringent emission limits by govern-
ment action (non-market driven) and market-based mechanisms.
• 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.
Incentives for the
energy transition
Development incentives and opportunities with a view to the energy transition, consequently
guiding 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 elec-
tricity industry, in line with the electrification strategy, decarbonization and the upgrading/dig-
italization 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.).
Risk management
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117
Resilience
regulation
To improve standards or introduce ad hoc mechanisms to incentivize investments in resilience in
the context of the evolution of climate change.
• 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.
Financial measures
for the energy
transition
Market
Market
dynamics
Technology
Penetration of
new technologies
supporting the
transition
Products &
Services
Electrification of
residential energy
consumption
and industrial
processes
Incentives for the energy transition through appropriate policy measures and financial instru-
ments, 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
sustainability into financial markets and public finance instruments.
• Opportunities: the creation of new markets and sustainable finance products consistent with the
investment framework, activating greater public resources for decarbonization and access to fi-
nancial 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 transition.
• 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 geographical areas in which the Group operates.
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 and
distributed generation, have an impact on business drivers, with effects on margins and on pro-
duction 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 electric vehicles, storage, demand response and
green hydrogen; digital lever to transform operating models and “platform” business models.
• Opportunities: investments in developing technology solutions, as well as the positive effects
of the increase in electricity demand and the greater space for renewables deriving from the
production of green hydrogen.
• Risks: slowdowns and interruptions in the supply chain for raw materials, including metals for
batteries (such as lithium, nickel and cobalt) and semiconductors, could lead to delays in pro-
curement and/or increase costs, potentially slowing the penetration of renewables, storage and
electric vehicles.
With the gradual electrification of end uses, the penetration of products with lower costs and a
smaller impact in terms of local residential and industrial emissions will expand (for example, the
use of heat pumps).
• 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.
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Integrated Annual Report 2021
Electric mobility
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 services.
• Risks: additional competition in this market segment.
The Group has already taken strategic actions to miti-
gate potential risks and exploit the opportunities offered
by the energy transition. Thanks to our industrial and fi-
nancial strategy incorporating ESG factors, an integrated
approach shaped by sustainability and innovation makes it
possible to create long-term shared value.
A strategy focused on complete decarbonization and the
energy transition makes the Group resilient to the risks as-
sociated with the introduction of more ambitious policies
for emissions reductions and maximizes opportunities for
the development of renewable generation, infrastructure
and enabling technologies.
Unlike chronic climate impacts, developments in the tran-
sition scenario could have impacts in the short and medi-
um/long term (by 2030) as well.
As with climate variables, we can test the current Business
Plan (2022-2024) for its sensitivity to the factors potentially
influenced by the transition scenario, with particular regard
to the price of CO2 (ETS). Examining the main transition vari-
ables, the price of CO2 appears to be a reliable driver of reg-
ulatory measures that could accelerate the transition pro-
cess. 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
modify the equilibrium price of both wholesale markets,
with repercussions on the margins of Global Power Genera-
tion for both conventional and renewables plants.
To quantify the risks and opportunities engendered by the
energy transition in the long term, the transition scenarios
described in the section “Enel’s energy-transition scenar-
ios” have been considered. The effects of the Slow Tran-
sition and Best Place scenarios on the variables that can
most impact the business were then identified, in particu-
lar electricity demand influenced by developments in the
electrification of consumption – and hence the penetra-
tion of electrical technologies – and the power generation
mix. These considerations offer ideas for determining what
the Group’s strategic positioning for resource allocation
could be.
Enel’s benchmark scenario – the Paris scenario – envis-
ages a greater ambition for decarbonization and energy
efficiency, supported by increasing the electrification of fi-
nal energy consumption and the development of renewa-
bles capacity. The dynamics of the energy transition could
bring greater opportunities for the Group. In particular, on
the retail electricity market, the progressive electrification
of final consumption – in particular in transportation and
the residential segment – will lead to a significant increase
in electricity consumption to the detriment of other more
polluting forms of energy. Likewise, the gradual increase in
renewables share of the energy mix should lead to a reduc-
tion in the wholesale price of electricity in the medium to
long term. This impact is limited, however, considering an
unchanged market design based on system marginal pric-
es in the medium term. Any alternative market structures
could induce different effects.
With regard to the financial impact of changes in transition
scenarios, the Group analyzed the impact of the Slow Tran-
sition and Best Place scenarios on 2030 results in terms of
EBITDA compared with the benchmark Paris scenario.
With regard to the electrification of consumption, how-
ever, the Slow Transition scenario envisages lower pene-
tration rates for the most efficient electrical technologies,
in particular electric vehicles and heat pumps, produc-
ing a decrease in electricity demand compared with the
Paris scenario, which would have a limited impact on the
commodity and beyond-commodity retail business. At the
same time, the decline in electricity demand would leave
less room for growth in renewables, with an impact on the
generation business.
The Best Place scenario assumes a more rapid reduction
in the costs of green hydrogen production technologies.
This translates into greater penetration for this energy
source, displacing blue and gray hydrogen, with a conse-
quent additive effect on national electricity demand and
the installation of renewables capacity compared with the
Paris scenario.
All of the scenarios, but especially the Paris and Best Place
scenarios, will entail a considerable increase in the com-
plexities that will have to be managed by grids in the var-
ious geographical areas. In fact, we expect a significant
increase in distributed generation and other resources,
such as storage systems, the greater penetration of elec-
tric mobility with the related charging infrastructures, as
well as the growing rate of electrification of consumption
Risk management
119
119
and the appearance of new actors with new modes of
consumption.
These developments will lead to the decentralization of
power withdrawal/injection points, an increase in electric-
ity demand and the average power required, and strong
variability of energy flows, requiring dynamic and flexible
management of the network. The Group, therefore, ex-
pects that in this scenario incremental investments will
be needed to ensure connections and adequate levels of
quality and resilience, encouraging the adoption of inno-
vative operating models. These investments must be ac-
companied by consistent policy and regulatory scenarios
to ensure adequate financial returns within the Infrastruc-
ture and Networks Business Line.
Risk &
opportunity
category
Time
horizon
Scope of analysis
GBL affected
Geographic
scope
Description of impact
Quantification -
Type of impact
Quantification - range
< €100
mn
€100-
300 mn
> €300
mn
Time horizon
Upside
Downside
Short (within 3 years)
Medium (until 2030)
Long (2030-2050)
10% -
Upside vs.
Paris
-10% -
Downside
vs. Paris
Policy &
Regulation
Short/
Medium
Enel Green
Power and
Thermal
Generation
Italy and
Iberia
For any given Paris
scenario, the Group
has assessed
the impact on
performance of
actions to modify
the price of CO2.
Enel Green
Power and
Thermal
Generation
Global
Customer
Global
Market
Medium
Market/
Products
& Services
Medium
Considering 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.
Considering two
alternative transition
scenarios, the
Group assessed the
impact of trends
in efficiency, the
adoption of electric
devices and the
penetration of EVs
to estimate the
potential effect
on commodity
consumption,
including the impact
on gas customers
due to the increase
in electrification and
on the demand for
beyond-commodity
services.
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.
Greater room
for investment in
new renewables
capacity associated
with a decrease
in power prices
due to increased
penetration of
renewables.
Less room for
investment in
new renewables
capacity associated
with an increase
in power prices
due to decreased
penetration of
renewables.
Increase in margins
due to impact of
transition in terms of
the electrification of
energy consumption,
mainly linked to
forecast increases in
green hydrogen.
Decrease in margins
due to impact
of transition in
terms of slower
electrification of
energy consumption,
mainly in residential
and transport
sectors, and reduced
penetration of new
technologies.
EBITDA/year
EDITDA 2030
Best Place
vs. Paris
EDITDA
2030 Slow
Transition
vs. Paris
EDITDA 2030
Best Place
vs. Paris
EDITDA
2030 Slow
Transition
vs. Paris
Note: the estimated transition impacts take account of current coverage levels.
120
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Integrated Annual Report 2021
Competitive environment
The markets and businesses in which the Group operates
are exposed to steadily growing competition and evolution,
from both a technological and regulatory point of view, with
the timing of these developments varying from country to
country.
As a result of these processes, Enel is exposed to growing
competitive pressure and, as electricity is this century’s en-
ergy vector, competition driven by contiguous sectors is
also rising, although this offers utilities the opportunity to
move into new businesses.
The differentiation on which the Group can count, both ge-
ographically and in the various sectors in which it operates,
is an important mitigation factor, but in order to orient stra-
tegic development guidelines more effectively, the evolution
of the competitive environment is constantly monitored,
both inside and outside the world of utilities.
Financial risks
As part of its operations, Enel is exposed to a variety of
financial risks that, if not appropriately mitigated, can di-
rectly impact our performance.
In line with the Group’s risk catalog, these risks include the
following:
• Interest rate
• Commodity
• Currency
• Credit and counterparty
• Liquidity
The internal control and risk management system (the ICRMS)
provides for the specification of policies that establish the
roles and responsibilities for risk management, monitoring
and control processes, ensuring compliance with the princi-
ple of organizational separation of units responsible for oper-
ations and those in charge of monitoring and managing risk.
The financial risk governance system also defines a system of
operating limits at the Group and individual region and coun-
try levels for each risk, which are monitored periodically 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 47 to the consolidated financial statements.
Interest
rate
The Group is exposed to the risk that changes in the level of interest rates could produce unex-
pected 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 float-
ing-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.
Commodity
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 the prices of energy commodities, such as power, gas
and fuel, and other commodities, such as minerals and metals (price risk), or owing to a lack of
demand or energy commodity shortages (volume risk).
If not managed effectively, these risks can have a significant impact on results. To mitigate this
Risk management
121
121
Currency
exposure, the Group has developed a strategy of stabilizing margins by contracting for supplies
of fuel and materials and the delivery of electricity to end users or wholesalers in advance.
Enel has also implemented a formal procedure that provides for the measurement of the resid-
ual commodity risk, the specification of a ceiling for maximum acceptable risk and the imple-
mentation 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.
Beginning in 2021, monitoring of the risk was extended to the main raw materials to which the
Group is exposed.
In order to mitigate the risk of interruptions in the supply of fuel and raw materials, the Group
has diversified fuel sources, using suppliers from different geographical areas.
In 2021, the spread of the COVID-19 pandemic triggered a complex global economic crisis,
causing significant increases in the volatility of prices of energy commodities and other raw
materials. Enel has contained the risk below the limits estimated in 2020 for 2021, 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 strat-
egies, 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 dol-
lar 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.
The possible impacts of currency risk are reflected in:
• costs and revenue denominated in foreign currencies with respect to the time at which pric-
ing conditions were defined or the investment decision was made (economic risk);
• revaluations or adjustments to fair value of financial assets and liabilities sensitive to exchange
rates (transaction risk);
• the consolidation of subsidiaries with different currencies of account (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 man-
aged 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
122
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Integrated Annual Report 2021
Credit and
counterparty
has in many cases returned to pre-COVID 19 levels and was offset by risk mitigation actions us-
ing 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 dis-
charge 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 as-
sociated with significant exposures to a single counterparty or groups of related customers, or
to counterparties operating in the same sector or in the same geographical area.
The exposure to credit risk is attributable to the following types of operations:
• 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 in-
struments (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 neces-
sary flexibility to optimize portfolio management.
In addition, the Group undertakes transactions to factor receivables without recourse, which
results 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 tak-
en 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).
Liquidity
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 com-
mitments. Furthermore, in order to meet its medium- and long-term commitments, Enel pur-
sues a borrowing strategy 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 situa-
tions of tension or systemic crises (credit crunches, sovereign debt crises, etc.) or changes in
the perception of Group riskiness by the market.
Risk management
123
123
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 therefore restrict access to the capital market and/or increase the cost of funding, with
consequent negative effects on the financial position, financial performance and cash flows of
the Group.
In 2021, Enel’s risk profile only changed compared with 2020 for Moody’s, whose rating went
from “Baa2” with a positive outlook to “Baa1” with a stable outlook. Enel’s rating remained
“BBB+” with a stable outlook for Standard & Poor’s and “A-” with a stable outlook for Fitch.
In order to manage liquidity efficiently, treasury activities have largely been centralized at the
Parent level, meeting liquidity requirements primarily by drawing on the cash generated by or-
dinary operations and managing any cash surpluses appropriately.
As regards the impact of COVID-19, despite the effects of the pandemic the liquidity risk indi-
ces monitored for the Group remained within the limits established for 2021.
Digital Technology risks
The risks discussed in this section are as follows:
• Cyber security
• Digitalization, IT effectiveness
and service continuity
Cyber security
The speed of technological developments that constantly generate new challenges, the ever-in-
creasing frequency and intensity of cyber-attacks and the attraction of critical infrastructures
and strategic industrial 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 dramat-
ically 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 circumstance that accompanies the intrinsic
complexity and interconnection of the resources that over the years have been increasingly inte-
grated into the Group’s daily operating processes.
The Group has adopted a holistic governance approach to cyber security that is applied to all the
sectors of IT (Information Technology), OT (Operational Technology) and IoT (Internet of Things).
The framework is based on the commitment of top management, on global strategic manage-
ment, on the involvement of all business areas as well as of the units involved in the design and
implementation of our systems. It seeks to use cutting edge technologies, to design ad hoc busi-
ness 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 those risks with other tools in addition to technical countermeasures.
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Integrated Annual Report 2021
Digitalization, IT
effectiveness
and service
continuity
The Group is carrying out a complete digital transformation of how it manages the entire en-
ergy value chain, developing new business models and digitizing its business processes, inte-
grating 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
Solutions (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 over-
sees 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 successfully guide the digital transformation and mini-
mize the associated risks.
Operational risks
The risks discussed in this section are as follows:
• Health and safety
• Environment
• Procurement, logistics and supply chain
• People and organization
Health and safety
The main health and safety risks to which Enel personnel
and contractors are exposed are associated with opera-
tions at the Group’s sites and assets. The violation of the
laws, regulations and procedures governing health and
safety, work environments, management of corporate
structures, 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 admin-
istrative or judicial penalties and related economic, finan-
cial 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 probabil-
ity of occurrence, mechanical incidents (falls, collisions,
crushing and cuts) are the most common, while the most
severe in terms of potential associated impact are electri-
cal 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 poten-
tial emerging infectious diseases of a pandemic and po-
tentially 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 Sys-
tem compliant with the international standard BS OHSAS
18001, which is based on the identification of hazards, the
qualitative and quantitative assessment of risks, the plan-
ning and implementation of prevention and protection
measures, the verification of the effectiveness of the pre-
vention and protection measures and any corrective ac-
tions. This system also considers 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 manage-
ment system, based on prevention and protection meas-
ures, which also plays a role in the development of a cor-
porate culture aimed at promoting the psycho-physical
Risk management
125
125
health and organizational well-being of workers, as well as
helping to balance personal and professional life.
Furthermore, with regard to emergencies in relation to risks
connected with the ongoing pandemic, a unit has been set
up within the Personnel and Organization 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 management 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.
Additional information on risk management is provided in
the “Workplace health and safety” section.
Environment
Recent years have seen the continuation of the growth
in the sensitivity of the entire community to risks con-
nected 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 increasing ex-
ploitation and degradation of water resources, have in-
creased the risk of environmental emergencies in the
most sensitive areas of the planet, with the risk of spark-
ing competition among different uses of water resources
such as industrial, agricultural and civil uses.
In response to these needs, authorities have imposed in-
creasingly restrictive environmental regulations, placing
ever more stringent constraints on the development of
new industrial initiatives and, in the most impactful indus-
tries, incentivizing or requiring the elimination of tech-
nologies no longer considered sustainable.
Specifically, the European Commission has launched a
work plan to define challenging targets for environmen-
tal recovery, both in terms of air quality and the recovery
of rivers and contaminated land, and for the reduction of
biodiversity loss.
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 de-
veloping and adopting innovative and sustainable techni-
cal solutions and development models.
Enel has made the effective prevention and minimization
of environmental impacts and risks a foundational ele-
ment of each project across its entire life cycle.
The adoption of ISO 14001-certified environmental man-
agement systems across the entire Group ensures the
implementation of structured policies and procedures to
identify and manage the environmental risks and oppor-
tunities associated with all corporate activities. A struc-
tured control plan combined with improvement actions
and objectives inspired by the best environmental prac-
tices, with requirements exceeding those for simple en-
vironmental regulatory compliance, 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 atmos-
pheric emissions, waste production and water consump-
tion, 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 oper-
ation. Special attention is also devoted to assets in areas
with a high level of water stress, in order to develop tech-
nological solutions to reduce consumption. Ongoing col-
laboration with local river basin management authorities
enables us to adopt the most effective shared strategies
for the sustainable management of hydroelectric gener-
ation assets.
Finally, with regard to protecting biodiversity, an analysis
of the impacts/dependencies of the business on natural
resources was conducted and priority areas for action
were defined along the entire value chain. On the basis
of this analysis, 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.
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Procurement, logistics and supply chain
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.
These principles have been incorporated into the organiza-
tional processes and controls that Enel has voluntarily decid-
ed 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 fi-
nancial competitiveness but also take account of best prac-
tices in essential areas for the Group, such as the avoidance
of child labor, occupational health and safety and environ-
mental responsibility. Thanks to the greater interaction and
integration with the outside world and with the different parts
of the corporate organization, the procurement process has
assumed an increasingly central role in the creation of value.
Global Procurement contributes to a resilient and sustainable
supply chain, thinking from a circular economy perspective
and fostering innovation, sharing the Group’s values and ob-
jectives with suppliers who thereby become enablers of the
achievement of Enel’s targets.
More specifically, bonus factors have been introduced in ten-
ders in order to engender virtuous behavior on the part of
our suppliers. For example, the environmental impact of any
customer is strongly influenced by the impact of its upstream
supply chain, and that is why Global Procurement pushes its
suppliers to objectively measure their carbon footprint and
improve their performance.
From the point of view of the procurement process, the
various procurement units almost systematically adopt the
tender mechanism, thus ensuring maximum competition
and equal access opportunities for all operators who are in
People and organization
possession of the technical, economic/financial and envi-
ronmental requirements, security, human, legal and ethical
rights. Procurement with direct assignment and without a
competitive procedure can only take place in exceptional
cases, duly motivated, in compliance with current legislation
on the matter.
Furthermore, the single global supplier qualification system
for the entire Enel Group, even before the procurement pro-
cess begins, verifies that potential suppliers who intend to
participate in procurement procedures are aligned with the
Company’s strategic vision and expectations in all the areas
and requirements cited earlier and that they have adopted
the same values.
With regard to the risk governance system, Global Procure-
ment is focused on the application of metrics that indicate
the level of risk before and after the mitigation action, in or-
der to implement precautionary measures to reduce uncer-
tainty to a tolerable level or mitigate any impacts in all busi-
ness, technological and geographical areas.
The effectiveness of supply chain risk management is mon-
itored through specific indicators – including the probability
of insolvency, the concentration of contracts with individual
suppliers or industrial groups, the supplier’s dependence on
Enel, a performance indicator for the correctness of conduct
during the tender, quality, punctuality and sustainability in
the execution of the contract, country risk, etc. – for which
thresholds have been specified to guide the definition of the
procurement, negotiation and tender award strategy, ena-
bling informed choices of risk and potential benefit (savings).
The actions taken to counter the impact of the COVID-19
emergency have focused in differentiating supply sources to
avoid interruptions in the supply chain and the remote per-
formance of activities that would ordinarily require physical
interaction between Enel and the supplier (e.g., inspections
at the company).
Enel has set itself the goal of leading the transition to a
more sustainable system, an essential step for the future
of the planet, by accelerating the decarbonization of our
energy mix through an expansion of renewables and the
ever-increasing electrification of energy consumption.
Enel could be exposed to the risk of incurring judicial or
administrative penalties, economic or financial losses and
reputational harm following a partial or total interruption
of commercial operations and the supply of the electric-
ity services to customers as a result of technical failures,
malfunctioning assets and plant, human error, sabotage,
unavailability of raw materials or adverse weather events or
infectious diseases of epidemic or pandemic potential that
could limit the normal operation of the Group’s activities or
its supply chain.
The profound transformations of the energy sector have
increased the importance of recruiting people with new
experience and professional skills, as well as imposing the
need for major cultural and organizational changes in or-
der to achieve Group objectives. Organizations must move
to adopt new, agile and flexible business models. Policies to
Risk management
127
127
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 estab-
lished. These include: the development of the digital ca-
pabilities and skills, as well as the promotion of reskilling
and upskilling programs for employees in order to sup-
port the energy transition and external skilling to foster
the development of a reference ecosystem; the effective
engagement of employees in the pursuit of the corporate
purpose, which ensures the achievement of better results
while offering greater satisfaction to our people; the de-
velopment of systems for evaluating the working environ-
ment and performance; the dissemination of diversity and
inclusion policies to all countries in which the Group oper-
ates, as well as instilling an inclusive organizational culture
based on the principles of non-discrimination and equal
opportunity, key drivers for attracting and retaining talent.
The Group is involved in enhancing the resilience and flex-
ibility of organizational models through the simplification
and digitalization of processes in order to enable the ef-
fectiveness and autonomy of our people within new flexi-
ble working schemes, which have already been effectively
tested in the response to the COVID-19 pandemic emer-
gency, which will be a key element of future approaches
to work.
Compliance risks
The risks discussed in this section are as follows.
• Personal data protection
Risks connected with the protection of personal data
In the era of the digitalization and globalization of mar-
kets, Enel’s business strategy has focused on accelerating
the transformation towards a business model based on a
digital platform, using a data-driven and customer-centric
approach along the entire value chain.
The Group, which is present in more than 40 countries,
has the largest customer base in the public services sector
(more than 69 million customers), and currently employs
more than 66,000 people. Consequently, the Group’s new
business model requires the management of an increas-
ingly large and growing volume 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 protec-
tion 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 operates). These risks may re-
sult 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 de-
termined 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 personal data, with
the appointment of personnel responsible for privacy is-
sues at all levels (including the appointment of Data Pro-
tection Officers at the global and country levels) and the
adoption of digital compliance tools to map applications
and processes and manage risks with an impact on pro-
tecting personal data, in compliance with specific local
regulations in this field.
128
128
Integrated Annual Report 2021
Risk management
129
129
REPORT
ON OPERATIONS
4.
Group
Performance
Integrated disclosure
Financial and non-financial results are reported
in integrated form to give an overall view of the
Group's performance.
Group ordinary profit in 2021 up 7.6%
on 2020
An improvement in ordinary operating
performance and a decrease in non-controlling
interests following Group reorganization in Latin
America.
Capital expenditure reaches €13 billion to
accelerate the energy transition
43.6% in Enel Green Power and 40.7% in
Infrastructure and Networks. 84.6% of total
capital expenditure in businesses aligned with
the European taxonomy
55% of debt consists of sustainable financing
Consistent with its Sustainability-Linked
Financing Framework, the Group is increasingly
active in the development of sustainable finance
tools with KPIs linked to the achievement of the
Sustainable Development Goals (SDGs).
130
Integrated Annual Report 2021
131
Definition of performance
indicators
In order to present the results of the Group and the Par-
ent and analyze their financial structure, Enel has pre-
pared separate reclassified schedules that differ from the
schedules envisaged under the IFRS-EU adopted by the
Group and by Enel SpA and contained in the consolidat-
ed financial statements and separate financial statements,
respectively. These reclassified schedules contain different
performance indicators from those obtained directly from
the consolidated financial statements and separate finan-
cial statements, which management believes are useful in
monitoring the performance of the Group and the Parent
and representative of the financial performance and posi-
tion of our business.
With regard to those indicators, on April 29, 2021, CON-
SOB issued warning notice no. 5/21, which gives force to
the Guidelines issued on March 4, 2021 by the European
Securities and Markets Authority (ESMA) on disclosure re-
quirements under Regulation (EU) 2017/1129 (the Prospec-
tus Regulation), which took effect on May 5, 2021.
The Guidelines update the previous CESR Recommenda-
tions (ESMA/2013/319, in the revised version of March 20,
2013) with the exception of those concerning the special
issuers referred to in Annex no. 29 of Delegated Regulation
(EU) 2019/980, which were not converted into Guidelines
and remain applicable.
Accordingly, as from May 5, 2021, the references to the
above CESR Recommendations contained in previous
CONSOB communications shall be considered to have
been replaced by references to the ESMA Guidelines cit-
ed above, including the references in Communication no.
DEM/6064293 of July 28, 2006 regarding the net financial
position.
The Guidelines are intended to promote the usefulness
and transparency 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 comprehen-
sibility.
In line with the regulations cited above, the criteria used to
construct these indicators are the following.
Gross operating profit: an operating performance indica-
tor, calculated as “Operating profit“ plus “Depreciation,
amortization and impairment losses“.
Ordinary gross operating profit: defined as “Gross operat-
132
132
Integrated Annual Report 2021
ing profit“ from core businesses connected with the Own-
ership and Stewardship business models. It does not in-
clude costs connected with corporate restructurings and
costs directly attributable to the COVID-19 pandemic.
Ordinary operating profit: defined as “Operating profit“
from core businesses connected with the 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 gross operating profit and ex-
cluding significant impairment losses on assets and/or
groups of assets following impairment testing (including
reversals of impairment losses) or classification under “As-
sets held for sale“.
Group ordinary profit: it is defined as “Group profit“ gener-
ated by Enel’s core business connected with the Owner-
ship 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 oper-
ating profit of the set of products, services and technolo-
gies included in the following Business Lines: Enel Green
Power, Infrastructure and Networks, Enel X and End-user
Markets (excluding gas).
Net non-current assets: calculated as the difference be-
tween “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 re-
ceivables“, “Securities“, “Cash collateral“ and “Other finan-
cial assets“ included in “Other current financial assets“;
• “Cash and cash equivalents“;
• “Short-term borrowings“ and the “Current portion of
long-term borrowings“;
• “Provisions for risks and charges (current portion)“;
• “Other financial liabilities“ included in debt.
Net assets held for sale: calculated as the algebraic sum of
“Assets held for sale“ and “Liabilities included in disposal
groups held for sale“.
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 “De-
ferred tax assets“, as well as “Net assets held for sale“.
Net financial debt: a financial structure indicator, deter-
mined by:
• “Long-term borrowings“, “Short-term borrowings“ and
“Current portion of long-term borrowings“, taking ac-
count of “Long- and short-term financial borrowings“
included respectively in “Other non-current financial
liabilities“ and “Other current financial liabilities“;
• net of “Cash and cash equivalents“;
• net of the “Current portion of long-term loan assets“,
“Current securities“ and “Other financial assets“ includ-
ed in “Other current financial assets“;
• net of “Non-current securities“ and “Non-current finan-
cial assets“ included in “Other non-current financial as-
sets“.
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 8 to the consolidated finan-
cial statements.
Definition of performance indicators
133
133
Performance
of the Group
134
134
Integrated Annual Report 2021
Performance of the Group
222.6 TWh
NET ELECTRICITY GENERATION
of which 108.8 TWh of renewable
generation
57.5%
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY
for a total of 50.1 GW
45 million
END USERS WITH ACTIVE
SMART METERS(1)
69.3 million
RETAIL
CUSTOMERS
2.2 million km
ELECTRICITY
DISTRIBUTION AND
TRANSMISSION GRID
157,209 no.
CHARGING
POINTS
60% of end users are digitalized
of which 24.8 million on the free market
+49.6% on 2020
(1) Of which 23.5 million second-generation smart meters in 2021 and 18.2 million in 2020.
The following presents the operating and financial perfor-
mance of the Group.
Operations
2020
Change
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)
Net efficient installed renewables capacity (%)
Additional efficient installed renewables capacity (GW)
Electricity transported on Enel’s distribution grid (TWh)(1)
2021
222.6
108.8
87.1
50.1
57.5%
5.18
510.3
207.1
105.4
84.0
45.0
53.6%
2.91
485.2
End users with active smart meters (no.)(1) (2)
44,968,974
44,293,483
Electricity distribution and transmission grid (km)(1)
End users (no.)
Electricity sold by Enel (TWh)
Gas sold to end users (billions of m3)
Retail customers (no.)
- of which free market(1)
Demand response capacity (MW)
Charging points (no.)(1)
Storage (MW)
2,233,368
75,178,777
309.4
9.9
69,342,818
24,839,600
7,713
157,209
375
2,232,023
74,303,931
298.2
9.7
69,517,932
22,931,809
6,038
105,079
123
15.5
3.4
3.1
5.1
3.9
2.27
25.1
675,491
1,345
874,846
11.2
0.2
(175,114)
1,907,791
1,675
52,130
252
(1) The figures for 2020 reflect a more accurate calculation of the numbers.
(2) Of which 23.5 million second generation smart meters in 2021 and 18.2 million in 2020.
Performance of the Group
135
135
Net electricity generated by Enel in 2021 increased by 15.5
TWh (7.5%) from 2020. This rise mainly reflects an increase
in wind generation (+6.8 TWh), mainly in Brazil and North
America, and a larger contribution from combined-cycle
plants (+8.4 TWh), above all in Italy, Spain and Chile.
Net electricity generation by source (2021)
2021
2021
Total 222.6 TWh
2021
2021
207.1 TWh
in 2020
Total 222.6 TWh
Total renewable sources
48.9%
50.9% in 2020
Total renewable sources
48.9%
At the end of December 2021, the Group’s net efficient in-
stalled capacity totaled 87.1 GW, an increase of 3.1 GW on
2020. During 2021, 2.6 GW of new wind capacity and 2.2 GW
of new solar capacity were installed, while a number of com-
50.9% in 2020
49.1% in 2020
207.1 TWh
in 2020
Total traditional sources
51.1%
Total traditional sources
51.1%
panies in Australia were fully consolidated (0.3 GW of solar
49.1% in 2020
capacity) after having been equity accounted until December
31, 2020. At the same time, a number of coal-fired plants in
Italy and Spain were decommissioned (2.0 GW).
Net efficient installed capacity by source (2021)
25.6%
Hydroelectric
30.1% in 2020
25.6%
17.0%
Hydroelectric
Wind
30.1% in 2020
15.0% in 2020
17.0%
3.5%
Wind
Solar
15.0% in 2020
2.8% in 2020
3.5%
2.8%
Solar
Geothermal and other
2.8% in 2020
3.0% in 2020
2.8%
Geothermal and other
3.0% in 2020
32.0%
Hydroelectric
33.1% in 2020
32.0%
17.1%
Hydroelectric
Wind
33.1% in 2020
14.8% in 2020
17.1%
7.3%
Wind
Solar
14.8% in 2020
4.6% in 2020
7.3%
1.1%
Solar
Geothermal and other
4.6% in 2020
1.1% in 2020
1.1%
Geothermal and other
1.1% in 2020
23.2%
Combined-cycle
20.9% in 2020
23.2%
11.5%
Combined-cycle
Nuclear
20.9% in 2020
12.5% in 2020
11.5%
10.2%
Nuclear
Fuel oil and turbo-gas
12.5% in 2020
9.4% in 2020
10.2%
Fuel oil and turbo-gas
6.2%
9.4% in 2020
Coal-fired
6.3% in 2020
6.2%
Coal-fired
6.3% in 2020
17.3%
Combined-cycle
17.9% in 2020
17.3%
13.5%
Combined-cycle
Fuel oil and turbo-gas
17.9% in 2020
13.9% in 2020
13.5%
7.9%
Fuel oil and turbo-gas
Coal-fired
13.9% in 2020
10.6% in 2020
7.9%
Coal-fired
3.8%
10.6% in 2020
Nuclear
4.0% in 2020
3.8%
Nuclear
4.0% in 2020
2021
Total 87.1 GW
2021
84.0 GW
in 2020
Total 87.1 GW
Total renewable sources
57.5%
53.6% in 2020
Total renewable sources
57.5%
84.0 GW
in 2020
Total traditional sources
42.5%
46.4% in 2020
Total traditional sources
42.5%
53.6% in 2020
46.4% in 2020
136
136
Integrated Annual Report 2021
At the end of December 2021, the Group’s net efficient in-
stalled renewables capacity reached 50.1 GW, an increase
of 5.1 GW compared with 2020, and represents 57.5% of
total net efficient installed capacity.
Fighting climate change and ensuring environmental
sustainability
227 gCO2eq /kWh
DIRECT GREENHOUSE GAS
EMISSIONS - SCOPE 1 - SPECIFIC
+5.1% on 2020
26.3 million m3
TOTAL WATER
CONSUMPTION
+28.9% on 2020
60.3%
ZERO-EMISSIONS
GENERATION
(% of total)
€17,335 million
ORDINARY EBITDA FROM LOW-CARBON
PRODUCTS, SERVICES AND TECHNOLOGIES
€12,302 million
CAPEX ON LOW-CARBON PRODUCTS,
SERVICES AND TECHNOLOGIES
Main climate change indicators
Direct greenhouse gas emissions - Scope 1(1)
Indirect greenhouse gas emissions - Scope 2 - location based(1)
Indirect greenhouse gas emissions - Scope 2 - market based(1)
Indirect greenhouse gas emissions - Scope 3(1)
- of which emissions connected with gas sales(1)
Specific direct greenhouse gas emissions - Scope 1(1) (2)
Specific emissions of SO2
Specific emissions of NOx
Specific emissions of particulates
Zero-emission generation
Total direct fuel consumption
Average efficiency of thermal plants(3)
Water withdrawals in water-stressed areas(4)
Specific water requirement for total generation
Reference price of CO2
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(million/teq)
(gCO2eq/kWh)
(g/kWh)
(g/kWh)
(g/kWh)
(% of total)
(Mtoe)
(%)
(%)
(l/kWh)
(€)
2021
51.6
4.3
7.1
69.1
22.3
227
0.07
0.35
0.005
60.3
26.3
44.4
27.4
0.2
2020
45.7
4.1
6.9
64.9
21.9
216
0.10
0.36
0.01
63.4
23.9
44.2
23.3
0.2
53.24
24.72
Ordinary EBITDA for low-carbon products, services and technologies(5)
(millions of €)
17,335
15,703
Capex for low-carbon products, services and technologies
(millions of €)
12,302
9,575
Ratio of capex for low-carbon products, services and technologies to total
(%)
94.0
94.0
Change
5.9
0.2
0.2
4.2
0.4
11
12.9%
4.9%
2.9%
6.5%
1.8%
5.1%
(0.03)
(0.01)
-30.0%
-2.8%
(0.005)
-50.0%
(3.1)
2.4
0.2
4.1
-
28.52
1,632
2,727
-
-4.9%
10.0%
0.5%
17.6%
-
-
10.4%
28.5%
-
(1) The figures for 2020 have been modified following the introduction of a new calculation method deriving from the implementation of the Net-Zero project.
(2) Specific emissions are calculated considering total direct emissions (Scope 1) as a ratio of total renewable, nuclear and thermal generation (including the con-
tribution of heat).
(3) 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.
(4) Value for 2020 recalculated following extension of the category of plants in water-stressed areas.
(5) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12 have
been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more information, please
see note 7 to the consolidated financial statements.
Performance of the Group
137
137
The Group’s ambition for leadership in the fight against cli-
mate change was further strengthened in 2021: the target
of an 80% reduction by 2030 in Scope 1 emissions com-
pared with 2017 was confirmed, in line with the scenario for
containing temperature increases to 1.5 °C compared with
pre-industrial levels, as certified by the Science Based Tar-
gets initiative (SBTi), and achieving the Net-Zero target by
2040.
The year 2021 closed with a 6% decrease in carbon intensity
compared with the base year.
Direct emissions of CO2 equivalent (Scope 1) amounted to
51.6 million metric tons, an increase of 12.9% compared
with 2020. The increase was attributable to the growing de-
mand for electricity compared with the previous year, with a
rise in thermal generation, which offset the decline in hydro-
electric generation for the year.
Electricity generated by Enel from zero-emission sources in
2021 amounted to 60.3% of total output, a slight decrease
compared with 2020 as a result of the increase in fossil fuel
generation, but still significantly higher than in 2019 (when
it was equal to 54.9%) due to the increase in solar and wind
generation.
Specific emissions of SO2 and particulates declined com-
pared with 2020 by 30% and over 50%, respectively. Specific
NOx emissions also recorded a slight decrease (-2.8% com-
pared with 2020).
Responsible water resource management
Total withdrawals
Water withdrawals in water-stressed areas(1)
Specific water requirement for total generation
Total water consumption
Water consumption in water-stressed areas (%)(1)
(millions of m3)
(%)
(l/kWheq)
(millions of m3)
(%)
2021
55.6
27.4
0.2
26.3
33.8
2020
Change
51.5
23.3
0.2
20.4
31.6
4.1
4.1
-
5.9
2.2
8.0%
17.6%
-
28.9%
7.0%
(1) Value for 2020 recalculated following extension of the category of plants in water-stressed areas.
Water is an essential part of electricity generation, al-
though the gradual shift to renewables, notably solar and
wind, is reducing the specific water requirement.
Enel constantly monitors all generation sites located in ar-
eas at risk of water scarcity (water-stressed areas) in order
to ensure the most efficient management of the resource.
Site monitoring is conducted through the following levels
of analysis:
• mapping of generation sites in water-stressed areas
identified on the basis of the (baseline) water stress
conditions indicated by the World Resources Institute
“Aqueduct Water Risk Atlas“;
• identification of “critical“ generation sites, i.e., those lo-
cated in water-stressed areas that draw fresh water for
operating needs;
• verification of the water management procedures
adopted in these plants in order to minimize consump-
tion and maximize withdrawals from lower quality or
more abundant sources (waste, industrial or sea water).
About 14% of the Enel Group’s total electricity output uses
fresh water in water-stressed areas. In 2021 total water re-
quirements(17) were 46.5 million cubic meters, an increase
of 8% on 2020 owing to the rise in thermal generation. The
specific water requirement for 2021 was 0.2 l/kWheq.
Preserving biodiversity
Preserving biodiversity is one of the strategic objectives
of Enel’s environmental policy. The Group promotes spe-
cific projects in the various areas in which it operates in
order to help protect local species, their natural habitats,
and the local ecosystems in general. These projects cover
a vast range of areas, including: inventory and monitoring;
programs to protect specific species at risk of extinction;
methodological research and other studies; repopulation
and reforestation; the construction of infrastructure sup-
ports to promote the presence and activities of various
species (e.g., artificial nests along power distribution lines
for birds or fish ladders at hydroelectric plants), and eco-
logical restoration and reforestation programs.
In 2021, 183 projects were under way to safeguard spe-
(17) The water requirement consists of all water withdrawals from surface sources (including rainwater), underground sources, third-parties, the sea and waste-
water sources (relating to supplies from third parties) used for process needs and closed-cycle cooling, except for the amount of sea water returned to the
sea after desalination (brine). The latter item (brine), on the other hand, contributes to withdrawals.
138
138
Integrated Annual Report 2021
cies and natural habitats, with a total total of 9,092 hec-
tares involved in habitat recovery efforts. The area involved
in restoration projects in 2021 increased compared with
the previous year (4,356 hectares in 2020), reflecting both
the start of new restoration projects and an increase in the
areas involved in restoration as part of existing projects.
Electricity distribution and access, ecosystems and
platforms
Electricity transported on Enel’s distribution grid totaled
510.3 TWh in 2021, up 25.1 TWh (+5.2%) from 2020, attrib-
utable essentially to Italy (+12.3 TWh), Spain (+6.6 TWh) and
Brazil (+2.5 TWh).
The number of Enel end users with active smart meters in-
creased by 675,491 in 2021, mainly in Italy (+332,311) and
Romania (+205,006).
Electricity sold by Enel in 2021 came to 309.4 TWh, in-
creasing by 11.2 TWh (+3.8%) compared with the previous
year. Quantities increased mainly in Italy (+2.6 TWh) and
Latin America (+9.5 TWh) – mainly in Brazil (+4.1 TWh) and
Chile (+3.7 TWh). In addition, gas sold by Enel in 2021 to-
taled 9.9 billion cubic meters, an increase of 0.2 billion cu-
bic meters compared with the previous year.
Enel’s leadership position has been gained thanks to the
attention we place on the customer in providing quality
services: aspects that concern more than just the provi-
sion of electricity and/or natural gas, extending, above all,
to intangible aspects of our service that relate to the per-
ception and satisfaction of our customers.
Through our products for both the residential and business
markets, Enel provides dedicated offers with a lower envi-
ronmental 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
gas bills, so as to give everyone equal access to electricity.
Enel has also established numerous processes to ensure
customers receive a high level of service. In Italy, the com-
mercial quality of all our contact channels (customer ser-
vice calls, Enel Points and stores, utility bills, app, e-mail,
social media, account manager, fax) is ensured through
systematic monitoring of the sales and management pro-
cesses.
The goal is to ensure compliance with applicable laws and
regulations and respect for the privacy, freedom and dig-
nity of our customers.
In order to ensure the quality, accessibility and reliability of
its service, Enel is committed to ensuring an efficient and
digitalized electricity grid, which enables a more sustain-
able lifestyle through the use of electricity for all our cus-
tomers. As a DSO (distribution system operator), Enel has
embraced the challenges of the energy transition to de-
velop the grid of the future: smart, modern and digital. To
support this ambitious transformation, Grid Futurability®
has been launched, a new long-term strategy to design
the grid that Enel intends to create by 2030, both from an
industrial point of view and in integration with stakehold-
ers, with the aim of preparing it to support a decarbonized
and electrified world.
The grid also represents a “mine of materials“ that, when
suitably regenerated, can be used as inputs in the produc-
tion of new assets or new products in other production
chains. Using an approach called “grid mining“, the entire
value chain of assets is being analyzed in order to recover
valuable materials/devices from obsolete grid infrastruc-
tures, with the aim of minimizing the environmental impact
and the consumption of resources by maximizing the pos-
itive social aspects, with a view to creating long-term value.
Enel is also continuing its efforts to expand digitalization,
electronic invoicing and new services. With Enel X, we offer
innovative solutions to residential customers (technological
solutions for smart homes, home automation, solar and pho-
tovoltaic systems, boilers, maintenance services, lighting, etc.),
government customers (public lighting, monitoring services
for smart cities, security systems, etc.) and large customers
(demand response services, consulting and energy efficien-
cy solutions). We also promote electric mobility through the
development of public and private charging infrastructures.
Enel charging points increased by 52,130 units in 2021
compared with 2020. Private charging points increased
by 48,430, mainly in North America and Italy, while public
charging points increased by 3,700, primarily in Italy and
Spain.
Performance of the Group
139
139
Group performance
€17,567 million
GROSS OPERATING
PROFIT
€7,680 million
OPERATING
PROFIT
€3,189 million
GROUP PROFIT
€16,903 million in 2020
-9.2% on 2020
+22.2% on 2020
€19,210 million
ORDINARY GROSS
OPERATING PROFIT
of which 68.7% eligible and aligned
with European taxonomy
€12,235 million
ORDINARY OPERATING
PROFIT
€5,593 million
GROUP ORDINARY
PROFIT
of which 28.4% from Enel Green Power
+7.6% on 2020
Millions of euro
Ordinary income statement(1)
Income statement
Revenue(2) (3)
Costs(2)
2021
2020
Change
2021
2020
Change
88,006
66,004
22,002
33.3%
88,006
66,004
22,002
33.3%
71,318
47,878
23,440
49.0%
72,961
49,002
23,959
48.9%
Net results from commodity contracts(2)
2,522
(99)
2,621
-
2,522
(99)
2,621
-
Gross operating profit/(loss)(3)
19,210
18,027
1,183
6.6%
17,567
16,903
664
3.9%
Depreciation, amortization and impairment losses
6,975
6,656
Operating profit/(loss)(3)
Financial income(3)
Financial expense
Net financial expense(3)
Share of profit/(loss) of equity-accounted
investments
Pre-tax profit/(loss)
Income taxes
Profit/(Loss) from continuing operations
Profit/(Loss) from discontinued operations
Profit for the year (owners of the Parent and non-
controlling interests)
12,235
11,371
319
864
4.8%
7.6%
8,448
1,439
17.0%
8,455
(775)
-9.2%
5,420
8,247
4,520
900
19.9%
6,804
1,443
21.2%
4,520
7,213
(2,827)
(2,284)
(543) -23.8%
(2,751)
(2,693)
102
134
(32) -23.9%
571
(299)
904
962
(58)
870
20.0%
13.3%
-2.2%
-
9,887
7,680
5,424
8,175
9,510
2,831
6,679
-
9,221
2,541
6,680
-
6,679
6,680
289
290
3.1%
11.4%
(1)
-
(1)
-
-
-
5,500
1,643
3,857
-
5,463
1,841
3,622
37
0.7%
(198)
-10.8%
235
6.5%
-
-
-
3,857
3,622
235
6.5%
Attributable to owners of the Parent
Attributable to non-controlling interests
5,593
1,086
5,197
1,483
396
7.6%
(397)
-26.8%
3,189
668
2,610
1,012
579
22.2%
(344)
-34.0%
(1) The ordinary income statement does not include non-recurring items. The summary of results presents a reconciliation of reported figures with ordinary
figures for the following aggregates: gross operating profit, operating profit, and profit for the year (attributable to owners of the Parent).
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects of the different classification resulting from the
fair value measurement of outstanding contracts at the end of the period for purchase and sale of commodities with physical settlement. This change in
classification had no impact on operating profit. For more information, please see note 7 to the consolidated financial statements.
(3) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
140
140
Integrated Annual Report 2021
Revenue
Millions of euro
Sale of electricity
Transport of electricity
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(1)
2021
46,963
10,732
800
833
4,823
599
1,791
787
1,268
2020
34,745
10,710
932
1,395
2,718
611
602
759
819
Sale of commodities with physical settlement and fair value gain/(loss) on
contracts settled in the period(2)
13,421
8,669
Change
12,218
22
(132)
(562)
2,105
(12)
1,189
28
449
4,752
Other income
Total(1) (2)
5,989
88,006
4,044
66,004
1,945
22,002
35.2%
0.2%
-14.2%
-40.3%
77.4%
-2.0%
-
3.7%
54.8%
54.8%
48.1%
33.3%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
In 2021, revenue increased by €22,002 million due to an
increase in the sale of electricity in an environment of ris-
ing average prices, particularly in End-user Markets and in
renewables generation, particularly in Brazil and Italy. These
effects were amplified by the increase in sales in 2021 at-
tributable to commodity sales contracts with physical set-
tlement, to thermal generation as a result of greater quan-
tities generated at rising prices, particularly in Italy, Spain
and Latin America, and to the increase in revenue recog-
nized by the distribution companies in Brazil.
Also of note was the gain – recognized in “other income“ –
realized on the sale of Open Fiber for a total of €1,763 million.
Finally, with regard to revenue, we report the results of the
alignment of this indicator with the European taxonomy by
reason of their substantial contribution to climate change
mitigation, in compliance with the principle of not doing
harm to other environmental objectives (DNSH) and the
minimum social safeguards, as discussed in the sections
“European Union taxonomy“ and “Statement on the align-
ment of Enel’s business with the European taxonomy“.
Performance of the Group
141
141
Turnover (revenue) under the European taxonomy
Turnover 2021
31.0%
29.1%
€88.0 billion
39.9%(1)
Considering all retail electricity sales as
“non-eligible”
32.6%
31.0%
36.4%
€88.0 billion
(1) Excluding the capital gain on the sale of Open Fiber from turnover, eligible-aligned turnover is equal to 40.8% of total.
Eligible-aligned
Eligible-not aligned
Non-eligible
In 2021, 39.9% of turnover (revenue) was generated by
business activities aligned with the EU taxonomy, com-
pared with 46.2% in 2020.
Considering all retail electricity sales as “non-eligible“,
32.6% of revenue was aligned.
Although revenue from taxonomy eligible-aligned activ-
ities increased in 2021 compared with 2020 (by €4,654
million), thanks in particular to greater energy generation
from renewable sources and an increase in revenue from
the transmission, distribution and sale of electricity with
Certificates of Origin, the increase in revenue from not eli-
gible activities, essentially due to greater trading activities,
thermal generation and sales of gas in the retail market,
caused the percentage weight of revenue from taxonomy
eligible-aligned activities to decrease in 2021.
Costs
Millions of euro
Electricity purchases(1)
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 expenses
Capitalized costs
Total(1)
2021
28,359
4,486
16,414
3,530
5,281
15,913
2,095
(3,117)
72,961
2020
16,111
2,634
7,506
2,465
4,793
15,676
2,202
(2,385)
49,002
Change
12,248
1,852
8,908
1,065
488
237
(107)
(732)
23,959
76.0%
70.3%
-
43.2%
10.2%
1.5%
-4.9%
-30.7%
48.9%
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
Costs increased primarily as a result of increased provisioning
of commodities, particularly in relation to an increase in the
average price of fuels generally (and gas in particular) and of
electricity.
For further details on operating costs, see the notes to the
consolidated financial statements.
In addition, with regard to ordinary operating expenses, we re-
port the results of the alignment of this indicator with the Eu-
ropean taxonomy by reason of their substantial contribution
to climate change mitigation, in compliance with the principle
of not doing harm to other environmental objectives (DNSH)
and the minimum social safeguards, as discussed in the sec-
tions “European Union taxonomy“ and “Statement on the
alignment of Enel’s business with the European taxonomy“.
142
142
Integrated Annual Report 2021
Ordinary operating expenses (opex) under the European taxonomy
Opex (ordinary)
2021
31.1%
€1.4 billion(1)
4.3%
64.6%
(1) Only expenses required by the taxonomy.
Eligible-aligned
Eligible-not aligned
Non-eligible
Considering all retail electricity sales as
“non-eligible”
31.1%
4.7%
€1.4 billion(1)
64.2%
In 2021, 64.6% of ordinary operating expenses (opex) were
generated by business activities aligned with the EU tax-
onomy, compared with 65.6% in 2020. Considering all re-
tail electricity sales as “non-eligible“, 64.2% of operating
expenses were aligned.
The percentage of ordinary operating expenses of taxono-
my eligible-aligned activities decreased in 2021 compared
with the previous year, mainly reflecting a slight decrease
in transmission and distribution costs (taxonomy eligi-
ble-aligned) and an increase in thermal generation costs.
Net results from commodity contracts
Net results from commodity contracts in 2021 improved by
€2,621 million compared with the previous year, due mainly
to fluctuations in market prices.
Ordinary gross operating profit
The table below presents gross operating profit/(loss) by
Business Line.
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks(1)
End-user Markets
Enel X
Services
Holding and other
Total(1)
2021
1,702
4,815
7,663
3,086
298
79
1,567
19,210
2020
2,230
4,721
7,801
3,197
161
94
(177)
18,027
Change
(528)
94
(138)
(111)
137
(15)
1,744
1,183
-23.7%
2.0%
-1.8%
-3.5%
85.1%
-16.0%
-
6.6%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
Performance of the Group
143
143
The increase in ordinary gross operating profit is mainly
attributable to the development of new commercial ini-
tiatives by Enel X, particularly in Italy, and the start-up of
new renewable energy plants, especially in Brazil, as well as
the gain on the sale of Open Fiber within the scope of the
Stewardship business model.
These effects were only partially offset by a decrease in
margins, primarily in Italy, on trading and on End-user Mar-
kets for the release of a provision (in the amount of €75
million) in 2020 related to a dispute with a trader, as well as
the recognition of a fine of €27 million assessed by Italy’s
Privacy Authority in 2021. Gross operating profit reflects
the unfavorable trend in exchange rates, particularly in Lat-
in America, in the amount of €314 million.
Finally, the following additional effects that essentially off-
set each other should also be noted:
• the release in Spain, in 2020, of the electricity discount
provision net of allocations for early-retirement incen-
tives for a total of €377 million;
• greater provisions in 2020 for early-retirement incen-
tives in Italy in application of Article 4 of the Fornero Law
in the amount of €126 million;
• the reversal in 2021 of provisions following the closure
of a dispute concerning hydroelectric fees in Spain in
the amount of €300 million;
• gains recognized in 2021 resulting from the reimburse-
ment related to the CO2 allowances granted free of
charge in Spain in the amount of €186 million;
• a decrease in other income connected with the electri-
cal business (€288 million), mainly related to the reim-
bursement of system charges and network fees (Res-
olutions nos. 50/2018 and 461/2020 of the Regulatory
Authority for Energy, Networks and the Environment -
ARERA) within the scope of distribution operations in
Italy.
In addition, with regard to ordinary gross operating profit
(ordinary EBITDA), we report the results of the alignment
of this indicator with the European taxonomy by reason of
their substantial contribution to climate change mitiga-
tion, in compliance with the principle of not doing harm to
other environmental objectives (DNSH) and the minimum
social safeguards, as discussed in the sections “Europe-
an Union taxonomy“ and “Statement on the alignment of
Enel’s business with the European taxonomy“.
Ordinary gross operating profit (ordinary EBITDA) under the European taxonomy
EBITDA (ordinary)
2021
20.8%
€19.2 billion
10.5%
Considering all retail electricity sales as
“non-eligible”
20.8%
13.5%
€19.2 billion
68.7%(1)
65.7 %
(1) Excluding the capital gain on the sale of Open Fiber from ordinary EBITDA, eligible-aligned ordinary EBITDA is equal to 75.6% of total.
Eligible-aligned
Eligible-not aligned
Non-eligible
In 2021, 68.7% of ordinary gross operating profit was gen-
erated by business activities aligned with the EU taxonomy,
compared with 73.4% in 2020.
Considering all retail electricity sales as “non-eligible“, 65.8%
of ordinary gross operating profit was aligned in 2021.
The percentage of the ordinary gross operating profit of
taxonomy eligible-aligned activities decreased in 2021 com-
pared with 2020, mainly reflecting the changes discussed in
“Turnover (revenue) under the European taxonomy“.
144
144
Integrated Annual Report 2021
Gross operating profit
Millions of euro
2021
Ordinary gross operating profit/(loss)
1,702
4,815
7,663
3,086
298
79
1,567 19,210
Thermal Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Holding
and other
Total
Energy-transition and digitalization
costs
COVID-19 costs
Gross operating profit/(loss)
(795)
(8)
899
(47)
(7)
(423)
(94)
(15)
(160)
(56)
(1,590)
(30)
(2)
4,761
7,210
2,990
-
283
(5)
(1)
(53)
(86)
1,510 17,567
Millions of euro
2020
Thermal Generation and
Trading
Enel Green
Power
Infrastructure
and Networks(1)
End-user
Markets
Enel X
Services
Holding
and other
Total(1)
Ordinary gross operating profit/(loss)
2,230
4,721
7,801
3,197
161
94
(177) 18,027
Energy-transition and digitalization
costs
COVID-19 costs
(517)
(13)
(64)
(10)
(231)
(50)
(65)
(11)
(7)
(2)
Gross operating profit/(loss)
1,700
4,647
7,520
3,121
152
(95)
(46)
(47)
(12)
(991)
(1)
(133)
(190) 16,903
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
The Group has continued the energy-transition and digi-
talization process with additional provisions for personnel
expenses, costs for the restructuring and conversion of
certain plants in Italy, and write-downs of fuel and replace-
ment-part inventories associated with the coal plants,
which are not included in ordinary gross operating profit.
Ordinary operating profit
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks(1)
End-user Markets
Enel X
Services
Holdings and other
Total(1)
2021
729
3,480
4,813
1,753
44
(113)
1,529
2020
1,456
3,460
4,846
1,906
(7)
(85)
(205)
12,235
11,371
Change
(727)
20
(33)
(153)
51
(28)
1,734
864
-49.9%
0.6%
-0.7%
-8.0%
-
-32.9%
-
7.6%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
Ordinary operating profit for 2021 increased by €864 mil-
lion as a result of the factors described above for ordinary
gross operating profit and, above all, the increase in de-
preciation and amortization recognized in 2021 within the
scope of distribution in Italy and Spain due to the technical
obsolescence of a number of digital meters, which result-
ed in a reduction in their useful life, as well as to new plants
that have begun operating in the last two years.
Performance of the Group
145
145
Operating profit
Millions of euro
2021
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X Services
Holding
and other
Total
Ordinary operating profit/(loss)
729
3,480
4,813
1,753
Energy-transition and digitalization costs
and impairment losses
Write-downs of generation plants in Spain
- Non-Peninsular Territories, Mexico, and
Australia
Other impairment losses
COVID-19 costs
Operating profit/(loss)
(1,819)
(47)
(423)
(94)
(1,488)
(185)
-
(8)
(2,586)
(159)
(7)
3,082
-
(12)
(30)
-
-
(2)
44
(15)
-
1
-
(113)
1,529
12,235
(160)
(56)
(2,614)
-
(45)
(5)
-
-
(1)
(1,673)
(215)
(53)
4,348
1,657
30
(323)
1,472
7,680
Millions of euro
2020
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and
Networks(1)
End-user
Markets
Enel X Services
Ordinary operating profit/(loss)
1,456
3,460
4,846
1,906
Energy-transition and digitalization costs
and impairment losses
Write-down of the Mexico, Australia and
Argentina CGUs
Other impairment losses
COVID-19 costs
Operating profit/(loss)
(1,422)
(50)
(231)
(65)
-
(6)
(13)
15
(534)
(132)
(10)
(216)
-
(50)
-
(13)
(11)
2,734
4,349
1,817
(7)
(7)
-
-
(2)
(16)
(85)
(95)
-
-
(46)
(226)
Holding
and other
Total(1)
(205)
11,371
(12)
(1,882)
-
-
(1)
(750)
(151)
(133)
(218)
8,455
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
In addition to the factors described above in relation to
gross operating profit, the most significant non-recurring
items include the write-down of coal-fired plants, particu-
larly in Italy, within the scope of the broader energy tran-
sition, which is a strategic pillar for the Group, and the im-
pairment losses recognized on the assets related to the
CGUs of Spain (Non-Peninsular Territories) (€1,488 million),
Mexico (€155 million), and Australia (€30 million).
Other impairment losses mainly involve the assets asso-
ciated with the PH Chucas plant in Costa Rica to reflect
the deterioration of future earnings at this plant and the
impairment loss of €45 million for the head office following
the partial demolition of the property to be restructured.
146
146
Integrated Annual Report 2021
Group ordinary profit
Group ordinary profit in 2021 came to €5,593 million, as
compared with the €5,197 million for the same period of
the previous year.
This increase is due to the factors described above in re-
lation to ordinary operating profit, partially offset by an in-
crease in taxes.
The effective tax rate increased in 2021 as a result of:
• tax reforms in Argentina and Colombia;
• a tax inspection at Enel Iberia and related adjustment to
the tax credit;
• the tax benefit recognized in Italy in 2020 in relation to
the patent box mechanism.
These effects were partially offset by application of the
participation exemption (PEX) on the gain realized on the
sale of the investment in Open Fiber.
Group profit
Group profit in 2021 came to €3,189 million (€2,610 million
in 2020), an increase of €579 million compared with 2020.
The table below provides a reconciliation of Group profit
with Group ordinary profit, indicating the non-recurring
items and their respective impact on performance, net of
the associated tax effects and non-controlling interests.
Millions of euro
Group ordinary profit
Energy-transition and digitalization costs and impairment losses
Write-downs of generation plant assets
Other impairment losses
COVID-19 costs
Write-down of certain assets related to the sale of the investment in Slovenské elektrárne
Group profit
2021
5,593
(1,839)
(1,027)
(42)
(36)
540
3,189
2020
5,197
(1,020)
(637)
(11)
(86)
(833)
2,610
Performance of the Group
147
147
Statement on the alignment of Enel’s business with the
European taxonomy
Financial metrics calculation process
As described in the section “European Union taxono-
my“, Enel performed a specific implementation process
to classify all its economic activities along its value chain
in accordance with the following three categories: eligi-
ble-aligned, eligible-not aligned and not eligible.
The calculation of the financial metrics associated with
each economic activity was performed using a specific
process during which the following criteria were imple-
mented and the following considerations were made:
• the three financial metrics required under the Europe-
an taxonomy regulation – turnover (revenue), capital
expenditure (capex) and operating expenditure (opex
or ordinary operating expenses) – were calculated in
accordance with the eligibility analysis described in the
section “European Union taxonomy“;
• although not expressly requested, Enel also performed
an assessment for ordinary gross operating profit, be-
lieving that this metric best represents the actual finan-
cial performance of integrated utilities such as Enel;
• the financial information was collected from the ac-
counting system used by the Enel Group or from the
management systems used by the corporate Business
Lines. However, some exceptions were also made to
provide a more detailed representation of the figures
or to exclude certain specific activities from the over-
all eligibility-alignment calculation (such as non-aligned
hydroelectric generation or infrastructure considered
eligible-not aligned among eligible-aligned distribution
systems). For example, the following proxies were used:
– hydroelectric: eligible-not aligned hydroelectric
plants were excluded considering their output mul-
tiplied by average unit revenue for 2020 and 2021.
This approach was also extended to capital expendi-
ture, ordinary operating expenses and ordinary gross
operating profit;
– distribution: new connections between a substation
or network and a generation plant whose green-
house gas intensity exceeds the threshold of 100
gCO2eq/kWh have been excluded considering their
power (in MW) multiplied by average revenue (thou-
sands of euro/MW) for 2020 and 2021. This approach
was only applied to revenue and capital expenditure;
• the aggregate financial data in the reporting refer to
“segment“ values and include items concerning third
parties and inter-segment transactions;
• revenue from electricity sales was calculated consider-
ing the quantity of retail power sales by Group compa-
nies in Italy and Spain accompanied by Certificates of
148
148
Integrated Annual Report 2021
Origin (based on data from national authorities) and ap-
plying the average unit revenue. This revenue is consid-
ered eligible-aligned since it regards electricity gener-
ated using technologies that comply with the technical
screening criteria of the European taxonomy. This ap-
proach was also implemented for capital expenditure,
ordinary operating expenses and ordinary gross oper-
ating profit. To prevent double counting, eligible reve-
nue by sector is included net of inter-segment transac-
tions (Enel Green Power, Distribution and Retail);
• the 2020 data were recalculated on the basis of the new
eligibility analysis performed in 2021 after the publica-
tion of the 2020 Sustainability Report and the publica-
tion of the Climate Delegated Act in the Official Journal
of the European Union. The main differences in each
business segment are as follows:
– electricity generation: 100% of geothermal installed
capacity is now considered eligible-aligned com-
pared with 10% in the previous analysis, while an
additional 0.5% of hydroelectric installed capacity is
now considered eligible (rising from 99% to 99.5%);
– electricity transmission and distribution: DSOs in
Chile, Colombia and Peru are now considered eligible
and new infrastructure installed in 2020 to connect
power plants with a carbon intensity threshold above
100 gCO2eq/kWh have been excluded from the fi-
nancial data of all eligible-aligned DSOs;
– Enel X: e-Home and distributed generation solutions
are now considered eligible-aligned (they were pre-
viously considered not eligible);
– sales: the retail sale of electricity in Italy and Spain
accompanied by Certificates of Origin is now con-
sidered eligible-aligned (it was previously considered
not eligible);
• total revenue, capital expenditure and ordinary gross
operating profit of each specific activity correspond to
Group totals, while the total ordinary operating expens-
es of each specific activity correspond only to the total
ordinary costs considered in the types of operating ex-
penses envisaged under the European taxonomy;
• the share of the KPIs relating to each individual eco-
nomic activity is calculated on the basis of the total rev-
enue, capital expenditure and ordinary gross operating
profit of the Group and the total ordinary costs consid-
ered in the types of operating expenses envisaged by
the European taxonomy. The share of revenue, capital
expenditure, ordinary operating expenses and ordinary
gross operating profit of each individual economic ac-
tivity contributes to the climate change mitigation goal.
This is the only European taxonomy objective reported
in the table, as the alignment analysis was performed
only for this objective as it is more relevant than the cli-
mate change adaptation objective and the criteria for
the other environmental objectives are not yet available.
The 2021-2023 Strategic Plan presented on the occasion
of the 2020 Capital Markets Day held in November 2020
declared that between 80% and 90% of capital expenditure
was aligned with the European taxonomy for the three-
year period, reflecting the regulatory uncertainty prevailing
when it was announced (the Climate Delegated Act had not
yet been approved). However, 85.6% of the capital expendi-
ture established for 2021 in the 2021-2023 Strategic Plan is
now considered to be aligned with the European taxonomy
according to the updated analysis conducted in 2021. The
same main changes are considered for the restated 2020
data. In addition, the new 2022-2024 Strategic Plan pre-
sented on the occasion of the 2021 Capital Markets Day
states that over 85% of capital expenditure will be allocated
to aligned activities in the 2022-2024 period.
Statement on the alignment of Enel’s business with the European
taxonomy
In 2021, the level of alignment of the Group’s economic
activities with the European taxonomy due to their sub-
stantial contribution to the climate change mitigation
objective, in compliance with the principle of not doing
harm to other environmental objectives (DNSH) and the
minimum social safeguards is indicated in the following
tables and in the sections “Revenue“, “Costs“, “Ordinary
gross operating profit/(loss)“ and “Capital expenditure“.
Finally, EU taxonomy reporting pursuant to the European
taxonomy regulation and the delegated act is provided
in full in the 2021 Sustainability Report – Non-Financial
Statement pursuant to Regulation (EU) 2020/852.
Performance of the Group
149
149
Turnover (revenue) under the European taxonomy
DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
r
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1
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millions
of euro
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
Storage of electricity
4.10
-
-
-
-
100.0
4.3
2,392
2.7
2,195
3.3
100.0
4.1
761
0.9
477
0.7
100.0
4.5
5,976
6.8
4,543
6.9
100.0
4.6
380
0.4
484
0.8
100.0
(795)
(0.9)
(760)
(1.2)
4.9
19,907
22.6
18,761
28.4
100.0
(770)
(0.9)
(786)
(1.2)
7.3 (d)
239
0.3
243
0.4
100.0
6.3 (a)
62
0.1
5
7.3 (a-e)
9
-
1
-
-
100.0
100.0
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Economic
activities
A.1 Environmentally
sustainable activities
(taxonomy-aligned)
Electricity generation from
wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation from
hydropower
Electricity generation from
geothermal energy
I
I
I
S
E
T
V
T
C
A
D
E
N
G
I
L
A
-
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L
B
G
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L
E
Y
M
O
N
O
X
A
T
I
.
1
A
Enel Green Power and
Retail Intercompany
Transmission and
distribution of electricity
e-distribuzione and Retail
Intercompany
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport, road passenger
transport
(Enel X - e-Bus)
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Energy Efficiency)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.5 Installation,
maintenance and repair of
instruments and devices
for measuring, regulation
and controlling energy
performance of buildings
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Home/Vivi Meglio
Unifamiliare)
7.3 (a-e)
7.5 (a)
7.6 (a)
334
0.4
223
0.4
100.0
Y
Y
Y
150
150
Integrated Annual Report 2021
Economic
activities
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Condominium)
Professional services
related to energy
performance of buildings
(Enel X - Customer
Insight)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility, cycle
logistics
7.4 Installation,
maintenance and repair
of charging stations
for electric vehicles in
buildings (and parking
spaces attached to
buildings)
(Enel X - Mobility)
Market (power sales
to end customer with
Certificates of Origin)
Turnover of
environmentally
sustainable activities
(taxonomy-aligned) (A.1)
I
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A
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1
A
DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
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88
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0.1
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7.3 (d,e)
7.6 (a)
55
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44
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100.0
7.6 (f)
24
-
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100.0
Y
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Y
Y
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6.13
7.4
63
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32
-
100.0
Y
Y
Y
Y
Y
Y
6,416
7.3
4,919
7.5
35,150
39.9
30,496
46.2
100.0
Performance of the Group
151
151
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millions
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%
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Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
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T
4.5
28
-
18
-
4.9
689
0.8
648
1.0
24,890
28.3
19,916
30.2
25,607
29.1
20,582
31.2
Economic
activities
A.2 Taxonomy-eligible
but not environmentally
sustainable activities
(not taxonomy-aligned
activities)
Electricity generation
from hydropower
Transmission and
distribution of electricity
(Argentina and new
connections between
a substation and power
plant >100 gCO2eq/kWh)
Market (power sales to
end customer without
Certificates of Origin)
Turnover of taxonomy-
eligible but not
environmentally sustainable
activities (not taxonomy-
aligned activities) (A.2)
I
T
O
N
-
E
L
B
G
I
L
E
Y
M
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N
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X
A
T
.
2
A
I
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M
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X
A
T
.
B
Total (A.1 + A.2)
60,757
69.0
51,078
77.4
B. Taxonomy-not-eligible
activities
Electricity generation from
coal and liquid fossil fuels
Electricity generation
from gas
Electricity generation
from nuclear energy
Enel X (only activities
not eligible)
Trading activities (energy
sales - wholesale)
Market (gas sales to end
customer)
Services, Holding and
Other
1,904
2.2
1,639
2.5
8,064
9.1
4,783
7.2
1,388
1.6
1,342
2.0
798
0.9
585
0.9
21,799
24.8
13,973
21.2
6,276
7.1
3,821
5.8
3,930
4.5
2,025
3.1
Elisions and adjustments
(16,910)
(19.2)
(13,242)
(20.1)
Turnover of taxonomy-
non-eligible activities (B)
27,249
31.0
14,926
22.6
Total (A + B)
88,006 100.0 66,004
100.0
(1) Absolute Turnover “revenue“: revenues from each single activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the proportion of the
activity that corresponds to A.1, A.2 or B.
(2) Proportion of Turnover “revenue“: percentage impact of revenues from each individual business activity on the Group’s total revenues.
(3) Substantial contribution to climate change mitigation: refers to the share of the revenues of each individual economic activity (indicated in the column
Turnover “revenue“) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis shown in the
table, as it is considered more relevant compared to the climate change adaptation objective, while the criteria for the other environmental objectives are
not yet available.
(4) DNSH: environmental objectives meeting the DNSH criteria are specified for each activity.
(5) Minimum safeguards: indicates whether the minimum safeguards are respected for each individual activity.
(6) Category: specifies whether the activity makes a direct contribution to climate mitigation or is an enabling or transitional activity.
152
152
Integrated Annual Report 2021
Capital expenditure (capex) under the European taxonomy
DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
-
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T
Taxo-
nomy
Code
millions
of euro
%
millions
of euro
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
Economic
activities
A.1 Environmentally
sustainable activities
(taxonomy-aligned)
Electricity generation
from wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Electricity generation
from geothermal energy
4.3
2,971
22.6
2,601
25.5
100.0
4.1
1,991
15.2
1,430
14.0
100.0
4.5
416
3.2
333
3.3
100.0
4.6
122
0.9
146
1.4
100.0
I
I
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S
E
T
V
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C
A
D
E
N
G
I
L
A
-
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L
B
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Y
M
O
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O
X
A
T
I
.
1
A
Storage of electricity
4.10
153
1.2
23
0.2
100.0
4.9
5,109
39.0
3,836
37.6
100.0
7.3 (d)
53
0.4
47
0.5
100.0
6.3 (a)
(1)
7.3 (a-e)
2
-
-
32
0.3
100.0
1
-
100.0
Transmission and
distribution of electricity
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport, road
passenger transport
(Enel X - e-Bus)
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Energy Efficiency)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Y
Y
Y
Y
Y
Y
54
0.4
35
0.4
100.0
Y
Y
Y
7.5 Installation,
maintenance and repair of
instruments and devices
for measuring, regulation
and controlling energy
performance of buildings
7.3 (a-e)
7.5 (a)
7.6 (a)
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Home/Vivi Meglio
Unifamiliare)
Performance of the Group
153
153
-
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Y/N
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Y/N
Y/N
Y/N
Y/N
Y/N
E
T
Taxo-
nomy
Code
millions
of euro
7.3 (a-e)
3
%
-
millions
of euro
-
%
-
100.0
9.3
3
-
1
-
100.0
7.3 (d,e)
7.6 (a)
8
0.1
7
0.1
100.0
7.6 (f)
34
0.3
10
0.1
100.0
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
6.13
7.4
51
0.4
45
0.4
100.0
Y
Y
Y
Y
Y
Y
121
0.9
88
0.9
11,090
84.6
8,635
84.7
100.0
Economic
activities
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Condominium)
Professional services
related to energy
performance of buildings
(Enel X - Customer
Insight)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Battery Energy
Storage)
6.13 Infrastructure for
personal mobility, cycle
logistics
7.4 Installation,
maintenance and repair
of charging stations
for electric vehicles in
buildings (and parking
spaces attached to
buildings)
(Enel X - Mobility)
Market (power sales
to end customer with
Certificates of Origin)
Capex of
environmentally
sustainable activities
(taxonomy-aligned) (A.1)
I
I
I
S
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T
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C
A
D
E
N
G
I
L
A
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B
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M
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X
A
T
I
.
1
A
154
154
Integrated Annual Report 2021
-
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2
A
I
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E
T
V
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A
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Y
M
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A
T
.
B
Economic
activities
A.2 Taxonomy-eligible
but not environmentally
sustainable activities
(not taxonomy-aligned
activities)
Electricity generation
from hydropower
Transmission and
distribution of electricity
(Argentina and new
connections between
a substation and power
plant >100 gCO2eq/kWh)
Market (power sales to
end customer without
Certificates of Origin)
Capex of taxonomy-
eligible but not
environmentally
sustainable activities
(not taxonomy-aligned
activities) (A.2)
Taxo-
nomy
Code
millions
of euro
%
millions
of euro
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
4.5
2
-
2
-
4.9
174
1.3
100
1.0
425
3.3
305
3.0
601
4.6
407
4.0
Total (A.1 + A.2)
11,691
89.2
9,042
88.7
B. Taxonomy-non-eligible
activities
Electricity generation
from coal and liquid
fossil fuels
Electricity generation
from gas
Electricity generation
from nuclear energy
Enel X (only activities
not eligible)
Trading activities
(energy sales -
wholesale)
Market (gas sales to end
customer)
Services, Holding and
Other
Adjustments
Capex of taxonomy-
non-eligible activities
(B)
49
0.4
67
0.7
499
3.8
383
3.8
165
1.3
146
1.4
160
1.2
125
1.2
65
0.5
54
0.5
97
207
175
0.7
1.6
1.3
67
0.6
174
139
1.7
1.4
1,417
10.8
1,155
11.3
Total (A + B)
13,108 100.0 10,197 100.0
(1) Absolute capex “capital expenditure“: investments for each individual activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the pro-
portion of the activity that corresponds to A.1, A.2 or B.
(2) Proportion of capex “capital expenditure“: percentage impact of investments of each individual business activity on the Group’s total investments.
(3) Substantial contribution to climate change mitigation: refers to the share of capex “capital expenditure“ of each individual economic activity (indicated in
the column capex “capital expenditure“) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment
analysis shown in the table, as it is considered more relevant compared to the climate change adaptation objective, while the criteria for the other environ-
mental objectives are not yet available.
(4) DNSH: environmental objectives meeting the DNSH criteria are specified for each activity.
(5) Minimum safeguards: indicates whether the minimum safeguards are respected for each individual activity.
(6) Category: specifies whether the activity makes a direct contribution to climate mitigation or is an enabling or transitional activity.
Performance of the Group
155
155
Operating expenses (opex) under the European taxonomy
DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
)
(
1
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p
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Taxo-
nomy
Code
millions
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Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
4.3
101
7.3
86
5.9
100.0
4.1
44
3.2
27
1.9
100.0
4.5
188
13.5
191
13.1
100.0
Electricity generation from
geothermal energy
4.6
Storage of electricity
4.10
6
-
0.4
6
0.4
100.0
-
-
-
100.0
4.9
546
39.3
636
43.5
7.3 (d)
2
0.1
2
0.1
100.0
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Y
6.3 (a)
-
7.3 (a-e)
-
-
-
-
-
-
-
100.0
Y
Y
Y
7.3 (a-e)
7.5 (a)
7.6 (a)
2
0.1
1
0.1
100.0
Y
Y
Y
Y
Economic
activities
A.1 Environmentally
sustainable activities
(taxonomy-aligned)
Electricity generation from
wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation from
hydropower
I
I
I
S
E
T
V
T
C
A
D
E
N
G
I
L
A
-
E
L
B
G
I
L
E
Y
M
O
N
O
X
A
T
I
.
1
A
Transmission and
distribution of electricity
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport, road passenger
transport
(Enel X - e-Bus)
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Energy Efficiency)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.5 Installation,
maintenance and repair of
instruments and devices
for measuring, regulation
and controlling energy
performance of buildings
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Home/Vivi Meglio
Unifamiliare)
156
156
Integrated Annual Report 2021
)
(
1
x
e
p
o
e
t
u
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s
b
A
l
i
f
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2
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(
2
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(
3
n
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a
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DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
e
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7.3 (a-e)
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Economic
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measures consisting in
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(Enel X - Condominium)
Professional services
related to energy
performance of buildings
(Enel X - Customer Insight)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Battery Energy
Storage)
I
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100.0
7.3 (d,e)
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100.0
7.6 (f)
1
0.1
1
0.1
100.0
.
1
A
6.13 Infrastructure for
personal mobility, cycle
logistics
7.4 Installation,
maintenance and repair
of charging stations
for electric vehicles in
buildings (and parking
spaces attached to
buildings)
(Enel X - Mobility)
Market (power sales
to end customer with
Certificates of Origin)
Opex of environmentally
sustainable activities
(taxonomy-aligned) (A.1)
6.13
7.4
1
0.1
2
0.1
100.0
6
0.4
5
0.3
100.0
898
64.6
958
65.6
100.0
Y
Y
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Y
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Y
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Performance of the Group
157
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Taxo-
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Code
millions
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%
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%
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Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
Economic
activities
A.2 Taxonomy-eligible
but not environmentally
sustainable activities
(not taxonomy-aligned
activities)
Electricity generation from
hydropower
4.5
1
0.1
1
-
Transmission and
distribution of electricity
(Argentina and new
connections between
a substation and power
plant >100 gCO2eq/kWh)
Market (power sales to
end customer without
Certificates of Origin)
Opex of taxonomy-
eligible but not
environmentally
sustainable activities
(not taxonomy-aligned
activities) (A.2)
4.9
25
1.8
19
1.3
34
2.4
29
2.0
60
4.3
49
3.3
Total (A.1 + A.2)
958
68.9
1,007
68.9
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B. Taxonomy-non-eligible
activities
Electricity generation from
coal and liquid fossil fuels
Electricity generation
from gas
Electricity generation from
nuclear energy
Enel X (only activities not
eligible)
Trading activities (energy
sales - wholesale)
Market (gas sales to end
customer)
I
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B
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M
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A
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B
Services, Holding and
Other
59
4.2
78
5.3
228
16.4
233
15.9
97
18
8
8
7.0
1.3
0.6
0.6
95
6.5
13
0.9
9
5
0.7
0.3
99
7.1
101
7.0
Elisions and adjustments
(85)
(6.1)
(80)
(5.5)
Opex of taxonomy-non-
eligible activities (B)
432
31.1
454
31.1
Total (A + B)
1,390
100.0
1,461
100.0
(1) Absolute opex: opex for each individual activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the proportion of the activity that
corresponds to A.1, A.2 or B.
(2) Proportion of opex: percentage impact of opex of each individual business activity out of the total ordinary operating expenses required by the taxonomy
at Group level.
(3) Substantial contribution to climate change mitigation: refers to the share of ordinary opex for each individual economic activity (indicated in the column
Absolute opex) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis shown in the table,
as it is considered more relevant compared to the climate change adaptation objective, while the criteria for the other environmental objectives are not yet
available.
(4) DNSH: environmental objectives meeting the DNSH criteria are specified for each activity.
(5) Minimum safeguards: indicates whether the minimum safeguards are respected for each individual activity.
(6) Category: specifies whether the activity makes a direct contribution to climate mitigation or is an enabling or transitional activity.
158
158
Integrated Annual Report 2021
Ordinary gross operating profit under the European taxonomy
DNSH Criteria (“Do No Significant Harm“)(4)
Category(6)
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Y/N
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Y/N
Y/N
Y/N
Y/N
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Storage of electricity
4.10
-
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-
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100.0
4.3
1,393
7.3
1,490
8.3
100.0
4.1
384
2.0
340
1.9
100.0
4.5
2,771
14.4
2,570
14.2
100.0
4.6
236
1.2
350
1.9
100.0
4.9
7,616
39.7
7,748
43.0
100.0
7.3 (d)
73
0.4
91
0.5
100.0
6.3 (a)
14
0.1
2
-
100.0
7.3 (a-e)
2
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100.0
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Y
Y
Economic
activities
A.1 Environmentally
sustainable activities
(taxonomy-aligned)
Electricity generation from
wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation from
hydropower
Electricity generation from
geothermal energy
I
I
I
S
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T
V
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C
A
D
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N
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A
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B
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Y
M
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X
A
T
I
.
1
A
Transmission and
distribution of electricity
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport, road passenger
transport
(Enel X - e-Bus)
Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
(Enel X - Energy Efficiency)
7.3 Individual renovation
measures consisting in
installation, maintenance
or repair of energy
efficiency equipment
7.5 Installation,
maintenance and repair of
instruments and devices
for measuring, regulation
and controlling energy
performance of buildings
7.6 Installation,
maintenance and repair
of renewable energy
technologies
(Enel X - Home/Vivi Meglio
Unifamiliare)
7.3 (a-e)
7.5 (a)
7.6 (a)
135
0.7
89
0.5
100.0
Y
Y
Y
Performance of the Group
159
159
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Installation, maintenance
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Storage)
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maintenance and repair
of charging stations
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spaces attached to
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Market (power sales
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Certificates of Origin)
Ordinary EBITDA
of environmentally
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(taxonomy-aligned) (A.1)
Taxo-
nomy
Code
millions
of euro
millions
of euro
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
7.3 (a-e)
1
-
-
-
100.0
9.3
16
0.1
13
0.1
100.0
7.3 (d,e)
7.6 (a)
5
-
3
-
100.0
7.6 (f)
(3)
-
3
-
100.0
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
6.13
7.4
(11)
(0.1)
(40)
(0.2)
100.0
Y
Y
Y
Y
Y
Y
565
2.9
568
3.2
13,197
68.7
13,227
73.4
100.0
160
160
Integrated Annual Report 2021
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(
3
n
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i
t
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m
Economic
activities
A.2 Taxonomy-eligible
but not environmentally
sustainable activities
(not taxonomy-aligned
activities)
Electricity generation from
hydropower
Transmission and
distribution of electricity
(Argentina and new
connections between
a substation and power
plant >100 gCO2eq/kWh)
Market (power sales to
end customer without
Certificates of Origin)
Ordinary EBITDA of
taxonomy-eligible but
not environmentally
sustainable activities
(not taxonomy-aligned
activities) (A.2)
Taxo-
nomy
Code
millions
of euro
millions
of euro
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
4.5
17
0.1
9
-
4.9
4
-
48
0.3
1,990
10.4
2,065
11.4
2,011
10.5
2,122
11.7
Total (A.1 + A.2)
15,208
79.2
15,349
85.1
I
T
O
N
-
E
L
B
G
I
L
E
Y
M
O
N
O
X
A
T
.
2
A
I
I
I
S
E
T
V
T
C
A
D
E
N
G
I
L
A
B. Taxonomy-non-eligible
activities
Electricity generation from
coal and liquid fossil fuels
Electricity generation from
gas
Electricity generation from
nuclear energy
Enel X (only activities not
eligible)
Trading activities (energy
sales - wholesale)
Market (gas sales to end
customer)
Services, Holding and Other
I
I
I
I
S
E
T
V
T
C
A
E
L
B
G
I
L
E
T
O
N
Y
M
O
N
O
X
A
T
.
B
Adjustments
Ordinary EBITDA of
taxonomy-non-eligible
activities (B)
282
906
1.4
4.7
535
3.0
659
3.7
416
2.2
439
2.4
68
98
422
1,645
165
0.3
0.5
2.2
8.6
0.9
1
-
597
3.3
447
2.5
(83)
83
(0.5)
0.5
4,002
20.8
2,678
14.9
Total (A + B)
19,210 100.0 18,027 100.0
(1) Ordinary gross operating profit (EBITDA): Ordinary gross operating profit on each individual asset. If an activity is present in both A.1 and A.2 or B, the figure
refers to the proportion of the activity that corresponds to A.1, A.2 or B.
(2) Proportion of ordinary gross operating margin (ordinary EBITDA): percentage impact of EBITDA of each individual business on the Group’s total EBITDA.
(3) Substantial contribution to climate change mitigation: refers to the portion of EBITDA of each individual business activity (indicated in the column Ordinary
gross operating profit (EBITDA)) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis
shown in the table, as it is considered more relevant compared to the climate change adaptation objective, while the criteria for the other environmental
objectives are not yet available.
(4) DNSH: environmental objectives meeting the DNSH criteria are specified for each activity.
(5) Minimum safeguards: indicates whether the minimum safeguards are respected for each individual activity.
(6) Category: specifies whether the activity makes a direct contribution to climate mitigation or is an enabling or transitional activity.
Performance of the Group
161
161
Value generated
and distributed
for stakeholders
Millions of euro
Economic value generated directly(1) (2)
Economic value distributed directly
Operating expenses(1)
Personnel expenses and benefits
Payments to providers of capital (shareholders and lenders)
Payments to government(3) (4)
Total economic value distributed(1) (4)
Economic value retained(1) (2) (4)
2021
88,084
63,768
4,415
7,428
4,127
79,738
8,346
2020
66,100
42,634
3,956
7,082
4,260
57,932
8,168
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
(3) The amount represents “total tax borne“, which is costs for taxes borne by the Group. For more information, see the 2021 Sustainability Report and the
Consolidated Non-Financial Statement.
(4) The figure for 2020 has been calculated more accurately.
The economic value generated and distributed direct-
ly by Enel, in accordance with the criteria established by
GRI 201, provides a good indication of how the Group has
created wealth for all stakeholders. The increase in value
generated directly and in operating expenses reflects the
sharp rise in commodity prices, especially gas.
Payments to providers of capital increased in reflection of
costs connected with the early redemption of a number of
bond issues.
162
162
Integrated Annual Report 2021
Analysis of the Group’s
financial position and structure
€94,294 million
NET CAPITAL
EMPLOYED
€51,952 million
NET FINANCIAL
DEBT
55.0%
SUSTAINABLE
FINANCING
€87,772 million in 2020
+14.4% on 2020
out of €71,969 million
in gross borrowing
€13,108 million
TOTAL CAPITAL
EXPENDITURE
of which 84.6% eligible and
aligned with European
taxonomy
Net capital employed and funding
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, 2021 at Dec. 31, 2020
Change
102,733
13,821
704
(4,496)
96,489
13,779
861
(6,807)
112,762
104,322
16,076
3,109
(762)
(10,940)
(16,959)
(9,476)
103,286
(2,724)
(6,548)
(9,272)
280
94,294
42,342
51,952
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
6,244
42
(157)
2,311
8,440
4,030
708
1,993
(3,963)
(4,100)
(1,332)
7,108
240
(498)
(258)
(328)
6,522
(15)
6,537
6.5%
0.3%
-18.2%
34.0%
8.1%
33.5%
29.5%
72.3%
-56.8%
-31.9%
-16.4%
7.4%
8.1%
-8.2%
-2.9%
-53.9%
7.4%
-
14.4%
Property, plant and equipment and intangible assets in-
creased, essentially reflecting capital expenditure during
the period (€12,090 million) and changes in the consoli-
dation scope (€395 million) related mainly to the acquisi-
tion of a controlling interest in Enel Green Power Australia.
These factors were partially offset mainly by depreciation,
amortization and impairment losses recognized during the
year in the amount of €8,695 million.
Goodwill increased as a result of adjustments in exchange
rates.
Other net non-current assets increased in response to the
fair value measurement of derivatives and an increase in
financial assets related to service concessions for which
IFRIC 12 has been applied.
Analysis of the Group’s financial position and structure
163
163
Equity-accounted investments decreased due mainly to
the write-down of the investment in Slovak Power Holding
in response, primarily, to the reduction in the fair value of
the cash flow hedge derivatives.
Net assets held for sale refer mainly to a number of pro-
jects in South Africa for which there is a binding offer for
their future sale. The reduction is due to the sale of Open
Fiber in 2021 and the sale of Enel Green Power Bulgaria.
Net capital employed came to €94,294 million at Decem-
ber 31, 2021, and was funded by €42,342 million in equity
attributable to owners of the Parent and minority interests
and €51,952 million in net financial debt. With regard to
the latter, the debt/equity ratio at December 31, 2021 was
1.23 (compared with 1.07 at December 31, 2020).
Net financial debt
The Enel Group’s net financial debt and changes in the pe-
riod are detailed in the table below.
Millions of euro
Long-term debt:
- bank borrowings
- bonds
- other borrowings(1)
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(2)
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, 2021 at Dec. 31, 2020
Change
12,579
39,099
2,942
54,620
(2,692)
51,928
989
1,329
2,318
2,700
342
10,708
918
363
15,031
(1,538)
(6,485)
(356)
(8,946)
(17,325)
24
51,952
699
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
3,916
742
443
5,101
53
5,154
(380)
618
238
1,288
(45)
5,854
548
(52)
7,593
(110)
(3,262)
(103)
(2,973)
(6,448)
1,383
6,537
53
45.2%
1.9%
17.7%
10.3%
1.9%
11.0%
-27.8%
86.9%
11.4%
91.2%
-11.6%
-
-
-12.5%
-
-7.7%
-
-40.7%
-49.8%
-59.3%
-
14.4%
8.2%
(1)
(2)
Includes other non-current financial borrowings included under “Other non-current financial liabilities“.
Includes current borrowings included under “Other current financial liabilities“.
164
164
Integrated Annual Report 2021
Net financial debt amounted to €51,952 million at De-
cember 31, 2021, an increase of €6,537 million from
the €45,415 million at December 31, 2020. This was due
mainly to: (i) funding needs for investments in the peri-
od (€13,108 million, including €111 million reclassified
as available for sale), including contract assets; (ii) the
payment of dividends totaling €5,041 million, including
coupons paid to holders of hybrid bonds in the amount
of €71 million; (iii) transactions in non-controlling inter-
ests mainly related to the increase in the interest held in
Enel Américas following the public tender offer issued on
March 15, 2021 (€1,295 million); (iv) adverse exchange rate
developments (€1,918 million); (v) an increase in lease lia-
bilities (€479 million); (vi) the payments and consolidation
of debt connected with business combinations in Aus-
tralia, Spain and Italy (a total of €283 million).
Cash flows generated by operating activities (€10,069
million), the issue of perpetual hybrid bonds (€2,214 mil-
lion net of transaction costs), the conversion of hybrid
bonds into perpetual hybrid bonds (€967 million net of
transaction costs) and the liquidity generated by the sale
of Open Fiber in the amount of €2,423 million partially
offset these funding needs.
Gross financial debt at December 31, 2020 came to
€71,969 million, up €12,932 million from the previous year.
Gross financial debt
Millions of euro
Gross financial debt
of which:
- sustainable financing
Sustainable financing/Total gross debt (%)
at Dec. 31, 2021
at Dec. 31, 2020
Gross long-term
debt
Gross short-term
debt
Gross debt
Gross long-term
debt
Gross short-term
debt
Gross debt
58,651
13,318
71,969
52,687
6,350
59,037
28,973
10,474
39,447
55%
15,748
3,901
19,649
33%
More specifically, gross long-term financial debt (including
the short-term portion), in the amount of €58,651 million,
includes €28,973 million in sustainable financing and is
structured as follows:
• bonds in the amount of €41,799 million, of which
€18,003 million in sustainable bonds, up €2,030 mil-
lion compared with December 31, 2020. The change
in bonds is due mainly to the numerous sustainabili-
ty-linked issues by Enel Finance International in 2021,
which were only partially offset by redemptions of ma-
turing bonds, early repurchases of conventional bonds
by Enel Finance International, and a consent solicita-
tion in the amount of €900 million by Enel SpA on a
non-convertible subordinated hybrid bond converted
into perpetual hybrid and, therefore, recognized as an
equity instrument and no longer as a debt instrument;
• bank borrowings in the amount of €13,568 million,
€10,970 million of which related to sustainable financ-
ing. These borrowings increased by €3,536 million com-
pared with the previous year due mainly to the use of
new financing and negative currency differences, which
were only partially offset by repayments made during
the period. Of note among new bank borrowings:
– €1,508 million related to the use of three varia-
ble-rate loans tied to sustainable development goals
granted to Enel SpA;
– €1,400 million related to the use of various loans tied
to sustainable development goals granted to Endesa;
– €300 million related to the use of two variable-rate
loans tied to sustainable development goals granted
to e-distribuzione by the European Investment Bank;
• other borrowings in the amount of €3,284 million, an
increase of €398 million from the previous year.
Gross short-term financial debt increased by €6,968 mil-
lion compared with December 31, 2020, to €13,318 million.
It mainly includes commercial paper of €10,708 million, of
which €10,343 connected with sustainability goals.
Cash and cash equivalents and short-term financial
assets, in the amount of €20,017 million, increased by
€6,395 million compared with the end of 2020 due mainly
to the increase in financial assets for cash collateral in the
amount of €3,262 million and in cash and cash equivalents
with banks and short-term securities for a total of €2,973
million.
Analysis of the Group’s financial position and structure
165
165
Sustainable finance: private and public finance to mobilize
capital at the service of climate objectives
For Enel, “sustainable finance“ means the synergy between
private and public finance. In particular, private finance
conveys private capital towards sustainable investments
or for the benefit of companies whose strategic action is
directed at certain sustainability objectives, reflecting the
economic and financial value of sustainability in a lower
borrowing costs. Public finance, on the other hand, stim-
ulates the creation of sustainable investments through
grants and loans at subsidized interest rates.
At Enel, sustainable finance plays a crucial role in support-
ing the Group’s sustainable growth, representing, at the
end of 2021, more than half of our gross debt and con-
tributing to a progressive reduction in the cost of debt
through the recognition of the value of sustainability.
It is for this reason that during 2021 Enel extended this sus-
tainability-linked approach to all its financial debt instru-
ments, with the publication of the “Sustainability-Linked
Financing Framework“, a comprehensive document with
which Enel illustrated how sustainability can be integrated
into its various types of financial transaction: credit lines,
commercial paper, bond issues, guarantees and deriva-
tives on interest rates and exchange rates.
Enel was the first company to structure a framework with
these characteristics. The framework establishes a set of
KPIs, targets and principles that govern the development
of sustainable finance throughout the Group with ambition
and transparency, linking our financial strategy to our sus-
tainability objectives.
The Group’s financial instruments and financial transactions
may therefore have an interest rate or other financial or
structural terms linked to the achievement of objectives for
the reduction of direct greenhouse gas emissions (SDG 13
“Climate Action“) or growth in installed renewables capacity
(SDG 7 “Affordable and Clean Energy“).
The Sustainability-Linked Financing Framework was up-
dated in January 2022 following the presentation of the
new Strategic Plan and in particular includes bringing for-
ward achievement of the ambitious goal of eliminating
direct greenhouse gas emissions (Scope 1) from 2050 to
2040.
Direct greenhouse gas emissions
(Scope 1) - specific
Percentage of installed renewables
capacity(1)
Actual
2021
227
gCO2eq/kWh
Target
2021
2022
2023
2024
2030
2040
148
gCO2eq/kWh
140
gCO2eq/kWh
82
gCO2eq/kWh
0
gCO2eq/kWh
57.5%
55%
60%
65%
66%
80%
100%
(1) The calculation of the KPIs does not include 3.9 MW of capacity connected with generation plants acquired by the Group, in accordance with the contrac-
tual terms of the individual instruments.
Having achieved 57.5% of installed renewables capacity in
2021, Enel has achieved the target set in all the financial
instruments in which the interest rate, or other financial
or structural terms of the transaction, are linked to a per-
centage of installed renewables capacity equal to or great-
er than 55%. In particular, this includes the achievement
of the targets contained in the first sustainability-linked
bonds issued by Enel Finance International NV (EFI) in 2019
on the US and European markets.
Furthermore, 2021 was an exciting year for the Group and
its sustainable finance strategy, with structured transac-
tions amounting to the equivalent of more than €30 billion.
Starting with the exposures of the various industrial activ-
ities, Enel has signed agreements with multiple financial
counterparties for both derivatives and sustainable guar-
antees, both of which are linked to the Group’s ability to
achieve its sustainability objectives in subsequent years.
Furthermore, in March 2021, Enel agreed a sustainabil-
ity-linked revolving credit facility worth €10 billion, the
largest sustainable credit line in the world at the time of
signing, linked to SDG 13. In May 2021, Enel Finance Amer-
ica LLC structured a $5 billion commercial paper program,
again linked to the same sustainability goal.
With regard to bond issues, between June and Septem-
ber 2021, sustainability-linked bonds in euros and dollars
were issued by EFI in a total amount equivalent to about
€10 billion.
These issues are linked to the achievement of Enel’s sus-
tainability goal for the reduction of direct greenhouse gas
emissions (Scope 1), in line with the Group’s Sustainabili-
ty-Linked Financing Framework. At the same time, EFI re-
purchased conventional bond in circulation, not linked to
the pursuit of SDG objectives, in the total amount of some
€8 billion, using voluntary purchase offers and the exercise
of specific buyback options.
This bond repurchase program, together with the new sus-
tainability-linked bond issues, made it possible to achieve
a ratio between sustainable funding sources and the
Group’s total gross debt of about 55% at the end of 2021,
166
166
Integrated Annual Report 2021
while also enabling a reduction of the cost of the Group’s
borrowing and providing an important mechanism for pro-
tecting against potential increases in interest rates due to
the acceleration of the economic recovery or the tighten-
ing of monetary policies by central banks in response to
the rise in inflation.
In the area of public finance, the Group supports the eco-
nomic recovery plan and intends to become a strategic
partner in the implementation of the Green Deal and the
Recovery Plan at both the European and national levels. The
goal is to drive a sustainable, rapid and effective recovery
through a broad pipeline of shovel-ready projects focused
on decarbonization, electricity grids and electrification,
aimed at accelerating the green and digital transition of
the European economy with a significant impact in terms
of GDP, employment and reduction of CO2 emissions, in full
alignment with the European taxonomy.
To this end, the Group has identified potential investments
amounting to about €5.4 billion in 2022-2027 that will have
a direct impact on the Group and are consistent with the
National Recovery Plans in Italy, Spain and Romania. These
initiatives focus on green hydrogen, renewables and stor-
age, revitalization of the photovoltaic manufacturing in-
dustry, smart grids, grid resilience and charging infrastruc-
ture for electric mobility. These investments are expected
to have a spill-over impact on GDP of around €13.2 billion,
creating over 18,000 new jobs.
The Group has also developed other projects with an indi-
rect impact, aimed at promoting partnerships with public
and private entities, both with a view to the decarboniza-
tion and electrification of energy consumption through
the expansion of electric bus fleets, the transition to green
ports and the promotion of energy efficiency in public
buildings.
Furthermore, in the context of subsidized loans from inter-
national and national financial institutions, the Group is lead-
ing an innovation process aimed at accelerating the mobili-
zation of capital to support sustainable growth through the
use of sustainability-linked financial instruments.
More specifically, in 2021, the Group received subsidized
loans totaling €1.3 billion that, following the path taken in
our private-sector financing, include sustainability-linked
mechanisms connected with SDG 13. Among the main
transactions, special mention goes to a €600 million sus-
tainability-linked loan to e-distribuzione, a Group compa-
ny, from the European Investment Bank (EIB), the first sus-
tainability-linked loan agreement for the EIB.
In the coming years, Enel will continue to make use of sus-
tainable finance tools, with the aim of achieving a ratio be-
tween sustainable borrowing and the Group’s total debt of
about 65% by 2024 and over 70% by 2030.
Sustainability-linked finance will therefore continue to rep-
resent the perfect tool for linking ambitious climate objec-
tives with funding sources and addressing the future chal-
lenges of the energy transition.
Cash flows
Millions of euro
Cash and cash equivalents at the beginning of the year(1)
Cash flows from operating activities
Cash flows from 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)
2021
6,002
10,069
(10,875)
3,777
17
8,990
2020
9,080
11,508
(10,117)
(3,972)
(497)
6,002
Change
(3,078)
(1,439)
(758)
7,749
514
2,988
(1) Of which cash and cash equivalents in the amount of €5,906 million at January 1, 2021 (€9,029 million at January 1, 2020), short-term securities in the
amount of €67 million at January 1, 2021 (€51 million at January 1, 2020), and cash and cash equivalents pertaining to assets held for sale in the amount of
€29 million at January 1, 2021.
(2) Of which, cash and cash equivalents in the amount of €8,858 million at December 31, 2021 (€5,906 million at December 31, 2020), short-term securities in
the amount of €88 million at December 31, 2021 (€67 million at December 31, 2020), and cash and cash equivalents pertaining to assets held for sale in the
amount of €44 million at December 31, 2021 (€29 million at December 31, 2020).
Cash flows from operating activities for 2021 produced a
net inflow of €10,069 million, down €1,439 million from the
previous year, mainly reflecting an increase in financial ex-
pense connected with the early extinguishment of a num-
ber of loans replaced by new bond issues at more advanta-
geous rates and higher taxes paid.
Cash flows from investing activities for 2021 absorbed li-
quidity in the amount of €10,875 million, compared with a
net outflow of €10,117 million in 2020.
In particular, investments in property, plant and equipment,
intangible assets, investment property and contract assets
totaled €13,108 million (including €111 million reclassified as
available for sale), an increase on the previous year, as ana-
lyzed in greater in the following section.
Analysis of the Group’s financial position and structure
167
167
Investments in entities or business units, net of cash and
cash equivalents acquired, totaled €283 million and main-
ly concerned the acquisition of renewable energy assets
in Spain for €79 million, the line-item consolidation of the
net financial debt of a number of Australian companies that
were equity-accounted until December 2020, and the ac-
quisition of CityPoste Payment SpA for about €19 million.
Disposals of entities or business units, net of cash and cash
equivalents sold, amounted to €61 million, and mainly re-
garded the sale of wind operations in Bulgaria.
The liquidity generated by the decrease in other investing
activities in 2021, equal to €2,455 million, mainly concerned
the €2,423 million change in cash flows produced by the
sale of Open Fiber.
Cash flows from financing activities generated liquidity
in the total amount of €3,777 million, compared with a net
cash use of €3,972 million in 2020. The cash flow for 2021
essentially concerned:
• the payment of dividends in the amount of €4,970 mil-
lion, as well as €71 million paid to holders of perpetual
hybrid bonds;
• the cash requirement associated with transactions in
non-controlling interests in the amount of €1,295 million,
mainly regarding the increase in the interest held in Enel
Américas following the tender offer launched on March
15, 2021;
• the net increase of €7,913 million resulting from repay-
ments, new financing and other changes in financial debt;
• the €2,213 million in cash generated on the issue of a
non-convertible perpetual subordinated hybrid bond net
of transaction costs as well as ancillary costs related to
the conversion of a number of bonds into perpetual hy-
brid bonds.
In 2021, cash flows for investing activities in the amount of
€10,875 million absorbed the entirety of cash flows gen-
erated on operating activities of €10,069 million. The dif-
ference was covered by borrowing, which generated cash
flows totaling €3,777 million. The difference is reflected in
the increase in cash and cash equivalents, which at De-
cember 31, 2021 amounted to €8,990 million, compared
with €6,002 million at the end of 2020. This also reflect-
ed the effects of favorable developments in the exchange
rates of the various local currencies against the euro in the
amount of €17 million.
Capital expenditure
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Holding and other
Total
2021
822
5,662(1)
5,296
643
367
139
68
2020
694
4,629
3,937
460
303
103
71
Change
128
1,033
1,359
183
64
36
(3)
12,997
10,197
2,800
18.4%
22.3%
34.5%
39.8%
21.1%
35.0%
-4.2%
27.5%
(1) The figure does not include €111 million regarding units classified as “held for sale“.
Capital expenditure increased by €2,800 million on the
previous year.
In line with the Paris Agreement on the reduction of CO2
emissions and guided by energy efficiency and ener-
gy-transition goals, the Enel Group has invested, above all,
in renewable energy. More specifically, the increase pri-
marily concerned the United States (€579 million), Iberia
(€253 million), Colombia (€192 million), Italy (€123 million),
India (€122 million), Russia (€68 million), Chile (€66 million),
Peru (€26 million), Panama (€25 million), and Brazil (€30
million, net of the significant unfavorable impact of ex-
change rate developments in the amount of €62 million).
These increases were only partially offset by decreased
capital expenditure in South Africa (€338 million), Mexico
(€118 million) and Greece (€23 million).
In response to increasingly volatile weather events and to
invest in grid resilience, investment in electricity distribu-
tion also increased.
Capital expenditure for distribution increased in Italy (€588
million), Brazil (€335 million), Iberia (€243 million), for the
Grid Blue Sky project and for quality and remote control,
Argentina (€74 million), Chile (€38 million), Peru (€29 mil-
168
168
Integrated Annual Report 2021
lion), Colombia (€31 million) and Romania (€10 million).
Capital expenditure increased in the End-user Markets
Business Line, particularly in Italy (€117 million), Iberia (€57
million) and Romania (€9 million), attributable essentially to
the digitalization of customer-management processes.
Capital expenditure by Enel X increased mainly in Italy, in
the amount of €63 million, in the e-Home business with
the Vivi Meglio project as a result of the increase in vol-
umes and for investments to develop global technology
platforms for the digital management of this business, and
in North America (€10 million) for the development of stor-
age projects, as well as in Iberia in the e-Home business in
response to the increase in volumes sold compared with
2020. These factors were partly offset by a decrease in
capital expenditure in Latin America.
The growth of capital expenditure in Thermal Generation
and Trading, especially in Italy (€123 million), is attributable
to the conversion of a number of plants from coal to gas
with lower CO2 emissions.
Finally, with regard to capital expenditure (capex), we re-
port the results of the alignment of this indicator with the
European taxonomy by reason of its substantial contribu-
tion to climate change mitigation, in compliance with the
principle of not doing harm to other environmental objec-
tives (DNSH) and the minimum social safeguards, as dis-
cussed in the sections “European Union taxonomy“ and
“Statement on the alignment of Enel’s business with the
European taxonomy“.
Capital expenditure (capex) under the European taxonomy(1)
CAPEX 2021
10.8%
4.6%
€13.1 billion
Considering all retail electricity sales as
“non-eligible”
10.8%
5.5%
€13.1 billion
83.7%
84.6%
(1)
Includes €111 million regarding units classified as “held for sale“.
Eligible-aligned
Eligible-not aligned
Non-eligible
In 2021, 84.6% of capital expenditure (capex) was gener-
ated by business activities aligned with the EU taxonomy,
compared with 84.7% in 2020.
Considering all retail electricity sales as “non-eligible“, 83.7
% of capital expenditure was aligned.
The percentage of the capital expenditure of taxonomy eli-
gible-aligned activities in 2021 was in line with the previous
year.
The percentage of 2021 capital expenditure for eligi-
ble-aligned activities was 1.9% lower than the value of cap-
ital expenditure planned for 2021 in the 2021-2023 Strate-
gic Plan for those activities. In absolute terms, the capital
expenditure of taxonomy eligible-aligned activities was
greater than planned, primarily attributable to the great-
er-than-planned increase in expenditure to expand Group
renewables capacity (an excess of €683 million). However,
capital expenditure in eligible-not aligned activities and
non-eligible activities was also greater (€412 million), no-
tably for electricity transmission and distribution, the sale
of energy not certified by guarantees of origin and thermal
generation.
Analysis of the Group’s financial position and structure
169
169
Performance by
Business Line
The representation of performance by Business Line pre-
sented here is based on the approach used by manage-
ment in monitoring Group performance for the two peri-
ods under review, taking account of the operational model
adopted as described above.
With regard to disclosures for operating segments, as
management reports on performance by Business Line,
the Group has therefore adopted the following reporting
sectors:
• primary segment: Business Line;
• secondary segment: geographical area.
The Business Line is therefore the main discriminant in the
analyses performed and decisions taken by the manage-
ment of the Enel Group, and is fully consistent with the
internal reporting prepared for these purposes since the
results are measured and evaluated first and foremost for
each Business Line and only thereafter are they broken
down by country.
The following chart outlines these organizational arrange-
ments.
HOLDING
Global Business Lines
Local businesses
Thermal
Generation
Trading
Enel Green
Power
Infrastructure
and Networks
Enel X
End-user
Markets
Services
Regions/
countries
Italy
Iberia
Europe
Africa,
Asia and
Oceania
North
America
Latin
America
The organization continues to be based on matrix of Busi-
ness Lines (Thermal Generation and Trading, Enel Green
Power, Infrastructure and Networks, End-user Markets,
Enel X, Services and Holding/Other) and geographical are-
as (Italy, Iberia, Europe, Latin America, North America, Afri-
ca, Asia and Oceania, Central/Holding).
170
170
Integrated Annual Report 2021
Performance by Business
Line in 2021 and 2020
Results for 2021(1)
Millions of euro
Revenue and other income
from third parties
Revenue and other income
from transactions with other
segments
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Holding
and other
Reporting
segment
total
Eliminations
and
adjustments
Total
22,883
7,244
17,164
37,396
1,513
20
1,786
88,006
-
88,006
10,272
2,282
3,492
1,312
28
1,977
148
19,511
(19,511)
-
Total revenue
33,155
9,526
20,656 38,708
1,541
1,997
1,934 107,517
(19,511)
88,006
Net results from commodity
contracts
535
(55)
-
2,044
Gross operating profit/(loss)
899
4,761
7,210
2,990
Depreciation, amortization and
impairment losses
3,485
1,679
2,862
1,333
Operating profit/(loss)
(2,586)
3,082
4,348
1,657
Capital expenditure
822
5,662(2)
5,296
643
-
283
253
30
367
-
(2)
2,522
(86)
1,510
17,567
237
38
9,887
(323)
1,472
7,680
139
68
12,997
-
-
-
-
-
2,522
17,567
9,887
7,680
12,997
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figure does not include €111 million classified as available for sale.
Results for 2020(1) (2) (3) (4)
Millions of euro
Revenue and other income
from third parties
Revenue and other income
from transactions with other
segments
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Holding
and other
Reporting
segment
total
Eliminations
and
adjustments
Total
14,332
5,852
15,919
28,793
1,097
2
9
66,004
-
66,004
7,404
1,840
3,510
715
24
1,868
145
15,506
(15,506)
-
Total revenue
21,736
7,692
19,429 29,508
1,121
1,870
154
81,510
(15,506)
66,004
Net results from commodity
contracts
(421)
68
-
264
-
(6)
(4)
(99)
Gross operating profit/(loss)
1,700
4,647
7,520
3,121
Depreciation, amortization and
impairment losses
1,685
1,913
3,171
1,304
Operating profit/(loss)
15
2,734
4,349
1,817
Capital expenditure
694
4,629
3,937
460
152
168
(16)
303
(47)
(190)
16,903
179
28
8,448
(226)
(218)
8,455
103
71
10,197
-
-
-
-
-
(99)
16,903
8,448
8,455
10,197
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figures for revenue from third parties and intersegment transactions have been calculated more accurately.
(3) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
(4) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
In addition to the above, the Group also monitors perfor-
mance by geographical area, classifying results by region/
country. In the table below, ordinary gross operating profit
is shown for the two periods under review with the goal of
providing a view of performance not only by Business Line,
but also by region/country.
It should be noted that ordinary gross operating profit ex-
cludes non-recurring items. For a reconciliation with gross
operating profit, please see the section “Group Perfor-
mance“.
Performance by Business Line
171
171
Ordinary gross operating margin(1) (2)
Millions of euro
Thermal Generation and
Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Holding and other
Total
2021
2020 Change
2021
2020 Change
2021
2020 Change
2021
2020 Change
2021
2020
Change
2021
2020
Change
2021
2020
Change
2021
2020
Change
464
488
(24)
1,184
1,362
(178)
3,836
3,861
(25)
2,311
2,372
(61)
131
(27)
7,982
8,204
(222)
844
1,258
(414)
840
436
404
1,877
2,114
(237)
547
530
Latin America
350
340
10
1,809
1,982
(173)
1,810
1,684
126
263
203
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Panama
Other countries
Europe
Romania
Russia
Other countries
North America
United States and Canada
Mexico
Africa, Asia and Oceania
South Africa
India
Other countries
Other
Total
17
60
19
29
19
(7)
-
-
-
97
132
(49)
58
85
66
64
11
114
115
12
66
24
28
(4)
3
47
(44)
12
(7)
334
271
63
1,120
964
156
136
107
(113)
536
825
(289)
144
157
(13)
47
601
575
(1)
(1)
-
141
136
127
102
46
45
385
362
23
158
154
4
-
-
-
-
44
49
22
-
-
25
56
22
-
-
26
5
25
1
15
3
12
-
(2)
-
81
(2)
83
-
(39)
(35)
(4)
-
-
-
-
2
(1)
-
-
17
18
(1)
-
-
-
-
9
118
(37)
177
162
(2)
-
120
(37)
-
82
5
90
79
(7)
90
(56)
699
769
(70)
(53)
627
695
(68)
(3)
72
-
-
-
-
(7)
110
82
3
25
(4)
74
54
53
6
(5)
(44)
(2)
56
29
(3)
30
40
-
-
96
96
-
-
-
-
-
-
-
-
-
136
(40)
(41)
83
(124)
136
(40)
(41)
83
(124)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
-
6
-
-
-
-
-
-
-
9
-
9
-
-
-
-
-
-
-
(3)
-
(3)
-
-
-
-
-
44
6
38
(1) Ordinary gross operating profit excludes non-recurring items. For a reconciliation with gross operating profit, see the section “Group Performance“.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
172
172
Integrated Annual Report 2021
38
45
84
3
2
15
42
22
-
-
9
10
(1)
-
(9)
(9)
-
2
2
-
-
52
92
5
1
19
50
17
-
-
17
11
-
6
22
22
-
-
-
-
-
93
7
8
2
(1)
4
8
(5)
-
-
8
1
1
6
31
31
-
(2)
(2)
-
-
56
31
(77)
(3)
(18)
(55)
-
(1)
-
-
7
7
-
-
-
-
-
-
-
-
-
83
30
(86)
(3)
(19)
(64)
-
-
-
-
4
4
-
-
-
-
-
-
-
(3)
(3)
66
94
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
1
-
-
-
-
-
4,191
4,413
(222)
4,247
4,207
138
153
1,705
1,391
639
1,022
(383)
1,143
1,046
451
125
46
337
153
88
96
687
613
74
110
82
3
25
449
101
45
512
310
112
90
781
699
82
56
55
6
(5)
40
(15)
314
97
2
24
1
(175)
(157)
(24)
6
(94)
(86)
(8)
54
27
(3)
30
(1)
(1)
(2)
(2)
(1)
1
9
-
1
9
-
-
-
3
3
-
-
3
3
-
-
-
-
-
(16)
298
(8)
161
(8)
137
62
79
(4)
1,568
(175)
1,743
1,656
(146)
1,802
1,702
2,230
(528)
4,815
4,721
94
7,663
7,801
(138)
3,086
3,197
(111)
(15)
1,567
(177)
1,744
19,210
18,027
1,183
Ordinary gross operating margin(1) (2)
Thermal Generation and
Millions of euro
Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Holding and other
Total
2021
2020 Change
2021
2020 Change
2021
2020 Change
2021
2020 Change
2021
2020
Change
2021
2020
Change
2021
2020
Change
2021
2020
Change
464
488
(24)
1,184
1,362
(178)
3,836
3,861
(25)
2,311
2,372
(61)
131
52
92
5
1
19
50
17
-
-
17
11
-
6
22
22
-
-
-
-
-
38
45
84
3
2
15
42
22
-
-
9
10
(1)
-
(9)
(9)
-
2
2
-
-
93
7
8
2
(1)
4
8
(5)
-
-
8
1
1
6
31
31
-
(2)
(2)
-
-
56
31
(77)
(3)
(18)
(55)
-
(1)
-
-
7
7
-
-
-
-
-
-
-
-
-
(7)
(44)
44
6
38
1,702
2,230
(528)
4,815
4,721
94
7,663
7,801
(138)
3,086
3,197
(111)
(16)
298
(8)
161
(8)
137
62
79
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Panama
Europe
Romania
Russia
Other countries
Other countries
North America
Africa, Asia and Oceania
South Africa
Other countries
India
Other
Total
844
1,258
(414)
840
436
404
1,877
2,114
(237)
547
530
Latin America
350
340
10
1,809
1,982
(173)
1,810
1,684
126
263
203
24
28
(4)
3
47
(44)
12
(7)
334
271
63
1,120
964
156
136
107
(113)
536
825
(289)
144
157
(13)
601
575
385
362
23
114
115
141
136
158
154
97
132
(49)
58
(2)
-
81
(2)
83
-
(39)
(35)
(4)
-
-
-
-
2
85
66
64
11
(1)
-
(2)
-
17
18
(1)
-
-
-
-
9
12
66
47
(1)
(1)
-
-
-
-
-
-
-
118
(37)
177
162
136
(40)
(41)
83
(124)
136
(40)
(41)
83
(124)
120
(37)
26
5
25
1
15
3
12
-
(2)
56
29
(3)
30
40
127
102
46
45
79
(7)
90
74
54
53
6
(5)
82
5
90
110
82
3
25
(4)
96
96
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
49
22
-
-
-
-
6
-
6
-
-
-
-
-
25
56
22
-
-
-
-
9
-
9
-
-
-
-
-
4
-
-
-
-
-
-
-
-
-
-
-
(56)
699
769
(70)
United States and Canada
(53)
627
695
(68)
Mexico
(3)
72
17
60
19
29
19
(7)
-
-
-
-
-
-
-
-
-
-
-
(3)
(3)
(1) Ordinary gross operating profit excludes non-recurring items. For a reconciliation with gross operating profit, see the section “Group Performance“.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
83
30
(86)
(3)
(19)
(64)
-
-
-
-
4
4
-
-
(3)
(3)
-
-
-
-
-
66
94
(27)
1
9
-
1
9
-
(1)
-
-
3
3
-
-
3
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(2)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
1
-
-
-
-
-
7,982
8,204
(222)
4,191
4,413
(222)
4,247
4,207
138
153
1,705
1,391
40
(15)
314
639
1,022
(383)
1,143
1,046
451
125
46
337
153
88
96
687
613
74
110
82
3
25
449
101
45
512
310
112
90
781
699
82
56
55
6
(5)
97
2
24
1
(175)
(157)
(24)
6
(94)
(86)
(8)
54
27
(3)
30
(4)
1,568
(175)
1,743
1,656
(146)
1,802
(15)
1,567
(177)
1,744
19,210
18,027
1,183
Performance by Business Line
173
173
Thermal
Generation
and Trading
174
174
Integrated Annual Report 2021
Thermal Generation and Trading
37 GW
NET EFFICIENT INSTALLED
CAPACITY
113.8 TWh
NET ELECTRICITY
GENERATION
-22.4% from coal-fired plants on 2020
+5.3% from coal-fired plants on 2020
2.2%
COAL
REVENUE
as % of total Group revenue
€1,702 million
ORDINARY GROSS
OPERATING PROFIT
€2,230 million in 2020
Operations
Net electricity generation
Millions of kWh
Coal-fired 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
2021
13,858
22,709
51,718
25,504
2020
13,155
19,401
43,353
25,839
Change
703
3,308
8,365
(335)
113,789
101,748
12,041
23,808
44,799
23,934
21,248
19,044
42,853
21,764
18,087
4,764
1,946
2,170
3,161
5.3%
17.1%
19.3%
-1.3%
11.8%
25.0%
4.5%
10.0%
17.5%
The increase in thermal generation is essentially attributa-
ble to an increase in generation both from combined-cycle
plants (8,365 million kWh) and from fuel-oil and turbo-gas
plants (3,308 million kWh). The increase for combined-cy-
cle plants is attributable mainly to Italy (3,158 million kWh),
Iberia (3,078 million kWh), and Latin America (1,905 mil-
lion kWh), whereas the increase for fuel-oil and turbo-gas
plants was seen mainly in Russia (2,938 million kWh).
Net efficient generation capacity
MW
Coal-fired 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
Compared with 2020, the 1,959 MW decrease in net effi-
cient generation capacity was primarily due to the decom-
missioning of coal-fired plants in Spain and Italy.
2021
6,910
11,715
15,039
3,328
36,992
11,569
12,751
7,396
5,276
2020
8,903
11,711
15,009
3,328
38,951
12,414
13,871
7,406
5,260
Change
(1,993)
-22.4%
4
30
-
(1,959)
(845)
(1,120)
(10)
16
-
0.2%
-
-5.0%
-6.8%
-8.1%
-0.1%
0.3%
Performance by Business Line
175175
Performance
Millions of euro
Revenue(1)
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2021
33,155
899
1,702
(2,586)
729
822
2020
21,736
1,700
2,230
15
1,456
694
Change
11,419
(801)
(528)
(2,601)
(727)
128
52.5%
-47.1%
-23.7%
-
-49.9%
18.4%
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
With regard to revenue, it should be noted that, in response
to strategic decisions inspired by a sustainable business
model under which we pursue the goals, inter alia, of com-
bating climate change, the percentage of coal-related
revenue experienced a progressive, generalized decline as
shown in the following table:
Revenue from thermal and nuclear generation
Millions of euro
Revenue(1) (2)
Revenue from thermal generation
- of which coal-fired generation
Revenue from nuclear generation
Revenue from thermal generation as a percentage of total revenue
- of which: revenue from coal-fired generation as a percentage of total revenue
Revenue from nuclear generation as a percentage of total revenue
2021
2020
13,501
1,904
1,403
15.3%
2.2%
1.6%
7,517
1,639
1,360
11.4%
2.5%
2.1%
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
176
176
Integrated Annual Report 2021
The following tables show a breakdown of performance by
region/country in 2021.
Revenue(1)
Millions of euro
Italy(1)
Iberia(1)
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
Other
2021
22,816
8,344
2,390
165
957
899
186
183
100
554
4
550
122
2020
14,965
5,125
1,304
148
182
627
183
164
12
539
-
539
130
Change
7,851
3,219
1,086
17
775
272
3
19
88
15
4
11
(8)
Eliminations and adjustments
Total
(1,171)
33,155
(339)
21,736
(832)
11,419
52.5%
62.8%
83.3%
11.5%
-
43.4%
1.6%
11.6%
-
2.8%
-
2.0%
-6.2%
-
52.5%
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to the consolidated financial statements.
Revenue for 2021 amounted to €33,155 million, an in-
crease of €11,419 million over 2020. This change is mainly
attributable to:
• Italy, primarily due to an increase in sales of electricity
and gas, reflecting the increase in commodity prices,
gas in particular, and an increase in thermal generation;
• Spain, reflecting an increase in revenue from the sale of
electricity, largely connected with an increase in aver-
age prices and the recognition of an indemnity associ-
ated with CO2 emission allowances allocated under the
“Plan Nacional de Asignación de Derechos de Emisión“
(PNA) in the amount of €186 million.
Ordinary gross operating profit/(loss)
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
North America
Europe
- of which Romania
- of which Russia
Other
Total
2021
464
844
350
97
132
(49)
58
114
(2)
(39)
81
(2)
83
2
2020
488
1,258
340
85
66
64
11
115
(1)
17
118
(2)
120
9
Change
(24)
(414)
10
12
66
(113)
47
(1)
(1)
(56)
(37)
-
(37)
(7)
1,702
2,230
(528)
-4.9%
-32.9%
2.9%
14.1%
-
-
-
-0.9%
-
-
-31.4%
-
-30.8%
-77.8%
-23.7%
Performance by Business Line
177
177
The €528 million decrease in ordinary gross operating
profit in 2021 is due mainly to:
• a reduction of €414 million in Iberia, essentially attrib-
utable to:
– greater costs related to the purchase of energy
commodities and greater costs for the derivatives
on those commodities, due mainly to fluctuations in
market prices;
– greater personnel expenses due mainly to the re-
lease, in 2020, of the provision for the energy dis-
count net of allocations for early-retirement incen-
tives.
These negative factors were only partly offset by the in-
crease in revenue from the sale of electricity connect-
ed, above all, to the increase in average prices and by
the recognition of the indemnity connected with CO2
emission allowances allocated under the “Plan Nacional
de Asignación de Derechos de Emisión“ (PNA) of €186
million;
• a €56 million decrease in profit in North America due
essentially to the weaker net performance on commod-
ity contracts;
• a €37 million decrease in profit in Russia mainly attrib-
utable to the abolition of the capacity payment for the
gas-fired plants;
• a €113 million decrease in Chile due mainly to the rec-
ognition of greater costs for commodity purchases,
particularly for gas, as a result of increases in both price
and volumes and in relation to the greater quantities
generated by combined-cycled plants. This effect was
only partially offset by an increase in revenue from the
sale of electricity and improved net performance on
commodity contracts.
These effects were partially offset by a €66 million im-
provement in profit in Brazil related mainly to the increase
in sales revenue due to increases in volumes and in aver-
age prices.
Gross operating profit in the amount of €899 million
(€1,700 million in 2020) reflects costs of €795 million relat-
ed to the direct and indirect activities called for by person-
nel conversion plans associated with the energy transition
and digitalization, mainly in Italy, and €8 million in costs in-
curred as a result of the COVID-19 pandemic for workplace
sanitization activities, personal protective equipment and
donations.
2021
2020
Change
265
271
180
27
120
(91)
41
86
(3)
(39)
52
(2)
54
-
386
787
179
32
56
17
(6)
80
-
14
82
(2)
84
8
(121)
(516)
1
(5)
64
(108)
47
6
(3)
(53)
(30)
-
(30)
(8)
-31.3%
-65.6%
0.6%
-15.6%
-
-
-
7.5%
-
-
-36.6%
-
-35.7%
-
729
1,456
(727)
-49.9%
Ordinary operating profit/(loss)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
- of which Romania
- of which Russia
Other
Total
178
178
Integrated Annual Report 2021
The decrease in ordinary operating profit is tied both to
the factors described above in relation to ordinary gross
operating profit and to the increase in depreciation, amor-
tization and impairment losses (totaling €199 million)
recognized in 2021 as compared with the previous year,
largely reflecting an increase in costs for retiring thermal
generation plants, in particular coal-fired facilities.
The operating loss of €2,586 million for 2021 (€15 million in
2020) reflects both the factors described in relation to or-
dinary operating performance and the write-down of cer-
tain plants in Spain in the amount of €1,488 million, charg-
es related to restructuring plans for the energy transition
and digitalization, mainly in Italy, in the amount of €1,819
million, and non-recurring costs incurred in response to
the COVID-19 pandemic for workplace sanitization activ-
ities, personal protective equipment and donations in the
amount of €8 million.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Total
2021
2020
Change
303
334
143
8
34
822
180
331
120
7
56
694
123
3
23
1
(22)
128
68.3%
0.9%
19.2%
14.3%
-39.3%
18.4%
The €128 million increase in capital expenditure is mainly
attributable to Italy. Capital expenditure in Italy in 2021 es-
sentially concerned the reconversion of a number of plants
as part of energy-transition projects, efforts to improve
service quality and digitalization projects.
Performance by Business Line
179
179
Enel
Green Power
180
180
Integrated Annual Report 2021
Enel Green Power
50.1 GW
NET EFFICIENT INSTALLED
CAPACITY
108.8 TWh
NET ELECTRICITY
GENERATION
57.5% of total Group capacity
+37.1% from solar plants on 2020
€4,815 million
ORDINARY GROSS
OPERATING PROFIT
€4,721 million in 2020
€5,662 million(1)
CAPITAL
EXPENDITURE
+22.3% on 2020
(1) Does not include €111 million regarding units classified as “held for sale“.
Operations
Net electricity generation
Millions of kWh
Hydroelectric
Geothermal(1)
Wind
Solar
Other sources(1)
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
2021
57,001
6,086
37,791
7,899
40
2020
62,437
6,128
30,992
5,763
40
108,817
105,360
24,157
12,794
46,441
2,488
20,356
2,581
23,451
13,415
47,400
2,374
17,182
1,538
Change
(5,436)
(42)
6,799
2,136
-
3,457
706
(621)
(959)
114
3,174
1,043
-8.7%
-0.7%
21.9%
37.1%
-
3.3%
3.0%
-4.6%
-2.0%
4.8%
18.5%
67.8%
(1) The 2020 figures reflect a more accurate calculation of electricity generated.
Net electricity generation in 2021 increased by 3.3% from
2020 due to increases in wind and solar production, which
were partially offset by decreases in hydroelectric and geo-
thermal generation.
The most significant changes in wind generation were seen
in Brazil (+3,138 million kWh), the United States (+1,916 mil-
lion kWh), South Africa (+550 million kWh), Mexico (+497
million kWh), Iberia (+370 million kWh), Russia (+149 million
kWh), and Canada (+104 million kWh).
The 37.1% increase in solar generation is attributable mainly
to Iberia (+569 million kWh), the United States (+580 million
kWh), Australia (+477 million kWh), and Brazil (+402 million
kWh).
Hydroelectric generation decreased overall due to less fa-
vorable water conditions in Latin America (-4,597 million
kWh) and Iberia (-1,560 million kWh), which was to minimal
extent offset by increased generation in Italy (+691 million
kWh).
Performance by Business Line
181181
Net efficient generation 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
2021
27,847
915
14,903
6,395
6
50,066
14,040
8,390
16,506
1,248
7,941
1,941
2020
27,820
882
12,412
3,897
5
45,016
13,986
7,781
14,554
1,141
6,643
911
Change
27
33
2,491
2,498
1
5,050
54
609
1,952
107
1,298
1,030
0.1%
3.7%
20.1%
64.1%
20.0%
11.2%
0.4%
7.8%
13.4%
9.4%
19.5%
-
The increase in net efficient capacity is mainly due to the
start of operations of solar plants in the United States, Chile
and Brazil and of wind farms in Brazil, the United States,
and South Africa, as well as to the effect of the full con-
solidation of a number of companies in Australia, which
were measured using the equity method until December
31, 2020.
182
182
Integrated Annual Report 2021
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
(1) The figure does not include €111 million regarding units classified as “held for sale“.
The following tables show a breakdown of performance by
region/country in 2021.
Revenue
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
2021
9,526
4,761
4,815
3,082
3,480
5,662(1)
2021
2,725
900
4,235
37
1,551
1,375
884
141
153
94
1,147
971
176
358
220
13
125
-
-
175
264
(278)
9,526
2020
7,692
4,647
4,721
2,734
3,460
4,629
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
Change
1,834
114
94
348
20
1,033
23.8%
2.5%
2.0%
12.7%
0.6%
22.3%
Change
571
129
1,001
(2)
714
166
70
9
17
27
(9)
(47)
38
35
22
13
11
(9)
(2)
76
38
(7)
1,834
26.5%
16.7%
31.0%
-5.1%
85.3%
13.7%
8.6%
6.8%
12.5%
40.3%
-0.8%
-4.6%
27.5%
10.8%
11.1%
-
9.6%
-
-
76.8%
16.8%
-2.6%
23.8%
The increase in revenue over 2020 is mainly attributable to:
• an increase in the sale of electricity in Brazil due to
greater imports by Argentina and Uruguay and for the
start-up of new plants;
• an increase in revenue in Italy and Spain tied to greater
average energy prices;
• the line-by-line consolidation of a number of Australian
companies that had been measured at equity until De-
cember 31, 2020.
Performance by Business Line
183
183
Ordinary gross operating profit/(loss)
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
2021
1,184
840
1,809
24
334
536
601
141
127
46
699
627
72
177
82
5
95
-
(5)
110
(4)
4,815
2020
1,362
436
1,982
28
271
825
575
136
102
45
769
695
74
162
79
(7)
85
7
(2)
54
(44)
4,721
Change
(178)
404
(173)
(4)
63
(289)
26
5
25
1
(70)
(68)
(2)
15
3
12
10
(7)
(3)
56
40
94
-13.1%
92.7%
-8.7%
-14.3%
23.2%
-35.0%
4.5%
3.7%
24.5%
2.2%
-9.1%
-9.8%
-2.7%
9.3%
3.8%
-
11.8%
-
-
-
90.9%
2.0%
The improvement in ordinary gross operating profit is
mainly attributable to:
• an increase in gross operating profit in Spain due in
particular to the reversal of provisions for hydroelectric
fees following the favorable outcome of a dispute, to
greater quantities produced and sold by wind and solar
plants, and to higher average energy prices;
• an increase in profit in Africa, Asia and Oceania due
mainly to the line-by-line consolidation of a number of
Australian companies that were measured using the
equity method at December 31, 2020, as well as an in-
crease in generation at new wind farms in South Africa;
• a decrease in profit in Italy due mainly to a decrease in
volumes on the spot markets, the lower performance
of hydroelectric plants, and an increase in charges for
commodity derivatives;
• a decrease in profit in Latin America, particularly as a
result of adverse exchange rate developments and
decreased profit in Chile due mainly to a decline in hy-
droelectric generation as a result of unfavorable water
conditions in the country, which led to higher costs for
the provisioning of commodities to supply the greater
volumes sold under power purchase agreements (PPAs);
this impact was partially offset by an increase in profit in
Brazil due to the greater quantities of power generated
and sold, the start-up of new plants, and the effect of
prices on new PPAs, as well as by a greater energy mar-
gin in Colombia as a result of price effects;
• a reduction in profit in North America, mainly in the Unit-
ed States and Canada, due to a worsening of the en-
ergy margin and to the recognition in 2020 of greater
gains from indemnities and disputes (€31 million) and
the sale of the Haystack wind project by Tradewind (€45
million). These effects were partially offset by greater tax
partnership gains (€42 million) recognized following the
start-up of new plants by Enel North America, including
Azure Blue Jay, Lily Solar, and Rochaven Ranchland.
Gross operating profit amounted to €4,761 million (€4,647
million in 2020), reflecting provisions for charges in respect
of the energy transition and digitalization (€47 million) and
costs incurred in responding to the COVID-19 pandemic
for workplace sanitization activities, personal protective
equipment and donations (€7 million).
184
184
Integrated Annual Report 2021
Ordinary operating profit/(loss)
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
2021
902
609
1,448
18
253
378
553
107
112
27
382
334
48
114
61
(1)
61
-
(7)
46
(21)
3,480
2020
1,072
237
1,605
22
208
660
523
99
83
10
487
444
43
93
58
(13)
47
4
(3)
21
(55)
3,460
Change
(170)
372
(157)
(4)
45
(282)
30
8
29
17
(105)
(110)
5
21
3
12
14
(4)
(4)
25
34
20
-15.9%
-
-9.8%
-18.2%
21.6%
-42.7%
5.7%
8.1%
34.9%
-
-21.6%
-24.8%
11.6%
22.6%
5.2%
92.3%
29.8%
-
-
-
61.8%
0.6%
Ordinary operating profit in 2021 increased by €20 mil-
lion over 2020 and included €1,335 million in deprecia-
tion, amortization and impairment losses (€1,261 million
in 2020). Depreciation in particular increased, by €59 mil-
lion compared with 2020, reflecting new capital expendi-
ture in recent years.
Operating profit for 2021, in the amount of €3,082 mil-
lion (€2,734 million in 2020), reflects the factors described
above in relation to gross operating profit and ordinary op-
erating profit, as well as the write-down of certain plants
in Mexico and Australia in the amount of €185 million and
other write-downs for a total of €159 million, mainly relat-
ed to assets associated with the PH Chucas plant in Costa
Rica, which is operated under a concession arrangement.
Performance by Business Line
185
185
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2021
406
713
1,864
2,238
204
207
30
2020
283
460
1,514
1,773
157
414
28
5,662(1)
4,629
Change
123
253
350
465
47
(207)
2
1,033
43.5%
55.0%
23.1%
26.2%
29.9%
-50.0%
7.1%
22.3%
(1) The figure does not include €111 million regarding units classified as “held for sale“.
Capital expenditure increased by €1,033 million in 2021
compared with the same figure for the previous year. In
particular, the change was attributable to:
• an increase of €465 million in North America, mainly
reflecting a rise in capital expenditure on solar plants
(€378 million) and wind farms (€78 million) in the United
States;
• an increase of €350 million in capital expenditure in
Latin America attributable mainly to wind farms (€361
million) and hydroelectric plants (€39 million), which was
partially offset by a decrease in capital expenditure on
photovoltaic (€67 million) and geothermal plants (€19
million). The increase in capital expenditure was mainly
concentrated in Colombia, Chile and Brazil;
• an increase of €253 million in capital expenditure in Ibe-
ria attributable mainly to solar plants (€146 million), wind
farms (€98 million), and hydroelectric plants (€8 million);
• a €123 million increase in capital expenditure in Ita-
ly attributable mainly to wind farms (€93 million), solar
plants (€19 million), and hydroelectric plants (€23 mil-
lion), which was to a minimal extent offset by a decrease
at geothermal plants (€7 million);
• a €47 million increase in capital expenditure in Europe,
particularly at wind farms in Russia (€67 million). This ef-
fect was partially offset by decreased capital expendi-
ture in Greece in the amount of €23 million;
• a decrease of €207 million in capital expenditure in Afri-
ca, Asia and Oceania related mainly to wind farms (€292
million) concentrated in South Africa (€111 million was
reclassified as held for sale), which was partially offset
by increased capital expenditure for wind farms in India
(€47 million) and for photovoltaic plants (€85 million),
mainly in India and Australia.
186
186
Integrated Annual Report 2021
Performance by Business Line
187
187
Infrastructure
and Networks
188
188
Integrated Annual Report 2021
Infrastructure and Networks
510.3 TWh
ELECTRICITY TRANSPORTED ON
ENEL´S DISTRIBUTION GRID
485.2 TWh in 2020
€7,663 million
ORDINARY GROSS
OPERATING PROFIT
€7,801 million in 2020
€5,296 million
CAPITAL EXPENDITURE
40.7% of total Group capital
expenditure
Operations
Electricity distribution and transmission grids
Millions of kWh
Electricity transported on Enel’s distribution grid(1)
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
2021
510,257
226,715
131,090
136,407
16,045
2020
485,229
214,401
124,486
130,968
15,374
Change
25,028
12,314
6,604
5,439
671
End users with active smart meters (no.)(1)
44,968,974
44,293,483
675,491
(1) The figures for 2020 have been calculated more accurately.
5.2%
5.7%
5.3%
4.2%
4.4%
1.5%
In 2021, electricity transported on the grid increased (by
5.2%) mainly due to developments in:
• Italy (+5.7%), with an increase in the demand for electric-
ity distributed to low-, medium-, high- and very-high-
voltage customers, while electricity distributed to other
distributors decreased slightly;
• Iberia (+5.3%), where the increase was essentially due to
the rise in electricity transported by Edistribución Redes
Digitales SL, reflecting the effect of the lockdown im-
posed in 2020 in response to the COVID-19 pandemic;
• Latin America (+4.2%), reflecting the increase in volumes
transported, mainly in Peru, Colombia and Argentina;
• Europe (+4.4%), with an increase in electricity distributed
in Romania, attributable to both business and residential
customers.
Performance by Business Line
189189
Average frequency of interruptions per customer
SAIFI (average no.)
Italy
Iberia
Argentina(1)
Brazil
Chile
Colombia
Peru
Romania
(1) The figures for 2020 reflect a more accurate calculation of average frequency.
Average duration of interruptions per customer
SAIDI (average minutes)
Italy(1)
Iberia(1)
Argentina(1)
Brazil
Chile
Colombia
Peru(1)
Romania
2021
2020
Change
1.8
1.4
4.9
4.8
1.5
5.2
2.3
2.9
1.7
1.4
4.4
5.4
1.5
5.6
2.6
3.4
0.1
-
0.5
(0.6)
-
(0.4)
(0.3)
(0.5)
2021
2020
Change
42.9
70.0
797.3
607.9
152.3
401.4
413.9
109.7
42.1
77.5
839.4
678.8
171.2
466.6
418.6
134.5
0.8
(7.5)
(42.1)
(70.9)
(18.9)
(65.2)
(4.7)
(24.8)
5.9%
-
11.4%
-11.1%
-
-7.1%
-11.5%
-14.7%
1.9%
-9.7%
-5.0%
-10.4%
-11.0%
-14.0%
-1.1%
-18.4%
(1) The figures for 2020 reflect a more accurate calculation of average duration.
As shown in the tables above, service quality has improved
in nearly all geographical areas, although the SAIDI in Ar-
gentina remains high due, in particular, to failures in the
high-voltage systems not managed by the Group.
Grid losses
Grid losses (average %)
Italy
Iberia(1)
Argentina
Brazil
Chile
Colombia
Peru
Romania
(1) The figures for 2020 reflect a more accurate calculation of grid losses.
2021
2020
Change
4.7
7.1
18.0
13.1
5.2
7.5
8.5
8.7
4.9
7.3
18.9
13.4
5.2
7.6
8.8
9.2
(0.2)
(0.2)
(0.9)
(0.3)
-
(0.1)
(0.3)
(0.5)
-4.1%
-2.7%
-4.8%
-2.2%
-
-1.3%
-3.4%
-5.4%
190
190
Integrated Annual Report 2021
Performance
Millions of euro
Revenue(1)
Gross operating profit/(loss)(1)
Ordinary gross operating profit/(loss)(1)
Operating profit/(loss)(1)
Ordinary operating profit/(loss)(1)
Capital expenditure
2021
20,656
7,210
7,663
4,348
4,813
5,296
2020
19,429
7,520
7,801
4,349
4,846
3,937
Change
1,227
(310)
(138)
(1)
(33)
1,359
6.3%
-4.1%
-1.8%
-
-0.7%
34.5%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
The following tables show a breakdown of performance by
region/country in 2021.
Revenue
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil(1)
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Eliminations and adjustments
Total(1)
2021
7,326
2,489
10,366
688
7,109
1,262
630
677
414
590
(529)
20,656
2020
7,488
2,617
8,908
647
5,736
1,229
601
695
396
393
(373)
19,429
Change
(162)
(128)
1,458
41
1,373
33
29
(18)
18
197
(156)
1,227
-2.2%
-4.9%
16.4%
6.3%
23.9%
2.7%
4.8%
-2.6%
4.5%
50.1%
-41.8%
6.3%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
The increase in revenue is mainly attributable to Brazil, re-
flecting an increase in electricity distributed and rate ad-
justments.
This increase was partially mitigated by lower revenue in:
• Italy, due essentially to the recognition in 2020 of the
gain related to application of the Regulatory Authority
for Energy, Networks and the Environment (ARERA) Res-
olutions nos. 50/2018 and 461/2020;
• Iberia, due mainly to the lower financial remuneration
rate applied as of January 1, 2020, on power transmis-
sion.
Performance by Business Line
191
191
Ordinary gross operating profit/(loss)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil(1)
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total (1)
2021
3,836
1,877
1,810
3
1,120
144
385
158
96
44
2020
3,861
2,114
1,684
47
964
157
362
154
136
6
Change
(25)
(237)
126
(44)
156
(13)
23
4
(40)
38
7,663
7,801
(138)
-0.6%
-11.2%
7.5%
-93.6%
16.2%
-8.3%
6.4%
2.6%
-29.4%
-
-1.8%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
Ordinary gross operating profit decreased especially in
Spain due to the reversal of the provision related to the
energy discount recognized in 2020 (€269 million). This
effect was partially offset by an increase in profit in Brazil
as a result of an increase in wheeling volumes at rising
average prices, reflecting rate adjustments for the year.
Gross operating profit of €7,210 million (€7,520 million in
2020) reflects the factors impacting ordinary gross oper-
ating profit and the following non-recurring items:
Ordinary operating profit/(loss)
Millions of euro
• provisions recognized for costs connected with re-
structuring plans for the energy transition and digitali-
zation, mainly in Italy and Brazil (€389 million), and costs
associated with the removal of certain meters involved
in the replacement campaign (€34 million);
• costs incurred for workplace sanitization activities, per-
sonal protective equipment and donations in response
to the COVID-19 pandemic (€30 million).
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil(1)
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total (1)
2021
2,500
1,094
1,175
(25)
708
95
297
100
6
38
2020
2,407
1,364
1,018
31
527
110
261
89
54
3
4,813
4,846
Change
93
(270)
157
(56)
181
(15)
36
11
(48)
35
(33)
3.9%
-19.8%
15.4%
-
34.3%
-13.6%
13.8%
12.4%
-88.9%
-
-0.7%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more informa-
tion, please see note 7 to the consolidated financial statements.
192
192
Integrated Annual Report 2021
The decrease in ordinary operating profit for 2021, includ-
ing depreciation, amortization and impairment losses of
€2,850 million (€2,955 million in 2020), is attributable to
the factors described above in relation to ordinary gross
operating profit. This effect was partially mitigated by an
increase in Italy due mainly to a decline in impairment loss-
es on trade receivables compared with the previous year
(€225 million), partly offset by an increase of €57 million in
depreciation as a result of the reduction of the useful life
of first-generation digital meters.
Operating profit for 2021, in the amount of €4,348 mil-
lion (€4,349 million in 2020), reflects the factors described
above in relation to ordinary operating profit.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
Europe
Other
Total
2021
2,554
874
1,663
192
13
2020
1,966
631
1,156
182
2
Change
588
243
507
10
11
5,296
3,937
1,359
29.9%
38.5%
43.9%
5.5%
-
34.5%
Capital expenditure increased year on year by €1,359
million.
More specifically, this increase is attributable to:
• Italy, for an increase in new customer connections and
an increase in investment in service quality (e-grid and
DSO 4.0 projects). In addition, capital expenditure on the
latest generation digital meters also increased by €46
million compared with 2020 following the resumption of
the mass-replacement program, which had slowed last
year as a result of the COVID-19 emergency;
• Spain, for increased capital expenditure on distribution
lines and on substations, transformers, and metering
equipment;
• Latin America, and particularly Brazil, due to increased
spending on distribution lines and substations, mainte-
nance, and an increase in new connection.
Performance by Business Line
193
193
End-user
Markets
194
194
Integrated Annual Report 2021
End-user Markets
309.4 TWh
ELECTRICITY
SOLD
€3,086 million
GROSS OPERATING
PROFIT
298.2 TWh in 2020
€3,197 million in 2020
69.3 million
RETAIL
CUSTOMERS
of which 24.8 million
on the free market
Operations
Electricity sales
Millions of kWh
Free market
Regulated market
Total
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe
2021
175,958
133,467
2020
160,202
137,984
309,425
298,186
92,768
79,457
127,906
9,294
90,205
80,772
118,388
8,821
Change
15,756
(4,517)
11,239
2,563
(1,315)
9,518
473
9.8%
-3.3%
3.8%
2.8%
-1.6%
8.0%
5.4%
The increase in the volume of electricity sold in 2021 came
primarily on the free market for business-to-business (B2B)
customers, mainly in Italy and Latin America. Conversely, the
regulated market saw a decrease in volumes in both the busi-
ness-to-consumer (B2C) and B2B segments due mainly to a
decline in the number of customers compared with 2020.
Natural gas sales
Millions of m3
Business to consumer
Business to business
Total (1)
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe(1)
2021
3,731
6,142
9,873
4,353
5,180
160
180
2020
3,637
6,071
9,708
4,429
5,022
155
102
Change
94
71
165
(76)
158
5
78
2.6%
1.2%
1.7%
-1.7%
3.1%
3.2%
76.5%
(1) The figures for 2020 reflect a more accurate calculation of volumes sold.
The increase in volumes sold in Spain and Romania in 2021
was partly offset by the reduction in consumption in Italy in
the B2B segment.
The Group’s retail customers total 69,342,818, of which
24,839,600 in the free market, while at December 31, 2020
they numbered 69,517,932, of which 22,931,809 in the free
market.
Performance by Business Line
195195
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
The following tables show a breakdown of performance by
region/country in 2021.
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
Other
Total
2021
38,708
2,990
3,086
1,657
1,753
643
2021
19,818
16,177
1,393
2
349
93
760
189
7
1,309
4
2020
29,508
3,121
3,197
1,817
1,906
460
2020
14,869
11,987
1,492
-
299
271
705
217
10
1,150
-
Change
Change
9,200
(131)
(111)
(160)
(153)
183
4,949
4,190
(99)
2
50
(178)
55
(28)
(3)
159
4
38,708
29,508
9,200
31.2%
-4.2%
-3.5%
-8.8%
-8.0%
39.8%
33.3%
35.0%
-6.6%
-
16.7%
-65.7%
7.8%
-12.9%
-30.0%
13.8%
-
31.2%
Revenue for 2021 increased by 31.2% over the previous
year, due mainly to greater revenue from electricity sales
(up €6,637 million) and gas sales (up €2,459 million) as a
result of greater volumes and sales prices in Italy and Spain.
Ordinary gross operating profit/(loss)
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
196
196
Integrated Annual Report 2021
2021
2,311
547
263
12
136
44
49
22
6
(41)
2020
2,372
530
203
(7)
107
25
56
22
9
83
3,086
3,197
Change
(61)
17
60
19
29
19
(7)
-
(3)
(124)
(111)
-2.6%
3.2%
29.6%
-
27.1%
76.0%
-12.5%
-
-33.3%
-
-3.5%
These adverse effects were only partially offset by a €60
million increase in profit in Latin America, particularly in
Brazil due to adjustments to rates and to greater quanti-
ties sold.
Gross operating profit came to €2,990 million (€3,121
million in 2020). In addition to the factors discussed for
ordinary gross operating profit, the figure also reflects
non-recurring items connected with provisions for charg-
es in respect of restructuring plans for the energy tran-
sition and digitalization (€94 million) and non-recurring
costs incurred in responding to the COVID-19 pandemic
for workplace sanitization activities, personal protective
equipment and donations (€2 million).
The decrease in ordinary gross operating profit for 2021 is
essentially attributable to:
• a €124 million decrease in profit in Romania, which
mainly reflects an increase in costs to purchase energy
(€257 million), which was only partially offset by greater
sales revenue (€120 million);
• a €61 million decrease in profit in Italy, where the €120
million decline in profit on the regulated market due,
mainly, to the reduction in revenue from marketing
services was partly offset by a €59 million increase in
profit on the free market due mainly to an increase in
sales volumes thanks in part to an increased number
of customers. The decline in profit also reflected low-
er operating expenses in 2020 following the reversal of
a provision connected with a dispute with a trader and
the recognition of a fine of €27 million imposed by the
Privacy Authority in 2021.
Ordinary operating profit/(loss)
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
2021
1,508
345
(41)
4
(113)
20
31
17
5
(64)
1,753
2020
1,548
304
(6)
(44)
(26)
11
41
12
9
51
1,906
Change
(40)
41
(35)
48
(87)
9
(10)
5
(4)
(115)
(153)
-2.6%
13.5%
-
-
-
81.8%
-24.4%
41.7%
-44.4%
-
-8.0%
Ordinary operating profit reflects the factors noted earlier
for ordinary gross operating profit, as well as an increase
in depreciation and amortization of €42 million, mainly re-
garding amortization of intangibles in Italy and Spain.
Operating profit for 2021, in the amount of €1,657 mil-
lion (€1,817 million in 2020), reflects the factors described
above in relation to gross operating profit and the increase
in depreciation, amortization and impairment losses in Italy
and Spain.
Capital expenditure
Millions of euro
Italy
Iberia
Europe
Total
The increase in capital expenditure is mainly attributable
to the greater capitalization of costs connected with the
acquisition of new contracts with customers.
2021
427
196
20
643
2020
310
139
11
460
Change
117
57
9
183
37.7%
41.0%
81.8%
39.8%
Performance by Business Line
197
197
Enel X
198
198
Integrated Annual Report 2021
Enel X
Risultati del Gruppo
157,209 no.
CHARGING POINTS
2,821 thousand
LIGHTING POINTS
7.7 GW
DEMAND RESPONSE
105,079 in 2020
2,794 in 2020
6.0 GW in 2020
€298 million
ORDINARY GROSS
OPERATING PROFIT
€161 million in 2020
+21.1%.
CAPITAL EXPENDITURE
compared with 2020
for a total of €367 million
Operations
Demand response capacity (MW)
Lighting points (thousands)
Storage (MW)
Charging points (no.)(1)
(1) The figures for 2020 reflect more accurate calculations.
2021
7,713
2,821
375
2020
6,038
2,794
123
Change
1,675
27
252
157,209
105,079
52,130
27.7%
1.0%
-
49.6%
Private-sector charging points increased by 48,430, mainly in North America and Italy, while public charging points increased
by 3,700, primarily in Italy and Spain.
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2021
1,541
283
298
30
44
367
2020
1,121
152
161
(16)
(7)
303
Change
420
131
137
46
51
64
37.5%
86.2%
85.1%
-
-
21.1%
Performance by Business Line
199199
The following tables show a breakdown of performance by
region/country in 2021.
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
2021
536
271
275
12
23
66
127
47
274
88
67
164
(134)
1,541
2020
324
244
218
7
20
68
75
48
192
53
55
156
(121)
1,121
Change
212
27
57
5
3
(2)
52
(1)
82
35
12
8
(13)
420
65.4%
11.1%
26.1%
71.4%
15.0%
-2.9%
69.3%
-2.1%
42.7%
66.0%
21.8%
5.1%
-10.7%
37.5%
Revenue for 2021 increased by 37.5% year on year, with the
greatest gains seen in:
• Italy, due to increases in commercial efforts in seismic
and energy upgrading in the e-Home and Vivi Meglio
businesses;
• Colombia, for activities related to the e-Bus project;
• North America, for growth in demand response capacity.
Ordinary gross operating profit/(loss)
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
2021
2020
Change
131
52
92
5
1
19
50
17
22
17
-
(16)
298
38
45
84
3
2
15
42
22
(9)
9
2
(8)
161
93
7
8
2
(1)
4
8
(5)
31
8
(2)
(8)
-
15.6%
9.5%
66.7%
-50.0%
26.7%
19.0%
-22.7%
-
88.9%
-
-
137
85.1%
Ordinary gross operating profit increased mainly in Italy
and North America, due to increased profit on services as-
sociated, respectively, with new commercial initiatives and
to demand response activities.
Gross operating profit came to €283 million (€152 million
in 2020). The difference of €15 million in 2021 compared
with ordinary gross operating profit concerns the provi-
sions recognized for restructuring plans for the energy
transition and digitalization.
200
200
Integrated Annual Report 2021
Ordinary operating profit/(loss)
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
2021
17
4
72
5
1
17
39
10
(22)
13
(3)
(37)
44
2020
(11)
(1)
72
3
(2)
14
41
16
(52)
3
(1)
(17)
(7)
Change
28
5
-
2
3
3
(2)
(6)
30
10
(2)
(20)
51
-
-
-
66.7%
-
21.4%
-4.9%
-37.5%
57.7%
-
-
-
-
Ordinary operating profit includes depreciation, amortiza-
tion and impairment losses in the amount of €254 million
(€168 million in 2020). The increase in depreciation, amor-
tization and impairment losses is essentially attributable to
increased amortization of intangibles recognized by Enel
X Italia.
Operating profit for 2021, in the amount of €30 million (a
loss of €16 million in 2020), reflects the factors described
above in relation to gross operating profit, the positive val-
ue adjustment of the Cremzow storage plant (€1 million)
and the increase in amortization recognized by Enel X Italia.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2021
2020
Change
99
54
48
46
4
10
106
367
70
50
67
36
5
3
72
303
29
4
(19)
10
(1)
7
34
64
41.4%
8.0%
-28.4%
27.8%
-20.0%
-
47.2%
21.1%
Capital expenditure increased mainly in Italy within the Vivi
Meglio business due to the increase in volumes handled,
in North American as a result of an increase in storage ac-
tivities, and in Iberia in the e-Home business following an
increase in volumes sold compared with 2020.
Enel X Srl also posted a significant increase in capital ex-
penditure to develop global technology platforms for digi-
tal business management.
The reduction in capital expenditure in Latin America is
due mainly to the execution, in 2020, of projects related to
the e-Bus business in Colombia. This decrease was partial-
ly offset by greater capital expenditure for smart lighting
projects in Peru and distributed energy projects in Brazil.
Performance by Business Line
201
201
Services, Holding
and Other
202
202
Integrated Annual Report 2021
Performance
Millions of euro
Revenue(1)
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2021
3,931
1,424
1,646
1,149
1,416
207
2020
2,024
(237)
(83)
(444)
(290)
174
Change
94.2%
-
-
-
-
19.0%
1,907
1,661
1,729
1,593
1,706
33
(1) For the sake of clarity, the Holding segment includes internal eliminations that were previously reported under intersegment eliminations and adjustments
in the amount of €115 million in 2020.
The tables below show a breakdown of performance by re-
gion/country in 2021.
Revenue
Millions of euro
Italy
Iberia
Latin America
Europe
Other(1)
Eliminations and adjustments
Total
2021
760
465
17
24
2,895
(230)
3,931
2020
749
480
13
24
988
(230)
2,024
Change
11
(15)
4
-
1,907
-
1,907
1.5%
-3.1%
30.8%
-
-
-
94.2%
(1) For the sake of clarity, the Holding segment includes internal eliminations that were previously reported under intersegment eliminations and adjustments
in the amount of €115 million in 2020.
The increase in 2021 revenue is mainly attributable to the
gain related to the sale of Open Fiber as part of the Stew-
ardship business model in the amount of €1,763 million
and to the increase in services provided to the other Busi-
ness Lines.
Performance by Business Line
203203
Ordinary gross operating profit/(loss)
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
2021
2020
Change
56
31
(77)
(1)
7
1,630
1,646
83
30
(86)
(5)
4
(109)
(83)
(27)
-32.5%
1
9
4
3
1,739
1,729
3.3%
10.5%
80.0%
75.0%
-
-
The increase in ordinary gross operating profit for 2021
is mainly attributable to the change in revenue described
above, which was partially offset by an increase in service
costs, particularly for information systems, and by greater
provisions for disputes in Italy.
Gross operating profit came to €1,424 million (€237 million
in 2020). Extraordinary items in 2021 were almost entirely
represented by provisions for restructuring plans and dig-
italization totaling €216 million. Costs incurred in response
to the COVID-19 pandemic for workplace sanitization ac-
tivities, personal protective equipment and donations in
the amount of €6 million decreased by €41 million com-
pared with the same period of the previous year.
Ordinary operating profit/(loss)
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
2021
2020
Change
(16)
(20)
(79)
(1)
5
1,527
1,416
14
(16)
(88)
(6)
3
(197)
(290)
(30)
(4)
9
5
2
1,724
1,706
-
-25.0%
10.2%
83.3%
66.7%
-
-
Ordinary operating profit for 2021 is essentially in line with
the increase in ordinary gross operating profit, taking ac-
count of the €23 million increase in depreciation, amorti-
zation and impairment losses.
Operating profit for 2021, in the amount of €1,149 million
(a loss of €444 million in 2020), reflects the factors de-
scribed above in relation to gross operating profit and or-
dinary operating profit and the €45 million impairment loss
recognized on the Group’s head office in Rome following
the partial demolition of the property for renovations.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
North America
Europe
Other
Total
The increase in capital expenditure in 2021 in Italy is mainly
attributable to property renovation work and software de-
velopment.
204
204
Integrated Annual Report 2021
2021
2020
Change
53
32
4
1
1
116
207
33
27
3
-
-
111
174
20
5
1
1
1
5
33
60.6%
18.5%
33.3%
-
-
4.5%
19.0%
Enel shares
Enel and the financial markets
Gross operating profit per share (euro)(1)
Operating profit per share (euro)(1)
Group profit per share (euro)
Group ordinary profit per share (euro)
Dividend per share (euro)
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)
2021
1.73
0.76
0.31
0.55
0.380
2.92
8.95
6.53
6.77
68,804
10,167
2020
1.66
0.83
0.26
0.51
0.358
2.79
8.57
5.23
8.17
83,110
10,167
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to the consolidated financial statements.
(2) Calculated on average share price in December.
(3) The number of shares includes 4,889,152 treasury shares in 2021 and 3,269,152 treasury shares in 2020.
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
Current(1)
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2019
STABLE
BBB+
A-2
STABLE
Baa1
-
STABLE
BBB+
F2
STABLE
BBB+
A-2
POSITIVE
Baa1
-
STABLE
A-
F2
STABLE
BBB+
A-2
POSITIVE
Baa2
-
STABLE
A-
F2
STABLE
BBB+
A-2
POSITIVE
Baa2
-
STABLE
A-
F2
(1) Figures updated to January 31, 2022.
The world economy in 2021 was characterized by a gener-
alized recovery, with estimated world GDP growth of about
5.8% on an annual basis. The rebound was made possible,
especially in the more developed countries, by significant
government fiscal support and the rapid and effective roll-
out of vaccination campaigns.
However, the reopening of economic activity at the begin-
ning of 2021 generated sharp imbalances between supply
and demand on a global scale, causing severe distortions
in supply chains and, consequently, pushing up the prices
of raw materials and intermediate and consumer goods,
In the 2nd Half of 2021, US GDP, which increased by 5.7%
year-on-year in the year as a whole, grew more slowly than
anticipated at the beginning of the year.
In the euro area, the real economy posted a clear recovery
in both the 2nd and 3rd Quarters of 2021, with annual GDP
grown by 5.2%. However, the economic recovery slowed in
the 4th Quarter due to rapid increases in energy prices and
a surge in Omicron-related COVID cases, which prompted
many countries to reintroduce business closures and mo-
bility restrictions.
Enel shares
205
205
In Latin America, the reopening of national economies co-
incided with a global increase in food and energy prices
against a background of weak local currencies and peri-
ods of severe drought in many large relevant areas of the
continent. These developments pushed up inflation, which
in many cases was well above the targets of local central
banks.
The economic recovery also impacted financial markets.
The main European equity indices closed 2021 with gains.
The Italian FTSE- MIB rose 23.0%, the Spanish Ibex35
gained 7.9%, the German DAX30 increased 15.8% and the
French CAC40 jumped 28.9%.
The euro-area utilities sector (EURO STOXX Utilities) closed
the year with an increase of 3.6%.
Finally, as regards the Enel stock, 2021 ended with a price
of €7.046 per share, a decline of 14.9% on the previous year.
On January 20, 2021 Enel paid an interim dividend of €0.175
per share from 2020 profits and on July 21, 2021 it paid
the balance of the dividend for that year in the amount of
€0.183. Total dividends distributed in 2021 amounted to
€0.358 per share, about 9% higher than the €0.328 per
share distributed in 2020.
In relation to ordinary profit for 2021, on January 26, 2022
an interim dividend of €0.19 was paid, while the balance
of the dividend is scheduled for payment on July 20, 2022.
At December 31, 2021, institutional investors had reduced
their position in Enel to 59.4% of share capital (compared
with 62.3% at December 31, 2020), while the share of indi-
vidual investors rose to 17.0% (as against 14.1% at Decem-
ber 31, 2020). The interest of the Ministry for the Economy
and Finance was unchanged at 23.6%. Socially responsible
investors (SRIs) held about 14.6% of share capital (essential-
ly unchanged on December 31, 2020) and represent 24.6%
of institutional investors (23.4% at December 31, 2020).
Investors who have signed the Principles for Responsible
Investment represent 46.6% of share capital (47.8% at De-
cember 31, 2020).
For further information we invite you to visit the Investor
Relations section of our corporate website (http://www.
enel.com/investors/overview) and download the “Enel In-
vestor“ app, which contains both economic and financial
information (annual reports, semi-annual and quarterly
reports, presentations to the financial community, analyst
estimates and stock market trading trends involving the
shares issued by Enel and its main listed subsidiaries, rat-
ings and outlooks assigned by rating agencies) and up-to-
date data and documentation of interest to shareholders
and bondholders in general (price sensitive press releases,
outstanding bonds, bond issue programs, composition of
Enel’s corporate bodies, bylaws and regulations of Share-
holders’ Meetings, information and documentation relat-
ing to Shareholders’ Meetings, procedures and other doc-
umentation concerning corporate governance, the Code
of Ethics and organizational and management arrange-
ments).
We have also created contact centers for private investors
(which can be reached by phone at +39-0683054000 or
by e-mail at azionisti.retail@enel.com) and for institution-
al investors (phone: +39-0683051; e-mail: investor.rela-
tions@enel.com).
206
206
Integrated Annual Report 2021
Developments in ESG investors
134
132
150
160
10.3
10.5
7.7
8.0
11.3
8.6
8.6
5.9
244
252
19.1
19.1
14.6
14.6
169
13.7
182
14.1
10.5
10.8
2014
2015
2016
2017
2018
2019
2020
2021
Investors
(no.)
Float
(%)
Share capital
(%)
Performance of Enel share price and the EURO STOXX Utilities and FTSE-MIB
indices from January 1, 2021 to January 31, 2022
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
2021
2022
Enel
EURO STOXX Utilities
FTSE-MIB
Enel shares
207
207
Innovation and digitalization
For Enel, innovation and digitalization are key pillars of its
strategy to grow in a rapidly changing context while en-
suring high safety standards, business continuity and op-
erational efficiency, and thus enabling new uses of energy
and new ways of managing it, making it accessible to an
ever-larger number of people.
Enel also operates through an Open Innovability® model,
a consensus-based ecosystem that makes it possible to
connect all areas of the Company with startups, industri-
al partners, small and medium-sized enterprises, research
centers and universities through a variety of system, such
as crowdsourcing platforms and the Innovation Hub net-
work. The Company has numerous innovation partnership
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 indus-
trial Internet of Things (IoT).
Enel’s innovation strategy leverages the online crowd-
sourcing platform (openinnovability.com) and a global net-
work of 10 Innovation Hubs (of which 3 are also Labs) and
22 Labs (of which 3 are dedicated to startups), which con-
solidates the new model of collaboration with startups and
SMEs. The latter offer innovative solutions and new busi-
ness models, and Enel makes its skills, testing facilities and
a global network of partners available to support their de-
velopment and possible scale-up. The Hubs are located in
the most important innovation ecosystems for the Group
(Catania, Pisa, Milan, Silicon Valley, Boston, Rio de Janeiro,
Madrid, Moscow, Santiago de Chile and Tel Aviv), they man-
age relationships with all the players involved in innovation
activities and are the main source of scouting for innova-
tive startups and SMEs. The Labs (among which those in
Milan, Pisa, Catania, São Paulo, Tel Aviv and Be’er Sheva are
the most representative) allow startups to develop and test
their solutions together with the Business Lines.
In 2021, thanks to the Group’s stable positioning in innova-
tive ecosystems and the extensive use of the Hub and Lab
network, more than 90 scouting initiatives were launched
(more than half of which in the form of virtual bootcamps)
in various technological areas. This enabled Enel to meet
more than 2,000 startups and to begin more than 100 new
collaborative relationships.
The community of 500,000 solvers gave Enel a global
crowdsourcing presence in 2021 as well, with over 27 in-
novation and sustainability challenges launched on open-
innovability.com. In 2021, Enel reached a total of over
177 challenges launched since the platform was created,
44,000 users registered on the site (about 400,000 poten-
208
208
Integrated Annual Report 2021
tial solvers from partner platforms) and about €650,000 in
monetary prizes paid to the winners.
In 2021, the integration of Open Innovation Culture and
Agile Transformation was launched at the Group level with
the aim of providing the business with comprehensive
support, from the generation of the idea to the implemen-
tation of projects, using Innovation and Agile approaches
as a key driver to create competitive advantage and opti-
mize costs over time.
Ever increasing importance is being taken on by activities
to promote and develop the culture of innovation and en-
trepreneurship within the Company, through multiple ini-
tiatives such as the training of personnel in courses pro-
vided through the Innovation Academy (many of which
are run with internal instructors), the project involving In-
novation Ambassadors, who are people passionate about
innovation and creativity who voluntarily dedicate part of
their working time to support activities in solving business
challenges with a co-creative and innovative approach,
and finally the “Make it Happen!“ entrepreneurship project,
a company contest in which employees can propose in-
novative business projects or process efficiency projects
directly to Company top management.
During 2021, Enel also continued to implement We4U, the
World energy 4 Universities partnership program with na-
tional and international universities and research centers,
with the aim of maintaining a constant and multidisciplinary
dialogue focused on the challenges of the energy transition.
The activities of the innovation communities also contin-
ued, involving different areas and skills within the Company.
In addition to the existing communities addressing energy
storage, blockchain, drones, augmented and virtual reality,
additive manufacturing, artificial intelligence, wearables,
robotics and green hydrogen, four other communities on
sensors, materials, computer generative design and data
monetization were added in 2021. While for the most cut-
ting-edge technologies the role of the communities is ex-
ploratory, researching possible use cases and applications,
others play a role in sharing and disseminating best prac-
tices that can enable technologies to scale and expand
their impact on the business: this is the case of drones,
with possibilities opened by regulatory developments con-
cerning flights beyond the visual line of sight (BVLOS), ro-
botic solutions, especially in the field of legged-robots and
autonomous missions, virtual and augmented reality and
artificial intelligence applications.
In 2021, €130 million (including personnel expenses) were
invested in innovation, research and development.
In 2021, cyber security innovation work benefited from the
network of Innovation Hubs, as well as from their startup
portfolio and the partnerships agreed at the Group level.
These interconnections have fostered the sharing of best
practices and operating approaches, as well as the estab-
lishment and expansion of info-sharing channels. In par-
ticular, the services provided by more than 20 startups were
analyzed and proof-of-concept activities were performed,
some of which are still in progress while others have been
internalized, addressing the issues summarized below.
The following technological areas were investigated:
• cyber protection and detection services in the field of
micro-services, in particular for containers and server-
less instances in the DevSecOps field;
• specific solutions for the protection of industrial sys-
tems (OT), which owing to their scope of applicability
often have low computational capacity and are linked
to legacy systems;
• services for identifying vulnerabilities in third-party as-
sets and services used by the organization that can un-
dermine the security of the organization itself (external
attack surface);
• solutions that exploit the greater potential of artificial
intelligence and machine learning, helping to enhance
capabilities for the detection of cyber threats and the
automation of analysis, correlation and response to in-
cidents;
• solutions to identify the vulnerabilities of assets and de-
vices (mobile devices, IoT, web applications, etc) with the
use of innovative techniques;
• services that enable analysis of the firmware of IoT de-
vices within a few hours and the rapid identification of
key vulnerabilities, optimizing execution times com-
pared with manual processes.
Intellectual property
Continuing the work done the previous year, in 2021 Enel
redoubled its commitment to leveraging and developing
its intellectual property portfolio to ensure it serves as a
source of competitive advantage for the Group.
The Open Innovability® ecosystem generates innovation
through the creation and sharing of internal and external
solutions that give life to ideas that enable the safe and
sustainable propagation of the technological solutions
through which electrification, platformization and stew-
ardship programs are implemented, but which at the same
time require appropriate forms of legal protection.
This innovative impulse is also reflected in the Group’s
investment in intangible assets, which show a significant
increase, in line with the strategic direction delineated
above, with particular regard to IT and digital applications.
The investments focused on all the Group’s Global Busi-
ness Lines and mainly concerned:
• in the Global Thermal Generation Global Business Line,
the development of innovative technical solutions in so-
lar generation that seek, on the one hand, to create an
innovative system for the rapid and automatable instal-
lation of photovoltaic panels and, on the other hand, to
increase the photovoltaic output of plants by increas-
ing charge transfer mechanisms at the micro and na-
nometric level in correspondence with different layers
both in single and heterojunction cells and in tandem
systems;
• in the Global Infrastructure and Networks Global Busi-
ness Line, the creation of platforms for the exploitation
of network externalities in the service market, as well as
for the automation of user management;
• in the Enel X Global Business Line, the development of
applications in the telemedicine business and platforms
in urban livability field, with particular regard, respec-
tively, to the Smart Axistance eWell App, designed and
operated in collaboration with leading specialists at the
Policlinico Gemelli Foundation, and to the 15 Minutes
City Index platform, developed in collaboration with the
University of Florence;
• in the new e-Mobility Global Business Line, the defini-
tion of forms of protection for its solutions in electric
charging, including the community design to protect
Juice Media, an innovative product which enables the
simultaneous offer of electric charging and multimedia
advertising services in a single structure.
The Group is also investing resources in the development
of innovative solutions for protecting its intellectual prop-
erty, mainly in the forms of copyright protection and trade
secrets, concerning climate models and advanced quan-
titative models for the analysis of energy systems in order
to support decarbonization and electrification in the main
geographical areas in which we operate, using an integrat-
ed and future-oriented vision.
At December 31, 2021, the Group had applied for 892 for
patents in 146 technological families. Of these, 749 have
been granted and 143 are pending. The portfolio ensures
protection in all the markets in which the Group is present.
For a detailed analysis of the most significant intellectual
property rights of each Global Business Line, please see
the section on intellectual property in the Sustainability Re-
port. The increase in the size of the entire portfolio of intel-
Innovation and digitalization
209
209
lectual property rights held by the Enel Group corresponds
to growing internal efforts to strengthen the information
infrastructure necessary for the immediate identification
of the innovation generated, its evaluation and protection,
as well as the ongoing monitoring of the portfolio’s evolu-
tion, with a view to ensuring continuous and close align-
ment between technological and commercial trajectories
and corresponding forms of safeguarding the competitive
advantage provided by intellectual property rights. The
Group also intends to continue to support and encourage
the development of its innovation model through specific
projects for internal dissemination by the Intellectual Prop-
erty unit. In this regard, in 2021 a new Intellectual Property
Management procedure was introduced and management
reporting tools were developed to enhance the sharing of
information on the value generated within Enel through
the Open Innovability® model. For more information,
please see the section on intellectual property in the Sus-
tainability Report.
The new Intellectual Property
Management procedure
The management of the Group’s intellectual property is
governed by the new Intellectual Property Management
procedure. It comprises all stages of the life of intellectu-
al property, from the moment of conception of inventions
to that of protecting and maintaining the portfolio and re-
lationships with external counterparties. In particular, the
procedure governs cases in which the intellectual property
generated within Enel is transferred externally in circum-
stances such as: (i) collaborative research; (ii) procurement;
(iii) relations with startups; (iv) mergers, acquisitions and
stewardship operations; and (v) the outright or licensed
acquisitions of intangible assets of Enel and third parties.
The methods for protecting intangible assets, monitoring
their use, and metrics for measuring the Group’s perfor-
mance in the management of intellectual property are
regulated within this procedure, tracing information of use
in the future planning and leveraging assets and mapping
risks.
The Intellectual Property Reporting project
Starting in 2020, Enel has set itself the challenge – com-
monly felt but not definitively absorbed into corporate
practices in the various global technology companies
– of accurately representing its intellectual assets in its
non-financial reporting. This prompted us to first under-
take a quantitative and qualitative survey of our existing
assets, systematizing both legally protected assets (pat-
ents, designs, utility models) and trade secrets. In 2021,
Enel laid the foundations for the definition of an internal
non-financial reporting process for intellectual property,
based on a proprietary methodology designed to lend
continuity from year to year to valuing and leveraging our
intangible asset resources, partly with a view to future ex-
ternal reporting.
The process is applicable to all internal Enel projects
that are intended to generate intellectual property and is
based on the necessary and preventive identification of
the various components which a project may generate,
such as, among other things, documentation, technol-
ogy, algorithms, processes, products, layouts, schemes
and dashboards. Each identified intangible element is
matched with one or more forms of intellectual prop-
erty right in order to measure the intensity of the pro-
ject’s output in terms of intellectual content. The internal
210
210
Integrated Annual Report 2021
methodology also envisages an exercise to evaluate the
intellectual property generated internally, which, while not
intending in any way to replace other valuation methods
adopted within the Enel Group for determining fair value
based on income methods, makes it possible to assess
the intrinsic value of these intangibles on the basis of fi-
nancial factors and providing an indication of the invest-
ment that would be necessary to replicate the technolog-
ical solution being evaluated.
At an experimental level, a number of projects that have
contributed to the generation of intellectual proper-
ty within the Enel Group were selected from within the
Global Business Lines, the Global Service Functions
and the staff functions for a more detailed analysis of
the problems arising from the application of this qual-
itative-quantitative methodology. The methodology was
tested and perfected with these projects on the basis of
empirical experience and taking account of the specific
technical and organizational features of the various areas.
More specifically, the most interesting practical applica-
tions of the Intellectual Property Reporting methodology
include Grid Blue Sky, a flagship project of the Global In-
frastructure and Networks Business Line (mentioned in
the 2020 Sustainability Report), and the intangibles of
the 3SUN factory, which is involved in the manufacture of
bi-facial heterojunction solar panels based on proprietary
Enel technology.
The Grid Blue Sky project seeks to re-engineer the oper-
ating model used for grids with a view to the integrated
management of all operations, from design and planning
to operation and maintenance, interaction with custom-
ers and the support of new business models adopted by
distributors, all in such a way that the various functions
are natively compatible with the various aspects of the
operating environment, including the regulatory factors
typical of energy markets. Grid Blue Sky is based on an
innovative development paradigm, which makes its archi-
tecture scalable, sustainable and resilient, being based
on the idea that all the activities of an operator take
place through access to a single integrated platform on
which the data converge. This avoids the need to devel-
op redundant vertical solutions, because the database is
shared and opens up the possibility of developing count-
less services or integrating third-party solutions. The
platform includes the following components:
• the asset owner, which concerns everything related to
the planning and development of the power grid;
• the asset operator, which concerns the management
of grid operation and maintenance processes;
• customer engagement, which handles interaction with
customers, who will thus benefit from a single platform
for interaction and relationship management; and
• the system operator, which looks to the future of elec-
tricity distribution, examining as yet unregulated per-
spectives concerning the use of the flexibility offered
by grid-connected resources to solve congestion and
voltage regulation issues.
The examination of the project using the Intellectu-
al Property Reporting methodology made it possible to
identify the various intangible components that combine
to form the platform and confirmed the considerable in-
tellectual property density of Grid Blue Sky. The search for
a correspondence between intangible components and
forms of protection – which is part of the methodology
inaugurated by Enel – reveals the presence of a copy-
right on all the source code underpinning the platform
and on all aspects of conceptual design and the infor-
mation flows at the basis of the operating model, as well
as copyright over all the original graphic elements (user
interfaces and data access dashboards). Furthermore, in
application of the internal procedure governing the pro-
tection of trade secrets, all the confidential components
underlying Enel’s great know-how in managing the grid
and which are expressed in technological, organization-
al, economic, financial and marketing aspects have been
identified, isolated and codified.
Similarly, the exercise of codifying intangible assets and
identifying forms of protection was conducted for Enel
Green Power’s 3SUN factory, which conceives and de-
velops new-generation photovoltaic applications. Enel
has long been at the forefront in the design of bi-facial
heterojunction solar panels, which increase the efficiency
of systems thanks to their greater capacity for capturing
solar radiation. 3SUN’s know-how in this area does not
only involve the panel as such, but also the innovative
materials used, the assembly methods, as well as all the
industrial knowledge behind the construction and auto-
mated management (from an Industry 4.0 perspective) of
production lines. The codification of intellectual property
for 3SUN identified all the technological components and
related forms of protection, which involve a broad group
of patent families for the processes implemented, the
materials used and the heterojunction techniques used
to manufacture panels, as well as a considerable volume
of confidential knowledge, adequately identified and pro-
tected, necessary to make the panels, and specific pro-
duction know-how that directly concerns the realization
of all the components of the Gigafactory.
The cases of Grid Blue Sky and 3SUN are emblematic of
the assiduous work that Enel has been pursuing for some
years now to make it increasingly visible to the outside
world how intellectual property is instrumental to the
generation and preservation of the Company’s com-
petitive advantage, both in cases of direct and internal
exploitation of technological solutions (as in the case of
3SUN) or where proprietary oversight is instrumental to
sharing knowledge in a context of open innovation and
enabling new business models (as in the case of Grid Blue
Sky).
Innovation and digitalization
211
211
People centricity
People management and development at Enel
The Enel Group workforce at December 31, 2021 numbered
66,279 (66,717 at December 31, 2020). The contraction of
438 in the Group workforce in 2021 reflects the impact of
the balance between new hires and terminations during the
period (-461) and the change in the consolidation scope (a
total of +23), which included the disposal of the Enel Green
Power Bulgaria companies and the acquisition of CityPoste
Payment SpA in Italy.
The following tables analyze the number and variation in
employees by gender, age group, job classification and ge-
ographical area. An analysis by Business Line is also provid-
ed for the number of employees only.
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
%
%
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2021
66,279
51,341
77.5
14,938
22.5
66,279
7,761
11.7
38,024
57.4
20,494
30.9
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
66,279
66,717
2.1
18.5
53.6
25.8
66,279
30,276
45.7
9,518
14.4
18,763
28.3
4,994
7.5
1,914
2.9
814
1.2
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
Change
(438)
(1,005)
-1.0
567
1.0
(438)
472
0.8
1,669
2.9
(2,579)
-3.7
(438)
-
1.1
-0.2
-0.9
(438)
476
1.0
(263)
-0.3
(1,075)
-1.4
28
0.1
275
0.4
121
0.2
-0.7%
-1.9%
-1.3%
3.9%
4.7%
-0.7%
6.5%
7.3%
4.6%
5.3%
-11.2%
-10.7%
-0.7%
-
6.3%
-0.4%
-3.4%
-0.7%
1.6%
2.2%
-2.7%
-2.0%
-5.4%
-4.7%
0.6%
1.4%
16.8%
16.0%
17.5%
20.0%
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
212
212
Integrated Annual Report 2021
Workforce by Business Line
No.
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Holding and other
Total
Change in workforce
Balance at December 31, 2020
Hirings
Terminations
Change in consolidation scope
Balance at December 31, 2021
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, 2021
at Dec. 31, 2020
Percentage of total
at Dec. 31, 2021
Percentage of total
at Dec. 31, 2020
7,847
8,989
33,263
6,148
3,352
5,734
946
66,279
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
8,142
8,298
34,332
6,324
2,989
5,731
901
66,717
2021
8.1
5,401
3,764
69.7
1,637
30.3
5,401
2,579
47.8
2,653
49.1
169
3.1
5,401
1,697
31.5
693
12.8
1,704
31.5
439
8.1
636
11.8
232
4.3
11.8%
13.5%
50.2%
9.3%
5.1%
8.7%
1.4%
12.2%
12.4%
51.5%
9.5%
4.5%
8.6%
1.3%
100.0%
100.0%
66,717
5,401
(5,862)
23
66,279
72.3%
72.5%
70.9%
-1.0%
76.4%
2.4%
72.5%
89.2%
9.9%
56.1%
-9.6%
-
40.9%
72.5%
62.5%
-5.4%
-
56.1%
71.9%
-0.6%
56.8%
-9.0%
75.7%
1.7%
17.8%
-31.7%
Change
3.4
2,270.0
1,561
-0.7
709
0.7
2,270
1,216
4.3
953
-5.2
101
0.9
2,270
653
-1.8
436
4.6
713
-0.2
159
-0.8
274
0.2
35
-2.0
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
People centricity
213
213
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
Training and development
As the COVID-19 emergency evolved, personnel safety was
guaranteed by continuing to adopt the flexible working meas-
ures implemented in 2020. In 2021, remote working was
used by more than 39 thousand employees in the countries
in which the Group operates. This capacity for flexibility and
resilience leverages our consolidated experience with flexible
working, which began in Italy as early as 2016 and then grad-
ually spread throughout the Group, and the technological and
digital transformation of corporate strategy that has made
Enel the first public utility completely resident in the cloud.
The new approach to work has benefited from the numer-
ous tools and support services made available to our people,
an essential prerequisite for working from home, ensuring
the circulation and sharing of information and the effective
organization of activities. Training and awareness-raising in-
itiatives continue to accompany the adoption of fully digital
working methods and the promotion of a work culture based
on independence, delegation and trust, and attention to the
well-being of our people and their families.
In this context, the targeted reskilling and upskilling programs
214
214
Integrated Annual Report 2021
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2021
8.8
5,862
4,779
81.5
1,083
18.5
5,862
702
12.0
2,275
38.8
2,885
49.2
5,862
1,249
21.3
956
16.3
2,779
47.4
406
6.9
361
6.2
111
1.9
2020
6.0
3,696
3,001
81.2
695
18.8
Change
2.8
2,166
1,778
0.3
388
-0.3
3,696
2,166
547
14.8
1,273
34.4
1,876
50.8
3,696
1,011
27.3
599
16.2
155
-2.8
1,002
4.4
1,009
-1.6
2,166
238
-6.0
357
0.1
1,393
1,386
37.7
299
8.1
313
8.5
81
2.2
9.7
107
-1.2
48
-2.3
30
-0.3
46.7%
58.6%
59.2%
0.4%
55.8%
-1.6%
58.6%
28.3%
-18.9%
78.7%
12.8%
53.8%
-3.1%
58.6%
23.5%
-22.0%
59.6%
0.6%
99.5%
25.7%
35.8%
-14.8%
15.3%
-27.1%
37.0%
-13.6%
have therefore been strengthened, the former to learn skills
and expertise that enable people to fill new positions and
roles, while the latter involve the development of training and
empowerment courses that enable employees to improve
their performance in their job, increasing the skills available to
them in their current position.
During 2021, dissemination efforts concerning upskilling and
reskilling issues were launched with the involvement of all the
Group’s countries and Business Lines: these included a global
challenge and 36 interviews with senior executives on current
and future skills. A working group was also formed to draft
guidelines and map projects, adopting a common taxonomy
in which upskilling, reskilling and external skilling are consid-
ered as an integrated set of initiatives that include training,
development and the Enel ecosystem as a whole.
European networking on upskilling and reskilling issues was
expanded by joining the Upskill4the future initiative of CSR
Europe with the People Business Partner R-evolution project
of e-distribuzione, targeted at People Business Partners, the
first facilitators of the energy transition in accompanying peo-
ple along their professional growth path, who contributed to
the drafting of the Joint Statement on the Just Transition, of
the European social partners, signed in November.
Enel promotes training activities for its people as a key ele-
ment in ensuring their constant development. We have de-
veloped career paths to foster the evolution of our talent, the
valorization of passions and personal aptitude and the de-
velopment of new languages, also promoting the formation
of internal trainers (“train the trainer“). In 2021, some 3 million
hours of training were provided, an increase compared with
the previous year, with 20% provided in person and the re-
mainder delivered remotely. This was made possible by the
upgrading of digital tools and the E-Ducation platform, which
ensured broad access to content and expanded the culture
of digitalization for learning. The training courses covered is-
sues related to conduct, technical issues, safety, new skills and
digital culture.
Total Group training costs in 2021 amounted to €23 million.(18)
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
2021
44.6
29.6
41.9
38.4
60.3
46.5
37.7
2020
40.9
31.9
41.4
35.7
51.4
40.4
42.7
Change
3.7
9.0%
(2.3)
0.5
2.7
8.9
6.1
(5.0)
-7.2%
1.2%
7.6%
17.3%
15.1%
-11.7%
In a rapidly changing work environment, accelerated by
the pandemic crisis, the Group has set itself the ambi-
tious goal of promoting digital sustainability in the coming
years through a series of training initiatives that illustrate
all those technologies that enable our people to work and
coexist sustainably with the surrounding environment.
With regard to people development initiatives, in 2021 a
new performance appraisal model was developed and ex-
tended to the entire Group: the Open Feedback Evaluation
(OFE). The program, which involves 100% of the Group’s
eligible employees, has significant distinctive features
compared with past iterations. More specifically, in order
to forge a constant dialogue between and with people,
the evaluation has been made continuous and omni-com-
prehensive, with three moments of communication be-
tween managers and personnel during the year. The new
OFE model consists of three interdependent dimensions:
“Talent“, which consists in highlighting a worker’s individual
skills based on the 15 Soft Skills Model linked to the 4 Open
Power values of Trust, Responsibility, Innovation and Pro-
activity; “Generosity“, understood as an aptitude to enter
into relationships with others, dedicating time to recog-
nizing the talents of colleagues and in turn getting involved
by requesting feedback on one’s own performance, gen-
erating a mechanism for individual and collective growth;
and, finally, “Action“, i.e., the ability of employees to achieve
professional goals, as assessed by their managers.
Listening and improvement of organizational well-being
Following earlier initiatives conducted by Enel to ensure
we are constantly listening to our people, which over the
years have led to the development of specific action plans
for individual holding functions, Business Lines and ge-
ographical areas, producing answers to the main needs
that emerged from the process (meritocracy, personal
development, work-life balance, etc.), at the end of 2020
a global “Open Listening - interview to build our future“
program was launched. This global initiative, which saw the
active participation of 70% of employees, provided impor-
tant feedback on the internal climate but also on working
conditions, asking our people to imagine the future in the
“Next Normal“ era: from remote working methods to spac-
es, innovative technologies and the new leadership models
of the future.
Furthermore, during 2021 Enel and our people also de-
veloped a global well-being model based on eight pillars
that impact general satisfaction: psychological, physical,
(18) 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.
People centricity
215
215
social, ethical, economic and cultural well-being, work-life
harmony and a feeling of protection. To measure well-be-
ing and identify the most important initiatives for people,
a global well-being survey was conducted. The findings of
the survey will enable the development of a Global Well-
ness Program in 2022, with the involvement of an interna-
tional, diverse and multicultural team.
Finally, 2021 saw another important listening moment
aimed at identifying, among other things, the aspects of
the work environment that our personnel recognize as
most valuable and distinctive of the Group: the “Employer
Value Proposition Survey“. Thanks to this project, which in-
volved employees from around the world, a Net Promoter
Score – an indicator measuring the employee satisfaction
– was also analyzed, assessing the main attributes associ-
ated with the Enel brand in its position as an “employer of
choice“. Sustainability, innovation, safety at work and work-
life balance are the main attributes that emerged, factors
that also match the main preferences declared by people
when they choose where they want to work.
Diversity in Enel
The inclusion of diversity and the valorization of people’s
multiple and unique talents are essential factors of Enel’s
approach for creating long-term sustainable value for all
stakeholders.
Enel’s commitment to promoting diversity and inclusion is
a process that started in 2013 with the adoption of our Hu-
man Rights Policy, followed in 2015 by our global Diversity
and Inclusion Policy, published in conjunction with Enel’s
adoption of the Women’s Empowerment Principles (WEP)
promoted by the UN Global Compact and UN Women and
in line with the United Nations Sustainable Development
Goals. In 2019, the Global Workplace Harassment Policy
was published. It sets out the principle of respect for the
integrity and dignity of the individual in the workplace and
addresses the issue of sexual harassment and harassment
connected with discrimination in the workplace. In 2020,
these principles were delineated in the Statement against
Harassment. Finally, with a focus on the inclusion of every-
one and with a view to ensuring equal opportunities for
access to information and digital systems, a global digital
accessibility policy was issued in 2021.
Our approach to diversity and inclusion is based on the
principles of non-discrimination, equal opportunities, dig-
nity and inclusion of every person regardless of differenc-
es, and work-life balance. It is embodied in a comprehen-
sive set of actions that promote the care and expression
of the uniqueness of each person, an inclusive and prej-
udice-free organizational culture, and a coherent mix of
skills, qualities and experiences that create value for peo-
ple and the business.
Among the most important initiatives pursued in 2021 are
dedicated actions to systematically impact the various as-
pects of the gender gap and the inclusion of disability, the
specific listening and support services made available to
people in the context of the pandemic emergency, projects
dedicated to people with vulnerabilities, awareness-raising
initiatives on LGBTQ+ issues and cultural diversity.
In recent years, an intense awareness-raising effort has
216
216
Integrated Annual Report 2021
helped spread and strengthen the culture of inclusion at
every level and in every organizational context, using com-
munication campaigns and dedicated global and local
events. In 2021, two global awareness campaigns on work-
place bias and harassment were launched for all employ-
ees.
The progress of D&I policies is monitored periodically
through a global reporting process that measures the per-
formance of an extensive 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 ensure
equal balance of the two genders in the initial stages of the
selection processes and to increase the representation of
women in senior and middle management. In 2021, women
represented 52.1% of people involved in the selection pro-
cess, an increase on 2020 (44%), while women accounted
for 23.6% of senior managers (21.6% in 2020) and 31.4% of
middle managers (30.4% in 2020).
With this in mind, a new performance target in the 2021
Long-Term Incentive Plan has been introduced, with a
weight equal to 5% of the total, represented by the “per-
centage of women in management succession plans“ at
the end of 2023.
This represents an objective for all managers of Enel and/
or its subsidiaries, including the General Manager (as well
as Chief Executive Officer) of Enel, who hold top positions
and/or positions of strategic interest for the Group. It also
underscores the strong commitment of the Enel Group
to ensuring equal representation of women in the areas
that feed management succession plans and emphasizes
the increasing attention being paid to the issue of gender
equality.
As part of the Value for Disability project, the actions en-
visaged in the associated action plan continued with the
issuance of a global policy on digital accessibility and nu-
merous awareness-raising initiatives aimed at spreading
a new approach to the inclusion of colleagues with disa-
bilities and promoting their effective participation. In Italy,
the roll out of new services for people with chronic disease
and the vulnerable also continues.
For the purposes of monitoring pay equality, in 2021 a 2%
increase in the percentage of female managers (from 21.6%
to 23.6%) produced a slight decrease in the Equal Remu-
neration Ratio (ERR), which slipped from 83.3% to 81.1%.
All the actions taken to valorize the presence of women in
the Group continued, whether for those in top positions or
Diversity and inclusion
Disabled personnel or personnel belonging the protected categories
Women senior and middle managers
Ratio of base salary to remuneration
Ratio of base salary women/men:
- senior manager
- middle manager
- office staff
- blue collar
Ratio of base remuneration women/men:
- senior manager
- middle manager
- office staff
- blue collar
otherwise, the effects of which will be fully appreciable in
the medium/long term, taking due account of generation-
al dynamics.
The following table demonstrates Enel’s commitment to
diversity and inclusion, showing the proportion of disa-
bled personnel, the number of women in senior or middle
management positions and the ratio of the average basic
remuneration of women to that for men.
%
no.
%
%
%
%
%
%
%
%
%
%
2021
3.2
4,163
104.8
84.6
94.2
88.4
111.2
105.1
81.1
93.2
88.4
112.0
2020
3.3
3,825
108.1
86.7
96.5
90.2
77.0
108.3
83.3
95.7
90.3
77.8
Change
-0.1
338
-3.3
-2.1
-2.3
-1.8
34.2
-3.2
-2.2
-2.5
-1.9
34.2
-3.0%
8.8%
-3.1%
-2.4%
-2.4%
-2.0%
44.4%
-3.0%
-2.6%
-2.6%
-2.1%
44.0%
Workplace health and safety
Enel considers employee health, safety and general well-be-
ing to be its most valuable asset, one to be preserved both
at work and at home. We are therefore committed to de-
veloping and promoting a strong culture of safety that
ensures a healthy work environment and protection for all
those working with and for the Group. Safeguarding our
own health and safety and that of the people with whom we
interact is the responsibility of everyone who works for Enel.
For this reason, as provided for in the Group “Stop Work
Policy“, everyone is required to promptly report and halt any
situation of risk or unsafe behavior. The constant commit-
ment of us all, the integration of safety both in corporate
processes and training, the reporting and detailed analysis
of all information, near misses, safety warnings, non-com-
pliance, controls, rigor in the selection and management of
contractors, the sharing of experience and best practices
throughout the Group as well as benchmarking against the
leading international players are all cornerstones of Enel’s
culture of safety. During 2021, the “Data Driven Safety“ ap-
proach was further developed. It seeks to develop “selective
prevention“ safety indicators that help identify the country,
technology and area at greatest risk of fatal events in order
to direct prevention and protection interventions for inter-
nal employees and contractors.
The Group’s approach to suppliers is to consider each of
them as a partner with whom the key principles of safety
and the environment are to be shared. These include the
Zero Accidents goal and the importance of the Stop Work
Policy, tools that make it possible to promptly report and halt
any situation of risk that could harm people or the environ-
ment. At all stages, from qualification to contract award, the
Group has adopted specific tools to monitor the manage-
ment of Health, Safety and Environmental requirements. Ac-
curate monitoring is associated with a continuous process
of on-site inspections and consequence management, de-
fined on the basis of the supplier’s safety and environmental
risk profile, with a view to improving performance.
In addition, during 2021 the Contractor Safety Partnership
program continued. It is based on sharing Enel’s core values
for safety. In particular, the Safety Support process proposes
lines of improvement and internal experience is made avail-
able to suppliers to support the training of contractor staff,
while keeping the responsibilities of the contractor well
separated from Enel.
Enel is committed to increasing safety and environmental
skills both in terms of technical know-how and cultural ap-
proach, all with a view to promoting a new way of working
that is safer for people and more sustainable for the envi-
People centricity
217
217
ronment. To this end, in 2021 the SHE Factory unit expand-
ed its effort in the production, distribution and provision of
courses and training material for Enel staff and contractors.
The following table reports the main workplace safety indi-
cators.
Hours worked
Enel
Contractors(1)
Total injuries (TRI)
Enel
Contractors
Injury frequency rate (TRI)(2)
Enel
Contractors
Fatal injuries
Enel
Contractors
Fatal injury frequency rate
Enel
Contractors
“Life changing“ injuries(3)
Enel
Contractors
“Life changing“ injury frequency rate
Enel
Contractors
millions of hours
millions of hours
millions of hours
2021
423.362
123.421
299.940
2020
403.333
125.264
278.069
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
1,212
156
1,056
2.863
1.264
3.521
9
3
6
0.021
0.024
0.020
4
1
3
0.009
0.008
0.010
1,308
196
1,112
3.243
1.565
3.999
9
1
8
0.022
0.008
0.029
-
-
-
-
-
-
Change
20.028
(1.843)
21.871
(96)
(40)
(56)
(0.380)
(0.301)
(0.478)
-
2
(2)
(0.001)
0.016
(0.009)
4
1
3
0.009
0.008
0.010
5.0%
-1.5%
7.9%
-7.3%
-20.4%
-5.0%
-11.7%
-19.2%
-12.0%
-
-
-25.0%
-3.4%
-
-31.0%
-
-
-
-
-
-
(1) The 2020 figures reflect a more accurate calculation.
(2) 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
worked/1,000,000.
Injuries whose consequences caused permanent changes in the life of the individual (amputation of a limb, paralysis, neurological damage, etc.).
(3)
In 2021, the total recordable injury (TRI) declined by 7.3%
compared with 2020. The decline was found for both Enel
employees (-20.4%) and contractor employees (-5.0%).
In 2021, there were:
• 9 fatal accidents, of which 3 involving Enel Group em-
ployees (2 in Italy and 1 in Brazil), and 6 fatal accidents
involving contractors (2 in Brazil, 2 in Chile, 1 in Italy and
1 in Spain);
• 4 “life changing“ accidents, of which 1 involving an Enel
employee in Brazil and 3 involving contractors (1 each in
Brazil, Colombia and Spain).
The causes of these fatal accidents were mainly associated
with electrical (7), mechanical (5) and chemical (1) incidents.
The Enel Group has established a structured health man-
agement system, based on prevention measures to de-
velop a corporate culture that promotes psycho-physical
health, organizational well-being and a balance between
personal and professional life. With this in mind, the Group
conducts global and local awareness campaigns to pro-
mote healthy lifestyles, sponsors screening programs
aimed at preventing the onset of diseases and guarantees
the provision of medical services. The Enel Group has a sys-
tematic and ongoing process for identifying and assessing
work-related stress risks, in accordance with the Stress at
Work Prevention and Well-being at Work Promotion pol-
icy, for the prevention, identification and management of
stress in work situations, also providing recommendations
aimed at promoting a culture of organizational well-being.
In 2021, the Enel Group focused on strengthening the
measures and programs targeting well-being issues, which
are increasingly vital in ensuring not only the well-being of
its workers in the context of a pandemic but also looking to
the future and to new ways of working.
The Group also constantly monitors epidemiological and
health developments in order to implement preventive and
protective 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 en-
sure the continuity of electricity supply to the communities
in which it operates, primarily by setting up specific global
and country task forces and, subsequently, establishing a
218
218
Integrated Annual Report 2021
unit responsible for overseeing this process.
The purpose of this Pandemic Emergency Management unit
is to monitor of emergencies, define strategy and global
policies and their adoption in every area of the Group and
direct, integrate and monitor all prevention, protection, safe-
guard and response actions intended to protect the health
of its employees and contractors, also in relation to external
health risk factors not strictly related to work.
Responsible relations with communities
Establishing solid and lasting relationships with local
communities in the countries in which Enel operates is a
fundamental pillar of the Group’s strategy. This, together
with devoting unswerving attention to social and environ-
mental factors, has enabled Enel, on the one hand, to im-
plement a new balanced model of equitable development
that leaves no one behind and, on the other, to create
long-term shared value for all stakeholders.
This model has been incorporated along the entire value
chain: from proactive analysis of the needs of communi-
ties right from the development phases of new business
to the establishment of sustainable worksites and plants,
managing assets and plants to make them sustainable
development platforms to the benefit of the territories
in which they are located. A further evolution is the ex-
tension of this approach to the design, development and
supply of energy services and products, as well as pro-
cess innovation, leveraging new technologies and help-
ing to build increasingly circular, inclusive and sustainable
communities.
In line with the Sustainable Development Goals (SDGs),
Enel makes a concrete contribution to the sustainable
progress of the territories in which it operates. This com-
mitment is fully integrated into our purpose and corpo-
rate values, from the expansion of infrastructure to ed-
ucation and vocational training programs, and projects
to support cultural and economic activities. Specific in-
itiatives have been designed to promote access to en-
ergy and rural and suburban electrification, addressing
energy poverty and promoting social inclusion for the
most vulnerable segments of the population, also using
new technologies and circular economy approaches and
adopting a strategy that fully incorporates sustainability
into our business model and activities. Various initiatives
have been developed globally for the protection of biodi-
versity, in line with the Group’s decarbonization strategy.
There are two major challenges in particular: the equita-
ble and sustainable energy transition and the post-pan-
demic recovery.
The energy transition represents an important accelera-
tor of growth and modernization of industry, thanks to
the potential it offers in terms of economic development,
well-being, quality of life and equality. Far-sighted poli-
cies are necessary to seize these opportunities, ensuring
a just and inclusive transition and taking particular ac-
count of the needs of the social categories most exposed
to change. Enel is convinced that, in order to generate
lasting profit, value must be shared with the entire envi-
ronment in which it operates.
With the continuation of the COVID-19 pandemic, our
commitment to support communities has also contin-
ued, with the activation of specific initiatives to sustain
socio-economic recovery through the development of
local marketplaces, facilitating access to credit and pro-
moting inclusive business models to support the weaker
segments of the population, with particular attention to
people in physically, socially and economically vulnera-
ble positions. Many digitalization projects have also been
undertaken to support connectivity in rural areas, com-
puter literacy, the participation of women in STEM fields,
e-commerce platforms and online or offline solutions
with a positive impact on local economies.
In 2021, Enel developed over 2,400 sustainability projects
involving more than 7.5 million beneficiaries in the coun-
tries in which it operates. Projects to ensure access to
affordable, reliable, sustainable and modern energy (SDG
7) have involved 13.2 million people to date,(19) those to
foster the economic and social development of commu-
nities (SDG 8) have reached 3.7 million beneficiaries,(20)
while initiatives to promote quality education (SDG 4)
have benefited 3 million people.(21)
In order to identify the best ideas for each area, the pro-
cess involves sharing with local communities and listen-
ing to stakeholders, leading to the identification of effec-
tive measures to respond to local needs in synergy with
company objectives.
(19) Cumulative 2015-2021 figures for total number of SDG 7 beneficiaries to date.
(20) Cumulative 2015-2021 figures for total number of SDG 8 beneficiaries to date.
(21) Cumulative 2015-2021 figures for total number of SDG 4 beneficiaries to date.
People centricity
219
219
The ideas that emerged from stakeholder engagement
and constant dialogue with communities represent the
basis for the construction of long-term partnerships with
the active involvement of non-governmental organiza-
tions and startups, companies and institutions rooted in
the territory. An approach that leads to the implementa-
tion of a wide range of projects in different areas, thanks
in part to the activation of virtuous ecosystems such
as the Open Innovability® platform, which is based on
openness and sharing, facilitating and promoting the
identification of innovative social ideas and solutions. In
2021, over 580 partnerships were active at an interna-
tional level, fostered in part by a range of tools such as,
for example, crowdsourcing platforms (openinnovability.
com) and the Innovation Hub network.
Sustainable supply chain
In addition to meeting certain quality standards, the ser-
vices of our vendors must also go hand in hand with the
adoption 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, fair-
ness and transparency. The procurement process plays a
central role in value creation in its various forms (safety,
savings, timeliness, quality, earnings, revenue, flexibility)
as a result of ever-greater interaction and integration with
the outside world and the different parts of the company
organization. About 6,900 qualified suppliers had an active
contract in place at the end of 2021.
Vendor management
involves three essential stages,
which integrate social, environmental and governance
issues: the qualification system, the definition of general
terms and conditions of contract, and the Supplier Per-
formance Management (SPM) system in the evaluation
process. Enel’s global vendor qualification system (with
about 14,000 active qualifications at December 31, 2021)
enables us to accurately assess businesses that intend
to participate in tender processes through the analysis of
compliance with technical, financial, legal, environmental,
health and safety, human and ethical rights and integrity
requirements, representing a guarantee for the Compa-
ny. As regards the tendering and bargaining process, Enel
continued to introduce aspects related to sustainability in
tendering processes, not only with the introduction of a
specific “K for sustainability“ factor, but also through the
use of mandatory sustainability requirements that take ac-
count of the environmental, social and safety characteris-
tics of suppliers. To facilitate the application and monitor-
ing of these requirements, in 2021 the first version of the
sustainability requirements library was implemented on
the WeBUY purchasing portal, a coded list of sustainability
actions that buyers can apply as mandatory requirements
in the tender phase. In the early months of 2021, all the
standards (Product Category Rules) necessary to obtain
the “Environmental Product Declaration“ were published.
This certification seeks to quantify, certify and communi-
cate the impacts generated during the entire life cycle of a
supply relationship (in terms of CO2 emissions, water con-
sumption, impact on the soil, recycled material, etc.). This
process enables us to obtain a sector benchmark and de-
fine improvement plans with the suppliers involved (more
than 200 in 13 strategic product categories that account
for some 50% of the Group’s annual spending on supplies).
Furthermore, specific contractual clauses regarding sus-
tainability are also envisaged in all contracts for works, ser-
vices and supplies, including respect for and protection of
human rights and compliance with ethical and social ob-
ligations. The SPM system is designed to monitor vendor
services in terms of the quality, timeliness and sustainabil-
ity of contract execution.
We also 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
information initiatives with contractors on sustainability is-
sues, with specific regard to safeguarding health and safety.
220
220
Integrated Annual Report 2021
The circular economy
For Enel, the circular economy represents a strategic driver
in rethinking the existing development model by combining
innovation, competitiveness and sustainability in order to re-
spond to today’s great environmental and social challenges.
The Group’s vision is based on five pillars that act through
three main levers: design (i.e., planning, materials used), meth-
ods of use (i.e., the extension of useful life, sharing, product as
a service) and the closure of cycles (i.e., reuse, remanufactur-
ing, recycling).
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.
cycling
% reuse
p
% u
% recycle
% wast e
I
n
c
r
e
a
s
e
i
n
u
s
e
f
u
l
l
i
f
e
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.
% efficiency
% renewable
% reuse
% recycle
% not rene
w
a
ble
t e r
i a l s and energy
M a
CirculAbility
Model
Use
CIRCULAR
INPUTS
Model of production
and use based in
renewable inputs or
inputs from previous
life cycles (reuse and
recycling).
r
o
t
c
a
f
d
a
o
e in l
s
a
Incre
Increase in loa d f a c t o r
SHARING
PLATFORMS
Systems for joint
management by multiple
users of products,
goods or skills.
PRODUCT
AS SERVICE
A business model in which the customer
purchases a service for a specified
period of time, while the company retains
ownership of the product, maximizing
usage and useful life.
For the result to be effectively transformative, the circular
approach must inevitably embrace the entire value chain.
For this reason, it has been implemented in all the Group’s
activities, acting both through the Business Lines, as re-
gards technologies and business models, and through the
countries, as regards cross-sectoral synergies, collabora-
tions and ecosystems. Since 2018, a global project has been
operational with suppliers to measure the circularity of what
we purchase, reward the most virtuous and co-innovate to
rethink assets and products together. The generation and
distribution areas have been innovating in order to rethink
the value chain of new installed assets, such as smart me-
ters, photovoltaics and wind power, from a circular point
of view and leveraging their assets during operations. The
Global Energy and Commodity Management Business Line
is supporting this transition by extending its skills to the ar-
People centricity
221
221
eas of new materials and secondary raw materials. 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 customers to increase their cir-
cularity.
Since the initial stages of adopting a circular approach,
Enel has placed a strong focus on measuring the envi-
ronmental and economic benefits of circularity, with the
awareness that a model that exceeds and, ideally, elimi-
nates the consumption of non-renewable resources must
be measurable in order to be not only sustainable but also
economically competitive. Since the 2020 Capital Markets
Day, for example, the Group has introduced a new circular-
ity indicator for generation assets, supplementing existing
indicators on direct emissions. This additional indicator
photographs the evolution over the years of the consump-
tion of materials per MWh generated on a whole life basis,
measuring the consumption of materials throughout the
life cycle: from production to installation, to decommis-
sioning of generation assets.
A business model based on circularity requires maximum
collaboration between all key players: this is why Enel con-
siders it essential to open lines of communication and col-
laboration with those who share this vision, involving sup-
ply chains and promoting common initiatives (including
training) to safeguard natural resources and increase the
competitiveness of a country.
Finally, in the belief that the transition to a circular econ-
omy will generate multiple economic, social and environ-
mental benefits, we believe that Group finance can play a
key role in accelerating this transition by providing finan-
cial assistance to companies and projects that implement
circular business models, supporting the development of
the new innovative technologies necessary to enable the
functioning of new circular business models.
222
222
Integrated Annual Report 2021
Significant events in 2021
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
ceased operations at Unit I of the Bocamina coal-fired
power plant, which is located in the Chilean municipality
of Coronel. The 128 MW Unit I was disconnected three
years before the date set in Chile’s National Decarboni-
zation Plan. With this milestone, coupled with the closure
of Tarapacá coal plant on December 31, 2019 and the ex-
pected closure of Enel’s last coal facility in the country,
Bocamina’s Unit II, by May 2022, steady progress is being
made towards the decarbonization of Enel’s Chilean gen-
eration mix.
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 Enel SpA to “Baa1“ from the previous level of “Baa2“.
Among the rating drivers prompting the upgrade,
Moody’s cited:
• low earnings volatility driven by large scale and geo-
graphical diversification;
• stable earnings stemming from regulated networks
and contracted generation, which account for 80% of
the Group’s EBITDA;
• solid financial profile, with funds from operations/net
debt in excess of 20%.
Enel issues hybrid bonds
On February 25, 2021, the Board of Directors of Enel SpA
authorized the issue, by December 31, 2021, of one or
more non-convertible subordinated hybrid bonds, includ-
ing perpetual bonds, for up to a maximum of €3 billion.
The bonds are to be placed exclusively with European and
non-European institutional investors, including through
private placements. In execution of that resolution, on
March 4, 2021 Enel issued a new perpetual hybrid bond
of €2.25 billion.
Enel agrees 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 sus-
tainability-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 United Nations Sustainable Development Goal (SDG)
13 “Climate Action“ and in line with the Group’s Sustain-
ability-Linked Financing Framework, for which Vigeo Eiris
provided a second-party opinion. The facility replaces the
previous €10 billion revolving credit line obtained by Enel
and EFI in December 2017 and has a lower all-in cost than
the earlier facility.
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 integrating the non-conventional renewable energy
business of the Enel Group in Central and South Ameri-
ca (excluding Chile) into the listed Chilean subsidiary Enel
Américas SA, on March 15, 2021, Enel SpA, as previous-
ly announced to investors, launched a voluntary partial
public tender offer for Enel Américas common stock and
American Depositary Shares (ADSs) up to a maximum over-
all amount of 7,608,631,104 shares (including the shares
represented by ADSs), equal to 10% of the company’s out-
standing share capital at that date (the Offer). The Offer was
structured as a voluntary public tender offer in the United
States and a voluntary public tender offer in Chile. The Of-
fer period ran from March 15 to April 13, 2021. The Offer
was conditional upon the effectiveness of the merger of
EGP Américas SpA into Enel Américas SA, which occurred
on April 1, 2021. The total outlay of 1,065.2 billion Chilean
pesos (equal to around €1.3 billion, calculated at the ex-
change rate prevailing on April 15, 2021 of 847.87 Chilean
pesos for 1 euro) was funded through internally generat-
ed cash flows and existing borrowing capacity. Following
completion of the voluntary partial public tender offer and
the merger of EGP Américas, Enel holds about 82.3% of
Enel Américas’ currently outstanding share capital.
Significant events in 2021
223
223
Sale of 50% of Open Fiber
On April 30, 2021, the Board of Directors of Enel SpA re-
solved to initiate the procedures for the sale of 10% of the
share capital of Open Fiber SpA to CDP Equity SpA (CDPE),
subject to the simultaneous completion of the sale, exam-
ined and favorably evaluated by the Board of Directors of
Enel at its meeting of December 17, 2020, of 40% of Open
Fiber to Macquarie Asset Management as well as the pay-
ment to Open Fiber, in line with the commitments of the
shareholders already envisaged in the relative current in-
dustrial plan, of a capital injection totaling up to €194 mil-
lion, of which €97 million pertaining to Enel.
The contracts for the sale of the entire equity investment,
equal to 50% of the share capital, in Open Fiber, of which
40% to Macquarie Asset Management and 10% to CDPE,
were concluded on August 5, 2021. The contract for the
sale to Macquarie Asset Management of 40% of the share
capital of Open Fiber provided for a price of €2,120 mil-
lion, including the transfer of 80% of the Enel portion of
the shareholders’ loan granted to Open Fiber, including
accrued interest. The contract for the sale to CDPE of
10% of the share capital of Open Fiber provided in turn for
a price of €530 million, including the transfer to CDPE of
20% of the Enel portion of the shareholders’ loan grant-
ed to Open Fiber, including accrued interest. These con-
tracts also provided for the payment to Enel of the earn-
outs linked to future and uncertain events detailed in the
press releases of December 17, 2020 and April 30, 2021.
On December 3, 2021, Enel SpA finalized the sale of its
entire investment in Open Fiber SpA, equal to 50% of that
company’s share capital, to Macquarie Asset Manage-
ment and CDPE, following satisfaction of all the condi-
tions set out in the contracts agreed with them, 40% to
Macquarie Asset Management for about €2,199 million
and 10% to CDPE for about €534 million.
The total proceeds received by Enel therefore amounted
to about €2,733 million, and resulted in the recognition of
income at the Group level of around €1,763 million.
Enel updates its US commercial paper
program under SDG 13, the first of its
kind in the United States
On May 11, 2021, Enel, acting through its US subsidiary
Enel Finance America LLC, updated its $3 billion com-
mercial paper program established in 2019, expanding
it to $5 billion and connecting it to the UN Sustainable
Development Goal (SDG) 13 “Climate Action“. In line with
Enel’s Sustainability-Linked Financing Framework, the
program reflects the Enel Group’s objectives for reducing
direct greenhouse gas emissions for 2023 and 2030. The
program is part of Enel’s sustainable finance strategy, in
line with the objective to achieve a share of sustainable
224
224
Integrated Annual Report 2021
finance sources as a proportion of the Group’s total gross
debt equal to 48% in 2023 and more than 70% in 2030.
Enel successfully places a triple-tranche
€3.25 billion sustainability-linked bond
on the eurobond market, also launching a
tender offer for conventional bonds at the
same time
On June 8, 2021, Enel Finance International NV (EFI)
launched a triple-tranche sustainability-linked bond for
institutional investors on the eurobond market totaling
€3.25 billion. The bond is linked to the achievement of
Enel’s sustainable objective related to the reduction of di-
rect greenhouse gas emissions (Scope 1), contributing to
the United Nations Sustainable Development Goal (SDG)
13 “Climate Action“ and in line with the Group’s Sustain-
ability-Linked Financing Framework. At the same time,
EFI launched a non-binding voluntary tender offer for the
repurchase of four outstanding series of conventional
bonds, which was completed on June 15, 2021. Accord-
ingly, the company will purchase in cash conventional
euro-denominated bonds with a total nominal value of
€1,069,426,000. The success of the transaction will make
it possible to accelerate the Group’s goals for increasing
the ratio of sustainable finance sources as a proportion of
the Group’s total gross debt.
Enel Green Power starts commercial
operation of South America’s largest wind
farm, Lagoa dos Ventos in Brazil
On June 10, 2021, the Enel Group’s Brazilian renewable
energy subsidiary Enel Green Power Brasil Participações
Ltda began commercial operation of the 716 MW Lagoa
dos Ventos wind farm, the largest wind facility currently in
operation in South America and Enel Green Power’s larg-
est wind farm worldwide. The construction of the 716 MW
facility involved an investment of around 3 billion Brazilian
reals, equivalent to about €620 million. Enel is also invest-
ing around €360 million in a 396 MW wind project, which
will bring the total capacity of Lagoa dos Ventos to about
1.1 GW.
Purchase of treasury shares serving the
2021 Long-Term Incentive Plan and
completion of buyback program
On June 17, 2021, the Board of Directors of Enel SpA, im-
plementing the authorization granted by the Sharehold-
ers’ Meeting held on May 20, 2021, approved the launch
of a share buyback program for 1.62 million shares (the
Program), equivalent to about 0.016% of Enel’s share cap-
ital. The Program was introduced to serve the 2021 Long-
Term Incentive Plan for the management of Enel and/or
of its subsidiaries pursuant to Article 2359 of the Italian
Civil Code (2021 LTI Plan) which was also approved by
Enel’s Shareholders’ Meeting of May 20, 2021. In order to
implement the Program, the Company appointed an au-
thorized intermediary to make the purchases. In line with
Enel’s commitment to sustainable development, the pur-
chase price of the shares acquired by the intermediary
was linked to the achievement of the performance objec-
tive of the 2021 LTI Plan represented by the direct green-
house gas emissions (Scope 1 GHG) per kWh equivalent
produced by the Enel Group in 2023.
Over the course of the Program, a total of 1,620,000 Enel
shares (equal to 0.015934% of share capital) were ac-
quired at a volume-weighted average price of €7.8737
per share, for a total of €12,755,458.734. Considering the
treasury shares already owned, as of December 31, 2021
Enel held 4,889,152 treasury shares, equal to 0.048090%
of share capital.
First sustainability-linked EIB loan of €600
million to e-distribuzione
On July 1, 2021, e-distribuzione and the European Invest-
ment Bank (EIB) signed the first €300 million tranche of
a €600 million sustainability-linked loan agreement. The
transaction is the EIB’s first sustainability-linked loan,
linked to Enel’s ability to achieve its target for direct
greenhouse gas emissions (Scope 1), in line with the Unit-
ed Nations’ Sustainable Development Goal (SDG) 13 “Cli-
mate Action“ and with the Group’s Sustainability-Linked
Financing Framework.
Criminal proceeding against e-distribuzione
concerning an accident - Italy
On July 1, 2021, e-distribuzione SpA was notified of a pro-
ceeding against a number of its employees and managers
and e-distribuzione SpA itself pursuant to Legislative De-
cree 231/2001, initiated by the Public Prosecutor’s Office
of Taranto, following the accident that occurred on the
night between June 27 and 28, 2021 in which an employ-
ee of a contractor was harmed. The proceeding is in an
entirely initial phase and the identification of the persons
under investigation suspects is provisional and has been
done, in the investigation phase, to enable participation in
the non-repeatable technical assessment ordered by the
Public Prosecutor.
The December 15, 2021 report of the Public Prosecutor’s
technical expert has been filed and included in the case
documentation.
Enel places a $4 billion multi-tranche
sustainability-linked bond on the US and
international markets, further accelerating
the achievement of its sustainable finance
targets
On July 8, 2021, Enel Finance International NV (EFI) placed
a $4 billion multi-tranche sustainability-linked bond
linked to the achievement of Enel’s sustainability objec-
tive related to the reduction of direct greenhouse gas
emissions (Scope 1), contributing to the United Nations
Sustainable Development Goal (SDG) 13 “Climate Action“,
in line with the Group’s Sustainability-Linked Financing
Framework. The issue was intended to finance the re-
demption (which took place on July 20, 2021) of four con-
ventional EFI bonds with an aggregate nominal value of
$6 billion. The transaction is part of the Group’s strategy
to further accelerate the achievement of the Group’s tar-
gets for sustainable finance sources as a proportion of
the Group’s total gross debt.
Enel signs an agreement with ERG to
acquire 527 MW of hydro plants
On August 2, 2021, the subsidiary Enel Produzione SpA
signed an agreement for the acquisition of the entire
share capital of ERG Hydro Srl (wholly owned by ERG SpA),
which holds a portfolio of hydroelectric plants with an in-
stalled capacity of 527 MW and has an enterprise value of
€1,000 million, for €1,039 million.
On January 3, 2022, Enel Produzione SpA finalized the ac-
quisition of the entire share capital of ERG Hydro Srl from
ERG Power Generation SpA.
Enel Produzione paid around €1,039 million, to which was
added at closing an initial price adjustment of around €226
million concerning the mark-to-market valuation of certain
hedging derivatives of ERG Power Generation relating to
part of the electricity to be generated in the future by ERG
Hydro’s plants. The sale agreement also envisages a further
adjustment of the price in the coming months, which will
mainly be based on changes in ERG Hydro’s net working
capital and net financial position, as well as water reserves
in certain basins included in the sale. The plants owned by
ERG Hydro, located in the Umbria, Lazio, and Marche re-
gions, have an installed capacity of 527 MW and an aver-
age annual output of around 1.5 TWh.
Significant events in 2021
225
225
Enel successfully places a €3.5 billion
triple-tranche sustainability-linked bond
on the eurobond market, while launching
a tender offer for conventional bonds
denominated in US dollars
On September 21, 2021, Enel Finance International NV
(EFI) launched a €3.5 billion triple-tranche sustainabili-
ty-linked bond for institutional investors on the eurobond
market. The bond is linked to the achievement of Enel’s
sustainability objective related to the reduction of direct
greenhouse gas emissions (Scope 1), contributing to
the United Nations Sustainable Development Goal (SDG)
13 “Climate Action“, in line with the Group’s Sustainabil-
ity-Linked Financing Framework. At the same time, EFI
launched a non-binding voluntary tender offer for the
partial repurchase of three series of outstanding conven-
tional bonds, which was completed on October 4, 2021 in
the overall amount of about $1.47 billion, thereby accel-
erating the achievement of the Group’s targets for sus-
tainable finance sources as a proportion of the Group’s
total gross debt.
On October 5, 2021, following the results at the Early Ex-
piry Date of the Tender Offer launched on September 21,
EFI repurchased and canceled conventional bonds in the
total amount of $1.47 billion.
Enel unveils Gridspertise, the company
dedicated to the digital transformation of
power grids
On September 23, 2021, the Enel Group presented Grid-
spertise, wholly owned by Enel through the subsidiary
Enel Global Infrastructure and Networks. The company
will leverage Enel’s skills in the testing, assessment and
large-scale implementation of advanced technologies of
the operation of smart grids around the world to provide
DSOs with proven solutions.
Penalty proceedings initiated by the
Energy Directorate General of the
government of the Canary Islands - Spain
On October 6, 2021, the Directorate General of Energy
of the government of the Canary Islands (Energy Direc-
torate General) notified Edistribución Redes Digitales
SLU (EDRD) of three resolutions initiating an equal num-
ber of disciplinary proceedings (ES.AE.LP 006/2019ES,
AE.LP 007/2019ES and AE.LP 008/2019), respectively,
for alleged violations consisting in the unjustified refus-
al or alteration of the permit for connection to a point
on the grid and failure to comply with the operation and
proper functioning obligations of a contact service for
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complaints and accidents. On October 29, 2021, EDRD
filed written briefs in each proceeding. The penalties that
could be imposed in the three proceedings amount to
€11 million, €18 million and €28 million respectively.
On January 24, 2022, the Energy Directorate General noti-
fied EDRD of a new resolution, dated November 18, 2021,
with which a further disciplinary procedure was being in-
itiated for the alleged commission of five infringements
classified as continuous and serious and of two infringe-
ments classified as very serious and not continuous, in-
dicating a possible fine of up to €94 million. The alleged
infringements again refer to applications for access and
connection to the grid, the execution of connections, the
processing of customer requests, the information pro-
vided, the systems implemented and delays in execution.
At present, no penalties have been imposed.
Consent solicitation for hybrid bond
holders
On October 28, 2021, Enel SpA launched a consent so-
licitation aimed at holders of a non-convertible subordi-
nated hybrid bond issued by the Company in the amount
of €900 million, seeking to align its terms and conditions
with those of the non-convertible subordinated hybrid
perpetual bonds issued by Enel in 2020 and 2021.
On December 9, 2021, the Noteholders’ Meeting ap-
proved the proposed changes to the terms and condi-
tions of the bond. More specifically, the approved chang-
es establish, inter alia, that:
• the bond, initially issued with a specified long-term
maturity date, will become due and payable and hence
will have to be repaid by Enel only in the event of the
winding up or liquidation of the Company;
• the events of default previously envisaged in the terms
and conditions and additional documentation that
govern the bond are eliminated.
Funac and ICMS tax relief - Brazil
With Law 20416 of February 5, 2019, the state of Goiás
shortened from January 27, 2015 to April 24, 2012 the
period of operation of the Funac fund (established with
Law 17555 of January 20, 2012) and the tax benefit sys-
tem (established with Law 19473 of November 3, 2016)
that allowed Celg Distribuição SA (Celg-D) to obtain reim-
bursement of payments of certain amounts by offsetting
against payment obligations in respect of the ICMS - Im-
posto sobre Circulação de Mercadorias e Serviços (tax on
the circulation of goods and services).
On February 25, 2019, Celg-D appealed the provisions
of Law 20416 before the Court of the state of Goiás, fil-
ing a writ of mandamus and an accompanying petition
for a precautionary suspension, which was denied on a
preliminary basis on February 26, 2019. Celg-D appealed
this ruling and the Court of the state of Goiás allowed the
appeal on June 11, 2019. On October 1, 2019, the Court
of the state of Goiás issued an order revoking the pre-
cautionary measure previously granted in favor of Celg-D
and, accordingly, the effects of the law were restored as
from that date. Celg-D filed an appeal against this deci-
sion, claiming that the right to guarantee tax credits has
both a legal and contractual basis and that, therefore, the
actions that the state of Goiás has taken in order to fully
suspend the application of these laws are patently un-
founded. On October 2, 2019, the appeal filed by Celg-D
was denied. On November 21, 2019, Celg-D challenged
this decision before the Superior Tribunal de Justiça (STJ).
On February 27, 2020, the Tribunal de Justiça (TJ) declared
inadmissible the appeal by Celg-D, which on May 5, 2020
appealed this decision before the STJ. These proceedings
are under way. As part of the proceedings on the mer-
its (writ of mandamus), on July 14, 2021, the Court of the
state of Goiás raised a question of constitutional legiti-
macy before a specialized section of the same Court.
On October 5, 2021, the Public Prosecutor concluded
that the question of constitutionality was inadmissible.
On November 9, 2021, the specialized section of the TJ
accepted the position of the Public Prosecutor and re-
jected the constitutionality issue, ordering the referral of
the case to the trial judge.
It is important to note that the coverage of the Funac
fund is provided for in the 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 peti-
tion and a request for a precautionary suspension against
the state of Goiás to contest this law. On September 16,
2019, the Court of the state of Goiás denied the petition
for precautionary relief, citing the absence of any danger
in delay, a requirement for the granting of precautionary
relief. On September 26, 2019, Celg-D filed an appeal
(agravo de instrumento) before the Court of the state of
Goiás against the decision denying the precautionary
suspension, claiming that the repeal of the tax credit law
is unconstitutional to the extent that these credits were
established in accordance with applicable law and con-
stitute acquired rights. On September 7, 2020, the state
of Goiás submitted its reply to the precautionary petition
filed with the appeal. With measure issued at the hearing
of July 20, 2021, and subsequently confirmed on Septem-
ber 17, 2021, the Court of the state of Goiás denied the
precautionary relief requested by Celg-D.
Moreover, the Brazilian association of electricity distribu-
tion companies (ABRADEE) had filed an action for a ruling
on constitutionality with the Constitutional Court of Bra-
zil (Supremo Tribunal Federal) with regard to Laws 20416
and 20468. This was denied on June 3, 2020 with an in-
dividual Decision by the judge-rapporteur for lack of for-
mal requirements. On June 24, 2020, the ABRADEE filed
an appeal (agravo regimental) against that decision. On
September 21, 2020, the Supreme Court of Brazil, with-
out going into the merits of the case, rejected ABRADEE’s
appeal for formal reasons and the proceeding was con-
cluded. On October 15, 2020, ABRADEE filed an appeal
against this decision. On March 8, 2021, the Brazilian Su-
preme Court denied ABRADEE’s appeal and the decision
became final on April 5, 2021.
Closure of La Spezia coal-fired plant
On December 2, 2021, Enel received final authorization
from Italy’s Ministry for the Ecological Transition for the
definitive closure of the coal-fired plant at the “Eugenio
Montale“ thermoelectric power facility of La Spezia.
Hybrid bonds
On December 16, 2021, the Board of Directors of Enel
SpA authorized Enel to issue, by December 31, 2022, one
or more non-convertible subordinated hybrid bonds, in-
cluding perpetual bonds, in the maximum amount of up
to €3 billion. These bonds are to be placed exclusively
with European and non-European institutional investors,
including through private placements. The Board of Di-
rectors also revoked the previous resolution of February
25, 2021, concerning the issue of one or more bonds
by the Company, for the portion not yet implemented,
amounting to about €0.75 billion, without prejudice to all
effects arising from issues already carried out.
Criminal proceedings connected with
Pietrafitta plant - Italy
With regard to the Pietrafitta thermal generation plant,
the Perugia Public Prosecutor had started an investiga-
tion involving a number of officers of Enel Produzione
SpA, as well as certain third parties who are today owners
of the land adjacent to the plant – formerly Enel’s – on
which ash was found.
The alleged offenses are as follows: failure to restore the
site (Article 452-terdecies of the Italian Criminal Code) for
a number of areas affected by the spillage of ash pro-
duced up to the 1980s by the Pietrafitta power plant and
ash from other company plants, and other areas where
contamination with polychlorinated biphenyls (“PCBs“)
was found associated with decommissioned mining
equipment; environmental pollution (Article 452-bis of
the Criminal Code) connected with the PCB contamina-
Significant events in 2021
227
227
tion, with respect to which Enel Produzione SpA was also
charged with administrative liability pursuant to Legisla-
tive Decree 231/2001.
In the summer of 2019, Enel Produzione SpA filed a peti-
tion for dismissal, which was accepted by the prosecutor
for the crime of environmental pollution, with consequent
dismissal of the charge pursuant to Legislative Decree
231/2001.
A number of environmental associations filed an objec-
tion to the dismissal, and on February 21, 2020 a hearing
was held before the investigating magistrate, which end-
ed with dismissal of the charges (May 28, 2020), which,
in brief, accepted all of Enel’s defenses and confirmed
the dismissal of any other possible charges – even if not
brought by the Prosecutor’s Office – relating to the pos-
sible health effects caused by the presence of the ash.
Accordingly, the criminal proceedings are continuing
with sole regard to the crime of failure to restore the site,
with respect to which in December 2019 the Enel Pro-
duzione SpA employees presented an application for a
stay of proceedings with probation, consisting in the im-
plementation of a program agreed with the Prosecutor’s
Office for proportionate and fair restoration with respect
to the complaints filed against the defendants. The pro-
bation hearing was held on October 29, 2020, when the
investigating magistrate of the Court of Perugia granted
the request for probation. The hearing was then post-
poned to February 18, 2021, when the program proposed
by Enel Produzione was approved, setting a deadline of
nine months for its execution.
At a hearing on December 16, 2021, the judge, after con-
siderable discussion, verified the compliance of the pro-
gram and dismissed the charges as a consequence of the
positive outcome of the probationary activities.
EIB and Enel agree a €120 million
sustainability-linked loan for the energy
transition in Italy
On December 20, 2021, Enel and the European Invest-
ment Bank (EIB) agreed a sustainability-linked loan of €120
million to support the energy transition in Italy. The EIB
loan to Enel Italia is part of the bank’s sustainability-linked
loan program connected with Enel’s achievement of the
objective of reducing direct greenhouse gas emissions
(Scope 1), in line with the United Nations Sustainable De-
velopment Goal (SDG) 13 “Climate Action“ and with the
Group’s Sustainability-Linked Financing Framework.
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Integrated Annual Report 2021
Enel renews partnership with Cinven in
Ufinet Latam
On December 21, 2021, Enel SpA, acting through Enel X
International Srl, a wholly-owned subsidiary of Enel X Srl,
signed a new agreement with a holding company con-
trolled by Sixth Cinven Fund and a holding company con-
trolled by Seventh Cinven Fund – both funds managed by
the international private equity company Cinven – for the
indirect purchase, through a holding company, of about
79% of the capital of Ufinet Latam SLU by Sixth Cinven
Fund for €1,320 million and the simultaneous sale of
80.5% of the company’s capital to Seventh Cinven Fund
for around €1,240 million, in order to renew the existing
partnership in Ufinet. Enel X International will simulta-
neously receive some €140 million through the Ufinet’s
available reserves, a figure subject to potential adjust-
ments at closing.
Under this agreement, Enel X International will therefore
retain an indirect investment of 19.5% in Ufinet, while the
Seventh Cinven Fund will hold the remaining 80.5%.
Hydroelectric concessions - Italy
Italian regulations governing large-scale hydroelectric
concessions were most recently modified by the “Simpli-
fications Decree“ (Decree Law 135 of 2018 ratified with
Law 12 of February 11, 2019), which introduced a series
of innovations regarding the granting of such conces-
sions upon their expiry and the valorization of the assets
and works connected to them to be transferred to the
new concession holder. This legislation also introduced
a number of changes in the matter of concession fees,
establishing a fixed and variable component of fees, as
well as an obligation to provide free power to public bod-
ies (220 kWh of power for each kW of average nominal
capacity of the facilities covered by the concession). In
implementation of this national law and under specific
enabling authority, various regions (Lombardy, Piedmont,
Emilia-Romagna, Friuli-Venezia Giulia, the Province of
Trento, Calabria and Basilicata) enacted regional laws.
In the view of Enel Green Power Italy and Enel Produzione,
both the national law and the regional implementing leg-
islation violate Community principles and constitutional
principles such as property rights, the principle of legal
certainty, the principle of proportionality and legitimate
expectations and the freedom of enterprise. In particu-
lar, the rules do not expressly provide for the transfer of
the business unit from the outgoing to the successor
concession holder, and also establish inadequate criteria
for the valorization of the works to be transferred, which
threatens to create what is essentially a mechanism for
expropriation, in violation of constitutional principles.
The provision for the payment of the new dual-compo-
nent fee and the obligation to supply free electricity for
the existing holders of current concessions entails the
introduction in the concession relationships of an unex-
pected and unreasonable element of significant financial
imbalance, in clear violation of the principle of reasona-
bleness and proportionality of the fee that constitutional
case law has established must be respected in the event
that changes worsening the position of a party are intro-
duced in the context of long-term relationships.
Enel Green Power Italy and Enel Produzione challenged
the first implementing acts issued under the individu-
al regional laws and the subsequent payment notices
of fees and the monetization of free electricity supplies
before the competent judicial authorities (Regional Ad-
ministrative Court and Regional Water Resources Court)
asking that they be declared void and raising the question
of constitutional illegitimacy of both the national law and
the regional laws. The Piedmont Regional Administrative
Court with ruling no. 1085 of November 25, 2021, and
the Lombardy Regional Administrative Court with ruling
no. 2900 of December 23, 2021, in the cases brought by
Enel Green Power Italy against the respective regions,
deferred their jurisdiction in favor of the Superior Water
Resources Court, before which Enel Green Power Italy will
have to refile its dispute for the proceeding to continue.
The government challenged a number of the regional im-
plementing laws before the Constitutional Court, claiming
the violation of various constitutional principles.
Enel Green Power Italy participated in the aforementioned
proceedings concerning constitutional legitimacy under-
taken by the government before the Constitutional Court
against the Province of Trento and the Regions of Lom-
bardy, Piedmont and Basilicata.
The trade associations (Utilitalia and Elettricità Futura)
also presented briefs in the context of the proceedings
brought before the Constitutional Court by the govern-
ment. In addition, other sector operators have proposed
legal actions against the implementing measures issued
under the individual regional laws, requesting that they be
declared void.
With regard to the constitutionality proceeding before
the Constitutional Court against the Regional Law of
Lombardy, the Council of Ministers decided to abandon
its appeal of Lombardy Regional Law 5/2020, “as the
Lombardy Region, with a subsequent regional law, has
amended the provisions involved in the challenge that en-
able us to consider the complaint of illegitimacy to have
been superseded“. However, these changes did not affect
the constitutionality issues raised by Enel in its accom-
panying appeal. It is reasonable to believe that, following
the formal acceptance by the Region of the government’s
withdrawal of its action, the Constitutional Court will de-
clare the proceeding extinct, with the consequent forfei-
ture of Enel’s action as well.
Enel joins forces with Intesa Sanpaolo to
acquire Mooney and create a European
fintech company
On December 23, 2021, Enel SpA, acting through its
wholly-owned subsidiary Enel X Srl, and Intesa Sanpaolo
SpA, acting through its subsidiary Banca 5 SpA, signed an
agreement with Schumann Investments SA, a company
controlled by the international private equity fund CVC
Capital Partners Fund VI, to acquire 70% of Mooney Group
SpA, a fintech company operating in proximity banking
and payments. Specifically, Enel X will acquire 50% of
Mooney’s share capital, while Banca 5, which currently
holds a 30% stake in Mooney, will increase its interest to
50%, putting the payments company under the joint con-
trol of both parties.
The agreement, based on an enterprise value for 100% of
Mooney of €1,385 million, provides for Enel X to pay be-
tween €334 million and €361 million at closing. The price
consists of €220 million for the equity and a variable com-
ponent linked to a price adjustment mechanism at clos-
ing. At the same time, Intesa Sanpaolo will pay between
€88 million and €94 million at closing. That price consists
of €88 million for the equity and a variable component
linked to a price adjustment mechanism at closing.
Enel X Italia and tax credit fraud - Italy
As one part of its Vivi Meglio business, Enel X Italia sup-
plies energy efficiency devices to companies involved in
the energy upgrading and/or seismic improvement of
condominiums and/or individual dwellings.
In these activities, in conjunction with the service/prod-
uct supply contract, Enel X Italia (as assignee) signs a
framework agreement for the purchase of tax credits ac-
quired by a company (as assignor) – under the provisions
of the various types of building/energy upgrade incentive
available under law (such as the superbonus 110%, the fa-
cades bonus, the ecobonus, the sismabonus or the reno-
vation bonus) –for the redevelopment of buildings owned
by third parties (customers), with whom Enel X Italia has
no contractual relationship.
Beginning in October/November 2021, following requests
Significant events in 2021
229
229
for information from the Finance Police (Guardia di Finan-
za) regarding the alleged fraudulent nature of certain tax
credits, Enel X Italia performed an audit and found a num-
ber of irregularities in relation to some of the tax credits
acquired, promptly reporting them to the Public Prosecu-
tor’s Office of Rome.
In light of the findings of the audits and under the pro-
visions of the new regulations issued in November 2021
with the publication of Decree Law 157/2021 (the “An-
ti-fraud Decree“) containing urgent measures to com-
bat fraud in the sector of tax and economic benefits“),
the purchase of tax credits was temporarily suspended
before being resumed in December 2021 with the imple-
mentation of new oversight methods.
Between December 23, 2021 and January 31, 2022, as
part of a number of investigations into alleged fraud in
relation to legislation on energy redevelopment projects,
three preventive seizure orders were notified to Enel X
Italia (pursuant to Article 31 of the Code of Criminal Pro-
cedure), issued by the Public Prosecutors of the Courts
of Rome and Naples, in relation to tax credits purchased
by Enel X Italia from companies for some €45 million. The
seizures involved the imposition of a block on the “Credit
assignment platform“ portal of the Revenue Agency and
a corresponding reduction in the ceiling on offsetable tax
credits in the tax account of the company and the asso-
ciated assignees.
In consideration of the fact that at the time of the seizure
these credits had in turn already been assigned by Enel X
Italia to financial institutions, the precautionary measures
were not imposed directly against the company, which
however promptly informed the assignees of the sei-
zures, inviting them to comply with the provisions of the
judicial authorities. From the seizure orders notified it was
possible to ascertain that other operators in the sector
had also received such notices.
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Integrated Annual Report 2021
Regulatory and rate issues
The European regulatory framework
Sustainable finance (taxonomy)
The taxonomy is a classification system that establishes a
list of eco-sustainable assets to guide institutional inves-
tors in making informed decisions and then redirect capital
flows to those assets. The first delegated act establishing
the technical screening criteria for around 60 economic
activities, including the generation of electricity from pho-
tovoltaic, wind, hydroelectric and geothermal resources
and distribution, was published by the European Commis-
sion in June 2021 and entered force in January 2022.
On December 31, 2021, the Commission sent Member
States a draft complementary delegated act for consul-
tation, setting out a number of conditions for fossil gas
and nuclear power to be classified as transitional activities
aligned with the taxonomy. Some activities in which Enel is
engaged, such as retail and trading, are not covered by the
taxonomy so far.
Proposed legislation in consultation with financial
impacts in 2021
On July 14, 2021, the European Commission published the
“Fit for 55“ (FF55) package, which is a series of proposals
that seek to reduce net emissions within the European Un-
ion by 55% by 2030 compared with their 1990 levels.
Renewable Energy Directive (RED II)
Among the proposed changes to current EU energy legis-
lation, the revision of the Renewable Energy Directive plays
a leading role, given that a much larger share of renewable
energy sources in the energy mix of the Member States
will also be necessary to achieve the new climate objec-
tives. The European Commission proposal establishes a
framework for the deployment of renewables in all sectors
of the economy, with particular attention to sectors where
progress has been slow (transport, buildings and industry).
Among the key points of the revision is an increase in the
minimum binding share of renewables in final energy con-
sumption in the EU to 40% by 2030, effectively doubling
the share of RES in the energy mix over the course of just
one decade (2021-2030). This 40% target is significantly
higher than that agreed in the previous revision of the di-
rective in 2018 (32%) and is supported by higher EU and
national targets, including: a new target of 49% for re-
newable energy used in European buildings; a mandatory
minimum increase in RES in industry of 1.1% per year; the
transformation into a binding target of the existing goal of
increasing the use of RES in heating and cooling by 1.1%
per year; the introduction of new minimum targets for the
use of green hydrogen in industry and transport (50% and
2.6% per year respectively).
Finally, another noteworthy aspect of the European Com-
mission proposal would be the creation of a new cred-
it mechanism aimed at promoting the use of renewable
electricity in transport and a commitment to remove barri-
ers in the authorization process for new RES plants.
EU Emissions Trading System (ETS)
The European Commission is also proposing a reform of
the EU ETS in order to strengthen it and increase its ambi-
tion in line with the EU climate commitments set out in the
FF55 package. The proposed revision confirms the central
role of the EU ETS as one of the main climate policy tools of
the European Union, increasing the resilience of the mar-
ket to economic shocks. A greater contribution to decar-
bonization is also requested from the sectors already cov-
ered by the EU ETS, while a proposal to extend the mech-
anism to new sectors (e.g., maritime, hydrogen production
via electrolyzers) has also been put out for consultation, as
has the possibility of creating a separate ETS market for
the road transport and buildings sectors.
Although the EU ETS reform is still in consultation, its pub-
lication alone has had an impact on supply and demand in
the ETS market, having changed the expectations of oper-
ators and therefore prices on the market itself.
Regulatory and rate issues
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231
Carbon Border Adjustment Mechanism
(CBAM)
Energy Taxation Directive (ETD)
The European Commission believes
that Directive
2003/96/EC is now obsolete and does not adequately
reflect the revised EU climate and energy policy. The pro-
posed revision of Directive 2003/96/EC addresses two
main areas of reform: the provision of a new structure for
the tax rates and the broadening of the tax base with the
abolition of some subsidies.
• The proposal delineates a new structure of minimum
tax rates based on the actual energy content and en-
vironmental performance of fuels and electricity, rath-
er than volume as is currently the case. The minimum
rates will be expressed in €/GJ for each product, also in
order to allow a direct comparison between fuels and
between emerging uses of electricity. In particular, the
proposal groups energy products and electricity into
general categories, which are classified according to
energy content and environmental performance: the
new system will therefore ensure that the most pollut-
ing fuels are taxed at the highest rate. Member States
will have to ensure that this ranking is replicated at the
national level.
• Under this new structure, conventional fossil fuels (e.g.,
diesel and gasoline) and unsustainable biofuels will be
subject to the higher minimum rate of €10.75/GJ when
used as motor fuel and €0.9/GJ when used for heating.
• To take account of their potential role in supporting de-
carbonization in the medium term, despite being fossil
based, fuels such as natural gas, LPG and non-renew-
able fuels of non-biological origin shall be subject to a
minimum rate of €7.17/GJ when used as motor fuel and
€0.6/GJ when used for heating for a transitional peri-
od of 10 years before being taxed at the same rate as
conventional fossil fuels. In order to reflect the potential
of sustainable but non-advanced biofuels in supporting
decarbonization, they would be subject to tax at half the
reference rate, i.e., a minimum of €5.38/GJ when used as
motor fuel and €0.45/GJ when used for heating.
• The lowest minimum tax rate (€0.15/GJ) will apply to
electricity (regardless of use), sustainable biofuels and
biogas and renewable fuels of non-biological origin
(such as, for example, renewable hydrogen). Low-car-
bon hydrogen and related fuels will also benefit from
the same rate for a transitional period of 10 years. The
rate applicable to this group is set significantly below
the reference rate, as electricity and these fuels can
significantly support the EU’s clean energy transition
towards achieving the EU Green Deal targets and, ulti-
mately, climate neutrality by 2050.
One of the most innovative elements the FF55 package,
one that is likely to spark debate, is the CBAM, a tariff to
be applied to imported goods produced in countries with
lower environmental standards than those in the EU. The
objective of the CBAM mechanism is to reduce the risk of
carbon leakage. This is to ensure that imported products
are treated no less favorably than domestic products man-
ufactured in facilities subject to the EU ETS mechanism. As
installations covered by the EU ETS are subject to a carbon
price assessed on the basis of their actual emissions, im-
ported products included in the CBAM scope should also
be assessed on the basis of their actual greenhouse gas
emissions. However, in order to enable companies to adapt
to this system, the proposal envisages a transitional pe-
riod without financial adjustment. This mechanism will be
phased in and would initially apply only to a select number
of goods at high risk of carbon leakage: iron and steel, ce-
ment, fertilizers, aluminum and electricity generation.
Energy efficiency and buildings
The proposed revision of the Energy Efficiency Directive
aims to establish more ambitious binding European tar-
gets for 2030 (+36% compared with the previous +32.5%),
in line with the objective of reducing greenhouse gases by
55% by 2030. The directive introduces a system for calcu-
lating the indicative contributions that each Member State
must establish in order to achieve the EU target and, among
the measures, proposes a doubling of the annual energy
saving obligation for end uses. The public sector is called
upon to make an even larger energy saving contribution,
equal to 1.7% per year, in addition to the 3% renovation ob-
ligation for the public building stock. The directive impos-
es measures on the Member States designed to alleviate
energy poverty, increasing energy efficiency measures for
vulnerable customers through ad hoc financing.
In December 2021, the European Commission published
the proposed revision of the directive on the energy per-
formance of buildings, aimed at reducing their energy con-
sumption in order to achieve zero emissions by 2050 for
buildings as well. The measures seek in particular to increase
the rate of renovation for buildings with the worst energy
performance by introducing minimum performance stand-
ards and strengthening energy performance certificates.
The targets also envisage the achievement of progressively
higher standards starting from 2030 for the entire residen-
tial sector. In order to beef up measures for electric mobility
as well, the changes envisage measures to increase charg-
ing points and pre-cabling in the residential sector.
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Sustainable mobility
The main initiatives with a focus on the transport sector
concern:
• a proposal to revise the regulation on CO2 emission per-
formance levels for new passenger cars and light com-
mercial vehicles, requiring passenger car emissions to
decrease by 55% and van emissions to fall by 50% by
2030 compared with 2021 levels and by 100% by 2035;
• a proposed revision of the alternative fuels infrastruc-
ture directive to give drivers access to a reliable network
across Europe for recharging or refueling vehicles. The
proposal requires Member States to increase charg-
ing capacity in line with zero-emission passenger car
registrations and to install public, interoperable and
user-friendly charging points at regular intervals along
major European motorway corridors. In addition, objec-
tives are set for the development of the infrastructure
necessary to supply electricity to ships and airplanes
while they are in ports and airports respectively;
• in addition to these measures, the European Commis-
sion’s proposal for two new legislative initiatives, “ReFu-
elEU Aviation“ and “FuelEU Maritime“, targeted at reduc-
ing greenhouse gas emissions for aviation and maritime
transport, setting increasingly stringent emission limits
for ships and planes, and envisaging measures to pro-
mote renewable or low-carbon fuels.
To complement the measures contained in the “Fit for 55“
package, in December 2021 the European Commission
completed the issue of a new package of transport ini-
tiatives. The main proposals contained in the December
package concern:
• a revision of the TEN-T regulation in which, among
other aspects, the role of zero-emission transport and
the related infrastructure is reinforced as one of the
priorities for the completion of the European trans-
port network and the structure of the TEN-T network
is modified;
• the issue of the “EU Urban Mobility Framework“ com-
munication encouraging the transition towards ze-
ro-emission mobility at the local level (cities and re-
gions), with the adoption of Sustainable Urban Mobility
Plans (SUMPs) and Sustainable Urban Logistics Plans
(SULPs), as well as facilitating access to and sharing of
mobility data to support decision-making processes
and establishing new funding programs for new pro-
jects (such as Horizon Europe 2021-2023).
At the end of 2021, the proposals in the first and second
packages are being discussed both within the European
Council and the European Parliament. Talks are expected
to continue throughout much of 2022.
Decarbonization package for the
hydrogen and gas market
On December 15, 2021, the European Commission pub-
lished proposals to decarbonize the gas market through
the uptake of renewable and low-carbon gases, including
hydrogen.
In particular, the proposal sets out a new regulatory frame-
work for the hydrogen sector, including infrastructure, and
standards for the certification of low-carbon gases that
ensure a 70% reduction in greenhouse gas emissions.
Among the salient points of the package are rules on ver-
tical and horizontal unbundling and on third-party access
in the hydrogen sector, with less stringent provisions until
2030 and exemptions for existing and new geographically
confined hydrogen networks. The gas package provides
for separate remuneration mechanisms for gas and hy-
drogen infrastructures, but allows financial transfers to
develop the hydrogen network and tariff discounts. Finally,
under the provisions of the gas package, 5% blending of
hydrogen and natural gas should be accepted by TSOs at
the border.
Digital technology
During 2021, in addition to the publication of the com-
munication “European digital decade: digital targets for
2030“, which illustrates the objectives and methods of Eu-
rope’s digital transformation by 2030, the implementation
activities for the European Green Deal and the strategies
for data and artificial intelligence published by the Euro-
pean Commission in 2019 and 2020, respectively, guided
the debate on the digitization and use of data. A number
of legislative and non-legislative initiatives have been pro-
posed with the aim of making Europe digitally sovereign
and creating a fair and competitive digital economy. The
proposed measures range from the concept of data sov-
ereignty to the creation of a single market for data and in-
itiatives involving artificial intelligence and cyber security.
The main proposals regarded:
• the artificial intelligence regulation, published in April
2021, as the world’s first attempt to govern artificial in-
telligence (AI). The European Commission proposes an
ex-ante list of “AI“ products considered to be high risk,
such as the safety components of critical infrastruc-
tures, which must undergo testing before obtaining
certification;
• a proposed EU Data Act governing data access and in-
teroperability aimed at establishing a platform for each
country (interoperable with the others) in which con-
sumers can easily share energy data with third parties;
Regulatory and rate issues
233
233
• a proposed Digital Services Act, which would establish a
common set of obligations and responsibilities of inter-
mediaries within the single market regarding the offer
of cross-border digital services, while ensuring a high
level of protection for all users, regardless of where they
reside in the EU.
Furthermore, during the course of 2021 discussion re-
sumed on a proposal to revise the e-privacy regulation,
published by the European Commission in 2017. Negotia-
tions between institutions began in February 2021 and are
still ongoing.
Batteries
In December 2020, the European Commission present-
ed a proposal to revise the regulation on batteries and
waste batteries, which would replace the current direc-
State aid
Revision of State aid guidelines
On January 7, 2021, the response to the public consultation
on the State aid guidelines for climate, environment and
energy (CEEAG) was published.
On June 7, the European Commission published a draft
revision of the CEEAG, which was issued for a final pub-
lic consultation lasting until August 2. The CEEAG are of
considerable importance for the energy sector and for the
Enel Group, as they will guide investment support for de-
carbonization in the coming years. The draft text includes
a new section dedicated to aid for the reduction of green-
house gas emissions, including aid for the production of
renewable and low-carbon energy, aid for energy efficien-
cy, including high-efficiency cogeneration, aid for hydro-
gen, aid for storage and batteries and aid for the reduction
or prevention of emissions from industrial processes. An
entire chapter has been dedicated to sustainable mobility,
which governs aid for electric mobility and charging infra-
structure, including the maritime sector. Energy efficiency
measures for buildings are also regulated, including bat-
teries and charging of electric vehicles. The proposed rules
also officially recognize that financing for natural or legal
monopoly power grids does not represent State aid. Final-
ly, aid to nuclear technologies and fossil fuels are excluded
from the scope of the guidelines. The document prepared
and issued on August 2 incorporated the new proposals
of the European Commission, underscoring the need to
explicitly include all types of storage, including stand-alone
systems, among the technologies allowed in the section
dedicated to aid for the reduction of greenhouse gas
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Integrated Annual Report 2021
tive. The proposal pursues three objectives: to enhance
the operation of the internal market (including products,
processes, waste batteries and recycled materials) by en-
suring a level playing field through a common set of rules;
to promote the circular economy; and to reduce environ-
mental and social impacts at all stages of the battery life
cycle. Key elements of the proposal include mandatory
requirements for all batteries placed on the EU market,
requirements for end-of-life management of batteries, as
well as new collection targets for portable waste batteries
and requirements to facilitate the reuse of industrial ve-
hicle and electric vehicle batteries as stationary storage
batteries. Throughout 2021, both the European Council
and the European Parliament continued the analysis of
the proposal: once their positions have been finalized, in-
formal negotiations (trilogues) will begin on reaching an
agreement.
emissions. This suggestion was successfully incorporated
in the final text of the guidelines published on December
21, 2021, which entered force on January 1, 2022.
On October 6, the European Commission published the
draft revision of the General Block Exemption Regulation
(GBER) with important changes to the sections relating to
climate, environmental protection and energy, including an
update of the notification thresholds. The GBER defines
specific categories of State aid that, under certain condi-
tions, are compatible with the Treaty on the Functioning of
the European Union (TFEU) and exempts these categories
from the obligation of prior notification to the Commission
and its approval. The draft regulation proposes to expand
the scope for Member States to finance different types of
green projects, such as those to reduce CO2 emissions,
sustainable mobility and charging infrastructure. It also
introduces new green conditions that large energy-inten-
sive businesses must meet to receive aid in the form of re-
duced tax rates, as well as provisions on storage, hydrogen
and building renovation projects that improve their energy
performance and renewable energy communities. At the
same time, the European Commission launched a public
consultation ending on December 8, the date by which the
contribution of the Enel Group was submitted. The doc-
ument prepared commented positively on the revision of
the GBER but called for a more ambitious commitment to
storage, proposing to include all types and suggesting that
Member States be given flexibility for measures to support
the electrification of the system.
On November 25, the European Commission adopted
the revised rules on State aid in favor of major important
projects of common European interest (IPCEI), which are
to enter force from January 1, 2022. The communication
sets out the criteria for the Commission’s evaluation of the
aid that Member States grant to cross-border IPCEIs that
remedy market failures and enable cutting-edge innova-
tions in key sectors and investments in technologies and
infrastructures, with positive spillovers for the entire EU
economy.
On December 2 for Italy and December 20 for Romania,
the European Commission approved the map for granting
regional aid from January 1, 2022 to December 31, 2027
within the framework of the revised regional aid guidelines.
Cases of State aid
In June, the European Commission approved State aid
schemes financed by the Recovery and Resilience Facility
(RRF) for a number of Member States. Italy’s €191.5 bil-
lion recovery and resilience plan (of which €68.9 billion in
grants and €122.6 billion in loans) will allocate 37% of to-
tal spending to support measures for climate objectives,
including large-scale restructuring investments aimed at
improving the energy efficiency of buildings, interven-
tions to promote the use of renewable energy sources,
including hydrogen, and the reduction of greenhouse gas
emissions from transport, with investments in sustainable
urban mobility. Plans were also approved for Spain (€69.5
billion), Greece (€30.5 billion) and Romania (€14.2 billion).
On July 9, the European Commission approved Italian
plans to partially compensate energy-intensive business-
es for higher electricity prices resulting from indirect
costs of emissions allowances under the EU Emissions
Trading System (ETS). The scheme will cover the indirect
costs of emissions incurred in the 2020-2030 period,
with a provisional budget of about €1.49 billion.
On November 27, the European Commission approved
a €2.27 billion Greek aid scheme to support renewable
electricity generation and high-efficiency cogeneration.
On December 9, the European Commission approved
a €3 billion scheme under the Spanish RRF to support
research, development, innovation, environmental pro-
tection and energy efficiency in the automotive industry
value chain.
On December 21, the European Commission approved
a €1.4 billion scheme for the development of renewable
energy in the non-interconnected islands of Greece, in
particular for hybrid power plants that generate and store
both solar and wind power.
Regulatory and rate issues
235
235
Regulatory framework by Business Line
Thermal Generation and Trading
Italy
Generation and the wholesale market
For 2021, the Brindisi Sud, Sulcis, Portoferraio and As-
semini plants were declared eligible for the cost reim-
bursement scheme. The Sulcis, Portoferraio and Assemini
plants were declared eligible for the cost reimbursement
scheme for 2022.
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 reim-
bursement for all years in which they are declared essen-
tial, including 2021 and 2022. Admission to the cost reim-
bursement scheme guarantees coverage of the operat-
ing costs of the aforementioned plants, including a return
on capital invested. Generation cost reimbursement, net
of plant revenue, is granted by the Regulatory Authority
for Energy, Networks and the Environment (ARERA) with
measures authorizing payments on account and a final
balance payment based on applications submitted by op-
erators.
For 2021 and 2022, the remainder of essential capacity
was contracted under alternative contracts which pro-
vide 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
ARERA for a fixed premium.
With Resolution no. 43/2021/R/eel ARERA rejected the
requests submitted by Enel Produzione for the recalcula-
tion of the notional revenue for the costs of compliance
with the ETS for the Brindisi Sud plant for years from 2017
to 2020, with a consequent reduction in the reimburse-
ments due to the plant for those years. With the subse-
quent Resolution no. 67/2021/R/eel ARERA redetermined
the payment on account for the Brindisi reimbursement
valid for 2019 in order to align the calculation criteria of
the notional revenue with Resolution no. 43/2021/R/eel.
In April 2021, Enel Produzione filed an appeal against Res-
olution no. 43/2021/R/eel before the Lombardy Region-
al Administrative Court, for which the ruling is currently
pending. In December 2021, a supplementary appeal was
filed against Resolution no. 476/2021/R/eel, which ap-
plied the same criteria as those adopted in Resolution no.
43/2021/R/eel to determine the payment on account for
the Brindisi Sud plant reimbursement for 2020.
On June 28, 2019, the Minister for Economic Develop-
ment issued a decree approving the definitive rules gov-
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Integrated Annual Report 2021
erning the capacity remuneration mechanism (the ca-
pacity market). 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 operators and a sectoral trade association
contested the decree and the results of the two auctions
before the Lombardy Regional Administrative Court. Two
operators also challenged the European Commission
decision approving the Italian mechanism before the EU
Court, for which the ruling is currently pending. In April
2021, the Lombardy Regional Administrative Court sus-
pended its ruling pending a ruling of the EU court, having
found grounds to request a preliminary finding concern-
ing those proceedings.
ARERA has confirmed the transitional capacity payment
mechanism for 2020 and 2021 in order to ensure conti-
nuity with the new capacity market, which will produce a
financial impact starting from 2022.
With the Decree of the Minister for the Ecological Transi-
tion of October 28, 2021, the new capacity market regu-
lation was approved. It will apply to auctions with delivery
from 2024. In execution of the decree, Terna has launched
the auction procedures for 2024, which will take place on
February 21, 2022. Pursuant to the decree, the results of
the 2024 auction will be used as the basis for assessing
whether to hold an auction for the 2025 delivery year.
Legislative Decree 210 of 8 November 2021 transposing
Directive (EU) 2019/944 on common rules for the internal
market for electricity provided for the establishment of a
forward mechanism for Terna to use competitive tenders
to procure new electricity storage systems to support the
integration of renewables and grid security.
The amount of capacity to be procured will be deter-
mined on the basis of a development program for new
storage systems defined on the basis of a proposal devel-
oped by Terna in coordination with distributors.
The procured storage capacity will be made available to
market operators through a centralized platform man-
aged by the Energy Markets Operator (EMO).
The procurement mechanism will be approved by the
Minister for the Ecological Transition on the basis of a
proposal formulated by the grid operator drawn up in
accordance with criteria established by ARERA. Imple-
mentation of the measure is subject to approval by the
European Commission.
At the end of November 2021, Legislative Decree
199/2021 implementing Directive 2018/2001 on the pro-
motion of the use of energy from renewable sources was
published in the Gazzetta Ufficiale. The decree also con-
tains provisions on the configuration of self-consumption
and renewable energy communities, which are already
governed in Italy by the experimental regulations intro-
duced with Law 8/2020 (ratifying Decree Law 162/2019,
the “Milleproroghe“ omnibus extension act) and subse-
quent implementation measures (ARERA Resolution no.
318/2020/R/eel and Ministerial Decree of September 16,
2020 of the Ministry for Economic Development). Legis-
lative Decree 199/2021 establishes that within 90 days
of the date of entry into force of the decree ARERA shall
adopt one or more measures specifying the implementa-
tion rules and, within 180 days, the Ministry for the Eco-
logical Transition shall update the incentive mechanisms
for renewable resource plants included in the collective
self-consumption arrangements or renewable energy
communities referred to in the experimental regulations.
The latter shall continue to apply pending the issue of
these measures.
Iberia
Urgent measures to mitigate the impact of rising
natural gas prices on the retail gas and electricity
markets, consumer protection and the introduction of
transparency in the wholesale and retail electricity and
natural gas markets
On September 16, 2021, Royal Decree Law (RDL) 17/2021
of September 14 containing urgent measures to mitigate
the impact of the increase in natural gas prices on the
retail gas and electricity markets came into force. The
legislation requires a reduction in the remuneration re-
ceived for electricity generated by non-emitting plants
that are in peninsular areas and do not receive regulated
remuneration. This reduction is a function of the monthly
gas price and will be in effect until March 31, 2022.
RDL 23/2021 of October 26, 2021, containing urgent
measures in the field of energy for the protection of
consumers and the introduction of transparency in the
wholesale and retail markets for electricity and natural
gas, clarified that the power generated by the plants
concerned already sold using forward hedging instru-
ments with a fixed price will be excluded.
Renewable energy auctions
January 20, 2021 saw the first renewable energy auction
held as part of the new remuneration scheme envisaged
under Royal Decree 960/2020, based on the provisions
of Order TED/1161/2020. A total of 2,993 MW were
awarded, of which 1,995 MW of photovoltaic power and
998 MW of wind power at an average price of €24.73/
MWh.
The second renewable energy auction took place on
October 19, 2021, held under the economic regime for
renewable energy. A total of 3,124 MW were awarded, of
which 2,258 MW of wind power and 866 MW of photo-
voltaic power at an average price of €30.59/MWh.
On December 30, 2021, the procedure for adjudicating
the third auction, scheduled for April 6, 2022, began for
500 MW of solar thermoelectric, biomass, photovoltaic
and other technologies, and a further 140 MW for small-
scale photovoltaic projects with local participation.
Proposal for a ministerial decree on the price of natural
gas in the Canary Islands and Melilla
In November 2021, work began on a proposal for an or-
der approving the price of natural gas for the genera-
tion of electricity in the Canary Islands and Melilla. It es-
tablishes the reference unit values of the remuneration
scheme and addresses a number of technical issues. The
order will allow the use of natural gas in the Non-Penin-
sular Territories of the Canary Islands and Melilla and sets
the price to be paid for the generation units of these ter-
ritories for the use of this fuel.
Order to revise fuel prices in Non-Peninsular
Territories (NPT)
Order TEC/1260/2019 of December 26, 2019 revised the
technical and financial parameters for the remunera-
tion of generation units in the electrical systems of the
Non-Peninsular Territories (NPT) for the second regula-
tory period (2020-2025). With regard to fuel prices, the
order established that within three months the prices
of energy products and logistics would be revised with
a ministerial order with effect from January 1, 2020. On
August 7, 2020, Order TED/776/2020 of August 4 was
published in Spain’s Official Journal, revising these prices.
On November 16, 2021 the Supreme Court issued ruling
no. 1337/2021 on the appeal lodged by Endesa against
this order, requesting the publication of a new ministe-
rial order by the government (Ministry for the Ecological
Transition and the Demographic Challenge) to regulate
fuel auctions.
Proposed capacity market ordinance
In April 2021, the Ministry for the Ecological Transition
and the Demographic Challenge (MITECO) began the
preparation of a proposal for an order creating a capacity
market in the peninsular electrical system. The propos-
al provides for an auction system (“pay as bid“) that will
be used to auction the fixed power requirements (MW)
identified in a demand coverage analysis performed by
the system operator, Red Eléctrica de España SAU (REE).
The auction system is open to existing and new genera-
Regulatory and rate issues
237
237
tion, storage and demand management facilities, setting
certain requirements regarding the maximum CO2 emis-
sion rights of participating plants.
The draft order also governs aspects relating to the var-
ious types of auction envisaged, the rights and obliga-
tions of the capacity service providers, including their
remuneration and the penalties applicable in the event
of non-compliance by the providers.
• a number of changes are introduced in the rules gov-
erning access and connection permits, extending the
deadlines provided for in Royal Decree Law 23/2021
in order to facilitate the development of projects and
allowing the voluntary restitution of access and con-
nection permits obtained or in force before the entry
into force of this royal decree law, with the return of
guarantees.
Royal Decree Law 12/2021 of June 24 adopting urgent
measures in the field of energy taxation
On June 25, 2021, the Royal Decree Law 12/2021 of June
24 was published in Spain’s Official Journal. It adopted
urgent measures in tax matters in order to reduce the
impact of the increase in the price of electricity on cus-
tomers. In particular, the legislation contains the follow-
ing measures:
• a reduction of value added tax from 21% to 10%, effec-
tive until 31 December 2021, for the supply of electric-
ity with contracted power equal to or less than 10 kW,
provided that the arithmetic average price of the daily
market of the last calendar month preceding the last
day of the billing period exceeds €45/MWh, and in any
case for the beneficiaries of the Social Bonus who are
seriously vulnerable or at risk of social exclusion. This
VAT reduction was subsequently extended until April
30, 2022 with Royal Decree Law 29/2021 of December
21, which adopts urgent measures in the energy field
for the promotion of electric mobility, self-consump-
tion and the expansion of renewable energy;
• a temporary suspension of the tax on the value of
electricity generation during the 3rd Quarter of 2021,
which was extended until December 31, 2021 with
Royal Decree 17/2021 of September 14 and then until
March 31, 2022 with Royal Decree Law 29/2021.
The royal decree law also establishes that if a surplus of
income is generated by the electricity sector in 2020, it
will be used in its entirety to cover the temporary imbal-
ances in the 2021 tax year.
Royal Decree Law 29/2021 of December 21 adopting
urgent measures in the energy field for the promotion
of electric mobility, self-consumption and the
expansion of renewable energy
On December 22, 2021, Royal Decree Law 29/2021 was
published in Spain’s Official Journal. It adopts urgent
measures in the energy field for the promotion of elec-
tric mobility, self-consumption and the expansion of re-
newable energy. Among other provisions, the legislation
envisages the following measures:
• with regard to taxation, the reduction of the special
excise duty on electricity and value added tax is ex-
tended until April 30, 2022, as noted above, and the
suspension of the tax on the value of electricity gen-
eration is extended until March 31, 2022;
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Integrated Annual Report 2021
Europe
Russia
Electricity and capacity markets
Government Decree 1977 of December 1, 2020 provid-
ed for an indexation rate of 11.4% for regulated capacity
rates for generators that begin selling capacity through
long-term capacity auctions (KOM) from January 1, 2021
after the termination of the long-term capacity supply
contract period (DPM).
The Federal Antitrust Service defined the regulated rates
for 2021 (Order 1227/20 of December 17, 2020). More
specifically, the rates for the 1st Half of 2021 were not
changed from their level in the 2nd Half of 2020. Con-
versely, the rates for Enel Russia plants in the 2nd Half of
2021 were modified as follows: KGRES: electricity +2.9%,
capacity +4.4%; NGRES: electricity +2.5%, capacity +28%;
SGRES: electricity +1.8%, capacity +3.4%
The Federal Antitrust Service has set regulated rates for
2022, with an increase of 3% compared with the 2nd Half
of 2021.
Latin America
Chile
Rate revision - Introduction of the temporary
electricity price stabilization mechanism
On November 2, 2019, Law 21.185 of the Ministry of En-
ergy was published, introducing a temporary electricity
price stabilization mechanism for customers subject to
rate regulation. Consequently, the prices to be applied
to regulated customers in the 2nd Half of 2019 were
lowered to those applied in the 1st Half of 2019 (Decree
20T/2018) and were defined as “stabilized prices for reg-
ulated customers“ (PEC).
Between January 1, 2021 and the expiry of this mecha-
nism, the prices to be applied will be those set every six
months on the basis of Article 158 of the Electricity Law
and may not exceed the level of the PECs noted above
adjusted for consumer price inflation.
Any differences between the amount invoiced by ap-
plying the stabilization mechanism and the theoretical
amount that could be invoiced considering the price
that would have been applied in accordance with the
contractual terms and conditions agreed with the vari-
ous electricity distribution companies will be accounted
for as receivables for invoices to be issued to generation
companies up to a maximum of $1,350 million until 2023.
These differences will be recognized in US dollars and will
not accrue interest until the end of 2025. Any imbalances
in favor of the generation companies must be recovered
no later than December 31, 2027.
Argentina
Rate revision - New resolutions
The generation companies sell the energy they produce
and their capacity on the market at a price set by the
market regulator, CAMMESA, which is also responsible for
any subsequent rate adjustments or discounting.
The latest rate adjustment establishing new remunera-
tion for generation companies was established with Res-
olution no. 440 published on May 21, 2021, which resulted
in an increase of 29%. This rate adjustment was applied
retroactively starting from February 2021, when the rates
established with Resolution no. 31 of 2020 were applied.
On November 2, 2021, Resolution no. 1.037/21 was pub-
lished, establishing the application of another tax in ad-
dition to the provisions of Resolution no. 440 for invoices
issued by generation companies that export energy pro-
duced using thermal and hydro power plant technologies
to neighboring interconnected countries for all services
performed in the period between September 1, 2021 and
February 28, 2022.
The revenue raised collected by CAMMESA with this new
tax will be allocated to a stabilization fund for the whole-
sale electricity market, whose ultimate purpose will be to
finance new energy infrastructure and which will be allo-
cated on the basis of a decision of the Energy Secretariat.
Enel Green Power
Italy
The Ministerial Decree of July 4, 2019 provided for com-
petitive procedures based on Dutch auctions (selection
of projects on the basis of price) and registers (selection
of projects on the basis of an environmental criterion),
depending on the installed capacity and by technology
groups, including photovoltaic systems. In particular, up
to October 2021, seven procedures will be held with:
• Dutch auctions for plants with a capacity of more than
1 MW;
• registers for plants with a capacity of less than 1 MW.
Unlike previous decrees, the Ministerial Decree of July 4,
2019 provides for a new method for supporting renewa-
ble sources through two-way contracts for differences
under which the successful tenderer returns any posi-
tive differences between the zonal price and the auction
price.
At September 30, 2021 the indicative annual cumulative
cost was around €2.7 billion, compared with a ceiling of
€5.8 billion for termination of the incentive mechanism.
On November 30, 2021, Legislative Decree 199 of No-
vember 8, 2021 transposing Directive (EU) 2018/2001
on the promotion of the use of energy from renewable
sources (the RED II Decree) was published in the Gazzetta
Ufficiale.
The decree provides that capacity not assigned in the
auction procedures referred to in the Ministerial Decree
of July 4, 2019 shall be put up for auction in subsequent
procedures in 2022, until the publication of the new auc-
tion schedule for the next five years.
In addition, the measure confirmed the same Dutch auc-
tion mechanisms for plants with a capacity greater than
1 MW, providing for an exception for plants with a ca-
pacity greater than 10 MW, which will be able to use the
mechanism even though they have not completed the
authorization process.
Plants with a capacity of less than 1 MW, on the other
hand, will have direct access to incentives, with the ex-
ception of innovative technology plants, which will be
able to access the subsidies through specific tenders.
Iberia
In the 1st Half of 2021, the preparation of all the regula-
tions for access and connection to the grids for the new
generation of renewables was completed. In December
2021, Royal Decree 1183/2020 on access and connec-
tion to grids was published. In January 2021, Circular
1/2021 of the Access and Competition Commission was
approved and in May 2021 the detailed specifications for
access to the grid were established with the Resolution
of the National Commission for Markets and Competi-
tion. Until July 1, 2021 no requests for access and con-
nection to the grids can be made for new renewable
generation projects (a situation that has continued since
July 2020). Starting on July 1, applications may be sub-
mitted in accordance with the new rules. In general, the
Regulatory and rate issues
239
239
new technical criteria will open up a significant volume of
grid access capacity. Effective measures are being incor-
porated to curb grid access speculation. The legislation
provides for the possibility of launching calls for tenders
to grant grid access capacity at both the Just Transition
nodes and the rest of the network nodes, with variations
depending on circumstances.
On January 26, 2021, auctions for 3,000 MW of renew-
ables generation capacity took place, governed by the
Resolution of December 10, 2020, of the State Secre-
tariat for Energy. Enel Green Power España was awarded
50 MW of photovoltaic solar capacity. In total, 2,036 MW
of photovoltaic capacity and 998 MW of wind capacity
were auctioned.
In June 2021, work began on a bill reducing the remu-
neration of non-GHG emitting generation plants placed
in service before the entry into force of the Law 1/2005
(ETS) in proportion to the increased revenue obtained
from the incorporation into the wholesale electrici-
ty market price of the value of emission allowances for
marginal technologies.
In November 2021, a ministerial order was published to
govern the basis for the Access Capacity Contest in the
Fair Transition Hub of Teruel organized in response to
the closure of a large coal-fired power plant owned by
Endesa.
In the auction, for which proposal must be submitted in
January 2022, 1,200 MW of grid access capacity will be
awarded to the best proposals for renewables genera-
tion and storage projects with a high degree of technical
maturity and environmental and socio-economic impact.
On September 14, 2021, the Council of Ministers ap-
proved a royal decree law containing reform measures for
the electricity system to reduce the increase in electrici-
ty bills for consumers. The main feature of the legislation
is a temporary reduction in revenue from generation in
consideration of the increase in the cost of gas from en-
try into force of the measure until March 31, 2022.
In October 2021, Royal Decree 23/2021 clarified various
aspects of this reduction, including the exclusion from
the reduction mechanism of power produced by gener-
ation plants covered by hedging instruments that meet
certain characteristics. Each month, producers must
make a responsible statement certifying the existence of
these contracts. Most of the power generated by Endesa
is sold under forward contracts.
On October 19, 2021, a second auction was held under
the new remuneration scheme for renewables estab-
lished with Order TED/1161/2020. The auction concluded
with a weighted average price of €31.65/MWh for pho-
tovoltaic power and €30.18/MWh for wind power.
Europe
Greece
Following approval by the European Commission, the
Minister of Energy extended the remuneration mech-
anism for interruptibility services until September 30,
2021. Interruptibility is a demand response service in
which willing industrial consumers will interrupt their
consumption when required in exchange for a fee fixed
by auction. The scheme is financed by all generators op-
erating on the mainland, including EGPH, through the
transfer of a percentage of their revenue. The percent-
age applied differs depending on the generation tech-
nology used: wind = 1.8% (previously 2%), small hydro =
0.8% (previously 1%), PV = 3.6% (no change).
The decision of the Regulatory Authority for Energy (RAE)
no. 988/2021 published in December 2020 set the UOCC
contribution for 2022 at €0.581/MWh (in 2021 it was
€0.325/MWh). This rate applies to monthly revenue from
electricity generation for all renewable and cogeneration
units in operation and serves to cover the operating and
investment costs of DAPEEP, the Greek operator respon-
sible for managing renewable generation incentives and
the issue of guarantees of origin.
Romania
Law 259/2021 approved a series of measures to pro-
tect consumers and businesses, with the introduction
of a claw-back mechanism on the revenue of renewable
and low carbon energy generators in consideration of
the high price of power. For the period November 2021
- March 2022, sales from renewable electricity, hydroe-
lectric and nuclear power at prices above €90/MWh will
be taxed in arrears at 80%.
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Latin America
Colombia
Energy-transition law
On July 10, 2021, Law 2099 was promulgated. It seeks to
modernize current legislation and establishes specific
provisions for the energy transition in order to boost the
promotion, development and use of non-convention-
al sources of energy, partly with a view to accelerating
the country’s economic recovery process and strength-
ening companies supplying electricity and gas. The law
establishes tax benefits for investments in non-conven-
tional sources of energy, efficient energy management,
the development of hydrogen, the development of in-
frastructure projects to improve the electricity supply
service, electric mobility and the smart measurement of
consumption.
North America
United States
Renewables incentives
In June 2021, the United States Department of the Treas-
ury amended the administrative guidelines for section
45 of the Production Tax Credit (PTC) for investments
in wind plants and for section 48 of the Investment Tax
Credit (ITC) for investments in solar plants, giving pro-
jects additional time to be put into service on the condi-
tion that they meet the “continuity requirements“ within
the “continuity safe harbor“ mechanism. The guidelines
also clarified how to meet the continuity requirements.
Specifically, the guidelines:
• extend the period for entering service to six years for
plants that started construction in 2016, 2017, 2018 or
2019;
• extend the period for entering service to five years for
plants that started construction in 2020; and
• provide taxpayers who do not rely on the continuity
safe harbor to demonstrate continuity using the “con-
tinuous efforts“ standard rather than the more restric-
tive “continuous construction“ standard, regardless of
whether the project has begun construction.
Forced labor in the solar supply chain
In June 2021, US customs authorities responded to re-
ports by issuing a “withhold release order“ (WRO) on
silicon-based products manufactured by the company
Hoshine Silicon Industry Co. Ltd (Hoshine) and its subsid-
iaries, since they have been accused of exploiting their
workforce. The WRO restricts the import into the United
States of polysilicon products made by Hoshine.
The effect on the US solar industry was the halt of ship-
ments of photovoltaic modules by US customs, resulting
in a delay in the delivery of solar equipment to end users,
including Enel.
All photovoltaic equipment manufacturers had to pro-
duce clear documentation of their supply chain to meet
US customs requirements. The documentation had to
prove the specific origin of metallurgical grade silicon
in imported photovoltaic products and demonstrate the
absence of any Hoshine product in any part of the mining
or manufacturing process.
Enel’s Code of Ethics and corporate procedures do not
permit the exploitation of workers by any Group supplier
or subcontractor. Nevertheless, Enel is strengthening its
controls, reviewing its supply chain and monitoring the
implementation of the WRO by customs officials.
In a separate but connected development, in December
2021, President Biden signed the Uyghur Forced Labor
Prevention Act (UFLPA). UFLPA requires US customs au-
thorities to apply a presumption that goods “mined, pro-
duced, or manufactured in whole or in part“ in the Xin-
jiang Uyghur Autonomous Region are made with forced
labor and, therefore, are prohibited from being imported
into United States.
Goods covered by this presumption shall not be allowed
to enter unless the importer proves that it has:
• fully complied with government guidelines and regu-
lations;
• responded fully and substantially to all US customs in-
quiries; and
• determined “with clear and convincing evidence“ that
the goods were not produced using forced labor.
Polysilicon is one of the three industries on which appli-
cation of the WRO is focused, and this focus extends to
photovoltaic equipment that could contain raw materials
mined in the Xinjiang Uyghur Autonomous Region.
Implementation of the law will be guided by an admin-
istrative regulation process under way since February
2022, which is expected to be completed by June 2022.
As stated in Enel’s Human Rights Policy, the Group con-
demns any violation of human rights and imposes the
same standard on its partners and suppliers. The Code
of Ethics and Enel’s corporate procedures therefore do
not permit the exploitation of workers by any supplier or
subcontractor of the Group.
More specifically, all companies that intend to participate
in an Enel Group tender and, therefore, who wish to be-
Regulatory and rate issues
241
241
come part of the Company’s group of qualified suppliers,
must recognize the company policies, in particular those
relating to the management of their business in compli-
ance with internationally recognized human rights, in-
cluding the prohibition on the use of forced labor. This
requirement is included in the contracts that suppliers
sign.
In addition, Enel’s supplier qualification system ensures
the careful selection and evaluation of companies wish-
ing to participate in procurement procedures. The sys-
tem evaluates compliance with technical, financial, le-
gal, environmental, health and safety, human rights and
ethical integrity requirements in order to guarantee the
quality and reliability of the contracts awarded.
In addition to the regular supplier qualification process,
Enel conducts factory assessments, focused on evalu-
ating and monitoring the quality, production, risk man-
agement and logistics of each plant. Since 2021, Enel
has implemented a chapter on supply chain sustainabil-
ity, which addresses the key aspects of forced labor and
ethical practices.
The “In Broad Daylight: Uyghur Forced Labor and Glob-
al Solar Supply Chains“ report includes four suppliers
with whom Enel has contractual relationships in the list
of companies allegedly exposed to forced labor through
their supply chains. Accordingly, the Group intensified its
human rights controls:
• requiring suppliers to provide detailed traceability in-
formation on their supply chain;
• requesting in-person visits to the sites of suppliers
and sub-suppliers in order to verify compliance with
the terms and conditions contained in their contracts
with Enel;
• sharing best practices in relation to the content of the
ethical codes (or similar documents) of Enel’s suppliers.
As of February 2022, no evidence has been found that
Enel’s suppliers and subcontractors produce goods and
materials in conditions that do not respect human rights.
Enel has also adopted an ecosystem approach, working
together with other utilities, suppliers and sector asso-
ciations, to promote international industry statements
aimed at guaranteeing full respect for human rights. In
this context and in a global effort to ensure that the so-
lar industry supply chain is free from forced labor, Enel
Green Power North America, based in the United States,
has signed the Solar Industry Forced Labor Prevention
Pledge and has undertaken to support the development
of a supply chain traceability protocol by the Solar Ener-
gy Industries Association. In Europe, Enel Green Power
has also signed SolarPower Europe’s public declaration
on forced labor in the Xinjiang region of China.
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Bipartisan Infrastructure Law
In November 2021, President Biden signed a $1 trillion
Bipartisan Infrastructure Law, unlocking funds for new
spending on roads, bridges, aqueducts, broadband and
other projects in fiscal years 2022-2026.
The new law also contains provisions to incentivize the
expansion of the country’s electricity grid and support
existing and new clean energy technologies. It also con-
tains provisions to support existing nuclear power plants
and hydroelectric plants, clean up abandoned mining
lands and facilitate access to critical minerals needed for
clean energy production. Of potential interest to Enel,
the bipartisan infrastructure law includes the following
provisions:
• EV charger infrastructure: the United States Depart-
ment of Energy (DOE) and the United States Depart-
ment of Transportation (DOT), through the Federal
Highway Administration, will spend $5 billion on the
National EV Formula Program to create a national net-
work of EV chargers along interstate highways. The
funds will be split over five years between the states.
The plan is geared towards fostering confidence in
electric vehicles by ensuring that drivers always have a
place to recharge. The two departments will also work
with states to spend $2.5 billion over five years on al-
ternative fuel infrastructure subsidies;
• electric buses: the DOT, through the Federal Transit
Administration, will spend $5.3 billion over five years
in grants to transportation agencies for the Low or
No Emission Vehicle Program. The program supports
transport agencies in purchasing or leasing low- or
zero-emission buses and other vehicles using tech-
nologies such as batteries;
• electric school buses: the US Environmental Protec-
tion Agency, through the Clean School Bus Program,
will spend $5 billion over five years in the form of grants
and discounts to states or local government agencies,
as well as contractors. Eligible contractors include
for-profit or non-profit entities that have the ability to
sell clean school buses, zero-emission buses, charg-
ing or refueling facilities, or other equipment need-
ed to charge, power or maintain clean/zero-emission
school buses, or arrange funding for that sale;
• second life of EV batteries for grid services: the DOE
intends to award grants for research, development
and demonstration projects seeking to give a second
life to EV batteries that have been used to power elec-
tric vehicles, as well as for technologies and processes
for the final recycling and disposal of EV batteries;
• demand response: the law sets a new standard for
considering investment in demand response to ex-
pand the reach of the federal energy management
program to include demand response in state energy
conservation plans;
• improve the grid: the DOE is authorized to allocate
$5 billion to cooperation agreements or grants to
strengthen and improve grid resilience and reliability,
as well as an additional $3 billion for the existing Smart
Grid Investment Matching Grant Program;
• transmission policy: the law provides $2.5 billion in
loans and/or direct funding to private transmission
developers to provide financial stability for proposed
transmission projects. The DOE can make its network
available to the private individual, make loans or enter
into public-private partnerships.
Political action
In May 2021, the state of Texas enacted a law in response
to an extreme cold weather event that occurred in Feb-
ruary 2021. The legislation ordered the Public Utility
Commission (PUC) to develop and implement rules in the
natural gas and electricity sectors to meet the energy
needs of the electricity system during extreme weather
events and periods of low renewable energy production.
Legislation was approved to securitize most of the liabil-
ities deriving from the February storm, reducing the total
amount for which market operators would be liable for
(thus reducing Enel’s liability).
Legislation was also passed to restrict companies from
entering into agreements with foreign-owned compa-
nies from China, Iran, North Korea and Russia if those
agreements provide the latter with direct or remote ac-
cess to the Texas power grid.
In August 2021, the state of Illinois enacted a law to raise
the state’s Renewable Portfolio Standard (RPS) targets,
provide incentives for electric vehicles and e-buses, and
create new energy storage and network modernization
programs.
Illinois will switch to 100% clean energy by 2050, with in-
terim targets of 50% by 2040 and 40% by 2030. The leg-
islation translates into the closure of private coal plants
of over 25 MW by 2030. Publicly owned coal/natural gas
plants will close by 2045. By 2030, Illinois will have 1 mil-
lion electric vehicles on the road, with $10 million availa-
ble annually to convert state and local fleets.
There are also policies to create goals for battery storage
systems (BESS).
Project work contracts will be required for all new indus-
trial-scale solar and wind projects, and the renewable
energy industry is required to report on diversity and in-
clusion goals as of April 2022.
In July 2021, the Missouri legislature approved a change
in the tax assessment of wind farms that increased the
tax exposure for assets that have been operating in the
state for more than 5 years from 35% of the estimated
value to 37.5%.
New Jersey has implemented an industrial-scale solar re-
newable energy incentive program that is administered
by the state’s Bureau of Public Utilities. Additionally, in
July 2021, the New Jersey legislature passed a law that will
allow solar development on agricultural land, enabling
the state to meet its solar development goals.
Connecticut passed a law in June 2021 that sets a battery
power storage target of 1 GW by 2030.
Colorado and Nevada both passed laws in June 2021 that
require utilities in each state to join a regional transmis-
sion organization by 2030.
Canada
Canada announced a reinforced climate plan called “A
Healthy Environment and a Healthy Economy“ at the
United Nations Climate Change Conference (COP26)
in November 2021 in order to achieve the Paris Agree-
ment’s strengthened goal of reducing emissions by 40-
45% from 2005 levels by 2030. The Canadian Net-Zero
Emissions Accountability Act, which became law on June
29, 2021, enshrines Canada’s commitment to achieving
net-zero emissions by 2050. The law ensures transpar-
ency and accountability as the government works to
achieve its goals.
The Minister of Environment and Climate Change will es-
tablish the country’s emissions reduction plan for 2030
by the end of March 2022.
The law requires public participation and independent
advice to guide the Canadian government’s efforts. As
part of the plan, the government launched the $8 billion
Net-Zero Accelerator Fund to help large polluters reduce
their emissions.
In August 2021, the government launched a five-year
$2.19 billion fund to help transportation service provid-
ers move away from fossil fuel engines and switch to
zero-emission vehicles. The Zero Emission Transit Fund
is part of the federal government’s $11.9 billion invest-
ment in public transportation and adds to Canada In-
frastructure Bank’s planned $1.19 billion investment in
zero-emission buses through its three-year growth plan.
This fund seeks to support public transport and school
bus operators to plan the switchover to electric vehicles,
supporting the purchase of 5,000 zero-emission buses
and building support infrastructure, including charging
stations. Municipalities, school districts and private part-
nerships will be able to work with the government to ex-
ploit potential opportunities.
Regulatory and rate issues
243
243
During the federal election in September 2021, the Lib-
eral Party (currently in office) pledged to double Cana-
da’s existing clean energy capacity to reach its net-zero
emissions target by 2050. The Canadian Infrastructure
Bank is injecting $5 billion to advance clean energy gen-
eration, transmission and storage and have pledged to
invest an additional $1 billion over the next four years
to support renewable energy and grid modernization
projects. While the federal government has no direct
responsibility for Canada’s power grids (they are under
provincial jurisdiction), the government has committed
itself to:
• introduce a Clean Electricity Standard to achieve a
100% net-zero emissions electricity system by 2035;
• develop additional investment tax credits for a range
of renewable energy and battery storage solutions to
accelerate the deployment of clean energy into the
grid;
• create a Pan-Canadian Grid Council in partnership
with provinces, territories, indigenous peoples, the
private sector, labor organizations and civil society:
– the Grid Council will work to establish national
standards, best practices and incentives to pro-
mote investment in infrastructure, smart grids, grid
integration and innovation in the electricity sector,
with the aim of making Canada the world’s most
reliable, affordable and carbon-free electricity pro-
ducer;
– the Grid Council will promote the most cost-effec-
tive approaches to planning and developing the
electricity system in Canada, while promoting com-
petitiveness to sell more clean Canadian power to
the United States.
Africa, Asia and Oceania
South Africa
The state-owned utility Eskom has started transmission
unbundling with the creation in December of the Nation-
al Transmission Company South Africa (NTCSA), which is
expected to be operational in 2022. Unbundling will fa-
cilitate competition in the power generation sector and
improve access to the grid on a non-discriminatory ba-
sis.
India
In 2021, the government granted independent power
producers (IPPs) an extension of two and a half months
to commission renewable energy plants due to the COV-
ID emergency, provided that the IPPs did not request
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Integrated Annual Report 2021
further extensions or increases in the rates under their
power purchase agreements (PPA). The Government
subsequently eased this requirement by allowing IPPs to
request further extensions based on the conditions set
out in their PPAs. Enel Green Power India took advantage
of the extension for the 285 MW Coral Project.
The Ministry of Energy has introduced two rules that
strengthen the “must-run“ status for renewable projects,
safeguarding IPPs against arbitrary curtailment and en-
suring rapid recovery in the event of a change in law.
To promote renewable energy projects, the government
had waived transmission rates for renewable projects
that sold electricity produced through long-term PPAs.
The government then expanded the scope of this dero-
gation by also allowing the cancellation of transmission
rates for projects with short-term sales contracts and on
power exchanges. The non-applicability of transmission
rates represents an advantage for our projects.
South Korea
The main scheme to support the development of renew-
ables in Korea is the Renewable Portfolio Standard (RPS),
which obliges conventional generators with a capacity
of more than 500 MW to procure a certain amount of
electricity from renewable sources annually. This share
will gradually rise from 2% in 2012 to 25% by 2030. In 2021
the share was 9%.
Compliance with the RPS (the percentage of electricity
generated from renewables) can be achieved by build-
ing renewable plants or by purchasing green certificates
(RECs). The number of RECs that a RES generator can sell
for each MWh produced depends on the so-called “mul-
tiplier“ which differs depending on the energy source.
The multiplier values were updated in August 2021: the
very advantageous multiplier (x4) for BESS+RES was
abolished, while that for onshore wind was increased
from x1 to x1.2; solar PV is still less than 1 (x0.8).
Another important regulatory reform in 2021 was the in-
troduction of a series of tools to facilitate the procure-
ment of renewable energy by companies participating in
the RE100 initiative, with the (voluntary) objective of using
100% of green energy to drive their businesses. Among
the most interesting tools for Enel Green Power is the
REC trading platform, which allows the direct exchange
of RECs between generators and companies. However,
Third Party PPAs and Direct PPAs can also represent new
and potentially attractive routes to market by allowing
the purchase and sale of renewable electricity between
end users and generators without going through the en-
ergy market.
Infrastructure and Networks
Italy
Rates for the fifth regulatory period (2016-2023) are gov-
erned by ARERA Resolution no. 654/2015/R/eel. This peri-
od 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 Reso-
lution no. 568/2019/R/eel, with which it updated rates for
distribution 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%.
The method for determining the WACC for the 2022-2027
period was updated with Resolution 614/2021/R/com, es-
tablishing a value of 5.2% for electricity distribution and
metering. The regulation provides for an update of the
value for 2025-2027, as well as the possibility of annual up-
dating (in 2023 and 2024) should certain financial indica-
tors lead to a change in the WACC of at least 0.5%.
As for distribution and metering rates, ARERA approved
both the definitive reference rates for 2020, calculated by
taking into account the actual balance sheet data for 2019
(Resolution no. 131/2021/R/eel), and the provisional refer-
ence rates for 2021 on the basis of the preliminary balance
sheet data for 2020 (Resolution no. 159/2021/R/eel). The
definitive reference rates for 2021 are expected to be pub-
lished in 2022.
As regards service quality, ARERA, with Resolution no.
646/2015/R/eel as amended, established output-based
regulation for electricity distribution and metering servic-
es, including the principles for regulation for 2016-2023
(TIQE 2016-2023). With Resolution no. 566/2019/R/eel,
ARERA completed the update of the TIQE for the 2020-
2023 semi-period, proposing tools to bridge gaps in qual-
ity of service still existing between the various areas of the
country, taking account of the time needed to implement
interventions on the grid as well as the effects of climate
change.
With Resolutions nos. 212/2021/R/eel and 537/2021/R/eel,
ARERA specified the bonuses for resilience interventions
completed by e-distribuzione in 2019 and 2020 eligible for
the bonus-penalty mechanism envisaged under the provi-
sions of Resolution no. 668/2019/R/eel, which introduced
an incentive mechanism for investments to increase the
resilience of distribution grids in terms of resistance to
loads deriving from extreme weather events.
With regard to relations between distributors and trad-
ers, on January 1, 2021 the new version of the Electrici-
ty Transport Grid Code came into force with Resolution
no. 261/2020/R/eel, which due to the reduction in the
time required to terminate transport contracts due to
the default of sellers, reduced the credit exposure of
distributors. Consequently, the value of guarantees that
all sellers must give to distributors to cover the trans-
port service provided was reduced (passing from a level
of coverage ranging from 3 to 5 months of the trader’s
turnover to a new range between 2 and 4 months).
Energy efficiency - White certificates
The decree of the Ministry for Ecological Transition of
May 21, 2021 amended the ministerial decree of Janu-
ary 11, 2017 as already amended by the decree of the
Ministry for Economic Development of May 10, 2018.
The measure set the national quantitative targets for
electricity and gas distribution companies for the years
2021-2024 and also reduced the objectives for 2020 by
60%. The decree also updated the methods for distribu-
tion companies to meet the obligation and for reimburs-
ing the related costs.
Iberia
Methodology for calculating rates and electrical
system charges
On March 18, 2021, Royal Decree 148/2021 of March
9, 2021 was published in Spain’s Official Journal, which
establishes the methodology for calculating electric-
ity system charges. Furthermore, on March 28, Circular
3/2021 of March 17 of the National Markets and Com-
petition Commission (CNMC) was published, amending
Circular 3/2020 of 15 January, which had established the
methodology for calculating electricity transmission and
distribution rates. The new rates for access to the trans-
mission and distribution grid, as well as the new charg-
es for the electricity system, entered into force on June
1, 2021, by way of the Resolution of March 18, 2021 of
the CNMC, which established the access rates for the
electricity transmission and distribution grids applicable
from June 1, 2021, and Order TED/371/2021 of April 19,
which established the rates for the electricity system and
capacity payments applicable from June 1, 2021.
On September 15, 2021, Royal Decree Law 17/2021 of
September 14 was published, containing urgent meas-
ures to mitigate the impact of the rise in natural gas
prices in the gas and electricity retail markets. It reduced
charges for the electricity system by about 96% from
September 16, 2021 to December 31, 2021 compared
with those in effect from June 1, 2021.
Regulatory and rate issues
245
245
Methodology for calculating charges for the gas
system
On December 30, 2020, Royal Decree 1184/2020 of
December 29 was published, establishing the meth-
odology for calculating gas system charges. It entered
into force on October 1, 2021. On September 29, 2021,
Order TED/1023/2021 of September 27 was published,
establishing charges for the gas system for the period
between October 1, 2021 and September 30, 2022. The
amount to be recovered for charges for this period is
€26.9 million.
Electricity rates for 2021
On December 29, 2020, Order TEC/1271/2020 of De-
cember 22 was published in Spain’s Official Journal, es-
tablishing various costs for the electricity system for
2021 and extending the electricity access rates until the
rates tariffs set by the National Markets and Competition
Commission (CNMC) come into force.
Similarly, on March 23, 2021, the Resolution of March
18, 2021 of the CNMC was published in Spain’s Official
Journal, approving the access rates for the transmission
and distribution grids to be applied starting from June 1,
2021.
On April 22, 2021, Order TED/371/2021 of April 19, 2021
was published in Spain’s Official Journal, establishing
electricity system charges applicable from June 1, 2021.
Finally, Royal Decree Law 17/2021 of September 14 re-
duced electricity rates by about 96% in the period from
its entry into force until December 31 2021.
Electricity rates for 2022
On December 22, 2021, the Resolution of December 16,
2021 of the National Markets and Competition Com-
mission (CNMC) was published in Spain’s Official Journal,
establishing the access rates for the electricity trans-
mission and distribution grids applicable from January
1, 2022, which represent an average reduction of 5.4%
compared with their values at June 1, 2021.
On December 30, Order TED/1484/2021 of December 28
was published in Spain’s Official Journal, setting the elec-
tricity system rates to be applied from January 1, 2022
and establishing various regulated costs of the electrici-
ty system for 2022. The new charges for 2022 represent
an average reduction of about 31% compared with the
charges approved on June 1, 2021.
Natural gas rates for 2021
Circular 6/2020 of July 22 of the National Markets and
Competition Commission (CNMC) approved the meth-
odology for calculating rates for transport, local networks
and natural gas regasification. In addition, it established
that this Commission must set access rates for regasifi-
cation plants and, if necessary, the billing deadlines for
the period of operation of the transport and distribution
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Integrated Annual Report 2021
rates applicable from October 1, 2020.
On December 29, 2020, the Resolution of December 21
of the Directorate General for Energy Policy and Mines
was published, establishing the natural gas last resort
rate (TUR) to be applied from January 1, 2021, with an
average increase of 4.6% and 6.3% for last resort rate 1
(TUR 1) and last resort rate 2 (TUR 2), respectively, due to
the increase in the cost of the commodity. These values
remained in force throughout the 1st Half of 2021 as the
necessary condition for any change (a variance of +/-2%
in the cost of the commodity) was not met.
On June 30, 2021, the Resolution of June 24, 2021 of
the Directorate General for Energy Policy and Mines was
published, establishing the natural gas last resort rate
(TUR) to be applied starting from July 1, 2021, with a con-
sequent increase of 2.9% and 3.9% for last resort rate 1
(TUR 1) and last resort rate 2 (TUR 2), respectively, due to
the increase in the cost of the commodity.
Finally, on September 29, 2021, the Resolution of Sep-
tember 26, 2021 of the Directorate General for Energy
Policy and Mines was published, which approves the nat-
ural gas last resort rate (TUR) to be applied from Octo-
ber 1, 2021, which in compliance with Royal Decree Law
17/2021 of September 14 translated into an increase of
0.9%, 4.6% and 11.2% for last resort rate 1 (TUR 1), last
resort rate 2 (TUR 2) and last resort rate 3 (TUR 3), re-
spectively.
Natural gas rates for 2022
On December 27, the Resolution of December 22, 2021 of
the Directorate General for Energy Policy and Mines was
published, establishing the last resort rate for natural gas
to be applied in the 1st Quarter of 2022. Taking account
of the provisions of Royal Decree Law 17/2021 of Sep-
tember 14, it translated into an increase of about 5.4%,
6.8% and 7.5% for last resort rate 1 (TUR 1), last resort rate
2 (TUR 2) and last resort rate 3 (TUR 3), respectively.
Proposed remuneration for distribution activities from
2017 to 2019
During November 2021, work began on preparing a pro-
posed order approving the incentive or penalty for the
reduction of losses in the electricity distribution grid for
2016, the modification of base remuneration for 2016 for
several distribution companies and the modification of
the remuneration for electricity distribution companies
for 2017, 2018 and 2019.
Direct subsidies to electricity distribution companies
On December 22, 2021, Royal Decree 1125/2021 was
published in Spain’s Official Journal, promoting the dig-
itization of distribution grids and charging infrastructure
on public roads with support from European funds under
the Recovery, Transformation and Resilience Plan.
The aid will amount to €525 million for 2021-2023, which
will be allocated among distributors based on their share
of distribution remuneration. Distribution companies
must present these projects, which they will co-finance
at 50%, in their annual investment plans, together with
supplementary information concerning the impact on
employment, the industrial value chain and the penetra-
tion of renewables, as well as digital programs to improve
customer service quality.
Legislation establishing the National Fund for the
Sustainability of the Electricity System (FNSSE)
On June 1, 2021, the Council of Ministers approved a bill
establishing the National Fund for the Sustainability of
the Electricity System, which is awaiting approval by the
Congress of Deputies. It is intended to divide the cost
of policies to promote renewable energy, high-efficien-
cy cogeneration and energy recovery from waste among
the various energy vectors.
The FNSSE, which will be implemented gradually over a
5-year period, will be financed with contributions from
operators in the various energy sectors, taxes deriving
from Law 15/2012, the proceeds of auctions of CO2
emission rights and, up to a limit of 10% of the annual
value of the Fund, with funding from the general State
budget or with EU funds.
Europe
Romania
In Romania, electricity distributors (DSOs) purchase elec-
tricity on wholesale markets to cover grid losses. The
price recognized ex-ante by the regulator for such pur-
chases in 2021 was largely exceeded by the closing prices
on the wholesale electricity markets, with a serious im-
pact on the cash flows of the DSOs. The rate mechanism
provides for the recovery of grid losses: the difference
with purchase costs for the year t is recouped through
distribution rates for the year t+2, but the circumstances
generated pressure on the 2021 balance sheets of the
DSOs, with a negative impact on working capital.
Latin America
Chile
CNE Resolution no. 176/2020 - Exclusive activity
On June 9, 2020, CNE Resolution no. 176 was published.
It establishes the substance of the obligation for exclu-
sive operation and separate accounts in the provision of
public electricity distribution services in conformity with
Law 21.194.
Under the provisions of the resolution, companies hold-
ing concessions for the public electricity distribution
service operating in the Chilean national electricity sys-
tem will have to set up as companies exclusively engaged
in distribution activities and will only be able to exercise
economic activities involved in the provision of the pub-
lic distribution service, in compliance with applicable
legislation. The rules established in the resolution shall
apply from January 1, 2021. Where a company is unable
to comply by that date for legitimate reasons, subject to
notifying the CNE the application of the resolution may
be postponed, but in any case not later than January 1,
2022.
Law 21.249 - Exceptional measures supporting end
users of health, electricity and gas services
On August 8, Law 21.249 was approved, introducing ex-
ceptional measures supporting the most vulnerable cus-
tomers, measures that, in large part, Enel Distribución
Chile was already implementing voluntarily. The meas-
ures include a moratorium on the interruption of supply
due to arrears and make it possible to pay electricity bill
arrears in installments for customers defined as vulner-
able. These measures were extended and strengthened
with Law 21.340 until December 31, 2021 or the end
of the state of emergency declared in response to the
COVID-19 pandemic.
”Average bare price“
On March 20, 2021, the Ministry of Energy published the
average “bare price“ to be applied starting from July 1,
2020, while on May 20, 2021 the Ministry of Energy also
published the average bare price to be applied starting
from January 1, 2021. Considering the price stabilization
mechanism established with Law 21.185, the publication
of this decree had no effect on end-user rates.
”Short-term bare price“
On December 3, 2020, the Ministry of Energy published
Decree 12T/2020, setting the “bare price“ for the supply
of electricity with effect from October 1, 2020.
On March 22, 2021, the Ministry of Energy published De-
cree 3T/2021, setting the “bare price“ for the supply of
electricity with effect from April 1, 2021.
Determination of 2020-2024 distribution rate
The price determination process for the 2020-2024 pe-
riod is still under way. For the moment, the rates contin-
ue to be applied in accordance with the methodology in
force for the 2016-2020 period.
Regulatory and rate issues
247
247
Argentina
Colombia
The Energy and Gas Regulation Commission (CREG) deter-
mines the remuneration methodology for the distribution
grid. Distribution rates are set every five years and updated
monthly based on the producer price index.
Rate revisions
With Resolution no. 122 of 2020, the Energy and Gas Reg-
ulation Commission (CREG) set the distribution rates for
Codensa for the period 2018-2023.
In June 2021, with Resolution no. 068 of 2021, CREG ap-
proved the update of the Codensa investment plan.
Peru
In Peru, the process for determining distribution rates takes
place every four years and is referred to as the “Setting the
Aggregate Distribution Value“ (VAD). Exceptionally, the last
rate cycle set a duration of five years. Therefore, in 2018
the process of determining the VAD was completed for the
years 2018-2022.
The Peruvian regulations use a “model company“ approach.
In each rate process, the investment and operating costs
necessary to meet the demand for electricity in the conces-
sion area are set and will be incorporated in the rate paid to
the distributor. The VAD is determined individually for each
distribution company with more than 50,000 customers.
Rate revisions
Until a revision of the definitive full rate is approved, the reg-
ulator ENRE is entitled to set provisional rate adjustments in
order to ensure stability in the provision of services.
On March 21, 2021, Resolution ENRE no. 79/2021 estab-
lished new transitional rates, which were subsequently in-
creased by 9% with Resolution no. 106 of April 30, 2021,
pending completion of the renegotiation of the full rate.
Resolutions ENRE no. 263 and no. 266/2021 approved new
rates to be applied starting from August 1, 2021. They only
adjusted the seasonal stabilized price for large customers
(with consumption of more than 300 kWh per month) as
required by Resolution 748/21 of the Secretariat of Energy.
The average rate was increased from $5.020 to $5.176/kWh
(+3.1%).
Brazil
Rate revision for Enel Distribuição Ceará
The latest full rate revisions approved for each Brazilian
distribution company belonging to the Enel Group date
back to 2018 (for Enel Distribuição Rio de Janeiro and Enel
Distribuição Goiás) and 2019 (for Enel Distribuição Ceará
and Enel Distribuição São Paulo). The next rate reviews are
scheduled for 2023.
The latest rate adjustments are summarized below:
Company
Average increase
Rate
adjustment date
High
voltage
Low
voltage
Enel Distribuição Rio de Janeiro
March 2021
+10.38% +4.63%
Enel Distribuição Ceará
April 2021
+10.21% +8.54%
Enel Distribuição São Paulo
June 2021
+3.67% +11.38%
Enel Distribuição Goiás
October 2021
+14.21% +17.32%
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Integrated Annual Report 2021
End-user Markets
Italy
The current regulatory framework governing the process
of eliminating regulated prices in the electricity sector
(Law 124/2017 – the Competition Act – as most recent-
ly amended by Decree Law 152/2021 implementing the
NRRP, ratified with Law 233/2021) provides for a stag-
gered postponement of the removal of price protection:
to January 1, 2021 for small businesses, to January 1, 2023
for micro-enterprises and to January 2024 for domestic
customers. As regards the gas sector, the elimination
of price protections is scheduled to occur on January 1,
2023 for domestic customers and condominiums.
With regard to the end of price safeguards for small firms
in the electricity sector (January 1, 2021), the Ministry for
Economic Development issued a decree implementing
the Competition Act on December 31, 2020, delegating
the Regulatory Authority for Energy, Networks and the
Environment (ARERA) to define the measures governing
the transition to the free market based on certain criteria
and guidelines. With Resolution no. 491/2020/R/eel, AR-
ERA established a last resort service (“gradual safeguards
service“) for small businesses without a supplier, to be
assigned by auction on a territorial basis for a period of
three years. A ceiling of 35% was set for the market share
that can be assigned to each supplier.
In March 2021, Enel Energia and Servizio Elettrico Nazi-
onale (together with Enel Italia) appealed the ministerial
decree before the Lazio Regional Administrative Court,
contesting the imposition of the antitrust cap at 35%
and the lack of provisions (e.g., a social clause) for the
reimbursement of the residual costs of Servizio Elettrico
Nazionale following the loss of customers. With regard
to the latter point, in March 2021, Servizio Elettrico Na-
zionale and Enel Italia also challenged Resolution no.
491/2020/R/eel with an appeal before the Lombardy Re-
gional Administrative Court. At the moment, no hearing
has yet been set for these appeals.
With ruling no. 18/2021, the Lombardy Regional Ad-
ministrative Court granted the appeals filed by Servizio
Elettrico Nazionale and Enel Energia, voiding Resolution
no. 279/2017/R/com. The resolution had established an
incentive mechanism to increase the use of electronic
invoices with customers on the regulated markets and
made the compensation for the seller of the differen-
tial between the discount granted to customers and the
avoided cost conditional upon reaching certain thresh-
olds. With Resolution no. 477/2021/R/com, ARERA con-
sequently also amended, with effect from 2022, the rules
governing the recovery of amounts relating to previous
years.
Electricity
With Resolution no. 604/2020/R/eel, ARERA updated for
2021 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
reference price for sellers on the free market.
With Resolution no. 402/2021/R/eel, the updating of
the RCV and the PCV for 2022 was postponed to the 1st
Quarter of 2022, with effect from April 1, 2022, taking ac-
count of the need to cover the costs incurred by opera-
tors from January 2022 in the upcoming determinations.
With ruling no. 565 of March 27, 2020, the Lombardy
Regional Administrative Court partially voided Resolu-
tion no. 119/2019/R/eel, with which ARERA had intro-
duced changes to the compensation mechanism for the
amounts not collected by operators of the enhanced
protection service in respect of fraudulent withdrawals
of power. In particular, 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 provi-
sions of the Regional Administrative Court.
With Resolution no. 32/2021/R/eel, ARERA established a
mechanism to reimburse arrears relating to the general
system charges paid by the sales companies on the free
and safeguard markets to distribution companies but
not collected from end users (for the safeguard market,
this only applies to customers that can be disconnected).
For customers who cannot be disconnected on the safe-
guard market, the mechanism for reimbursing non-re-
coverable charges is governed by Article 44 of the TIV
(Integrated Sales Code).
Gas
With Resolution no. 401/2021/R/gas, ARERA postponed
the update of the QVD component to the 1st Quarter of
2022, with effect from April 1, 2022, taking account of
the need to cover the costs incurred by operators start-
ing from January 2022. This decision was prompted by
the need for further evaluation of the ongoing evolution
of the structure of the retail markets as well as by the
need to align the remuneration methods of the various
regulated entities.
In Articles 31-quinquies and 37.1 letter b) of the TIVG
(Integrated Gas Sales Code), ARERA regulates specific
mechanisms for the reimbursement of arrears for pro-
viders of the last resort service and the default service
on distribution grids.
Regulatory and rate issues
249
249
Iberia
Energy efficiency
Law 18/2014 of October 15, which approves urgent
measures for growth, competitiveness and efficiency,
created the National Energy Efficiency Fund to achieve
energy efficiency objectives.
Order TED/275/2021 of March 18 established a contri-
bution of €27.7 million to the National Energy Efficien-
cy Fund for Endesa, corresponding to the obligation for
2021.
In December 2021, the Ministry for the Ecological Transi-
tion and the Demographic Challenge started preparation
of a proposed order setting the contribution to the Na-
tional Energy Efficiency Fund for 2022, establishing the
amount proposed for Endesa at €26 million.
Consumer protection measures: Social Bonus
On October 16, Order TED/1124/2021 of October 8 was
published in Spain’s Official Journal, establishing the dis-
tribution of the 2021 obligation for funding the Social
Bonus, with Endesa’s share being set at 34.72%. In Octo-
ber, the National Competition and Markets Commission
(CNMC) began hearings on its proposal to distribute the
funding of the Social Bonus for 2022, with the percent-
age proposed for Endesa set at 33.50%.
On October 27, 2021, Royal Decree Law 23/2021 of Octo-
ber 26 containing urgent measures in the field of energy
for the protection of consumers and the introduction of
transparency in the wholesale and retail electricity and
natural gas markets was published in Spain’s Official
Journal. The main consumer protection provisions in the
decree are:
• discounts through the Social Bonus mechanism have
been increased from 25% to 60% for vulnerable cus-
tomers and from 40% to 70% for severely vulnerable
customers for the period from October 27, 2021 to
March 31, 2022. Subsequently, Royal Decree 29/2021
of December 22, extended this measure until April 30,
2022;
• the State budget contribution to the Social Bonus
mechanism for heating was increased by €100 million
to a total of €203 million, with the minimum benefit
rising from €25 to €35 in 2021.
Similarly, Royal Decree Law 21/2021 of 26 October was
published, extending the social protection measures to
address situations of social and economic vulnerability.
Note that the “COVID vulnerable“ Social Bonus catego-
ry has been extended, representing a 25% discount on
the PVPC rate for unemployed workers, those in wage
supplementation programs (ERTE) and businesses with
reduced working hours due to COVID precautions, until
February 28, 2022.
Consumer protection measures: electricity supply
guarantee
On September 15, 2021, Royal Decree 17/2021 of Sep-
tember 14 containing urgent measures to mitigate the
impact of the rise in natural gas prices in retail gas and
electricity markets was published in Spain’s Official Jour-
nal, establishing a minimum essential supply for vulner-
able customers (recipients of the electricity Social Bo-
nus) in arrears with their utility bills and extending the
payment period by six months (beyond the existing four
months), during which supplies cannot be interrupted
and power will be reduced to 3.5 kW only for customers
with a larger supply.
Similarly, Royal Decree Law 21/2021 of October 26 ex-
tended the moratorium on interruption of supplies of
electricity and gas to vulnerable domestic customers
(recipients of the Social Bonus) until February 28, 2022.
Consumer protection measures: tax measures
On June 25, 2021, Royal Decree Law 12/2021 of June 24
was published in Spain’s Official Journal, adopting urgent
measures in the field of energy taxation and electricity
generation and on the management of regulatory fees
and rates for water use. Specifically, the royal decree
law reduced VAT from 21% to 10% on the electricity bills
of consumers with low voltage service and contracted
power up to 10 kW until December 31, 2021, provided
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250
Integrated Annual Report 2021
that the average monthly price on the wholesale mar-
ket in the previous month is greater than €45/MWh. For
consumers benefitting from the Social Bonus program,
10% VAT will apply regardless of the wholesale market
price.
Royal Decree 17/2021 of September 14 containing urgent
measures to mitigate the impact of the increase in nat-
ural gas prices on the retail gas and electricity markets
reduced the electricity tax from 5.1% to 0.5% from Sep-
tember 15, 2021 to December 31, 2021.
Both measures were extended until April 30, 2022 with
Royal Decree 29/2021 of December 22.
Europe
Romania
Latin America
Free market
In all Latin American countries, distribution companies
can supply electricity to their customers on the regu-
lated market. However, they can also apply free market
conditions if customers exceed certain limits.
The limits for the free market by country are as follows:
Country
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Panama
Peru
kW threshold
>30 kW
>1,000 kW or >500 kW(1)
>100 kW or 55 MWh-month
Not applicable(2)
>100 kW
>100 kW
>200 kW(3)
As from January 1, 2021, Romania began implementa-
tion of the provisions of Regulation (EU) 2019/943 on the
elimination of regulated prices for end users.
In the 2nd Half of 2021, the Romanian authorities adopt-
ed specific legislation (Government Emergency Order
118/2021, Law 259/2021, Government Emergency Order
130/2021) establishing a combination of price-capping
and offsets.
(1) The >500 kW threshold applies if the electricity consumed was gen-
erated using renewable sources, which are subsidized by the gov-
ernment through a discount on rates.
(2) The concept of free-market customer does not apply in Costa Rica.
(3) D.S. 018-2016-EM establishes that:
- the installed power supply of customers who can choose between
the regulated market and the free market (those with a power sup-
ply of between 200 and 2,500 kW) is measured for each point of
supply;
- customers whose power supply exceeds 2,500 kW for each point
of supply are free-market customers.
Regulatory and rate issues
251
251
REPORT
ON OPERATIONS
5.
Outlook
Enel is the largest private-sector renewables
company in the world
Investing in Enel means investing in a
decarbonized business model that leaves no
one behind.
Enel is the largest private-sector electricity
distribution company in the world
Enel´s grids, which are the most highly
digitalized in the world, will be the foundation
of the energy transition.
Enel had the largest customer base among
private-sector companies
The electrification of energy consumption
will enable Enel to create value for itself and
for its customers.
A simple, predictable and attractive dividend
policy
Enel retains a dividend policy based on a
fixed and increasing dividend until 2024.
252
Integrated Annual Report 2021
253
Outlook for operations
The progressive roll-out of COVID-19 vaccines in 2021
created the conditions for strong growth at a global level.
In this environment, the Group experienced a sound re-
covery in operating indicators in terms of generation, di-
stribution and sales to end users of electricity. In particu-
lar, the Enel Group accelerated the construction of new
renewables capacity during the year, with over 5 GW of
new installed capacity worldwide, representing the abso-
lute record for the Group, with an increase of more than 2
GW on the new capacity installed in 2020.
At the same time, macroeconomic conditions were shar-
ply influenced by strong growth in the prices of commo-
dities, such as gas and coal, which have a direct impact
on the price of electricity. This prompted the authorities
of some European countries to intervene in an attempt
to calm the increase in electricity prices for consumers,
with measures that in some cases penalized companies
operating in electricity generation and sales.
In this context, the geographical diversification of the
Group, its integrated business model along the entire va-
lue chain, a sound financial structure and a high degree
of digitalization have enabled Enel to display considerable
resilience, which is reflected in our performance and fi-
nancial position.
In November 2021, the Group presented its new Strategic
Plan, also providing a vision of the evolution of the busi-
ness in this decade.
More specifically, the Strategic Plan focuses on four stra-
tegic lines of action.
• Allocate capital to support the supply of decarbonized
electricity.
Between 2021 and 2030, the Enel Group plans to mobili-
ze investments totaling €210 billion, of which €170 billion
invested directly by the Group (an increase of 6% com-
pared with the previous Plan) and €40 billion catalyzed
by third parties.
With these investments, the Enel Group expects to
achieve total renewables capacity of about 154 GW by
2030, tripling the Group’s renewables portfolio compa-
red with 2020, as well as increasing the grid’s customer
base by 12 million and promoting the electrification of
energy consumption, increasing the volume of electri-
city sold by almost 30% while at the same time focusing
on the development of beyond-commodity services,
such as public electric mobility or behind-the-meter
storage, in collaboration with partners.
254
254
Integrated Annual Report 2021
• Enable the electrification of customer energy demand.
The Group’s strategic actions will seek to increase value
for customers in the business-to-consumer (B2C), bu-
siness-to-business (B2B) and business-to-government
(B2G) segments, increasing the level of electrification
of these customers while simultaneously improving the
services we deliver. In “Tier 1” countries, it is expected
that this targeted strategy, combined with investments
in the basic asset, will increase the Group’s integrated
margin by to 2.6 times between 2021 and 2030, with the
support of a unified platform capable of managing the
world’s largest customer base among private operators.
• Leverage the creation of value throughout the value
chain.
In order to enhance the strategy of focusing on custo-
mers through the use of platforms, in 2021 the Group
created the Global Customer Operations Business
Line, which is responsible for defining the commer-
cial strategy and for directing the allocation of capi-
tal towards customer needs, leveraging electrification
while achieving excellent service levels.
The refocusing of the Group will go hand in hand with
the simplification and rebalancing of its portfolio,
through:
– a focus on “Tier 1” countries;
– using resources made available from the disposal of
assets that no longer support the Group’s strategy;
and
– mergers and acquisitions designed to improve posi-
tioning, acquire skills or generate synergies.
• Achieve sustainable Net-Zero objectives in advance.
The Group has moved
its “Net-Zero” commitment
forward by 10 years, from 2050 to 2040, for all emissions
along the value chain. The Group plans to abandon ther-
mal generation by 2040, replacing it with new renewables
capacity and hybridize renewables with storage solutions.
Furthermore, we expect that by 2040 the electricity sold
by the Group will be generated entirely from renewables
and, by the same year, the Group will exit the retail gas
sales business.
As a result of the strategic lines of action described abo-
ve, between 2020 and 2030 the Group’s ordinary EBITDA is
expected to increase at a compound annual growth rate of
5-6%, with the ordinary profit of the Group expected to in-
crease at a compound annual rate of 6-7%.
With regard to the period covered by the 2022-2024 Plan, in
2024 the Group’s ordinary EBITDA is forecast to reach €21-
21.6 billion, compared with €19.2 billion in 2021.
The Group’s ordinary profit is expected to rise to €6.7-6.9
billion in 2024, compared with €5.6 billion in 2021.
Enel’s dividend policy for the 2022-2024 period remains
simple, predictable and attractive. Shareholders should re-
ceive a fixed dividend per share (DPS) that is expected to
increase by 13% between 2021 and 2024, reaching €0.43
per share.
strial growth and as part of the Group’s decarbonization
policies;
• an increase in investments in distribution grids, especially
in Italy, with the aim of further improving service quality
and increasing the flexibility and resilience of the grid;
• an increase in investments dedicated to the electrifi-
cation of consumption, with the aim of leveraging the
growth of the customer base, and to achieving conti-
nuous efficiency gains, supported by the development of
global business platforms.
The following developments are expected in 2022:
• an acceleration of investments in renewable energy,
especially in Iberia and North America, to support indu-
Based on the foregoing, the financial targets on which the
Group’s 2022-2024 Plan is based are reported below.
Financial targets
Profit growth
Ordinary EBITDA (€ billions)
Ordinary profit (€ billions)
Value creation
Dividend per share (€)
2021
2022
2023
2024
19.2
5.6
19-19.6
5.6-5.8
20-20.6
6.1-6.3
21-21.6
6.7-6.9
0.38
0.40
0.43
0.43
Outlook for operations
255
255
Other information
Non-EU subsidiaries
At the date of approval by the Board of Directors of the
financial statements of Enel SpA for 2021 – March 17, 2022
– the Enel Group meets the “conditions for the listing of
shares of companies with control over companies establi-
shed and regulated under the law of non-EU countries”
(hereinafter “non-EU subsidiaries”) established by CON-
SOB with Article 15 of the Markets Regulation (approved
with Resolution no. 20249 of December 28, 2017).
Specifically, we report that:
• in application of the materiality criteria for the purpo-
ses of consolidation referred to in Article 15, paragraph
2, of the CONSOB Markets Regulation, 44 non-EU
subsidiaries of the Enel Group have been identified to
which the rules in question apply on the basis of the
consolidated accounts of the Enel Group at December
31, 2020;
• they are: 1) Almeyda Solar SpA (a Chilean company
merged into Enel Green Power Chile SA on January 1,
2021); 2) Ampla Energia e Serviços SA (a Brazilian com-
pany belonging to Enel Américas SA); 3) Aurora Wind
Project LLC (a United States company belonging to
Enel North America Inc.); 4) Celg Distribuição SA - Celg
D (a Brazilian company belonging to Enel Américas SA);
5) Cimarron Bend Wind Holdings I LLC (a United Sta-
tes company belonging to Enel North America Inc.); 6)
Codensa SA ESP (a Colombian company merged into
Emgesa SA ESP on March 1, 2022); 7) Companhia Ener-
gética do Ceará - Coelce (a Brazilian company belon-
ging to Enel Américas SA); 8) Dolores Wind SA de Cv
(a Mexican company belonging to Enel Green Power
SpA); 9) EGPNA Preferred Wind Holdings LLC (a United
States company belonging to Enel North America Inc.);
10) Eletropaulo Metropolitana Eletricidade de São Pau-
lo SA (a Brazilian company belonging to Enel Américas
SA); 11) Emgesa SA ESP (a Colombian company belon-
ging to Enel Américas SA, renamed Enel Colombia SA
ESP on March 1, 2022); 12) Empresa Distribuidora Sur
SA - Edesur (an Argentine company belonging to Enel
Américas SA); 13) Enel Américas SA (a Chilean com-
pany directly controlled by Enel SpA); 14) Enel Brasil SA
(a Brazilian company belonging to Enel Américas SA);
15) Enel Chile SA (a Chilean company directly controlled
by Enel SpA); 16) Enel Distribución Chile SA (a Chilean
company belonging to Enel Chile SA); 17) Enel Distribu-
ción Perú SAA (a Peruvian company belonging to Enel
Américas SA); 18) Enel Finance America LLC (a United
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256
Integrated Annual Report 2021
States company belonging to Enel North America Inc.);
19) Enel Fortuna SA (a Panamanian company belonging
to Enel Américas SA); 20) Enel Generación Chile SA (a
Chilean company belonging to Enel Chile SA); 21) Enel
Generación Perú SAA (a Peruvian company belonging
to Enel Américas SA); 22) Enel Green Power Brasil Par-
ticipações Ltda (a Brazilian company merged into Enel
Brasil SA on November 4, 2021); 23) Enel Green Power
Cachoeira Dourada SA (a Brazilian company belonging
to Enel Américas SA); 24) Enel Green Power Chile SA
(a Chilean company belonging to Enel Chile); 25) Enel
Green Power Diamond Vista Wind Project LLC (a United
States company belonging to Enel North America Inc.);
26) Enel Green Power México S de RL de Cv (a Mexican
company belonging to Enel Green Power SpA); 27) Enel
Green Power North America Inc. (a United States com-
pany belonging to Enel North America Inc.); 28) Enel
Green Power Perú SAC (a Peruvian company belonging
to Enel Américas SA); 29) Enel Green Power Rattlesna-
ke Creek Wind Project LLC (a United States company
belonging to Enel North America Inc.); 30) Enel Green
Power RSA (Pty) Ltd (a South African company belon-
ging to Enel Green Power SpA); 31) Enel Green Power
RSA 2 (RF) (Pty) Ltd (a South African company belonging
to Enel Green Power SpA); 32) Enel Kansas LLC (a Uni-
ted States company belonging to Enel North America
Inc.); 33) Enel North America Inc. (a United States com-
pany directly controlled by Enel SpA); 34) Enel Perú SAC
(a Peruvian company belonging to Enel Américas SA);
35) Enel Rinnovabile SA de Cv (a Mexican company be-
longing to Enel Green Power SpA); 36) Enel Russia PJSC
(a Russian company directly controlled by Enel SpA);
37) Enel X North America Inc. (a United States company
belonging to Enel North America Inc.); 38) Geotérmica
del Norte SA (a Chilean company belonging to Enel Chi-
le SA); 39) High Lonesome Wind Power LLC (a United
States company belonging to Enel North America Inc.);
40) Red Dirt Wind Project LLC (a United States company
belonging to Enel North America Inc.); 41) Rock Creek
Wind Project LLC (a United States company belonging
to Enel North America Inc.); 42) Thunder Ranch Wind
Project LLC (a United States company belonging to
Enel North America Inc.); 43) Tradewind Energy Inc. (a
United States company belonging to Enel North Ame-
rica Inc.); 44) White Cloud Wind Project LLC (a United
States company belonging to Enel North America Inc.);
• the balance sheet and income statement of the above
companies included in the reporting package used for
the purpose of preparing the 2021 consolidated finan-
cial statements of the Enel Group will be made available
to the public by Enel SpA (pursuant to Article 15, para-
graph 1a) of the Markets Regulation) at least 15 days pri-
or to the day scheduled for the Ordinary Shareholders’
Meeting called to approve the 2021 financial statemen-
ts 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, pa-
ragraph 2-bis, of the CONSOB Issuers Regulation ap-
proved with Resolution 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 re-
quest such information for supervisory purposes (pur-
suant to Article 15, paragraph 1b) of the Markets Regu-
lation);
• Enel SpA has verified that the above subsidiaries:
– provide the auditor of the Parent, Enel SpA, with in-
formation 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 ap-
propriate for regular reporting to the management
and auditor of the Parent, Enel SpA, of income state-
ment, balance sheet and financial data necessary for
preparation of the consolidated financial statements
(pursuant to Article 15, paragraph 1 (letter c-ii) of the
Markets Regulation).
Disclosures on financial instruments
The disclosures on financial instruments required by Article
2428, paragraph 2, no. 6-bis of the Italian Civil Code are
reported in the following notes to the consolidated finan-
cial statements: 46 “Financial instruments by category”, 47
“Risk management”, 49 “Derivatives and hedge accoun-
ting” and 50 “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 2021.
Such operations include transactions whose significance,
size, nature of the counterparties, subject matter, method
for calculating the transfer price or timing could give rise
to doubts concerning the propriety and/or completeness
of disclosure, conflicts of interest, preservation of com-
pany assets or protection of non-controlling shareholders.
Subsequent events
Significant events following the close of the year are di-
scussed in note 57 “Events after the reporting period” to
the consolidated financial statements.
Transactions with related parties
For more information on transactions with related parties,
please see note 52 “Related parties” to the consolidated
financial statements.
Other information
257
257
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 correspon-
ding figures for the Parent.
Millions of euro
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
Income
statement
Equity
Income
statement
Equity
at Dec. 31, 2021
at Dec. 31, 2020
4,762
(8,947)
34,967
(104,958)
2,326
687
30,743
(85,641)
13,089
94,975
4,091
78,099
-
-
(5,805)
90
3,189
668
3,857
(8,125)
13,821
-
(1,027)
29,653
12,689
42,342
-
(274)
(4,146)
(74)
2,610
1,012
3,622
(7,046)
13,779
-
(1,609)
28,325
14,032
42,357
258
258
Integrated Annual Report 2021
Other information
259
259
CONSOLIDATED
FINANCIAL STATEMENTS
6. Consolidated
financial statements
Sale of Open Fiber
As part of the “Stewardship” business model,
Open Fiber was sold in 2021, with the recognition
of a capital gain of €1,763 million.
Energy transition
The Group continued the energy transition
process by increasing its investment in new
renewable generation capacity and digitalization.
Impact of climate change
In its valuation processes, the Group has taken
account of the long-term impacts of climate
change.
260
Integrated Annual Report 2021
261
Consolidated financial statements
Consolidated Income Statement
Millions of euro
Notes
2021
2020
of which with
related parties
of which with
related parties
4,038
10
5,385
2,958
202
1
62
71
Revenue
Revenue from sales and services(1) (2)
Other income
Costs
Electricity, gas and fuel(1)
Services and other materials(1)
Personnel expenses
Net impairment losses/(reversals) on trade receivables and other
receivables
Depreciation, amortization and other impairment losses
Other operating costs
Capitalized costs
Net results from commodity contracts(1)
Operating profit(2)
Financial income from derivatives
Other financial income(2)
Financial expense from derivatives
Other financial expense
Net income/(expense) 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 and non-controlling
interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
Earnings per share
Basic earnings per share
Basic earnings per share
Basic earnings per share from continuing operations
Basic earnings/(loss) per share from discontinued operations
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share from continuing operations
Diluted earnings/(loss) per share from discontinued operations
10.a
10.b
[Subtotal]
11.a
11.b
11.c
11.d
11.e
11.f
11.g
84,104
3,902
88,006
49,093
19,609
5,281
1,196
8,691
2,095
(3,117)
[Subtotal]
82,848
12
13
14
13
14
15
16
2,522
7,680
2,718
1,882
1,257
6,114
20
571
5,500
1,643
3,857
-
3,857
3,189
668
0.31
0.31
-
0.31
0.31
-
7,010
6
13,826
3,152
218
24
138
32
63,642
2,362
66,004
26,026
18,366
4,793
1,285
7,163
2,202
(2,385)
57,450
(99)
8,455
1,315
2,676
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
-
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
262
262
Integrated Annual Report 2021
Statement of Consolidated
Comprehensive Income
Millions of euro
Profit for the year
Notes
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 the 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 net liabilities/(assets) for defined benefit plans
Change in the fair value of equity investments in other companies
Total other comprehensive income/(expense) for the year
36
Comprehensive income/(expense) for the year
Attributable to:
- owners of the Parent
- non-controlling interests
2021
3,857
(725)
195
(645)
11
(90)
30
-
(1,224)
2,633
2,562
71
2020
3,622
(268)
(99)
(9)
(1)
(4,510)
(353)
(21)
(5,261)
(1,639)
(1,028)
(611)
Consolidated financial statements
263
263
Statement of Consolidated Financial Position
at Dec. 31, 2021
at Dec. 31, 2020
of which with
related parties
of which with
related parties
Notes
18
21
22
23
24
25
26
27
28
30
84,572
91
18,070
13,821
11,034
704
2,772
530
5,704
3,268
78,718
103
17,668
13,779
8,578
861
1,236
304
5,159
2,494
14
1,120
119
[Total]
140,566
128,900
32
33
27
26
29
31
34
[Total]
35
3,109
16,076
121
530
22,791
8,645
5,002
8,858
65,132
1,242
206,940
1,321
32
157
123
2,401
12,046
176
446
3,471
5,113
3,578
5,906
33,137
1,416
163,453
21
1,144
863
190
164
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
264
264
Integrated Annual Report 2021
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 financial 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]
36
37
38
39
24
26
27
40
41
2,724
7,197
9,259
3,339
6,214
120
4,525
[Total]
87,878
37
37
39
43
26
27
44
42
[Total]
35
13,306
4,031
1,126
16,959
712
24,607
1,433
625
12,959
75,758
962
164,598
206,940
at Dec. 31, 2021
at Dec. 31, 2020
of which with
related parties
of which with
related parties
10,167
(36)
1,721
17,801
29,653
12,689
42,342
10,167
(3)
(39)
18,200
28,325
14,032
42,357
54,500
880
49,519
984
2,964
5,774
7,797
3,606
6,191
-
3,458
79,309
6,345
3,168
1,057
1
194
6
109
161
21
108
4,082
12,859
2,205
12
80
471
3,531
1,275
622
11,651
40,979
808
121,096
163,453
16
37
Consolidated financial statements
265
265
Statement of Changes in Consolidated Equity
(note 36)
Millions of euro
Share capital and reserves attributable to owners of the Parent
Share
premium
reserve
Treasury
share
reserve
Reserve
for equity
instruments
- perpetual
hybrid bonds
At December 31, 2019
Distribution of dividends
Purchase of treasury shares
Equity instruments - perpetual
hybrid bonds
Reserve for share-based
payments (LTI bonus)
Reclassification for curtailment
of defined benefit plans (IAS
19) following signing of the 5th
Endesa Collective Bargaining
Agreement
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-controlling
interests
Comprehensive income/
(expense) for the year
of which:
- other comprehensive
income/(expense)
- profit/(loss) for the year
Share
capital
10,167
-
-
-
-
-
-
-
-
-
-
-
7,487
-
(11)
-
-
-
-
-
-
-
-
-
At December 31, 2020
10,167
7,476
Distribution of dividends
Coupons paid to holders of
hybrid bonds
Reclassifications
Purchase of treasury shares
Reserve for share-based
payments (LTI bonus)
Equity instruments - perpetual
hybrid bonds
Monetary restatement (IAS 29)
Change in the consolidation
scope
Transactions in non-controlling
interests
Comprehensive income/
(expense) for the year
of which:
- other comprehensive income/
(expense)
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
-
-
-
-
-
-
-
-
-
(1)
-
(2)
-
-
-
-
-
-
-
-
-
(3)
-
-
(20)
(13)
-
-
-
-
-
-
-
-
-
-
-
2,386
-
-
-
-
-
-
-
-
Legal
reserve
2,034
Other
reserves
Translation
reserve
Hedging
reserve
2,262
(3,802)
(1,610)
Hedging
instruments
accounted
Actuarial
without loss
controlling
costs reserve
at FVOCI
investments
reserve
of control
interests
Parent
interests Total equity
(147)
21
(119)
(1,043)
(2,381)
(1,572)
19,081
30,377
16,561
46,938
Reserve from
measurement
Reserve from
of financial
equity-
Reserve
from
disposal
Reserve
from
of equity
acquisitions
interests
of non-
Equity
attributable
to owners
Non-
of the
controlling
Retained
earnings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(257)
(13)
(2,987)
(294)
(2,987)
(294)
-
-
(95)
(22)
2,610
(1,028)
(611)
(1,639)
280
(709)
(729)
(95)
(22)
-
(3,638)
(1,623)
(5,261)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
203
203
-
(39)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
11
-
10
(9)
(9)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
55
(648)
(648)
106
(28)
(231)
(231)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
11
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,487)
(3,487)
(1,356)
(4,843)
-
-
-
(106)
(1)
105
(2)
(71)
(36)
-
-
-
-
318
(13)
2,386
6
-
(1)
105
(20)
(71)
(13)
-
9
3,181
318
45
147
-
-
-
-
-
-
-
-
-
-
225
31
(13)
2,386
6
-
(1)
252
3,622
42,357
(5,057)
(71)
(13)
-
9
3,181
543
76
2,610
2,610
1,012
(3,791)
(3,791)
(1,266)
3,189
2,562
71
2,633
-
(627)
(597)
(1,224)
3,189
3,189
668
3,857
(140)
449
(8)
(912)
(404)
(1,316)
2,386
2,034
2,268
(7,046)
(1,917)
(242)
(1)
(128)
(1,196)
(2,381)
(1,292)
18,200
28,325
14,032
-
-
-
-
-
3,181
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,234)
-
-
-
-
-
-
-
(10)
18
155
(359)
155
-
(359)
-
At December 31, 2021
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
(721)
(1,325)
(2,378)
(843)
17,801
29,653
12,689
42,342
266
266
Integrated Annual Report 2021
Millions of euro
Share capital and reserves attributable to owners of the Parent
Share
capital
10,167
Reserve
for equity
Share
Treasury
instruments
premium
reserve
share
- perpetual
reserve
hybrid bonds
7,487
(11)
(1)
-
(2)
2,386
Legal
reserve
2,034
Other
Translation
reserves
reserve
Hedging
reserve
2,262
(3,802)
(1,610)
At December 31, 2019
Distribution of dividends
Purchase of treasury shares
Equity instruments - perpetual
hybrid bonds
Reserve for share-based
payments (LTI bonus)
Reclassification for curtailment
of defined benefit plans (IAS
19) following signing of the 5th
Endesa Collective Bargaining
Agreement
Reclassifications
Monetary restatement (IAS 29)
Transactions in non-controlling
interests
Comprehensive income/
(expense) for the year
of which:
- other comprehensive
income/(expense)
- profit/(loss) for the year
Distribution of dividends
Coupons paid to holders of
hybrid bonds
Reclassifications
Purchase of treasury shares
Reserve for share-based
payments (LTI bonus)
Equity instruments - perpetual
hybrid bonds
Monetary restatement (IAS 29)
Change in the consolidation
Transactions in non-controlling
Comprehensive income/
(expense) for the year
scope
interests
of which:
(expense)
- other comprehensive income/
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
(20)
(13)
3,181
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(257)
(13)
(2,987)
(294)
(2,987)
(294)
(10)
18
(1,234)
155
(359)
155
-
(359)
-
At December 31, 2020
10,167
7,476
(3)
2,386
2,034
2,268
(7,046)
(1,917)
At December 31, 2021
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
Reserve from
measurement
of financial
instruments
at FVOCI
Reserve from
equity-
accounted
investments
Hedging
costs reserve
Actuarial
reserve
Reserve
from
disposal
of equity
interests
without loss
of control
Reserve
from
acquisitions
of non-
controlling
interests
Equity
attributable
to owners
of the
Parent
Retained
earnings
Non-
controlling
interests Total equity
(147)
21
(119)
(1,043)
(2,381)
(1,572)
19,081
30,377
16,561
46,938
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(95)
(22)
(95)
-
(242)
-
-
-
-
-
-
-
-
-
203
203
-
(39)
(22)
-
(1)
-
-
-
-
-
-
-
-
-
11
11
-
10
-
-
-
-
-
-
-
-
(9)
(9)
-
-
-
-
-
106
-
-
(28)
(231)
(231)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
280
-
-
-
(3,487)
(3,487)
(1,356)
(4,843)
-
-
-
(106)
(1)
105
(2)
(13)
2,386
6
-
(1)
105
(20)
-
-
-
-
-
147
(13)
2,386
6
-
(1)
252
(709)
(729)
2,610
(1,028)
(611)
(1,639)
-
(3,638)
(1,623)
(5,261)
2,610
2,610
1,012
(128)
(1,196)
(2,381)
(1,292)
18,200
28,325
14,032
(3,791)
(3,791)
(1,266)
-
-
-
-
-
-
-
55
-
(648)
(648)
-
-
-
-
-
-
-
-
-
(140)
11
11
-
-
-
-
-
-
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
449
-
-
-
3,622
42,357
(5,057)
(71)
-
(13)
9
3,181
543
76
(71)
-
(13)
9
3,181
318
45
-
-
-
-
-
225
31
(71)
-
(36)
-
-
318
-
(8)
(912)
(404)
(1,316)
3,189
2,562
71
2,633
-
(627)
(597)
(1,224)
3,189
3,189
668
3,857
(721)
(1,325)
(2,378)
(843)
17,801
29,653
12,689
42,342
Consolidated financial statements
267
267
Consolidated Statement of Cash Flows
Millions of euro
Pre-tax profit
Adjustments for:
Net impairment losses/(reversals) on trade receivables and other receivables
Depreciation, amortization and other impairment losses
Net financial (income)/expense(1)
Net (gains)/losses from equity-accounted investments
Changes in net working capital:
- inventories
- trade receivables
- trade payables
- other contract assets
- other contract liabilities
- other assets/liabilities(1)
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
Sale/(Purchase) of treasury shares
Dividends and interim dividends paid
Coupons paid to holders of hybrid bonds
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(2)
Cash and cash equivalents at the end of the year(3)
Notes
11.d
11.e
13-14
15
32
33
43
27
27
13-14
13-14
5,500
1,196
8,691
2,751
(571)
(1,097)
(649)
(4,951)
4,357
56
75
15
1,578
(1,300)
1,653
(4,411)
(304)
16
(1,846)
(1,771)
10,069
18-21
(10,545)
22
(1,656)
8
8
46.3
46.3
(907)
(283)
61
2,455
(10,875)
15,895
(11,321)
3,339
(1,295)
2,213
(13)
(4,970)
(71)
3,777
17
2,988
6,002
8,990
2021
2020
of which with
related parties
of which with
related parties
33
(86)
34
62
(71)
(104)
(176)
(458)
1,877
(4)
31
138
(32)
5,463
1,285
7,163
2,693
299
(1,654)
(8)
(1,350)
698
(15)
(142)
(837)
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
(118)
(1,950)
(712)
(1,067)
588
(13)
(4,742)
-
(3,972)
(497)
(3,078)
9,080
6,002
(1) For comparative purposes only, in 2020 the component recognized through profit or loss deriving from the remeasurement at fair value of the financial
assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12 was reclassified from
financial income to revenue. The latter classification did not have an impact on cash flows from operating activities.
(2) Of which cash and cash equivalents equal to €5,906 million at January 1, 2021 (€9,029 million at January 1, 2020), short-term securities equal to €67 million
at January 1, 2021 (€51 million at January 1, 2020) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €29 million at January
1, 2021.
(3) Of which cash and cash equivalents equal to €8,858 million at December 31, 2021 (€5,906 million at December 31, 2020), short-term securities equal to €88
million at December 31, 2021 (€67 million at December 31, 2020) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €44
million at December 31, 2021 (€29 million at December 31, 2020).
268
268
Integrated Annual Report 2021
Notes to the consolidated financial
statements
Basis of presentation
1. Form and content of the consolidated financial statements
Enel SpA has its registered office in Viale Regina Margher-
ita 137, Rome, Italy, and since 1999 has been listed on the
Milan stock exchange.
There were no changes in the company name in 2021.
Enel is an energy multinational and is one of the world’s
leading integrated operators in the electricity and gas in-
dustries, with a special focus on Europe and Latin America.
The consolidated financial statements as at and for the
year ended December 31, 2021 comprise the financial
statements of Enel SpA, its subsidiaries and Group hold-
ings in associates and joint ventures, as well as the Group’s
share of the assets, liabilities, costs and revenue of joint
operations (“the Group”).
A list of the subsidiaries, associates, joint operations and
joint ventures included in the consolidation scope is at-
tached.
These consolidated financial statements were approved
and authorized for publication by the Board of Directors
on March 17, 2022.
These consolidated financial statements have been audit-
ed by KPMG SpA.
Basis of presentation
The consolidated financial statements as at and for the
year ended December 31, 2021 have been prepared in
accordance with international accounting standards (In-
ternational Accounting Standards - IAS and International
Financial Reporting Standards - IFRS) issued by the In-
ternational Accounting Standards Board (IASB), the inter-
pretations of the IFRS Interpretations Committee (IFRSIC)
and the Standing Interpretations Committee (SIC), recog-
nized in the European Union pursuant to Regulation (EC)
no. 1606/2002 and in effect as of the close of the year. All
of these standards and interpretations are hereinafter re-
ferred to as the “IFRS-EU”.
The consolidated financial statements have also been pre-
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 con-
solidated income statement, the statement of consolidat-
ed comprehensive income, the statement of consolidated
financial position, the statement of consolidated changes
in equity and the consolidated statement of cash flows and
the related notes.
The assets and liabilities recognized in the statement of
consolidated 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 equiv-
alents, 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 normal operating cycle of the Group.
The consolidated income statement classifies costs on the
basis of their nature, with separate reporting of profit from
continuing operations and profit/(loss) from discontinued
operations attributable to owners of the Parent and to
non-controlling interests.
The consolidated statement of cash flows is prepared us-
ing the indirect method, with separate reporting of any
cash flows by operating, investing and financing activities
associated with discontinued operations.
In particular, although the Group does not diverge from the
provisions of IAS 7 in the classification of items:
• cash flows from operating activities report cash flows
from core operations, interest on loans granted and ob-
tained and dividends received from associates or joint
ventures;
• investing activities comprise investments in property,
plant and equipment and intangible assets and dispos-
als of such assets and contract assets related to ser-
vice concession arrangements. They include, also, the
effects of business combinations in which the Group
acquires or loses control of companies, as well as other
minor investments;
• cash flows from financing activities include cash flows
generated by liability management transactions and
leases, dividends and interim dividends paid to owners
of the Parent and non-controlling interests and the ef-
Notes to the consolidated financial statements
269
269
fects of transactions in non-controlling interests that
do not change the status of control of the companies
involved;
• a separate item is used to report the impact of exchange
rates on cash and cash equivalents and their impact on
profit or loss is eliminated in full in order to neutralize
the effect on cash flows from operating activities.
For more information on cash flows as reported in the
statement of cash flows, please see the note on “Cash
flows” in the Report on Operations.
The consolidated financial statements have been prepared
on a going concern basis using the cost method, with the
exception of items measured at fair value in accordance
with IFRS, as explained in the measurement bases applied
to each individual item, and of non-current assets and dis-
posal groups classified as held for sale, which are meas-
ured at the lower of their carrying amount and fair value
less costs to sell.
The consolidated financial statements are presented in
euro, the functional currency of the Parent Enel SpA. All
figures are shown in millions of euro unless stated other-
wise.
The consolidated income statement, the statement of
consolidated financial position and the consolidated
statement of cash flows report transactions with related
parties, the definition of which is given in note 2.2 “Signifi-
cant accounting policies”.
The consolidated financial statements provide compara-
tive information in respect of the previous year.
2. Accounting policies
2.1 Use of estimates and management
judgment
Preparing the consolidated financial statements under IF-
RS-EU requires management to take decisions and make
estimates and assumptions that may impact the carrying
amounts of revenue, costs, assets and liabilities and the re-
lated disclosures concerning the items involved as well as
contingent assets and liabilities at the reporting date. The
estimates and management’s judgments are based on pre-
vious experience and other factors considered reasonable
in the circumstances. They are formulated when the carry-
ing amount of assets and liabilities is not easily determined
from other sources. The actual results may therefore differ
from these estimates. The estimates and assumptions are
periodically revised and the effects of any changes are re-
flected through profit or loss if they only involve that period.
If the revision involves both the current and future periods,
the change is recognized in the period in which the revision
is made and in the related future periods.
In order to enhance understanding of the consolidated fi-
nancial statements, the following sections examine the main
items affected by the use of estimates and the cases that
reflect management judgments to a significant degree, un-
derscoring the main assumptions used by management in
measuring these items in compliance with the IFRS-EU. The
critical element of such valuations is the use of assumptions
and professional judgments concerning issues that are by
their very nature uncertain.
Changes in the conditions underlying the assumptions and
judgments could have a substantial impact on future results.
The information included in the consolidated financial
statements is selected on the basis of a materiality analysis
carried out in accordance with the requirements of Prac-
tice Statement 2 “Making Materiality Judgments”, issued by
the International Accounting Standards Board (IASB), and on
the basis of investor expectations.(22) In addition, as regards
the impact of COVID-19, the continuing instability connect-
ed with the pandemic creates uncertainty in forecasts for
future developments in the macroeconomic, financial and
business environment in which the Group operates, which
is reflected in the assessments and the estimates produced
by management regarding the carrying amounts of the as-
sets and liabilities affected by greater volatility. Please see
note 6 “COVID-19 disclosures” for details on the areas of the
financial statements most affected by the COVID-19 pan-
demic, drawing on the information available at December
31, 2021 and considering the constantly evolving scenario.
With regard to the effects of climate change issues, the
Group believes that climate change represents an implic-
it element in the application of the methodologies and
models used to perform estimates in the valuation and/or
measurement of certain accounting items. Furthermore,
the Group has also taken account of the impact of climate
change in the significant judgments made by management.
In this regard, the main items included in the consolidat-
ed financial statements at December 31, 2021 affected by
management’s use of estimates and judgments refer to the
impairment of non-financial assets, obligations connected
with the energy transition, including those for decommis-
sioning and site restoration of certain generation plants,
and the impairment of inventories of a number of coal-fired
plants. For further details on these items, see note 18 “Prop-
erty, plant and equipment”, note 23 “Goodwill”, note 32 “In-
ventories” and note 39 “Provisions for risks and charges”.
(22) “Information is material if omitting, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general
purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.”
270
270
Integrated Annual Report 2021
Use of estimates
Revenue from contracts with customers
Revenue from supply of electricity and gas to end users is
recognized at the time the electricity or gas is delivered and
includes, in addition to amounts invoiced on the basis of pe-
riodic (and pertaining to the year) meter readings or on the
volumes notified by distributors and transporters, an esti-
mate of the electricity and gas delivered during the period
but not yet invoiced that is equal to the difference between
the amount of electricity and gas delivered to the distribu-
tion network and that invoiced in the period, taking account
of any network losses. Revenue between the date of the last
meter reading and the year-end is based on estimates of
the daily consumption of individual customers, primarily de-
termined on their historical information, adjusted to reflect
the climate factors or other matters that may affect the es-
timated consumption.
For more details on such revenue, see note 10.a “Revenue
from sales and services”.
Impairment of non-financial assets
When the carrying amount of property, plant and equip-
ment, investment property, intangible assets, right-of-use
assets, goodwill and investments in associates/joint ven-
tures exceeds its recoverable amount, which is the higher
of the fair value less costs to sell and the value in use, the
assets are impaired.
Impairment tests are carried out in accordance with the
provisions of IAS 36, as described in greater detail in note
23 “Goodwill”.
In order to determine the recoverable amount, the Group
generally adopts the value in use criterion. Value in use is
based on the estimated future cash flows generated by
the asset, discounted to their present value using a pre-tax
discount rate that reflects the current market assessment
of the time value of money and of the specific risks of the
asset.
Future cash flows used to determine value in use are based
on the most recent Business Plan, approved by the manage-
ment, containing forecasts for volumes, revenue, operating
costs and investments. These projections cover the next
three years. For subsequent years, account is taken of:
• assumptions concerning the long-term evolution of
the main variables considered in the calculation of cash
flows, as well as the average residual useful life of the
assets or the duration of the concessions, based on the
specific characteristics of the businesses;
• a long-term growth rate equal to the long-term growth
of electricity demand and/or inflation (depending on the
country and business) that does not in any case exceed
the average long-term growth rate of the market in-
volved.
The recoverable amount is sensitive to the estimates and
assumptions used in the calculation of cash flows and the
discount rates applied. Nevertheless, possible changes in
the underlying assumptions on which the calculation of
such amounts is based could generate different recover-
able amounts. The analysis of each group of non-financial
assets is unique and requires management to use estimates
and assumptions considered prudent and reasonable in the
specific circumstances.
In the current scenario, the analysis of impairment indica-
tors has become even more important as an attempt was
also made to assess whether the impact of the COVID-19
pandemic could reduce the carrying amount of certain
non-financial assets as at December 31, 2021. For this rea-
son, the Group has carefully considered the effects of the
COVID-19 pandemic in determining the existence of impair-
ment indicators for non-financial assets.
Furthermore, in line with its business model and in the con-
text of the acceleration of the decarbonization of the gen-
eration mix and driving the energy-transition process, the
Group has also carefully assessed whether climate change
issues have affected the reasonable and supportable as-
sumption used to estimate expected cash flows. In this re-
gard, where necessary, the Group has also taken account
of the long-term impact of climate change, in particular by
considering in the estimation of the terminal value a long-
term growth rate in line with the change in electricity de-
mand determined using energy models for each country.
Information on the main assumptions used to estimate the
recoverable amount of assets with reference to the impacts
relating to climate change, as well as information on chang-
es in these assumptions, is provided in note 23 “Goodwill”.
Expected credit losses on financial assets
At the end of each reporting period, the Group recogniz-
es a loss allowance for expected credit losses on trade re-
ceivables and other financial assets measured at amortized
cost, debt instruments measured at fair value through other
comprehensive income, contract assets and all other assets
in scope.
Loss allowances for financial assets are based on assump-
tions about risk of default and on the measurement of ex-
pected credit losses. Management uses judgment in mak-
ing these assumptions and selecting the inputs for the im-
pairment calculation, based on the Group’s past experience,
current market conditions as well as forward-looking esti-
mates at the end of each reporting period.
The expected credit loss (i.e., ECL) – determined consider-
ing probability of default (PD), loss given default (LGD), and
exposure at default (EAD) – is the difference between all
contractual cash flows that are due in accordance with the
contract and all cash flows that are expected to be received
(including all shortfalls) discounted at the original effective
interest rate (EIR).
In particular, for trade receivables, contract assets and
lease receivables, including those with a significant fi-
nancial component, the Group applies the simplified ap-
Notes to the consolidated financial statements
271
271
proach, determining expected credit losses over a period
corresponding to the entire life of the asset, generally
equal to 12 months.
Based on the specific reference market and the regulatory
context of the sector, as well as expectations of recovery
after 90 days, for such assets, the Group mainly applies a
default definition of 180 days past due to determine ex-
pected credit losses, as this is considered an effective in-
dication of a significant increase in credit risk. Accordingly,
financial assets that are more than 90 days past due are
generally not considered to be in default, except for some
specific regulated markets.
For trade receivables and contract assets the Group mainly
applies a collective approach based on grouping trade re-
ceivables and contract assets into specific clusters, taking
into account the specific regulatory and business context.
Only if the trade receivables are deemed to be individually
significant by management and there is specific informa-
tion about any significant increase in credit risk, does the
Group apply an analytical approach.
In case of individual assessment, PD is mainly obtained
from an external provider.
Conversely, for collective assessment, trade receivables
are grouped based on shared credit risk characteristics
and past due information, considering a specific definition
of default.
Based on each business and local regulatory framework as
well as differences in customer portfolios also in terms of
risk, default rates and recovery expectations, specific clus-
ters are defined.
The contract assets are considered to have substantially
the same risk characteristics as the trade receivables for
the same types of contracts.
In order to measure the ECL for trade receivables on a
collective basis, as well as for contract assets, the Group
considers the following assumptions related to ECL pa-
rameters:
• PD, assumed as to be the average default rate, is cal-
culated on a cluster basis and taking into consideration
minimum 24 month historical data;
• LGD is a function of the default bucket’s recovery rates,
discounted at the EIR; and
• EAD is estimated as the carrying exposure at the report-
ing date net of cash deposits, including invoices issued
but not expired and invoices to be issued.
Based on specific management evaluations, the for-
ward-looking adjustment can be applied considering
qualitative and quantitative information in order to reflect
possible future events and macroeconomic scenarios,
which may affect the risk of the portfolio or the financial
instrument.
For additional details on the key assumptions and inputs
272
272
Integrated Annual Report 2021
used please see note 46 “Financial instruments by cate-
gory”.
Depreciable amount of certain elements of Italian
hydroelectric plants subsequent to enactment of Law
134/2012
Law 134 of August 7, 2012 containing “urgent measures for
growth” (published in the Gazzetta Ufficiale of August 11,
2012), introduced a sweeping overhaul of the rules gov-
erning hydroelectric concessions. Among its various pro-
visions, the law establishes that five years before the expi-
ration of a major hydroelectric water diversion concession
and in cases of lapse, relinquishment or revocation, where
there is no prevailing public interest for a different use of
the water, incompatible with its use for hydroelectric gen-
eration, the competent public entity shall organize a pub-
lic call for tenders for the award for consideration of the
concession for a period ranging from 20 to a maximum of
30 years.
In order to ensure operational continuity, the law also gov-
erns the methods of transferring ownership of the busi-
ness unit necessary to operate the concession, including
all legal relationships relating to the concession, from the
outgoing concession holder to the new concession holder,
in exchange for payment of a price to be determined in ne-
gotiations between the departing concession holder and
the grantor agency, taking due account of the following
elements:
• for intake and governing works, penstocks and outflow
channels, which under the consolidated law governing
waters and electrical plants are to be relinquished free
of charge (Article 25 of Royal Decree 1775 of December
11, 1933), the revalued cost less government grants re-
lated to assets, also revalued, received by the conces-
sion holder for the construction of such works, depre-
ciated for ordinary wear and tear;
• for other property, plant and equipment, the market val-
ue, meaning replacement value, reduced by estimated
depreciation for ordinary wear and tear.
While acknowledging that the new regulations introduce
important changes as to the transfer of ownership of the
business unit with regard to the operation of the hydroe-
lectric concession, the practical application of these prin-
ciples faces difficulties, given the uncertainties that do not
permit the formulation of a reliable estimate of the value
that can be recovered at the end of existing concessions
(residual value).
Accordingly, management has decided it could not pro-
duce a reasonable and reliable estimate of residual value.
The fact that the legislation requires the new concession
holder to make a payment to the departing concession
holder prompted management to review the depreciation
schedules for assets classified as to be relinquished free
of charge prior to Law 134/2012 (until the year ended on
December 31, 2011, given that the assets were to be relin-
quished free of charge, the depreciation period was equal
to the closest date between the term of the concession
and the end of the useful life of the individual asset), cal-
culating depreciation no longer over the term of the con-
cession but, if longer, over the useful life of the individual
assets. If additional information becomes available to ena-
ble the calculation of residual value, the carrying amounts
of the assets involved will be adjusted prospectively.
Determining the fair value of financial instruments
The fair value of financial instruments is determined on the
basis of prices directly observable in the market, where
available, or, for unlisted financial instruments, using spe-
cific valuation techniques (mainly based on present val-
ue) that maximize the use of observable market inputs. In
rare circumstances where this is not possible, the inputs
are estimated by management taking due account of the
characteristics of the instruments being measured.
For more information on financial instruments measured
at fair value, please see note 50 “Assets and liabilities
measured at fair value”.
In accordance with IFRS 13, the Group includes a meas-
urement of credit risk, both of the counterparty (Credit
Valuation Adjustment or CVA) and its own (Debit Valua-
tion Adjustment or DVA), in order to adjust the fair value
of financial instruments for the corresponding amount of
counterparty risk, using the method discussed in note 50
“Assets and liabilities measured at fair value”.
Changes in the assumptions made in estimating the input
data could have an impact on the fair value recognized for
those instruments, especially in current conditions where
markets are volatile and the economic outlook is highly un-
certain and subject to rapid change.
Development expenditure
In order to determine the recoverability of development
expenditure, the recoverable amount is estimated mak-
ing assumptions regarding any further cash outflow that is
expected to be incurred before the asset is ready for use
or sale, the discount rates to be applied and the expected
period of benefits.
Pensions and other post-employment benefits
Some of the Group’s employees participate in pension
plans offering benefits based on their wage history and
years of service. Certain employees are also eligible for
other post-employment benefit schemes.
The expenses and liabilities of such plans are calculated on
the basis of estimates carried out by consulting actuaries,
who use a combination of statistical and actuarial elements
in their calculations, including statistical data on past years
and forecasts of future costs. Other components of the
estimation that are considered include mortality and re-
tirement rates as well as assumptions concerning future
developments in discount rates, the rate of wage increas-
es, the inflation rate and trends in healthcare cost.
These estimates can differ significantly from actual devel-
opments owing to changes in economic and market con-
ditions, increases or decreases in retirement rates and the
lifespan of participants, as well as changes in the effective
cost of healthcare.
Such differences can have a substantial impact on the
quantification of pension costs and other related expens-
es.
With regard to the COVID-19 pandemic, the Group has
carefully analyzed the possible impacts of the economic
crisis generated by the emergency on the actuarial as-
sumptions used in the measurement of the actuarial liabil-
ities and assets serving the plans.
For more details on the main actuarial assumptions adopt-
ed, please see note 38.
Provisions for risks and charges
For more details on provisions for risks and charges, please
see note 39 “Provisions for risks and charges”.
Note 55 “Contingent assets and liabilities” also provides
information regarding the most significant contingent as-
sets and liabilities for the Group at year end.
Litigation
The Group is involved in various civil, administrative and tax
disputes connected with the normal pursuit of its activi-
ties that could give rise to significant liabilities. It is not al-
ways objectively possible to predict the outcome of these
disputes. The assessment of the risks associated with this
litigation is based on complex factors whose very nature
requires recourse to management judgments, even when
taking account of the contribution of external advisors as-
sisting the Group, about whether to classify them as con-
tingent liabilities or liabilities.
Provisions have been recognized to cover all significant li-
abilities for cases in which legal counsel feels an adverse
outcome is likely and a reasonable estimate of the amount
of the expense can be made.
Obligations associated with generation plants,
including decommissioning and site restoration
Generation activities may entail obligations for the opera-
tor with regard to future interventions that will have to be
performed following the end of the operating life of the
plant.
Such interventions may involve the decommissioning of
plants and site restoration, or other obligations linked to
the type of generation technology involved. The nature of
such obligations may also have a major impact on the ac-
counting treatment used for them.
In the case of nuclear power plants, where the costs re-
gard both decommissioning and the storage of waste
fuel and other radioactive materials, the estimation of the
future cost is a critical process, given that the costs will
Notes to the consolidated financial statements
273
273
er than being a general incremental borrowing rate. In
particular, the risk of default is mitigated for the lessors
as they have the right to reclaim the underlying asset
itself.
For more information on lease liabilities, please see note
46 “Financial instruments by category”.
Income tax
Recovery of deferred tax assets
At December 31, 2021, the consolidated financial state-
ments report deferred tax assets in respect of tax loss-
es or tax credits usable in subsequent years and income
components whose deductibility is deferred in an amount
whose future recovery is considered by management to
be highly probable.
The recoverability of such assets is subject to the achieve-
ment of future profits sufficient to absorb such tax losses
and to use the benefits of the other deferred tax assets.
Significant management judgment is required to assess
the probability of recovering deferred tax assets, consid-
ering all negative and positive evidence, and to determine
the amount that can be recognized, based upon the likely
timing and the level of future taxable profits together with
future tax planning strategies and the tax rates applicable
at the date of reversal. However, where the Group should
become aware that it is unable to recover all or part of
recognized tax assets in future years, the consequent
adjustment would be taken to profit or loss in the year in
which this circumstance arises.
The recoverability of deferred tax assets is reviewed at
the end of each period. Deferred tax assets not recog-
nized are reassessed at each reporting date in order to
verify the conditions for their recognition.
Where required, the Group monitored the recovery times
of deferred tax assets as well as those relating to the re-
versal of deductible temporary differences, if any, as a re-
sult of the greater uncertainty caused by the COVID-19
pandemic.
For more detail in deferred tax assets recognized or not
recognized, please see note 24 “Deferred tax assets and
liabilities”.
be incurred over a very long span of time, estimated at up
to 100 years.
The obligation, based on financial and engineering as-
sumptions, is calculated by discounting the expected fu-
ture cash flows that the Group considers it will have to
pay to meet the obligations it has assumed.
The discount rate used to determine the present value
of the liability is the pre-tax risk-free rate and is based
on the economic parameters of the country in which the
plant is located.
That liability is quantified by management on the basis of
the technology existing at the measurement date and is re-
viewed each year, taking account of developments in stor-
age, decommissioning and site restoration technology, as
well as the ongoing evolution of the legislative framework
governing health and environmental protection.
Subsequently, the value of the obligation is adjusted to
reflect the passage of time and any changes in estimates.
Onerous contracts
In order to identify an onerous contract, the Group esti-
mates the non-discretionary costs necessary to fulfil the
obligations assumed (including any penalties) under the
contract and the economic benefits that are presumed
to be obtained from the contract.
Leases
When the interest rate implicit in the lease cannot be
readily determined, the Group uses the incremental bor-
rowing rate (IBR) at the lease commencement date to cal-
culate the present value of the lease payments. This is the
interest rate that the lessee would have to pay to borrow
over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right
of use asset in a similar economic environment. When no
observable inputs are available, the Group estimates the
IBR making assumptions to reflect the terms and condi-
tions of the lease and certain lessee-specific estimates.
One of the most significant judgments for the Group in
adopting IFRS 16 is determining this IBR necessary to cal-
culate the present value of the lease payments required
to be paid to the lessor. The Group approach to deter-
mine an IBR is based on the assessment of the following
three key components:
• the risk free rate, that consider the currency flows of
the lease payments, the economic environment where
the lease contract has been negotiated and also the
lease term;
• the credit spread adjustment, in order to calculate an
IBR that is specific for the lessee considering any un-
derlying Parent or other guarantee;
• the lease related adjustments, in order to reflect into
the IBR calculation the fact that the discount rate is
directly linked to the type of the underlying asset, rath-
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Management judgment
Identification of cash generating units (CGUs)
For impairment testing, if the recoverable amount cannot
be determined for an individual asset, the Group identi-
fies the smallest group of assets that generate largely in-
dependent cash inflows. The smallest group of assets that
generates cash inflows that are largely independent of the
cash inflows from other assets or group of assets is a CGU.
Identifying such CGUs involves management judgments
regarding the specific nature of the assets and the busi-
ness involved (geographical segment, business segment,
regulatory framework, etc.) and the evidence that the cash
inflows of the group of assets are largely independent of
those associated with other assets (or groups of assets).
The assets of each CGU are also identified on the basis of
the manner in which management manages and monitors
those assets within the business model adopted. In par-
ticular, the number and scope of the CGUs are updated
systematically to reflect the impact of new business com-
binations and reorganizations carried out by the Group,
and to take account of external factors that could influ-
ence the ability of assets to generate independent cash
inflows.
In particular, if certain specific identified assets owned by
the Group are impacted by adverse economic or operating
conditions that undermine their capacity to contribute to
the generation of cash flows, they can be isolated from the
rest of the assets of the CGU, undergo separate analysis of
their recoverability and be impaired where necessary.
The CGUs identified by management to which the goodwill
recognized in these consolidated financial statements has
been allocated and the criteria used to identify the CGUs
are indicated in note 23 “Goodwill”.
Determining the useful life of non-financial assets
In determining the useful life of property, plant and equip-
ment and intangible assets with a finite useful life, the
Group considers not only the future economic benefits –
contained in the assets – obtained through their use, but
also many other factors, such as physical wear and tear,
the technical, commercial or other obsolescence of the
product or service produced with the asset, legal or similar
limits (e.g., safety, environmental or other restrictions) on
the use of the asset, if the useful life of the asset depends
on the useful life of other assets.
Furthermore, in estimating the useful lives of the assets
concerned, the Group has taken account of its commit-
ment under the Paris Agreement. For more information on
this issue, please see note 18 “Property, plant and equip-
ment”.
Determination of the existence of control
Under the provisions of IFRS 10, control is achieved when
the Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability
to affect those returns through its power over the investee.
Power is defined as the current ability to direct the relevant
activities of the investee based on existing substantive
rights.
The existence of control does not depend solely on owner-
ship of a majority investment, but rather it arises from sub-
stantive rights that each investor holds over the investee.
Consequently, management must use its judgment in as-
sessing whether specific situations determine substantive
rights that give the Group the power to direct the relevant
activities of the investee in order to affect its returns.
For the purpose of assessing control, management analyz-
es all facts and circumstances including any agreements
with other investors, rights arising from other contractu-
al arrangements and potential voting rights (call options,
warrants, put options granted to non-controlling share-
holders, etc.). These other facts and circumstances could
be especially significant in such assessment when the
Group holds less than a majority of voting rights, or similar
rights, in the investee.
Following such analysis of the existence of control, in ap-
plication of IFRS 10 the Group consolidated certain com-
panies (Emgesa and Codensa) on a line-by-line basis even
though it did not hold more than half of the voting rights,
determining that the requirements for de facto control ex-
isted.
Furthermore, even if it holds more than half of the voting
rights in another entity, the Group considers all the rele-
vant facts and circumstances in assessing whether it con-
trols the investee.
The Group reassesses whether or not it controls an in-
vestee if facts and circumstances indicate that there are
changes to one or more of the elements considered in
verifying the existence of control.
Determination of the existence of joint control and of
the type of joint arrangement
Under the provisions of IFRS 11, a joint arrangement is an
agreement where two or more parties have joint control.
Joint control exists only when the decisions over the rele-
vant activities require the unanimous consent of the par-
ties that share joint control.
A joint arrangement can be configured as a joint venture
or a joint operation. Joint ventures are joint arrangements
whereby the parties that have joint control have rights to
the net assets of the arrangement. Conversely, joint op-
erations are joint arrangements whereby the parties that
have joint control have rights to the assets and obligations
for the liabilities relating to the arrangement.
In order to determine the existence of the joint control and
the type of joint arrangement, management must apply
judgment and assess its rights and obligations arising from
the arrangement. For this purpose, the management con-
siders the structure and legal form of the arrangement, the
Notes to the consolidated financial statements
275
275
terms agreed by the parties in the contractual arrangement
and, when relevant, other facts and circumstances.
Following that analysis, the Group has considered its interest
in Asociación Nuclear Ascó-Vandellós II as a joint operation.
The Group re-assesses whether or not it has joint control
if facts and circumstances indicate that changes have oc-
curred in one or more of the elements considered in veri-
fying the existence of joint control and the type of the joint
arrangement.
For more information on the Group’s investments in joint
ventures, please see note 25 “Equity-accounted invest-
ments”.
Determination of the existence of significant influence
over an associate
Associates are those in which the Group exercises signifi-
cant influence, i.e., the power to participate in the financial
and operating policy decisions of the investee but not exer-
cise control or joint control over those policies. In general, it
is presumed that the Group has a significant influence when
it has an ownership interest of 20% or more.
In order to determine the existence of significant influence,
management must apply judgment and consider all facts
and circumstances.
The Group re-assesses whether or not it has significant in-
fluence if facts and circumstances indicate that there are
changes to one or more of the elements considered in ver-
ifying the existence of significant influence.
For more information on the Group’s equity investments in
associates, please see note 25 “Equity-accounted invest-
ments”.
Application of “IFRIC 12 - Service concession
arrangements” to concessions
IFRIC 12 applies to “public-to-private” service concession
arrangements, which can be defined as contracts under
which the operator is obligated to provide public services,
i.e., give access to major economic and social services for a
certain period of time, on behalf of a public entity (the gran-
tor). In these contracts, the grantor conveys to an operator
the right to manage the infrastructure used to provide ser-
vices.
More specifically, IFRIC 12 gives guidance on the accounting
by operators for “public-to-private” service concession ar-
rangements in the event that:
• the grantor controls or regulates what services the op-
erator must provide with the infrastructure, to whom it
must provide them, and at what price; and
• the grantor controls – through ownership, beneficial en-
titlement or otherwise – any significant residual interest
in the infrastructure at the end of the term of the ar-
rangement.
In assessing the applicability of these requirements for the
Group, as operator, management carefully analyzed existing
concessions.
276
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Integrated Annual Report 2021
On the basis of that analysis, the provisions of IFRIC 12 are
applicable to some of the infrastructure of a number of
companies that operate primarily in Brazil.
Further details about the infrastructure used in the service
concession arrangements in the scope of IFRIC 12 are pro-
vided in note 19 “Infrastructure within the scope of ‘IFRIC
12 - Service concession arrangements’”.
Revenue from contracts with customers
In the process of applying IFRS 15, the Group has made the
following judgments (further details about the most signif-
icant effect on the Group’s revenue are provided in note
10.a “Revenue from sales and services”).
Furthermore, during the year, the Group carefully moni-
tored the effects of the uncertainties linked to the COV-
ID-19 pandemic on the recognition of its revenue, in par-
ticular as regards the main areas affected by significant
judgments.
Identification of the contract
The Group carefully analyzes the contractual terms and
conditions on a jurisdictional level in order to determine
when a contract exists and the terms of that contract’s en-
forceability so as to apply IFRS 15 only to such contracts.
Identification and satisfaction of performance obligations
When a contract includes multiple promised goods or
services, in order to assess if they should be accounted
for separately or as a group, the Group considers both the
individual characteristics of goods/services and the na-
ture of the promise within the context of the contract, also
evaluating all the facts and circumstances relating to the
specific contract under the relevant legal and regulatory
framework.
To evaluate when a performance obligation is satisfied, the
Group evaluates when the control of the goods or services
is transferred to the customer, assessed primarily from the
perspective of the customer.
Determination of the transaction price
The Group considers all relevant facts and circumstanc-
es in determining whether a contract includes variable
consideration (i.e., consideration that may vary or de-
pends upon the occurrence or non-occurrence of a fu-
ture event). In estimating variable consideration, the Group
uses the method that better predicts the consideration to
which it will be entitled, applying it consistently throughout
the contract and for similar contracts, also considering all
available information, and updating such estimates until
the uncertainly is resolved. The Group includes the esti-
mated variable consideration in the transaction price only
to the extent that it is highly probable that a significant re-
versal in the cumulative revenue recognized will not occur
when the uncertainty is resolved.
Principal versus agent assessment
The Group considers that it is an agent in some con-
tracts in which it is not primarily responsible for fulfilling
the contract and therefore it does not control goods or
services before they are being transferred to customers.
For example, 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.
Allocation of transaction price
For contracts that have more than one performance obli-
gation (e.g., “bundled” sale contracts), the Group generally
allocates the transaction price to each performance ob-
ligation in proportion to its stand-alone selling price. The
Group determines stand-alone selling prices considering
all information and using observable prices when they are
available in the market or, if not, using an estimation meth-
od that maximizes the use of observable inputs and apply-
ing it consistently to similar arrangements.
If the Group evaluates that a contract includes an option
for additional goods or services (e.g., customer loyalty pro-
grams or renewal options) that represents a material right,
it allocates the transaction price to this option since the
option gives rise to an additional performance obligation.
Contract costs
The Group assesses recoverability of the incremental costs
of obtaining a contract either on a contract-by-contract
basis, or for a group of contracts if those costs are associ-
ated with the group of contracts.
The Group supports the recoverability of such costs on
the basis of its experience with other similar transactions
and evaluating various factors, including potential renew-
als, amendments and follow-on contracts with the same
customer.
The Group amortizes such costs over the average custom-
er term. In order to determine this expected period of ben-
efit from the contract, the Group considers its past experi-
ence (e.g., “churn rate”), the predictive evidence from sim-
ilar contracts and available information about the market.
Classification and measurement of financial assets
At initial recognition, in order to classify financial assets
as financial assets at amortized cost, at fair value through
other comprehensive income and at fair value through
profit or loss, management assesses both the contractual
cash flow characteristics of the instrument and the busi-
ness model for managing financial assets in order to gen-
erate cash flows.
In order to evaluate the contractual cash flow character-
istics of the instrument, management performs the SPPI
test at an instrument level, in order to determine if it gives
rise to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding, per-
forming specific assessment on the contractual clauses of
the financial instruments, as well as quantitative analysis,
if required.
The business model determines whether cash flows will
result from collecting contractual cash flows, selling the
financial assets, or both.
For more details, please see note 46 “Financial instruments
by category”.
Hedge accounting
Hedge accounting is applied to derivatives in order to re-
flect into the financial statements the effect of risk man-
agement strategies.
Accordingly, at the inception of the transaction the Group
documents the hedge relationship between hedging in-
struments and hedged items, as well as its risk manage-
ment objectives and strategy. The Group also assesses,
both at hedge inception and on an ongoing basis, wheth-
er hedging instruments are highly effective in offsetting
changes in the fair values or cash flows of hedged items.
On the basis of management’s judgment, the effective-
ness assessment based on the existence of an econom-
ic relationship between the hedging instruments and the
hedged items, the dominance of credit risk in the changes
in fair value and the hedge ratio, as well as the measure-
ment of the ineffectiveness, is evaluated through a qualita-
tive assessment or a quantitative computation, depending
on the specific facts and circumstances and on the char-
acteristics of the hedged items and the hedging instru-
ments.
For cash flow hedges of forecast transactions designated
as hedged items, management assesses and documents
that they are highly probable and present an exposure to
changes in cash flows that affect profit or loss.
Furthermore, during the year, the Group carefully moni-
tored the possible effects of the uncertainties linked to the
COVID-19 pandemic on its hedge relationships.
For additional details on the key assumptions about effec-
tiveness assessment and ineffectiveness measurement,
please refer to note 49.1 “Derivatives and hedge account-
ing”.
Leases
The complexity of the assessment of the lease contracts,
and also their long-term expiring date, requires consider-
able professional judgments for application of IFRS 16. In
particular, this regards:
• the application of the definition of a lease to the cases
typical of the sectors in which the Group operates;
• the identification of the non-lease component in the
lease;
• the evaluation of any renewable and termination op-
tions included in the lease in order to determine the
term of leases, also considering the probability of their
exercise and any significant leasehold improvements on
Notes to the consolidated financial statements
277
277
the underlying asset, taking due consideration of recent
interpretations issued by the IFRS Interpretations Com-
mittee;
• the identification of any variable lease payments that
depend on an index or a rate to determine whether the
changes of the latter impact the future lease payments
and also the amount of the right-of-use asset;
• the estimate of the discount rate to calculate the pres-
ent value of the lease payments; further details on as-
sumptions about this rate are provided in the paragraph
“Use of estimates”.
Subsidiaries
Subsidiaries are all entities over which the Group has con-
trol. The Group controls an entity, regardless of the nature
of the formal relationship between them, when it is ex-
posed, or has rights, to variable returns deriving from its
involvement and has the ability, through the exercise of its
power over the investee, to affect its returns.
The figures of the subsidiaries are consolidated on a full
line-by-line basis as from the date control is acquired until
such control ceases.
For more information on leases, please see note 20 “Leases”.
Consolidation procedures
The financial statements of subsidiaries used to prepare
the consolidated financial statements were prepared at
December 31, 2021 in accordance with the accounting
policies adopted by the Group.
If a subsidiary uses different accounting policies from
those adopted in preparing the consolidated financial
statements for similar transactions and facts in similar cir-
cumstances, appropriate adjustments are made to ensure
conformity with Group accounting policies.
Assets, liabilities, revenue and expenses of a subsidiary ac-
quired or disposed of during the year are included in or
excluded from the consolidated financial statements, re-
spectively, 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 comprehensive in-
come are attributed to owners of the Parent and non-con-
trolling interests, even if this results in a loss for non-con-
trolling interests.
All intercompany assets and liabilities, equity items, reve-
nue, expenses and cash flows relating to transactions be-
tween entities of the Group are eliminated in full.
Changes in ownership interest in subsidiaries that do not
result in loss of control are accounted for as equity trans-
actions, with the carrying amounts of the controlling and
non-controlling interests adjusted to reflect changes in
their interests in the subsidiary. Any difference between
the amount to which non-controlling interests are adjust-
ed and the fair value of the consideration paid or received
is recognized in consolidated equity.
When the Group ceases to have control over a subsidiary,
any interest retained in the entity is remeasured to its fair
value, recognized through profit or loss, at the date when
control is lost, recognizing any gain or loss from the loss
of control through profit or loss. In addition, any amounts
previously recognized in other comprehensive income in
respect of the former subsidiary are accounted for as if
the Group had directly disposed of the related assets or
liabilities.
Uncertainty over income tax treatments
The Group determines whether to consider each uncer-
tain income tax treatment separately or together with one
or more other uncertain tax treatments as well as whether
to reflect the effect of uncertainty by using the most like-
ly amount or the expected value method, based on which
approach better predicts the resolution of the uncertainty
for each uncertain tax treatments, taking account of local
tax regulations.
The Group makes significant use of professional judgment
in identifying uncertainties about income tax treatments
and reviews the judgments and estimates made in the
event of a change in facts and circumstances that could
change its assessment of the acceptability of a specific tax
treatment or the estimate of the effects of uncertainty, or
both.
For more information on income taxes, please see note 16
“Income taxes”.
2.2 Significant accounting policies
Related parties
Related parties are mainly those that share the same par-
ent with Enel SpA, the companies that directly or indirectly
are controlled by Enel SpA, the associates or joint ventures
(including their subsidiaries) of Enel SpA, or the associates
or joint ventures (including their subsidiaries) of any Group
company. Related parties also include entities that operate
post-employment benefit plans for employees of Enel SpA
or its associates (specifically, the FOPEN and FONDENEL
pension funds), as well as the members of the boards of
statutory auditors, and their immediate family, and the key
management personnel, and their immediate family, of Enel
SpA and its subsidiaries. Key management personnel com-
prises management personnel who have the power and di-
rect or indirect responsibility for the planning, management
and control of the activities of the Company. They include
directors (whether executive or not).
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Investments in associates and joint ventures
An associate is an entity over which the Group has signifi-
cant influence. Significant influence is the power to partic-
ipate in decisions concerning the financial and operating
policies of the investee without having control or joint con-
trol over the investee.
A joint venture is a joint arrangement over which the Group
exercises joint control and has rights to the net assets of
the arrangement. Joint control is the sharing of control of
an arrangement, whereby decisions about the relevant ac-
tivities require unanimous consent of the parties sharing
control.
The Group’s investments in associates and joint ventures
are accounted for using the equity method.
Under the equity method, these investments are initially
recognized at cost and any goodwill arising from the differ-
ence between the cost of the investment and the Group’s
share of the net fair value of the investee’s identifiable as-
sets and liabilities at the acquisition date is included in the
carrying amount of the investment.
After the acquisition date, their carrying amount is adjusted
to recognize changes in the Group’s share of profit or loss of
the associate or joint venture in Group profit or loss. Adjust-
ments to the carrying amount may also be necessary fol-
lowing changes in the Group’s share in the associate or joint
venture as a result of changes in the other comprehensive
income of the investee. The Group’s share of these changes
is recognized in the Group’s other comprehensive income.
Dividends received from joint ventures and associates re-
duce the carrying amount of the investments.
Gains and losses resulting from transactions between the
Group and the associates or joint ventures are eliminated
to the extent of the interest in the associate or joint venture.
The financial statements of the associates or joint ventures
are prepared for the same reporting period as the Group.
When necessary, adjustments are made to bring the ac-
counting policies in line with those of the Group.
After application of the equity method, the Group deter-
mines whether it is necessary to recognize an impairment
loss on its investment in an associate or joint venture. If
there is objective evidence of a loss of value, the entire
carrying amount of the investment undergoes impairment
testing pursuant to IAS 36 as a single asset. For more in-
formation on impairment, please see the section “Impair-
ment of non-financial assets” in note 2.1 “Use of estimates
and management judgment”.
If the investment ceases to be an associate or a joint ven-
ture, the Group recognizes any retained investment at its
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
liabilities.
If the ownership interest in an associate or a joint venture is
reduced, but the Group continues to exercise a significant
influence or joint control, the Group continues to apply
the equity method and the share of the gain or loss that
had previously been recognized in other comprehensive
income relating to that reduction is accounted for as if
the Group had directly disposed of the related assets or
liabilities.
When a portion of an investment in an associate or joint
venture meets the criteria to be classified as held for sale,
any retained portion of an investment in the associate or
joint venture that has not been classified as held for sale
is accounted for using the equity method until disposal of
the portion classified as held for sale takes place.
Joint operations are joint arrangements whereby the
Group, which holds joint control, has rights to the assets
and obligations for the liabilities relating to the arrange-
ment. For each joint operation, the Group recognized as-
sets, liabilities, costs and revenue on the basis of the pro-
visions of the arrangement rather than the interest held.
Where there is an increase in the interest in a joint ar-
rangement that meets the definition of a business:
• if the Group acquires control, and had rights over the
assets and obligations for the liabilities of the joint ar-
rangement immediately before the acquisition date,
then the transaction represents a business combination
achieved in stages. Consequently, the Group applies the
requirements for a business combination achieved in
stages, including the remeasurement of the interest it
held previously in the joint operation at its fair value at
the acquisition date;
• if the Group obtains joint control (i.e., it already had an
interest in a joint operation without holding joint con-
trol), the interest previously held in the joint operation
shall not be remeasured.
For more information on the Group’s investments in asso-
ciates and joint ventures, please see note 25 “Equity-ac-
counted investments”.
Translation of foreign currency items
Transactions in currencies other than the functional cur-
rency are initially recognized at the spot exchange rate
prevailing on the date of the transaction.
Monetary assets and liabilities denominated in a foreign
currency other than the functional currency are subse-
quently translated using the closing exchange rate (i.e., the
spot exchange rate prevailing at the reporting date).
Non-monetary assets and liabilities denominated in for-
eign currency that are recognized at historical cost are
translated using the exchange rate at the date of the
transaction. Non-monetary assets and liabilities in foreign
currency measured at fair value are translated using the
exchange rate at the date the fair value was determined.
Any exchange differences are recognized through profit or
loss.
Notes to the consolidated financial statements
279
279
In determining the spot exchange rate to use on initial rec-
ognition of the related asset, expense or income (or part
of it) on the derecognition of a non-monetary asset or
non-monetary liability relating to advance consideration in
foreign currency paid or received, the date of the transac-
tion is the date on which the Group initially recognizes the
non-monetary asset or non-monetary liability associated
with the advance consideration.
If there are multiple advance payments or receipts, the
Group determines the transaction date for each payment
or receipt of advance consideration.
Translation of financial statements
denominated in a foreign currency
For the purposes of the consolidated financial statements,
all revenue, expenses, assets and liabilities are stated in
euro, which is the presentation currency of the Parent.
In order to prepare the consolidated financial statements,
the financial statements of consolidated companies with
functional currencies other than the presentation curren-
cy used in the consolidated financial statements are trans-
lated into euros by applying the closing exchange rate to
the assets and liabilities, including goodwill and consolida-
tion adjustments, and the average exchange rate for the
period to the income statement items on the condition it
approximates the exchange rates prevailing at the date of
the respective transactions.
Any resulting exchange gains or losses are recognized as
a separate component of equity in a special reserve. The
gains and losses are recognized proportionately in the
income statement on the disposal (partial or total) of the
subsidiary.
When the functional currency of a consolidated company
is the currency of a hyperinflationary economy, the Group
restates the financial statements in accordance with IAS
29 before applying the specific conversion method set out
below.
In order to consider the impact of hyperinflation on the
local currency exchange rate, the financial position and
performance (i.e., assets, liabilities, equity items, revenue
and expenses) of a company whose functional currency is
the currency of a hyperinflationary economy are translated
into the Group’s presentation currency (the euro) using the
exchange rate prevailing at the reporting date, except for
comparative amounts presented in the previous year’s fi-
nancial statements which are not adjusted for subsequent
changes in the price level or subsequent changes in ex-
change rates.
Business combinations
Business combinations initiated before January 1, 2010
and completed within that financial year are recognized on
the basis of IFRS 3 (2004).
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Integrated Annual Report 2021
Such business combinations were recognized using the
purchase method, where the purchase cost is equal to the
fair value at the date of the exchange of the assets acquired
and the liabilities incurred or assumed, plus costs directly
attributable to the acquisition. This cost was allocated by
recognizing the assets, liabilities and identifiable contin-
gent liabilities of the acquired company at their fair values.
Any positive difference between the cost of the acquisition
and the fair value of the net assets acquired attributable to
owners of the Parent was recognized as goodwill. If the dif-
ference is negative, it is recognized through profit or loss.
The carrying amount of non-controlling interests was de-
termined in proportion to the interest held by non-con-
trolling shareholders in the net assets. In the case of busi-
ness combinations achieved in stages, at the acquisition
date, any adjustment to the fair value of the net assets ac-
quired previously was recognized in equity; the amount of
goodwill was determined for each transaction separately
based on the fair values of the acquiree’s net assets at the
date of each exchange transaction.
Business combinations carried out as from January 1, 2010
are recognized on the basis of IFRS 3 (2008), which is re-
ferred to as IFRS 3 (Revised) hereafter.
More specifically, business combinations are recognized
using the acquisition method, where the acquisition cost
(the consideration transferred) is equal to the fair value at
the acquisition date of the assets acquired and the liabili-
ties incurred or assumed, as well as any equity instruments
issued by the acquirer. The consideration transferred in-
cludes the fair value of any asset or liability resulting from
a contingent consideration arrangement.
Costs directly attributable to the acquisition are recog-
nized through profit or loss.
The consideration transferred is allocated by recognizing
the assets, liabilities and identifiable contingent liabili-
ties of the acquired company at their fair values as at the
acquisition date. The excess of the consideration trans-
ferred, measured at fair value as at the acquisition date,
the amount of any non-controlling interest in the acquiree
plus the fair value of any equity interest in the acquiree
previously held by the Group (in a business combination
achieved in stages) over the net amount of the identifia-
ble assets acquired and the liabilities incurred or assumed
measured at fair value is recognized as goodwill. If the dif-
ference is negative, the Group verifies whether it has cor-
rectly identified all the assets acquired and liabilities as-
sumed and reviews the procedures used to determine the
amounts to recognize at the acquisition date. If after this
assessment the fair value of the net assets acquired still
exceeds the total consideration transferred, this excess
represents a gain on a bargain purchase and is recognized
through profit or loss.
The carrying amount of non-controlling interests is deter-
mined either in proportion to the interest held by non-con-
trolling shareholders in the net identifiable assets of the
acquiree or at their fair value as at the acquisition date.
In the case of business combinations achieved in stages, at
the date of acquisition of control the previously held equi-
ty interest in the acquiree is remeasured to fair value and
any positive or negative difference is recognized in profit
or loss.
Any contingent consideration is recognized at fair value at
the acquisition date. Subsequent changes to the fair val-
ue of the contingent consideration classified as an asset
or a liability, or as a financial instrument within the scope
of IFRS 9, are recognized in profit or loss. If the contin-
gent consideration is not within the scope of IFRS 9, it is
measured in accordance with the appropriate IFRS-EU.
Contingent consideration that is classified as equity is not
re-measured, and its subsequent settlement is accounted
for within equity.
If the fair values of the assets, liabilities and contingent li-
abilities can only be calculated on a provisional basis, the
business combination is recognized using such provisional
values. Any adjustments resulting from the completion of
the measurement process are recognized within 12 months
of the acquisition date, restating comparative figures.
Fair value measurement
For all fair value measurements and disclosures of fair val-
ue, that are either required or permitted by IFRS, the Group
applies IFRS 13.
Fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability, in an orderly
transaction, between market participants, at the measure-
ment date (i.e., an exit price).
The fair value measurement assumes that the transaction
to sell an asset or transfer a liability takes place in the prin-
cipal market, i.e., the market with the greatest volume and
level of activity for the asset or liability. In the absence of a
principal market, it is assumed that the transaction takes
place in the most advantageous market to which the Group
has access, i.e., the market that maximizes the amount
that would be received to sell the asset or minimizes the
amount that would be paid to transfer the liability.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use when
pricing the asset or liability, assuming that market partic-
ipants act in their economic best interest. Market partici-
pants are independent, knowledgeable sellers and buyers
who are able to enter into a transaction for the asset or the
liability and who are motivated but not forced or otherwise
compelled to do so.
When measuring fair value, the Group considers the char-
acteristics of the asset or liability, in particular:
• for a non-financial asset, a fair value measurement takes
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use;
• for liabilities and own equity instruments, the fair val-
ue reflects the effect of non-performance risk, i.e., the
risk that an entity will not fulfill an obligation, including
among others the credit risk of the Group itself;
• in the case of groups of financial assets and financial li-
abilities with offsetting positions in market risk or credit
risk, managed on the basis of an entity’s net exposure
to such risks, it is permitted to measure fair value on a
net basis.
In measuring the fair value of assets and liabilities, the
Group uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are availa-
ble, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. Such cost includes expenses directly attrib-
utable 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 es-
timate 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 lia-
bility 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
discussed in note 39 “Provisions for risks and charges”.
Property, plant and equipment transferred from custom-
ers to connect them to the electricity distribution network
and/or to provide them with other related services is ini-
tially recognized at its fair value at the date on which con-
trol is obtained.
Borrowing costs that are directly attributable to the ac-
quisition, 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 as-
sociated with the purchase/construction of assets that do
not meet such requirement are expensed in the period in
which they are incurred.
Certain assets that were revalued at the IFRS-EU transi-
tion date or in previous periods are recognized at their fair
value, which 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
carrying amount of the asset when it is probable that fu-
ture economic benefits associated with the cost incurred
to replace a part of the asset will flow to the Group and the
Notes to the consolidated financial statements
281
281
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
useful life, which is reviewed annually. Any changes in de-
preciation criteria shall be applied prospectively. For more
information on estimating useful life, please see note 2.1
“Use of estimates and management judgment”.
Depreciation begins when the asset is available for use.
The estimated useful life of the main items of property,
plant and equipment is as follows:
Civil buildings
Buildings and civil works incorporated in plants
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
- turbines and generators
- turbine parts in contact with fluid
- mechanical and electrical machinery
Wind power plants:
- towers
- turbines and generators
- mechanical and electrical machinery
Solar power plants:
10-70 years
10-100 years
7-85 years
5-60 years
5-100 years
3-53 years
3-53 years
3-53 years
3-53 years
50 years
20-25 years
25-30 years
10-25 years
20-40 years
20-30 years
20-30 years
15-30 years
- mechanical and electrical machinery
20-30 years
Public and artistic lighting:
- public lighting installations
- artistic lighting installations
Transport lines
Transformer stations
Distribution plants:
- high-voltage lines
- primary transformer stations
- low- and medium-voltage lines
Meters:
- electromechanical meters
- electricity balance measurement equipment
- electronic meters
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
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
282
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are derecognized either upon their disposal (i.e., at the
date the recipient obtains control) or when no future eco-
nomic benefit is expected from their use or disposal. Any
gain or loss, recognized through profit or loss, is calculat-
ed 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
derecognized assets.
Assets to be relinquished free of charge
The Group’s plants include assets to be relinquished free
of charge at the end of the concessions. These mainly
regard major water diversion works and the public lands
used for the operation of the thermal power plants.
Within the Italian regulatory framework in force until 2011,
if the concessions are not renewed, at those dates all in-
take 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.
Accordingly, depreciation on assets to be relinquished was
calculated over the shorter of the term of the concession
and the useful life of the assets.
In the wake of the legislative changes introduced with Law
134 of August 7, 2012, the assets previously classified as
assets “to be relinquished free of charge” connected with
the hydroelectric water diversion concessions are now
considered in the same manner as other categories of
“property, plant and equipment” and are therefore depre-
ciated over the useful life of the asset (where this exceeds
the term of the concession), as discussed in the section
above on the “Depreciable amount of certain elements of
Italian hydroelectric plants subsequent to enactment of
Law 134/2012”, which you are invited to consult for more
details.
In accordance with Spanish laws 29/1985 and 46/1999,
hydroelectric power stations in Spanish territory operate
under administrative concessions at the end of which the
plants will be returned to the government in good oper-
ating condition. The terms of the concessions extend up
to 2067.
A number of generation companies that operate in Lat-
in America hold administrative concessions with similar
conditions to those applied under the Spanish concession
system. These concessions will expire in 2071.
Infrastructure serving a concession not within the scope
of “IFRIC 12 - Service concession arrangements”
As regards the distribution of electricity, the Group is a
concession holder in Italy for this service. The concession,
granted by the Ministry for Economic Development, was
issued free of charge and terminates on December 31,
2030. If the concession is not renewed upon expiry, the
grantor is required to pay an indemnity. The amount of the
indemnity will be determined by agreement of the parties
using appropriate valuation methods, based on both the
carrying amount of the assets themselves and their prof-
itability.
In determining the indemnity, such profitability will be rep-
resented by the present value of future cash flows. The in-
frastructure serving the concession is owned and available
to the concession holder. It is recognized under “Property,
plant and equipment” and is depreciated over the useful
lives of the assets.
Enel also operates under administrative concessions for
the distribution of electricity in other countries (including
Spain and Romania). These concessions give the right to
build and operate distribution networks for an indefinite
period of time.
Infrastructure within the scope of “IFRIC 12 -
Service concession arrangements”
Under a “public-to-private” service concession arrange-
ment within the scope of “IFRIC 12 - Service concession
arrangements” the operator acts as a service provider and,
in accordance with the terms specified in the contract, it
constructs/upgrades infrastructure used to provide a
public service and/or operates and maintains that infra-
structure for the years of the concession.
The Group, as operator, does not account for the infra-
structure within the scope of IFRIC 12 as property, plant
and equipment and it recognizes and measures revenue
in accordance with IFRS 15 for the services it performs. In
particular, when the Group provides construction or up-
grade services, depending on the characteristics of the
service concession arrangement, it recognizes:
• a financial asset, if the Group has an unconditional con-
tractual right to receive cash or another financial asset
from the grantor (or from a third party at the direction
of the grantor), that is the grantor has little discretion
to avoid payment. In this case, the grantor contractually
guarantees to pay to the operator specified or deter-
minable amounts or the shortfall between the amounts
received from the users of the public service and spec-
ified or determinable amounts (defined by the contract),
and such payments are not dependent on the usage of
the infrastructure; and/or
• an intangible asset, if the Group receives the right (a li-
cense) to charge users of the public service provided. In
such a case, the operator does not have an unconditional
right to receive cash because the amounts are contin-
gent on the extent that the public uses the service.
If the Group (as operator) has a contractual right to re-
ceive an intangible asset (a right to charge users of public
service), borrowing costs are capitalized using the criteria
specified in note 18 “Property, plant and equipment”.
However, for construction/upgrade services, both types of
consideration are generally classified as a contract asset
during the construction/upgrade period.
For more details about such consideration, please see
note 10.a “Revenue from sales and services”.
Leases
The Group holds property, plant and equipment for its
various activities under lease contracts. At inception of
a contract, the Group assesses whether a contract is, or
contains, a lease.
For contracts entered into or changed on or after January
1, 2019, the Group has applied the definition of a lease un-
der IFRS 16, that is met if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration.
Conversely, for contracts entered into before January 1,
2019, the Group determined whether the arrangement
was or contained a lease under IFRIC 4.
Group as a lessee
At commencement or on modification of a contract that
contains a lease component and one or more additional
lease or non-lease components, the Group allocates the
consideration in the contract to each lease component on
the basis of its relative stand-alone price.
The Group recognizes a right-of-use asset and a lease lia-
bility at the commencement date of the lease (i.e., the date
the underlying asset is available for use).
The right-of-use asset represents a lessee’s right to use an
underlying asset for the lease term; it is initially measured
at cost, which includes the initial amount of lease liabili-
ty adjusted for any lease payments made at or before the
commencement date less any lease incentives received,
plus any initial direct costs incurred and an estimate of
costs to retire and remove the underlying asset and to re-
store the underlying asset or the site on which it is located.
Right-of-use assets are subsequently depreciated on a
straight-line basis over the shorter of the lease term and
the estimated useful lives of the right-of-use assets, as
follows:
Average residual life (years)
Buildings
Ground rights of renewable energy plants
Vehicles and other means of transport
7
32
5
If the lease transfers ownership of the underlying asset to
the Group at the end of the lease term or if the cost of the
right-of-use asset reflects the fact that the Group will exer-
cise a purchase option, depreciation is calculated using the
estimated useful life of the underlying asset.
In addition, the right-of-use assets are subject to impair-
ment and adjusted for any remeasurement of lease liabili-
ties.
The lease liability is initially measured at the present value
of lease payments to be made over the lease term. In cal-
Notes to the consolidated financial statements
283
283
culating the present value of lease payments, the Group
uses the lessee’s incremental borrowing rate at the lease
commencement date when the interest rate implicit in the
lease is not readily determinable.
Variable lease payments that do not depend on an index
or a rate are recognized as expenses in the period in which
the event or condition that triggers the payment occurs.
After the commencement date, the lease liability is meas-
ured at amortized cost using the effective interest method
and is remeasured upon the occurrence of certain events.
The Group applies the short-term lease recognition ex-
emption to its lease contracts that have a lease term of 12
months or less from the commencement date. It also ap-
plies the low-value assets recognition exemption to lease
contracts for which the underlying asset is of low-value
whose amount is estimated not material. For example, the
Group has leases of certain office equipment (i.e., personal
computers, printing and photocopying machines) that are
considered of low-value. Lease payments on short-term
leases and leases of low-value assets are recognized as
expense on a straight-line basis over the lease term.
The Group presents right-of-use assets that do not meet
the definition of investment property in “Property, plant
and equipment” and lease liabilities in “Borrowings”.
Consistent with the requirement of the standard, the
Group presents separately the interest expense on lease
liabilities under “Other financial expense” and the depreci-
ation charge on the right-of-use assets under “Deprecia-
tion, amortization and impairment losses”.
Group as a lessor
When the Group acts as a lessor, it determines at the lease
inception date whether each lease is a finance lease or an
operating lease.
Leases in which the Group essentially transfers all the risks
and rewards associated with ownership of the underlying
asset are classified as finance leases; otherwise, they are
classified as operating leases. To make this assessment,
the Group considers the indicators provided by IFRS 16. If
a contract contains lease and non-lease components, the
Group allocates the consideration in the contract applying
IFRS 15.
The Group accounts for rental income arising from oper-
ating leases on a straight-line basis over the lease terms
and it recognizes it as other revenue.
Investment property
Investment property consists of the Group’s real estate
held to earn rentals and/or for capital appreciation rath-
er than for use in the production or supply of goods and
services.
Investment property is measured at acquisition cost less
any accumulated depreciation and any accumulated im-
pairment losses.
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Investment property, excluding land, is depreciated on a
straight-line basis over the useful lives of the related as-
sets.
Impairment losses are determined on the basis of the cri-
teria described in the section below..
The breakdown of the fair value of investment property is
detailed in note 50 “Assets and liabilities measured at fair
value”.
Investment property is derecognized either when it has
been transferred (i.e., at the date the recipient obtains
control) or when it is permanently withdrawn from use
and no future economic benefit is expected from its dis-
posal. Any gain or loss, recognized through profit or loss,
is calculated as the difference between the net disposal
proceeds, determined in accordance with the transaction
price requirements of IFRS 15, and the carrying amount of
the derecognized 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 gen-
erating future economic benefits. They are measured at
purchase or internal development cost when it is probable
that the use of such assets will generate future economic
benefits and the related cost can be reliably determined.
The cost includes any directly attributable expenses nec-
essary to make the assets ready for their intended use.
Development expenditure is recognized as an intangible
asset only when the Group can demonstrate the technical
feasibility of completing the asset, its intention and ability
to complete development and to use or sell the asset and
the availability of resources to complete the asset.
Research costs are recognized as expenses.
Intangible assets with a finite useful life are recognized net
of accumulated amortization and any impairment losses.
Amortization is calculated on a straight-line basis over the
asset’s estimated useful life, which is reassessed at least
annually; any changes in amortization policies are reflected
on a prospective basis. For more information on estimating
useful life, please see note 2.1 “Use of estimates and man-
agement judgment”.
Amortization commences when the asset is ready for use.
Consequently, intangible assets not yet available for use
are not amortized, but are tested for impairment at least
annually.
The Group’s intangible assets have a finite useful life, with
the exception of a number of concessions and goodwill.
Intangible assets with indefinite useful lives are not amor-
tized, but are tested for impairment annually.
The assessment of indefinite useful life is reviewed annual-
ly to determine whether the indefinite useful life continues
to be supportable. If not, the change in useful life from in-
definite to finite is accounted for as a change in account-
ing estimate.
Intangible assets are derecognized either at the time of
their disposal (at the date when the recipient obtains con-
trol) or when no future economic benefit is expected from
their use or disposal. Any gain or loss, recognized through
profit or loss, is calculated as the difference between the
net consideration received in the disposal, determined
in accordance with the provisions of IFRS 15 concern-
ing the transaction price, and the carrying amount of the
derecognized assets.
The estimated useful life of the main intangible assets,
distinguishing between internally generated and acquired
assets, is as follows:
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
The Group also presents costs to obtain a contract with a
customer capitalized in accordance with IFRS 15 as intan-
gible assets.
The Group recognized such costs as an asset only if:
• the costs are incremental, that is they are directly at-
tributable to an identified contract and the Group would
not have incurred them if the contract had not been ob-
tained;
• the Group expects to recover them, through reimburse-
ments (direct recoverability) or the margin (indirect re-
coverability).
In particular, the Group generally capitalizes trade fees and
commissions paid to agents for such contracts if the cap-
italization criteria are met.
Capitalized customer contract costs are amortized on a
systematic basis, consistent with the pattern of the trans-
fer of the goods or services to which they relate, and un-
dergo impairment testing to identify any impairment loss-
es to the extent that the carrying amount of the asset rec-
ognized exceeds the recoverable amount.
The Group amortizes the capitalized customer contract
costs on a straight-line basis over the expected period of
benefit from the contract (i.e., the average term of the cus-
tomer relationship); any changes in amortization policies
are reflected on a prospective basis.
Goodwill
Goodwill represents the future economic benefits arising
from other assets acquired in a business combination that
are not individually identified and separately recognized.
For further details, please see the section of the account-
ing policies “Business combinations”.
Goodwill arising on the acquisition of subsidiaries is rec-
ognized separately. After initial recognition, goodwill is not
amortized, but is tested for impairment at least annually as
part of the CGU to which it pertains.
For the purpose of impairment testing, goodwill is allocat-
ed, from the acquisition date, to each CGU that is expect-
ed to benefit from the synergies of the combination.
Goodwill relating to equity investments in associates and
joint ventures is included in their carrying amount.
Impairment of non-financial assets
At each reporting date, property, plant and equipment, in-
vestment property, intangible assets, right-of-use assets,
goodwill and equity investments in associates/joint ven-
tures are reviewed to determine whether there is evidence
of impairment.
CGUs to which goodwill, intangible assets with an indef-
inite useful life and intangible assets not yet available for
use are allocated are tested for recoverability annually or
more frequently if there is evidence suggesting that the
assets can be impaired.
If such evidence exists, the recoverable amount of any in-
volved asset is estimated on the basis of the use of the as-
set and its future disposal, in accordance with the Group’s
most recent Business Plan. For the estimate of the recov-
erable amount, please see note 2.1 “Use of estimates and
management judgment”.
The recoverable amount is determined for an individu-
al asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets
or groups of assets and therefore it is determined for the
CGU to which the asset belongs.
If the carrying amount of an asset or of a CGU to which it
is allocated is greater than its recoverable amount, an im-
pairment loss is recognized in profit or loss and presented
under “Depreciation, amortization and other impairment
losses”.
Impairment losses of CGUs are firstly charged against the
carrying amount of any goodwill attributed to it and then
against the other assets, in proportion to their carrying
amount.
If the reasons for a previously recognized impairment loss
no longer apply, the carrying amount of the asset is re-
Notes to the consolidated financial statements
285
285
stored through profit or loss, under “Depreciation, amor-
tization and other impairment losses”, in an amount that
shall not exceed the carrying amount that the asset would
have had if the impairment loss had not been recognized.
The original amount of goodwill is not restored even if
in subsequent years the reasons for the impairment no
longer apply.
If certain specific identified assets owned by the Group
are impacted by adverse economic or operating condi-
tions that undermine their capacity to contribute to the
generation of cash flows, they can be isolated from the
rest of the assets of the CGU, undergo separate analysis
of their recoverability and be impaired where necessary.
Inventories
Inventories are measured at the lower of cost and net
realizable value except for inventories involved in trading
activities, which are measured at fair value with recog-
nition through profit or loss. Cost is determined on the
basis of average weighted cost, which includes related
ancillary charges. Net estimated realizable value is the es-
timated normal selling price net of estimated costs to sell
or, where applicable, replacement cost.
For the portion of inventories held to discharge sales that
have already been made, the net realizable value is de-
termined on the basis of the amount established in the
contract of sale.
Inventories include environmental certificates (for exam-
ple, green certificates, energy efficiency certificates and
European CO2 emissions allowances) that were not uti-
lized for compliance in the reporting period. As regards
CO2 emissions allowances, inventories are allocated be-
tween the trading portfolio and the compliance portfo-
lio, i.e., those used for compliance with greenhouse gas
emissions requirements. Within the latter, CO2 emissions
allowances are allocated to sub-portfolios on the basis of
the compliance year to which they have been assigned.
Inventories also include nuclear fuel stocks, use of which
is determined on the basis of the electricity generated.
Materials and other consumables (including energy com-
modities) held for use in production are not written down
if it is expected that the final product in which they will be
incorporated will be sold at a price sufficient to enable
recovery of the cost incurred.
Financial instruments
Financial instruments are any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity; they are recognized
and measured in accordance with IAS 32 and IFRS 9.
A financial asset or liability is recognized in the consol-
idated financial statements when, and only when, the
Group becomes party to the contractual provision of the
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instrument (i.e., the trade date).
Trade receivables arising from contracts with custom-
ers, in the scope of IFRS 15, are initially measured at their
transaction price (as defined in IFRS 15) if such receiva-
bles do not contain a significant financing component or
when the Group applies the practical expedient allowed
by IFRS 15.
Conversely, the Group initially measures financial assets
other than the above-mentioned trade receivables at
their fair value plus, in the case of a financial asset not
measured at fair value through profit or loss, transaction
costs.
Financial assets are classified, at initial recognition, as
financial assets at amortized cost, at fair value through
other comprehensive income and at fair value through
profit or loss, on the basis of both the Group’s business
model and the contractual cash flow characteristics of
the instrument.
For this purpose, the assessment to determine wheth-
er the instrument gives rise to cash flows that are solely
payments of principal and interest (SPPI) on the principal
amount outstanding is referred to as the SPPI test and is
performed at an instrument level.
The Group’s business model for managing financial as-
sets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both.
For purposes of subsequent measurement, financial as-
sets are classified in four categories:
• financial assets measured at amortized cost (debt in-
struments);
• financial assets at fair value through OCI with reclas-
sification of cumulative gains and losses (debt instru-
ments);
• financial assets designated at fair value through OCI
with no reclassification of cumulative gains and losses
upon derecognition (equity instruments); and
• financial assets at fair value through profit or loss.
Financial assets measured at amortized cost
This category mainly includes trade receivables, other fi-
nancial assets and loan assets.
Financial assets at amortized cost are held within a busi-
ness model whose objective is to hold financial assets in
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.
Such assets are initially recognized at fair value, adjusted
for any transaction costs, and subsequently measured at
amortized cost using the effective interest method and
are subject to impairment.
Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired.
Financial assets at fair value through other
comprehensive income (FVOCI) - Debt instruments
This category mainly includes:
• listed debt securities held by the Group reinsurance
company and not classified as held for trading; and
• the tax credits provided for by Decree Law 34/2020 (the
“Revival Decree”).
Financial assets at fair value through other comprehensive
income are assets held within a business model whose
objective is achieved by both collecting contractual cash
flows and selling financial assets and whose contractual
cash flows give rise, on specified dates, to cash flows that
are solely payments of principal and interest on the princi-
pal amount outstanding.
Changes in fair value for these financial assets are recog-
nized in other comprehensive income as well as loss al-
lowances that do not reduce the carrying amount of the
financial assets.
When a financial asset is derecognized (e.g., at the time
of sale), the cumulative gains and losses previously recog-
nized in equity (except impairment and foreign exchange
gains and losses to be recognized in profit or loss) are re-
versed to profit or loss.
Financial assets at fair value through other
comprehensive income (FVOCI) - Equity instruments
This category includes mainly equity investments in other
entities irrevocably designated as such upon initial recog-
nition.
Gains and losses on these financial assets are never reclas-
sified to profit or loss. The Group may transfer the cumula-
tive gain or loss within equity.
Equity instruments designated at fair value through OCI
are not subject to impairment testing.
Dividends on such investments are recognized in profit or
loss unless they clearly represent a recovery of a part of the
cost of the investment.
Financial assets at fair value through profit or loss
This category mainly includes: securities, equity invest-
ments in other companies, financial investments in funds
held for trading and financial assets designated as at fair
value through profit or loss at initial recognition.
Financial assets at fair value through profit or loss are:
• financial assets with cash flows that are not solely pay-
ments of principal and interest, irrespective of the busi-
ness model;
• financial assets held for trading because acquired or
incurred principally for the purpose of selling or repur-
chasing in the short term;
• debt instruments designated upon initial recognition,
under the option allowed by IFRS 9 (fair value option),
if doing so eliminates, or significantly reduces, an ac-
counting mismatch;
• derivatives, including separated embedded derivatives,
held for trading or not designated as effective hedging
instruments.
Such financial assets are initially recognized at fair value
with subsequent gains and losses from changes in their
fair value recognized through profit or loss.
This category also includes listed equity investments which
the Group had not irrevocably elected to classify at fair val-
ue through OCI. Dividends on listed equity investments are
also recognized as other income in the income statement
when the right of payment has been established.
Financial assets that qualify as contingent consideration
are also measured at fair value through profit or loss.
Impairment of financial assets
At each reporting date, the Group recognizes a loss allow-
ance for expected credit losses on trade receivables and
other financial assets measured at amortized cost, debt
instruments measured at fair value through other com-
prehensive income (FVOCI), contract assets and all other
assets within the scope of IFRS 9.
In compliance with IFRS 9, as from January 1, 2018, the
Group adopted a new impairment model based on the
determination of expected credit losses (ECL) using a for-
ward-looking approach. In essence, the model provides
for:
• the application of a single framework for all financial
assets;
• the recognition of expected credit losses on an ongo-
ing basis and the updating of the amount of such losses
at the end of each reporting period, reflecting changes
in the credit risk of the financial instrument;
• the measurement of expected losses on the basis of
reasonable information, obtainable without undue cost,
about past events, current conditions and forecasts of
future conditions.
For trade receivables, contract assets and lease receiva-
bles, including those with a significant financial compo-
nent, the Group adopts the simplified approach, determin-
ing expected credit losses over a period corresponding to
the entire life of the asset, generally equal to 12 months.
For all financial assets other than trade receivables, con-
tract assets and lease receivables, the Group applies the
general approach under IFRS 9, based on the assessment
of a significant increase in credit risk since initial recogni-
tion. Under such approach, a loss allowance on financial
assets is recognized at an amount equal to the lifetime
expected credit losses, if the credit risk on those financial
assets has increased significantly, since initial recognition,
considering all reasonable and supportable information,
including also forward-looking inputs.
If at the reporting date the credit risk on financial assets
has not increased significantly since initial recognition,
the Group measures the loss allowance for those financial
assets at an amount equal to 12-month expected credit
losses.
Notes to the consolidated financial statements
287
287
For financial assets on which a loss allowance equal to life-
time expected credit losses has been recognized in the
previous reporting period, the Group measures the loss al-
lowance at an amount equal to 12-month expected credit
losses when the condition regarding a significant increase
in credit risk is no longer met.
The Group recognizes in profit or loss, as an impairment
gain or loss, the amount of expected credit losses (or re-
versal) that is required to adjust the loss allowance at the
reporting date to the amount that is required to be recog-
nized in accordance with IFRS 9.
The Group applies the low credit risk exemption, avoiding
the recognition of loss allowances at an amount equal to
lifetime expected credit losses due to a significant increase
in credit risk of debt securities at fair value through OCI,
whose counterparty has a strong financial capacity to meet
its contractual cash flow obligations (e.g., investment grade).
For more information on the impairment of financial assets,
please see note 46 “Financial instruments by category”.
Cash and cash equivalents
This category includes deposits that are available on de-
mand or at very short term, as well as highly liquid short-
term financial investments that are readily convertible into
a known amount of cash and which are subject to insignif-
icant risk of changes in value.
In addition, for the purpose of the consolidated statement
of cash flows, cash and cash equivalents do not include
bank overdrafts at the reporting date.
Financial liabilities at amortized cost
This category mainly includes borrowings, trade payables,
lease liabilities and debt instruments.
Financial liabilities, other than derivatives, are recognized
when the Group becomes a party to the contractual claus-
es of the instrument and are initially measured at fair value
adjusted for directly attributable transaction costs. Finan-
cial liabilities are subsequently measured at amortized cost
using the effective interest rate method. The effective in-
terest rate is the rate that exactly discounts the estimated
future cash payments or receipts over the expected life
of the financial instrument or a shorter period, where ap-
propriate, to the carrying amount of the financial asset or
liability.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss in-
clude financial liabilities held for trading and financial lia-
bilities designated upon initial recognition as at fair value
through profit or loss.
Financial liabilities are classified as held for trading if they
are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial in-
struments entered into by the Group that are not desig-
nated as hedging instruments in hedge relationships as
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defined by IFRS 9. Separated embedded derivatives are
also classified as at fair value through profit or loss unless
they are designated as effective hedging instruments.
Gains or losses on liabilities at fair value through profit or
loss are recognized through profit or loss.
Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated at the in-
itial date of recognition, only if the criteria in IFRS 9 are
satisfied.
In this case, the portion of the change in fair value attribut-
able to own credit risk is recognized in other comprehen-
sive income.
The Group has not designated any financial liability as at
fair value through profit or loss, upon initial recognition.
Financial liabilities that qualify as contingent consideration
are also measured at fair value through profit or loss.
Derecognition of financial assets and liabilities
Financial assets are derecognized whenever one of the
following conditions is met:
• the contractual right to receive the cash flows associat-
ed with the asset expires;
• the Group has transferred substantially all the risks and
rewards associated with the asset, transferring its rights
to receive the cash flows of the asset or assuming a
contractual obligation to pay such cash flows to one or
more beneficiaries under a contract that meets the re-
quirements provided by IFRS 9 (the “pass through test”);
• the Group has not transferred or retained substantially
all the risks and rewards associated with the asset but
has transferred control over the asset.
Financial liabilities are derecognized when they are extin-
guished, i.e., when the contractual obligation has been dis-
charged, cancelled or expired.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modi-
fied, such an exchange or modification is treated as the
derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognized in profit or loss.
Derivative financial instruments
A derivative is a financial instrument or another contract:
• whose value changes in response to the changes in an
underlying variable such as an interest rate, commodity
or security price, foreign exchange rate, a price or rate
index, a credit rating or other variable;
• that requires no initial net investment, or one that is
smaller than would be required for a contract with simi-
lar response to changes in market factors;
• that is settled at a future date.
Derivative instruments are classified as financial assets or
liabilities depending on the positive or negative fair value
and they are classified as “held for trading” within “Other
business models” and measured at fair value through prof-
it or loss, except for those designated as effective hedging
instruments.
All derivatives held for trading are classified as current as-
sets or liabilities.
Derivatives not held for trading purposes, but measured at
fair value through profit or loss since they do not qualify for
hedge accounting, and derivatives designated as effective
hedging instruments are classified as current or not cur-
rent on the basis of their maturity date and the Group in-
tention to hold the financial instrument till maturity or not.
For more details about derivatives and hedge accounting,
please see note 49 “Derivatives and hedge accounting”.
Embedded derivatives
An embedded derivative is a derivative included in a
“combined” contract (the so-called “hybrid instrument”)
that contains another non-derivative contract (the so-
called “host contract”) and gives rise to some or all of the
combined contract’s cash flows.
The main Group contracts that may contain embedded
derivatives are contracts to buy or sell non-financial items
with clauses or options that affect the contract price, vol-
ume or maturity.
A derivative embedded in a hybrid contract containing a
financial asset host is not accounted for separately. The
financial asset host together with the embedded deriva-
tive is required to be classified in its entirety as a financial
asset at fair value through profit or loss.
Contracts that do not represent financial instruments to
be measured at fair value are analyzed in order to iden-
tify any embedded derivatives, which are to be separat-
ed and measured at fair value. This analysis is performed
when the Group becomes party to the contract or when
the contract is renegotiated in a manner that significantly
changes the original associated cash flows.
Embedded derivatives are separated from the host con-
tract and accounted for as derivatives when:
• the host contract is not a financial instrument meas-
ured at fair value through profit or loss;
• the economic risks and characteristics of the embed-
ded derivative are not closely related to those of the
host contract;
• a separate contract with the same terms as the em-
bedded derivative would meet the definition of a de-
rivative.
Embedded derivatives that are separated from the host
contract are recognized in the consolidated financial
statements at fair value with changes recognized in profit
or loss (except when the embedded derivative is part of a
designated hedge relationship).
Contracts to buy or sell non-financial items
In general, contracts to buy or sell non-financial items
that are entered into and continue to be held for receipt
or delivery in accordance with the Group’s normal ex-
pected purchase, sale or usage requirements are out of
the scope of IFRS 9 and then recognized as executory
contracts, according to the “own use exemption”.
A contract to buy or sell non-financial items is classified as
“normal purchase or sale” if it is entered into:
• for the purpose of the physical settlement;
• in accordance with the entity’s expected purchase, sale
or usage requirements.
Moreover, contracts to buy or sell non-financial items with
physical settlement (for example, fixed-price forward con-
tracts on energy commodities) do not qualify for the own
use exemption and are recognized as derivatives meas-
ured at fair value through profit or loss only if:
• they can be settled net in cash; and
• they are not entered into in accordance with the Group’s
expected purchase, sale or usage requirements.
The Group recognizes the fair value gain or loss on con-
tracts for the purchase or sale of energy commodities still
outstanding at the reporting date on a net basis under the
item “Net results from commodity contracts”.
Subsequently, at the settlement date:
• the fair value gain or loss on closed contracts for the
sale of energy commodities as well as the related rev-
enue, together with the impact on profit or loss of the
derecognition of the derivative, are recognized under
“Other revenue”;
• the fair value gain or loss on closed contracts for the
purchase of energy commodities as well as the related
cost, together with the impact on profit or loss of the
derecognition of the derivative, are recognized under
“Electricity, gas and fuel” and “Services and other ma-
terials”.
The Group analyzes all contracts to buy or sell non-fi-
nancial assets on an ongoing basis, with a specific focus
on forward purchases and sales of electricity and energy
commodities, in order to determine if they shall be classi-
fied and treated in accordance with IFRS 9 or if they have
been entered into for “own use”.
Offsetting financial assets and liabilities
The Group offsets financial assets and liabilities when:
• there is a legally enforceable right to set off the recog-
nized amounts; and
• there is the intention of settling on a net basis or real-
izing the asset and settling the liability simultaneously.
Hyperinflation
In a hyperinflationary economy, the Group adjusts
non-monetary items, equity and items deriving from in-
dex-linked contracts up to the limit of recoverable amount,
using a price index that reflects changes in general pur-
chasing power.
The effects of initial application are recognized in equity
Notes to the consolidated financial statements
289
289
net of tax effects. Conversely, during the hyperinflation-
ary period (until it ceases), the gain or loss resulting from
adjustments is recognized in profit or loss and disclosed
separately in financial income and expense.
Starting from 2018, this standard applies to the Group’s
transactions in Argentina, whose economy has been de-
clared hyperinflationary from July 1, 2018.
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 recov-
ered principally through a sale transaction, rather than
through continuing use.
is applicable only when
This classification criterion
non-current 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 subsid-
iary after the sale.
The Group applies these classification criteria as envis-
aged in IFRS 5 to an investment, or a portion of an in-
vestment, 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 state-
ment 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-cur-
rent assets (or disposal groups) as held for sale, the car-
rying amounts of such assets (or disposal groups) are
measured in accordance with the accounting standard
applicable to those assets or liabilities. Non-current as-
sets (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 opera-
tions.
Non-current assets are not depreciated (or amortized)
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while 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
groups) 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
depreciation, 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 in-
cluded 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 geo-
graphical segment;
• is part of a single coordinated plan to dispose of a sep-
arate major business line or geographical segment; or
• is a subsidiary acquired exclusively with a view to re-
sale.
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 dis-
continued operation.
The corresponding amount is restated in the income
statement for prior periods presented in the financial
statements, so that the disclosures relate to all operations
that are discontinued by the end of the current report-
ing period. 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 Emissions Trading System.
Green certificates accrued in proportion to electricity
generated by renewable energy plants and energy effi-
ciency certificates accrued in proportion to energy sav-
ings achieved that have been certified by the compe-
tent authority are treated as non-monetary government
grants related to income and are recognized at fair value,
under other operating profit, with recognition of an as-
set under other non-financial 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
account, they are reclassified from other assets to inven-
tories.
Revenue from the sale of such certificates is recognized
under revenue from contracts with customers, with a
corresponding decrease in inventories.
For the purposes of accounting for charges arising from
regulatory requirements concerning green certificates,
energy efficiency certificates and CO2 emissions allow-
ances, the Group uses the “net liability approach”.
Under this accounting policy, environmental certificates
received free of charge and those self-produced as a
result of Group’s operations that will be used for com-
pliance purposes are recognized at nominal value (nil). In
addition, charges incurred for obtaining (in the market or
in some other transaction for consideration) any missing
certificates to fulfil compliance requirements for the re-
porting period are recognized through profit or loss on an
accruals basis under other operating costs, as they rep-
resent “system charges” consequent to compliance with
a regulatory requirement.
Employee benefits
Liabilities related to employee benefits paid upon or after
ceasing employment in connection with defined bene-
fit plans or other long-term benefits accrued during the
employment period are determined separately for each
plan, using actuarial assumptions to estimate the amount
of the future benefits that employees have accrued at the
reporting date (using the projected unit credit method).
More specifically, the present value of the defined benefit
obligation is calculated by using a discount rate deter-
mined on the basis of market yields at the end of the re-
porting period on high-quality corporate bonds. If there
is no deep market for high-quality corporate bonds in the
currency in which the bonds are denominated, the corre-
sponding yield of government securities is used.
The liability, net of any plan assets, is recognized on an
accruals basis over the vesting period of the related
rights. These appraisals are performed by independent
actuaries.
If the plan assets exceed the present value of the related
defined benefit obligation, the surplus (up to the limit of
any cap) is recognized as an asset.
As regards the liabilities/(assets) of defined benefit plans,
the cumulative actuarial gains and losses from the ac-
tuarial measurement of the liabilities, the return on the
plan assets (net of the associated interest income) and
the effect of the asset ceiling (net of the associated inter-
est) are recognized in other comprehensive income when
they occur. For other long-term benefits, the related ac-
tuarial gains and losses are recognized through profit or
loss.
In the event of a change being made to an existing de-
fined benefit plan or the introduction of a new plan, any
past service cost is recognized immediately in profit or
loss.
In addition, the Group is involved in defined contribution
plans under which it pays fixed contributions to a sepa-
rate entity (a fund) and has no legal or constructive obli-
gation to pay further contributions if the fund does not
hold sufficient assets to pay all employee benefits relat-
ing to employee service in the current and prior periods.
Such plans are usually aimed to supplement pension
benefits due to employees post-employment. The related
costs are recognized through profit or loss on the basis
of the amount of contributions paid in the period.
Termination benefits
Liabilities for benefits due to employees for the early ter-
mination of employee service arise out of the Group’s de-
cision to terminate an employee’s employment before the
normal retirement date or an employee’s decision to ac-
cept an offer of benefits in exchange for the termination
of employment. The event that gives rise to an obligation
is the termination of employment rather than employee
service. Termination benefits are recognized at the earlier
of the following dates:
• when the entity can no longer withdraw its offer of
benefits; and
• when the entity recognizes a cost for a restructuring
that is within the scope of IAS 37 and involves the pay-
ment of termination benefits.
The liabilities are measured on the basis of the nature of
the employee benefits. More specifically, when the ben-
efits represent an enhancement of other post-employ-
ment benefits, the associated liability is measured in ac-
cordance with the rules governing that type of benefits.
Otherwise, if the termination benefits due to employees
are expected to be fully settled before 12 months of the
close of the period in which the benefits are recognized,
the entity measures the liability in accordance with the
requirements for short-term employee benefits; if they
are not expected to be fully settled before 12 months of
the close of period in which the benefits are recognized,
the entity measures the liability in accordance with the
requirements for other long-term employee benefits.
Share-based payments
The Group undertakes share-based payment transac-
tions settled with equity instruments as part of the remu-
Notes to the consolidated financial statements
291
291
neration policy adopted for the Chief Executive Officer/
General Manager and for key management personnel.
The most recent long-term incentive plans provide for
the grant to recipients of an incentive represented by an
equity component and a monetary component.
In order to settle the equity component through the bo-
nus award of Enel shares, a program for the purchase of
treasury shares to support these plans was approved. For
more details on share-based incentive plans, please see
note 51 “Share-based payments”.
The Group recognizes the services rendered by employ-
ees as personnel expenses and indirectly estimates their
value, and the corresponding increase in equity, on the
basis of the fair value of the equity instruments (i.e., Enel
shares) at the grant date. This fair value is based on the
observable market price of Enel (on the Mercato Tele-
matico Azionario (electronic stock exchange) organized
and operated by Borsa Italiana SpA), taking account of
the terms and conditions under which the shares were
granted (with the exception of vesting conditions exclud-
ed from the measurement of fair value).
The cost of these share-based payment transactions set-
tled with equity instruments is recognized through profit
or loss, with a balancing entry in a specific equity item,
over the period in which the service and return perfor-
mance conditions are met (vesting period).
The overall expense recognized is adjusted at each re-
porting date until the vesting date to reflect the best
estimate available to the Group of the number of equity
instruments for which the service and performance con-
ditions other than market conditions will be satisfied, so
that the amount recognized at the end is based on the
effective number of equity instruments that satisfy the
service and performance conditions other than market
conditions at the vesting date.
No expense is recognized for awards which ultimately do
not vest because the performance conditions other than
market conditions and/or the service conditions have not
been satisfied. Conversely, the transactions are consid-
ered to have vested irrespective of whether the market
or non-vesting conditions are satisfied, provided that all
the other performance and/or service conditions are sat-
isfied.
Provisions for risks and charges
Provisions are recognized where there is a legal or con-
structive obligation as a result of a past event at the end
of the reporting period, the settlement of which is expect-
ed to result in an outflow of resources whose amount can
be reliably estimated. Where the impact is significant, the
accruals are determined by discounting expected future
cash flows using a pre-tax discount rate that reflects the
current market assessment of the time value of money
and, if applicable, the risks specific to the liability.
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Integrated Annual Report 2021
If the provision is discounted, the periodic adjustment of
the present value for the time factor is recognized as a
financial expense.
When the Group expects some or all charges to be reim-
bursed, the reimbursement is recognized as a separate
asset, but only when the reimbursement is virtually certain.
Where the liability relates to decommissioning and/or site
restoration in respect of property, plant and equipment,
the initial recognition of the provision is made against the
related asset and the expense is then recognized in profit
or loss through the depreciation of the asset involved.
Where the liability regards the treatment and storage of
nuclear waste and other radioactive materials, the pro-
vision is recognized against the related operating costs.
A liability for restructuring refers to a program planned
and controlled by management that materially changes
the scope of a business undertaken by the Group or the
manner in which the business is conducted. Such a lia-
bility is recognized when a constructive obligation is es-
tablished, i.e., when the Group has approved a detailed
formal restructuring plan and has started to implement
the plan or has announced its main features to those af-
fected by it.
Provisions do not include liabilities in respect of uncertain
income tax treatments that are recognized as tax liabili-
ties.
The Group could provide a warranty in connection with
the sale of a product (whether a good or service) from
contracts with customers in the scope of IFRS 15, in ac-
cordance with the contract, the law or its customary busi-
ness practices. In this case, the Group assesses whether
the warranty provides the customer with assurance that
the related product will function as the parties intended
because it complies with agreed-upon specifications or
whether the warranty provides the customer with a ser-
vice in addition to the assurance that the product com-
plies with agreed-upon specifications.
After the assessment, if the Group establishes that an
assurance warranty is provided, it recognizes a separate
warranty liability and corresponding expense when trans-
ferring the product to the customer, as additional costs of
providing goods or services, without attributing any of the
transaction price (and therefore revenue) to the warranty.
The liability is measured and presented as a provision.
Otherwise, if the Group determines that a service warran-
ty is provided, it accounts for the promised warranty as a
performance obligation in accordance with IFRS 15, rec-
ognizing the contract liability as revenue over the period
the warranty service is provided and the costs associated
as they are incurred.
Finally, if the warranty includes both an assurance ele-
ment and a service element and the Group cannot rea-
sonably account for them separately, then it accounts for
both of the warranties together as a single performance
obligation.
In the case of contracts in which the unavoidable costs of
meeting the obligations under the contract exceed the
economic benefits expected to be received under it (on-
erous contracts), the Group recognizes a provision as the
lower of the excess of unavoidable costs of meeting the
obligations under the contract over the economic bene-
fits expected to be received under it and any compensa-
tion or penalty arising from failure to fulfil it.
Changes in estimates of accruals to the provisions ad-
dressed here are recognized through profit or loss in the
period in which the changes occur, with the exception of
those in the costs of decommissioning, retiring and/or
restoration resulting from changes in the timetable and
costs necessary to extinguish the obligation or from a
change in the discount rate. These changes increase or
decrease the carrying amount of the related assets and
are taken to profit or loss through depreciation. Where
they increase the carrying amount of the assets, it is also
determined whether the new carrying amount of the as-
sets is fully recoverable. If this is not the case, a loss equal
to the unrecoverable amount is recognized through profit
or loss.
Decreases in estimates are recognized up to the carrying
amount of the assets. Any excess is recognized immedi-
ately in profit or loss.
For more information on the estimation criteria adopted
in determining provisions for retiring and/or restoration
of property, plant and equipment, especially those asso-
ciated with decommissioning nuclear power plants and
storage of waste fuel and other radioactive materials,
please see note 2.1 “Use of estimates and management
judgment”.
Revenue from contracts with customers
The Group recognizes revenue from contracts with cus-
tomers in order to represent the transfer of promised
goods or services to the customers at an amount that
reflects the consideration to which the Group expects to
be entitled in exchange for those goods or services.
The Group applies this core principle using a five-step
model:
• identify the contract with the customer (step 1).
The Group applies IFRS 15 to contracts with customers
in the scope of the standard when the contract is le-
gally enforceable and all the criteria envisaged for step
1 are met:
If the criteria are not met, any consideration received
from the customer is generally recognized as an ad-
vance;
• identify the performance obligations in the contract
(step 2).
The Group identifies all goods or services promised in
the contract, separating them into performance obli-
gations to account for separately if they are both: ca-
pable of being distinct and distinct within the context
of the contract.
As an exception, the Group accounts for as a single
performance obligation a series of distinct goods or
services that are substantially the same and that have
the same pattern of transfer to the customer over
time.
In assessing the existence and the nature of the per-
formance obligations, the Group considers all of the
contract’s features as mentioned in step 1.
For each distinct good or service identified, the Group
determines whether it acts as a principal or agent,
respectively if it controls or not the specified good
or service that is promised to the customer before
its control is transferred to the customer. When the
Group acts as agent, it recognizes revenue on a net
basis, corresponding to any fee or commission to
which it expects to be entitled;
• determine the transaction price (step 3).
The transaction price represents the amount of con-
sideration to which the Group expects to be entitled in
exchange for transferring goods or services to a cus-
tomer, excluding amounts collected on behalf of third
parties (e.g., some sale taxes and value-added taxes).
The Group determines the transaction price at incep-
tion of the contract and updates it each reporting pe-
riod for any changes in circumstances.
When the Group determines the transaction price, it
considers whether the transaction price includes var-
iable consideration, non-cash consideration received
from a customer, consideration payable to a customer
and a significant financing component;
• allocate the transaction price (step 4).
The Group allocates the transaction price at contract
inception to each separate performance obligation
to depict the amount of consideration to which the
Group expects to be entitled in exchange for transfer-
ring the promised goods or services.
When the contract includes a customer option to
acquire additional goods or services that represents
a material right, the Group allocates the transaction
price to this performance obligation (i.e., the option)
and defers the relative revenue until those future
goods or services are transferred or the option ex-
pires.
The Group generally allocates the transaction price on
the basis of the relative stand-alone selling price of
each distinct good or service promised in the contract
(that is, the price at which the Group would sell that
good or service separately to the customer);
• recognize revenue (step 5).
The Group recognizes revenue when (or as) each perfor-
mance obligation is satisfied by transferring the prom-
ised good or service to the customer, which is when the
customer obtains control of the good or service.
Notes to the consolidated financial statements
293
293
To this end, the Group first determines if one of the
over-time criteria is met.
(or the payment is due) that is recognized as revenue
when the Group performs under the contract.
For each performance obligation satisfied over time,
the Group recognizes revenue over time by measuring
progress toward the complete satisfaction of that per-
formance obligation using an output method or an in-
put method and applies a single method of measuring
progress from contract inception until full satisfaction
and to similar performance obligations and in similar
circumstances.
When the Group cannot reasonably measure the pro-
gress, it recognizes revenue only to the extent of the
costs incurred that are considered recoverable.
If the performance obligation is not satisfied over time,
the Group determines the point in time at which the
customer obtains the control, considering whether the
indicators of the transfer of control collectively indi-
cate that the customer has obtained control.
Depending on the type of transaction, the broad crite-
ria 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 of goods if the Group considers that the
sale of goods is satisfied at a point in time;
– revenue from providing services is recognized on
the basis of the progress towards complete sat-
isfaction of the performance obligation measured
with an appropriate method that better depicts
this progress if the Group considers that the per-
formance obligation is satisfied over time. The cost
incurred method (cost-to-cost method) is consid-
ered appropriate for measuring progress, except
when specific contract analyses suggest the use
of an alternative method, which better depicts the
Group’s performance obligation fulfilled at the re-
porting date.
The Group does not disclose the information about the
remaining performance obligations in existing contracts
if the performance obligation is part of a contract that
has an original expected duration of one year or less and
if the Group recognizes revenue in the amount to which it
has a right to invoice the customer.
More information on the application of this revenue rec-
ognition model is provided in note 2.1 “Use of estimates
and management judgment” and in note 10.a “Revenue
from sales and services”.
If the Group performs by transferring goods or services
to a customer before the customer pays the consider-
ation or before payment is due, it recognizes a contract
asset relating to the right to consideration in exchange
for goods or services transferred to the customer.
If a customer pays the consideration before the Group
transfers goods or services to the customer, the Group
recognizes a contract liability when the payment is made
294
294
Integrated Annual Report 2021
Other revenue
The Group recognizes revenue other than that deriving
from contracts with customers mainly referring to:
• revenue from the sale of energy commodities based
on contracts with physical settlement, which do not
qualify for the own use exemption and therefore is
recognized at FVTPL in accordance with IFRS 9;
• changes in the fair value of settled contracts to sell en-
ergy commodities with physical settlement, which do
not qualify for the own use exemption and therefore
are recognized at FVTPL in accordance with IFRS 9;
• operating lease revenue accounted for on an accruals
basis in accordance with the substance of the relevant
lease agreement.
Other operating income
Other operating income primarily includes gains on dis-
posal of assets that are not an output of the Group’s ordi-
nary activities and government grants.
Grants related to assets, including non-monetary grants
at fair value, are recognized where there is reasonable
assurance that they will be received and that the Group
will comply with all conditions attaching to them as set by
the government, government agencies and similar bodies
whether local, national or international.
When loans are provided by governments at a below-mar-
ket rate of interest, the benefit is regarded as a govern-
ment grant. The loan is initially recognized and measured
at fair value and the government grant is measured as the
difference between the initial carrying amount of the loan
and the funds received. The loan is subsequently meas-
ured in accordance with the requirements for financial
liabilities.
Government grants are recognized in profit or loss on a
systematic basis over the periods in which the Group rec-
ognizes as expenses the costs that the grants are intend-
ed to compensate.
Where the Group receives government grants in the form
of a transfer of a non-monetary asset for the use of the
Group, it accounts for both the grant and the asset at the
fair value of the non-monetary asset received at the date
of the transfer.
Capital grants, including non-monetary grants at fair val-
ue, i.e., those received to purchase, build or otherwise ac-
quire non-current assets (for example, an item of property,
plant and equipment or an intangible asset), are deducted
from the carrying amount of the asset and are recognized
in profit or loss over the depreciable/amortizable life of
the asset as a reduction in the depreciation/amortization
charge. If there is insufficient information to enable ade-
quate attribution to the non-current assets to which they
refer, grants related to assets are recognized as deferred
income under other liabilities, and credited to profit or loss
on a systematic basis over the useful life of the asset.
Financial income and expense from
derivatives
Financial income and expense from derivatives includes:
• income and expense from derivatives measured at fair
value through profit or loss on interest rate and cur-
rency risks;
• income and expense from fair value hedge derivatives
on interest rate risk;
• income and expense from cash flow hedge derivatives
on interest rate and currency risks.
Other financial income and expense
For all financial assets and liabilities measured at amor-
tized cost and interest-bearing financial assets classified
as at fair value through other comprehensive income, in-
terest income and expense are recognized using the ef-
fective interest rate method.
Interest income is recognized to the extent that it is prob-
able that the economic benefits will flow to the Group and
the amount can be reliably measured.
Other financial income and expense include also changes
in the fair value of financial instruments other than de-
rivatives.
Dividends
Dividends are recognized when the unconditional right to
receive payment is established.
Dividends and interim dividends payable to the Parent’s
shareholders and non-controlling interests are recog-
nized as changes in equity in the period in which they are
approved by the Shareholders’ Meeting and the Board of
Directors, respectively.
Income taxes
Current income taxes
Current income taxes for the year, which are recognized
under “income tax liabilities” net of payments on account,
or under “tax assets” where there is a credit balance, are
determined using an estimate of taxable income and in
conformity with the applicable regulations.
Such liabilities and assets are determined using the tax
rates and tax laws that are enacted or substantively en-
acted by the end of the reporting period in the countries
where taxable income has been generated.
Current income taxes are recognized in profit or loss with
the exception of current income taxes related to items
recognized outside profit or loss that are recognized in
equity.
Deferred tax liabilities and assets
Deferred tax liabilities and assets are calculated on the
temporary differences between the carrying amounts of
liabilities and assets in the financial statements and their
corresponding amounts recognized for tax purposes on
the basis of tax rates in effect on the date the temporary
difference will reverse, which is determined on the basis
of tax rates that are enacted or substantively enacted as
at the end of the reporting period.
Deferred tax liabilities are recognized for all taxable tem-
porary differences, except when such liability arises from
the initial recognition of goodwill or in respect of taxa-
ble temporary differences associated with investments
in subsidiaries, associates and joint ventures, when the
Group can control the timing of the reversal of the tem-
porary differences and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible tem-
porary differences, the carry forward of tax losses and any
unused tax credits. For more information concerning the
recoverability of such assets, please see the appropriate
section of the discussion of estimates.
Deferred taxes and liabilities are recognized in profit or
loss, with the exception of those in respect of items rec-
ognized outside profit or loss that are recognized in eq-
uity.
Deferred tax assets and deferred tax liabilities are offset
only if there is a legally enforceable right to offset current
tax assets with current tax liabilities and when they relate
to income taxes levied by the same taxation authority on
either the same taxable entity or different taxable entities
which intend either to settle current tax liabilities and as-
sets on a net basis, or to realize the assets and settle the
liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Uncertainty over income tax treatments
In defining “uncertainty“, it shall be considered whether a
particular tax treatment will be accepted by the relevant
taxation authority. If it is deemed probable that the tax
treatment will be accepted (where the term “probable“ is
defined as “more likely than not“), then the Group rec-
ognizes and measures its current/deferred tax asset or
liabilities applying the requirements in IAS 12.
Conversely, when the Group feels that it is not likely that
the taxation authority will accept the tax treatment for
income tax purposes, the Group reflects the uncertainty
in the manner that best predicts the resolution of the un-
certain tax treatment. The Group determines whether to
consider each uncertain tax treatment separately or to-
gether with one or more other uncertain tax treatments
Notes to the consolidated financial statements
295
295
based on which approach provides better predictions of
the resolution of the uncertainty. In assessing whether
and how the uncertainty affects the tax treatment, the
Group assumes that a taxation authority will accept or
not an uncertain tax treatment supposing that the tax-
ation authority will examine amounts it has a right to ex-
amine and have full knowledge of all related information
when making those examinations. The Group reflects the
effect of uncertainty in accounting for current and de-
ferred tax using the expected value or the most likely
amount, whichever method better predicts the resolution
of the uncertainty.
Since uncertain income tax positions meet the definition
of income taxes, the Group presents uncertain tax liabili-
ties/assets as current tax liabilities/assets or deferred tax
liabilities/assets.
3. New and amended standards and interpretations
The Group has applied the following standards, interpre-
tations and amendments that took effect as from January
1, 2021.
• “Amendments to IFRS 9, IAS 39, IFRS 7, and IFRS 16 –
Interest Rate Benchmark Reform – Phase 2”, issued in
August 2020. The amendments supplement those is-
sued in 2019 (Interest Rate Benchmark Reform - Phase
1) and address issues that could affect financial report-
ing after a benchmark has been reformed or replaced
with an alternative benchmark rate. The objectives of
the Phase 2 amendments are to assist companies: (i) in
applying the IFRSs when changes occur in contractual
cash flows or hedge relationships due to the reform
of the benchmarks for determining interest rates; and
(ii) in providing information to users of financial state-
ments.
In addition, when the Phase 1 exemptions cease to ap-
ply, companies are required to amend the documen-
tation of hedge relationship to reflect the changes re-
quired under the IBOR reform by the end of the year
in which the changes are made (such changes do not
constitute the discontinuation of the hedge relation-
ship). When the description of a hedged element in the
documentation of the hedge relationship is changed,
the amounts accumulated in the hedging reserve shall
be considered to be based on the alternative bench-
mark rate on the basis of which the future hedged
cash flows will be determined.
The amendments will require providing additional dis-
closures about the entity’s exposure to the risks aris-
ing from the interest rate benchmark reform and relat-
ed risk management activities.
• “Amendment to IFRS 16: COVID 19-related rent con-
cessions beyond 30 June 2021”, issued on May 28,
2020 in order to permit lessees to not account for rent
concessions (rent payment holidays, deferral of lease
payments, reductions in rent for a period of time, pos-
sibly followed by rent increases in future periods) as
lease modifications if they are a direct consequence of
the COVID-19 pandemic and meet certain conditions.
According to IFRS 16, a lease modification is a change
in the scope of a lease, or the consideration for a lease,
that was not part of the original terms and conditions
of the lease. Accordingly, rent concessions would rep-
resent lease modifications unless they were provided
for in the original lease agreement. The amendment
applies only to lessees, while lessors are required to
apply the current provisions of IFRS 16.
The amendment was to be applied until June 30, 2021
but, in consideration of the persistence of the impacts
of the COVID-19 pandemic, on March 31, 2021, the
IASB extended the period of application of the practi-
cal expedient to June 30, 2022.
The application of the amendments did not have a ma-
terial impact on these consolidated financial statements.
4. Argentina - Hyperinflationary economy:
impact of the application of IAS 29
As from July 1, 2018, the Argentine economy has been
considered hyperinflationary based on the criteria estab-
lished by “IAS 29 - Financial reporting in hyperinflation-
ary economies”. This designation is determined following
an assessment of a series of qualitative and quantitative
circumstances, including the presence of a cumulative
inflation rate of more than 100% over the previous three
years.
For the purposes of preparing the consolidated financial
statements at December 31, 2021, and in accordance
with IAS 29, certain items of the statements of financial
position of the investees in Argentina have been remeas-
ured by applying the general consumer price index to
historical data in order to reflect changes in the purchas-
ing power of the Argentine peso at the reporting date for
those companies.
296
296
Integrated Annual Report 2021
Bearing in mind that the Enel Group acquired control of
the Argentine companies on June 25, 2009, the remeas-
urement of the non-monetary financial statement figures
was conducted by applying the inflation indices starting
from that date. In addition to being already reflected in
the opening statement of financial position, the account-
ing effects of that remeasurement also include chang-
es during the period. More specifically, the effect of the
remeasurement of non-monetary items, the equity items
and the income statement items recognized in 2021 was
recognized in a specific line of the income statement un-
der financial income and expense. The associated tax ef-
fect was recognized in taxes for the year.
In order to also take account of the impact of hyperin-
flation on the exchange rate of the local currency, the
income statement balances expressed in the hyperinfla-
tionary currency have been translated into the Group’s
presentation currency (euro) applying, in accordance with
IAS 21, the closing exchange rate rather than the aver-
age rate for the year in order to adjust these amounts to
present values.
The cumulative changes in the general price indices at
December 31, 2018, December 31, 2019, December 31,
2020 and December 31, 2021 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
From January 1, 2021 to December 31, 2021
Cumulative change
in general consumer
price index
346.30%
54.46%
35.41%
49.73%
In 2021, the application of IAS 29 generated net financial
income (gross of tax) of €20 million.
The following tables report the effects of IAS 29 on the
balance at December 31, 2021 and the impact of hyper-
inflation on the main income statement items for 2021,
differentiating between that concerning the revaluation
on the basis of the general consumer price index and that
due to the application of the closing exchange rate rather
than the average exchange rate for the period, in accord-
ance with the provisions of IAS 21 for hyperinflationary
economies.
Millions of euro
Total assets
Total liabilities
Equity
Cumulative hyperinflation
effect at Dec. 31, 2020
Hyperinflation effect for the
period
Exchange differences
Cumulative
hyperinflation effect at
Dec. 31, 2021
962
192
770
594
173
421(1)
(190)
(19)
(171)
1,366
346
1,020
(1) The figure includes loss for the year, equal to €122 million.
Millions of euro
Revenue
Costs
Operating profit
Net financial income/(expense)
Net income/(expense) from hyperinflation
Pre-tax profit
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 at Dec. 31, 2021
143
182(1)
(39)
(13)
20
(32)
90
(122)
(80)
(42)
(26)
(25)(2)
(1)
-
-
(1)
(3)
2
27
(25)
117
157
(40)
(13)
20
(33)
87
(120)
(53)
(67)
(1)
(2)
Includes impact on depreciation, amortization and impairment losses of €62 million.
Includes impact on depreciation, amortization and impairment losses of €(2) million.
Notes to the consolidated financial statements
297
297
5. Climate change disclosures
The move towards “net zero” is under way worldwide and
the processes of decarbonization and electrification of the
global economy are crucial to avoiding the serious conse-
quences of an increase in temperatures of over 1.5 °C.
With this outlook, the Group has set its strategic guide-
lines as follows:
• allocate capital to support a decarbonized electricity
supply;
• enable the electrification of customers’ energy demand;
• leverage the creation of value along the value chain;
• bring forward achievement of the sustainable “net-ze-
ro” goals to 2040.
The Group has considered the risks related to climate
change and the commitments established under the Paris
Agreement in the preparation of these consolidated finan-
cial statements at December 31, 2021, which appropriately
reflect the effects of achieving the carbon neutrality ob-
jectives on assets, liabilities, and profit and loss, highlight-
ing its significant and foreseeable impacts as required un-
der the Conceptual Framework of the IFRS.
In this regard, in accordance with the provisions of the
document published by the IFRS Foundation on November
20, 2020,(23) the Group provides explicit information in the
notes to these consolidated financial statements regard-
ing how climate change is reflected in our accounts.
For a more effective and comprehensive communication
concerning climate change disclosures prepared as part
of the notes to these consolidated financial statements,
we have mapped this disclosure as shown below, providing
references to the various sections where issues associated
with climate change are addressed.
Topic
Note
Estimates and
judgments concerning
climate change
Note 2.1 “Use of estimates and
management judgment”
Sustainable investment Note 18 “Property, plant and equipment”
Note 22 “Intangible assets”
Measurement of non-
financial assets
Note 11.e “Depreciation, amortization
and other impairment losses”
Note 18 “Property, plant and equipment”
Note 23 “Goodwill”
Provisions
Note 39 “Provisions for risks and
charges”
Sustainable finance
Note 46.3 “Borrowings”
Note 57 “Events after the reporting
period”
Content
• Reference to management’s use of estimates and judgments with regard
to climate change (taking account of their materiality within financial
reporting).
• Focus on estimating expected cash flows from specific assets/CGUs
• Focus of the effects of the Group’s commitments under the Paris
(section: "Impairment of non-financial assets”).
Agreement and their impact on the estimation of the useful life of the
assets involved (section “Determining the useful life of non-financial
assets”).
• Focus on assets involved in renewable generation, infrastructure
connected with the development of the grid and investment in expanding
the e-Mobility, e-City, e-Industries, and e-Home businesses.
• Focus on the development of intellectual property for achieving strategic
objectives such as decarbonization, electrification and the development of
platform models.
• Focus on the effects related to the commitments of the Group in line with
the Paris Agreement with regard to the measurement of non-financial
assets, with particular regard to the residual useful life of certain assets
and impairment testing.
• Focus on the impact of climate change on provisions for risks and charges
connected with generation plants, including those for decommissioning
and restoration of sites, and provisions for restructuring plans linked to the
energy transition (which include decarbonization and digitization).
Focus on:
• issues of sustainability-linked bonds connected with the achievement of
sustainability objectives in line with the SDGs issued by the UN;
• green bonds used to finance specific sustainable Group projects and
• sustainable loans connected with the achievement of Sustainable
initiatives;
Development Goals (SDGs).
Share-based payments Note 51 “Share-based payments”
Environmental
compliance
Note 11.f “Other operating costs”
Note 39 “Provisions for risks and
charges”
Note 2.2 “Significant accounting
policies”
• Description of long-term incentive plans anchored to achievement of
specific climate-related targets.
• Description of the costs connected with environmental compliance
obligations under national and international regulations (in particular
those concerning CO2 emission allowances, green certificates and energy
efficiency certificates).
• Description of costs generated by not having sufficient environmental
certificates to meet environmental compliance regulations.
• Description of accounting treatment of environmental certificates
(sections: “Environmental certificates” and “Inventories”).
(23) “Effects of climate-related matters on financial statements”, which completes an article written by Nick Anderson, member of the International Accounting
Standards Board, on this issue in November 2019.
298
298
Integrated Annual Report 2021
6. COVID-19 disclosures
In view of the challenges posed by current circumstanc-
es, the Group carefully monitors the evolution of the
COVID-19 pandemic with regard to the main areas and
countries in which it operates, in line with the recom-
mendations of ESMA primarily contained in the public
statements(24) published in March, May, July and October
2020, and of CONSOB in its warning notices nos. 6/2020
of April 9, 2020, 8/2020 of July 16, 2020 and 1/2021 of
February 16, 2021.
The Group analyzed the impacts of COVID-19 on busi-
ness operations, the financial position and performance,
also identifying the main risks and uncertainties to which
it is exposed.
Note also that, due to the continuing uncertainty regard-
ing the future evolution of the macroeconomic, financial
and business environment in which the Group operates,
the impacts of the COVID-19 pandemic for the purpos-
es of the Integrated Annual Report at December 31, 2021
are reflected in the assessments and estimates made
by management concerning the carrying amount of the
income statement items, assets and liabilities that expe-
rience the greatest volatility (in particular, revenue and
costs, property, plant and equipment, goodwill, employee
benefits, and financial instruments).
7. Restatement of comparative disclosures
Reclassification of commodity contracts
with physical settlement
In order to improve the representation of contracts en-
tered into for the purchase or sale of commodities with
physical settlement (that do not qualify for the own use
exemption) measured at fair value through profit or loss
(within the scope of IFRS 9), the Group modified their
presentation in the consolidated financial statements in
2021.
More specifically, in 2020:
• the unrealized fair value gain or loss on energy com-
modity sales contracts outstanding at the reporting
date were presented under “Revenue from sales and
services”;
• the unrealized fair value gain or loss on energy com-
modity purchase contracts outstanding at the report-
ing date were presented under “Electricity, gas and
fuel” and “Services and other materials”.
In 2021, the unrealized fair value gain or loss on contracts
for the purchase or sale of energy commodities out-
standing at the reporting date are recognized on a net
basis under the item “Net results from commodity con-
tracts”.
The new presentation method constitutes a change in ac-
counting policy, in accordance with “IAS 8 - Accounting
policies, changes in accounting estimates and errors”.
Accordingly, it was necessary to restate the income state-
ment balances for previous periods for comparative pur-
poses only, with no impact on either net profit or equity.
Reclassification of the remeasurement
at fair value of assets in respect of
concession arrangements (IFRIC 12) in
Brazil
In order to improve the representation of the remeas-
urement at fair value of financial assets in respect of
concession arrangements within the scope of applica-
tion of IFRIC 12 in Brazil in profit or loss, in 2021, the gain
was reclassified from financial income to revenue from
contracts with customers (IFRS 15) since it refers to the
remeasurement at fair value of contract assets.
That said, the following table reports the reclassifications
made to costs, revenue, net results from commodity con-
tracts and financial income in order to restate the com-
parative figures at December 31, 2020.
(24) 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.
Notes to the consolidated financial statements
299
299
Impact on the income statement
Millions of euro
Notes
Effect of
reclassification of
energy commodity
contracts with physical
settlement IFRS 9
2020
Effect of reclassification of
remeasurement at fair value
of financial assets in respect
of concession arrangements
within scope of IFRIC 12 in
Brazil
932
932
977
68
1,045
113
87
87
87
(87)
Revenue
Revenue from sales and services
Other income
Costs
Electricity, gas and fuel
Services and other materials
Personnel expenses
Net impairment losses/(reversals) on trade receivables and other
receivables
Depreciation, amortization and other impairment losses
Other operating costs
Capitalized costs
Net results from commodity contracts
Operating profit
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income/(expense) 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 and non-controlling
interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
Earnings per share
Basic earnings per share
Basic earnings per share
Basic earnings per share from continuing operations
Basic earnings/(loss) per share from discontinued operations
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share from continuing operations
Diluted earnings/(loss) per share from discontinued operations
10.a
10.b
62,623
2,362
[Subtotal]
64,985
11.a
11.b
11.c
11.d
11.e
11.f
11.g
25,049
18,298
4,793
1,285
7,163
2,202
(2,385)
[Subtotal]
56,405
12
13
14
13
14
15
16
(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
-
The figures presented in the comments and the tables of
the notes to these consolidated financial statements at
December 31, 2021 are uniform and comparable with each
other.
300
300
Integrated Annual Report 2021
2020
restated
63,642
2,362
66,004
26,026
18,366
4,793
1,285
7,163
2,202
(2,385)
57,450
(99)
8,455
1,315
2,676
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
-
Changes in the consolidation scope
8. Main acquisitions and disposals during the year
In the two periods under review, the consolidation scope
changed as a result of a number of transactions:
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, was
accounted for using the equity method.
• On July 7, 2020, Enel Green Power España acquired
100% 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 ac-
quired 100% of Suggestion Power (Unipessoal) Ltda for
a total of €6 million.
• On September 17, 2020, Enel X International acquired
60% of Viva Labs AS for a total of €3 million.
• Enel Green Power Panama acquired 100% of Jaguito So-
lar and Progreso Solar in 2020 for a total of €2 million.
In addition to the above changes in the consolidation
scope, the following transactions, although they do not
represent transactions involving the acquisition or loss of
control, gave rise to a change in the interest held by the
Group in the investees in 2020:
• the disposal of a number of 50% owned joint ventures in
Enel North America’s hydroelectric portfolio. In Decem-
ber 2019, the entire portfolio had been classified as held
for sale in accordance with IFRS 5. The gain recognized
in profit or loss was €2 million;
• Enel SpA increased its interest in Enel Américas by
5.03% under the provisions of share swaps entered
into with a financial institution. The Group’s total stake
therefore reached 65% in 2020;
• Enel SpA increased its interest in Enel Chile by 2.89% un-
der the provisions of two share swaps entered into with
a financial institution. The Group’s total stake therefore
reached 64.93% in 2020.
2021
• On January 8, 2021, 100% of Tynemouth Energy Storage
was sold for €1 million. The sale did not have any signif-
icant impact on profit or loss.
• On January 20, 2021 100% of Enel Green Power Bulgaria
was sold for a total of €35 million. The sale did not have
any significant impact on profit or loss.
• On March 10, 2021, Enel Green Power Italy acquired
100% of e-Solar Srl, the owner of a photovoltaic pro-
ject with an authorized capacity of 170.11 MW, for €2.7
million.
• On March 29, 2021, Enel X Srl acquired 100% of City-
Poste Payment SpA, an Italian company that offers
consumers access to payment services through both
physical and digital channels, enabling them to carry
out numerous types of transactions with private- and
public-sector entities.
• In the 1st Quarter of 2021 the consolidation scope
changed with the full consolidation of Australian renew-
able energy companies previously accounted for using
the equity method due to a change in governance ar-
rangements at the companies, without the acquisition
of an additional interest. The purchase price allocation
process was completed in December 2021 and essen-
tially confirmed the carrying amount of the net assets
acquired following an impairment loss of about €9 mil-
lion.
• On May 13, 2021 EGP Solar 1 LLC was sold for a total of
about €4 million.
• In the first nine months of 2021, Enel Green Power Es-
paña acquired 100% of 30 renewables companies for a
total of €86 million.
• On September 8, 2021, Genability was sold by Enel X
North America for about €6 million.
• The purchase price allocation process for Viva Labs AS,
acquired on September 17, 2020 by Enel X International,
was completed in September, following which the car-
rying amounts recognized at the acquisition date were
confirmed.
Other changes
In addition to the above changes in the consolidation
scope, the following transactions, which although they do
not represent transactions involving the acquisition or loss
of control, gave rise to a change in the interest held by the
Group in the investees:
• on March 15, Enel SpA launched a partial voluntary ten-
der offer for up to a maximum of 7,608,631,104 shares of
Enel Américas, equal to 10% of the share capital at that
date. The offer period began on March 15 and ended on
April 13, 2021.The tender offer was subject to the merger
Notes to the consolidated financial statements
301
301
of EGP Américas SpA into Enel Américas SA being com-
pleted, which took place on April 1, 2021. The total price
was €1,271 million. Following completion of the partial
voluntary tender offer and the completion of the EGP
Américas merger, Enel owns about 82.3% of the out-
standing share capital of Enel Américas;
• on November 24, Enel Green Power RSA 2 (Pty) Ltd sold
a stake in the investments held in Oyster Bay Wind Farm,
Garob Wind Farm, Aced Renewables Hidden Valley and
Soetwater Wind Farm for a total of ZAR 340 million, cor-
responding to about €19 million. Following the transac-
tion, the Group’s interest in those companies decreased
from 60% to 55%;
• on December 3, Enel SpA finalized the sale of the entire
stake held in Open Fiber SpA, equal to 50% of the latter’s
share capital, to Macquarie Asset Management and CDP
Equity SpA for a total of about €2,733 million. The capital
gain realized by the Group on a consolidated basis came
to about €1,763 million.
Acquisition of CityPoste Payment
On March 29, 2021, Enel X Srl acquired 100% of CityPoste
Payment SpA, a payment institution authorized to oper-
ate by the Bank of Italy in the provision of payment servic-
es both digitally (using a proprietary platform) and using
physical sites (its network of points of sale).
In December 2021 the identification of the fair value of the
assets acquired and liabilities assumed was completed,
following which negative goodwill of about €1 million was
recognized.
Millions of euro
Net assets acquired
Cost of the acquisition
Goodwill/(Negative goodwill)
Carrying amount
pre March 29, 2021
Adjustments for purchase
price allocation
Amount recognized
at March 29, 2021
2
21
19
20
22
21
(1)
Acquisitions of renewable energy companies in Spain
In the first nine months of 2021 Enel Green Power España
acquired 100% of 30 renewable energy companies for a
total of €86 million for the development and construction
of photovoltaic and wind plants in Spain.
Determination of goodwill
Millions of euro
Net assets acquired
Cost of the acquisition
(of which paid in cash)
Goodwill/(Negative goodwill)
86
86
75
-
The total price of the transaction amounted to €103 million
as it includes repayment of the debt of the acquired com-
panies due to the previous shareholders in the amount of
€17 million.
302
302
Integrated Annual Report 2021
Sale of Open Fiber
On December 3, 2021, Enel SpA finalized the sale of the
entire stake held in Open Fiber SpA, equal to 50% of the
latter’s share capital, to Macquarie Asset Management and
CDP Equity SpA for a total of about €2,733 million. The
capital gain realized by the Group on a consolidated basis
came to about €1,763 million.
The price was collected in full.
Millions of euro
Value of the transaction
Value of the investment at December 2, 2021
Early settlement of financial asset with Open Fiber and related income
Reversal of OCI reserve
Consolidated capital gain
9. Segment reporting
2,733.3
(614.5)
(310.6)
(45.1)
1,763.1
The representation of the financial position and perfor-
mance by business segment and geographical segment
presented here is based on the approach used by man-
agement in monitoring Group performance for the two
years being compared.
Notes to the consolidated financial statements
303
303
Performance by business segment
Results for 2021(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 results from
commodity contracts
Depreciation and
amortization
Impairment losses
Impairment gains
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
Total
22,883
7,244
17,164
37,396
1,513
20
1,786
88,006
-
88,006
10,272
2,282
3,492
1,312
28
1,977
148
19,511
(19,511)
-
33,155
32,791
9,526
4,710
20,656
38,708 1,541
1,997
1,934
107,517
(19,511) 88,006
13,446
37,762
1,258
2,083
422
92,472
(19,511)
72,961
535
(55)
-
2,044
-
-
(2)
2,522
929
1,297
2,692
410
222
188
36
5,774
Operating profit
(2,586)
3,082
4,348
1,657
2,568
(12)
392
(10)
205
(35)
1,126
(203)
37
(6)
30
51
(2)
2
-
4,381
(268)
(323)
1,472
7,680
Capital expenditure
822
5,662(2)
5,296
643
367
139
68
12,997
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €111 million regarding units classified as “held for sale”.
Results for 2020(1) (2) (3) (4)
-
-
-
-
-
-
2,522
5,774
4,381
(268)
7,680
12,997
Millions of euro
Revenue and other
income from third
parties
Revenue and other
income from
transactions with
other segments
Total revenue
Total costs
Net results from
commodity contracts
Depreciation and
amortization
Impairment losses
Impairment gains
Operating profit
Capital expenditure
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
Total
14,332
5,852
15,919
28,793
1,097
2
9
66,004
-
66,004
7,404
1,840
3,510
715
24
1,868
145
15,506
(15,506)
-
19,429
29,508 1,121
1,870
11,909
26,651
969
1,911
81,510
(15,506) 66,004
64,508
(15,506)
49,002
21,736
19,615
(421)
778
950
(43)
15
694
7,692
3,113
68
-
264
-
1,252
2,597
366
150
728
(67)
2,734
4,629
621
(47)
4,349
3,937
1,079
(141)
1,817
460
18
-
(16)
303
154
340
(4)
28
1
(1)
(6)
172
11
(4)
(99)
5,343
3,408
(303)
(226)
(218)
8,455
103
71
10,197
-
-
-
-
-
-
(99)
5,343
3,408
(303)
8,455
10,197
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figures for revenue from third parties and transactions with other segments have been calculated more accurately.
(3) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(4) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
304
304
Integrated Annual Report 2021
Performance by geographical segment
Results for 2021(1)
Millions of euro
Italy
Iberia
Latin America
Europe North America
Africa, Asia and
Oceania
Other,
eliminations and
adjustments
Total
Revenue and other
income from third
parties
Revenue and other
income from
transactions with other
segments
44,282
20,800
16,956
2,335
1,479
240
1,914
88,006
1,135
252
1
13
34
1
(1,436)
-
Total revenue
45,417
21,052
16,957
2,348
1,513
Total costs
40,751
17,412
12,867
2,063
Net results from
commodity contracts
Depreciation and
amortization
1,967
543
53
38
2,107
1,754
1,177
Impairment losses
1,747
1,797
Impairment gains
Operating profit
Capital expenditure
(22)
2,801
3,842
(170)
802
2,203
536
(9)
2,439
3,722
186
87
(65)
115
455
748
(81)
356
161
-
167
241
135
4
65
32
-
13
478
88,006
(1,015)
72,961
(2)
2,522
129
5,774
21
(2)
4,381
(268)
1,343
7,680
2,293
217(2)
265
12,997
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €111 million regarding units classified as “held for sale”.
Results for 2020(1) (2) (3)
Millions of euro
Italy
Iberia
Latin America
Europe North America
Africa, Asia and
Oceania
Other,
eliminations and
adjustments
Total
Revenue and other
income from third
parties
Revenue and other
income from
transactions with other
segments
31,418
17,006
13,897
2,074
1,333
152
124
66,004
785
164
6
11
34
1
(1,001)
-
Total revenue
32,203
17,170
Total costs
24,205
13,480
13,903
9,713
2,085
1,576
Net results from
commodity contracts
Depreciation and
amortization
Impairment losses
Impairment gains
Operating profit
Capital expenditure
(174)
85
(40)
-
1,835
1,640
1,209
(10)
4,790
2,842
268
(160)
2,027
1,638
1,230
1,225
(3)
1,698
2,860
185
136
(126)
314
411
1,367
622
33
306
536
(3)
(61)
1,816
153
98
-
36
31
-
(12)
417
(877)
(692)
66,004
49,002
(3)
(99)
111
5,343
3
(1)
(301)
3,408
(303)
8,455
213
10,197
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(3) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
Notes to the consolidated financial statements
305
305
Financial position by business segment
At December 31, 2021
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-
user
Markets
Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
9,384
36,205
38,635
49
5,016
21,473
4,030
600
788
12
85,472
143
32,036
-
-
Total
85,472
32,036
216
1
4,814
4,319
Millions of euro
Property, plant and
equipment
Intangible assets
Non-current and
current contract
assets
Trade receivables
Other
Trade payables
Non-current and
current contract
liabilities
Sundry provisions
Other
1
525
-
77
2,601
826
6,731
2,614
6,533
3,812
547
383
-
608
43
651
435
1,614
22,543
14,203
(6,451)
16,092
(6,107)
8,096
Operating assets
18,734(1)
44,649(2)
69,978
14,424 2,395(3)
2,478
2,204
154,862
(12,515) 142,347
5,730
3,701
4,390
7,129
726
982
169
22,827
(5,843)
16,984
102
216
7,316
62
13
13
-
7,722
(75)
7,647
4,586
4,125
936
1,901
3,810
8,104
466
4,575
58
148
671
1,070
2,736
620
2,582
3,371
11,147
22,505
64,201
(89)
11,058
(6,245)
16,260
(12,252)
51,949
587
370
4
882
635
Operating liabilities
14,543
6,754(4)
23,620
12,232
945(5)
(1) Of which €2 million regarding units classified as “held for sale”.
(2) Of which €999 million regarding units classified as “held for sale”.
(3) Of which €136 million regarding units classified as “held for sale”.
(4) Of which €28 million regarding units classified as “held for sale”.
(5) Of which €57 million regarding units classified as “held for sale”.
At December 31, 2020(1)
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-
user
Markets
Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
Total
79,499
31,505
Millions of euro
Property, plant and
equipment
Intangible assets(1)
184
4,883
21,490
3,775
10,747
30,655
36,718
154
516
676
699
383
9
79,498
114
31,505
1
-
Non-current and
current contract
assets
Trade receivables
Other
4
1
340
-
42
14
-
401
79
480
2,670
1,433
2,053
1,095
6,493
4,034
2,674
756
358
297
755
769
368
16,731
(4,679)
12,052
1,327
8,351
(2,139)
6,212
Operating assets(1)
15,038(2)
38,687(3)
67,715
8,719 1,889(4)
2,620
1,818
136,486
(6,738)
129,748
Trade payables
2,816
2,751
5,405
4,678
426
868
99
17,043
(4,160)
12,883
Non-current and
current contract
liabilities
Sundry provisions
Other
Operating liabilities
147
152
7,172
42
5
8
-
7,526
(60)
7,466
3,528
1,133
7,624
947
1,434
3,794
400
7,856
2,245
46
179
603
587
9,905
(108)
9,797
1,101
2,607
16,555
(2,323)
14,232
5,284(5)
24,227
7,365
656
2,580
3,293
51,029
(6,651)
44,378
(1) The figures for 2020 have been adjusted to reflect a more accurate allocation.
(2) Of which €3 million regarding units classified as “held for sale”.
(3) Of which €855 million regarding units classified as “held for sale”.
(4) Of which €11 million regarding units classified as “held for sale”.
(5) Of which €35 million regarding units classified as “held for sale”.
306
306
Integrated Annual Report 2021
Financial position by geographical segment
At December 31, 2021
Millions of euro
Italy
Iberia
Latin
America
Europe
North
America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Total
Property, plant and
equipment
27,335
23,075
18,671
3,440
10,853
1,948
150
85,472
Intangible assets
2,313
16,071
11,414
Non-current and
current contract assets
Trade receivables
Other
94
7,372
4,555
5
3,886
2,474
Operating assets
41,669(1)
45,511
Trade payables
9,684
2,509
517
4,414
1,398
36,414
4,333
Non-current and
current contract
liabilities
Sundry provisions
Other
4,109
3,109
30
3,395
5,749
4,211
3,945
2,426
4,509
772
-
583
217
5,012
481
438
130
328
Operating liabilities
22,937(4)
13,774
11,298
1,377
557
18
215
259
11,902
1,208
-
120
1,482
2,810
179
13
51
140
2,331(2)
136
-
32
64
730
32,036
4
651
(429)
(947)
16,092
8,096
(492)(3)
142,347
(1,367)
16,984
(39)
7,647
744
183
11,058
16,260
232(5)
(479)(6)
51,949
(1) Of which €2 million regarding units classified as “held for sale”.
(2) Of which €999 million regarding units classified as “held for sale”.
(3) Of which €136 million regarding units classified as “held for sale”.
(4) Of which €6 million regarding units classified as “held for sale”.
(5) Of which €22 million regarding units classified as “held for sale”.
(6) Of which €57 million regarding units classified as “held for sale”.
At December 31, 2020
Millions of euro
Italy
Iberia
Latin
America
Europe
North
America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Total
Property, plant and
equipment
26,762
23,355
16,492
3,255
8,134
Intangible assets
2,047
15,919
11,612
Non-current and
current contract assets
Trade receivables
Other
105
5,948
2,624
10
2,166
1,804
297
3,686
1,368
787
1
436
178
Operating assets
37,486(1)
43,254
33,455(2)
4,657(3)
Trade payables
6,881
2,274
3,387
Non-current and
current contract
liabilities
Sundry provisions
Other
4,060
3,006
17
2,468
5,033
3,910
3,033
2,542
3,420
318
425
100
330
Operating liabilities
18,442
12,223
9,366
1,173(5)
483
16
181
253
9,067
1,076
-
128
1,289
2,493
1,345
169
2
48
55
1,619(4)
105
-
24
79
156
79,499
488
31,505
49
480
(413)
12,052
(70)
210
6,212
129,748
(1,158)
12,883
(42)
7,466
625
9,797
1,048
14,232
208(6)
473
44,378
(1) Of which €5 million regarding units classified as “held for sale”.
(2) Of which €2 million regarding units classified as “held for sale”.
(3) Of which €46 million regarding units classified as “held for sale”.
(4) Of which €816 million regarding units classified as “held for sale”.
(5) Of which €2 million regarding units classified as “held for sale”.
(6) Of which €33 million regarding units classified as “held for sale”.
Notes to the consolidated financial statements
307
307
The following table reconciles segment assets and liabilities 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
Other non-current financial 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, 2021
at Dec. 31, 2020
206,940
163,453
704
2,772
5,704
2,286
8,645
22,791
8,858
11,034
1,694
105
861
1,236
5,159
1,539
5,113
3,471
5,906
8,578
1,294
548
142,347
129,748
164,598
54,500
3,339
120
13,306
4,031
625
24,607
9,259
712
1,274
876
51,949
121,096
49,519
3,606
-
6,345
3,168
622
3,531
7,797
471
886
773
44,378
308
308
Integrated Annual Report 2021
Information on the consolidated income statement
Revenue
10.a Revenue from sales and services – €84,104 million
Millions of euro
Sale of electricity
Transport of electricity
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(1)
Sale of environmental certificates
Sale of value-added services
Other sales and services
Total IFRS 15 revenue(1)
2021
2020
Change
46,963
34,745
12,218
35.2%
10,732
10,710
22
0.2%
800
833
4,823
599
1,791
787
1,268
107
1,093
855
932
(132)
-14.2%
1,395
2,718
611
602
759
819
35
862
764
(562)
-40.3%
2,105
(12)
1,189
77.4%
-2.0%
-
28
3.7%
449
54.8%
72
231
91
-
26.8%
11.9%
70,651
54,952
15,699
28.6%
Sale of commodities under contracts with physical settlement
24,314
7,513
16,801
Fair value gain/(loss) on commodity sales contracts with physical settlement
closed during the period(2)
(10,893)
1,156
(12,049)
-
-
Other revenue
Total revenue from sales and services(1) (2)
32
21
11
52.4%
84,104
63,642
20,462
32.2%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to the consolidated financial statements.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
For more details, please see note 7 to these consolidated financial statements.
Revenue from the “Sale of electricity” amounted to €46,963
million, an increase of €12,218 million compared with the
previous year (+35.2%). The increase mainly reflects higher
sales volumes and prices, mainly in Italy (€7,367 million), Brazil
(€2,037 million) and Spain (€2,058 million), where the rise was
also due to the recognition of an indemnity paid to Endesa
(€186 million) in relation to the CO2 emission rights assigned
free of charge under the “Plan Nacional de Asignación de
Derechos de Emisión” (PNA).
“Transfers from institutional market operators” decreased by
€562 million compared with the previous year, mainly due to
a decline in compensation for extra-peninsular generation in
Spain following an increase in prices.
Revenue from the “Sale of gas“ in 2021 amounted to €4,823
million (€2,718 million in 2020), an increase of €2,105 million
compared with the previous year. The increase is mainly at-
tributable to an increase in quantities sold in Spain.
Revenue from the “Sale of fuel” increased by €1,189 million,
especially by Enel Global Trading due to the rise in gas prices.
The increase in the “Sale of commodities under contracts
with physical settlement” (€16,801 million) mainly regards gas
sales. This positive effect was partially offset by the deterio-
ration in performance of the measurement of contracts set-
tled in 2021 (-€12,049 million), mainly involving gas contracts.
The following table shows the net fair value gain or loss on
contracts for the sale or purchase of commodities with
physical settlement measured at fair value through profit or
loss within the scope of IFRS 9.
Notes to the consolidated financial statements
309
309
Millions of euro
Fair value gain/(loss) on contracts for energy commodities with physical settlement
(within the scope of IFRS 9) closed in the period
2021
2020
Change
Sales contracts
Sale of electricity
Fair value gain/(loss) on closed contracts
Total electricity
Sale of gas
Fair value gain/(loss) on closed contracts
Total gas
Sale of environmental certificates
Fair value gain/(loss) on closed contracts
Total environmental certificates
Total revenue
Purchase contracts
Purchase of electricity
Fair value gain/(loss) on closed contracts
Total electricity
Purchase of gas
Fair value gain/(loss) on closed contracts
Total gas
Purchase of environmental certificates
Fair value gain/(loss) on closed contracts
Total environmental certificates
Total costs
4,368
(1,705)
2,663
19,576
(9,335)
10,241
370
147
517
2,478
1,890
76.3%
353
(2,058)
-
2,831
(168)
-5.9%
4,723
14,853
791
(10,126)
-
-
5,514
4,727
85.7%
312
12
324
58
135
193
18.6%
-
59.6%
54.8%
13,421
8,669
4,752
3,677
(1,220)
2,457
19,951
(8,057)
11,894
810
145
955
2,828
849
30.0%
(47)
(1,173)
-
2,781
4,661
684
5,345
92
139
231
(324)
-11.7%
15,290
(8,741)
6,549
718
6
724
-
-
-
-
4.3%
-
15,306
8,357
6,949
83.2%
Net revenue/(costs) on contracts for energy commodities with physical settlement
(within the scope of IFRS 9) closed in the period
(1,885)
312
(2,197)
Unrealized fair value gain/(loss) on outstanding contracts for energy commodities
with physical settlement (IFRS 9)
Sales contracts
Electricity
Gas
Environmental certificates
Total
Purchase contracts
Electricity
Gas
Environmental certificates
Total
Net unrealized fair value gain/(loss) on outstanding contracts for energy commodities
with physical settlement (IFRS 9)
(1,606)
(16,285)
(495)
(18,386)
(2,169)
(13,801)
(508)
(197)
(668)
(67)
(1,409)
(15,617)
(428)
(932)
(17,454)
(108)
(2,061)
(869)
(12,932)
(68)
(440)
(16,478)
(1,045)
(15,433)
(1,908)
113
(2,021)
TOTAL REVENUE/(COSTS) ON CONTRACTS WITH PHYSICAL SETTLEMENT (WITHIN
THE SCOPE OF IFRS 9)
(3,793)
425
(4,218)
-
-
-
-
-
-
-
-
-
-
-
310
310
Integrated Annual Report 2021
Revenue from contracts with customers (IFRS 15) breaks
down into “point in time” and “over time” revenue as indi-
cated in the following tables.
Millions of euro
2021
Italy
Iberia
Latin America
Europe
North America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Total
Over
time
Point
in time
Over
time
Point
in time
Over
time
Point
in time
Over
time
Point
in time
Over
time
Point in
time
Over
time
Point in
time
Over
time
Point in
time
Over
time
Point in
time
Total IFRS 15 revenue 29,187
1,178 19,707
402 16,525
245 1,598
654
805
17
194
26
-
113 68,016 2,635
2020
Italy
Iberia
Latin America
Europe
North America
Africa, Asia
and Oceania
Other,
eliminations and
adjustments
Total
Over
time
Point
in time
Over
time
Point
in time
Over
time(1)
Point
in time
Over
time
Point
in time
Over
time
Point in
time
Over
time
Point in
time
Over
time
Point in
time
Over
time
Point in
time
Total IFRS 15 revenue 21,107
441 16,355
460 13,520
200 1,418
580
586
51
67
79
16
72 53,069 1,883
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to the consolidated financial statements.
Notes to the consolidated financial statements
311
311
With regard to the release to profit or loss by time class
of “performance obligations”, please see note 27 “Current/
Non-current contract assets/(liabilities)”.
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(2)
Brazil(3)
Chile
Peru
Colombia
Argentina
Panama
Costa Rica
Guatemala
Other
Africa
Asia
Oceania
Total
2021
33,304
18,896
970
2,918
1,085
245
195
1,534
121
-
522
435
12
552
96
3,736
1,160
601
33
202
9,381
3,151
1,111
2,188
887
150
14
67
114
371
53
2020 (1)
24,904
16,169
503
99
1,860
66
2
1,322
110
9
18
33
165
533
2,743
399
73
502
25
152
6,753
2,811
1,118
2,022
816
136
22
44
84
129
20
84,104
63,642
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
For more details, please see note 7 to these consolidated financial statements.
(2) The figures for 2020 have been reallocated more accurately among Mexico, Costa Rica and Guatemala.
(3) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to the consolidated financial statements.
312
312
Integrated Annual Report 2021
Performance obligations
The following table provides information about the Group’s
performance obligations arising from contracts with cus-
tomers with reference to the main revenue streams only,
with a summary of the specific judgments made and the
related revenue recognition policies.
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”.
Nature and timing of satisfaction of performance obligation
Accounting policies
Type of product/
service
Sale/transport of
electricity/gas to
end users
Network
connection
services
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.
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).
Construction
contracts
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.
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.
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.
Notes to the consolidated financial statements
313
313
10.b Other income – €3,902 million
Millions of euro
Grants related to income
Grants for environmental certificates
Grants related to assets (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
2021
2020
Change
33
291
26
305
1,781
66
48
1,352
3,902
12
342
24
371
15
58
40
1,500
2,362
21
(51)
2
(66)
1,766
8
8
(148)
1,540
-
-14.9%
8.3%
-17.8%
-
13.8%
20.0%
-9.9%
65.2%
“Sundry reimbursements” amounted to €305 million, a
decrease of €66 million compared with the previous year,
with most of the reduction coming in Italy due to a de-
crease in penalties and reimbursements for damages re-
corded at e-distribuzione and Enel Energia.
Gains on the disposal of entities amounted to €1,781 mil-
lion in 2021, an increase of €1,766 million, mainly reflecting
the recognition in 2021 of the capital gain on the sale of
Enel SpA’s interest in Open Fiber (€1,763 million).
“Other income” decreased by €148 million, mainly due to
the decline registered by e-distribuzione in other income
from the electricity business (€288 million), primarily re-
flecting the reimbursement of system charges and grid
fees.
This negative effect was partially offset by the increase
registered at Enel Green Power North America in income
from tax partnerships (€44 million) and an increase in in-
come from the eco-bonus subsidy relating to energy and
seismic upgrading posted by Enel X Italia (€84 million).
The following tables show a breakdown of total revenue by
business segment based on the approach used by man-
agement to monitor the Group’s performance during the
two years being compared.
Millions of euro
2021
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-
user
Markets
Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
Total
Total IFRS 15 revenue
17,213
8,843
20,078 38,238
1,394
1,972
138
87,876
(17,225)
70,651
Sale of commodities
under contracts with
physical settlement
Fair value gain/(loss)
on commodity sales
contracts with physical
settlement closed
during the period
26,691
(10,895)
Other revenue
5
-
-
6
-
-
15
14
1
-
-
-
3
-
-
-
26,705
(2,391)
24,314
-
(10,894)
1
(10,893)
14
17
60
(28)
32
Total revenue from
sales and services
Other income
TOTAL REVENUE
33,014
8,849
20,093 38,253
1,397
1,986
155
103,747
(19,643)
84,104
141
33,155
677
9,526
563
455
144
11
1,779
3,770
132
3,902
20,656 38,708
1,541
1,997
1,934
107,517
(19,511)
88,006
314
314
Integrated Annual Report 2021
Millions of euro
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
2020
End-
user
Markets Enel X Services
Holding
and
other
Total
reporting
segment
Eliminations
and
adjustments
Total
Total IFRS 15 revenue(1)
9,812
7,143
18,462
29,143 1,022
1,835
136
67,553
(12,601) 54,952
Sale of commodities
under contracts with
physical settlement
Fair value gain/(loss)
on commodity sales
contracts with physical
settlement closed during
the period(2)
Other revenue
Total revenue from sales
and services
10,192
1,164
6
-
-
7
-
-
6
15
(7)
-
-
-
4
-
-
6
-
-
3
10,207
(2,694)
7,513
1,157
(1)
1,156
32
(11)
21
21,174
7,150
18,468
29,151 1,026
1,841
139
78,949
(15,307) 63,642
Other income
TOTAL REVENUE(1) (2)
562
21,736
542
7,692
961
357
95
29
15
2,561
(199)
2,362
19,429 29,508 1,121
1,870
154
81,510
(15,506) 66,004
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
(2) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
Costs
11.a Electricity, gas and fuel – €49,093 million
Millions of euro
Electricity
Gas
Fair value gain/(loss) on contracts for purchase of electricity and gas with
physical settlement closed during the period(1)
Nuclear fuel
Other fuels
Total (1)
2021
29,579
27,046
(9,277)
107
1,638
49,093
2020
16,158
7,952
637
117
1,162
26,026
Change
13,421
19,094
(9,914)
(10)
476
23,067
83.1%
-
-
-8.5%
41.0%
88.6%
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
Costs for the purchase of “Electricity” mainly increased
due to a rise in volumes purchased in an environment of in-
creasing average prices compared with the previous year,
mainly attributable to Italy (€8,098 million), Spain (€2,564
million) and Latin America (€2,428 million).
The increase in costs for the purchase of “Gas” reflects the
increase in quantities handled, mainly due to a rise in gen-
eration, as well as the increase in the cost of purchasing
gas from third parties.
The fair value loss on closed contracts with physical settle-
ment changed from a fair value gain in the previous year,
with a difference of €9,914 million, of which €8,741 million
attributable to gas and €1,173 million to electricity.
The increase in “Other fuels” is mainly attributable to the
increase in the volume of generation and the rise in com-
modity prices.
Notes to the consolidated financial statements
315
315
11.b Services and other materials – €19,609 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 with
physical settlement closed during the period(1)
Other materials
Total(1)
2021
9,023
1,410
180
127
967
126
4,246
1,279
145
2020
9,619
1,127
172
116
823
396
3,648
673
139
2,106
19,609
1,653
18,366
Change
(596)
283
8
11
144
(270)
598
606
6
453
1,243
-6.2%
25.1%
4.7%
9.5%
17.5%
-68.2%
16.4%
90.0%
4.3%
27.4%
6.8%
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
Costs for services and other materials amounted to
€19,609 million in 2021, an increase of €1,243 million com-
pared with 2020. This change essentially reflected:
• a decline in costs for wheeling, mainly in Spain, attribut-
able to a decline in the average price applied;
• future costs connected with the conversion of plants
in Italy for the purposes of the energy transition. More
specifically, these costs regard provisions associated
with the acceleration of the energy-transition process,
which affected almost all of Enel Produzione’s plants
with the NextGen project (€426 million). In application
of the Group strategy to accelerate the elimination of
the use of fossil fuels from the generation process and
increasing our green capacity, we have committed our-
selves to launching a radical process to decommission
and secure Italian generation facilities that use tradi-
tional energy sources that are no longer in line with Eu-
ropean standards, with a view to converting them into
renewable energy facilities or installing storage systems
11.c Personnel expenses – €5,281 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
316
316
Integrated Annual Report 2021
and other circular economy initiatives;
• an increase in costs for systems assistance, computer
maintenance and IT development, mainly in Italy;
• a decline in costs for leases and rentals, mainly reflect-
ing the closure of a dispute in Spain, which permitted
the reversal of provisions previously recognized in the
amount of about €300 million;
• an increase in costs for the purchase of environmen-
tal certificates, attributable to a significant increase in
the prices of CO2, the increase in production at thermal
generation plants and an expansion of trading in emis-
sion allowances;
• an increase of €598 million in “Other services”, essen-
tially reflecting the increase in costs for services con-
nected with the electricity and gas business (€154 mil-
lion), those related to the value-added services busi-
ness (€150 million) and expenses for professional and
technical services (€147 million).
2021
3,238
853
104
85
10
806
185
2020
3,133
824
103
(485)
152
882
184
5,281
4,793
Change
105
29
1
570
(142)
(76)
1
488
3.4%
3.5%
1.0%
-
-93.4%
-8.6%
0.5%
10.2%
Personnel expenses amounted to €5,281 million in 2021,
an increase of €488 million.
The Group’s workforce decreased by 438 employees,
mainly reflecting the negative balance between new hires
and terminations (-461 employees) due to early-retirement
incentive policies and changes in the consolidation scope
(+23 employees), essentially attributable to:
• the sale of Enel Green Power Bulgaria;
• the acquisition of CityPoste Payment SpA in Italy.
The increase in “Wages and salaries” substantially reflects
the cost incurred as a result of new hiring at companies in
Italy, the United States and Argentina.
The €570 million increase in “Post-employment and oth-
er long-term benefits” is mainly attributable to the 2020
modification in Spain of the electricity discount benefit for
employees following the renewal of the 5th Endesa Collec-
tive Bargaining Agreement, which led to the release of the
associated provision in the amount of €515 million.
Expenses for early retirement incentives in 2021 amounted
to €816 million, down €218 million, with the change largely
accounted for by Spain (€732 million) due to the effect of
the accrual in 2020 to the provision for the Plan de Salida
prompted by elimination of the extinguishment option of
the individual agreement concerning the suspension of
employment relationships for certain individual contracts
as a result of the signing of the new collective bargaining
agreement mentioned earlier, only partly offset by an in-
crease in costs for early retirement incentives in Italy (€480
million) associated with corporate restructuring programs.
The table below shows the average number of employees
by category, along with a comparison with the previous
year, and the headcount as of December 31, 2021.
No.
Senior managers
Middle managers
Office staff
Blue collar
Total
Average(1)
Headcount(1)
2021
1,386
11,797
35,449
17,344
65,976
2020
1,397
11,258
36,027
18,396
67,078
at Dec. 31, 2021
1,377
12,242
35,556
17,104
66,279
(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel’s percentage share of the total.
11.d Net impairment losses/(reversals) on trade receivables and other receivables –
€1,196 million
Millions of euro
Impairment losses on trade receivables
Impairment losses on other receivables
Total impairment losses on trade receivables and other receivables
Impairment gains on trade receivables
Impairment gains on other receivables
Total impairment gains on trade receivables and other receivables
NET IMPAIRMENT LOSSES/(REVERSALS) ON TRADE RECEIVABLES AND
OTHER RECEIVABLES
2021
1,361
94
1,455
(258)
(1)
(259)
1,196
2020
1,505
46
1,551
(194)
(72)
(266)
1,285
Change
(144)
48
(96)
(64)
71
7
-9.6%
-
-6.2%
-33.0%
98.6%
2.6%
(89)
-6.9%
The item, equal to €1,196 million, includes impairment
losses and gains on trade receivables and other receiva-
bles. The net impairment losses on trade receivables de-
creased by a total of €208 million, essentially reflecting the
effect of the recognition in 2020 of greater impairment
losses on trade receivables in respect of traders.
Notes to the consolidated financial statements
317
317
11.e Depreciation, amortization and other impairment losses – €8,691 million
Millions of euro
Property, plant and equipment
Investment property
Intangible assets
Other impairment losses
Other reversals of impairment losses
Total
2021
4,414
3
1,357
2,926
(9)
8,691
2020
4,118
2
1,223
1,857
(37)
7,163
Change
296
1
134
1,069
28
1,528
7.2%
50.0%
11.0%
57.6%
75.7%
21.3%
The increase in “Depreciation, amortization and other im-
pairment losses” in 2021 essentially reflected:
• an increase in depreciation and amortization in Italy
(€102 million) due to an acceleration of the depreciation
rates for first-generation electronic meters (1G) in order
to reflect the planned installation schedule for 2G me-
ters provided for in the Open Meter plan;
• an increase in depreciation and amortization in Spain
for new plants entering service (€72 million);
• impairment losses recognized in 2021 on certain plants
or CGUs in Italy (€989 million), Spain (€1,488 million),
Mexico (€155 million), Chile (€32 million) and Australia
(€30 million);
• the impairment loss recognized on Group's headquar-
ters building in Rome (€45 million);
• the impairment losses recognized in Costa Rica (€126
million) on the hydroelectric plant operated under a
concession arrangement by PH Chucas.
These effects were partially offset by:
• the effect of the impairment losses recognized in 2020
on the Bocamina II plant in Chile (€737 million);
• the effect of the impairment losses recognized in 2020
on the Mexico, Argentina and Australia CGUs in the total
amount of €750 million.
11.f Other operating costs – €2,095 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
2021
2020
Change
41
239
64
75
1,132
544
2,095
90
277
61
65
1,130
579
2,202
(49)
(38)
3
10
2
(35)
(107)
-54.4%
-13.7%
4.9%
15.4%
0.2%
-6.0%
-4.9%
Other operating costs decreased by €107 million com-
pared with the previous year, mainly due to a reduction in
environmental compliance charges and association dues
in Italy.
11.g Capitalized costs – €(3,117) million
Millions of euro
Personnel
Materials
Other
Total
2021
(1,022)
(1,120)
(975)
(3,117)
2020
(836)
(846)
(703)
(2,385)
Change
(186)
(274)
(272)
(732)
-22.2%
-32.4%
-38.7%
-30.7%
Capitalized costs increased by €732 million, mainly due to
greater investment in distribution plants in Latin America
and distribution grids associated with the development
of the Grid Blue Sky project and to the installation of sec-
ond-generation meters in Italy in 2021.
318
318
Integrated Annual Report 2021
12. Net results from commodity contracts – €2,522 million
Millions of euro
Commodity derivatives
- income from settled derivatives
- expense from settled derivatives
Net income/(expense) from settled commodity derivatives
- income from outstanding derivatives
- expense from outstanding derivatives
Net income from outstanding commodity derivatives
Outstanding contracts for energy commodities with physical settlement
- results from outstanding contracts to sell energy commodities with
physical settlement(1)
- results from outstanding contracts to purchase energy commodities with
physical settlement(1)
Net results from outstanding contracts for energy commodities with
physical settlement(1)
NET RESULTS FROM COMMODITY CONTRACTS(1)
2021
2020
Change
11,456
9,331
2,125
4,572
2,267
2,305
4,346
4,912
(566)
634
280
354
7,110
4,419
2,691
3,938
1,987
1,951
(18,386)
(932)
(17,454)
16,478
1,045
15,433
(1,908)
2,522
113
(99)
(2,021)
2,621
-
90.0%
-
-
-
-
-
-
-
-
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
Net results from commodity came to €2,522 million in 2021
(net expense of €99 million in 2020), and breaks down as
follows:
• net income from commodity derivatives totaling €4,430
million (net expense of €212 million in 2020), including
derivatives designated as cash flow hedges and de-
rivatives measured at fair value through profit or loss.
More specifically, net income from derivatives settled in
the period amounted to €2,125 million (net expense of
€566 million in 2020) and the net fair gain on outstand-
ing derivatives came to €2,305 million (net fair value
gain of €354 million in 2020);
• net fair value loss on energy commodity contracts with
physical settlement still outstanding at the reporting
date amounting to €1,908 million (net fair value gain of
€113 million in 2020).
For more information on derivatives, please see note 49
“Derivatives and hedge accounting”.
13. Net financial income/(expense) from derivatives – €1,461 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
2021
2020
Change
2,097
621
2,718
(599)
(658)
(1,257)
1,461
639
676
1,315
(1,945)
(311)
(2,256)
(941)
1,458
(55)
1,403
1,346
(347)
999
2,402
-
-8.1%
-
69.2%
-
44.3%
-
In 2021, net income from derivatives on interest and ex-
change rates amounted to €1,461 million (net expense of
€941 million in 2020) and breaks down as follows:
• net income from derivatives designated as hedging de-
rivatives in the amount of €1,498 million (net expense
of €1,306 million in 2020), mainly in regard of cash flow
hedges;
• net expense from derivatives at fair value through profit
or loss in the amount of €37 million (net income of €365
million in 2020).
The net balances recognized in 2021 and 2020 on both
hedging derivatives and those at fair value through profit
or loss mainly referred to the hedging of currency risk. For
more information on derivatives, see note 49 “Derivatives
and hedge accounting”.
Notes to the consolidated financial statements
319
319
14. Net other financial income/(expense) – €(4,212) million
Other financial income
Millions of euro
Interest income from financial assets
(current and non-current):
2021
2020
Change
- 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
Exchange gains
Income on equity investments
Income from hyperinflation
Other income(1)
116
89
205
110
69
179
1,219
2,182
6
824
452
23
529
292
TOTAL OTHER FINANCIAL INCOME
2,706
3,205
6
20
26
(963)
(17)
295
160
(499)
5.5%
29.0%
14.5%
-44.1%
-73.9%
55.8%
54.8%
-15.6%
(1) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
Other financial income amounted to €2,706 million, a de-
crease of €499 million compared with the previous year.
The decline mainly reflects a decrease in income from ex-
change gains of €963 million, essentially attributable to
the impact of exchange rate developments on net finan-
cial debt denominated in currencies other than the euro.
This effect was partially offset by the following factors:
• an increase in income from hyperinflation (€295 mil-
lion), recognized by the Argentine companies as a re-
sult of the application of IAS 29 on financial reporting
in hyperinflationary economies; for more information,
see note 4 of these consolidated financial statements;
• the recognition of financial income of €73 million in
Spain, largely connected with interest on arrears ac-
crued in respect of Endesa’s right to be compensated
for the reduction in remuneration received in the past
with regard to the assignment of CO2 emission rights
under the “Plan Nacional de Asignación de Derechos
de Emisión” (PNA);
• an increase in income deriving from the impairment
loss on hedged liabilities in fair value hedge relation-
ships (€57 million);
• an increase in interest income at the effective rate
(€26 million), mainly relating to short-term financial in-
vestments.
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
Financial expense on debt management transactions
Exchange losses
Adjustment to post-employment and other employee benefits
Adjustment to other provisions
Expense from equity investments
Expense from hyperinflation
Other expenses
TOTAL OTHER FINANCIAL EXPENSE
320
320
Integrated Annual Report 2021
2021
2020
Change
346
1,881
137
2,364
702
2,559
107
129
-
804
253
291
1,887
149
2,327
-
1,245
109
150
1
472
653
6,918
4,957
55
(6)
(12)
37
702
1,314
(2)
(21)
(1)
332
(400)
1,961
18.9%
-0.3%
-8.1%
1.6%
-
-
-1.8%
-14.0%
-
70.3%
-61.3%
39.6%
“Other financial expense” amounted to €6,918 million, an
overall increase of €1,961 million compared with 2020, es-
sentially reflecting the following factors:
• the recognition of expense on debt management trans-
actions, regarding:
– Enel Finance International in the amount of €634
million for the recognition of financial expense on the
cash consideration paid in connection with voluntary
non-binding tender offer (“tender offer”) for the re-
purchase, and subsequent cancellation, of a number
of series of outstanding conventional bonds;
– Enel SpA in the amount of €68 million for the recog-
nition of financial expense connected with the con-
sent solicitation for non-convertible subordinated
hybrid bonds converted into perpetual hybrid bonds.
This expense represents the difference between the
fair value of the hybrid instrument and the carrying
amount of the bond.
With regard to the tender offer and consent solicita-
tion, the amount of the amortized cost adjustment for
the bonds involved in these transactions was released
to profit or loss, which produced an increase in interest
expense compared with 2020. However, the aforemen-
tioned debt management transactions, together with
the new sustainability-linked bond issues, have reduced
the Group’s borrowing costs, providing an important
tool for protection against potential rate increases;
• an increase in exchange losses in the amount of €1,314
million, primarily attributable to the impact of exchange
rate developments on net financial debt denominated
in currencies other than the euro;
• an increase in expense from hyperinflation of €332 mil-
lion, recognized by the Argentine companies as a re-
sult of the application of IAS 29 on financial reporting in
hyperinflationary economies; for more information, see
note 4 of these consolidated financial statements.
These effects were substantially offset by the reduction in
financial expense associated with the impairment loss on
the financial asset connected with the sale of Slovak Power
Holding (€472 million).
15. Share of profit/(loss) of equity-accounted investments – €571 million
Millions of euro
Share of profit of associates
Share of loss of associates
Total
2021
624
(53)
571
2020
131
(430)
(299)
Change
493
377
870
-
87.7%
-
The share of profit/(loss) of equity-accounted investments
improved by €870 million compared with the previous year.
The change was essentially due to the impairment loss
on the investment in Slovak Power Holding (€908 million),
partly offset by the change in the share of profit/(loss) at-
tributable to owners of the Parent of, mainly, the Portu-
guese company Tejo Energia Produção e Distribuição de
Energia Eléctrica (€14 million).
16. Income taxes – €1,643 million
Millions of euro
Current taxes
Adjustments for income taxes relating to prior years
Total current taxes
Deferred tax expense
Deferred tax income
TOTAL
2021
2,023
145
2,168
313
(838)
1,643
2020
1,898
(168)
1,730
180
(69)
1,841
Change
125
313
438
133
(769)
(198)
6.6%
-
25.3%
73.9%
-
-10.8%
Notes to the consolidated financial statements
321
321
The tax rate for 2021 came to 30%, compared with 34% in
2020. The reduction essentially reflects the combined effect
of the following permanent differences:
• a decrease in the tax impact of extraordinary items com-
pared with the previous year (€431 million), taking account
of the taxation associated with the revaluation of the as-
sets of Slovenské elektrárne;
• the application of the preferential “participation exemp-
tion” mechanism to the capital gain realized on the sale of
the investment in Open Fiber (€401 million);
• the adjustments of deferred and current taxation following
the tax reforms approved by the Argentine and Colombian
governments, which increased the tax rate from 25% to
35% in Argentina and from 30% to 35% in Colombia;
• the adjustment of the tax credit held by Enel Iberia (€211
• the tax effect of the application of hyperinflation account-
ing in Argentina (€49 million);
• the non-recognition of part of the deferred tax assets as-
sociated with the impairment loss recognized on PH Chu-
cas due to the uncertainty about their future recoverability
(€27 million);
• the reversal of the tax credit of Enel Green Power SpA (€25
million) following the reorganization of the Enel Green
Power Business Line in Latin America, which was complet-
ed in April 2021.
For more information on changes in deferred tax assets and
liabilities, see note 24.
The following table provides a reconciliation of the theoretical
tax rate and the effective tax rate.
million);
Millions of euro
Pre-tax profit/(loss)
Theoretical taxes
2021
5,500
1,320
24%
Change in tax effect on impairment losses, capital gains and negative
goodwill
Net effect on deferred taxation recognized with timing mismatch
Tax reforms in Argentina and Colombia
Adjustment of tax credit of Enel Iberia
Preferential tax treatment of Open Fiber capital gain
Deferred tax assets not recognized on tax losses
Sundry tax effects of hyperinflation accounting in Argentina
Reversal of tax credit for Astrid operation
IRAP
Other differences, effect of different tax rates abroad compared with the
theoretical rate in Italy, and other minor items
Total
(229)
70
166
211
(401)
75
49
25
276
81
1,643
24%
2020
5,463
1,311
202
16
-
-
-
-
-
-
249
63
1,841
322
322
Integrated Annual Report 2021
17. Basic and diluted earnings/(loss) per share
Both of these indicators are calculated on the basis of the
average number of ordinary shares for the year, equal to
10,166,679,946, adjusted by the average number of treas-
ury shares held.
The number of treasury shares, with a par value of €1
each, held at December 31, 2021 was equal to 4,889,152
(3,269,152 at December 31, 2020).
Millions of euro
Profit for the year attributable to owners of the Parent (basic)
of which from:
- continuing operations
- discontinued operations
Effect of preference rights on dividends (e.g. preference shares)
Dividends on equity instruments (e.g., hybrid bonds)
Other
Profit for the year attributable to ordinary owners of the Parent (basic)
of which from:
- continuing operations
- discontinued operations
Number of shares (units)
Number of ordinary shares issued at 1 January
Effect of treasury shares held
Effect of share options exercised
Other
Weighted average number of ordinary shares outstanding (total) for basic
earnings per share
Profit for the year attributable to ordinary owners of the Parent (basic)
Effect of dilution:
- interest on convertible bonds
- other
Profit for the year attributable to ordinary owners of the Parent (diluted)
of which:
- continuing operations
- discontinued operations
Number of shares (units)
2021
3,189
3,189
-
-
(71)
-
3,118
3,118
-
2020
2,610
2,610
-
-
-
-
2,610
2,610
-
10,166,679,946
(4,111,452)
-
-
10,166,679,946
(2,067,594)
-
-
10,162,568,494
10,164,612,352
3,118
-
-
3,118
3,118
-
2,610
-
-
2,610
2,610
-
Weighted average number of ordinary shares outstanding (total) for basic
earnings per share
10,162,568,494
10,164,612,352
Effect of conversion of convertible notes
Other
-
-
-
-
Weighted average number of ordinary shares outstanding (total) for diluted
earnings per share
10,162,568,494
10,164,612,352
Basic earnings per share
Basic earnings per share
Basic earnings per share from continuing operations
Basic earnings/(loss) per share from discontinued operations
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share from continuing operations
Diluted earnings/(loss) per share from discontinued operations
0.31
0.31
-
0.31
0.31
-
0.26
0.26
-
0.26
0.26
-
Notes to the consolidated financial statements
323
323
Information on the statement
of consolidated financial position
18. Property, plant and equipment – €84,572 million
The breakdown of and changes in property, plant and
equipment for 2021 is given below.
Millions of euro
Land
Buildings
Industrial
and
commercial
equipment
Plant and
machinery
Other
assets
Leased
assets
Leasehold
improvements
Assets
under
construction
and advances
Total
Cost net of accumulated
impairment losses
637
10,263
159,411
523
1,487
2,994
Accumulated depreciation
-
5,456
97,807
Balance at Dec. 31, 2020
637
4,807
61,604
Capital expenditure
Assets entering service
Exchange differences
Change in the
consolidation scope
Disposals
Depreciation
Impairment losses
Reversals of impairment
losses
Other changes
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment losses
3
28
(16)
-
(1)
-
(8)
-
-
-
6
39
884
113
-
(3)
(190)
(191)
-
6
-
1,883
4,741
(2)
129
(110)
(3,766)
(2,425)
8
1,312
-
658
1,770
380
143
22
8
1
-
(1)
(22)
(1)
-
1
-
8
1,155
819
332
2,175
73
55
(7)
(2)
(11)
(88)
-
-
12
(1)
31
1
8
35
8
(19)
(304)
(4)
-
731
(2)
454
643
11,115
163,443
547
1,551
3,722
Accumulated depreciation
-
5,650
100,069
Balance at Dec. 31, 2021
643
5,465
63,374
396
151
1,188
1,093
363
2,629
443
319
124
9
15
1
-
-
8,896
184,654
-
105,936
8,896
78,718
8,404
10,434
(5,739)
103
147
(15)
-
228
282
(160)
(30)
-
(4,400)
-
-
9
-
4
482
354
128
(155)
(2,784)
-
8
178
2,249
-
(3)
2,923
5,854
11,819
193,322
-
108,750
11,819
84,572
“Plant and machinery” included assets to be relinquished
free of charge with a carrying amount of €7,946 million at
December 31, 2021 (€8,083 million at December 31, 2020),
largely regarding power plants in Iberia and Latin America
amounting to €3,672 million at December 31, 2021 (€3,808
million at December 31, 2020), and the electricity distri-
bution grid in Latin America totaling €3,506 million at De-
cember 31, 2021 (€3,626 million at December 31, 2020).
For more information on “Leased assets”, please see note
20 below.
The types of capital expenditure made during 2021 are
summarized below by class of asset, comprising the var-
ious categories of property, plant and equipment and in-
tangible assets, including the portion classified as held for
sale. These expenditures, totaling €12,201 million at De-
cember 31, 2021, increased by €2,653 million on 2020, in-
creases that were particularly concentrated in solar power
plants.
324
324
Integrated Annual Report 2021
Millions of euro
Power plants:
- thermal
- hydroelectric
- geothermal
- nuclear
- alternative energy sources
Total power plants
Electricity distribution grids(1)
Enel X (e-Mobility, e-City, e-Industries, e-Home)
Retail customers
Other
TOTAL(2)
2021
2020
Change
550
402
120
157
4,947
6,176
4,389
367
643
626
452
332
145
137
4,007
5,073
3,288
303
460
424
98
70
(25)
20
940
1,103
1,101
64
183
202
12,201
9,548
2,653
21.7%
21.1%
-17.2%
14.6%
23.5%
21.7%
33.5%
21.1%
39.8%
47.6%
27.8%
(1) The figure for 2021 does not include €907 million in respect of infrastructure investments within the scope of IFRIC 12 (€649 million in 2020).
(2) The figure for 2021 includes €111 million regarding units classified as “held for sale”.
The Enel Group, in line with the Paris Agreement on CO2
emissions reductions and guided by energy efficiency
and energy-transition objectives, has invested above all in
generation plants that exploit alternative energy sources.
Capital expenditure on generation plants mainly regards
solar plants and wind farms in the United States, Colom-
bia, Iberia, Italy, India, Chile and Russia.
In order to respond to ever more variable climate devel-
opments and, therefore, enhance the resilience of grids,
the Group continued to invest in the Distribution Busi-
ness Line (€4,389 million). The €1,101 million increase is
mainly attributable to greater investments in Italy, Brazil
and Iberia for the Grid Blue Sky project (a new platform
operating model that envisages the redesign of systems,
processes and work organization to leverage assets more
effectively, including through the use of artificial intelli-
gence) and for quality and remote control activities.
In Italy, following the introduction of measures to revive
the economy and to encourage energy upgrading and
seismic resilience, Enel X has undertaken greater in-
vestments in the development of the e-Home business
associated with the Vivi Meglio initiative, while in Spain
e-Home posted an increase as a result of greater sales
volumes compared with 2020. In North America and Ko-
rea, its investments in storage increased.
Exchange gains amounted to €228 million.
The “Change in the consolidation scope” in 2021 mainly
refers to the consolidation of the Australian renewables
companies, which had previously been equity-account-
ed, following changes in governance arrangements with-
out the purchase of additional interests, as well as the
acquisition of 30 renewable energy companies by Enel
Green Power España.
“Impairment losses” amounted to €2,784 million and are
mainly attributable to the energy-transition process ini-
tiated by the Group, which in 2021 led to the recognition
of impairment losses on the Italian thermal generation
plants of Torrevaldaliga Nord, Fusina, La Spezia and Brin-
disi, the Spanish generation plants of Baleares, Canarias,
Ceuta and Melilla and the Bocamina II plant in Chile.
This item was also affected by the impairment loss on as-
sets in Australia and Mexico.
“Reclassifications from/to assets held for sale” refer
mainly to the property and other assets of the Italian
companies Enel X Paytipper SpA, Paytipper Network Srl
and CityPoste Payment SpA.
“Other changes” include the provision for plant retirement
and site restoration costs in the amount of €861 million,
mainly in Spain and Italy, new leases of €723 million, im-
pairment losses on the property, plant and equipment of
the Argentine companies operating in a hyperinflation-
ary economy in the amount of €576 million and the effect
of capitalizing interest on loans specifically dedicated to
capital expenditure on property, plant and equipment of
€182 million (€154 million in 2020). The following table re-
ports capitalized financial expense on property, plant and
equipment and intangible assets, including the portion
classified as held for sale, and that on other non-current
assets.
Notes to the consolidated financial statements
325
325
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)
Enel Russia Group
EGP India Group
EGP Australia Group
Enel Green Power Colombia
Enel Produzione
Nuove Energie
Enel Green Power Italia
Enel Green Power Chile
Enel Finance International
Total(2)
2021
Rate %
2020
Rate %
Change
-
-
17
10
61
23
80
4
18
8
1
-
2
1
5
-
12
242
0.2%
4.3%
6.3%
3.7%
7.0%
1.5%
8.5%
8.3%
0.2%
2.1%
0.5%
3.3%
1.8%
-
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%
-
(12)
7
(13)
14
16
59
1
8
7
-
(2)
(2)
-
4
(4)
(3)
80
-
-
70.0%
-56.5%
29.8%
-
-
33.3%
80.0%
-
-
-
-50.0%
-
-
-
-20.0%
49.4%
(1) The amount for the EGP Spain Group is included in that for the Endesa Group.
(2) The total for 2021 also includes -€5 million in capitalized financial expense in respect of intangible assets (€7 million in 2020), €4 million in other non-current
assets (€1 million in 2020) and €61 million pertaining to assets held for sale.
At December 31, 2021, contractual commitments to pur-
chase property, plant and equipment amounted to €1,437
million.
326
326
Integrated Annual Report 2021
19. Infrastructure within the scope of “IFRIC 12 - Service concession arrangements”
Service concession arrangements, which are recognized
in accordance with IFRIC 12, regard certain infrastructure
serving concessions for electricity distribution in Brazil,
Costa Rica and Colombia.
The following table summarizes the salient details of those
concessions.
Millions of euro
Grantor
Activity
Country
Concession
period
Concession
period
remaining
Renewal
option(1)
Amount
recognized
among
contract assets
at Dec. 31,
2021
Amount
recognized
among
financial assets
at Dec. 31,
2021
Amount
recognized
among
intangible
assets at Dec.
31, 2021
Enel Distribuição
Rio de Janeiro
Enel Distribuição
Ceará
Enel Green Power
Mourão
Enel Green Power
Paranapanema
Enel Distribuição
Goiás
Enel Green Power
Volta Grande
Enel Distribuição
São Paulo
PH Chucas
USME ZE SAS
Fontibon ZE SAS
Total
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Costa Rican
Electricity
Institute
Empresa de
Transporte del
Tercer Milenio
- Transmilenio
SA
Empresa de
Transporte del
Tercer Milenio
- Transmilenio
SA
Electricity
distribution
Electricity
distribution
Electricity
generation
Electricity
generation
Electricity
distribution
Electricity
generation
Electricity
distribution
Brazil
1997-2026
5 years
Brazil
1998-2028
7 years
Brazil
2016-2046
25 years
Brazil
2016-2046
25 years
Brazil
2015-2045
24 years
Brazil
2017-2047
26 years
Brazil
1998-2028
7 years
Hydroelectric
plant
Costa
Rica
2012-2031
10 years
No
No
No
No
No
No
No
No
e-Mobility Colombia
2021-2035
16 years
No
e-Mobility Colombia
2021-2035
16 years
No
112
63
-
-
252
-
91
-
-
-
838
620
5
23
69
243
1,001
101
6
47
404
395
-
-
643
-
609
47
-
-
518
2,953
2,098
(1) There is no automatic renewal option, but the Group concession holders can participate in the renewal procedures in accordance with the rules established
by the grantors.
The assets classified under financial assets are measured
at fair value at the end of the concessions. For more infor-
mation, see note 50 “Assets and liabilities measured at fair
value”.
20. Leases
The table below shows changes in right-of-use assets in
2021.
Millions of euro
Total at Dec. 31, 2020
Increases
Exchange differences
Depreciation
Other changes
Total at Dec. 31, 2021
Leased land
Leased
buildings
Leased plant
Other leased
assets
707
442
37
(38)
(1)
1,147
551
86
1
(114)
(7)
517
479
1
(2)
(34)
(3)
441
438
203
(1)
(118)
2
524
Total
2,175
732
35
(304)
(9)
2,629
Lease liabilities and changes during the year are shown in
the table below.
Notes to the consolidated financial statements
327
327
Millions of euro
Total at Dec. 31, 2020
Increases
Payments
Other changes
Total at Dec. 31, 2021
of which medium to long term
of which short term
Note that in 2021, 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 costs for services and other materials)
Expense relating to leases of low-value assets (included in costs for services and other materials)
Variable lease payments (included in costs for services and other materials)
Total
21. Investment property – €91 million
Millions of euro
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2020
Exchange differences
Depreciation
Impairment losses
Other changes
Total changes
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2021
2,068
526
(165)
118
2,547
2,288
259
2021
304
72
46
-
22
444
159
56
103
(1)
(3)
(4)
(4)
(12)
129
38
91
Investment property at December 31, 2021 amounted to
€91 million, a decrease of €12 million on the previous year.
erty or for repairs, maintenance or enhancements.
The change in 2021 was mainly due to impairment losses
recognized on a number of assets in Italy and Spain.
The Group’s investment property consists of properties in
Italy, Spain, Brazil and Chile, which are free of restrictions
on their sale or the remittance of income and proceeds of
disposal. In addition, the Group has no contractual obliga-
tions to purchase, construct or develop investment prop-
For more information on the valuation of investment prop-
erty, see notes 50 “Assets and liabilities measured at fair
value”, and 50.2 “Assets not measured at fair value in the
statement of financial position”.
328
328
Integrated Annual Report 2021
22. Intangible assets – €18,070 million
A breakdown of and changes in intangible assets for 2021
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
44
23
21
4
(1)
(1)
-
-
(2)
(1)
-
1
(1)
(1)
43
23
20
2,985
12,988
5,452
4,821
2,418
567
91
335
(9)
-
-
1,568
11,420
3,344 3,326
2,108 1,495
92
10
(238)
1
(4)
-
-
23
-
(8)
117
202
12
27
1
(289)
(162)
(305)
(369)
(1)
1
49
(3)
174
3,512
2,771
741
-
-
2
-
(299)
12,842
1,721
11,121
(126)
(10)
-
406
-
(7)
-
(84)
(10)
(111)
5,781
5,092
3,683
3,708
2,098 1,384
10
4
6
-
-
-
-
-
-
-
-
(6)
-
(6)
-
-
-
1,337
1,581
29,218
-
867
11,550
1,337
714 17,668
874
(547)
(6)
85
(1)
-
-
-
18
-
478
1,656
1
1
-
-
-
(218)
113
(12)
(248)
(1,375)
-
-
1
(138)
1
464
(1)
(89)
423
232
402
1,760
2,063 31,093
-
1,117
13,023
1,760
946 18,070
Millions of euro
Cost net of accumulated
impairment losses
Accumulated amortization
Balance at Dec. 31, 2020
Capital expenditure
Assets entering service
Exchange differences
Change in the
consolidation scope
Disposals
Amortization
Impairment losses
Reversals of impairment
losses
Other changes
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment losses
Accumulated amortization
Balance at Dec. 31, 2021
Enel’s intellectual property (IP) portfolio comprises a set of
critical information for sustainable growth. The Open In-
novability® ecosystem generates innovation through the
creation and sharing of internal and external solutions
that give life to ideas that require appropriate forms of le-
gal protection. Intellectual property plays a dual role: first,
it enables control over inventive solutions, technologies
and knowledge generated by both the Group and the in-
novation ecosystems of which Enel is a part with the in-
volvement of universities, research bodies, suppliers, pro-
grammers and consultants; second, intellectual property
rights enable the safe and sustainable propagation of the
technological solutions through which electrification, plat-
formization and stewardship programs are implemented.
At December 31, 2021, the Group had applied for 892
patents in 146 technological families. Of these, 749 have
been granted and 143 are pending. The portfolio ensures
protection in all the markets in which the Group is pres-
ent. Enel’s portfolio also includes 15 utility models and 170
design registrations. Together with patents, utility models
and designs, IP rights also include industrial secrets of both
a technical and commercial nature which are constantly
codified and maintained in line with the provisions of the
Trade Secrets Management procedure (see below). The
Group also owns 1,576 trademarks, of which 1,455 have
already been registered, with 121 applications pending.
The Enel Green Power and Thermal Generation Global
Business Line is involved in the development of innova-
tive technical solutions in solar generation that seek (i) to
increase the photovoltaic output of plants by increasing
charge transfer mechanisms at the micro and nanometric
level in correspondence with different layers both in single
and heterojunction cells and in tandem systems and (ii) to
create an innovative system for the rapid and automatable
installation of photovoltaic panels on prefabricated sup-
port structures, generating significant reductions in instal-
lation times while increasing in the precision and scalability
of installation and, therefore, the Group’s competitiveness
at the international level. These solutions cover a total of
11 patent families currently comprising 28 national and
international patent applications pending and 7 national
patents granted.
The patent assets of Global Infrastructure and Networks
contribute significantly to the strategy of creating plat-
Notes to the consolidated financial statements
329
329
forms and exploiting network externalities in the services
market, as well as to the automation of user management.
The Grid Blue Sky project, whose launch was announced
last year, is contributing to the creation of a new global op-
erating platform for the Group’s grids. In consideration of
the high intensity of IP generated, further analysis of the
project was conducted, which is discussed in more detail
later in this section.
In the Enel X Global Business Line, the development of
solutions with an impact on IP assets essentially regarded
applications in the telemedicine business and urban livea-
bility platforms. The Smart Axistance eWell app is an espe-
cially important example of the former, a health program
designed and managed by specialists from the Policlinico
Gemelli Foundation and delivered through a telemedicine
platform and an app, both created by Enel X and protected
by copyright. Urban liveability solutions include the 15 Min-
utes City Index, an urban planning indicator developed in
collaboration with the University of Florence, for which Enel
X is the holder of a trade secret and an Italian patent ap-
plication. Using open data, the 15 Minutes City Index evalu-
ates essential services (public transport, hospitals, schools,
etc.), identifying underserved areas for each municipality
and individual micro-district (with respect to population
density), thereby supporting urban planning. As regards
the electric mobility business, the IP portfolio comprises a
diversified range of forms of protection, including patents
for inventions, designs, trade secrets, utility models and
copyrights with a technological content. Notable exam-
ples of these include: (i) the patent family for bidirection-
al high-power charging infrastructures, with applications
Millions of euro
initially deposited in the United States and subsequently
initiated at the international level; (ii) the trade secrets con-
nected with strategic mobility platforms; (iii) the copyright
on the Juice Pass app; (iv) the community design to protect
the aesthetic form of Juice Media, an innovative product
that enables the simultaneous offer of electric charging
and multimedia advertising services in a single structure;
and (v) the Juice Pole Mini designs, which are protected in
Europe, India, Chile, Norway, the United States, Canada and
the United Kingdom.
The Group is also using copyright and trade-secret pro-
tections for the innovative IP-dense solutions it is develop-
ing concerning climate models and advanced quantitative
models for the analysis of energy systems in order to sup-
port decarbonization and electrification in the main geo-
graphical areas in which we operate, using an integrated
and future-oriented vision.
At an organizational and communication level, during
2021, Enel followed up on two lines of actions intended at
achieving strategic, responsible and sustainable manage-
ment of its intellectual property. On the one hand, a new
Intellectual Property Management procedure was adopted
at the Group level. On the other, in the wake of the survey
of the Group’s IP portfolio in 2020, an intellectual property
reporting project was continued, to be incorporated within
the broader scope of the Enel Group’s non-financial re-
porting.
The following table reports service concession arrange-
ments that do not fall within the scope of IFRIC 12 and had
a balance as at December 31, 2021.
Grantor
Activity
Country
Concession
period
Concession
period
remaining
Renewal
option
at Dec. 31,
2021
Initial fair
value
Endesa Distribución
Eléctrica
Codensa
-
Electricity
distribution
Republic of
Colombia
Electricity
distribution
Spain
Indefinite
Indefinite
Colombia
Indefinite
Indefinite
Enel Distribución Chile
(formerly Chilectra)
Republic of
Chile
Electricity
distribution
Chile
Indefinite
Indefinite
Republic of
Peru
Electricity
distribution
Peru
Indefinite
Indefinite
-
-
-
-
5,678
5,673
1,176
1,839
1,254
1,667
525
548
Romanian
Ministry for the
Economy
Electricity
distribution
Romania
2005-2054
33 years
Yes
119
191
Enel Distribución Perú
(formerly Empresa de
Distribución Eléctrica de
Lima Norte)
E-Distribuţie Muntenia
Assets with an indefinite useful life amounted to €8,633
million (€8,892 million at December 31, 2020), essentially
accounted for by concessions for distribution activities
in Spain (€5,678 million), Colombia (€1,176 million), Chile
(€1,254 million) and Peru (€525 million), for which there
was no statutory or currently predictable expiration date.
330
330
Integrated Annual Report 2021
On the basis of the forecasts developed, cash flows for
each CGU, with which the various concessions are asso-
ciated, were sufficient to recover the carrying amount.
The change during the year was essentially attributable to
changes in exchange rates. For more information on ser-
vice concession arrangements, see note 19.
The change in the consolidation scope for 2021 mainly
reflected the acquisition by Enel Green Power España of
100% of 30 renewables companies in Spain.
23. Goodwill – €13,821 million
Impairment losses amounted to €138 million in 2021 and
mainly regarded impairment losses recognized on the PH
Chucas hydro plant. For more information, see note 11.e.
“Other changes” reported the design costs connected with
the acquisition of a number of Brazilian vehicle companies.
Millions of euro
at Dec. 31, 2020
Change
in consol.
scope
Exchange
differences
Impairment
losses
Offsetting
cost with
accum.
impairment
losses
Other
changes
Cumulative
impairment
Cost
Net
carrying
amount
11,177
(2,392)
8,785
1,205
275
564
530
1,273
25
18
70
184
84
46
-
580
20
407
-
1,205
(253)
-
-
-
-
(18)
-
-
-
(3)
-
-
-
(13)
22
564
530
1,273
25
-
70
184
84
43
-
580
20
394
Iberian
Peninsula
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
Market Italy(2)
Enel Green
Power Italy
Romania
Total
16,458
(2,679)
13,779
(1)
(2)
Includes Tynemouth and Viva Labs.
Includes Enel Energia.
-
2
-
-
-
-
(1)
-
-
-
-
-
-
-
-
-
1
-
2
-
2
(3)
30
1
-
-
15
-
-
-
-
-
(7)
40
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
at Dec. 31, 2021
Cumulative
impairment
Cost
Net
carrying
amount
11,177
(2,392)
8,785
1,209
275
566
527
1,303
25
18
70
199
84
46
-
580
21
400
-
1,209
(253)
-
-
-
-
(18)
-
-
-
(3)
-
-
-
22
566
527
1,303
25
-
70
199
84
43
-
580
21
(13)
387
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
1 16,500
(2,679)
13,821
Notes to the consolidated financial statements
331
331
Goodwill matrix at December 31, 2021
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other
Total
44
3,234
7,773
2,444
(1)
(2)
Includes Enel Energia.
Includes Tynemouth and Viva Labs.
Goodwill matrix at December 31, 2020
Millions of euro
Enel Green Power Italy
Market Italy(1)
Iberian Peninsula
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)
Millions of euro
Enel Green Power 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)
-
-
-
-
-
-
-
44
-
-
-
-
-
-
21
-
-
-
1,190
5,788
-
580
1,807
3
423
996
304
202
25
-
70
-
-
-
19
880
213
223
320
-
330
-
-
-
-
-
-
-
-
-
-
57
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
199
84
43
326
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other
-
-
-
-
-
-
-
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
21
580
8,785
22
1,303
1,209
527
566
25
387
70
199
84
43
13,821
Total
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.
The increase of €42 million in goodwill was mainly attrib-
utable to “Exchange differences” of €40 million, with the
main changes regarding Brazil and the United States.
The criteria used to identify the cash generating units
(CGUs) are based on revenue separation, which is con-
sidered the main criterion in view of the nature of our
business, taking due account of the operational rules and
regulations of the markets in which they operate and the
corporate organization. For the purposes of impairment
testing of goodwill, the CGUs are grouped on the basis of
expected synergies, consistent with management’s strate-
gic and operational vision, within the operating segments
identified for segment reporting purposes.
332
332
Integrated Annual Report 2021
Note also that in 2021, the existing CGUs underwent ex-
tensive analysis to assess the possible presence of signifi-
cant changes pursuant to IAS 36, paragraph 72.
This analysis led to a modification of existing CGUs for
Spain only, where in the Peninsular Territories the charac-
teristics of the market as well as the planning and man-
agement levels of certain plants enabled the full imple-
mentation of the strategy of integrating generation and
commercial portfolios, leveraging the entire value chain.
The situation differs for assets in the Non-Peninsular Terri-
tories, which are subject to specific regulation by virtue of
the special features of their market.
Under local regulations, the remuneration of the power
generation companies for their operations in these terri-
tories must be based on rates governed using parameters
established by the regulator.
Therefore, given the difference between local regulations
and those applicable on the Iberian Peninsula, where plant
assets are managed on a fully commercial basis, it is clear
that pursuant to IAS 36, paragraph 72, it was necessary to
modify the existing CGU for Spain in 2021. More specifical-
ly, two separate CGUs have been identified:
• one comprises mainland Iberia (Iberian Peninsula);
• the other comprises the Non-Peninsular Territories
(Iberia NPT), for which the related cash flows are largely
independent of those generated in the peninsular area,
given the regulation of the related market.
Therefore, at December 31, 2021, the CGUs independently
underwent impairment testing and an impairment loss of
€1,488 million was recognized for plants in the Non-Pen-
insular Territories.
The recoverable amount of the goodwill recognized was
estimated by calculating the value in use of the CGUs us-
ing discounted cash flow models, which involve estimating
expected future cash flows and applying an appropriate
discount rate, selected on the basis of market inputs such
as risk-free rates, betas and market-risk premiums.
Cash flows were determined on the basis of the best in-
formation available at the time of the estimate, taking ac-
count of the specific risks of each CGU, and drawn:
• for the explicit period, from the Business Plan approved
by the Board of Directors of the Parent on November 22,
2021, containing forecasts for volumes, revenue, oper-
ating costs, capital expenditure, industrial and commer-
cial organization and developments in the main mac-
roeconomic variables (inflation, nominal interest rates
and exchange rates) and commodity prices. The explicit
period of cash flows considered in impairment testing
was three years;
• for subsequent years, from assumptions concerning
long-term developments in the main variables that de-
termine cash flows, the average residual useful life of
assets or the duration of the concessions.
More specifically, the terminal value is calculated based on
the specific characteristics of the businesses related to
the various CGUs subject to impairment testing:
• perpetuity, for the businesses of large-hydro (LH) power
generation and of distribution, in which the licenses and
public concessions are of a long-term nature and are
easily renewable; as well as for the Enel X businesses,
as they feature the development of specific know-how
that is sustainable over the long term;
• annuity, for CGUs that are predominantly characterized
by retail business, for which the residual life is, there-
fore, essentially correlated with the average duration of
the customer relationships; as well as for businesses of
conventional thermal power generation (Generation and
Trading). This method is also used for the renewable en-
ergy (Enel Green Power) businesses to take account of:
(i) the value resulting from the remaining useful lives of
the plants; and (ii) the residual value, in the event of plant
decommissioning, associated with licensing rights, the
competitiveness of the production facilities (in terms of
natural resources), and network interconnectivity.
The nominal growth rate (g-rate) is equal to the long-term
rate of growth in electricity and/or inflation (depending
on the country and business involved) and in any case no
higher than the average long-term growth rate of the ref-
erence market.
The analysis of the impact of climate change on factors
relevant to the business is a complex activity that requires
the construction of a scenario framework and coherent
analysis of the various dimensions involved. More informa-
tion is available in the section at the end of this note en-
titled “Analysis of energy transition scenarios and climate
change impacts used in the valuation models”.
The Group confirmed its strategic direction based on the
trends associated with the energy transition. The use of
capital has been focused on decarbonization through the
development of generation assets that use renewable
sources, on the enabling infrastructures linked to the de-
velopment of networks and on the implementation of plat-
form models, making the most of technological and digi-
tal evolution, which will foster the electrification of energy
consumption, as well as the development of new services
for end users. Specifically, in 2021 Enel’s decarbonization
roadmap was updated to capture the acceleration in the
spread of renewables and the reduction in thermal gen-
eration capacity envisaged in the new 2022-2024 Strate-
gic Plan and in the 2030 ambitions presented at the 2021
Capital Markets Day, setting the following objectives in line
with the Paris Agreement:
Notes to the consolidated financial statements
333
333
Time horizon
Short term
Medium term
2024
2030
Greenhouse gas (GHG) reduction target
• Direct emissions of Scope 1 greenhouse gases to 140 gCO2eq/
kWh (-36% compared with 2021)
• 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)
• 55% reduction in indirect Scope 3 emissions associated with gas
consumption by end users compared with 2017
Long term
2040
• Full decarbonization of energy mix
Note also that the Group took account of the impacts of
climate change in the long term. More specifically:
• we consider a long-term growth rate in the estimation
of the terminal value that is in line with the change in
electricity demand over the 2022-2050 period, based
on the specific features of the businesses concerned,
adopting certain assumptions concerning the increase
in temperature due to climate change and trends con-
nected with the energy transition;
• we assume that the Group will incur the costs provi-
sioned for decommissioning of fossil fuel generation
plants in line with the goal of zero direct (Scope 1) and
indirect emissions from retail activities (Scope 3);
• we perform a sensitivity analysis of the estimation of the
long-term growth rate, as detailed below.
The value in use calculated as described above was found
to be greater than the amount recognized on the state-
ment of financial position for all CGUs, with the exception
indicated below.
In order to verify the robustness of the value in use of the
CGUs, sensitivity analyses were conducted for the main
value drivers, in particular WACC, the long-term growth
rate and margins, the outcomes of which fully supported
that value.
The table below reports the composition of the main
goodwill values for the companies within each CGU, along
with the discount rates applied and the time horizon over
which the expected cash flows have been discounted.
334
334
Integrated Annual Report 2021
Millions of euro
Amount
of
goodwill
Growth
rate(1)
Pre-tax
WACC
discount
rate(2)
Explicit
period
of cash
flows
at Dec. 31, 2021
Terminal
value(3)
Amount
of
goodwill
Growth
rate(1)
Pre-tax
WACC
discount
rate(2)
Explicit
period
of cash
flows
at Dec. 31, 2020
Iberian Peninsula
8,785
1.64%
3.93%
3 years
Chile
1,209
2.02%
6.58%
3 years
Argentina
22
24.11%
46.75%
3 years
Peru
566
2.31%
6.64%
3 years
Colombia
527
3.11%
8.82%
3 years
Brazil
1,303
3.30%
9.09%
3 years
Perpetuity/25
years EGP/14
years G&T
Perpetuity/25
years EGP/6
years G&T
Perpetuity/8
years G&T
Perpetuity/23
years EGP/9
years G&T
Perpetuity/28
years EGP/16
years G&T
Perpetuity/26
years EGP/7
years G&T
8,785
1.65%
4.06%
3 years
1,205
1.97%
6.95%
3 years
275
11.79%
41.61%
3 years
564
2.30%
6.73%
3 years
530
3.04%
8.54%
3 years
1,273
3.25%
9.35%
3 years
Terminal
value(3)
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
Central America
Enel Green Power
North America
25
70
2.03%
7.85%
3 years
19 years
2.03%
5.01%
3 years
26 years
25
70
1.97%
8.15%
3 years
22 years
1.97%
5.49%
3 years
25 years
Enel X North America
199
2.03%
7.62%
3 years
Perpetuity
184
1.97%
8.25%
3 years
Perpetuity
Enel X Asia Pacific
Enel X Rest of Europe
Enel Green Power
Italy
84
43
21
2.03%
2.03%
8.81%
3 years
Perpetuity
8.24%
3 years
Perpetuity
1.52%
4.94%
3 years
Perpetuity/23
years
84
39
20
2.02%
2.02%
9.07%
3 years
Perpetuity
8.70%
3 years
Perpetuity
1.38%
5.44%
3 years
Perpetuity/24
years
Market Italy
580
1.48%
9.14%
3 years
15 years
580
1.30%
9.98%
3 years
15 years
Romania
387
2.06%
7.56%
3 years
Perpetuity/25
years
394
2.35%
7.98%
3 years
Perpetuity/26
years
CGUs with no
recognized goodwill
but that underwent
impairment testing
given the presence
of the indicators
provided for in IAS 36
Iberia NPT (Non-
Peninsular Territories)(4)
Australia(5)
Mexico(6)
-
-
-
-
3.42%
5 years
5 years
n.a.
n.a.
n.a.
n.a.
n.a.
0.91%
3.36%
5.50%
3 years
8.77%
3 years
25 years
24 years
-
18
1.35%
1.43%
4.42%
3 years
8.83%
3 years
26 years
25 years
(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 Iberia NPT, it became necessary to perform the test following the deterioration in local market and regulatory conditions.
(5) With regard to Australia, it became necessary to perform the test following the deterioration in macroeconomic conditions.
(6) With regard to Mexico, it became necessary to perform the test following the deterioration in industrial and commercial performance.
At December 31, 2021, in the impairment tests performed
on the CGUs with no goodwill recognized, a post-tax im-
pairment loss of €1,116 million was found for the Iberia
NPT CGU, one of €113 million for the Mexico CGU and one
of €21 million for the Australia CGU.
Notes to the consolidated financial statements
335
335
Analysis of energy transition scenarios and
climate change impacts used in the valuation
models
Analyzing the impact of climate change on factors relevant
to our business is a complex endeavor that requires the
construction of a scenario framework and consistent anal-
yses along the various dimensions involved.
In particular, the transition scenarios describe the possi-
ble industrial and technological configurations in specific
contexts of social, economic and policy evolution, cor-
responding to different greenhouse gas (GHG) emission
trends, while the physical scenarios describe the possible
future trends in variables.
In 2021, Enel revised the medium- and long-term energy
transition scenarios, within the overall framework ensuring
their consistency with the climate scenario, and defined
three alternative scenario narratives.
• Paris scenario – calls for achieving the objectives of
the Paris Agreement, so it is a level of climate ambition
that is significantly higher than business as usual. The
greater ambition is supported by greater electrification
of energy consumption and a growing development of
renewables.
• Slow Transition scenario – characterized by a slower en-
ergy transition that does not achieve the objectives of
the Paris Agreement. This scenario involves a slower in-
crease in renewables and in the electrification process
that of the Paris scenario, particularly over the short
term (i.e., delays in implementation of the energy tran-
sition).
• Best Place scenario: designed to test assumptions that
improve upon the Paris scenario. Here, too, the objec-
tives of the Paris Agreement are achieved, but the sce-
nario considers a wider range of technology options,
such as a greater penetration of green hydrogen (i.e.,
produced using renewable energy) used more widely in
hard-to-abate sectors, thereby facilitating the decar-
bonization process towards net zero emissions.
At Enel, we have selected the Paris scenario, which calls for
achieving the Paris Agreement objectives, as the bench-
mark for long-term planning, unlike last year when the
benchmark was the stated-policies scenario. We did this
on the belief that the world’s governments, businesses,
organizations, and people will work together effectively to
mitigate greenhouse gas emissions. The increased com-
mitment to net zero emissions in 2021 among nations that
currently account for 88% of global emissions(25) and the
success of COP26 support the decision to select a sce-
nario that achieves the Paris objectives as Enel’s long-term
benchmark. As for the possibility of assuming achievement
of the more challenging Paris Agreement objective, i.e., to
stabilize average global temperatures to within +1.5 °C, as
a benchmark for long-term planning, there remain evident
uncertainties that a number of countries could remain on
business-as-usual trajectories, thereby slowing the decar-
bonization process towards net zero emissions by 2050.
Given this external environment, the Enel Group imple-
ments a business model that is in line with the highest am-
bition of the Paris Agreement and so is consistent with an
increase in average global temperatures of 1.5 °C by 2100.
Enel has set a long-term objective of reaching zero direct
emissions (Scope 1) with fully renewable power generation
and zero emissions connected with the retail sale of ener-
gy (Scope 3).
The assumptions for trends in commodities prices feed-
ing the Paris scenario are consistent with the external sce-
narios that achieve the objectives of the Paris Agreement.
More specifically, we assume sustained growth in the price
of CO2 through 2030, caused by a gradual reduction in the
supply of permits as demand increases, as well as stabili-
zation in the price of coal due to declining demand. As for
gas, we expect pricing pressures to lessen in the coming
years as we see a realignment between global supply and
demand. Finally, we are forecasting a gradual stabilization
in oil prices, with demand expected to peak by around
2030.
(25) At December 28, 2021.
336
336
Integrated Annual Report 2021
In the following tables, the values for “Enel scenario” rep-
resent the assumptions in the Group’s baseline scenario
used for various applications, including planning activities
and determining impairment.
Brent ($/barrel)
~68
~70
~62
API2 ($/ton)
~72
~73
~67
~65
43.2
~45
50.3
Enel scenario
Average
benchmark(1)
Max
benchmark
Min
benchmark
2020(2)
2030
2020(2)
2030
CO2 EU - ETS (€/ton)
~127
TTF (€/MWh)
~42
~95
~87
24.7
9.3
~53
~21
~20
~13
2020(2)
2030
2020(2)
2030
(1) Sources: IEA, Sustainable Development Scenario and Net Zero Scenario; BNEF; IHS green case scenario, Enerdata green scenario. N.B. The scenarios used
as benchmarks have been published at various points throughout the year and may not be up to date with the latest market trends.
(2) Actuals.
The two alternative scenarios, i.e., Slow Transition and Best
Place, are used for strategic stress testing, risk assess-
ment, and the identification of business opportunities.
The Group has selected three of the global climate path-
ways developed by the Intergovernmental Panel on Climate
Change (IPCC):
• SSP1-RCP 2.6: compatible with a range of global warm-
ing below 2 °C from pre-industrial levels (1850-1900) by
2100. In the analyses that consider both physical and
transition variables, the Group associates this scenario
with the Paris and Best Place scenarios.
• SSP2-RCP 4.5: compatible with an intermediate sce-
nario that calls for an average temperature increase of
about 2.7 °C by 2100 from pre-industrial levels. This sce-
nario forecasts global warming in line with the estimates
of temperature increases that consider current policy
around the world(26); in the analyses that consider both
physical and transition variables, the Group associates
the SSP2-RCP 4.5 scenario with the Slow Transition
scenario.
• SSP5-RCP 8.5: compatible with a scenario where no
particular measures to combat climate change are im-
plemented. This scenario forecasts an increase in global
temperatures of about +4.4 °C from pre-industrial lev-
els by 2100.
The following describes the overall effects of the transition
scenarios and physical scenarios for electricity demand in
the main countries in which the Group operates.
(26) Climate Action Tracker Thermometer, estimates of global heating at 2100 considering existing “Policies and action” and “2030 targets only” (November 2021
update).
Notes to the consolidated financial statements
337
337
Italy and Spain
Integrated energy system models enable the quantifica-
tion of individual demands for service in a country. This
level of detail therefore makes it possible to discriminate
the specific effects that a change in temperature can have
on energy requirements.
Similarly to the previous year, the speed of the energy
transition has had a much greater impact on electricity
demand than the increase in temperature as a result of
climate change. Decarbonization policies, together with
technological innovation, social responsibility, and con-
sequent changes in consumer behavior, will play an active
role in trends in electricity demand and in the energy mix
generally. However, analysis makes it clear that an increase
in temperature as a result of climate change will lead to
an increase in electricity demand, even if limited within a
range of one percentage point for both Italy and Spain.
Considering the integrated view, the potential effect of
more ambitious transition scenarios has a more significant
impact on electricity demand than the increase in temper-
ature resulting from climate change.
Although the trends in degree days (both HDD and CDD)(27)
in the various climate scenarios are similar between the
two countries, the percentage differences in electricity
demand in Spain for the three scenarios are lower than in
Italy. The essential difference concerns the energy system
by 2030, for which Spain’s existing national energy plan is
already very ambitious and in line with RCP 2.6, meaning
that the Slow Transition scenario is closer to the Paris sce-
nario. Therefore, we expect less volatility in energy system
trends and in electricity demand over the 2031-2050 pe-
riod.
Italy - Average impact on electricity demand (2031-2050) of the three transition scenarios paired
with RCP 2.6 and 4.5
Paris RCP 2.6 to Slow Transition RCP 4.5
Paris RCP 2.6 to Best Place RCP 2.6
Italy
19%
19%
Baseline RCP
2.6 Paris
0.8%
Baseline RCP
2.6 Paris
-2.1%
-1.3%
Temperature
effect
Transition
effect
Baseline RCP
4.5 Slow
Transition
Temperature
effect
Transition
effect
Baseline RCP
2.6 Best
Place
(27) Heating Degree Days (HDD); Cooling Degree Days (CDD).
338
338
Integrated Annual Report 2021
Spain - Average impact on electricity demand (2031-2050) of the three transition scenarios
paired with RCP 2.6 and 4.5
Paris RCP 2.6 to Slow Transition RCP 4.5
Paris RCP 2.6 to Best Place RCP 2.6
Spain
15%
15%
Baseline RCP
2.6 Paris
0.5%
Baseline RCP
2.6 Paris
-1.6%
-1.1%
Temperature
effect
Transition
effect
Baseline RCP
4.5 Slow
Transition
Temperature
effect
Transition
effect
Baseline RCP
2.6 Best
Place
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 sensitivi-
ty analysis was carried out by associating the Slow Transition
scenario with RCP 8.5, in addition to RCP 4.5. An assumption
of a further temperature increase, without changing the en-
ergy transition, results in a more limited change in demand
equal to -0.8% for Italy and -0.6% for Spain.
Effect of temperature and transition on electricity demand, average over specified period of temperature and transition
contributions for different combinations of transition scenarios and climate pathways
Paris to Slow Transition RCP 4.5
Paris to Slow Transition RCP 8.5
Paris to Best Place
Temperature
effect from
RCP 2.6 to
RCP 4.5
Transition
effect
Total
impact
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 8.5
Total
impact
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 2.6
Total
impact
Italy
2022-2030
2031-2050
-1.3%
-2.1%
0.0%
0.8%
-1.3%
-1.3%
-1.3%
-2.1%
0%
1.3%
-1.3%
-0.8%
2.7%
19.0%
0.0%
0.0%
2.7%
19.0%
Spain
2022-2030
2031-2050
-0.9%
-1.6%
0.0%
0.5%
-0.9%
-1.1%
-0.9%
-1.6%
0.0%
0.9%
-0.9%
-0.6%
3.1%
15.2%
0.0%
0.0%
3.1%
15.2%
As a final consideration, however, note that, in the future,
greater than forecast electrification of residential heating
could change both the sign and the size of the tempera-
ture effect in both countries. It is therefore necessary to
monitor developments in the share of electrification of
heating during the annual review.
Notes to the consolidated financial statements
339
339
Latin America
In Latin American countries, the impact of temperature
trends, quantified through the heating degree days (HDD)
and cooling degree days (CDD) metrics, was estimated us-
ing econometric forecasting models based on historical
elasticity.
The analysis shows that Brazil could experience a signifi-
cant increase in demand due to the increase in tempera-
ture, with an estimated increase of between 0.8% and 1.5%
in prospective demand (calculated as the average of the
demand forecasts in the 2030-2050 period). The driving
factor would be the greater demand for cooling expect-
ed in the country. This change is also confirmed using a
system modeling approach. However, these forecasts are
subject to a significant degree of uncertainty given the vol-
atility of Brazilian economic growth.
Argentina could also experience an increase in demand
linked to an increase in temperature, estimated at between
0.3% and 0.6% of prospective demand. Similarly to Brazil,
this forecast depends largely on the impact of macroeco-
nomic developments in this country on electricity demand.
The same considerations can also be extended to the oth-
er countries in which the Group is present. In particular,
in the rest of Latin America, where we again observe the
positive elasticity of electricity demand to temperatures,
the expected rise in temperature would still have less im-
pact than economic growth. In fact, in Chile and Colombia,
historical evidence still shows a strong coupling between
the growth of electricity demand and GDP growth, with
demand from the industrial sector accounting for around
50% of electricity consumption. Furthermore, the variabil-
ity of the macroeconomic context could have repercus-
sions on the electrification of the residential and service
sectors, which represent the most immediate drivers of
the increase in electricity demand in the event of an in-
crease in temperatures.
The following table summarizes the main temperature ef-
fects in the Latin American countries, with ranges obtained
by applying a 95% confidence interval to our baseline case:
.
Upper
bound
Lower
bound
Country
Argentina
Brazil
Chile
Colombia
Country
Argentina
Brazil
Chile
Colombia
Temperature effect (annual average)
from RCP 2.6 to RCP 4.5
from RCP 2.6 to RCP 8.5
TWh
0.68
7.92
0.05
0.08
%
0.3
0.8
0.0
0.1
TWh
1.37
15.83
0.10
0.17
%
0.6
1.5
0.1
0.1
Temperature effect (annual average)
from RCP 2.6 to RCP 4.5
from RCP 2.6 to RCP 8.5
TWh
0.57
2.48
0.01
0.02
%
0.3
0
0.0
0.0
TWh
1.15
4.96
0.01
0.05
%
0.5
0
0.0
0.0
Effect of the variation in temperature on electricity demand in the main Latin American countries in which the Group operates (average 2030-2050).
340
340
Integrated Annual Report 2021
Notes to the consolidated financial statements
341
341
24. Deferred tax assets and liabilities – €11,034 million and €9,259 million
The following tables detail changes in deferred tax assets
and liabilities by type of timing difference and calculated
based on the tax rates established by applicable regula-
tions, as well as the amount of deferred tax assets offset-
table, where permitted, with deferred tax liabilities.
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
2,123
342
1,725
340
508
561
898
2,763
8,578
249
53
(16)
(133)
835
-
1
-
1,622
(9)
(6)
1,608
5,442
141
3
470
1,885
7,797
(107)
275
309
1,150
10
1,163
-
-
-
-
-
-
-
-
-
10
10
(7)
11
(4)
(27)
10
5
2
13
19
(83)
7
19
(57)
18
7
(4)
(8)
(3)
54
7
4
65
at Dec. 31,
2021
2,469
2,035
785
2,248
871
2,626
11,034
-
-
-
-
-
(3)
(3)
(19)
5,538
-
(9)
(28)
1,527
2,194
9,259
6,346
4,230
341
Millions of euro
Deferred tax assets:
- differences in the
carrying amount
of property, plant
and equipment and
intangible assets
- 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
Non-offsettable
deferred tax assets
Non-offsettable
deferred tax liabilities
Excess net deferred
tax liabilities after any
offsetting
“Deferred tax assets” recognized at December 31, 2021,
as the recovery of such assets is considered reasonably
certain, totaled €11,034 million (€8,578 million at Decem-
ber 31, 2020).
Deferred tax assets increased by €2,456 million during
the year, essentially due to the recognition of greater de-
ferred tax assets associated with the following factors:
• impairment losses, mainly in Italy and Spain;
• developments in the fair value of cash flow hedge de-
rivatives;
• provisions for retirement, renovation and digitalization,
mainly in Italy.
Noted that deferred tax assets (in the amount of €187
million) were not recorded on prior and current-year tax
losses in the amount of €754 million because, on the ba-
sis of current estimates of future taxable income, it is not
highly likely that such assets will be recovered.
“Deferred tax liabilities” amounted to €9,259 million
at December 31, 2021 (€7,797 million at December 31,
2020). They essentially include the determination of the
tax effects of the adjustments to assets acquired as part
of the final allocation of the cost of acquisitions made
in the various years and the deferred taxation in respect
of the differences between depreciation charged for tax
purposes, including accelerated depreciation, and de-
preciation based on the estimated useful lives of assets.
Deferred tax liabilities increased by a total of €1,462 mil-
342
342
Integrated Annual Report 2021
lion due, in particular, to:
• developments in the fair value of cash flow hedge de-
rivatives;
• tax reforms in Argentina and Colombia.
These effects were partially offset by the reversals of de-
ferred taxes following the depreciation, amortization and
impairment of the amounts allocated in the past to prop-
erty, plant and equipment and intangible assets at the
time of the acquisition of control as a result of purchase
price allocation.
25. Equity-accounted investments – €704 million
The following table shows changes in the main invest-
ments in joint ventures and associates accounted for using
the equity method.
Millions of euro
Joint ventures
Slovak Power Holding
EGPNA Renewable Energy
Partners
Zacapa Topco Sàrl
Project Kino companies
Tejo Energia Produção e
Distribuição de Energia
Eléctrica
Rocky Caney Holding
Drift Sand Wind Project
Front Marítim del Besòs
Enel Green Power Bungala
Rusenergosbyt
Energie Electrique de
Tahaddart
Transmisora Eléctrica de
Quillota
PowerCrop
Associates
CESI
Tecnatom
Suministradora Eléctrica
de Cádiz
Compañía Eólica Tierras
Altas
Cogenio Srl
Other
Total
Impact on
profit or
loss
% held
Change in
consolidation
scope Dividends
Reclassifications
from/to assets
held for sale
Other
changes
% held
at Dec. 31, 2021
at Dec. 31, 2020
104
50.0%
115
20.0%
115
20.6%
40
20.0%
46
43.8%
45
35
33
31
46
20.0%
50.0%
61.4%
51.0%
49.5%
22
32.0%
9
2
50.0%
50.0%
60
28
42.7%
45.0%
12
33.5%
8
37.5%
20.0%
12
98
861
523
8
(1)
(19)
(17)
5
3
-
-
44
1
-
4
-
(2)
3
1
2
16
571
-
-
-
-
-
-
-
-
(31)
-
-
-
-
-
-
-
-
-
-
-
-
-
(16)
-
-
-
-
(42)
(2)
(6)
(2)
-
-
(5)
(1)
(1)
4
(27)
(16)
(91)
-
-
(2)
-
-
-
-
-
-
-
-
-
(1)
-
-
-
-
-
(1)
(4)
(627)
-
50.0%
(2)
2
-
(1)
-
2
-
-
3
(3)
(3)
(3)
(1)
1
-
-
(1)
27
(606)
121
114
21
20.0%
20.6%
20.0%
12
43.8%
20.0%
50.0%
61.4%
100.0%
49.5%
32.0%
-
50.0%
42.7%
45.0%
33.5%
37.5%
20.0%
50
40
33
-
51
18
-
-
59
27
10
8
12
128
704
The investment in Slovak Power Holding is accounted for
using the equity method. Under the provisions of specif-
ic agreements, its carrying amount can be adjusted to a
lower amount resulting from the application of a price
formula that governs the possible sale of the investment
itself and which is subject to multiple conditions to be
assessed based on different scenarios’ probability of oc-
currence. At December 31, 2020, the fair value calculat-
ed using that price formula (€104 million) was lower than
the amount obtained using the equity method. In 2021,
due to the recognition of a significant reduction in the
OCI reserves relating to hedging derivatives (€687 million)
and the recognition through profit or loss of the profit or
loss (€555 million) for the period and previous years not
previously recognized (due to the adjustments to the low-
er fair value), the carrying amount of the investment was
reduced to zero. In addition, a provision for impairment
losses on investments of €28 million was established.
Apart from these developments, the change in equity-ac-
counted investments is mainly attributable to:
• dividends distributed in the period in the amount of
€91 million, mainly by Rusenergosbyt and Tejo Energia
Produção e Distribuição de Energia Eléctrica;
Notes to the consolidated financial statements
343
343
• the effects of changes in the consolidation scope,
mainly relating to the consolidation of companies be-
longing to the Enel Green Power Bungala Group, previ-
ously measured using the equity method (€31 million).
These negative effects were offset by the “Impact on
profit or loss” item, which includes the profit or loss rec-
ognized by the companies in proportion to the share
held in these companies by the Enel Group. It is mainly
accounted for by the profit contributed by Rusenergos-
byt (€44 million). The following tables provide a summary
of financial information for the main joint ventures and
associates of the Group not classified as held for sale in
accordance with IFRS 5.
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
6,762
871
-
25
4
25
24
23
2
6,922
729
-
21
5
17
23
18
2
5,369
143
120
14
10
-
26
48
3
802
90
106
33
6
-
33
45
2
12,131
1,014
120
39
14
25
50
71
5
7,724
819
106
54
11
17
56
63
4
1,917
555
24
102
57
201
69
29
20
3,765
551
16
156
69
210
62
36
20
Joint ventures
Slovak Power Holding
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
12,194
1,393
10,813
1,253
3
34
49
198
61
64
19
2
82
62
202
60
67
21
1,854
176
141
107
22
28
58
36
6
676
117
120
128
18
25
58
32
3
14,048
1,569
144
141
71
226
119
100
25
11,489
1,370
122
210
80
227
118
99
24
Millions of euro
Total revenue
Pre-tax profit/(loss)
Profit/(Loss) from continuing
operations
2021
2020
2021
2020
2021
2020
Joint ventures
Slovak Power Holding
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
3,417
267
2,288
126
36
140
97
14
13
2,954
221
2,198
114
33
122
78
25
8
190
15
112
(7)
7
(7)
7
10
4
163
7
112
17
5
(14)
(5)
21
-
137
(4)
90
(16)
4
(8)
7
8
3
120
(3)
90
8
3
(16)
(5)
14
-
344
344
Integrated Annual Report 2021
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
6,762
871
-
25
4
25
24
23
2
6,922
729
-
21
5
17
23
18
2
5,369
143
120
14
10
-
26
48
3
802
90
106
33
6
-
33
45
2
12,131
1,014
120
39
14
25
50
71
5
7,724
819
106
54
11
17
56
63
4
1,917
555
24
102
57
201
69
29
20
3,765
551
16
156
69
210
62
36
20
Joint ventures
Slovak Power Holding
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
12,194
1,393
10,813
1,253
3
34
49
198
61
64
19
2
82
62
202
60
67
21
1,854
176
141
107
22
28
58
36
6
676
117
120
128
18
25
58
32
3
14,048
1,569
144
141
71
226
119
100
25
Millions of euro
Total revenue
Pre-tax profit/(loss)
operations
Profit/(Loss) from continuing
2021
2020
2021
2020
2021
2020
Joint ventures
Slovak Power Holding
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
3,417
267
2,288
126
36
140
97
14
13
2,954
221
2,198
114
33
122
78
25
8
190
15
112
(7)
7
(7)
7
10
4
163
7
112
17
5
(14)
(5)
21
-
137
(4)
90
(16)
(8)
4
7
8
3
11,489
1,370
122
210
80
227
118
99
24
120
(3)
90
8
3
(16)
(5)
14
-
Notes to the consolidated financial statements
345
345
26. Derivatives
Millions of euro
Non-current
Current
Derivative financial assets
Derivative financial liabilities
2,772
3,339
1,236
3,606
22,791
24,607
3,471
3,531
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
For more information on derivatives classified as non-cur-
rent financial assets, please see note 49 for hedging deriv-
atives and trading derivatives.
27. Current/Non-current contract assets/(liabilities)
Millions of euro
Non-current
Current
Contract assets
Contract liabilities
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
530
6,214
304
6,191
121
1,433
176
1,275
Non-current assets deriving from contracts with custom-
ers (contract assets) refer mainly to assets under develop-
ment resulting from public-to-private service concession
arrangements recognized in accordance with IFRIC 12 and
which have an expiration of beyond 12 months (€517 mil-
lion). These cases arise when the concession holder has
not yet obtained full right to recognize the asset from the
grantor, in that there remains a contractual obligation to
ensure that the asset is completed and can be remunerat-
ed through rates. The figure at December 31, 2021 includes
investments for the year in the amount of €907 million.
Current contract assets mainly concern construction con-
tracts in progress (€98 million) to be invoiced, payments
on which are subject to the fulfillment of a performance
obligation.
The carrying amount at December 31, 2021 of non-cur-
rent contract liabilities is mainly attributable to distribution
operations in Italy (€3,252 million), Spain (€2,521 million)
and Romania (€438 million) as a result of the accounting
treatment of revenue from connections of new customers,
which are deferred over the average duration of the asso-
ciated contracts.
Current contract liabilities include the contractual liabilities
related to revenue from connections to the electricity grid
expiring within 12 months in the amount of €1,016 million,
mainly recognized in Italy and Spain, as well as liabilities for
construction contracts in progress (€392 million).
As required under IFRS 15, the following table reports the
reversal to profit or loss of contract liabilities by time band.
Millions of euro
Within 1 year
Within 2 years
Within 3 years
Within 4 years
Within 5 years
More than 5 years
Total
at Dec. 31, 2021
at Dec. 31, 2020
1,433
498
480
479
477
4,280
7,647
1, 275
481
461
460
459
4,330
7,466
346
346
Integrated Annual Report 2021
28. Other non-current financial assets – €5,704 million
Millions of euro
Equity investments in other companies measured at fair value
Financial assets and securities included in net financial debt (see note 28.1)
Service concession arrangements
Non-current financial prepayments
Total
at Dec. 31, 2021 at Dec. 31, 2020
Change
72
2,692
2,890
50
5,704
70
2,745
2,300
44
2
(53)
590
6
2.9%
-1.9%
25.7%
13.6%
5,159
545
10.6%
“Other non-current financial assets” increased by €545
million, mainly reflecting the increase in financial assets in
respect of service concession arrangements in Brazil and
Costa Rica. This factor was partially offset by a decline in
financial assets included in net financial debt, as detailed
in note 28.1.
The following is a breakdown of equity investments in oth-
er companies measured at fair value.
Millions of euro
Empresa Propietaria 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
% held
11.1%
2.4%
16.0%
0.3%
12.5%
4.2%
4.7%
at Dec. 31,
2021
5
13
7
1
10
11
12
13
72
at Dec. 31,
2020
% held
Change
11.1%
2.4%
16.0%
0.3%
12.5%
3.3%
3.7%
5
13
7
1
10
10
11
13
70
-
-
-
-
-
1
1
-
2
28.1 Other non-current financial assets included in net financial debt – €2,692 million
Millions of euro
Securities
Other financial assets
Total
at Dec. 31, 2021 at Dec. 31, 2020
Change
403
2,289
2,692
408
2,337
2,745
(5)
(48)
(53)
-1.2%
-2.1%
-1.9%
“Securities” are primarily represented by financial instru-
ments measured at fair value through other comprehen-
sive income in which the Dutch insurance companies in-
vest a portion of their liquidity.
The reduction in “Other financial assets” is mainly attrib-
utable to:
• a decline of €271 million in the financial assets of Enel
SpA, essentially associated with the disposal of the in-
vestment in Open Fiber;
• the reclassification of €90 million of the current portion
of the financial assets of e-distribuzione in respect of
the Energy and Environmental Services Fund (€55 mil-
lion) and the amount receivable in respect of the reim-
bursement of the extraordinary costs incurred by dis-
tributors for the early replacement of electromechani-
cal meters with electronic devices (€35 million).
These factors were partially offset by:
• an increase of €198 million the financial assets of Enel
Finance International, mainly regarding the Slovak Pow-
er Holding BV loan;
• an increase of €42 million in financial assets for depos-
its;
• an impairment loss of €25 million on the amount due
to Enel Produzione from EP Slovakia BV associated with
the sale of 50% of the investment in Slovak Power Hold-
ing.
Notes to the consolidated financial statements
347
347
29. Other current financial assets – €8,645 million
Millions of euro
Current financial assets included in net financial debt (see note 29.1)
Other
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
8,467
178
8,645
4,971
3,496
142
36
70.3%
25.4%
5,113
3,532
69.1%
“Other current financial assets” increased by €3,532 mil-
lion, mainly reflecting the increase in current financial as-
sets included in net financial debt, as detailed in note 29.1,
as well as the increase in the current portion of financial
assets in respect of service concession arrangements.
29.1 Other current financial assets included
in net financial debt – €8,467 million
Millions of euro
Current portion of long-term financial assets
Securities at FVTPL
Securities at FVOCI
Financial assets and cash collateral
Other
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
1,538
1
87
6,485
356
8,467
1,428
-
67
110
1
20
3,223
3,262
7.7%
-
29.9%
-
253
103
40.7%
4,971
3,496
70.3%
The increase in the item is mainly attributable to:
• €3,262 million in respect of an increase in cash collat-
eral paid to counterparties for derivatives transactions;
• €110 million in respect of the increase in the current
portion of long-term financial assets, which essentially
reflects:
– the increase in financial assets relating to the deficit
of the Spanish electricity system (€47 million);
– an increase in financial assets for security deposits
(€61 million).
30. Other non-current assets – €3,268 million
Millions of euro
Amounts due from institutional market operators
Other assets
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
242
3,026
3,268
186
2,308
2,494
56
718
774
30.1%
31.1%
31.0%
“Amounts due from institutional market operators“ in-
creased by €56 million, mainly in Spain as a result of the
remuneration of distribution operations.
“Other assets“ at December 31, 2021 included tax assets in
the amount of €2,286 million (€1,539 million at December
31, 2020), security deposits in the amount of €340 million
(€330 million at the end of 2020) and non-monetary grants
to be received in respect of green certificates amounting
to €56 million (€73 million at December 31, 2020).
The change for the year mainly reflected the tax assets
recognized by distribution companies connected with the
PIS/COFINS dispute in Brazil in the amount of €596 million.
348
348
Integrated Annual Report 2021
31. Other current assets – €5,002 million
Millions of euro
Amounts due from institutional market operators
Advances to suppliers
Amounts due from employees
Amounts due from others
Sundry tax assets
Current accrued income and prepayments
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
2,205
326
29
1,071
1,164
207
5,002
1,265
940
74.3%
309
30
956
848
170
17
(1)
115
316
37
5.5%
-3.3%
12.0%
37.3%
21.8%
3,578
1,424
39.8%
“Amounts due from institutional market operators“ include
amounts due in respect of the Italian system in the amount
of €1,519 million (€890 million at December 31, 2020) and
the Spanish system in the amount of €667 million (€337
million at December 31, 2020). The increase was essentially
attributable to the increase in amounts receivable in Italy
in respect of the Energy and Environmental Services Fund,
mainly held by e-distribuzione (€346 million) and Servizio
Elettrico Nazionale (€1,046 million), primarily connected
with equalization mechanisms.
The increase of €316 million in sundry tax assets is mainly
attributable to an increase in credits for indirect taxes and
duties in Spain (€169 million) and Latin America (€194 mil-
lion), partially offset by a decline in such items in Italy (€42
million).
“Amounts due from others“ increased, mainly due to an in-
crease in receivables for settled derivatives transactions in
commodities (€303 million), primarily registered in Italy and
Spain, partially offset by a decrease in assets in respect of
security deposits and an increase in loss allowances.
32. Inventories – €3,109 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, 2021
at Dec. 31, 2020
Change
1,023
1,793
2,816
139
3
16
158
49
86
595
1,542
2,137
428
251
679
71.9%
16.3%
31.8%
159
(20)
-12.6%
5
7
171
52
41
(2)
9
(13)
(3)
45
-40.0%
-
-7.6%
-5.8%
-
3,109
2,401
708
29.5%
“Raw and ancillary materials, and consumables“ consist of
materials and equipment used to operate, maintain, and
construct power plants and distribution networks, as well
as fuel inventories to cover the Group’s requirements for
generation and trading activities.
The overall increase in inventories in 2021 (€708 million) is
mainly attributable to an increase in inventories of fuel and
materials, devices and other inventories recorded above all
in Italy (€358 million), Spain (€195 million) and Latin Ameri-
ca (€89 million), notably gas inventories to meet the needs
of the Group, and an increase in stocks of low- and medi-
um-voltage materials.
Notes to the consolidated financial statements
349
349
33. Trade receivables – €16,076 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, 2021
at Dec. 31, 2020
Change
10,111
2,658
3,158
15,927
149
16,076
7,986
900
2,945
2,125
1,758
213
26.6%
-
7.2%
11,831
4,096
34.6%
215
(66)
-30.7%
12,046
4,030
33.5%
Trade receivables due from customers are recognized net
of loss allowances, which totaled €3,663 million at the end
of the year, compared with a balance of €3,287 million at
the end of the previous year.
Specifically, the increase in 2021, totaling €4,030 million,
mainly recognized in Italy (€1,495 million), Spain (€1,625
million) and Latin America (€728 million), was attributable
to an increase in trade receivables for the sale and trans-
port of electricity and gas, partially offset by an increase in
net loss allowances.
For more information on trade receivables, see note 46
“Financial instruments by category”.
34. Cash and cash equivalents – €8,858 million
Cash and cash equivalents, detailed in the following table,
increased by €2,952 million as a result of an increase in
cash collateral paid by counterparties in derivatives trans-
actions, partially offset by the decrease, especially for the
Parent, attributable to cash outflows linked to the acqui-
sition of additional equity interests in subsidiaries in Latin
America.
Millions of euro
Bank and postal deposits
Cash and cash equivalents on hand
Other investments of liquidity
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
8,118
8
732
8,858
5,699
2,419
42.4%
42
165
(34)
567
-81.0%
-
5,906
2,952
50.0%
350
350
Integrated Annual Report 2021
35. Assets classified as held for sale and liabilities
included in disposal groups classified as held
for sale – €1,242 million and €962 million
Changes in assets classified as held for sale during 2021
break down as follows:
Millions of euro
Reclassification
from/to current
and non-current
assets
Disposals
and changes
in the
consolidation
scope
at Dec. 31, 2020
Investments Other changes at Dec. 31, 2021
Property, plant and equipment
Intangible assets
Goodwill
Deferred tax assets
Equity-accounted investments
Non-current financial assets
Cash and cash equivalents
Inventories, trade receivables and other
current assets
781
58
-
18
489
11
29
30
3
88
1
3
4
30
13
45
(42)
(2)
-
-
(614)
-
(1)
(4)
111
-
-
-
-
-
-
-
Total
1,416
187
(663)
111
46
-
-
(5)
125
(1)
3
23
191
899
144
1
16
4
40
44
94
1,242
Changes in liabilities included in disposal groups held for
sale in 2021 break down 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
Short-term borrowings
Other current financial liabilities
Trade payables and other current
liabilities
Total
Reclassification
from/to current
and non-current
liabilities
Disposals and change
in consolidation
scope
at Dec. 31, 2020
Other changes at Dec. 31, 2021
687
2
17
57
-
-
12
33
808
-
6
28
-
5
2
-
54
95
-
(1)
(1)
-
-
-
-
(1)
(3)
95
3
2
(17)
-
-
(6)
(15)
62
782
10
46
40
5
2
6
71
962
Assets classified as held for sale and liabilities included in dis-
posal groups classified as held for sale at December 31, 2021
amounted to €1,242 million and €962 million, respectively,
and mainly refer to a number of renewables companies held
for sale in Africa and certain Enel X companies in Italy, which,
following decisions by management, meet the requirements
of IFRS 5 for classification within this aggregate.
A number of companies previously classified as available for
sale were sold in 2021, in particular the investment held by
Enel SpA in Open Fiber, the Enel Green Power companies in
Bulgaria and the solar plant owned by the Panamanian com-
pany Llano Sanchez Solar Power One SA.
At December 31, 2020, the aggregate included the Enel
Produzione business unit formed of the “Ettore Majorana”
site at Termini Imerese (€4 million), which at December 31,
2021 was again classified under “Property, plant and equip-
ment” as the preliminary sales contract was terminated.
Notes to the consolidated financial statements
351
351
36. Equity – €42,342 million
36.1 Equity attributable to owners of the Parent – €29,653 million
Millions of euro
Share capital
Treasury share reserve
Other reserves
Share premium reserve
Reserve for equity instruments - perpetual hybrid bonds
Legal reserve
Other reserves
Translation reserve
Hedging reserve
Hedging costs reserve
Reserve from measurement of financial instruments at FVOCI
Reserve from equity-accounted investments
Actuarial reserve
Reserve from disposal of equity interests without loss of control
Reserve from acquisitions of non-controlling interests
Retained earnings
Equity attributable to owners of the Parent
Share capital – €10,167 million
At December 31, 2021, the fully subscribed and paid-up
share capital of Enel SpA totaled €10,166,679,946, rep-
resented by the same number of ordinary shares with a
par value of €1.00 each. Enel SpA’s share capital was un-
changed compared with the amount reported at Decem-
ber 31, 2020.
At December 31, 2021, based on the shareholders regis-
ter and the notices submitted to CONSOB and received
by the Parent pursuant to Article 120 of Legislative Decree
58 of February 24, 1998, as well as other available informa-
tion, shareholders with interests of greater than 3% in the
Parent’s share capital were the Ministry for the Economy
and Finance (with a 23.585% stake), BlackRock Inc. (with
a 5.000% stake held for asset management purposes)
and Capital Research and Management Company (with a
5.000% stake held for asset management purposes).
Treasury share reserve – €(36) million
At December 31, 2021, treasury shares are represented by
4,889,152 ordinary shares of Enel SpA with a par value of
€1.00 each (3,269,152 at December 31, 2020), purchased
through an authorized intermediary for a total of €36 mil-
lion. The difference between the amount paid and the par
value is recognized as a reduction in equity in the share
premium reserve.
352
352
Integrated Annual Report 2021
at Dec. 31, 2021
at Dec. 31, 2020
Change
10,167
(36)
1,721
7,496
5,567
2,034
2,313
(8,125)
(2,268)
(39)
10
(721)
(1,325)
(2,378)
(843)
17,801
29,653
10,167
(3)
(39)
7,476
2,386
2,034
2,268
(7,046)
(1,917)
(242)
(1)
(128)
(1,196)
(2,381)
(1,292)
18,200
28,325
-
(33)
1,760
20
3,181
-
45
(1,079)
(351)
203
11
(593)
(129)
3
449
(399)
1,328
Other reserves – €1,721 million
Share premium reserve – €7,496 million
Pursuant to Article 2431 of the Italian Civil Code, the share
premium reserve contains, in the case of the issue of
shares at a price above par, the difference between the is-
sue price of the shares and their par value, including those
resulting from conversion from bonds. The reserve, which
is a capital reserve, may not be distributed until the legal
reserve has reached the threshold established under Arti-
cle 2430 of the Italian Civil Code.
Reserve for equity instruments - perpetual hybrid bonds
– €5,567 million
This reserve reports the nominal value, net of transac-
tion costs, of the non-convertible subordinated perpet-
ual hybrid bonds denominated in euros for international
investors.
The change during the year reflected the subscription
of new non-convertible subordinated perpetual hybrid
bonds in an amount, net of transaction costs, of €2,214
million and the conversion of bonds already in issue and
converted into perpetual hybrid bonds in the amount,
net of transaction costs, of €967 million.
In 2021, the Group paid €71 million in coupons to holders
of perpetual hybrid bonds.
Legal reserve – €2,034 million
The legal reserve is formed of the part of profits that,
pursuant to Article 2430 of the Italian Civil Code, cannot
be distributed as dividends.
Other reserves – €2,313 million
These include €2,215 million related to the remaining
portion of the adjustments carried out when Enel was
transformed from a public entity to a joint-stock com-
pany.
Pursuant to Article 47 of the Consolidated Income Tax
Code (Testo Unico Imposte sul Reddito, or “TUIR”), this
amount does not constitute taxable income when dis-
tributed.
Translation reserve – €(8,125) million
The decrease for the year, of €1,079 million, was mainly
due to the change in the consolidation scope connected
with the purchase of 17.3% of Enel Américas, partially off-
set by the net depreciation of the functional currencies
used by the foreign subsidiaries against the Group pres-
entation currency (the euro).
Hedging reserve – €(2,268) million
This includes the net loss recognized in equity from the
measurement of cash flow hedge derivatives.
Hedging costs reserve – €(39) million
In application of IFRS 9, this reserve includes the fair val-
ue gains and losses on currency basis points and forward
points.
Reserve from measurement of financial instruments at
FVOCI – €10 million
This includes net unrealized fair value losses on financial
assets.
Reserve from equity-accounted investments – €(721)
million
The reserve reports the share of comprehensive income
to be recognized directly in equity of equity-accounted
investees. The change in 2021 is mainly attributable to
the change in the hedging reserve of Slovak Power Hold-
ing following the sharp rise in commodity prices.
Actuarial reserve – €(1,325) million
This reserve includes actuarial gains and losses in respect
of employee benefit liabilities, net of tax effects.
Reserve from disposal of equity interests without loss of
control – €(2,378) million
This item mainly reports:
• the gain posted on the public offering of Enel Green
Power shares, net of expenses associated with the dis-
posal and the related taxation;
• the sale of non-controlling interests recognized as a re-
sult of the Enersis (now Enel Américas and Enel Chile)
capital increase;
• the capital loss, net of expenses associated with the
disposal and the related taxation, from the public offer-
ing of 21.92% of Endesa;
• the disposal to third parties of the non-controlling in-
terest in Enel Green Power North America Renewable
Energy Partners;
• the effects of the merger into Enel Américas of Endesa
Américas and Chilectra Américas;
• the disposal to third parties of a non-controlling inter-
est without loss of control in a number of companies in
South Africa.
The change in the reserve in 2021 is associated with the
sale of additional interests in a number of companies in
South Africa.
Reserve from acquisitions of non-controlling interests –
€(843) million
This reserve mainly includes the surplus of acquisition
prices with respect to the carrying amount of the equi-
ty acquired following the acquisition from third parties of
further interests in companies already controlled in Latin
America.
The change for the year (€449 million) mainly reflects the
effects of the increase of 17.3% in the interest held in Enel
Américas following the completion of the voluntary par-
tial tender offer and the completion of the merger of EGP
Américas into Enel Américas. Following these transactions,
Enel owns approximately 82.3% of the outstanding share
capital of Enel Américas.
Retained earnings – €17,801 million
This reserve reports earnings from previous years that
have not been distributed or allocated to other reserves.
Notes to the consolidated financial statements
353
353
The table below shows the changes in gains and losses
recognized directly in other comprehensive income, in-
cluding non-controlling interests, with specific reporting
of the related tax effects.
Millions of euro
at Dec. 31, 2020
Change
at Dec. 31, 2021
Of
which
owners
of the
Parent
Of which
non-
controlling
interests
Gains/
(Losses)
recognized
in equity
during the
year
Total
Translation reserve
(11,700)
(6,458)
(5,242)
Hedging reserve
(2,236)
(1,921)
(315)
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
(244)
(242)
-
1
(175)
(177)
(32)
(32)
(2)
(1)
2
-
Actuarial reserve
(1,828)
(1,276)
(552)
(90)
506
208
11
(642)
-
40
Released
to profit
or loss Taxes
Total
Of
which
owners
of the
Parent
Of which
non-
controlling
interests
Of
which
owners
of the
Parent
Of which
non-
controlling
interests
Total
-
-
(90)
155
(245)
(11,790)
(6,303)
(5,487)
(1,805)
574
(725)
(359)
(366)
(2,961)
(2,280)
(7)
(6)
195
203
(8)
(49)
(39)
(681)
(10)
-
-
-
-
-
11
11
-
11
12
(1)
(3)
(645)
(648)
3
(820)
(825)
-
-
(10)
30
-
11
-
(32)
(32)
19
(1,798)
(1,265)
(533)
5
-
Total gains/(losses)
recognized in
equity
(16,215)
(10,105)
(6,110)
33
(1,812)
555
(1,224)
(627)
(597)
(17,439)
(10,732)
(6,707)
36.2 Dividends
Dividends distributed in 2020
Dividends for 2019
Interim dividends for 2020(1)
Special dividends
Total dividends distributed in 2020
Dividends distributed in 2021
Dividends for 2020
Interim dividends for 2021(2)
Special dividends
Total dividends distributed in 2021
Amount distributed
(millions of euro)
Dividend per
share (euro)
3,334
-
-
3,334
3,638
-
-
3,638
0.328
-
-
0.328
0.358
-
-
0.358
(1) 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).
(2) Approved by the Board of Directors on November 4, 2021, and paid as from January 26, 2022 (interim dividend of €0.19 per share for a total of €1,932 million).
The dividend for 2021 is equal to €0.38 per share, for a to-
tal of €3,863 million (of which €0.19 per share, for a total of
€1,932 million, already paid as an interim dividend as from
January 26, 2022). It will be proposed to the Shareholders’
Meeting of May 19, 2022 at single call.
These consolidated financial statements do not take ac-
count of the effects of the distribution to shareholders
of the dividend for 2021, except for the liability in respect
of shareholders for the interim dividend for 2021, which
was approved by the Board of Directors on November 4,
2021 for a potential maximum of €1,932 million, and paid
as from January 26, 2022 net of the portion pertaining to
the 4,889,152 treasury shares held as at the record date of
January 25, 2021.
In 2021, the Group also paid €71 million to holders of per-
petual hybrid bonds.
354
354
Integrated Annual Report 2021
Capital management
The Group’s objectives for managing capital comprise
safeguarding the business as a going concern, creating
value for stakeholders and supporting the development of
the Group. In particular, the Group seeks to maintain an ad-
equate capitalization that enables it to achieve a satisfac-
tory return for shareholders and ensure access to external
sources of financing, in part by maintaining an adequate
rating.
In this context, the Group manages its capital structure
and adjusts that structure when changes in economic
conditions so require. There were no substantive changes
in objectives, policies or processes in 2021.
To this end, the Group constantly monitors developments
in the level of its debt in relation to equity. The situation at
December 31, 2021 and 2020 is summarized in the follow-
ing table.
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
at Dec. 31, 2021
at Dec. 31, 2020
Change
54,620
24
(2,692)
51,952
29,653
12,689
42,342
1.23
49,519
(1,359)
(2,745)
45,415
28,325
14,032
42,357
1.07
5,101
1,383
53
6,537
1,328
(1,343)
(15)
0.16
The increase in the debt/equity ratio, which measures fi-
nancial leverage, is essentially attributable to the increase
in net financial debt, mainly reflecting the funding require-
ments of investments in the year, the payment of dividends
and extraordinary transactions in non-controlling interests
connected with the acquisition of additional interests in
Enel Américas.
See note 45 for a breakdown of the individual items in the
table.
36.3 Non-controlling interests – €12,689 million
The following table presents the composition of non-con-
trolling interests by geographical segment.
Millions of euro
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
Total
Non-controlling interests
at Dec. 31, 2021
at Dec. 31, 2020
1
5,238
6,511
635
151
153
2
5,869
7,206
638
160
157
12,689
14,032
Profit/(Loss) for the year attributable to
non-controlling interests
2021
-
193
467
5
6
(3)
668
2020
-
468
477
55
6
6
1,012
The decrease in the portion attributable to non-controlling
interests mainly reflects dividends and the increase in the
percentage holding in Enel Américas.
The financial disclosure requirements of IFRS 12 for sub-
sidiaries with significant non-controlling interests are re-
ported below.
Notes to the consolidated financial statements
355
355
Millions of euro
Non-current assets
Current assets
Total assets
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
Subsidiaries
Enel Américas
Enel Chile
Endesa
28,959
9,887
43,217
21,337
9,295
41,819
4,711
(642)
3,853
4,582
170
1,386
33,670
9,245
47,070
25,919
9,465
43,205
Millions of euro
Non-current
liabilities
Current liabilities
Total liabilities
Equity
Equity attributable
to owners of the
Parent
Non-controlling
interests
at Dec.
31, 2021
at Dec.
31, 2020
at Dec.
31, 2021
at Dec.
31, 2020
at Dec.
31, 2021
at Dec.
31, 2020
at Dec.
31, 2021
at Dec.
31, 2020
at Dec.
31, 2021
at Dec.
31, 2020
at Dec.
31, 2021
at Dec.
31, 2020
Subsidiaries
Enel Américas
11,320
8,827
6,073
5,495
17,393
14,322
16,277
11,597
11,556
6,643
4,721
4,954
Enel Chile
Endesa
3,356
3,027
1,178
1,066
4,534
4,093
4,711
5,372
2,921
3,326
1,790
2,046
15,196
12,869
11,449
7,101
26,645
19,970
20,425
23,235
15,187
17,366
5,238
5,869
Millions of euro
Total revenue(1)
Pre-tax profit/(loss)
Profit/(Loss) from
continuing operations
Profit/(Loss) attributable
to owners of the Parent
Profit/(Loss) attributable
to non-controlling
interests
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Subsidiaries
Enel Américas(2)
13,581
10,437
1,516
Enel Chile
Endesa
3,114
2,816
20,217
16,614
128
769
1,187
(133)
1,965
757
104
589
738
(40)
1,551
337
57
396
274
(25)
1,082
420
47
193
464
(15)
469
(1)
In order to ensure a uniform comparison of the data, revenue for 2020 was restated by excluding the part of income from commodity contracts, in line with
the presentation of revenue in the notes to the financial statements.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to the consolidated financial statements.
356
356
Integrated Annual Report 2021
37. Borrowings
Millions of euro
Long-term borrowings
Short-term borrowings
Total
For more information on the nature of borrowings, see
note 46.2 “Financial liabilities by category”.
38. Employee benefits – €2,724 million
The Group provides its employees with a variety of bene-
fits, including deferred compensation benefits, additional
months’ pay for having reached age limits or eligibility for
old-age pension, loyalty bonuses for achievement of sen-
iority milestones, supplemental retirement and health-
care plans, residential electricity discounts and similar
benefits. More specifically:
• for Italy, the item “Pension benefits” regards estimated
accruals made to cover benefits due under the supple-
mental retirement schemes of retired executives and
the benefits due to personnel under law or contract
at the time the employment relationship is terminated.
For the foreign companies, the item refers to post-em-
ployment benefits, of which the most material regard
the pension benefit schemes of Endesa in Spain, which
break down into three types that differ on the basis of
employee seniority and company. In general, under the
framework agreement of October 25, 2000, employees
participate in a specific defined contribution pension
plan and, in cases of disability or death of employees
in service, a defined benefit plan which is covered by
appropriate insurance policies. In addition, the group
has two other limited-enrollment plans (i) for current
and retired Endesa employees covered by the elec-
tricity industry collective bargaining agreement prior
to the changes introduced with the framework agree-
ment noted earlier and (ii) for employees of the Catalan
Non-current
Current
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
54,500
49,519
-
-
54,500
49,519
4,031
13,306
17,337
3,168
6,345
9,513
companies merged in the past (Fecsa/Enher/HidroEm-
pordà). Both are defined benefit plans and benefits are
fully ensured, with the exception of the former plan for
benefits in the event of the death of a retired employ-
ee. Finally, the Brazilian companies have also established
defined benefit plans;
• the item “Electricity discount” comprises benefits re-
garding electricity supply associated in particular with
foreign companies;
• the item “Health insurance” refers to benefits for cur-
rent or retired employees covering medical expenses;
• “Other benefits” mainly regard the loyalty bonus, which
is adopted in various countries and for Italy is repre-
sented by the estimated liability for the benefit entitling
employees covered by the electricity workers national
collective bargaining agreement to a bonus for achieve-
ment of seniority milestones (25th and 35th year of ser-
vice). It also includes other incentive plans, which pro-
vide for the award to certain Company managers of a
monetary bonus subject to specified conditions.
The following table reports changes in the defined bene-
fit obligation for post-employment and other long-term
employee benefits at December 31, 2021, and December
31, 2020, respectively, as well as a reconciliation of that
obligation with the actuarial liability.
Notes to the consolidated financial statements
357
357
Millions of euro
2021
2020
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
CHANGES IN ACTUARIAL
OBLIGATION
Actuarial obligation at the
start of the year
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
4,408
403
217
222
5,250
5,691
904
263
242
7,100
17
214
192
2
3
-
(664)
(14)
452
(17)
(4)
14
-
-
31
-
-
(1)
-
-
4
7
(6)
6
(9)
-
-
(1)
-
-
(379)
(15)
(12)
7
-
1
-
-
-
28
3
-
(1)
-
(3)
-
-
-
-
(58)
(1)
-
51
227
186
18
249
45
(673)
105
474
(20)
(4)
12
-
-
466
(24)
(584)
(1,206)
-
1
3
5
12
19
(21)
(504)
-
(1)
-
-
4
7
6
(2)
(7)
(13)
-
(30)
-
-
38
4
1
2
(8)
(1)
-
63
265
64
124
430
(542)
(584)
(7)
(1,244)
-
-
-
1
(464)
(358)
(16)
(11)
(48)
(433)
7
-
5
-
2
-
-
-
(1)
-
6
-
4,240
410
206
190
5,046
4,408
403
217
222
5,250
Fair value of plan assets at the
start of the year
2,299
2,299
3,374
-
-
-
-
15
-
(15)
-
-
-
-
-
-
-
-
-
-
-
-
-
12
-
(12)
-
-
-
-
-
-
-
-
-
(28)
(434)
-
-
-
-
28
-
-
-
-
-
-
-
-
-
-
121
38
17
307
-
-
-
160
85
(782)
342
1
(358)
(523)
-
2,348
2,299
13
1
12
-
-
26
45
3
(24)
(11)
-
13
-
-
-
-
16
-
(16)
-
-
-
-
-
-
-
-
-
-
-
-
-
11
-
(11)
-
-
-
-
-
-
-
-
-
-
-
-
-
21
-
(21)
-
-
-
-
-
-
-
-
-
3,374
160
85
(782)
390
1
(406)
(523)
-
2,299
45
3
(24)
(11)
-
13
1,918
410
206
190
2,724
2,122
403
217
222
2,964
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 (C)
Net liability in statement of
financial position (A-B+C)
121
38
17
252
-
(379)
-
-
2,348
13
1
12
-
-
26
358
358
Integrated Annual Report 2021
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
2021
2020
9
107
(4)
22
1
135
(509)
108
(61)
31
(9)
(440)
2021
2020
(38)
(13)
12
(1)
(40)
(85)
626
(24)
(1)
516
The change in the cost recognized in profit or loss was
equal to €575 million. The impact on the income state-
ment is, therefore, greater than in the previous year, due
mainly to the signing in 2020 of the 5th Endesa Collective
Bargaining Agreement, which modified the electricity dis-
count benefit for current and former employees, with the
consequent reversal of the associated provision.
The liability recognized in the statement of financial posi-
tion at the end of the year is reported net of the fair value
of plan assets, amounting to €2,348 million at December
31, 2021. Those assets, which are entirely in Spain and Bra-
zil, break down as follows.
Investments quoted in active markets
Equity instruments
Fixed-income securities
Investment property
Other
Unquoted investments
Assets held by insurance undertakings
Other
Total
at Dec. 31,
2021
at Dec. 31,
2020
8%
54%
3%
-
-
35%
100%
7%
63%
2%
-
-
28%
100%
The main actuarial assumptions used to calculate the lia-
bilities in respect of employee benefits and the plan assets,
which are consistent with those used the previous year, are
set out in the following table.
Italy
Iberia Latin America
2021
Other
countries
Italy
Iberia Latin America
2020
Other
countries
Discount rate
0.00%-0.80% 0.00%-1.16% 5.60%-9.67% 0.80%-8.40% 0.00%-0.50% 0.00%-0.61%
2.55%-7.95% 0.75%-6.30%
Inflation rate
Rate of wage
increases
Rate of increase in
healthcare costs
Expected rate of
return on plan assets
1.50%
2.20% 3.00% -8.00% 1.50%-4.01%
0.50%
1.00% 3.00%-4.85% 0.75%-3.83%
0.80%-1.80%
2.20% 3.80%-8.00% 2.50%-10.00% 0.50%-2.50%
1.00% 3.80%-5.04% 2.25%-3.83%
2.50%
4.40%
7.12%-8.00%
-
0.57% 9.30%-9.46%
-
-
1.50%
3.20%
7.12%-8.00%
-
0.57% 6.08%-7.33%
-
-
Notes to the consolidated financial statements
359
359
The following table reports the outcome of a sensitivity
analysis that demonstrates the effects on the defined ben-
efit obligation of changes reasonably possible at the end
of the year in the actuarial assumptions used in estimating
the obligation.
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
at Dec. 31, 2021
at Dec. 31, 2020
225
(184)
2
28
14
14
-
98
27
(30)
(4)
(2)
(3)
(3)
-
(3)
11
(14)
(2)
9
(2)
(2)
20
14
-
(10)
(6)
(2)
-
(5)
1
(5)
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)
-
(34)
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% in
healthcare costs
Increase of 1 year in life
expectancy of active
and retired employees
The sensitivity analysis used an approach that extrapolates
the effect on the defined benefit obligation of reasonable
changes in an individual actuarial assumption, leaving the
other assumptions unchanged.
The contributions expected to be paid into defined benefit
plans in the subsequent year amount to €196 million.
The following table reports expected benefit payments in
the coming years for defined benefit plans.
Millions of euro
Within 1 year
In 1-2 years
In 2-5 years
More than 5 years
at Dec. 31, 2021
at Dec. 31, 2020
392
364
1,077
1,714
366
337
971
1,534
Expected payments are increasing in general. This is main-
ly due to Brazil, where forecasts have been impacted by
rising life expectancy and a significant increase in expect-
ed inflation. The amount of future payments shown in the
table, not being subject to discounting, is significantly af-
fected by this increase. Finally, it should be noted that the
liability does not increase in the same manner, as the in-
flationary effects are offset by the effects of discounting.
360
360
Integrated Annual Report 2021
39. Provisions for risks and charges – €8,323 million
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Non-current
Current
Total Non-current
Current
Total
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
the energy transition
TOTAL
666
3,066
790
-
267
821
5,610
435
1,152
7,197
Millions of euro
Accrual Reversal Utilization Discounting
-
203
44
32
28
347
654
293
179
1,126
Provisions
for site
retirement
and
restoration
666
3,269
834
32
295
1,168
6,264
728
1,331
8,323
596
2,017
734
-
288
757
4,392
623
759
-
99
86
42
43
343
613
444
-
596
2,116
820
42
331
1,100
5,005
1,067
759
5,774
1,057
6,831
Change in the
consolidation
scope
Exchange
differences
Other
changes
Reclassifications
of liabilities
included in
disposal groups
held for sale
at Dec. 31,
2020
Provision for litigation,
risks and other charges:
- nuclear
decommissioning
- site retirement, removal
and restoration
596
-
-
-
2,116
455
(13)
(87)
- litigation
820
213
(113)
(124)
- environmental
certificates
- taxes and duties
- other
Total
Provision for early
retirement incentives
and other restructuring
plans
Provision for
restructuring programs
connected with the
energy transition
42
331
15
64
1,100
338
(4)
(41)
(95)
5,005
1,085
(266)
(21)
(21)
(162)
(415)
1,067
16
(15)
(361)
759
687
(18)
(95)
TOTAL
6,831
1,788
(299)
(871)
Nuclear decommissioning provision
At December 31, 2021, the provision reflected solely the
costs that would be incurred at the time of decommis-
sioning of nuclear plants by Enresa, a Spanish public entity
responsible for such activities in accordance with Royal
Decree 1349/2003 and Law 24/2005.
In general, the costs are quantified on the basis of a stand-
ard contract between Enresa and the electricity compa-
nies approved by the Ministry for the Economy in Septem-
ber 2001, which regulates the retirement and closing of
nuclear power plants. The time horizon envisaged, three
years, corresponds to the period from the termination of
power generation to the transfer of plant management to
at Dec. 31,
2021
-
-
-
-
-
(6)
(6)
-
-
666
3,269
834
32
295
1,168
6,264
728
1,331
-
(14)
(3)
-
-
(3)
(20)
-
2
(3)
-
(44)
(11)
(56)
-
21
(1)
(17)
(21)
(52)
(6)
8,323
1
3
44
-
6
14
68
-
16
84
69
799
-
-
-
(7)
861
-
-
861
-
8
-
-
-
-
8
-
-
8
Enresa (so-called “post-operational costs“) and takes ac-
count, among the various assumptions used to estimate
the amount, of the quantity of unused nuclear fuel expect-
ed at the date of closure of each of the Spanish nucle-
ar plants on the basis of the provisions of the concession
agreement.
Site retirement, removal and restoration
provision
This provision represents the present value of the esti-
mated cost for the retirement and removal of non-nuclear
plants where there is a legal or constructive obligation to
Notes to the consolidated financial statements
361
361
do so. The provision mainly regarded the Endesa Group
and Enel Produzione. The change in the provision in 2021
was mainly linked to the redetermination of the future re-
tirement costs of certain plants in Iberia and Italy and an
increase in provisions for retirement costs resulting from
the Group’s decision to promote the termination of gener-
ation from coal-fired power plants and reconvert plans as
part of the energy transition.
The following table summarizes the temporal breakdown
of payments connected with the site retirement, removal
and restoration provision.
Millions of euro
Within 1 year
In 1-5 years
More than 5 years
Total
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
prior years. The balance for litigation mainly regards the
companies in Spain (€181 million), Italy (€133 million) and
Latin America (€497 million).
The increase compared with the previous year, equal to
€14 million, mainly reflects the increase in the provision
in Italy, Iberia and Brazil, reflecting provisions for new dis-
putes, offset by an increase in uses in Peru following the
resolution of a number of disputes.
Provision for environmental certificates
The provision for environmental certificates covers costs
in respect of shortfalls in the environmental certificates
needed for compliance with national or supranational en-
vironmental protection requirements and mainly regards
Enel Energía and Endesa Energía.
Provision for taxes and duties
The provision for taxes and duties covers the estimated
liability deriving from tax disputes concerning direct and
indirect taxes.
The balance of the provision also includes the provision
for current and potential disputes concerning local prop-
erty tax (whether the Imposta Comunale sugli Immobili
(ICI) or the Imposta Municipale Unica (IMU)) in Italy. In Ita-
ly, the Group has taken due account of developments in
land registry regulations (which with effect from January
1, 2016 excluded machinery, devices, equipment and oth-
er plant specific to a production process from the calcu-
lation of the imputed rent for buildings classified in land
362
362
Integrated Annual Report 2021
Payments by time bracket
(nominal value)
Discounted amount
652
929
2,671
4,252
651
896
1,722
3,269
registry group D, which includes generation plants) in es-
timating the liability for such taxes, both for the purposes
of quantifying the probable risk associated with pending
litigation and generating a reasonable valuation of prob-
able future charges on positions that have not yet been
assessed by the Revenue Agency and municipalities.
Other provisions
Other provisions cover various risks and charges, mainly
in connection with regulatory disputes and disputes with
local authorities regarding various duties and fees or oth-
er charges.
The increase of €68 million in other provisions is, in ad-
dition to provisions for new insurance indemnities, mainly
attributable to Enel Global Trading for provisions recog-
nized by the company in view of a possible adjustment of
the gas contract price to the market price by the supplier.
Provision for early retirement incentives and
other restructuring plans
The provision for early retirement incentives and other
restructuring plans includes the estimated charges relat-
ed to binding agreements for the voluntary termination
of employment contracts in response to organizational
needs. The reduction of €339 million for the year main-
ly reflects uses of provisions for incentives established in
Spain (Acuerdo de Salida Voluntaria) and Italy in previous
years to cover the early termination of employment for
certain employees.
Provision for restructuring programs
connected with the energy transition
Enel, in its role as a leader of the energy transition, has
placed decarbonization and growth of renewables around
the world at the center of its strategy.
In this context, Enel has begun restructuring the activi-
ties associated with the energy-transition process, which
involves thermal generation plants in all the geographi-
cal 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 sustainable plans
based on redeployment programs, with major upskilling
and reskilling plans and voluntary individual early retire-
ment agreements. 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-consid-
ered decisions at every level within the Group.
A provision was therefore established in 2020 for restruc-
turing programs, which at December 31, 2021 amounted
to €1,331 million, which is mainly attributable to Spain and
Italy, and represents the estimated costs that the Group
will incur following the acceleration of the energy tran-
sition, for all direct and indirect activities related to the
review of processes and operating models and the roles
and skills of employees.
40. Other non-current financial liabilities – €120 million
Millions of euro
Other non-current financial liabilities
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
120
120
-
-
120
120
-
-
“Other non-current financial liabilities” report the non-cur-
rent portion of liabilities in respect of the Spanish electri-
cal system deficit in the amount of €120 million (€0 million
at December 31, 2020), which are included in net financial
debt.
41. Other non-current liabilities – €4,525 million
Millions of euro
Accrued operating expenses and deferred income
Other items
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
498
4,027
4,525
500
(2)
-0.4%
2,958
1,069
36.1%
3,458
1,067
30.9%
The change in “Other items” reflected an increase of €42
million in amounts due to institutional market operators,
an increase of €156 million in liabilities for tax partnerships
beyond 12 months in the United States and an increase in
liabilities relating to the outcome of the PIS/COFINS dis-
pute in Brazil (already discussed under “Other non-current
assets”) in the amount of €766 million.
Notes to the consolidated financial statements
363
363
42. Other current liabilities – €12,959 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, 2021
at Dec. 31, 2020
Change
1,950
2,961
471
1,274
205
45
4
395
2,191
3,463
12,959
1,481
4,012
438
886
207
53
1
346
2,135
2,092
469
31.7%
(1,051)
-26.2%
33
388
(2)
(8)
3
49
56
7.5%
43.8%
-1.0%
-15.1%
-
14.2%
2.6%
1,371
65.5%
11,651
1,308
11.2%
“Amounts due to customers“ include €1,169 million (€822
million at December 31, 2020) in security deposits related
primarily to amounts received from customers in Spain as
part of electricity 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 liabilities given that the Parent does not have an
unconditional right to defer repayment beyond 12 months.
Amounts due to institutional market operators include
liabilities arising from the application of equalization
mechanisms to electricity purchases on the Italian market
amounting to €1,976 million (€2,444 million at December
31, 2020), on the Spanish market amounting to €938 mil-
lion (€1,538 million at December 31, 2020) and on the Latin
American market amounting to €47 million (€30 million at
December 31, 2020).
The increase in “Other” liabilities is mainly attributable to
Italy in respect of expired derivatives on energy commod-
ities.
The increase in “Other tax liabilities” is mainly attributable
to Italy following the start in 2021 of the Group settlement
mechanism for VAT obligations by the Parent, Enel SpA.
43. Trade payables – €16,959 million
The item amounted to €16,959 million (€12,859 million at
December 31, 2020) and includes payables in respect of
electricity supplies, fuel, materials, equipment associated
with tenders, and other services.
More specifically, trade payables falling due in less than 12
months amounted to €16,865 million (€12,282 million at
December 31, 2020), while those falling due in more than
12 months amounted to €94 million (€577 million at De-
cember 31, 2020).
364
364
Integrated Annual Report 2021
44. Other current financial liabilities – €625 million
Millions of euro
Accrued financial expense and deferred financial income
Other items
Total
at Dec. 31, 2021
at Dec. 31, 2020
Change
539
86
625
535
87
622
4
(1)
3
0.7%
-1.1%
0.5%
Other current financial liabilities are virtually unchanged on
December 31, 2020.
Other items mainly regard liabilities for accrued interest.
45. Net financial position and long-term financial assets and securities –
€51,952 million
The following table shows the net financial position and
long-term financial assets and securities on the basis of
the items on the statement of consolidated financial po-
sition.
Millions of euro
Long-term borrowings
Other non-current financial borrowings(1)
Short-term borrowings
Other current financial borrowings(2)
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, 2021 at Dec. 31, 2020
Change
37
40
37
37
28.1
29.1
34
54,500
120
13,306
12
4,031
(2,692)
(8,467)
(8,858)
51,952
49,519
4,981
10.1%
-
120
6,345
6,961
5
3,168
(2,745)
7
863
53
-
-
-
27.2%
1.9%
(4,971)
(3,496)
-70.3%
(5,906)
(2,952)
-50.0%
45,415
6,537
14.4%
(1) The item “Other non-current financial borrowings” is represented by “Other non-current financial liabilities” in the statement of financial position.
(2) The item “Other current financial borrowings” is included under “Other current financial liabilities” in the statement of financial position.
The net financial debt of the Enel Group at December 31,
2021 and December 31, 2020 is reported below in accord-
ance with Guideline 39, issued on March 4, 2021, by ESMA,
applicable as from May 5, 2021, and with warning notice
no. 5/2021 issued by CONSOB on April 29, 2021, recon-
ciled with net financial debt as provided for in the pres-
entation methods of the Enel Group.
The references to the CESR Recommendations contained
in previous CONSOB communications shall be considered
to have been replaced by references to the ESMA Guide-
line cited above, including the references in Communica-
tion no. DEM/6064293 of July 28, 2006 regarding the net
financial position.
Notes to the consolidated financial statements
365
365
Millions of euro
Liquidity
Cash and cash equivalents on hand
Bank and post office deposits
Liquid assets
Cash equivalents
Securities
Short-term loan assets
Current portion of long-term loan assets
Other current financial assets
Liquidity
Current financial debt
Bank debt
Commercial paper
Other short-term borrowings(1)
Current financial debt (including debt instruments)
Current portion of long-term bank borrowings
Bonds issued (current portion)
Other borrowings (current portion)
Non-current financial debt (current portion)
Current financial debt
Net current financial debt
Non-current financial debt
Bank borrowings
Other borrowings(2)
Non-current financial debt (excluding current portion and debt
instruments)
Bonds
Trade payables and other non-interest-bearing non-current liabilities with a
significant financing component
Non-current financial debt
Net financial debt as per CONSOB instructions
Long-term financial assets and securities
NET FINANCIAL DEBT
at Dec. 31, 2021
at Dec. 31, 2020
Change
8
8,118
8,126
732
88
6,841
1,538
8,467
17,325
(1,329)
(10,708)
(1,281)
(13,318)
(989)
(2,700)
(342)
(4,031)
(17,349)
(24)
(12,579)
(2,942)
(15,521)
(39,099)
-
(54,620)
(54,644)
2,692
(51,952)
42
(34)
-81.0%
5,699
5,741
165
67
3,476
1,428
2,419
42.4%
2,385
41.5%
567
21
-
31.3%
3,365
96.8%
110
7.7%
4,971
3,496
70.3%
10,877
6,448
59.3%
(711)
(618)
-86.9%
(4,854)
(5,854)
-
(785)
(496)
-63.2%
(6,350)
(6,968)
-
(1,369)
380
27.8%
(1,412)
(1,288)
-91.2%
(387)
45
11.6%
(3,168)
(863)
-27.2%
(9,518)
(7,831)
-82.3%
1,359
(1,383)
-
(8,663)
(3,916)
-45.2%
(2,499)
(443)
-17.7%
(11,162)
(4,359)
-39.1%
(38,357)
(742)
-1.9%
-
-
-
(49,519)
(5,101)
-10.3%
(48,160)
(6,484)
-13.5%
2,745
(53)
-1.9%
(45,415)
(6,537)
-14.4%
(1)
(2)
Includes current financial borrowings included in “Other current financial liabilities” in the statement of financial position.
Includes other non-current financial borrowings presented under “Other non-current financial liabilities” in the statement of financial position.
This statement of the net financial position does not in-
clude financial assets and liabilities in respect of deriva-
tives, since derivative contracts, even if not designated as
hedges for hedge accounting purposes, are in any case
entered into by the Group for hedging purposes.
At December 31, 2021, those financial assets and liabili-
ties are reported separately in the statement of financial
position under the following items: “Non-current financial
derivative assets” in the amount of €2,772 million (€1,236
million at December 31, 2020), “Current financial derivative
assets” in the amount of €22,791 million (€3,471 million at
December 31, 2020), “Non-current financial derivative lia-
bilities” in the amount of €3,339 million (€3,606 million at
31 December, 2020) and “Current financial derivative lia-
bilities” in the amount of €24,607 million (€3,531 million at
December 31, 2020).
366
366
Integrated Annual Report 2021
Financial instruments
46. Financial instruments by category
This note provides disclosures necessary for users to
assess the significance of financial instruments for the
Group’s financial position and performance.
46.1 Financial assets by category
The following table reports the carrying amount for each
category of financial asset provided for under IFRS 9, bro-
ken down into current and non-current financial assets,
showing hedging derivatives and derivatives measured 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
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
46.1.1
46.1.2
46.1.3
46.1.3
46.1.4
46.1.4
Non-current
Current
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
4,092
443
277
2,662
2,939
61
2,434
2,495
9,969
3,966
34,671
22,967
448
87
67
52
19,664
2,087
2,139
50
1,134
1,184
7,737
141
19,805
-
3,127
3,127
57,690
2,765
301
3,066
28
678
706
26,806
For more information on the recognition and classification
of current and non-current derivative assets, please see
note 49 “Derivatives and hedge accounting”.
For more information on fair value measurement, see note
50 “Assets and liabilities measured at fair value”.
46.1.1 Financial assets measured at amortized cost
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,
2021
at Dec. 31,
2020
Notes
at Dec. 31,
2021
at Dec. 31,
2020
33
28.1
28
34
33
29.1
29.1
29.1
29
-
1,301
-
-
-
1,200
-
-
2,289
2,337
260
242
243
186
4,092
3,966
8,759
14,775
1,538
6,485
315
64
2,735
34,671
5,702
10,846
1,331
3,223
253
9
1,603
22,967
Notes to the consolidated financial statements
367
367
Impairment of financial assets at amortized cost
Financial assets measured at amortized cost amounted to
€38,763 million at December 31, 2021 (€26,933 million at
December 31, 2020) and are recognized net of loss allow-
ances for expected credit losses totaling €4,051 million at
December 31, 2021 (€3,624 million at the end of the pre-
vious year).
The Group mainly has the following types of financial as-
sets measured at amortized cost subject to impairment
testing:
• cash and cash equivalents;
• trade receivables and contract assets;
• loan assets;
• other financial assets.
While cash and cash equivalents are also subject to the
impairment requirements of IFRS 9, the identified impair-
ment loss was immaterial.
The expected credit loss (ECL) – determined using proba-
bility of default (PD), loss given default (LGD) and exposure
at default (EAD) – is the difference between all contractual
cash flows that are due in accordance with the contract and
all cash flows that are expected to be received (i.e., all short-
falls) discounted at the original effective interest rate (EIR).
For calculating ECL, the Group applies two different ap-
proaches:
• the general approach, for financial assets other than
trade receivables, contract assets and lease receivables.
This approach, based on an assessment of any signif-
icant increase in credit risk since initial recognition, is
performed comparing PD at origination with PD at the
reporting date, at each reporting date.
Then, based on the results of the assessment, a loss al-
lowance is recognized based on 12-month ECL or life-
time ECL (i.e., staging):
– 12-month ECL, for financial assets for which there
has not been a significant increase in credit risk since
initial recognition;
– lifetime ECL, for financial assets for which there has
been a significant increase in credit risk or which are
credit impaired (i.e., defaulted based on past due in-
formation);
• the simplified approach, for trade receivables, contract
assets and lease receivables with or without a signifi-
cant financing component, based on lifetime ECL with-
out tracking changes in credit risk.
A forward-looking adjustment can be applied considering
qualitative and quantitative information in order to reflect
future events and macroeconomic developments that
could impact the risk associated with the portfolio or fi-
nancial instrument.
Depending on the nature of the financial assets and the
credit risk information available, the assessment of the in-
crease in credit risk can be performed on:
• an individual basis, if the receivables are individually sig-
nificant and for all receivables which have been individ-
ually identified for impairment based on reasonable and
supportable information;
• a collective basis, if no reasonable and supportable infor-
mation is available without undue cost or effort to meas-
ure expected credit losses on an individual instrument
basis.
When there is no reasonable expectation of recovering a
financial asset in its entirety or a portion thereof, the gross
carrying amount of the financial asset shall be reduced.
A write-off represents a derecognition event (e.g., the right
to cash flows is legally or contractually extinguished, trans-
ferred or expired).
The following table reports expected credit losses on fi-
nancial assets measured at amortized cost on the basis of
the general simplified approach.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Cash and cash equivalents
Trade receivables
Loan assets
Other financial assets at amortized cost
Total
Loss
allowance
for
expected
credit losses
Loss
allowance
for
expected
credit losses
Total
Gross
amount
Total
-
8,759
5,702
-
5,702
3,663
16,076
15,333
3,287
12,046
234
10,627
154
3,301
7,352
2,170
208
129
7,144
2,041
Gross
amount
8,759
19,739
10,861
3,455
42,814
4,051
38,763
30,557
3,624
26,933
To measure expected losses, the Group assesses trade
receivables and contract assets with the simplified ap-
proach, both on an individual basis (e.g., government enti-
ties, authorities, financial counterparties, wholesale sellers,
traders and large companies, etc.) and a collective basis
(e.g., retail customers).
368
368
Integrated Annual Report 2021
In the case of individual assessments, PD is generally ob-
tained from external providers.
Otherwise, in the case of collective assessments, trade re-
ceivables are grouped on the basis of their shared credit risk
characteristics and information on past due positions, con-
sidering a specific definition of default.
Based on each business and local regulatory framework, as
well as differences between customer portfolios, including
their default and recovery rates (comprising expectations
for recovery beyond 90 days):
• the Group mainly defines a defaulted position as one that
is 180 days past due. Accordingly, beyond this time lim-
it, trade receivables are presumed to be credit impaired;
and
• specific clusters are defined on the basis of specific mar-
kets, business and risk characteristics.
Contract assets substantially have the same risk character-
Millions of euro
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
Opening balance at Jan. 1, 2021
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2021
The following table reports changes in the loss allowance
for expected credit losses on trade receivables in accord-
ance with the simplified approach.
Millions of euro
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
Opening balance at Jan. 1, 2021
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2021
istics as trade receivables for the same types of contracts.
In order to measure ECL for trade receivables on a collective
basis, as well as for contract assets, the Group uses the fol-
lowing assumptions regarding the ECL parameters:
• PD, assumed equal to the average default rate, is calcu-
lated by cluster and considering historical data from at
least 24 months;
• LGD is a function of the recovery rates for each cluster,
discounted using the effective interest rate; and
• EAD is estimated as equal to the carrying amount at the
reporting date net of cash deposits, including invoices is-
sued but not past due and invoices to be issued.
The following table reports changes in the loss allowance for
expected credit losses on loan assets in accordance with
the general approach.
ECL 12-month allowance
ECL lifetime allowance
78
354
-
(4)
(363)
65
65
-
-
(25)
25
65
153
8
-
(4)
(14)
143
143
9
-
(9)
26
169
2,980
1,505
(819)
(194)
(185)
3,287
3,287
1,361
(709)
(258)
(18)
3,663
Notes to the consolidated financial statements
369
369
The following table reports changes in the loss allowance
for expected credit losses on other financial assets at am-
ortized cost in accordance with the simplified approach.
Millions of euro
Opening balance at Jan. 1, 2020
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2020
Opening balance at Jan. 1, 2021
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2021
ECL lifetime allowance
159
22
-
(23)
(29)
129
129
87
-
(21)
(41)
154
Note 47 “Risk management” provides additional informa-
tion on the exposure to credit risk and expected losses.
46.1.2 Financial assets at fair value through other
comprehensive income
through other comprehensive income by nature, broken
down into current and non-current financial assets.
The following table shows financial assets at fair value
Millions of euro
Non-current
Current
Notes
28
28.1
at Dec. 31,
2021
at Dec. 31,
2020 Notes
at Dec. 31,
2021
at Dec. 31,
2020
40
403
443
40
408
448
29.1
-
87
87
-
67
67
Non-current
Current
64
6
-
(21)
(9)
40
40
2
-
-
(2)
40
-
-
-
-
-
-
-
-
-
-
-
-
Investments in other companies at FVOCI
Securities
Total
Changes in financial assets at FVOCI
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
Opening balance at Jan. 1, 2021
Purchases
Sales
Changes in fair value through OCI
Other changes
Closing balance at Dec. 31, 2021
370
370
Integrated Annual Report 2021
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
Opening balance at Jan. 1, 2021
Purchases
Sales
Changes in fair value through OCI
Reclassifications
Other changes
Closing balance at Dec. 31, 2021
Non-current
Current
416
124
(54)
(3)
(75)
-
408
408
165
(87)
2
(85)
-
403
61
-
-
-
75
(69)
67
67
-
-
-
85
(65)
87
46.1.3 Financial assets at fair value through profit or loss
The following table shows financial assets at fair value
through profit or loss by nature, broken down into current
and non-current financial assets.
Millions of euro
Non-current
Current
Derivatives at FVTPL
Investments in liquid assets
Financial assets at FVTPL
Securities
Equity investments in other companies at FVTPL
Financial assets from service concession arrangements at FVTPL
Total
Notes
49
28
28
46.1.4 Derivative financial assets designated as
hedging instruments
For more information on derivative financial assets, please
see note 49 “Derivatives and hedge accounting”.
at Dec. 31,
2021
at Dec. 31,
2020
Notes
49
34
52
-
- 29, 29.1
29.1
-
30
2,057
2,139
at Dec. 31,
2021
at Dec. 31,
2020
19,664
99
41
1
-
-
2,765
204
97
-
-
-
19,805
3,066
277
-
-
-
32
2,630
2,939
Notes to the consolidated financial statements
371
371
46.2 Financial liabilities by category
The following table shows the carrying amount for each
category of financial liability provided for under IFRS 9,
broken down into current and non-current financial liabil-
ities, showing hedging derivatives and derivatives meas-
ured at fair value through profit or loss separately.
Millions of euro
Non-current
Current
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
Notes
46.2.1
46.4
46.4
46.4
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
54,914
50,254
42,330
29,598
169
169
5
3,165
3,170
29
29
-
3,577
3,577
19,696
19,696
-
4,911
4,911
2,887
2,887
-
644
644
TOTAL
58,253
53,860
66,937
33,129
For more information on fair value measurement, please
see note 50 “Assets and liabilities measured at fair value”.
46.2.1 Financial liabilities measured at amortized cost
The following table shows financial liabilities at amortized
cost by nature, broken down into current and non-current
financial liabilities.
Millions of euro
Non-current
Current
Long-term borrowings
Short-term borrowings
Trade payables
Other financial liabilities
Total
Notes
46.3
43
at Dec. 31,
2021
at Dec. 31,
2020 Notes
at Dec. 31,
2021
at Dec. 31,
2020
54,500
49,519
46.3
-
94
320
-
46.3
43
577
158
4,031
13,306
16,865
8,128
3,168
6,345
12,282
7,803
54,914
50,254
42,330
29,598
372
372
Integrated Annual Report 2021
46.3 Borrowings
46.3.1 Long-term borrowings (including the portion
falling due within 12 months) – €58,531 million
The following table reports the nominal value, carrying
Long-term borrowings by category and type of interest rate(1)
amount and fair value of long-term borrowings including
the portion falling due within 12 months.
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
2021-
2020
Bonds:
at Dec. 31, 2021
at Dec. 31, 2020
- listed, fixed rate
27,857
27,413
2,119
25,294
30,279
23,629
23,052
1,041
22,011
27,470
4,361
- listed, floating
rate
- unlisted, fixed
rate
- unlisted, floating
rate
2,574
2,557
434
2,123
2,545
2,817
2,800
260
2,540
2,937
(243)
11,293
11,207
622
622
50
97
11,157
12,670
13,262
13,184
-
13,184
15,753
(1,977)
525
728
733
733
111
622
828
(111)
Total bonds
42,346
41,799
2,700
39,099
46,222
40,441
39,769
1,412
38,357 46,988
2,030
Bank borrowings:
- fixed rate
2,414
2,405
- floating rate
10,139
10,109
238
751
2,167
2,298
790
782
9,358
10,037
9,278
9,250
254
1,115
528
833
8,135
9,259
1,623
859
- use of revolving
credit lines
Total bank
borrowings
Leases:
1,054
1,054
-
1,054
1,054
-
-
-
-
-
1,054
13,607
13,568
989
12,579
13,389
10,068
10,032
1,369
8,663
10,092
3,536
- fixed rate
2,477
2,477
- floating rate
70
70
Total leases
2,547
2,547
242
17
259
69
14
83
2,235
2,477
1,979
1,979
53
70
89
89
2,288
2,547
2,068
2,068
526
8
569
25
534
594
607
191
798
639
179
818
225
22
247
74
66
1,754
1,979
67
89
1,821
2,068
565
113
630
160
498
(19)
479
(44)
(157)
140
678
790
(201)
571
34
605
595
22
617
44,612
44,097
2,718
41,379
48,293
40,267
39,636
1,594
38,042 46,665
4,461
14,493
14,434
1,313
13,121
14,459
13,108
13,051
1,574
11,477
13,273
1,383
TOTAL
59,105
58,531
4,031
54,500
62,752
53,375
52,687
3,168
49,519 59,938
5,844
(1) Does not include other non-current financial borrowings reported under “Other non-current financial liabilities” in the statement of financial position that
are included in long-term financial debt.
Notes to the consolidated financial statements
373
373
Other non-bank
borrowings:
- fixed rate
- floating rate
Total other non-
bank borrowings
Total fixed-rate
borrowings
Total floating-rate
borrowings
The table below reports long-term financial debt by cur-
rency and interest rate.
Long-term financial debt by currency and interest rate(1)
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
Current
average
nominal
interest rate
Current
effective
interest
rate
at Dec. 31, 2021
at Dec. 31, 2020
at Dec. 31, 2021
at Dec. 31, 2020
32,041
32,387
25,581
26,089
17,518
17,629
18,500
18,589
3,901
1,341
1,720
343
423
415
427
402
3,976
1,341
1,753
344
428
415
427
405
3,955
1,283
1,832
328
368
388
281
171
3,998
1,283
1,864
329
374
388
286
175
1.6%
4.2%
5.0%
6.5%
8.8%
1.8%
5.2%
5.2%
6.8%
1.9%
4.3%
5.2%
6.5%
8.9%
1.8%
5.2%
5.2%
7.3%
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
26,490
26,718
27,106
27,286
TOTAL
58,531
59,105
52,687
53,375
(1) Does not include other non-current financial borrowings reported under “Other non-current financial liabilities” in the statement of financial position.
Long-term financial debt denominated in currencies other
than the euro decreased by €616 million, largely attributa-
ble to the changes in debt denominated in US dollars.
Change in the nominal value of long-term debt(1)
Millions of euro
Nominal value Repayments
Change in the
consolidation
scope
New
Exchange
borrowings Other changes
differences Nominal value
Bonds
Borrowings
- of which leases
Total financial debt
at Dec. 31,
2020
40,441
12,934
2,068
(9,049)
(2,272)
(165)
53,375
(11,321)
-
183
2
183
10,368
5,527
526
15,895
(900)
(131)
-
1,486
518
116
(1,031)
2,004
at Dec. 31,
2021
42,346
16,759
2,547
59,105
(1) Does not include changes in the nominal value of other non-current financial borrowings reported under “Other non-current financial liabilities” in the
statement of financial position.
374
374
Integrated Annual Report 2021
The nominal value of long-term debt amounted to €59,105
million at December 31, 2021, an increase of €5,730 mil-
lion compared with December 31, 2020. The increase in
debt reflected new borrowings of €15,895 million, ex-
change losses of €2,004 million and the consolidation of
the debt of a number of Australian companies amounting
to €183 million. These factors were only partially offset by
repayments of €11,321 million and other changes in the
debt equal to €1,031 million, of which €900 million were
attributable to the change in the accounting treatment
of non-convertible subordinated hybrid bonds in euros
issued by Enel SpA and converted into perpetual hybrid
bonds in 2021.
Repayments in 2021 involved bonds in the amount of
€9,049 million and loans in the amount of €2,272 million.
Specifically, repayments in 2021 included:
• €1,069 million in respect of the repurchase and subse-
quent cancellation of part of four series of convention-
al bonds in euros by Enel Finance International in June
2021 through a non-binding voluntary tender offer;
• $6,000 million (equivalent to €5,101 million at the repay-
ment date) in respect of the cash repurchase of four
conventional bonds denominated in US dollars by Enel
Finance International in July 2021 following the exercise
of a repurchase option;
• $1,472 million (equivalent to €1,275 million at the repay-
ment date) in respect of the repurchase and subsequent
cancellation of part of two series of conventional bonds
denominated in US dollars by Enel Finance International
in October 2021 through a voluntary non-binding tender
offer;
• €533 million in respect of fixed-rate bonds issued by Enel
Finance International, maturing in July 2021;
• the equivalent of €292 million in respect of hybrid bonds
denominated in British pounds issued by Enel SpA, matur-
ing in September 2021;
• the equivalent of €171 million in respect of the repayment
of bonds in local currency by Emgesa, maturing in January
2021;
• the equivalent of €114 million in respect of the repayment
of bonds in local currency by Enel Distribuição São Paulo,
maturing in September 2021.
The main repayments of loans made during the year included:
• €200 million in respect of a floating-rate loan of Enel SpA;
• the equivalent of €196 million in respect of a floating-rate
loan in US dollars of Enel SpA;
• €178 million in respect of Endesa loans, of the which €166
million in sustainable loans;
• €294 million in respect of sustainable loans of the Group’s
Italian companies;
• the equivalent of €1,019 million relating to South American
companies.
New borrowings in 2021 involved €10,368 million in bonds
and €5,527 million in loans.
The table below shows the main characteristics of financial
transactions carried out in 2021 and translated into euros at
the exchange rate prevailing at December 31, 2021.
Notes to the consolidated financial statements
375
375
Issuer/Borrower
Issue/
Grant date
Amount
in
millions
of euro Currency
Interest rate
Interest rate
type
Maturity
Enel Finance International
17.06.2021
Enel Finance International
17.06.2021
Enel Finance International
17.06.2021
Enel Finance International
12.07.2021
Enel Finance International
12.07.2021
Enel Finance International
12.07.2021
Enel Finance International
12.07.2021
Enel Finance International 28.09.2021
Enel Finance International 28.09.2021
Enel Finance International 28.09.2021
Enel Distribuição São Paulo 30.04.2021
Enel Distribuição São Paulo 04.10.2021
Enel SpA 05.05.2021
Enel SpA 12.10.2021
1,000
1,250
1,000
1,104
883
883
662
1,250
1,000
1,250
114
91
10,487
200
308
EUR
EUR
EUR
USD
USD
USD
USD
EUR
EUR
EUR
BRL
BRL
0.00%
0.50%
0.875%
1.375%
1.875%
2.250%
2.875%
Fixed rate 17.06.2027
Fixed rate 17.06.2030
Fixed rate 17.06.2036
Fixed rate 12.07.2026
Fixed rate 12.07.2028
Fixed rate
12.07.2031
Fixed rate 12.07.2041
-
Fixed rate 28.05.2026
0.375%
0.875%
Fixed rate 28.05.2029
Fixed rate 28.09.2034
IPCA + 4.26%
Floating rate 15.04.2031
CDI + 1.64% a.a
Floating rate 04.10.2028
EUR Euribor 6M + 0.3%
Floating rate 03.05.2024
USD
USD SOFR 3M
CMP 5LB + 0.7%
Floating rate 12.10.2025
Enel SpA 30.12.2021
1,000
EUR Euribor 6M + 0.4%
Floating rate 05.03.2026
e-distribuzione 30.07.2021
150
EUR
e-distribuzione 22.12.2021
150
EUR
Endesa
15.04.2021
150
Endesa 28.06.2021
Endesa 30.07.2021
Endesa 30.07.2021
Endesa
15.10.2021
Endesa
15.10.2021
Endesa
27.10.2021
Endesa 22.11.2021
Endesa 09.12.2021
Endesa
17.12.2021
Enel Distribuição Ceará 06.01.2021
Enel Distribuição São Paulo 19.04.2021
Enel Distribuição São Paulo 09.09.2021
Codensa
14.05.2021
Codensa
15.07.2021
Codensa 30.11.2021
Enel Chile 03.12.2021
Enel Brasil
15.09.2021
75
75
50
125
75
100
250
275
225
69
74
68
87
65
56
132
61
3,820
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
COP
COP
COP
USD
USD
Euribor 6M +
0.257%
Euribor 6M +
0.275%
Euribor 3M +
0.82%
Floating rate 30.07.2036
Floating rate 22.12.2036
Floating rate 18.04.2028
0.27%
0.26%
0.26%
0.09%
0.11%
0.25%
Fixed rate 28.06.2028
Fixed rate 30.07.2028
Fixed rate 30.07.2028
Fixed rate 15.10.2026
Fixed rate 15.10.2026
Fixed rate 27.10.2028
Euribor 6M +
0.313%
Floating rate 22.11.2036
0.00%
0.156%
1.225%
1.974%
Fixed rate 09.12.2024
Fixed rate
17.12.2024
Fixed rate 06.01.2023
Fixed rate 19.04.2024
2.365%
Fixed rate 09.09.2025
COP IBR 3M +
0.75%
COP IBR 6M +
0.5%
COP IBR 3M +
0.085%
USD LIBOR +
1.10%
Floating rate 14.05.2026
Floating rate
15.07.2026
Floating rate 30.11.2026
Floating rate 03.12.2026
1.91%
Fixed rate 16.09.2024
Bonds
Total bonds
Bank borrowings
Total bank borrowings
376
376
Integrated Annual Report 2021
Swiss franc
Chilean peso/
UF
Peruvian sol
Russian ruble
Other
currencies
Total
non-euro
currencies
The following table reports the impact on gross long-term
debt of hedges to mitigate currency risk.
Structure of long-term financial debt by currency after hedging(1)
Millions of
euro
at Dec. 31, 2021
at Dec. 31, 2020
Initial debt structure
Carrying
amount
Nominal
value
%
Impact of
hedge
Debt structure after
hedging
Initial debt structure
Impact of
hedge
Debt structure after
hedging
Carrying
amount
Nominal
value
%
Euro
32,041
32,387
54.8%
16,657
49,044
83.0%
25,581
26,089
48.9%
18,423
44,512
83.4%
US dollar
17,518
17,629
29.8%
(13,423)
4,206
7.1%
18,500
18,589
34.8%
(14,955)
3,634
6.8%
Pound sterling
3,901
3,976
6.7%
(3,976)
-
-
3,955
3,998
7.5%
(3,998)
-
-
Colombian
peso
1,341
1,341
2.3%
-
1,341
2.3%
1,283
1,283
2.4%
-
1,283
2.4%
Brazilian real
1,720
1,753
2,781
4.7%
1,832
1,864
3.0%
0.6%
0.7%
0.7%
0.7%
1,028
(344)
-
-
-
344
428
415
427
-
428
415
427
-
0.7%
0.7%
0.7%
405
0.7%
58
463
0.8%
343
423
415
427
402
328
368
388
281
171
329
374
388
286
175
3.5%
0.6%
0.7%
0.7%
0.5%
0.4%
794
(329)
2,658
5.0%
-
-
-
-
-
374
0.7%
388
286
0.7%
0.5%
65
240
0.5%
26,490
26,718
45.2%
(16,657)
10,061
17.0%
27,106
27,286
51.1%
(18,423)
8,863
16.6%
TOTAL
58,531
59,105
100.0%
-
59,105
100.0%
52,687
53,375
100.0%
-
53,375
100.0%
(1) Does not include other non-current financial borrowings reported under “Other non-current financial liabilities” in the statement of financial position.
The amount of floating-rate debt that is not hedged
against interest rate risk is the main risk factor that could
adversely impact profit or loss (raising borrowing costs) in
the event of an increase in market interest rates.
Millions of euro
2021
2020
Floating rate
Fixed rate
Total
Pre-hedge
% Post-hedge
% Pre-hedge
% Post-hedge
27,811
44,612
72,423
38.4%
61.6%
22,478
49,945
72,423
31.0%
69.0%
19,458
40,267
59,725
32.6%
67.4%
13,672
46,053
59,725
%
22.9%
77.1%
At December 31, 2021, 38.4% of financial debt was float-
ing rate (32.6% at December 31, 2020). Taking account of
hedges of interest rates considered effective pursuant to
the IFRS-EU, 31.0% of net financial debt at December 31,
2021 (22.9% at December 31, 2020) was exposed to inter-
est rate risk. These figures are in line with the limits estab-
lished in the risk management policy.
The following table shows the impact of the IBOR reform
on long-term financial debt for the main indices (for more
details, please see the section “Reform of benchmarks for
the determination of interest rates - IBOR reform” in note
49.1).
Millions of euro
Long-term financial debt
USD LIBOR/SOFR
GBP LIBOR/SONIA
Total
Notional amount
at Dec. 31, 2021
Phase 1
Phase 2
888
-
888
-
-
-
Notes to the consolidated financial statements
377
377
Long-term debt - Main covenants
The Group’s main long-term financial liabilities are gov-
erned by covenants that are commonly adopted in inter-
national business practice. These liabilities primarily re-
gard bond issues carried out within the framework of the
Global/Euro Medium Term Notes program, issues of sub-
ordinated unconvertible hybrid bonds (so-called “hybrid
bonds”) and loans granted by banks and other financial
institutions (including the European Investment Bank and
Cassa Depositi e Prestiti SpA).
The main covenants regarding bond issues carried out
within the framework of the Global/Euro Medium Term
Notes program of Enel and Enel Finance International NV
(including the green bonds of Enel Finance International
NV guaranteed by Enel SpA, which are used to finance the
Group’s so-called “eligible green projects“) and those re-
garding bonds issued by Enel Finance International NV on
the US market guaranteed by Enel SpA can be summarized
as follows:
• negative pledge clauses under which the issuer and
the guarantor may not establish or maintain mortgages,
liens or other encumbrances on all or part of its assets
or revenue to secure certain financial liabilities, unless
the same encumbrances are extended equally or pro
rata to the bonds in question;
• pari passu clauses, under which the bonds and the as-
sociated security constitute a direct, unconditional and
unsecured obligation of the issuer and the guarantor
and are issued without preferential rights among them
and have at least the same seniority as other present
and future unsubordinated and unsecured bonds of the
issuer and the guarantor;
• cross-default clauses, under which the occurrence of a
default event in respect of a specified financial liability
(above a threshold level) of the issuer, the guarantor or,
in some cases, “significant” subsidiaries, constitutes a
default in respect of the liabilities in question, which be-
come immediately repayable.
Since 2019, Enel Finance International NV has issued a
number of “sustainable” bonds on the European market (as
part of the Euro Medium Term Notes - EMTN bond issue
program) and on the American market, both guaranteed
by Enel SpA, linked to the achievement of a number of the
Sustainable Development Goals (SDGs) of the United Na-
tions that contain the same covenants as other bonds of
the same type.
The main covenants covering Enel’s hybrid bonds, includ-
ing the perpetual hybrid bond issues, which will only be
repaid in the event of the dissolution or liquidation of the
Company, can be summarized as follows:
378
378
Integrated Annual Report 2021
• subordination clauses, under which each hybrid bond is
subordinate to all other bonds issued by the company
and has the same seniority with all other hybrid financial
instruments issued, being senior only to equity instru-
ments;
• prohibition on mergers with other companies, the sale
or leasing of all or a substantial part of the company’s
assets to another company, unless the latter succeeds
in all obligations of the issuer.
The main covenants envisaged in the loan contracts
of Enel and Enel Finance International NV and the other
Group companies, including the sustainability-linked loan
facility agreements obtained by Enel SpA, can be summa-
rized as follows:
• negative pledge clauses, under which the borrower and,
in some cases, the guarantor are subject to limitations on
the establishment of mortgages, liens or other encum-
brances on all or part of their respective assets, with the
exception of expressly permitted encumbrances;
• disposals clauses, under which the borrower and, in
some cases, the guarantor may not dispose of their as-
sets or operations, with the exception of expressly per-
mitted disposals;
• pari passu clauses, under which the payment undertak-
ings of the borrower have the same seniority as its other
unsecured and unsubordinated payment obligations;
• change of control clauses, under which the borrower
and, in some cases, the guarantor could be required to
renegotiate the terms and conditions of the financing or
make compulsory early repayment of the loans granted;
• rating clauses, which provide for the borrower or the
guarantor to maintain their rating above a certain spec-
ified level;
• cross-default clauses, under which the occurrence of a
default event in respect of a specified financial liability
(above a threshold level) of the issuer or, in some cases,
the guarantor constitutes a default in respect of the lia-
bilities in question, which become immediately repayable.
In some cases, the covenants are also binding for the sig-
nificant companies or subsidiaries of the obligated parties.
All the borrowings considered specify “events of default”
typical of international business practice, such as, for ex-
ample, insolvency, bankruptcy proceedings or the entity
ceasing trading.
In addition, the guarantees issued by Enel in the interest
of e-distribuzione SpA for certain loans to e-distribuzi-
one SpA from Cassa Depositi e Prestiti SpA require that
at the end of each six-month measurement period Enel’s
net consolidated financial debt shall not exceed 4.5 times
annual consolidated gross operating profit.
Finally, the debt of Endesa SA, Enel Américas SA, Enel Chile
SA and the other Spanish and Latin American subsidiaries
(notably Enel Generación Chile SA) contain covenants and
events of default typical of international business practice.
46.3.2 Short-term borrowings – €13,306 million
At December 31, 2021 short-term borrowings totaled
€13,306 million, an increase of €6,961 million compared
with December 31, 2020, and 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, 2021
at Dec. 31, 2020
Change
1,329
10,708
918
351
13,306
711
4,854
370
410
6,345
618
5,854
548
(59)
6,961
(1) Does not include other current borrowings included in “Other current financial liabilities” of the statement of financial position included in financial debt.
Commercial paper liabilities totaling €10,708 million con-
cerned issues by Enel Finance International, Enel Finance
America and Endesa.
The main commercial paper programs include:
• €6,000 million of Enel Finance International linked to
sustainability objectives;
• €4,000 million of Endesa linked to sustainability objec-
tives;
• $5,000 million (equivalent to €4,414 million at Decem-
ber 31, 2021) of Enel Finance America linked to sustain-
ability objectives. During 2021, Enel Finance America
expanded its commercial paper program from $3,000
million to $5,000 million.
At December 31, 2021 commercial paper issues linked to
sustainability objectives amounted to €10,343 million.
46.4 Derivative financial liabilities
For more information on derivative financial liabilities,
please see note 49 “Derivatives and hedge accounting”.
46.5 Net gains and losses
The following table shows net gains and losses by category
of financial instruments, excluding derivatives.
Millions of euro
2021
2020
Financial assets at amortized cost
(915)
(1,194)
(1,326)
(1,334)
Of which
impairment
Net gain/(loss)
loss/gain Net gain/(loss)
Of which
impairment
loss/gain
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
-
15
15
28
-
28
Financial liabilities measured at amortized cost
(4,325)
Financial liabilities at FVTPL
Financial liabilities held for trading
Financial liabilities designated upon initial recognition (fair value option)
Total financial liabilities at FVTPL
-
-
-
For more details on net gains and losses on derivatives,
please see note 13 “Net financial income/(expense) from
derivatives”.
-
-
-
25
-
25
-
-
-
-
1
6
7
(125)
-
(125)
(1,385)
-
-
-
-
-
-
(346)
-
(346)
-
-
-
-
Notes to the consolidated financial statements
379
379
47. 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.
The Group’s governance arrangements for financial risks
include internal committees and the establishment of spe-
cific policies and operational limits. Enel’s primary objec-
tive is to mitigate financial risks appropriately so that they
do not give rise to unexpected changes in results.
The Group’s policies for managing financial risks provide
for the mitigation of the effects on performance of chang-
es in interest rates and exchange rates with the exclusion
of translation risk (connected with consolidation of the
accounts). This objective is achieved at the source of the
risk, through the diversification of both the nature of the
financial instruments and the sources of revenue, and by
modifying the risk profile of specific exposures with deriv-
atives entered into on over-the-counter markets or with
specific commercial agreements.
As part of its governance of compliance risks, the Enel
Group monitors non-risk-reducing positions in OTC de-
rivatives contracts in relation to the threshold values es-
tablished under the EMIR (Regulation (EU) no. 648/2012)
for the various asset classes. In 2021, the Group was posi-
tioned below those clearing thresholds for all asset class-
es, maintaining its classification as a non-financial coun-
terparty.
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).
380
380
Integrated Annual Report 2021
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 port-
folio of financial liabilities by contract type, maturity and
interest rate, and modifying the risk profile of specific ex-
posures 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 li-
ability, 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 statis-
tical assessment.
Using interest rate swaps, the Enel Group agrees with the
counterparty to periodically exchange floating-rate in-
terest flows with fixed-rate flows, both calculated on the
same notional principal amount.
Floating-to-fixed interest rate swaps transform float-
ing-rate financial liabilities into fixed rate liabilities, there-
by neutralizing 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 in-
terest 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-
rate interest flows.
Interest rate options involve the exchange of interest dif-
ferences calculated on a notional principal amount once
certain 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 strategies provide for the use of combinations of
options (collars) that establish the minimum and maximum
rates at the same time. In this case, the strike prices are
normally set so that no premium is paid on the contract
(zero cost collars).
Such contracts are normally used when the fixed interest
rate that can be obtained in an interest rate swap is con-
sidered too high with respect to market expectations for
future interest rate developments. In addition, interest rate
options are also considered most appropriate in periods
of greater uncertainty about future interest rate develop-
ments because they make it possible to benefit from any
decrease in interest rates.
The following table reports the notional amount of interest
rate derivatives at December 31, 2021 and December 31,
2020 broken down by type of contract.
Millions of euro
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
Notional amount
at Dec. 31,
2021
at Dec. 31,
2020
7,700
7,323
722
-
391
50
173
-
276
50
8,863
7,822
For more details on interest rate derivatives, please see
note 49 “Derivatives and hedge accounting”.
Interest rate risk sensitivity analysis
Enel analyzes the sensitivity of its exposure by estimating
the effects of a change in interest rates on the portfolio of
financial instruments.
More specifically, sensitivity analysis measures the po-
tential impact on profit or loss and on equity of market
scenarios that would cause a change in the fair value of
derivatives or in the financial expense associated with un-
Millions of euro
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
hedged gross debt.
These market scenarios are obtained by simulating parallel
increases and decreases in the yield curve as at the re-
porting date.
There were no changes introduced in the methods and as-
sumptions used in the sensitivity analysis compared with
the previous year.
With all other variables held constant, the Group’s pre-tax
profit would be affected by a change in the level of interest
rates as follows.
2021
Pre-tax impact
on profit or loss
Pre-tax impact
on equity
Basis points
Increase
Decrease
Increase
Decrease
25
25
25
25
23
38
-
-
(23)
(38)
-
-
-
-
67
-
-
-
(67)
-
At December 31, 2021, 24.5% (24.6% at December 31,
2020) of gross long-term financial debt was floating rate.
Taking account of effective cash flow hedges of interest
rate risk (in accordance with the provisions of the IFRS-EU),
84.5% of gross long-term financial debt was hedged at
December 31, 2021 (86.3% at December 31, 2020).
Currency risk
Currency risk mainly manifests
itself as unexpected
changes in the financial statement items associated with
transactions denominated in a currency other than the
presentation currency. The Group’s consolidated financial
statements are also exposed to translation risk as a result
of the conversion of the financial statements of foreign
subsidiaries, which are denominated in local currencies,
into euros as the Group’s presentation currency.
The Group’s exposure to currency risk is connected with
the purchase or sale of fuels and power, investments (cash
flows for capitalized costs), dividends and the purchase or
sale of equity investments, commercial transactions and
financial assets and liabilities.
The Group policies for managing currency risk provide for
the mitigation of the effects on profit or loss of changes
in the level of exchange rates, with the exception of the
translation effects connected with consolidation.
In order to minimize the exposure to currency risk, Enel im-
plements diversified revenue and cost sources geograph-
ically, and uses indexing mechanisms in commercial con-
Notes to the consolidated financial statements
381
381
tracts. Enel also uses various types of derivatives, typically
on the OTC market.
The derivatives in the Group’s portfolio of financial instru-
ments include cross currency interest rate swaps, currency
forwards and currency swaps. The term of such contracts
does not exceed the maturity of the underlying instru-
ment, so that any change in the fair value and/or expected
cash flows of such instruments offsets the corresponding
change in the fair value and/or cash flows of the hedged
position.
Cross currency interest rate swaps are used to transform
a long-term financial liability denominated in a currency
other than the presentation currency into an equivalent
liability in the presentation currency.
Currency forwards are contracts in which the counter-
parties agree to exchange principal amounts denominat-
ed in different currencies at a specified future date and
exchange rate (the strike). Such contracts may call for the
actual exchange of the two principal amounts (deliverable
forwards) or payment of the difference generated by dif-
ferences between the strike exchange rate and the prevail-
ing exchange rate at maturity (non-deliverable forwards). In
the latter case, the strike rate and/or the spot rate can be
determined as averages of the rates observed in a given
period.
Currency swaps are contracts in which the counterparties
enter into two transactions of the opposite sign at differ-
ent future dates (normally one spot, the other forward) that
provide for the exchange of principal denominated in dif-
ferent currencies.
The following table reports the notional amount of trans-
actions outstanding at December 31, 2021 and December
31, 2020, broken down by type of hedged item.
Millions of euro
Cross currency interest rate swaps (CCIRSs) hedging debt denominated in currencies other than the euro
Currency forwards hedging currency risk on commodities
Currency forwards/CCIRSs hedging future cash flows in currencies other than the euro
Other currency forwards
Total
Notional amount
at Dec. 31,
2021
at Dec. 31,
2020
21,123
6,183
5,034
926
20,636
5,469
3,971
990
33,266
31,066
More specifically, these include:
• CCIRSs with a notional amount of €21,123 million to
hedge the currency risk on debt denominated in cur-
rencies other than the euro (€20,636 million at Decem-
ber 31, 2020);
• currency forwards and cross currency swaps with a total
notional amount of €11,217 million used to hedge the
currency risk associated with purchases of natural gas
and fuel and expected cash flows in currencies other
than the euro (€9,440 million at December 31, 2020);
• other currency forwards, which include OTC derivatives
transactions carried out to mitigate currency risk on
expected cash flows in currencies other than the pres-
entation currency connected with the purchase of in-
vestment goods in the renewables and infrastructure
and networks sectors (new generation digital meters),
on operating costs for the supply of cloud services and
on revenue from the sale of renewable energy.
At December 31, 2021, 45% (51% at December 31, 2020)
of Group long-term debt was denominated in currencies
other than the euro.
Taking account of hedges of currency risk, the percentage
of debt not hedged against that risk amounted to 17% at
December 31, 2021 (17% at December 31, 2020).
Currency risk sensitivity analysis
The Group analyzes the sensitivity of its exposure by es-
timating the effects of a change in exchange rates on the
portfolio of financial instruments.
More specifically, sensitivity analysis measures the poten-
tial impact on profit or loss and equity of market scenarios
that would cause a change in the fair value of derivatives or
in the financial expense associated with unhedged gross
medium/long-term debt.
These scenarios are obtained by simulating the apprecia-
tion/depreciation of the euro against all of the currencies
compared with the value observed as at the reporting date.
There were no changes in the methods or assumptions
used in the sensitivity analysis compared with the previous
year.
With all other variables held constant, the pre-tax profit
would be affected by changes in exchange rates as follows.
382
382
Integrated Annual Report 2021
Millions of euro
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
Commodity price risk
The risk of fluctuations in the price of energy commodities
such as electricity, gas, oil, CO2, etc. is generated by the vol-
atility of prices and structural correlations between them,
which create uncertainty in the margin on purchases and
sales of electricity and fuels at variable prices (e.g., indexed
bilateral contracts, transactions on the spot market, etc.).
The exposures on indexed contracts are quantified by
breaking down the contracts that generate exposure into
the underlying risk factors.
To contain the effects of fluctuations and stabilize margins,
in accordance with the policies and operating limits deter-
mined by the Group’s governance and leaving an appropri-
ate margin of flexibility to seize any short-term opportuni-
ties 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
gas (such as forward procurement and long-term com-
mercial agreements), as well as risk mitigation plans and
techniques using derivative contracts (hedging).
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-
ferences, VPP contracts, etc.) in which differences are paid
to the counterparty if the market electricity price exceeds
the strike price and to Enel in the opposite case. The resid-
ual exposure in respect of the sale of energy on the spot
2021
Pre-tax impact
on profit or loss
Pre-tax impact
on equity
Exchange rate
Increase
Decrease
Increase
Decrease
10%
485
(592)
-
-
10%
10%
-
(50)
-
61
(2,458)
3,003
-
-
market not hedged with such contracts is aggregated by
uniform risk factors that can be managed with hedging
transactions on the market. Proxy hedging techniques
can be used for the industrial portfolios when the hedg-
ing instruments for the specific risk factors generating
the exposure are not available on the market or are not
sufficiently liquid. In addition, Enel uses portfolio hedging
techniques to assess opportunities for netting intercom-
pany exposures.
The Group mainly uses plain vanilla derivatives for hedging
(more specifically, forwards, swaps, options on commodi-
ties, futures, contracts for differences).
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
specific needs.
Enel also engages in proprietary trading in order to main-
tain a presence in the Group’s reference energy com-
modity markets. These operations consist in taking on
exposures in energy commodities (oil products, gas, coal,
CO2 certificates and electricity) using financial derivatives
and physical contracts traded on regulated and over-the-
counter markets, optimizing profits through transactions
carried out on the basis of expected market developments.
The following table reports the notional amount of out-
standing transactions at December 31, 2021 and Decem-
ber 31, 2020, broken down by type of instrument.
Millions of euro
Forward and futures contracts
Swaps
Options
Embedded
Total
Notional amount
at Dec. 31,
2021
at Dec. 31,
2020
90,273
12,122
1,076
-
48,064
1,862
576
7
103,471
50,509
For more details, please see note 49 “Derivatives and
hedge accounting”.
Sensitivity analysis of commodity price 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
constant.
The impact on pre-tax profit of shifts of +15% and -15% in
the price curve for the main commodities that make up
the fuel scenario and the basket of formulas used in the
Notes to the consolidated financial statements
383
383
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
commodities is not material.
Millions of euro
Change in the fair value of trading derivatives on commodities
Change in the fair value of derivatives on commodities designated as
hedging instruments
Credit and counterparty risk
The Group’s commercial, commodity and financial trans-
actions expose it to credit and counterparty risk, i.e., the
possibility of a deterioration in the creditworthiness of a
counterparty that has an adverse impact on the expected
value of the creditor position or, for trade payables only,
increases average collection times.
Accordingly, the exposure to credit risk is attributable to
the following types of transactions:
• 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 instruments (the
commodity portfolio);
• trading in derivatives, bank deposits and, more general-
ly, financial instruments (the financial portfolio).
In order to minimize credit risk, credit exposures are man-
aged at the region/country/Global Business Line level by
different units, thereby ensuring the necessary segregation
of risk management and control activities. Monitoring the
consolidated exposure is carried out by Enel SpA.
In addition, at the Group level the policy provides for the use
of uniform criteria – in all the main regions/countries/Global
Business Lines and at the consolidated level – in measuring
commercial credit exposures in order to promptly identify
any deterioration in the quality of outstanding receivables
and any mitigation actions to be taken.
2021
Pre-tax impact
on profit or loss
Pre-tax impact
on equity
Commodity
price
Increase
Decrease
Increase
Decrease
15%
15%
(621)
-
632
-
-
72
-
(88)
The policy for managing credit risk associated with com-
mercial activities provides for a preliminary assessment of
the creditworthiness of counterparties and the adoption
of mitigation instruments, such as obtaining collateral or
unsecured guarantees.
In addition, the Group undertakes transactions to factor
receivables without recourse, which results in the com-
plete derecognition of the corresponding assets involved
in the factoring, as the risks and rewards associated with
them have been transferred.
Finally, with regard to financial and commodity transac-
tions, risk mitigation is pursued with a uniform system for
assessing counterparties at the Group level, including im-
plementation at the level of regions/countries/Global Busi-
ness Lines, as well as with the adoption of specific stand-
ardized contractual frameworks that contain risk mitiga-
tion clauses (e.g., netting arrangements) and possibly the
exchange of cash collateral.
Despite the deterioration in the collection status of some
customer segments, which was taken into account in the
assessment of the impairment of trade receivables, to date
the Group portfolio has displayed resilience to the global
pandemic. This reflects the strengthening of digital collec-
tion channels and a sound diversification of commercial
customers with a low exposure to the impacts of COVID
(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
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit loss
allowance
0.6%
27.8%
73.0%
10,585
72
204
10,861
65
20
149
234
at Dec. 31, 2021
Carrying
amount
10,520
52
55
10,627
384
384
Integrated Annual Report 2021
Contract assets, trade receivables and other financial assets: individual measurement
Millions of euro
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
Millions of euro
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
at Dec. 31, 2021
Average loss
rate (PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
-
110
0.7%
5,339
1.2%
3.4%
10.2%
50.0%
31.6%
26.9%
77.1%
489
89
59
34
19
26
1,813
7,868
-
39
6
3
6
17
6
7
1,397
1,481
Carrying
amount
110
5,300
483
86
53
17
13
19
416
6,387
1.9%
1,712
32
1,680
-
-
-
-
-
-
13.9%
352
244
-
2
-
-
332
2,642
10,620
-
-
-
-
-
-
46
78
1,559
at Dec. 31, 2020
Average loss
rate (PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
4.3%
23
1.3%
4,953
1.5%
2.8%
12.8%
28.0%
12.9%
100.0%
83.8%
453
106
39
25
31
53
1,692
7,352
3.1%
1,243
15.6%
-
-
-
-
40.0%
6.3%
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
352
244
-
2
-
-
286
2,564
9,061
Carrying
amount
22
4,887
446
103
34
18
27
-
274
5,789
1,205
421
11
-
-
-
3
74
1,714
7,525
Notes to the consolidated financial statements
385
385
Contract assets, trade receivables and other financial assets: collective measurement
Millions of euro
at Dec. 31, 2021
Average 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
Millions of euro
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
386
386
Integrated Annual Report 2021
11.5%
26
1.7%
4,603
3,321
272
183
111
111
90
3,180
11,871
2.8%
9.9%
15.3%
26.1%
32.4%
33.3%
58.5%
-
-
-
-
-
-
-
-
Carrying
amount
24
4,526
3,227
245
155
82
75
60
1,319
9,689
2
77
94
27
28
29
36
30
1,861
2,182
804
76
728
7
-
-
-
-
1
1
-
-
-
-
-
-
-
7
-
-
-
-
1
1
813
12,710
76
2,260
737
10,450
at Dec. 31, 2020
Average loss
rate (PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
1.2%
0.6%
7.2%
16.2%
26.4%
36.6%
43.1%
100.0%
100.0%
163
5,487
554
154
110
71
58
79
1,468
7,981
2.2%
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
Liquidity risk
Liquidity risk manifests itself as uncertainty about the
Group’s ability to discharge its obligations associated with
financial liabilities that are settled by delivering cash or an-
other financial asset.
Enel manages liquidity risk by implementing measures to
ensure an appropriate level of liquid financial resources,
minimizing the associated opportunity cost and maintain-
ing a balanced debt structure in terms of its maturity pro-
file and funding sources.
In the short term, liquidity risk is mitigated by maintaining
an appropriate level of unconditionally available resources,
including liquidity on hand and short-term deposits, avail-
able committed credit lines and a portfolio of highly liquid
assets.
In the long term, liquidity risk is mitigated by maintaining a
balanced maturity profile for our debt, access to a range of
sources of funding on different markets, in different cur-
rencies and with diverse counterparties.
The mitigation of liquidity risk enables the Group to main-
tain a credit rating that ensures access to the capital mar-
ket and limits the cost of funds, with a positive impact on
its financial position and performance.
The Group holds the following undrawn lines of credit and
commercial paper programs.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Committed credit lines
Uncommitted credit lines
Commercial paper
Total
Maturity analysis
The table below summarizes the maturity profile of the
Group’s long-term debt.
Millions of euro
At Dec. 31, 2021
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(1):
- fixed rate
- floating rate
Total other non-bank borrowings
TOTAL
Expiring within
one year
Expiring beyond
one year
Expiring within
one year
Expiring beyond
one year
438
888
3,709
5,035
14,822
-
-
4,028
802
7,591
14,531
-
-
14,822
12,421
14,531
Maturing in
Less
than 3
months
From 3
months
to 1 year
2023
2024
2025
2026 Beyond
59
128
50
-
2,060
2,078
4,691
2,150
3,782
12,593
306
466
357
298
191
811
-
97
-
97
1,320
97
-
97
1,094
8,743
97
137
237
2,463
2,641
6,465
2,545
5,164 22,284
65
96
-
173
655
-
206
756
50
945
197
334
485
1,261
1,072
2,313
3,956
-
4
1,000
-
161
828
1,012
2,206
1,273
3,647
4,441
67
4
71
11
3
14
175
13
188
58
11
69
213
15
228
73
-
73
166
13
179
80
120
200
151
13
164
66
5
71
147
1,558
9
3
156
1,561
74
1
75
233
2
235
483
3,548
3,954
9,050
4,053
9,042
28,521
(1)
Includes other non-current financial borrowings reported under “Other non-current financial liabilities” in the statement of financial position.
Notes to the consolidated financial statements
387
387
Commitments to purchase commodities
In conducting its business, the Enel Group has entered into
contracts to purchase specified quantities of commodities
at a certain future date for its own use, which qualify for
the own use exemption provided for under IFRS 9.
The following table reports the undiscounted cash flows
associated with outstanding commitments at December
31, 2021.
Millions of euro
Commitments to purchase commodities:
- electricity
- fuels
Total
at Dec. 31,
2021
2022-2025 2026-2030 2031-2035
Beyond
71,244
58,042
22,916
11,542
16,201
34,027
13,932
18,195
8,038
4,435
129,286
34,458
50,228
21,970
22,630
48. Offsetting financial assets and
financial liabilities
At December 31, 2021, the Group did not hold offset posi-
tions in assets and liabilities, as it is not the Enel Group’s poli-
cy to settle financial assets and liabilities on a net basis.
49. Derivatives and hedge accounting
The following tables show the notional amount and the fair
value of derivative financial assets and derivative financial
liabilities eligible for hedge accounting or measured at
FVTPL, classified on the basis of the type of hedge rela-
tionship and the hedged risk, broken down into current
and non-current instruments.
The notional amount of a derivative contract is the amount
on the basis of which cash flows are exchanged. This
amount can be expressed as a value or a quantity (for ex-
ample tons, converted into euros by multiplying the no-
tional amount by the agreed price). Amounts denominated
in currencies other than the euro are translated at the offi-
cial closing exchange rates provided by the World Markets
Refinitiv (WMR) Company.
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
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
139
672
811
404
14,980
2,693
18,077
-
26
1,147
1,173
138
639
777
161
5,061
2,541
7,763
50
71
379
500
19
42
61
19
1,356
1,059
2,434
-
-
277
277
22
28
50
21
685
428
1,134
2
4
46
52
TOTAL DERIVATIVE ASSETS
20,061
9,040
2,772
1,236
-
-
-
-
2,690
3,469
6,159
50
2,154
48,304
50,508
56,667
-
79
79
-
698
2,165
2,863
-
3,430
21,424
24,854
27,796
-
-
-
-
104
3,023
3,127
1
23
19,640
19,664
22,791
-
28
28
-
51
627
678
-
79
2,686
2,765
3,471
388
388
Integrated Annual Report 2021
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
DERIVATIVE LIABILITIES
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
LIABILITIES
660
-
660
6,807
7,224
3,312
-
-
-
7,201
16,310
1,535
17,343
25,046
-
73
884
957
50
28
89
167
5
-
5
620
1,244
1,301
3,165
-
2
167
169
-
-
-
938
2,491
148
3,577
4
3
22
29
-
-
-
653
1,892
2,067
4,612
150
3,555
41,595
45,300
-
-
-
122
3,766
1,466
5,354
100
984
20,910
21,994
-
-
-
9
49
4,853
4,911
73
60
19,563
19,696
18,960
25,213
3,339
3,606
49,912
27,348
24,607
-
-
-
2
263
379
644
88
41
2,758
2,887
3,531
49.1 Derivatives designated as hedging
instruments
Derivatives are initially recognized at fair value, on the trade
date of the contract and are subsequently re-measured
at their fair value. The method of recognizing the result-
ing gain or loss depends on whether the derivative is des-
ignated as a hedging instrument, and if so, the nature of
the item being hedged.
Hedge accounting is applied to derivatives entered into in
order to reduce risks such as interest rate risk, currency
risk, commodity price risk and net investments in foreign
operations when all the criteria provided by IFRS 9 are
met.
At the inception of the transaction, the Group docu-
ments the relationship between hedging instruments
and hedged items, as well as its risk management objec-
tives and strategy. The Group also documents its assess-
ment, both at hedge inception and on an ongoing basis,
of whether hedging instruments are highly effective in
offsetting changes in fair values or cash flows of hedged
items.
For cash flow hedges of forecast transactions designat-
ed as hedged items, the Group assesses and documents
that they are highly probable and present an exposure to
changes in cash flows that affect profit or loss.
Depending on the nature of the risk exposure, the Group
designates derivatives as either:
• fair value hedges;
• cash flow hedges.
For more details about the nature and the extent of risks
arising from financial instruments to which the Group is
exposed, please see note 47 “Risk management”.
To be effective a hedge relationship shall meet all of the
following criteria:
• existence of an economic relationship between hedg-
ing instrument and hedged item;
• the effect of credit risk does not dominate the value
changes resulting from the economic relationship;
• the hedge ratio defined at initial designation shall be
equal to the one used for risk management purpos-
es (i.e., same quantity of the hedged item that the en-
tity actually hedges and the quantity of the hedging
instrument that the entity actually uses to hedge the
quantity of the hedged item).
Based on the IFRS 9 requirements, the existence of an
economic relationship is evaluated by the Group through
a qualitative assessment or a quantitative computation,
depending on the following circumstances:
• if the underlying risk of the hedging instrument and
the hedged item is the same, the existence of an eco-
nomic relationship will be provided through a qualita-
tive analysis;
• on the other hand, if the underlying risk of the hedging
instrument and the hedged item is not the same, the
existence of the economic relationship will be demon-
strated through a quantitative method in addition to a
qualitative analysis of the nature of the economic rela-
tionship (i.e., linear regression).
In order to demonstrate that the behavior of the hedging
instrument is in line with those of the hedged item, differ-
ent scenarios will be analyzed.
Notes to the consolidated financial statements
389
389
For hedging of commodity price risk, the existence of an
economic relationship is deduced from a ranking matrix
that defines, for each possible risk component, a set of all
standard derivatives available in the market whose rank-
ing is based on their effectiveness in hedging the consid-
ered risk.
In order to evaluate the credit risk effects, the Group con-
siders the existence of risk mitigating measures (collat-
eral, mutual break-up clauses, netting agreements, etc.).
The Group has established a hedge ratio of 1:1 for all
the hedge relationships (including commodity price risk
hedging) as the underlying risk of the hedging derivative
is identical to the hedged risk, in order to minimize hedg-
ing ineffectiveness.
The hedge ineffectiveness will be evaluated through a
qualitative assessment or a quantitative computation,
depending on the following circumstances:
• if the critical terms of the hedged item and hedging
instrument match and there are no other sources of
ineffectiveness included the credit risk adjustment on
the hedging derivative, the hedge relationship will be
considered fully effective on the basis of a qualitative
assessment;
• if the critical terms of the hedged item and hedging in-
strument do not match or there is at least one source
of ineffectiveness, the hedge ineffectiveness will be
quantified applying the dollar offset cumulative meth-
od with hypothetical derivative. This method compares
changes in fair value of the hedging instrument and
the hypothetical derivative between the reporting date
and the inception date.
The main causes of hedge ineffectiveness can be the fol-
lowing:
• basis differences (i.e., the fair value or cash flows of
the hedged item depend on a variable that is differ-
ent from the variable that causes the fair value or cash
flows of the hedging instrument to change);
• timing differences (i.e., the hedged item and hedging
instrument occur or are settled at different dates);
• quantity or notional amount differences
(i.e., the
hedged item and hedging instrument are based on
different quantities or notional amounts);
• other risks (i.e., changes in the fair value or cash flows
of a derivative hedging instrument or hedged item re-
late to risks other than the specific risk being hedged);
• credit risk (i.e., the counterparty credit risk differently
impacts the changes in the fair value of the hedging
instruments and hedged items).
Fair value hedges
Fair value hedges are used to protect the Group against
exposures to changes in the fair value of assets, liabilities
390
390
Integrated Annual Report 2021
or firm commitment attributable to a particular risk that
could affect profit or loss.
Changes in the fair value of derivatives that qualify and
are designated as hedging instruments are recognized
in the income statement, together with changes in the
fair value of the hedged item that are attributable to the
hedged risk.
If the hedge no longer meets the criteria for hedge ac-
counting, the adjustment to the carrying amount of a
hedged item for which the effective interest rate method
is used is amortized to profit or loss over the period to
maturity.
Cash flow hedges
Cash flow hedges are applied in order to hedge the Group
exposure to changes in future cash flows that are attribut-
able to a particular risk associated with a recognized asset
or liability or a highly probable transaction that could affect
profit or loss.
The effective portion of changes in the fair value of deriv-
atives that are designated and qualify as cash flow hedges
is recognized in other comprehensive income. The gain or
loss relating to the ineffective portion is recognized imme-
diately in the income statement.
Amounts accumulated in equity are reclassified to profit
or loss in the periods when the hedged item affects profit
or loss (for example, when the hedged forecast sale takes
place).
If the hedged item results in the recognition of a non-fi-
nancial asset (i.e., property, plant and equipment or inven-
tories, etc.) or a non-financial liability, or a hedged forecast
transaction for a non-financial asset or a non-financial
liability becomes a firm commitment for which fair value
hedge accounting is applied, the amount accumulated in
equity (i.e., hedging reserve) shall be removed and included
in the initial amount (cost or other carrying amount) of the
asset or the liability hedged (i.e., “basis adjustment”).
When a hedging instrument expires or is sold, or when a
hedge no longer meets the criteria for hedge accounting,
any cumulative gain or loss existing in equity at that time
remains in equity and is recognized when the forecast
transaction is ultimately recognized in the income state-
ment. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was reported in
equity is immediately transferred to the income statement.
For hedge relationships using forwards as a hedging in-
strument, where only the change in the value of the spot
element is designated as the hedging instrument, ac-
counting for the forward element (profit or loss vs. OCI)
is defined case by case. This approach is actually applied
by the Group for hedging of currency risk on renewables
assets.
Conversely, for hedge relationships using cross currency
interest rate swaps as hedging instruments, the Group
separates foreign currency basis spread, in designating
the hedging derivative, and presents them in other com-
prehensive income (OCI) as hedging costs.
With specific regard to cash flow hedges of commodity
risk, in order to improve their consistency with the risk
management strategy, the Enel Group applies a dynamic
hedge accounting approach based on specific liquidity
requirements (the so-called “liquidity-based approach“).
This approach requires the designation of hedges
through the use of the most liquid derivatives available
on the market and replacing them with others that are
more effective in covering the risk in question.
Consistent with the risk management strategy, the liquid-
ity-based approach allows the roll-over of a derivative by
replacing it with a new derivative, not only in the event of
expiry but also during the hedge relationship, if and only
if the new derivative meets both of the following require-
ments:
• it represents a best proxy of the old derivative in terms
of ranking;
• it meets specific liquidity requirements.
Satisfaction of these requirements is verified quarterly.
At the roll-over date, the hedge relationship is not dis-
continued. Accordingly, starting from that date, changes
in the effective fair value of the new derivative will be rec-
ognized in equity (the hedging reserve), while changes in
the fair value of the old derivative are recognized through
profit or loss.
Reform of benchmarks for the determination of
interest rates – IBOR reform
Overview
Interbank Offered Rates (“IBORs”) are benchmark rates at
which banks can borrow funds on the interbank market
on an unsecured basis for a given period ranging from
overnight to 12 months, in a specific currency.
In recent years there have been a number of cases of
manipulation of these rates by the banks contributing
to their calculation. For this reason, regulators around
the world have begun a sweeping reform of interest
rate benchmarks that includes the replacement of some
benchmarks with alternative risk-free rates (the IBOR re-
form).
The Group’s main exposure is based on Euribor, USD LI-
BOR and GBP LIBOR.
Euribor is still considered compliant with the European
Benchmarks Regulation (BMR) and this permits market
participants to continue to use it for both existing and
new contracts.
In line with the most recent guidance issued by the major
regulatory bodies:
• the 1-month, 3-month and 6-month USD LIBOR
benchmarks will become unrepresentative after June
30, 2023 and the alternative reference rate will be the
Secured Overnight Financing Rate (SOFR);
• the 1-month, 3-month and 6-month GBP LIBOR
benchmarks will become unrepresentative after De-
cember 31, 2021 and the alternative reference rate will
be the Sterling Overnight Index Average (SONIA).
As a result of the IBOR reform, a number of temporary
exceptions to the rules on hedge relationships have been
allowed in implementation of the amendments to IFRS
9 issued in September 2019 (Phase 1) and August 2020
(Phase 2) to address, respectively:
• pre-replacement issues that impact financial reporting
in the period preceding the replacement of an existing
interest rate benchmark with an alternative risk-free
rate (Phase 1); and
• post-replacement issues that could impact financial
reporting when an existing interest rate benchmark
is reformed or replaced and there is there no longer
any initial uncertainty, but hedge contracts and rela-
tionships still need to be updated to reflect the new
benchmark rates (Phase 2).
Impact of the IBOR reform on the Group
In a context of uncertainty regarding the IBOR transition
in the various countries, the Group has determined the
overall number and nominal value of the contracts im-
pacted by the reform. In addition, a number of contractu-
al amendments have already been implemented in con-
tracts previously indexed to GBP LIBOR and others will be
amended in 2022-2023 on the basis of the evolution of
the IBOR reform and best market practice.
Debt and derivatives
The Group’s floating rate debt is mainly benchmarked
against Euribor and USD LIBOR and is almost entirely
hedged using financial derivatives.
At the reporting date, the Group is planning to take no
action with regard to Euribor since, as stated above, this
benchmark has been comprehensively reformed to com-
ply with the European Benchmarks Regulation. Despite
the continuity with Euribor, replacement clauses may
be required and could therefore be implemented by the
Group in the new contracts in accordance with the evolu-
tion of accepted market practice.
During 2021, the Group obtained new US dollar loans
indexed to SOFR and proactively changed its existing
exposure in derivatives by switching from GPB LIBOR to
SONIA. The main focus over the coming months will be
how to change existing USD LIBOR to USD SOFR expo-
sures and how to use the new, alternative risk-free rates
for new financial transactions.
The Group’s derivative instruments are managed through
contracts that are mainly based on framework agree-
ments defined by the International Swaps and Derivatives
Association (ISDA).
Notes to the consolidated financial statements
391
391
The ISDA has revised its standardized contracts in light
of the IBOR reform and amended the choices for floating
rates within the 2006 ISDA definitions to include replace-
ment clauses that would apply upon the permanent dis-
continuation of specific key benchmarks. These changes
took effect on January 25, 2021. Transactions represent-
ed in the 2006 ISDA definitions carried out on January 25,
2021 or later include adjusted floating-rate options (e.g.,
the choice of floating rate with replacement clause), while
transactions completed before that date (previous deriv-
ative contracts) continue to be based on the 2006 ISDA
definitions.
For this reason, the ISDA published an IBOR Fallback Pro-
tocol to facilitate multilateral amendments to include the
amended definitions.
The Group is assessing whether to: (i) adopt that protocol
in the light of its exposure and developments in the IBOR
reform or (ii) adjust in advance any contracts impacted bi-
laterally by the reform.
Hedge relationships
At the reporting date, hedged items and hedging instru-
ments are primarily indexed to Euribor, USD LIBOR and
GBP SONIA.
The Group has assessed the impact of uncertainty engen-
dered by the IBOR reform on hedge relationships at De-
cember 31, 2021 with reference to both hedging instru-
ments and hedged items. Both the hedged items and the
hedging instruments will change their parameterization
from interbank market-based benchmarks (IBORs) to al-
ternative risk-free rates (RFRs) as a result of the contrac-
tual amendments that will take effect in the coming years.
In particular, uncertainty remains as to how the replacement
will take place with regard to both hedging instruments and
hedged items indexed to USD LIBOR. The Group manages
the uncertainty associated with these hedge relationships
by continuing to apply the temporary exceptions provided
for in the amendments to IFRS 9 issued in September 2019
(Phase 1). It was therefore felt that the benchmark indices
for determining the interest rates on which the cash flows
of the hedged items or the hedging instruments are based
would not change as a consequence of the IBOR reform.
The exception was applied for the following hedge rela-
tionship requirements:
• determine if a forecast transaction is highly probable;
• establish whether the future hedged cash flows will
arise in a discontinued cash flow hedge relationship;
• assess the economic relationship between the hedged
item and the hedging instrument.
The hedge relationships impacted may become ineffective
attributable to different replacements of existing bench-
marks with alternative risk-free benchmarks. In any case,
the Group will seek to implement the replacements at the
same time.
In addition, the Group changed the reference to GBP LIBOR
in its interest rate hedging instruments used in cash flow
hedge relationships with the new, economically equivalent,
SONIA benchmark at the end of 2021. There is therefore
no longer any uncertainty as to how and when the replace-
ment can take place both with reference to the hedged
items and the hedging instruments. Consequently, the
Group no longer applies the amendments to IFRS 9 issued
in September 2019 (Phase 1) to these hedge relationships
and, consequently, has begun to apply the amendments
to IFRS 9 issued in August 2020 (Phase 2), modifying the
formal designation of the hedge relationship as required
by the IBOR reform and without considering this event as a
termination of the hedge relationship.
Furthermore, for cash flow hedge relationships, in modify-
ing the description of the hedged item in the hedge rela-
tionship, the amounts accumulated in the hedging reserve
were considered on the basis of the alternative benchmark
index in relation to which the future hedged cash flows are
determined.
The following table provides details of the notional amounts
of the hedging instruments for which the amendments to
IFRS 9 (both Phase 1 and Phase 2) were applied as at De-
cember 31, 2021, broken down by the alternative bench-
mark index used for determining the interest rate.
Millions of euro
Hedging instruments(1)
USD LIBOR/SOFR
GBP LIBOR/SONIA
Total
Notional amount
at Dec. 31, 2021
Phase 1
Phase 2
1,315
-
1,315
-
1,309
1,309
(1) Since the hedge relationships mentioned are considered highly effective, the amounts specified in the table as de facto “hedging instruments” represent
the equivalent amounts of the associated hedged items.
392
392
Integrated Annual Report 2021
Unamended contracts including those with specific
replacement clauses
The Group is monitoring the evolution of the transition from
the old interest rate benchmarks to the new rates, review-
ing the overall amounts of contracts that have not yet been
indexed to the new benchmark rates and, among these, the
amounts of contracts which already include specific re-
placement clauses. The Group considers a contract to have
not yet incorporated an alternative benchmark rate when
the interest rate of the contract is indexed to an interest rate
benchmark still involved in the IBOR reform and, therefore,
when uncertainties still exist as to how and when replace-
ment with the new benchmark will take place.
49.1.1 Hedge relationships by type of risk hedged
Interest rate risk
The following table shows the notional amount and the
average interest rate of instruments hedging the interest
rate risk on transactions outstanding at December 31,
2021 and December 31, 2020, broken down by maturity.
Millions of euro
At Dec. 31, 2021
Interest rate swaps
Total notional amount
Notional amount related to IRS in euro
Average IRS rate in euro
Maturity
2022
2023
2024
2025
2026 Beyond
Total
653
128
169
169
729
639
582
582
942
729
5,588
8,663
4,582
6,829
5.0651 4.2791 0.8596
1.9099
2.2703
1.6826
Notional amount related to IRS in US dollars
353
-
44
-
-
674
1,071
Average IRS rate in US dollars
3.5227
0.6950
2.4672
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
Maturity
2021
2022
2023
2024
2025 Beyond
Total
122
-
461
135
178
178
155
155
591
591
6,115
7,622
5,295
6,354
5.0139
4.1593 4.4380
1.9058
1.8321
Notional amount related to IRS in US dollars
122
326
-
-
-
639
1,087
Average IRS rate in US dollars
2.0350
3.5227
2.4648
The following table shows the notional amount and the fair
value of the hedging instruments on the interest rate risk
of transactions outstanding as at December 31, 2021 and
December 31, 2020, broken down by type of hedged item.
Millions of euro
Fair value
Notional
amount
Fair value
Notional
amount
Assets Liabilities
Assets Liabilities
Hedging instrument
Hedged item
at Dec. 31, 2021
at Dec. 31, 2020
Fair value hedges
Interest rate swaps
Interest rate swaps
Cash flow hedges
Interest rate swaps
Interest rate swaps
Interest rate swaps
Total
Floating-rate borrowings/bonds
Fixed-rate borrowings/bonds
Floating-rate bonds
Floating-rate loan assets
Floating-rate borrowings
13
6
-
13
6
38
(1)
(4)
(167)
(1)
(461)
(634)
241
558
1,190
164
6,510
8,663
15
7
-
21
-
43
-
-
(232)
-
(708)
(940)
126
12
1,190
161
6,133
7,622
Notes to the consolidated financial statements
393
393
The following table shows the notional amount and the
fair value of hedging derivatives on interest rate risk as
at December 31, 2021 and December 31, 2020, broken
down by type of hedge.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
Derivatives
Fair value hedges
Interest rate swaps
Total
Cash flow hedges
Interest rate swaps
Total
TOTAL INTEREST RATE
DERIVATIVES
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
139
139
404
404
543
138
138
161
161
299
19
19
19
19
38
22
22
21
21
43
660
660
7,460
7,460
8,120
-
-
7,323
7,323
7,323
(5)
(5)
(629)
(629)
(634)
-
-
(940)
(940)
(940)
The notional amount of derivatives classified as hedg-
ing instruments at December 31, 2021 came to €8,663
million, with a corresponding negative fair value of €596
million.
Compared with December 31, 2020, the notional amount
increased by €1,041 million, mainly reflecting:
• the expiry of interest rate swaps amounting to €122
million;
• the consolidation of Australian companies holding in-
terest rate swaps amounting to €340 million;
• new interest rate swaps amounting to €952 million.
The amount also reflects the reduction of €129 million in
the notional amount of amortizing interest rate swaps.
The improvement in the fair value of €301 million mainly
reflects developments in the yield curve.
Fair value hedge derivatives
The following table reports net gains and losses recog-
nized through profit or loss in respect of fair value hedge
derivatives and the hedged item that are attributable to
interest rate risk both in 2021 and the previous year.
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
The following table shows the impact of fair value hedges
of interest rate risk in the statement of financial position
at December 31, 2021 and December 31, 2020.
2021
2020
Net gain/(loss)
Net gain/(loss)
(11)
(8)
(19)
15
(14)
1
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Interest rate swaps
Notional
amount
799
Carrying
amount
14
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
14
138
22
22
394
394
Integrated Annual Report 2021
The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Fixed-rate borrowings
Floating-rate borrowings
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
518
306
824
6
(11)
(5)
(5)
9
4
20
146
166
7
15
22
(7)
(15)
(22)
Cash flow hedge derivatives
The following table shows the cash flows expected in
coming years from cash flow hedge derivatives on inter-
est rate risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2021
2022
2023 2024 2025 2026 Beyond
Cash flow hedge derivatives on interest rates
Positive fair value
Negative fair value
19
3
2
1
3
3
5
(629)
(139)
(121)
(96)
(78)
(66)
(163)
The following table shows the impact of cash flow hedges
of interest rate risk in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Interest rate swaps
Notional
amount
7,864
Carrying
amount
(610)
Fair value used
to measure
ineffectiveness
in the year
(610)
Notional
amount
7,484
Carrying
amount
(919)
Fair value used
to measure
ineffectiveness
in the year
(919)
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
Fair value
at the
designation
date of CFH
derivatives
through
profit or loss
Hedging
reserve
Hedging
costs
reserve
Hedging
reserve
Hedging
costs
reserve
Floating-rate
bonds
Floating-rate
loan assets
Floating-rate
borrowings
Total
167
(12)
417
572
-
-
(32)
(32)
(167)
12
(417)
(572)
-
-
-
-
-
-
(6)
(6)
232
(21)
653
864
-
-
(232)
21
(44)
(653)
(44)
(864)
-
-
-
-
Ineffective
portion of
carrying
amount
of CFH
derivatives
-
-
(11)
(11)
Notes to the consolidated financial statements
395
395
Currency risk
The following table reports the maturity profile of the
notional amount and associated average contractual ex-
change rate for the instruments hedging currency risk on
transactions outstanding at December 31, 2021 and De-
cember 31, 2020.
Millions of euro
At Dec. 31, 2021
Cross currency interest rate swaps (CCIRS)
2022
2023
2024
2025
2026
Beyond
Total
Maturity
Total notional amount of CCIRS
258
1,574
4,638
1,002
1,153
12,814
21,439
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
Notional value for CCIRS EUR/BRL
Average exchange rate EUR/BRL
Currency forwards
-
1,104
2,158
661
1,104
8,632
13,659
1.3350
1.1345
1.1742
1.1790
1.2094
-
-
-
-
1,012
0.8765
218
1.0642
-
-
-
-
3,678
4,690
0.8241
126
344
1.2100
98
132
295
155
49
244
973
4.8123
5.2217
5.5483
5.2921
5.3875
3.5655
160
339
402
79
6.4122
6.4379
6.2482
6.7126
Total notional amount of forwards
4,324
1,320
371
Notional amount - currency forwards EUR/USD
3,064
1,268
371
4
4
Average currency forward rate - EUR/USD
1.1600
1.1900
1.1800
1.1800
Notional amount - currency forwards USD/BRL
Average currency forward rate - USD/BRL
Notional amount - currency forwards USD/COP
Average currency forward rate - USD/COP
Notional amount - currency forwards EUR/CLP
Average currency forward rate - EUR/CLP
Notional amount - currency forwards EUR/CAD
Average currency forward rate - EUR/CAD
311
5.6500
284
3,964
145
818.9400
107
1.2400
-
-
-
-
-
-
-
-
-
-
-
-
396
396
Integrated Annual Report 2021
-
-
-
-
-
-
-
77
1,057
3.9197
-
-
-
-
-
-
6,019
4,707
311
284
145
107
Millions of euro
At Dec. 31, 2020
Cross currency interest rate swaps (CCIRS)
2021
2022
2023
2024
2025
Beyond
Total
Maturity
Total notional amount of CCIRS
859
1,702
3,120
3,088
1,336
10,882
20,987
185
1,630
2,038
1,223
1,223
6,928
13,227
1.1348
1.1213
1.2493
1.1039
1.1593
1.2397
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
278
0.8248
-
-
-
-
-
946
0.8765
208
1.0642
395
71
64
4.3935
4.1779
5.1967
Total notional amount of forwards
3,684
1,871
Notional amount - currency forwards EUR/USD
2,671
1,786
12
12
Average currency forward rate - EUR/USD
1.1473
1.1535
1.1976
Notional amount - currency forwards USD/BRL
Average currency forward rate - USD/BRL
379
37
5.2226
5.4405
Notional amount - currency forwards USD/COP
Average currency forward rate - USD/COP
Notional amount - currency forwards EUR/CLP
Average currency forward rate - EUR/CLP
Notional amount - currency forwards EUR/RUB
Average currency forward rate - EUR/RUB
187
3,782
121
716.8847
100
91.8464
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,443
4,667
0.7876
120
328
0.9040
244
774
3.4489
-
-
-
-
-
-
5,567
4,469
416
187
121
100
-
-
-
-
-
-
-
Notes to the consolidated financial statements
397
397
The following table shows the notional amount and the
fair value of the hedging instruments on the currency risk
of transactions outstanding as at December 31, 2021 and
December 31, 2020, 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, 2021
at Dec. 31, 2020
Fair value hedges
Cross currency interest rate
swaps (CCIRS)
Fixed-rate borrowings/bonds in
foreign currencies
Cross currency interest rate
swaps (CCIRS)
Floating-rate borrowings in
foreign currencies
Cash flow hedges
Cross currency interest rate
swaps (CCIRS)
Floating-rate borrowings/
financial assets in foreign
currencies
Cross currency interest rate
swaps (CCIRS)
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)
Future cash flows denominated
in foreign currencies
Currency forwards
Currency forwards
Currency forwards
Total
Future cash flows denominated
in foreign currencies
Future commodity purchases
denominated in foreign
currencies
Purchases of investment goods
and other in foreign currency
12
30
88
43
37
-
-
595
77
(19)
953
(58)
2,553
-
344
28
28
67
50
12
-
-
639
79
(15)
579
-
-
484
356
1,159
(1,095)
16,601
588
(2,374)
18,499
-
7
(75)
(3)
316
378
106
(36)
4,802
20
(7)
839
7
3
5
4
(4)
(12)
351
574
(309)
4,167
(40)
825
1,502
(1,293)
27,458
792
(2,754)
26,553
Cash flow hedges and fair value hedges include:
• CCIRSs with a notional amount of €19,749 million used
to hedge the currency risk on fixed-rate debt denomi-
nated in currencies other than the euro, with a positive
fair value of €61 million;
• CCIRSs with a notional amount of €1,690 million used to
hedge the currency risk on floating-rate debt denomi-
nated in currencies other than the euro, with a positive
fair value of €61 million;
• currency forwards with a notional amount of €5,180
million used to hedge the currency risk associated with
purchases of natural gas, purchases of fuel and expect-
ed cash flows in currencies other than the euro, with a
positive fair value of €74 million;
• currency forwards with a notional amount of €839 mil-
lion and a positive fair value of €13 million in respect of
OTC transactions to mitigate the currency risk on ex-
pected cash flows in currencies other than the pres-
entation currency connected with the purchase of in-
vestment goods in the renewables and infrastructure
and networks sectors (new generation digital meters),
on operating costs for the supply of cloud services and
on revenue from the sale of renewable energy.
398
398
Integrated Annual Report 2021
The following table reports the notional amount and fair
value of foreign exchange derivatives at December 31,
2021 and December 31, 2020, broken down by type of
hedge.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
Derivatives
Fair value hedges
CCIRS
Total
Cash flow hedges
Currency forwards
CCIRS
Total
672
672
4,117
13,553
17,670
718
718
476
5,582
6,058
42
42
133
1,327
1,460
56
56
12
724
736
792
-
-
1,902
7,214
9,116
-
-
-
-
-
-
5,090
14,687
19,777
(46)
(1,247)
(1,293)
(361)
(2,393)
(2,754)
9,116
19,777
(1,293)
(2,754)
TOTAL EXCHANGE RATE
DERIVATIVES
18,342
6,776
1,502
The notional amount of CCIRSs at December 31, 2021
amounted to €21,439 million (€20,987 million at Decem-
ber 31, 2020), an increase of €452 million. Cross currency
interest rate swaps with a total amount of €859 million ex-
pired, while new derivatives amounted to €6,470 million,
of which €3,532 million in respect of bond issues denom-
inated in US dollars in July 2021. In addition, following the
early redemption of conventional bonds in US dollars by
Enel Finance International during the year, cross currency
interest rate swaps of €5,909 million were terminated ear-
ly. The amount also reflects developments in the exchange
rate of the euro against the main other currencies and the
effect of amortization, which caused their notional amount
to increase by €750 million.
The notional amount of currency forwards at December
31, 2021 amounted to €6,019 million (€5,566 million at De-
cember 31, 2020), an increase of €453 million. The expo-
sure to currency risk, especially that associated with the
US dollar, is mainly due to purchases of natural gas, pur-
chases of fuel and cash flows in respect of investments.
Changes in the notional amount are connected with nor-
mal developments in operations.
Fair value hedge derivatives
The following table reports net gains and losses recog-
nized through profit or loss, reflecting changes in the fair
value of fair value hedge derivatives and the hedged item
that are attributable to currency risk for 2021 and the pre-
vious year.
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
December 31, 2021 and December 31, 2020.
2021
2020
Net gain/(loss)
Net gain/(loss)
1
(2)
(1)
44
(51)
(7)
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
Cross currency interest rate swaps
(CCIRS)
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
672
42
37
718
56
56
Notes to the consolidated financial statements
399
399
The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
Fixed-rate borrowings in foreign currency
Floating-rate borrowings in foreign
currency
Total
639
-
639
(35)
-
(35)
(44)
-
(44)
637
79
716
34
28
62
(34)
(28)
(62)
Cash flow hedge derivatives
The following table shows the cash flows expected in com-
ing years from cash flow hedge derivatives on currency
risk.
Millions of euro
Fair value
Distribution of expected cash flows
Cash flow hedge derivatives on exchange rates
Positive fair value
Negative fair value
The following table shows the impact of cash flow hedges
of currency risk in the statement of financial position at
December 31, 2021 and December 31, 2020.
at Dec. 31,
2021
2022
2023
2024
2025
2026 Beyond
1,460
305
407
(1,293)
(9)
13
247
(66)
180
(49)
205
1,780
(27)
(256)
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
20,767
6,019
26,786
80
87
167
82
89
171
20,269
(1,669)
(1,463)
5,566
25,835
(349)
(2,018)
(342)
(1,805)
400
400
Integrated Annual Report 2021
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
Hedging
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
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 (hedged with
CCIRSs)
Future cash flows denominated in
foreign currencies (hedged with
forwards)
Future commodity purchases
denominated in foreign currencies
Purchases of investment goods
and other in foreign currency
(69)
69
15
(15)
(37)
(66)
37
66
75
(75)
(2)
(72)
(15)
2
72
15
Total
(171)
171
-
-
-
(2)
-
1
-
(3)
(4)
-
-
-
-
-
-
-
-
-
(52)
(50)
(12)
52
50
12
-
-
-
1,580
(1,580)
(205)
(3)
7
3
(7)
305
(305)
30
(30)
-
(3)
-
(5)
1,805
(1,805)
(213)
-
-
-
-
-
-
1
(1)
-
Notes to the consolidated financial statements
401
401
Notional value on gas
3,315
1,048
Commodity price risk
Millions of euro
At Dec. 31, 2021
Commodity swaps
Notional value on power
Average commodity swap price on power (€/MWh)
Notional value on gas
Average commodity swap price on gas (€/MWh)
Notional amount on oil
Average commodity swap price on oil ($/bbl)
Commodity forwards/futures
Notional value on power
Average commodity forward/future price on power (€/MWh)
Notional value on coal/shipping
Average commodity forward/future price on coal/shipping ($/ton)
Average commodity forward/future price on gas (€/MWh)
Notional value on CO2
Average commodity forward/future price on CO2 (€/ton)
Notional value on oil
Average commodity forward/future price on oil ($/bbl)
Commodity options
Notional value on power
Average commodity option price on power (€/MWh)
Notional value on gas
Average commodity option price on gas (€/MWh)
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
Maturity
2022
2023
2024
2025
2026 Beyond
Total
164
53.7
372
13.7
244
168
47.5
129
12.1
99
149
46.6
11
9.4
-
146
46.0
17
12.0
-
472
33.2
93
9.6
-
92.9
79.4
302
20.0
-
5
18.0
-
-
21
29.9
-
288
19.7
248
18.7
856
16.6
-
-
-
-
-
-
-
-
-
-
-
-
21
29.8
-
21
29.8
-
134
32.6
-
124
51.8
131
63.8
669
86.4
319
29.7
14
90.8
637
43.3
-
18.9
61
38.4
57
51.6
21
29.3
-
15.1
476
46.1
600
37.7
10
26.3
99
50.5
1,223
753
1,012
2,650
14
4,368
537
657
228
99
Maturity
2021
2022
2023
2024
2025 Beyond
Total
78
40.3
32
51.2
-
1,065
43.2
1,521
14.3
317
24.2
744
45.0
65
37.9
2
57.9
-
244
25.0
973
14.9
134
26.6
413
44.3
64
37.7
-
-
246
19.1
17
15.2
37
27.9
-
-
8
9
65
37.7
-
-
197
17.9
20
4.9
-
-
9
53
37.6
-
-
191
17.4
20
4.9
-
-
9
606
34
-
2,684
2,659
488
1,157
80
281
37.7
-
-
741
15.2
108
2.5
-
-
45
31.7
Average commodity option price on power (€/MWh)
29.7
26.4
26.4
26.4
402
402
Integrated Annual Report 2021
The following table reports the notional amount and fair
value of instruments hedging commodity price risk on
transactions outstanding at December 31, 2021 and De-
cember 31, 2020, broken down by type of commodity.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
Derivatives
Cash flow hedges
Derivatives on power:
- swaps
- forwards/futures
- options
820
769
229
369
2,066
70
640
351
49
Total derivatives on power
1,818
2,505
1,040
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
-
14
-
14
669
3,094
30
3,793
-
537
-
537
34
-
-
34
-
1,674
11
1,685
-
482
-
482
-
3
-
3
69
2,557
3
2,629
-
410
-
410
70
361
-
431
11
-
-
11
-
456
18
474
-
139
-
139
401
1,881
-
2,282
-
-
-
-
1,095
1,932
70
236
571
-
807
-
-
-
-
-
(263)
(598)
(18)
(879)
-
-
-
-
(99)
(56)
(16)
-
(72)
-
-
-
-
-
2,189
(5,150)
-
(26)
(455)
-
3,097
2,189
(5,275)
(455)
-
-
-
-
-
5
-
5
-
-
-
-
-
-
-
-
TOTAL COMMODITY DERIVATIVES
6,162
4,706
4,082
1,055
5,379
3,001
(6,154)
(527)
The table reports the notional amount and fair value of de-
rivatives hedging commodity price risk at December 31,
2021 and at December 31, 2020, broken down by type of
hedge.
The positive fair value of cash flow hedge derivatives on
commodities regards derivatives on gas and oil commod-
ities in the amount of €2,629 million, derivatives on CO2
(€410 million), derivatives on power (€1,040 million) and, to
a lesser extent, hedges of coal purchases requested by the
generation companies in the amount of €3 million.
The first category primarily regards hedges of fluctuations
in the price of natural gas, for both purchases and sales,
carried out for oil commodities and gas products.
The CO2 category mainly includes hedging transactions
undertaken for Enel Group compliance purposes.
The power category mainly includes medium/long-term
hedging transactions, especially in Spain and North Amer-
ica.
Cash flow hedge derivatives on commodities included in
liabilities regard derivatives on gas and oil commodities in
the amount of €5,275 million (mainly for derivatives hedg-
ing sales) and derivatives on power in the amount of €879
million.
Notes to the consolidated financial statements
403
403
Cash flow hedge derivatives
The following table shows the cash flows expected in com-
ing years from cash flow hedge derivatives on commodity
price risk.
Millions of euro
Cash flow hedge derivatives on commodities
Positive fair value
Negative fair value
Fair value
at Dec. 31,
2021
Distribution of expected cash flows
2022
2023
2024
2025
2026
Beyond
4,082
2,960
(6,154)
(4,892)
720
(858)
122
(126)
72
(84)
45
(58)
163
(136)
The following table shows the impact of cash flow hedges
of commodity price risk in the statement of financial posi-
tion at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
Gas and oil 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
1,221
-
1,764
2,675
14
377
-
(30)
(223)
3
377
-
(30)
(223)
3
5,027
(2,592)
(2,592)
537
204
99
410
7
(24)
410
7
(24)
605
34
-
2,717
-
3,794
487
70
-
23
11
-
375
-
(20)
139
-
-
11,541
(2,072)
(2,072)
7,707
528
23
11
-
356
-
(20)
139
-
-
509
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2021 and December 31, 2020.
Millions of euro
at Dec. 31, 2021
at Dec. 31, 2020
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
Hedging
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Future transactions in power
Future transactions in coal/
shipping
Future transactions in gas
and oil
Future transactions in CO2
Total
(297)
(3)
297
3
2,751
(2,751)
(410)
410
2,041
(2,041)
-
-
-
-
-
(29)
(316)
-
(2)
-
(31)
(11)
20
(139)
(446)
374
11
(20)
139
504
-
-
-
-
-
24
-
-
-
24
Finally, with regard to cash flow hedge derivatives on com-
modity prices, in 2021 the entire commodities market
experienced major price swings. The greatest impact in
terms of changes in the hedging reserve is attributable to
future transactions in gas, which of all commodities was
the one most affected by the high volatility.
404
404
Integrated Annual Report 2021
49.2 Derivatives at fair value through profit or loss
The following table shows the notional amount and the fair
value of derivatives at FVTPL as at December 31, 2021 and
December 31, 2020.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
at Dec. 31,
2021
at Dec. 31,
2020
Derivatives at FVTPL
on interest rates:
- interest rate swaps
- interest rate options
on exchange rates:
50
-
50
-
- currency forwards
2,180
3,501
1
-
23
-
(78)
3,368
78
3,368
4
63
-
67
(1,049)
16,706
268
2
-
83
-
14
75
24
100
50
3,628
-
1,088
17,970
113
100
50
1,012
-
109
5,626
9
(71)
(2)
(62)
-
(198)
(2,927)
(16)
(88)
(4)
(44)
-
(18)
(428)
(12)
113
19,171
5,744
(3,141)
(458)
4
40
-
44
81
2,108
165
133
455
-
588
4,199
16,755
399
16
144
-
160
259
14,121
170
23
(148)
-
(125)
1,843
(17,374)
(402)
(1)
(27)
-
(28)
(34)
(1,999)
(173)
-
-
777
23,207
3
23,987
35
213
-
248
2,904
19,001
232
144
5,493
137
5,774
47
200
-
247
635
13,993
185
22,137
14,813
15,925
2,354
21,353
14,550
(15,933)
(2,206)
-
3,079
-
3,079
-
-
-
-
-
-
770
-
770
-
195
-
195
4
-
557
-
557
-
-
-
-
-
-
209
-
209
-
9
-
9
3
-
1,366
-
1,366
1
-
-
1
-
-
290
5
295
13
234
-
247
3
-
(530)
-
(530)
(1)
-
-
(1)
-
-
(72)
(5)
(77)
(7)
(1)
-
(8)
(3)
- CCIRSs
on commodities
Derivatives on power:
- swaps
- forwards/futures
- options
Total derivatives on
power
Derivatives on coal:
- swaps
- forwards/futures
- options
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
- options
Total derivatives on other
Embedded derivatives
TOTAL
51,681
25,354
19,941
2,817
46,257
22,161
(19,865)
(2,916)
At December 31, 2021 the notional amount of trading deriv-
atives on interest rates came to €200 million. The negative
fair value of €72 million improved by €18 million on the pre-
vious year, mainly due to developments in the yield curve.
At December 31, 2021, the notional amount of derivatives
on exchange rates was €5,808 million. The overall increase
in their notional value of €1,295 million and the decrease in
the associated net fair value of €78 million mainly reflected
normal operations and developments in exchange rates.
Notes to the consolidated financial statements
405
405
At December 31, 2021, the notional amount of derivatives
on commodities came to €91,930 million. The fair value
of trading derivatives on commodities classified as assets
mainly reflects the market valuation of hedges of gas and
oil amounting to €15,925 million, derivatives on power
amounting to €3,368 million, derivatives on CO2 amount-
ing to €557 million and, to a lesser extent, derivatives on
coal totaling €67 million.
The fair value of trading derivatives on commodities
classified as liabilities mainly regards hedges of gas and
oil amounting to €15,933 million, derivatives on power
amounting to €3,141 million and derivatives on CO2 and
Fair value measurement
50. Assets and liabilities measured at fair
value
The Group determines fair value in accordance with IFRS 13
whenever such measurement is required by the IFRSs 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 trans-
action, 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
publicly 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,
depending on the inputs and valuation techniques used in
determining their fair value:
• Level 1, where the fair value is determined on the basis
of quoted prices (unadjusted) in active markets for iden-
tical assets or liabilities that the entity can access at the
measurement date;
• Level 2, where the fair value is determined on the basis of
inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly
(such as prices) or indirectly (derived from prices);
coal in the amount of €530 million and €125 million, re-
spectively.
These amounts include transactions managed within the
trading portfolios and transactions that, although estab-
lished for hedging purposes, did not meet the require-
ments for hedge accounting.
The “other” category includes hedges using weather deriv-
atives. In addition to commodity risk, the Group companies
are also exposed to changes in volumes associated with
weather conditions (for example, temperature impacts the
consumption of gas and power).
• Level 3, where the fair value is determined on the basis of
unobservable inputs.
This note also provides detailed disclosures concerning
the valuation techniques and inputs used to perform these
measurements.
To that end:
• recurring fair value measurements of assets or liabilities
are those required or permitted by the IFRSs in the state-
ment of financial position at the close of each period;
• non-recurring fair value measurements are those re-
quired or permitted by the IFRSs in the statement of fi-
nancial position in particular circumstances.
For general information or specific disclosures on the ac-
counting treatment of these circumstances, please see
note 2 “Accounting policies”.
50.1 Assets measured at fair value in the
statement of financial position
The following table shows, for each class of assets meas-
ured at fair value on a recurring or non-recurring basis in
the statement of financial position, the fair value measure-
ment at the end of the reporting period and the level in the
fair value hierarchy into which the fair value measurements
of those assets are classified.
406
406
Integrated Annual Report 2021
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
at Dec. 31, 2021
at Dec. 31, 2021
Equity investments in other companies at FVOCI
28
41
4
15
22
Securities at FVOCI
Securities at FVTPL
28.1, 29.1
29.1
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
28
28
28
49
49
49
49
49
49
49
49
49
Contingent consideration
30, 31
The fair value of “Equity investments in other companies
at FVOCI” is determined for listed companies on the basis
of the quoted price at the close of the year, while that for
unlisted companies is based on a reliable valuation of the
relevant assets and liabilities.
“Financial assets from service concession arrangements at
FVTPL” concern electricity distribution operations in Brazil,
mainly by Enel Distribuição Rio de Janeiro, Enel Distribuição
Ceará, and Enel Distribuição São Paulo, as well as the gener-
ation plant of PH Chucas in Costa Rica, and are accounted
for in accordance with IFRIC 12.
Fair value was estimated as the net replacement cost based
on the most recent rate information available and on the
general price index for the Brazilian market.
The current portion of “Loan assets and other financial as-
sets measured at fair value” essentially regards investments
of liquidity. Their fair value is determined using Level 1 mar-
ket inputs.
Level 3 of the non-current portion of “Loan assets and other
financial assets measured at fair value” reports the receiv-
able in respect of the sale of Slovak Power Holding, which
amounted to €25 million at December 31, 2021. Its fair value
was determined using the contractual price formula.
The fair value of derivative contracts is determined using the
official prices for instruments traded on regulated markets.
404
404
-
32
-
23
2,630
25
19
42
19
1,356
-
-
-
-
-
-
-
-
-
2,630
-
-
9
-
-
87
1
-
-
-
87
1
-
-
-
25
140
140
19
42
19
1,356
-
-
-
-
-
-
-
104
-
-
-
-
-
-
-
-
-
-
-
-
-
104
-
-
-
-
-
-
-
-
-
-
1,059
332
387
340
3,023
1,066
1,681
276
-
-
-
-
-
-
277
114
162
-
-
-
-
-
-
-
-
1
-
-
1
23
-
-
1
23
19,640 8,236 11,404
55
15
53
-
2
2
-
-
-
-
13
The fair value of instruments not listed on a regulated mar-
ket is determined using valuation methods appropriate for
each type of financial instrument and market data as of the
end of the reporting period (such as interest rates, exchange
rates, volatility), discounting expected future cash flows on
the basis of the market yield curve and translating amounts
in currencies other than the euro using exchange rates pro-
vided by the World Markets Refinitiv (WMR) Company.
Derivatives on interest rates and exchange rates are all
measured using Level 2 inputs.
The fair value of derivatives on commodities is almost al-
ways measured using Level 1 or Level 2 inputs, as the deter-
mination is based on market inputs as these contracts are
entered into with exchange counterparties, leading sector
operators or financial institutions.
Marginal exceptions for both cash flow hedges and trading
transactions include certain derivatives relating to weather
derivatives, which are measured on the basis of certified
historical data for the underlying variables as well as cer-
tain long-term financial contracts (virtual power purchase
agreements, or VPPAs), for which internal measurement
models were also used in part in order to measure these in-
struments over longer time horizons, given the illiquidity of
the underlying variables.
In accordance with the IFRSs, the Group assesses credit
risk, both of the counterparty (Credit Valuation Adjustment
or CVA) and its own (Debit Valuation Adjustment or DVA), in
order to adjust the fair value of financial instruments for the
Notes to the consolidated financial statements
407
407
corresponding amount of counterparty risk where neces-
sary. More specifically, the Group measures CVA/DVA us-
ing a Potential Future Exposure valuation technique for the
net exposure of the position and subsequently allocating
the adjustment to the individual financial instruments that
make up the overall portfolio. All of the inputs used in this
technique are observable on the market.
50.2 Assets not measured at fair value in the
statement of financial position
For each class of assets not measured at fair value on a
recurring basis but whose fair value must be reported, the
following table reports the fair value at the end of the year
and the level in the fair value hierarchy into which the fair
value measurements of those assets are classified.
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
at Dec. 31,
2021
at Dec. 31,
2021
Investment property
Inventories
21
32
150
-
15
-
-
-
135
-
-
50
-
-
-
1
-
49
The table reports the fair value of investment property and
inventories of real estate not used in the business in the
amount of €150 million and €50 million respectively. The
amounts were calculated with the assistance of apprais-
als conducted by independent experts, who used different
methods depending on the specific assets involved.
50.3 Liabilities measured at fair value
in the statement of financial position
The following table reports for each class of liabilities
measured at fair value on a recurring or non-recurring
basis in the statement of financial position the fair value
measurement at 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
at Dec. 31,
2021
at Dec. 31,
2021
Fair value hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Cash flow hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
49
49
49
49
49
49
49
49
49
Contingent consideration
40, 41
5
-
-
620
1,244
1,301
-
2
167
84
-
-
-
-
-
5
-
-
620
1,244
-
-
-
-
-
-
-
-
9
49
-
-
-
-
-
-
-
-
9
49
416
742
143
4,853
2,366
2,480
-
-
72
-
-
2
95
-
-
-
-
84
73
60
-
-
73
60
19,563
7,628
11,934
45
-
43
-
-
-
-
-
7
-
-
1
2
Contingent consideration mainly regards a number of eq-
uity investments held by the Group in North America and
Greece, whose fair value was determined on the basis of
the contractual terms and conditions.
408
408
Integrated Annual Report 2021
50.4 Liabilities not measured at fair value
in the statement of financial position
For each class of liabilities not measured at fair value in the
statement of financial position but whose fair value must
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
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
at Dec. 31, 2021
46.3.1
46.3.1
46.3.1
46.3.1
46.3.1
46.3.1
42,949
39,709
3,273
147
2,298
11,091
3,046
95
-
-
-
-
3,240
3,126
2,298
11,091
3,046
95
62,752
39,856
22,896
-
-
-
-
-
-
-
For listed debt instruments, the fair value is given by official
prices. For unlisted instruments the fair value is determined
using appropriate valuation techniques for each category
of financial instrument and market data at the close of the
year, including the credit spreads of Enel.
Other information
51. Share-based payments
Starting in 2019, the Shareholders’ Meeting of Enel SpA
(“Enel” or the “Company”) has each year approved the
adoption of long-term share-based incentive plans for the
management of Enel and/or its subsidiaries pursuant to
Article 2359 of the Italian Civil Code. Each of the incentive
plans approved (the 2019 Long-Term Incentive Plan, the
2020 Long-Term Incentive Plan and the 2021 Long-Term
Incentive Plan; referred to hereinafter, respectively, the
“2019 LTI Plan”, the “2020 LTI Plan” and the “2021 LTI Plan”
and, jointly, the “Plans”) provides for the grant of ordinary
Company shares (“Shares”) to the respective beneficiaries
subject to the achievement of specific performance tar-
gets.
Plan beneficiaries are the Chief Executive Officer/General
Manager of Enel and Enel Group managers in the positions
most directly responsible for company performance or
considered to be of strategic interest. The Plans provide
for the award to the beneficiaries of an incentive consist-
ing of a monetary component and an equity component.
This incentive – determined, at the time of the award, as
a base value calculated in relation to the fixed remuner-
ation of the individual beneficiary – may vary depending
on the degree of achievement of each of the three-year
performance targets of the Plans, ranging from zero up to
a maximum of 280% or 180% of the base value in the case,
respectively, of the Chief Executive Officer/General Man-
ager or the other beneficiaries.
The Plans establish that, of the total incentive effectively
vested, the bonus will be fully paid in shares in the amount
of (i) up to 100% of the base value for the Chief Executive
Officer/General Manager and (ii) up to 50% of the base val-
ue for the other beneficiaries.
The actual award of the bonus under the Plans is subject
to the achievement of specific performance targets dur-
ing the three year performance period. If these targets are
achieved, 30% of both the equity and cash components
of the incentive will be paid in the first year following the
end of the performance period and the remaining 70% will
be paid in the second year following the end of the per-
formance period. The payment of a substantial portion
of long-term variable remuneration (70% of the total) is
therefore deferred to the second year following the end of
the performance period of the individual Plans.
The following table provides information on the 2019 LTI
Plan, the 2020 LTI Plan and the 2021 LTI Plan.
For more information on the characteristics of the Plans,
please see the information documents prepared pursuant
Notes to the consolidated financial statements
409
409
to Article 84-bis of the CONSOB Regulation issued with
Resolution no. 11971 of May 14, 1999 (the Issuers Regu-
lation), which are available to the public in the section of
Enel’s website (www.enel.com) dedicated to the Sharehold-
ers’ Meetings held respectively on May 16, 2019, May 14,
2020 and May 20, 2021.
2019 LTI Plan
2020 LTI Plan
2021 LTI Plan
Grant date
Performance period
Verification of achievement
of targets
12.11.2019(28)
17.09.2020(30)
16.09.2021(32)
2019-2021
2020-2022
2021-2023
2022(29)
2023(31)
2024(33)
Payout
2022-2023
2023-2024
2024-2025
In implementation of the authorizations granted by the
Shareholders’ Meetings held on May 16, 2019, May 14, 2020
and May 20, 2021 and in compliance with the associated
terms and conditions, the Board of Directors approved —
at its meetings of September 19, 2019, July 29, 2020 and
June 17, 2021 — the launch of share buyback programs to
serve the 2019 LTI Plan, the 2020 LTI Plan and the 2021 LTI
Plan respectively. The number of Shares whose purchase
was authorized by the Board of Directors for each Plan,
the actual number of Shares purchased, the associated
weighted average price and total value are shown below.
Purchases authorized by the Board of Directors
Number of shares
Number of shares
Actual purchases
Weighted average
price (euros per
share)
Total value (euros)
2019 LTI Plan
2020 LTI Plan
2021 LTI Plan
No more than 2,500,000
for a maximum amount of €10,500,000 million
1,720,000
1,620,000
1,549,152(34)
1,720,000(35)
1,620,000(36)
6.7779
7.4366
7.8737
10,499,999
12,790,870
12,755,459
As a result of the purchases made to support the 2019 LTI
Plan, the 2020 LTI Plan and the 2021 LTI Plan, at December
31, 2021 Enel holds a total of 4,889,152 treasury shares,
equal to about 0.048% of share capital.
The following information concerns the equity instruments
granted in 2019, 2020 and 2021.
2021
2020
2019
Number of
shares granted
at the grant
date
Fair value per
share at the
grant date
Number
of shares
potentially
available for
award
1,529,182
Number of
shares granted
at the grant
date
Fair value per
share at the
grant date
Number
of shares
potentially
available for
award
Number of
shares granted
at the grant
date
Fair value per
share at the
grant date
Number
of shares
potentially
available for
award
1,529,182
1,538,547
6.983
1,538,547
1,638,775
1,638,775(37)
7.38
1,638,775(38)
1,577,773
7.001
1,577,773
2019 LTI
Plan
2020 LTI
Plan
2021 LTI
Plan
(28) 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
proposal issued by the Nomination and Compensation Committee at its meeting of November 11, 2019).
(29) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2021, the Board of Directors will verify the level
of achievement of the performance targets of the 2019 LTI Plan.
(30) 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
proposal issued by the Nomination and Compensation Committee at its meeting of September 16, 2020).
(31) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2022, the Board of Directors will verify the level
of achievement of the performance targets of the 2020 LTI Plan.
(32) The date on which the Board of Directors approved the procedures and timing for granting the 2021 LTI Plan to the beneficiaries (taking account of the
proposal issued by the Nomination and Compensation Committee at its meeting of June 9, 2021).
(33) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2023, the Board of Directors will verify the level
of achievement of the performance targets of the 2021 LTI Plan.
(34) Shares purchased in the period between September 23 and December 2, 2019, equal to about 0.015% of share capital.
(35) Shares purchased in the period between September 3 and October 28, 2020, equal to about 0.017% of share capital.
(36) Shares purchased in the period between June 18 and July 21, 2021, equal to about 0.016% of share capital.
(37) The figure has been restated from that published in the financial statements for 2020.
(38) The figure has been restated from that published in the financial statements for 2020.
410
410
Integrated Annual Report 2021
The fair value of those equity instruments is measured on
the basis of the market price of Enel Shares at the grant
date.(39)
The cost of the equity component is determined on the
basis of the fair value of the equity instruments granted
and is recognized over the duration of the vesting period
through an equity reserve.
The total costs recognized by the Group through profit or
loss amounted to €9 million in 2021 (€5 million in 2020).
There have been no terminations or amendments involving
the 2019 LTI Plan, the 2020 LTI Plan or the 2021 LTI Plan.
52. Related parties
As an operator in the field of generation, distribution,
transport and sale of electricity and the sale of natural gas,
Enel carries out transactions with a number of companies
directly or indirectly controlled by the Italian State, the
Group’s controlling shareholder.
The table below summarizes the main types of transac-
tions carried out with such counterparties.
Related party
Relationship
Nature of main transactions
Single Buyer
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
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)
ESO - Energy
Services Operator
Fully controlled (directly) by the Ministry for the
Economy and Finance
Sale of subsidized electricity
Payment of A3 component for renewable resource incentives
EMO - Energy
Markets Operator
Fully controlled (indirectly) by the
Ministry for the Economy and Finance
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
transactions with associates or companies in which it
holds non-controlling interests.
Finally, Enel also maintains relationships with the pension
funds FOPEN and FONDENEL, as well as Fondazione Enel
and Enel Cuore, an Enel non-profit company devoted to
providing social and healthcare assistance.
All transactions with related parties were carried out on
normal market terms and conditions, which in some cas-
es are determined by the Regulatory Authority for Energy,
Networks and the Environment.
The following tables summarize transactions with related
parties, associates and joint ventures outstanding at De-
cember 31, 2021 and December 31, 2020 and carried out
during the period.
(39) 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.
For the 2021 LTI Plan, the grant date is September 16, 2021, i.e., the date of the meeting of the Board of Directors that approved the procedures and timing
of the grant under the 2021 LTI Plan to the beneficiaries.
Notes to the consolidated financial statements
411
411
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group(1)
Other
Total 2021
ventures
Overall total 2021
% of total
Total in financial
statements
Associates and joint
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group(1)
Other
Total at Dec. 31, 2021
ventures
Associates and joint
Overall total at Dec. 31,
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Millions of euro
Income statement
Revenue from sales and services
Other income
Other financial income
Electricity, gas and fuel purchases
4,613
6,363
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
-
6
-
-
75
198
-
-
(1) The figure includes Open Fiber SpA, which was considered an associate last year.
3,018
275
3,165
210
-
-
-
-
-
3
-
-
-
5
15
2,572
2,874
13
13
10
-
-
-
57
1
-
-
Millions of euro
Statement of financial position
Other non-current financial assets
Non-current financial derivative assets
Other non-current assets
Trade receivables
Current financial derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Non-current contract liabilities
Non-current financial derivative liabilities
Short-term borrowings
Current portion of long-term
borrowings
Trade payables
1,903
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
-
-
-
-
-
(1) The figure includes Open Fiber SpA, which was considered an associate last year.
412
412
Integrated Annual Report 2021
-
-
-
469
-
-
-
-
-
-
-
-
641
-
-
40
-
-
-
-
-
9
-
-
76
-
-
-
-
-
1
-
-
-
-
-
-
-
119
659
-
-
21
536
187
-
-
89
1,466
12
38
11
138
401
-
-
-
36
-
1
2
-
7
-
-
-
12
-
38
59
36
-
6,668
5
15
13,548
3,009
218
13
10
119
1,173
-
-
-
1
99
536
194
-
-
89
12
76
110
174
401
4,023
342
1
123
278
143
-
11
22
1,120
14
-
148
32
156
24
344
20
59
-
1
6
-
4
-
-
-
7,010
6
138
13,826
3,152
218
24
32
2021
1,120
14
119
1,321
32
157
123
880
194
1
6
109
4,082
12
80
110
174
401
84,104
3,902
1,882
49,093
19,609
2,095
2,522
6,114
5,704
2,772
3,268
16,076
22,791
8,645
5,002
54,500
6,214
3,339
13,306
4,031
16,959
1,433
12,959
8.3%
0.2%
7.3%
28.2%
16.1%
10.4%
1.0%
0.5%
19.6%
0.5%
3.6%
8.2%
0.1%
1.8%
2.5%
1.6%
3.1%
-
-
2.7%
24.1%
0.8%
0.6%
Revenue from sales and services
3,018
275
3,165
210
Millions of euro
Income statement
Other income
Other financial income
Electricity, gas and fuel purchases
4,613
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
(1) The figure includes Open Fiber SpA, which was considered an associate last year.
-
-
-
-
6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,363
75
198
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
469
1,903
641
-
-
-
3
-
-
-
-
-
-
9
-
-
-
-
-
-
-
1
-
-
-
-
-
76
2,572
2,874
5
15
13
13
10
119
659
21
536
187
-
-
-
-
-
-
1,466
89
12
38
11
138
401
57
-
-
-
1
-
-
36
-
-
-
-
1
2
-
7
-
-
-
12
-
38
59
36
-
Millions of euro
Statement of financial position
Other non-current financial assets
Non-current financial derivative assets
Other non-current assets
Trade receivables
Current financial derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Non-current contract liabilities
Non-current financial derivative 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
(1) The figure includes Open Fiber SpA, which was considered an associate last year.
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group(1)
Other
Total 2021
Associates and joint
ventures
Overall total 2021
Total in financial
statements
% of total
6,668
5
15
13,548
3,009
218
13
10
342
1
123
278
143
-
11
22
7,010
6
138
13,826
3,152
218
24
32
84,104
3,902
1,882
49,093
19,609
2,095
2,522
6,114
8.3%
0.2%
7.3%
28.2%
16.1%
10.4%
1.0%
0.5%
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group(1)
Other
Total at Dec. 31, 2021
Associates and joint
ventures
Overall total at Dec. 31,
2021
Total in financial
statements
% of total
-
-
119
1,173
-
1
99
536
194
-
-
89
4,023
12
76
110
174
401
1,120
14
-
148
32
156
24
344
-
1
6
20
59
-
4
-
-
-
1,120
14
119
1,321
32
157
123
880
194
1
6
109
4,082
12
80
110
174
401
5,704
2,772
3,268
16,076
22,791
8,645
5,002
54,500
6,214
3,339
13,306
4,031
16,959
1,433
12,959
19.6%
0.5%
3.6%
8.2%
0.1%
1.8%
2.5%
1.6%
3.1%
-
-
2.7%
24.1%
0.8%
0.6%
Notes to the consolidated financial statements
413
413
Millions of euro
Income statement
Revenue from sales and services
Other income
Financial income
Single Buyer
EMO
-
-
-
808
-
-
Electricity, gas and fuel purchases
2,038
2,059
Costs for services and other materials
Other operating costs
Results from commodity contracts
Other financial expense
-
6
-
-
38
183
-
-
ESO
295
-
-
-
3
-
-
-
Cassa Depositi e
Prestiti Group
Other
Total 2020
ventures
Overall total 2020
% of total
Total in financial
statements
Associates and joint
2,542
-
-
1,122
2,728
9
1
13
187
1
-
-
44
1
-
-
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
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
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group
Other
Total
Associates and joint
at Dec. 31, 2020
ventures
Overall total
at Dec. 31, 2020
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
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
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
1,144
1,144
63,642(1) (2)
2,362
2,676(2)
26,026(1)
18,366(1)
2,202
(99)(1)
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
6.3%
0.4%
2.3%
20.7%
16.1%
9.2%
-1.0%
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%
414
414
Integrated Annual Report 2021
(1) The figures for 2020 have been adjusted, for comparative purposes only, to take account of the effects associated with the change in classification connect-
ed with the fair value measurement of outstanding contracts at the end of the period for the purchase and sale of commodities with physical settlement.
The change in classification had no impact on operating profit. For more details, please see note 7 to these consolidated financial statements.
(2) For comparative purposes only, €87 million in 2020 in respect of the component recognized through profit or loss deriving from the remeasurement at fair
value of the financial assets connected with service concession arrangements involving distribution operations in Brazil falling within the scope of IFRIC 12
have been reclassified from financial income to revenue. The latter classification had an impact of the same amount on operating profit. For more details,
please see note 7 to these consolidated financial statements.
Millions of euro
Income statement
Revenue from sales and services
Other income
Financial income
Costs for services and other materials
Other operating costs
Results from commodity contracts
Other financial expense
Electricity, gas and fuel purchases
2,038
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
-
-
-
-
6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
808
2,059
38
183
-
-
-
-
-
-
-
-
-
-
-
-
35
-
-
-
9
250
ESO
295
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
84
1,122
2,728
-
-
9
1
13
569
63
625
-
-
-
4
-
89
748
-
15
13
157
102
554
83
746
44
1
-
-
1
-
-
29
-
-
1
2
-
6
-
-
5
1
13
83
36
2
Single Buyer
EMO
Cassa Depositi e
Prestiti Group
Other
Total 2020
Associates and joint
ventures
Overall total 2020
Total in financial
statements
% of total
2,542
187
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
63,642(1) (2)
2,362
2,676(2)
26,026(1)
18,366(1)
2,202
(99)(1)
4,485
6.3%
0.4%
2.3%
20.7%
16.1%
9.2%
-1.0%
1.6%
Single Buyer
EMO
ESO
Cassa Depositi e
Prestiti Group
Other
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%
Notes to the consolidated financial statements
415
415
With regard to disclosures on the remuneration of di-
rectors, members of the Board of Statutory Auditors, the
General Manager and key management personnel, provid-
ed for under IAS 24, please see the following tables.
Millions of euro
Remuneration of members of the Board of Directors and Board of
Statutory Auditors and the General Manager
Short-term employee benefits
Other long-term benefits
Total
Millions of euro
Remuneration of key management personnel
Short-term employee benefits
Other long-term benefits
Total
2021
2020
Change
5
1
6
6
4
10
(1)
(3)
(4)
-16.7%
-75.0%
-40.0%
2021
2020
Change
13
4
17
13
8
21
-
(4)
(4)
-
-50.0%
-19.0%
In November 2010, the Board of Directors of Enel SpA ap-
proved a procedure governing the approval and execution
of transactions with related parties carried out by Enel
SpA directly or through subsidiaries. The procedure (both
the version in effect until June 30, 2021 and the version
amended in June 2021 and in effect from July 1, 2021 are
available at https://www.enel.com/investors/governance/
bylaws-rules-policies/) sets out rules designed to ensure
the transparency and procedural and substantive propri-
ety of transactions with related parties. It was adopted in
implementation of the provisions of Article 2391-bis of the
Italian Civil Code and the implementing regulations issued
by CONSOB. In 2021, no transactions were carried out for
which it was necessary to make the disclosures required
In the rules on transactions with related parties adopted
with CONSOB Resolution no. 17221 of March 12, 2010, as
amended.
416
416
Integrated Annual Report 2021
53. 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
as amended, the following provides information on grants
received from Italian public agencies and bodies, as well as
donations by Enel SpA and the fully consolidated subsidi-
aries to companies, individuals and public and private enti-
ties. The disclosure comprises: (i) grants received from Ital-
ian public entities/State entities; and (ii) donations made
by Enel SpA and Group subsidiaries to public or private
parties resident or established in Italy.
The following disclosure includes payments in excess of
€10,000 made by the same grantor/donor during 2021,
even if made in multiple financial transactions. They are
recognized on a cash basis.
Pursuant to the provisions of Article 3-quater of Decree
Law 135 of December 14, 2018, ratified with Law 12 of Feb-
ruary 11, 2019, for grants received, please refer to the in-
formation contained in the National Register of State Aid
referred to in Article 52 of Law 234 of December 24, 2012.
Grants received in millions of euro
Financial
institution/Grantor Beneficiary
Amount
Notes
Anpal
Anpal
Anpal
Enel Green Power
Italy Srl
Enel Green Power
Italy Srl
Enel Green Power
Italy Srl
Invitalia
Enel Green Power
Italy Srl
0.02
0.05
0.09
8.44
Anpal
Enel Energia SpA
0.03
Anpal
Enel Energia SpA
0.15
Anpal
Enel Energia SpA
0.04
Anpal
Anpal
Anpal
Anpal
Anpal
Servizio Elettrico
Nazionale SpA
Servizio Elettrico
Nazionale SpA
Servizio Elettrico
Nazionale SpA
Enel Global Trading
SpA
Enel Global Trading
SpA
Anpal
Enel X Srl
0.03
0.03
0.02
0.01
0.01
0.01
Anpal
Enel X Srl
0.03
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received under 3SUN Development Contract, financed under
Invitalia Measure of November 17, 2017
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-10223, financed through the New
Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the ministerial
decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-10223, financed through the New
Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the ministerial
decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-10223, financed through the New
Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the ministerial
decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Notes to the consolidated financial statements
417
417
Grants received in millions of euro
Financial
institution/Grantor Beneficiary
Amount
Notes
Anpal
Enel X Srl
0.01
Anpal
Enel Sole Srl
0.01
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Anpal
Enel Produzione
SpA
Enel Produzione
SpA
Enel Produzione
SpA
Enel Global
Services Srl
Enel Global
Services Srl
Enel Global
Services Srl
e-distribuzione
SpA
e-distribuzione
SpA
e-distribuzione
SpA
Enel Global
Infrastructure and
Networks Srl
Enel Global
Infrastructure and
Networks Srl
0.03
0.05
0.06
0.01
0.13
0.02
0.44
0.19
0.20
0.09
0.07
Anpal
Enel Italia SpA
0.03
Anpal
Enel Italia SpA
0.07
Instalment of grant received in third instance FNC-C-10223, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in third instance FNC-C-10223, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in third instance FNC-C-10223, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-10223, financed through the New
Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the ministerial
decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in third instance FNC-C-10223, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in third instance FNC-C-10223, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in first instance FNC-C-05468, financed through the
New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Instalment of grant received in second instance FNC-C-06952, financed through
the New Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the
ministerial decree of October 9, 2020
Anpal
Enel Italia SpA
0.02
Instalment of grant received in first instance FNC-C-10223, financed through the New
Skills Fund referred to in Article 88 of Decree Law of May 19, 2020 and the ministerial
decree of October 9, 2020
Ministry of
Universities and
Research (MUIR)
Enel Italia SpA
0.03
Instalment of grant received for first and second progress status report for Project
SE4I, financed under MUIR NOP “R&I” 2014-2020, Decree of Director 1735/Ric. of
July 13, 2017 “Notice for the presentation of industrial research and experimental
development projects in the 12 specialist areas indicated in the 2015-2020 NRP”
10.43
Total
418
418
Integrated Annual Report 2021
Donations made in millions of euro
Grantor
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Beneficiary
Enel Cuore Onlus
OECD International Energy
Agency (IEA)
Ashoka Italy Onlus
European University Institute
Università Commerciale Luigi
Bocconi
Enel X Srl
Enel Cuore Onlus
Enel Produzione SpA
Ente della zona industriale di
Porto Marghera
Enel Produzione SpA
Assocarboni
Enel Produzione SpA
Fondazione Centro Studi Enel
Enel Produzione SpA
Enel Cuore Onlus
Enel Produzione SpA
Enel Cuore Onlus
Enel Produzione SpA
Enel Cuore Onlus
Enel Produzione SpA
Fondazione Centro Studi Enel
Enel Produzione SpA
Assonime
Enel Italia SpA
ASES - Agricoltori,
Sostenibilità E Sviluppo
(Associazione non profit)
Enel Italia SpA
Comune di Brindisi
Enel Italia SpA
Enel Cuore Onlus
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Fondazione Accademia
Nazionale “Santa Cecilia”
Fondazione Centro Studi Enel
Fondazione Maggio Musicale
Fiorentino
Moige - Movimento italiano
genitori Onlus
Società Cooperativa Sociale
Camelot Onlus
Enel Italia SpA
Fondazione Teatro alla Scala
e-distribuzione SpA
Enel Cuore Onlus
e-distribuzione SpA
Enel Cuore Onlus
e-distribuzione SpA
Fondazione Centro Studi Enel
e-distribuzione SpA
Fondazione Centro Studi Enel
e-distribuzione SpA
Centro Vaccinale - Varese
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
Anigas
Anigas
Anigas
Confimprese
Fondazione Centro Studi Enel
Fondazione Centro Studi Enel
Assonime
Enel Cuore Onlus
Enel Cuore Onlus
Enel Global Trading SpA
Enel Cuore Onlus
Enel Global Trading SpA
Fondazione Centro Studi Enel
Amount
Notes
0.04
0.08
0.02
0.10
0.07
0.04
0.02
0.03
0.09
0.13
0.04
0.03
0.09
0.03
0.02
0.01
2021 donation
2021 donation
2021 donation
2021 donation
Donation to support study grants
2021 donation
2021 association dues
Enel 2021 participation
50% advance on 2021 donation
Balance of 2021 donation
2021 donation
2021 special donation
2021 donation
2021 association dues
Donation for #lanaturanonsiferma project
Donation to support Brindisi Brilla project under patronage of
City of Brindisi, implemented in collaboration with Associazione
Il Cielo Itinerante. The project is intended to encourage young
people to study STEM fields (Science, Technology, Engineering and
Mathematics)
0.11
Donation to finance institutional activities, mainly aimed at
supporting projects consistent with the purposes of the association
1.20
Donation to support the Foundation’s cultural activities
0.15
0.40
0.10
0.02
0.60
2.44
0.52
1.40
1.41
0.01
0.08
0.10
0.10
0.01
1.23
1.01
0.02
1.26
0.37
0.04
0.10
Donation to support research projects and advanced training
Donation to support the Foundation’s cultural activities
Donation to support the Young Ambassadors Campaign for digital
citizenship to counter cyber risk, bullying and cyberbullying in all its
forms
Donation to support the project with the Sustainable Development
School to create learning courses for teachers in order to promote
global citizenship education
Donation to support the Foundation’s cultural activities
80% balance of 2019 donation
20% of 2021 donation
50% balance of 2020 donation
50% of 2021 donation
Donation of grid connection for healthcare facilities involved in
fighting COVID-19
Balance of 2020 association dues
Advance on 2021 association dues
Balance of 2021 association dues
2021 association dues
Balance of 2020 donation
50% advance on 2021 donation
2021 association dues
80% balance of 2019 donation
50% of 2021 donation
2021 donation
2021 donation to support research projects and advanced training
13.50
Total
Notes to the consolidated financial statements
419
419
54. 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:
at Dec. 31, 2021
at Dec. 31, 2020
Change
- sureties and other guarantees granted to third parties
4,937
11,451
(6,514)
Commitments to suppliers for:
- electricity purchases
- fuel purchases
- various supplies
- tenders
- other
Total
TOTAL
Compared with December 31, 2020, the increase of €3,844
million in commitments for electricity purchases is essential-
ly attributable to companies in Latin America, in particular in
Brazil, and mainly reflects exchange rate effects, high prices
due to inflation in the period and differences in the state of
progress of outstanding contracts.
The increase of €16,187 million in commitments for fuel pur-
chases mainly regards gas supplies, especially in Spain and
Italy, and reflected the increase in demand for natural gas and
in gas prices, as well as exchange rate effects.
For more details on the expiry of commitments and guar-
antees, please see the section “Commitments to purchase
commodities” in note 47.
The Group, acting through its subsidiary Enel Italia, has also
entered into two guarantee contracts with which it provid-
ed Open Fiber with the turnover necessary to participate in
two calls for tenders organized by Infratel (respectively, on
June 3, 2016 and August 8, 2016), which Open Fiber itself did
not have at the time of participation in those tenders. None-
theless, to date the profitability and financial position now
achieved by Open Fiber makes it highly unlikely that the guar-
antee will be called in.
55. Contingent assets and liabilities
The following reports the main contingent assets and lia-
bilities at December 31, 2021, which are not recognized in
the consolidated financial statements as they do not meet
the requirements provided for in IAS 37.
420
420
Integrated Annual Report 2021
71,244
58,042
1,631
4,668
6,187
141,772
146,709
67,400
41,855
1,511
3,604
4,348
118,718
130,169
3,844
16,187
120
1,064
1,839
23,054
16,540
Brindisi Sud thermal generation plant - Ash
dispute - Italy
With regard to the criminal investigation initiated by the
Public Prosecutor’s Office of the Court of Lecce in 2017
concerning the use of fly ash in the cement industry, the
Brindisi Sud power plant was involved in a criminal inves-
tigation that resulted in the issue of a preventive seizure
order that allowed operation of the plant subject to cer-
tain technical requirements. The order also provided for
the seizure of Enel Produzione assets and receivables in
an amount of about €523 million. On August 1, 2018, the
Lecce Public Prosecutor lifted its seizure of the plant, with
the consequent termination of the judicial custody/ad-
ministration of the facility and the restitution of the other
seized assets to Enel Produzione. The lifting of the seizure
order was granted as a result of the fact that during the
investigation the independent experts appointed by the
investigating magistrate at the Court of Lecce issued a re-
port, filed first in preliminary form on July 16, 2018 and de-
finitively on October 10, 2018, that confirmed the non-haz-
ardous nature of the ash, finding it suitable for use in the
cement-making process, as well as the appropriateness of
the operation of the plant. Although the seizure was lifted,
the preliminary investigation continued both against the
accused individuals and the company pursuant to Legis-
lative Decree 231 of June 8, 2001. Following the hearing of
January 22, 2019, ordered by the investigating magistrate
at the request of the Public Prosecutor to receive testimo-
ny from the experts on their report, the experts reiterat-
ed the non-hazardous nature of the ash produced by the
plant and the possibility of their use in the production of
cement.
Subsequently, a pre-trial hearing was conducted in 2021,
following which the pre-trial hearing judge granted peti-
tions to participate in the trial as civil plaintiff filed by the City
of Brindisi, which quantified damages at about €27 million,
requesting a provisional award of €8 million, and by the Re-
gion of Puglia, which has not yet quantified the damages
requested. The pre-trial hearing judge remanded all of the
defendants before the Court of Brindisi at the hearing of
December 9, 2021.
Brindisi Sud thermal generation plant -
Criminal proceedings against Enel employees
- Italy
Again with regard to the Brindisi Sud thermal generation
plant, a criminal proceeding was held before the Court of
Brindisi. A number of employees of Enel Produzione – cit-
ed as a liable party in civil litigation – have been accused of
causing criminal damage and dumping of hazardous sub-
stances with regard to the alleged contamination of land
adjacent to the plant with coal dust as a result of actions be-
tween 1999 and 2011. At the end of 2013, the accusations
were extended to cover 2012 and 2013. As part of the pro-
ceeding, injured parties, including the Province and City of
Brindisi, have submitted claims for total damages of about
€1.4 billion. In its decision of October 26, 2016, the Court of
Brindisi: (i) acquitted nine of the thirteen defendants for not
having committed the offense; (ii) ruled that it did not have to
proceed for two of the defendants as the offense was time-
barred; and (iii) convicted the remaining two defendants,
sentencing them with all the allowances provided for by law
to nine months’ imprisonment. With regard to payment of
damages, the Court’s ruling also: (i) denied all claims of pub-
lic parties and associations acting in the criminal proceed-
ing to recover damages; and (ii) granted most of the claims
filed by the private parties acting to recover damages, refer-
ring the latter to the civil courts for quantification without
granting a provisional award. The convicted employees and
the civilly liable defendant, Enel Produzione, as well as one of
the employees for whom the expiry of period of limitations
had been declared, appealed the conviction. On February
8, 2019, the Lecce Court of Appeal: (i) confirmed the trial
court ruling regarding the criminal convictions of two Enel
Produzione executives; (ii) denied the claims for damages of
some private appellants; (iii) granted some claims for dam-
ages, which had been denied in the trial court, referring the
parties, like the others – whose claims had been granted by
the trial court – to the civil courts for quantification, without
granting a provisional award; (iv) confirmed for the rest the
ruling of the Court of Brindisi except for extending litigation
costs to the Province of Brindisi, which had not been award-
ed damages at either the trial court or on appeal.
With a subsequent ruling, the Court of Appeal of Lec-
ce granted the appeal lodged by the Province of Brindisi
against the ruling, acknowledging that a material error had
been made and therefore recognizing the generic entitle-
ment of the Province to damages. The defendants filed an
appeal against ruling with the Court of Cassation. Follow-
ing the hearing of October 1, 2020, the Court of Cassation
overturned the ruling of the Court of Appeal of Lecce, with
referral to another section of the same court for a new pro-
ceeding. The new proceeding was held before the mixed
criminal section of the Court of Appeal of Lecce, which, at
the hearing of November 10, 2021, acquitted the defend-
ants for not having committed the offense and consequent-
ly revoked the civil rulings.
In addition to the proceeding above, two criminal proceed-
ings are also under way before the Courts of Reggio Cal-
abria and Vibo Valentia against a number of employees of
Enel Produzione for the offense of illegal waste disposal in
connection with alleged violations concerning the disposal
of waste from the Brindisi plant. Enel Produzione was not
named a liable party for civil damages in these proceedings.
Both of the aforementioned trials were resolved positively
for the employees of Enel Produzione: as regards the pro-
ceedings before the Court of Vibo Valentia, at the hearing
of June 17, 2021, the Court read out the operative portion of
the ruling, declaring that it should not proceed against the
defendants as the offences with which they were charged
were time-barred under the statute of limitations, also de-
nying the aggravating circumstance referred to in Article
434, paragraph 2 of the Criminal Code. The criminal pro-
ceedings before the Court of Reggio Calabria had ended
previously at the hearing of June 23, 2016. The court ac-
quitted the defendants because it found that no crime had
been committed for nearly all the most serious charges and
for expiration of the statute of limitations for one serious
charge and for all of the remaining charges involving minor
offenses.
Enel, Enel Energia and Servizio Elettrico
Nazionale antitrust proceeding - Italy
On May 11, 2017, the Competition Authority announced the
beginning of proceedings for alleged abuse of a dominant
position against Enel SpA (Enel), Enel Energia SpA (EE) and
Servizio Elettrico Nazionale SpA (SEN), with the concomitant
performance of inspections. The proceeding was initiated
on the basis of complaints filed by the Italian Association of
Energy Wholesalers and Traders (AIGET) and the company
Green Network SpA (GN), as well as a number of complaints
from individual consumers.
On December 20, 2018 the Competition Authority issued its
final ruling, with which it levied a fine on Enel SpA, SEN and
EE of €93,084,790.50, for abuse of a dominant position in
violation of Article 102 of the Treaty on the Functioning of
the European Union (TFEU).
Notes to the consolidated financial statements
421
421
The disputed conduct consisted in the adoption of a strat-
egy to exclude competitors from the free market for retail
power supply on the part of the Group’s operating compa-
nies, in particular EE, who allegedly used the privacy con-
sent given by consumers to channel their offers within the
Group in order to contact SEN customers who were still
being served on the regulated market.
With regard to other allegations made with the measure to
initiate the proceeding, concerning the organization and
performance of sales activities at physical locations (Enel
Points and Enel Point Partner Shops) and winback policies
reported by GN, the Competition Authority reached the
conclusion that the preliminary findings did not provide
sufficient evidence of any abusive conduct on the part of
Enel Group companies.
The companies involved challenged the measures of the
Competition Authority and filed an appeal to void the ruling
before the Lazio Regional Administrative Court. The deci-
sion of that court, filed on October 17, 2019, partially upheld
the appeals filed by SEN and EE, declaring that the abusive
conduct had been engaged in for a period of 1 year and
9 months, rather than the original period of 5 years and 5
months, and requiring the Authority to recalculate the pen-
alty in accordance with the criteria specified in the ruling.
With the same ruling, the Regional Administrative Court
denied Enel’s appeal – which challenged the joint and sev-
eral liability of the Parent with SEN and EE. The ruling had no
autonomous financial impact on the Competition Author-
ity’s obligation to recalculate the penalty. With a measure
dated November 27, 2019, the Competition Authority set
the recalculated penalty at €27,529,786.46.
The rulings of the Regional Administrative Court were
challenged on appeal before the Council of State by the
three Enel Group companies and a precautionary request
was presented at the same time asking for the suspension
of the measure for recalculating the penalty levied by the
Competition Authority. With an order of July 20, 2020, the
Council of State, after the joinder of the three appeals, sus-
pended the ruling and ordered that the issue be submitted
for a preliminary ruling before the Court of Justice of the
European Union (CJEU) pursuant to Article 267 of the TFEU,
formulating a number of questions aimed at clarifying the
interpretation of the concept of “abuse of a dominant po-
sition” to be applied to the present case. On September
11 and 18, 2020, the CJEU notified EE and SEN and Enel,
respectively, of the initiation of a proceeding pursuant to
Article 267 of the TFEU. The companies then filed briefs
and, subsequently, EE and SEN participated at a hearing on
September 9, 2021. At the following hearing of December
9, 2021, the conclusions of the Advocate General were pre-
sented to the CJEU.
Pending the opening of the proceedings before the CJEU,
Enel, EE and SEN filed an additional precautionary petition
to the Council of State asking for the suspension of the en-
422
422
Integrated Annual Report 2021
forceability of the contested ruling of the Regional Admin-
istrative Court and the measure recalculating the penalty.
With three separate orders with identical content – pub-
lished on November 16, 2020 – the Council of State grant-
ed the request for suspension filed by the Enel companies
and, as a guarantee of payment of the penalty in the event
of an unfavorable final ruling, required the issue of a first
demand surety in favor of the Competition Authority in an
amount equal to that of the recalculated penalty suspend-
ed with the precautionary orders. The guarantee was duly
provided.
With a separate ruling, the Council of State also set the
date of the final trial session of the appeal for November
11, 2021. That hearing was postponed pending a decision
from the CJEU.
BEG litigation - Italy, France, the Netherlands,
Luxembourg
Following an arbitration proceeding initiated by BEG SpA
(BEG) in Italy, Enelpower SpA (Enelpower) obtained a rul-
ing in its favor in 2002, which was upheld by the Court of
Cassation in 2010, which entirely rejected the petition for
damages with regard to alleged breach by Enelpower of an
agreement concerning the construction of a hydroelectric
power station in Albania. Subsequently, BEG, acting through
its subsidiary Albania BEG Ambient, filed suit against Enel-
power and Enel SpA (Enel) in Albania concerning the matter,
obtaining a ruling from the District Court of Tirana on March
24, 2009, upheld by the Albanian Court of Cassation, order-
ing Enelpower and Enel to pay tortious damages of about
€25 million for 2004 as well as an unspecified amount of
tortious damages for subsequent years. Following the rul-
ing, Albania BEG Ambient demanded payment of more than
€430 million from Enel.
With a ruling of June 16, 2015, the first level was complet-
ed in the additional suit lodged by Enelpower SpA and Enel
SpA with the Court of Rome asking the Court to ascertain
the liability of BEG SpA for having evaded compliance with
the arbitration ruling issued in Italy in favor of Enelpower
SpA through the legal action taken by Albania BEG Ambient
Shpk. With this action, Enelpower SpA and Enel SpA asked
the Court to find BEG liable and order it to pay damages in
the amount that the other could be required to pay to Al-
bania BEG Ambient Shpk in the event of the enforcement
of the ruling issued by the Albanian courts. With the ruling,
the Court of Rome found that BEG SpA did not have stand-
ing to be sued, or alternatively, that the request was not ad-
missible for lack of an interest for Enel SpA and Enelpower
SpA to sue, as the Albanian ruling had not yet been declared
enforceable in any court. The Court ordered the setting off
of court costs. Enel SpA and Enelpower SpA appealed the
ruling before the Rome Court of Appeal, asking that it be
overturned in full. The ruling is at the decision stage.
On November 5, 2016, Enel SpA and Enelpower SpA filed
a petition with the Albanian Court of Cassation, asking for
the ruling issued by the District Court of Tirana on March
24, 2009 to be voided. The proceeding is still pending.
On May 20, 2021, the European Court of Human Rights
(ECHR) issued a ruling with which it decided the appeal
brought by BEG against the Italian State for violation of Arti-
cle 6.1 of the European Convention on Human Rights. With
this decision, the Court denied BEG's request to reopen the
arbitration proceedings, and also rejected BEG's claim for
pecuniary damages amounting to about €1.2 billion due
to the absence of a causal link with the disputed conduct,
granting it only €15,000.00 in non-pecuniary damages.
Nonetheless, on December 29, 2021, BEG, with an action
that the Company and its legal counsel deem unfounded
and specious, also decided to sue the Italian State before
the Court of Milan, to demand, as a consequence of the
ECHR ruling, damages for tortious liability in an amount of
about €1.8 billion. In this case, BEG also involved Enel and
Enelpower by way of a claim of joint and several liability. The
initial hearing is currently scheduled for April 27, 2022. Enel
and Enelpower are preparing their defense for the appear-
ance in court.
Proceedings undertaken by Albania BEG
Ambient Shpk (ABA) to obtain enforcement
of the ruling of the District Court of Tirana of
March 24, 2009
France
In February 2012, ABA filed suit against Enel and Enelpow-
er with the Tribunal de Grande Instance in Paris in order
to render the ruling of the Albanian court enforceable in
France. Enel SpA and Enelpower SpA challenged the suit.
Following the beginning of the case before the Tribunal de
Grande Instance, between 2012 and 2013 Enel France was
served with a number of “Saisie Conservatoire de Créanc-
es” (orders for the precautionary attachment of receiva-
bles) in favor of ABA to conserve any receivables of Enel in
respect of Enel France.
On January 29, 2018, the Tribunal de Grande Instance is-
sued a ruling in favor of Enel and Enelpower, denying ABA
the recognition and enforcement of the Tirana court’s rul-
ing in France for lack of the requirements under French
law for the purposes of granting exequatur. Among other
issues, the Tribunal de Grande Instance ruled that: (i) the Al-
banian ruling conflicted with an existing decision (the arbi-
tration ruling of 2002); and that (ii) the fact that BEG sought
to obtain in Albania what it was not able to obtain in the
Italian arbitration proceeding, resubmitting the same claim
through ABA, represented fraud.
ABA appealed that ruling. With a ruling of May 4, 2021, the
Paris Court of Appeal denied the appeal by ABA in full, or-
dering it to reimburse Enel and Enelpower €200,000.00
each for legal costs. In particular, the Court of Appeal fully
upheld the ruling of the Tribunal de Grande Instance with
regard to the conflict of the Albanian ruling with the 2002
arbitration award, which, having the value of res judicata
under French law, does not require the court to assess the
issue raised.
On June 21, 2021, ABA filed an appeal with the Cour de Cas-
sation against the ruling of the Paris Court of Appeal. Enel
and Enelpower are preparing their defense for the appear-
ance before the Cour de Cassation. Finally, Enel and Enel-
power initiated a separate proceeding to obtain release of
the precautionary attachments granted to ABA and which
are no longer valid as a result of the appeal ruling.
The Netherlands
At the end of July 2014, ABA filed suit with the Court of
Amsterdam to render the ruling of the Albanian court en-
forceable in the Netherlands. With a ruling of June 29, 2016,
the trial court recognized the Albanian ruling in the Neth-
erlands and therefore ordered Enel and Enelpower to pay
€433,091,870.00 to ABA, in addition to costs and ancillary
charges of €60,673.78. With the same ruling, the Court of
Amsterdam denied ABA’s request to declare the ruling pro-
visionally enforceable.
In a ruling of July 17, 2018, the Amsterdam Court of Appeal
upheld the appeal advanced by Enel and Enelpower, ruling
that the Albanian judgment cannot be recognized and en-
forced in the Netherlands. The Court of Appeal found that
the Albanian decision was arbitrary and manifestly unrea-
sonable and therefore contrary to Dutch public order.
The proceeding before the Court of Appeal continued with
regard to the subordinate question raised by ABA with
which it asked the Dutch court to rule on the merits of the
dispute in Albania and in particular the alleged tortious lia-
bility of Enel and Enelpower in the failure to build the power
plant in Albania.
On December 3, 2019, the Amsterdam Court of Appeal
issued a definitive ruling in which it fully quashed the trial
court judgment of June 29, 2016, rejecting any claim made
by ABA. The Court came to this conclusion after affirming
its jurisdiction over ABA’s subordinate claim and re-analyz-
ing the merits of the case under Albanian law, finding no
tortious liability on the part of Enel and Enelpower. Accord-
ingly, 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 companies for the losses in-
curred in illegitimate conservative seizures, to be quantified
as part of a specific procedure, and the costs of the trial
and appeal proceedings. ABA filed an appeal of the ruling
with the Supreme Court of the Netherlands. Following the
filing of the opinion of the Advocate General, who ruled in
favor of Enel and Enelpower, requesting the denial of the
appeal lodged by ABA, on July 16, 2021 the Supreme Court
completely rejected ABA's claims, ordering it to reimburse
Notes to the consolidated financial statements
423
423
court costs. The decision of the Court of Appeal has thus
become final and, therefore, no more proceedings are
pending in the Netherlands.
Luxembourg
In Luxembourg, again at the initiative of ABA, J.P. Morgan
Bank Luxembourg SA was also served with an order for a
number of precautionary seizures of any receivables of
both Enel Group companies in respect of the bank.
In parallel ABA filed a claim to obtain enforcement of the
ruling of the Court of Tirana in Luxembourg. The pro-
ceeding is still in the initial stages and no ruling has been
issued.
United States and Ireland
In 2014, ABA had initiated two proceedings requesting
execution of the Albanian ruling before the courts of the
State of New York and Ireland, which both ruled in favor
of Enel and Enelpower, respectively, on February 23 and
February 26, 2018. Accordingly, there are no lawsuits
pending in Ireland or New York State.
Environmental incentives - Spain
With the Decision of the European Commission of No-
vember 27, 2017 on the issue of environmental incentives
for thermal power plants, the Commission reached the
preliminary conclusion that the environmental incen-
tive for coal power plants provided for in Spain’s Order
ITC/3860/2007 represents State aid pursuant to Article
107, paragraph 1, of the Treaty on the Functioning of the
European Union (TFEU), expressing doubts about the
compatibility of the incentive with the internal market
while recognizing that the incentives are in line with the
European Union’s environmental policy. The Commission's
Directorate-General for Competition has initiated a for-
mal enquiry pursuant to Article 108, paragraph 2, of the
TFEU in order to establish whether the incentive in ques-
tion constituted state aid compatible with the internal
market. On April 13, 2018, Endesa Generación SA, acting
as an interested third party, submitted comments con-
testing this interpretation. Subsequently, on September
8, 2021, the appeal of the decision lodged by Gas Natural
(now Naturgy) with the Court of Justice of the European
Union (CJEU) was denied. The enquiry under Article 108 of
the TFEU is still open.
Social Bonus - Spain
With the rulings of October 24 and 25, 2016 and No-
vember 2, 2016, the Spanish Tribunal Supremo declared
Article 45, paragraph 4 of the Spain’s Electricity Indus-
try Law 24 of December 26, 2013 void for incompatibility
with Directive 2009/72/EC of the European Parliament
and of the Council of July 13, 2009, granting the appeals
424
424
Integrated Annual Report 2021
filed by Endesa against the obligation to finance the So-
cial Bonus mechanism. The Tribunal Supremo recognized
Endesa’s right to receive all amounts that had been paid
to users under the Social Bonus system, provided for in
the law declared void by the Tribunal Supremo, for a total
of about €214 million plus interest. The government chal-
lenged these rulings of the Tribunal Supremo, requesting
that they be overturned, but the related appeals were de-
nied.
Subsequently, the government initiated two proceedings
before the Constitutional Court requesting the reopen-
ing of the Tribunal Supremo proceedings so that the lat-
ter may ask for a preliminary ruling from the European
Court of Justice (CJEU). The Constitutional Court granted
the appeals and, accordingly, the Tribunal Supremo sub-
mitted a petition for a preliminary ruling from the CJEU.
All parties, including Endesa, presented their respective
written conclusions. On October 14, 2021, after the Ad-
vocate General had issued a favorable opinion to Endesa,
the CJEU issued a preliminary ruling in favor of Endesa,
recognizing the incompatibility of Article 45, paragraph 4,
of the Electricity Industry Law with the Directive referred
to above. On December 21, 2021 the Tribunal Supremo
issued a final ruling with which it confirmed the provisions
of the previous ruling of October 24, 2016. In particular,
the Tribunal Supremo found that the social bonus financ-
ing scheme provided for in Article 45, paragraph 4, of the
Electricity Industry Law is inapplicable as it does not com-
ply with Article 3.2 of Directive 2009/72/EC, and voided
Royal Decree 968/2014.
“Endesa I” industrial relations dispute - Spain
After a series of meetings of the Comisión Negociado-
ra of the 5th Endesa Collective Bargaining Agreement
(Comisión Negociadora) which began in October 2017
and continued throughout 2018, in view of the impossi-
bility of reaching an agreement between the social part-
ners, Endesa notified the workers and their union repre-
sentatives that, with effect from January 1, 2019, the 4th
Collective Bargaining Agreement must be considered
terminated under the terms of the “framework guarantee
contract” and the “agreement on the voluntary suspen-
sion or resolution of employment contracts in the peri-
od 2013-2018”, applying from that date the provisions of
general labor law, as well as the applicable legal criteria
established in the matter.
Despite the resumption of negotiations within the
Comisión Negociadora in February 2019, the interpre-
tative differences between Endesa and the trade union
representatives regarding the effects of the resolution of
the 4th Collective Bargaining Agreement with regard, in
particular, to the social benefits granted to retired per-
sonnel, led to the initiation of a suit by the unions rep-
resented in the company. On March 26, 2019 a hearing
was held before the court of first instance, which issued
a ruling in favor of Endesa, upholding the company’s po-
sition concerning the legitimacy of abolishing certain so-
cial benefits for retired personnel as a consequence of
the termination of the 4th Endesa Collective Bargaining
Agreement. The unions appealed this decision before the
Tribunal Supremo, while the initial ruling remained provi-
sionally enforceable. Endesa entered the proceeding. In
December 2019, Endesa’s largest union decided to waive
its appeal before the Tribunal Supremo in order to volun-
tarily submit the dispute to arbitration before the Servi-
cio Interconfederal de Mediación y Arbitraje (SIMA) with
a view to resolving the main issues concerning the 5th
Endesa Collective Bargaining Agreement with the com-
pany. The other trade unions involved refused to join the
arbitration proceeding, electing to go ahead with the
proceedings before the Tribunal Supremo.
On January 21, 2020, the arbitration award was issued,
with the amendment of certain parts of the 5th Ende-
sa Collective Bargaining Agreement, which was subse-
quently signed by the social partners. It entered force on
January 23, 2020. On the same date, Endesa also signed
two further collective bargaining agreements (a “frame-
work guarantee contract” and an “agreement on vol-
untary measures to suspend or terminate employment
contracts”) with all the unions present in the company.
On June 17, 2020, the 5th Endesa Collective Bargaining
Agreement was published in the Spanish Official Journal
(Boletín Oficial del Estado), taking full effect.
On July 7, 2021, the Tribunal Supremo issued a decision
(notified on July 22, 2021) in which it denied the appeals
lodged by the aforementioned unions in full, upholding
the ruling of the court of first instance of March 26, 2019.
In particular, the Tribunal Supremo affirmed that social
benefits (including those relating to electricity prices)
originate exclusively in the collective bargaining agree-
ments, both for employees currently in service and those
who have retired, as well as for their family members, with
the consequence that the termination of such agree-
ments (as happened in the case of the 4th Collective
Bargaining Agreement) produces the general contrac-
tual regulation of the conditions established therein for
employees currently in service and, for those who have
retired and their family members, the definitive extinction
of all their rights, until new regulations are introduced with
the 5th Endesa Collective Bargaining Agreement. Numer-
ous individual suits have been filed by staff and former
employees who had agreed to participate in termination
incentive agreements in order to obtain judicial confir-
mation that the termination of the 4th Endesa Collective
Bargaining Agreement did not affect them. The majori-
ty of these proceedings were suspended or were being
suspended pending the definition of the collective action
pending before the Tribunal Supremo, as the ruling of the
latter, in regarding a “collective dispute”, would have the
value of res judicata in respect of individual proceedings
concerning the same issue. As a result of the ruling of the
Tribunal Supremo of July 7, 2021, the suspension of many
of these proceedings was revoked in order to enable the
court to deny the suits.
“Endesa II” industrial relations dispute -
Spain
On December 30, 2020, the Audiencia Nacional noti-
fied Endesa a petition for a “collective dispute” initiated
by three trade unions with minority representation filed
on December 16, 2020 concerning the cancellation of
some “derogatory provisions” of the 5th Endesa Collec-
tive Bargaining Agreement. The plaintiffs claim that the
contested “derogatory provisions” would imply the ille-
gitimate abolition of social benefits and economic rights
of workers. Endesa considers these provisions to be fully
legitimate, in line with the arguments made during pro-
ceeding concerning the reduction of social benefits for
retired personnel. With a ruling of November 15, 2021, the
petitions of the plaintiff unions were rejected, with verifi-
cation of the legitimacy of the 5th Endesa Collective Bar-
gaining Agreement. The ruling was appealed by the trade
unions before the Tribunal Supremo.
Furnas-Tractebel litigation - Brazil
In 1998 the Brazilian company CIEN (now Enel CIEN)
signed an agreement with Tractebel for the delivery of
electricity from Argentina through its Argentina-Brazil
interconnection line. As a result of Argentine regulatory
changes introduced as a consequence of the economic
crisis in 2002, Enel CIEN was unable to make the electric-
ity available to Tractebel.
In October 2009, Tractebel sued Enel CIEN, which sub-
mitted its defense. Enel CIEN cited force majeure as a re-
sult of the Argentine crisis as the main argument in its
defense. Out of court, the Tractebel has indicated that it
plans to acquire 30% of the interconnection line involved
in the dispute. On February 14, 2019, Enel CIEN received
notice of an order beginning expert witness operations,
which are still under way. The amount involved in the dis-
pute is estimated at about R$118 million (about €28 mil-
lion), plus interest, revaluations and unspecified damages.
For analogous reasons, in May 2010 Furnas had also filed
suit against Enel CIEN for failure to deliver electricity, re-
questing payment of about R$571.6 million (about €91
million), in addition to unspecified damages, seeking to
acquire ownership (in this case 70%) of the interconnec-
tion line. The proceeding was decided in Enel CIEN’s favor
with a ruling of the Tribunal de Justiça with a definitive
ruling of October 18, 2019, which denied all of the claims
of Furnas.
Notes to the consolidated financial statements
425
425
tablished specifically to pursue the expansion project.
The contracts provided for the payment of a monthly fee
by Coelce, which was also required to maintain the net-
works.
Those contracts, between cooperatives established in
special circumstances and the then public-sector com-
pany, do not specifically identify the grids governed by
the agreements, which prompted a number of the coop-
eratives to sue Coelce asking for, among other things, a
revision of the fees agreed in the contracts.
These proceedings include the suit filed by Cooperativa
de Eletrificação Rural do Vale do Acarau Ltda (Coperva)
with a value of about R$374 million (about €59.3 million).
Coelce was granted rulings in its favor from the trial court
and the court of appeal, but Coperva filed a further ap-
peal (Embargo de Declaração) based on procedural is-
sues, which was also denied by the appeal court in a ruling
of January 11, 2016. On February 3, 2016, Coperva lodged
an extraordinary appeal before the Superior Tribunal de
Justiça (STJ) against the appeal court ruling on the merits,
which was granted on November 5, 2018 for the ruling
issued in the previous appeal (Embargo de Declaração).
On December 3, 2018, Coelce filed an appeal (Agravo In-
terno) against this ruling of the STJ. The proceedings are
currently pending.
AGM litigation - Brazil
In 1993, Celg-D,(42) the Association of Municipalities of
Goiás (AGM), the State of Goiás and the Bank of Goiás
reached an agreement (Convenio) for the payment of
municipal debts to Celg-D through the transfer of the
portion of ICMS - Imposto sobre Circulação de Merca-
dorias e Serviços (tax on the circulation of goods and
services) that the State would have transferred to those
governments. In 2001 the parties to the agreement were
sued by the individual municipal governments to obtain a
ruling that the agreement was invalid, a position then up-
held by the Supreme Federal Court on the grounds of the
non-participation of the local governments themselves
in the agreement process. In September 2004, Celg-D
reached a settlement with 23 municipalities. Between
2007 and 2008, Celg-D was again sued on numerous
occasions by a number of municipal governments (there
are currently 65 pending suits) seeking the restitution of
amounts paid under the agreement. Despite the ruling
that the agreement was void, Celg-D argues that the pay-
ment of the debts on the part of the local governments is
legitimate, as electricity was supplied in accordance with
the supply contracts and, accordingly, the claims for res-
Cibran litigation - Brazil
Companhia Brasileira de Antibióticos (Cibran) has filed
six suits against the Enel Group company Ampla Energia
e Serviços SA (Ampla)(40) to obtain damages for alleged
losses incurred as a result of the interruption of electric-
ity service by the Brazilian distribution company between
1987 and 2002, in addition to non-pecuniary damages.
The Court ordered a unified technical appraisal for those
cases, the findings of which were partly unfavorable to
Ampla. The latter challenged the findings, asking for a
new study, which led to the denial of part of Cibran’s peti-
tions. Cibran subsequently challenged the findings of the
new study and the ruling was in favor of Ampla.
The first suit, filed in 1999 and regarding the years from
1995 to 1999, was adjudicated in September 2014 when
the court of first instance issued a ruling against Amp-
la, levying a fine of about R$200,000 (about €46,000) as
well as other damages to be quantified separately. Ampla
appealed the ruling and the appeal was upheld by the Tri-
bunal de Justiça, which denied all of Cibran’s claims. The
ruling became definitive on August 24, 2020.
With regard to the second case, filed in 2006 and re-
garding the years from 1987 to 1994, on June 1, 2015, the
courts issued a ruling ordering Ampla to pay R$96,465,103
(about €23 million) plus interest in pecuniary damages
and R$80,000 Brazilian (about €19,000) in non-pecuniary
damages. On July 8, 2015 Ampla appealed the decision
with the Tribunal de Justiça of Rio de Janeiro, which on
November 6, 2019 issued a ruling on merits granting Am-
pla’s petition and denying all of Cibran’s claims. On No-
vember 25, 2019, Cibran filed an appeal against the rul-
ing of the Tribunal de Justiça of Rio de Janeiro, which was
preliminarily denied for formal reasons on September 10,
2020. On January 29, 2021, Cibran appealed (Agravo de
Instrumento) the decisions before the Superior Tribunal
de Justiça (STJ), which was denied on June 8, 2021. On
June 22, 2021, Cibran filed an appeal (Agravo Interno) with
the STJ and the proceeding is pending.
A ruling from the court of first instance is still pending for
the remaining four suits for the years 2001 and 2002. The
value of all the disputes is estimated at about R$612.1
million (about €96.02 million).
Coperva litigation - Brazil
As part of the project to expand the grid in rural areas
of Brazil, in 1982 Companhia Energética do Ceará SA
(Coelce),(41) then owned by the Brazilian government and
now an Enel Group company, had entered into contracts
for the use of the grids of a number of cooperatives es-
(40) The trading name of Ampla is Enel Distribuição Rio de Janeiro.
(41) The trading name of Coelce is Enel Distribuição Ceará.
(42) The trading name of Eletropaulo is Enel Distribuição São Paulo.
426
426
Integrated Annual Report 2021
titution of amounts paid should be denied.
The proceedings pending before the Goiás State Court
include: (i) a suit filed by the Municipio de Aparecida de
Goiânia, which is pending at the preliminary stage at first
instance, for an amount of approximately R$726 million
(about €113.4 million); (ii) a suit filed by the Municipio de
Quirinópolis, also pending at the preliminary stage of
the proceeding at first instance for an amount of about
R$388 million (about €61.48 million); and (iii) a suit filed by
the Municipio de Anápolis with the court of first instance
after a failed attempt at conciliation between the parties
and now pending in the preliminary stages, for an amount
of about R$368.7 million (about €54.4 million).
The total value of the suits is equal to about R$3.92 bil-
lion (about €621.5 million). The contingent liability deriv-
ing from this dispute is covered by the “Funac” provision
established during the privatization of Celg-D.
ANEEL litigation - Brazil
In 2014, Eletropaulo(43) initiated an action before the Bra-
zilian federal courts seeking to void the administrative
measure of the Agência Nacional de Energia Elétrica
(ANEEL, the national electricity agency), which in 2012
retroactively introduced a negative coefficient to be ap-
plied in determining rates for the following regulatory
period (2011-2015). With this provision, the Authority or-
dered the restitution of the value of some components
of the network previously included in rates because they
were considered non-existent and denied Eletropaulo’s
request to include additional components in rates. The
administrative measure of ANEEL was challenged and on
September 9, 2014 it was suspended on a precautionary
basis. The first-instance proceeding is still in its prelim-
inary stages and the value of the suit is about R$1,288
million (about €204.1 million).
El Quimbo - Colombia
A number of legal actions (“acciones de grupo” and “ac-
ciones populares”) brought by residents and fishermen
in the affected area are pending with regard to the El
Quimbo project for the construction of a 400 MW hy-
droelectric plant in the region of Huila (Colombia). More
specifically, the first collective action, currently in the pre-
liminary stage, was brought by around 1,140 residents of
the municipality of Garzón, who claim that the construc-
tion of the plant would reduce their business revenue by
30%. A second action was brought, between August 2011
and December 2012, by residents and businesses/asso-
(43) The trading name of Eletropaulo is Enel Distribuição São Paulo.
ciations of five municipalities of Huila claiming damages
related to the closing of a bridge (Paso El Colegio). With
regard to acciones populares, or class action lawsuits, in
2008 a suit was filed by a number of residents of the area
demanding, among other things, that the environmental
permit be suspended. As part of this action, on Septem-
ber 11, 2020, the Huila Court issued an unfavorable ruling
against Emgesa, sentencing it to fulfill the obligations al-
ready provided for in the environmental license. ANLA has
submitted a request for clarification of the ruling.
Another acción popular was brought by a number of fish
farming companies over the alleged impact that filling the
Quimbo basin would have on fishing in the Betania basin
downstream from Quimbo. After a number of precaution-
ary rulings, on February 22, 2016, the Huila Court issued
a ruling allowing generation to continue for six months.
The court ordered Emgesa to prepare a technical design
that would ensure compliance with oxygen level require-
ments and to provide collateral of about 20,000,000,000
Colombian pesos (about €5.5 million).
The Huila Court subsequently extended the six-month
time limit, and therefore, in the absence of contrary court
rulings the Quimbo plant is continuing to generate elec-
tricity as the oxygenation system installed by Emgesa has
so far demonstrated that it can maintain the oxygen lev-
els required by the court. On March 22, 2018, ANLA and
CAM jointly presented the final report on the monitoring
of water quality downstream of the dam of the El Quimbo
hydroelectric plant. Both authorities confirmed the com-
pliance of Emgesa with the oxygen level requirements.
After the parties had filed briefs, on January 12, 2021, it
was learned that the ruling of first instance of the Court
of Huila had been issued (it was subsequently notified to
the company on February 1, 2021). The ruling, while ac-
knowledging that the oxygenation system implemented
by Emgesa had mitigated the risks associated with the
protection of fauna in the Bethany basin, imposed a se-
ries of obligations on the environmental authorities in-
volved, as well as on Emgesa itself. In particular, the lat-
ter is required to implement a decontamination project
to ensure that the water in the basin does not generate
risks for the flora and fauna of the river, which will be sub-
ject to verification by ANLA, and to make permanent the
operation of the oxygenation system, adapting it to com-
ply with the parameters established by ANLA. On March
4, 2021, Emgesa challenged the appeal ruling before the
Council of State.
On December 31, 2021, the Council of State ruled that
Emgesa’s appeal was admissible. The proceeding is con-
tinuing at the appeal level.
Notes to the consolidated financial statements
427
427
Nivel de Tensión Uno proceedings - Colombia
This dispute involves an “acción de grupo” brought by Cen-
tro Médico de la Sabana hospital and other parties against
Codensa seeking restitution of allegedly excess rates. The
action is based upon the alleged failure of Codensa to ap-
ply a subsidized rate that they claim the users should have
paid as Tensión Uno category users (voltage of less than 1
kV) and owners of infrastructure, as established in Resolu-
tion no. 82/2002, as amended by Resolution no. 97/2008.
The suit is at a preliminary stage. The estimated value of
the proceeding is about 337 billion Colombian pesos
(about €96 million).
Gabčíkovo dispute - Slovakia
Slovenské elektrárne (SE) is involved in a number of cas-
es before the national courts concerning the 720 MW
Gabčíkovo hydroelectric plant, which is administered
by Vodohospodárska Výsatavba Štátny Podnik (VV) and
whose operation and maintenance, as part of the privat-
ization of SE in 2006, had been entrusted to SE for a pe-
riod of 30 years under an operating agreement (the VEG
Operating Agreement).
Immediately after the closing of the privatization, the Pub-
lic Procurement Office (PPO) filed suit with the Court of
Bratislava seeking to void the VEG Operating Agreement
on the basis of alleged violations of the regulations gov-
erning public tenders, qualifying the contract as a service
contract and as such governed by those regulations. In
November 2011 the trial court ruled in favor of SE, where-
upon the PPO immediately appealed the decision.
In parallel with the PPO action, VV also filed a number of
suits, asking in particular for the voidance of the VEG Op-
erating Agreement.
On December 12, 2014, VV withdrew unilaterally from the
VEG Operating Agreement, notifying its termination on
March 9, 2015, for breach of contract. On March 9, 2015,
the decision of the appeals court overturned the ruling of
the trial court and voided the contract as part of the ac-
tion pursued by the PPO. SE lodged an extraordinary ap-
peal against that decision before the Supreme Court. At a
hearing of June 29, 2016, the Supreme Court denied the
appeal. SE then appealed the ruling to the Constitutional
Court, which denied the appeal on January 18, 2017.
In addition, SE lodged a request for arbitration with the
Vienna International Arbitral Centre (VIAC) under the VEG
Indemnity Agreement. Under that accord, which had been
signed as part of the privatization between the National
Property Fund (now MH Manazment - MHM) of the Slovak
Republic and SE, the latter is entitled to an indemnity in
the event of the early termination of the VEG Operating
Agreement for reasons not attributable to SE. The arbitra-
tion court rejected the objection that it did not have juris-
diction and the arbitration proceeding continued to ex-
amine the merits of the case, with a ruling on the amount
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428
Integrated Annual Report 2021
involved being deferred to any subsequent proceeding.
On June 30, 2017, the arbitration court issued its ruling de-
nying the request of SE.
In parallel with the arbitration proceeding launched by SE,
both VV and MHM filed two suits in the Slovakian courts to
void the VEG Indemnity Agreement owing to the alleged
connection of the latter with the VEG Operating Agree-
ment. These proceedings were joindered and, on Septem-
ber 27, 2017, a hearing was held before the Court of Brati-
slava in which the judge denied the request of the plain-
tiffs for procedural reasons. Both VV and MHM appealed
that decision. The appeal filed by MHM was denied by the
Bratislava Court of Appeal on June 8, 2019, upholding the
decision of the court of first instance in favor of SE. Simi-
larly, the appeal filed by VV was denied, upholding the trial
court decision in favor of SE. VV filed a further appeal (do-
volanie) against that decision on March 9, 2020, with the
Supreme Court, to which SE replied with a brief submitted
on June 8, 2020. On March 24, 2021, the Supreme Court
overturned the decision of the Bratislava Court of Appeal,
referring the judgment to the latter court. On July 21, 2021,
SE filed an appeal before the Slovak Constitutional Court,
which was denied on July 29, 2021, and the proceeding is
currently pending before the Bratislava Court of Appeal.
At the local level, SE was sued by VV for alleged unjustified
enrichment (estimated at about €360 million plus interest)
for the period from 2006 to 2015. SE filed counter-claims
for all of the proceedings under way. Developments in
those proceedings can be summarized as follows:
• for 2006-2008, at the hearing of June 26, 2019, the
Court of Bratislava denied the claims of both parties for
procedural reasons. The ruling in first instance was ap-
pealed by both VV and SE and the appeals for the years
2006 and 2008 are pending. As for the appeal pro-
ceedings relating to 2007, in November 2019, SE had
raised a preliminary question which was rejected by
the Court of Appeal on January 15, 2020. On August 18,
2020, SE filed an appeal with the Constitutional Court
but the appeal was denied on September 18, 2021. The
proceeding is therefore continuing before the Court of
Appeal;
• the proceedings relating to the years from 2009 to
2011 and from 2013 to 2015 are all pending before the
court of first instance. In a number of cases, briefs have
been exchanged. For all the proceedings, hearings be-
fore the court of first instance were scheduled but then
were initially postponed to specified dates before be-
ing postponed to dates to be determined owing to the
pandemic;
• the proceeding involving 2012 is pending before the
Court of Appeal level following VV’s appeal of the ruling
in favor of SE by the court of first instance.
Finally, in another proceeding before the Court of Brati-
slava, VV asked for SE to return the fee for the transfer
from SE to VV of the technology assets of the Gabčíko-
vo plant as part of the privatization, with a value of about
€43 million plus interest. The parties exchanged briefs. At
the hearing on November 19, 2019, the court issued a pre-
liminary decision on the case in which it noted the lack
of standing of VV. At the hearing of October 1, 2020, the
parties filed their final briefs and on December 18, 2020,
the court issued a decision in favor of SE, rejecting VV’s
claims. On January 4, 2021, VV filed an appeal against that
decision, and the proceeding is pending.
Chucas arbitration - Costa Rica
PH Chucas SA (Chucas) is a special purpose entity estab-
lished by Enel Green Power Costa Rica SA after it won a
tender organized in 2007 by the Instituto Costarricense
de Electricidad (ICE) for the construction of a 50 MW hy-
droelectric plant and the sale of the power generated by
the plant to ICE under a build, operate and transfer con-
tract (BOT).
On May 27, 2015, Chucas initiated an arbitration proceed-
ing before the Cámara Costarricense-Norteamericana de
Comercio (AMCHAM CICA) seeking reimbursement of the
additional costs incurred to build the plant and as a result
of the delays in completing the project as well as voidance
of the fine levied by ICE for alleged delays in finalizing the
works. In a decision issued in November 2017, the arbitra-
tion board ruled in Chucas’ favor, granting recognition of
the additional costs incurred in the amount of about $113
million (about €91 million) and legal costs and found that
Chucas was not liable to pay the fines to ICE. ICE appealed
the arbitration ruling before the Supreme Court and on
September 5, 2019 Chucas was notified of the ruling par-
tially upholding ICE’s appeal to void the arbitration ruling
for a number of formal procedural reasons. On September
11, 2019, Chucas filed a “recurso de aclaración y adición”
with the same court and it was partially upheld on June 8,
2020. The Court’s decision expanded on the ruling of Sep-
tember 5, 2019 with information concerning the admis-
sion of evidence deposited by Chucas without, however,
modifying the decision concerning the voidance of the
arbitration award. On July 14, 2020, Chucas filed a new re-
quest for arbitration with the AMCHAM CICA for a prelim-
inary estimated amount of about $240 million. On August
14, 2020, ICE filed its response, requesting the dismissal
of the proceeding for lack of jurisdiction on the part of the
arbitration tribunal. The request for dismissal was denied
by AMCHAM CICA. In parallel, ICE filed precautionary ap-
peals to the Tribunal Contencioso Administrativo against
Chucas and the AMCHAM CICA seeking to suspend the
arbitration proceedings. While these appeals were pre-
liminarily upheld, they were subsequently denied. In May
2021, Chucas filed its arbitration request complete with
preliminary demands, quantifying the value of its claim
at about $362 million (about €305 million). In June 2021,
ICE filed its defense, continuing to assert a lack of juris-
diction. ICE has not made a counterclaim. On August 4,
2021, the arbitration tribunal rejected ICE's claim of lack of
jurisdiction. The matter has now been submitted for con-
sideration to the first section of the Supreme Court. The
arbitration proceedings remain suspended pending the
Supreme Court decision on jurisdiction.
GasAtacama Chile - Chile
On August 4, 2016, the Superintendencia de Electricidad
y Combustibles (SEC) fined GasAtacama Chile (now Enel
Generación Chile) $8.3 million (about 5.8 billion Chilean
pesos) for information provided by the latter to the CDEC-
SING (Centro de Despacho Económico de Carga) between
January 1, 2011 and October 29, 2015, relating to the Min-
imum Technical and Minimum Operating Time variables at
the Atacama plant.
Enel Generación Chile appealed this measure with the
SEC, which denied the appeal on November 2, 2016. Enel
Generación Chile appealed this decision before the Santi-
ago Court of Appeal, which on April 9, 2019, issued a ruling
reducing the fine to $432,000 (about 290 million Chilean
pesos). Both Enel Generación Chile and the SEC appealed
this decision before the Supreme Court of Chile. On June
28, 2019, a hearing was held for both parties to submit
arguments and on January 15, 2020 the Supreme Court
upheld the ruling of the Santiago Court of Appeal, leaving
unchanged the reduction in the fine established by that
court. The adjusted fine was paid on March 12, 2020.
In parallel, Enel Generación Chile had also filed an appeal
before the Constitutional Court, claiming that the legal
provisions under which the SEC imposed the fine had
been repealed at the time the penalty was issued. On July
17, 2018, the Constitutional Court rejected Enel Gener-
ación Chile’s appeal.
In relation to this issue, some operators of the Sistema
Interconectado del Norte Grande (SING), including Aes
Gener SA, Eléctrica Angamos SA and Engie Energía Chile
SA, sued Enel Generación Chile to obtain damages in an
amount of about €58 million (the former) and about €141
million (the latter two). The disputes were joindered in part
in a single proceeding and are currently pending. After the
suspension of the proceeding under the state of national
emergency declared in response to the COVID-19 pan-
demic, the plaintiff asked for the proceeding to resume,
a request the court granted. The court ordered the no-
tification of a measure that determines the substantive,
pertinent and disputed facts of the case. The preliminary
phase has not yet begun.
Kino arbitration - Mexico
On September 16, 2020, Kino Contractor SA de Cv (Kino
Contractor), Kino Facilities Manager SA de Cv (Kino Facili-
ties) and Enel SpA (Enel) were notified of a request for arbi-
Notes to the consolidated financial statements
429
429
tration filed by Parque Solar Don José SA de Cv, Villanueva
Solar SA de Cv and Parque Solar Villanueva Tres SA de Cv
(together, “Project Companies”) in which the Project Com-
panies alleged the violation (i) by Kino Contractor of certain
provisions of the EPC Contract and (ii) by Kino Facilities of
certain provisions of the Asset Management Agreement,
both contracts concerning solar projects owned by the
three companies filing for arbitration.
Enel — which is the guarantor of the obligations assumed
by Kino Contractor and Kino Facilities under the above
contracts — has also been called into the arbitration pro-
ceeding, but no specific claims have been filed against it
for the moment.
The Project Companies, in which Enel Green Power SpA is
a non-controlling shareholder, are controlled by CDPQ In-
fraestructura Participación SA de Cv (which is controlled by
Caisse de Dépôt et Placement du Québec) and CKD Infrae-
structura México SA de Cv.
After the request for arbitration and the related response
from the defendants, the parties exchanged further intro-
ductory briefs, in which the financial claim of the counter-
parties was quantified at about $140 million, while Kino Fa-
cilities quantified its own counterclaim at about $3.3 million.
The document production phase is currently under way.
Tax litigation in Brazil
Withholding tax - Ampla
In 1998, Ampla Energia e Serviços SA (Ampla) financed the
acquisition of Coelce with the issue of bonds in the amount
of $350 million (“Fixed Rate Notes” - FRN) subscribed by
its Panamanian subsidiary, which had been established to
raise funds abroad. Under the special rules then in force,
subject to maintaining the bonds until 2008, the interest
paid by Ampla to its subsidiary was not subject to with-
holding tax in Brazil.
However, the financial crisis of 1998 forced the Panama-
nian company to refinance itself with its Brazilian parent,
which for that purpose obtained loans from local banks.
The tax authorities considered this financing to be the
equivalent of the early redemption of the bonds, with the
consequent loss of entitlement to the exemption from
withholding tax.
In December 2005, Ampla carried out a spin-off that in-
volved the transfer of the residual FRN debt and the as-
sociated rights and obligations to Ampla Investimentos e
Serviços SA.
On November 6, 2012, the Câmara Superior de Recursos
Fiscais (the highest level of administrative courts) issued
a ruling against Ampla, for which the company promptly
asked that body for clarifications. On October 15, 2013,
Ampla was notified of the denial of the request for clari-
fication (Embargo de Declaração), thereby upholding the
previous adverse decision. The company provided security
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430
Integrated Annual Report 2021
for the debt and on June 27, 2014 continued litigation be-
fore the ordinary courts (Tribunal de Justiça).
In December 2017, the court appointed an expert to ex-
amine the issue in greater detail in support of the future
ruling. In September 2018, the expert submitted a report,
requesting additional documentation.
In December 2018, the company provided the additional
documentation and is awaiting the court’s assessment of
the arguments and documents presented.
The amount involved in the dispute at December 31, 2021
was about €211 million.
IRPJ/CSLL - Eletropaulo
On October 5, 2021, Eletropaulo received an assessment
notice from the Brazilian tax authorities contesting the
deductibility for income tax purposes (Imposto sobre a
Renda das Pessoas Jurídicas - IRPJ and Contribuição So-
cial sobre o Lucro Líquido - CSLL) of the amortization of
the increased amounts generated by extraordinary cor-
porate transactions carried out before the acquisition of
the company by the Enel Group. The contested period runs
from 2017 to 2019.
Considering its position sound, the company presented its
defense at the first level of administrative adjudication.
The amount involved in the dispute was about €110 million
at December 31, 2021.
PIS - Eletropaulo
In July 2000, Eletropaulo filed suit seeking a tax credit for
PIS (Programa Integração Social) paid in application of
regulations (Decree Laws 2.445/1988 and 2.449/1988)
that were subsequently declared unconstitutional by the
Supremo Tribunal Federal (STF). In May 2012, the Superior
Tribunal de Justiça (STJ) issued a final ruling in favor of the
company 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
but the company, claiming it had acted correctly, chal-
lenged in court the assessments issued by the federal tax
authorities. Following defeat at the initial level of adjudica-
tion, the company appealed.
The amount involved in the dispute at December 31, 2021
was about €106 million.
ICMS - Ampla, Coelce and Eletropaulo
The States of Rio de Janeiro, Ceará and São Paulo issued
a number of tax assessments against Ampla Energia e
Serviços SA (for the years 1996-1999 and 2007-2017),
Companhia Energética do Ceará (Coelce) (2003, 2004,
2006-2012, 2015 and 2016) and Eletropaulo (2008-2020),
challenging the deduction of ICMS - Imposto sobre Circu-
lação de Mercadorias e Serviços (tax on the circulation of
goods and services) in relation to the purchase of certain
non-current assets. The companies challenged the as-
sessments, arguing that they correctly deducted the tax
and asserting that the assets, the purchase of which gen-
erated the ICMS, are intended for use in their electricity
distribution activities.
The companies are continuing to defend their actions at
the various levels of adjudication.
The amount involved in the disputes totaled approximately
€79 million at December 31, 2021.
Withholding tax - Endesa Brasil
On November 4, 2014, the Brazilian tax authorities issued
an assessment against Endesa Brasil SA (now Enel Bras-
il SA) alleging the failure to apply withholding tax to pay-
ments of allegedly higher dividends to non-resident recip-
ients.
More specifically, in 2009, Endesa Brasil, as a result of the
first-time application of the IFRS, had derecognized good-
will, recognizing the effects in equity, on the basis of the
correct application of the accounting standards it had
adopted. The Brazilian tax authorities, however, asserted
– during an audit – that the accounting treatment was in-
correct and that the effects of the derecognition should
have been recognized through profit or loss. As a result,
the corresponding amount (about €202 million) was re-
classified as a payment of income to non-residents and,
therefore, subject to withholding tax of 15%.
It should be noted that the accounting treatment adopted
by the company was agreed with the external auditor and
also confirmed by a specific legal opinion issued by a local
firm.
Following unfavorable rulings from the administrative
courts, the company is continuing to defend its actions
and the appropriateness of the accounting treatment in
court.
The overall amount involved in the dispute at December
31, 2021 was about €58 million.
ICMS - Coelce
The State of Ceará has filed various tax assessments
against Companhia Energética do Ceará SA (Coelce) over
the years (for tax periods from 2005 to 2014), contesting
the determination of the deductible portion of the ICMS -
Imposto sobre Circulação de Mercadorias e Serviços (tax
on the circulation of goods and services) and in particular
the method of calculation of the pro-rata deduction with
reference to the revenue deriving from the application of a
special rate envisaged by the Brazilian government for the
sale of electricity to low-income households (Baixa Renda).
The company has appealed the individual assessments, ar-
guing that the tax deduction was calculated correctly. The
company is defending its actions in the various levels of
jurisdiction.
The overall amount involved in the dispute at December
31, 2021 was about €40 million.
PIS - Eletropaulo
In December 1995, the Brazilian government increased
the rate of the federal PIS (Programa Integração Social) tax
from 0.50% to 0.65% with the issue of a provisional meas-
ure (Executive Provisional Order).
Subsequently, the provisional measure was re-issued five
times before its definitive ratification into law in 1998. Un-
der Brazilian legislation, an increase in the tax rate (or the
establishment of a new tax) can only be ordered by law and
take effect 90 days after its publication.
Eletropaulo therefore filed suit arguing that an increase in
the tax rate would only have been effective 90 days after
the last Provisional Order, claiming that the effects of the
first four provisional measures should be considered void
(since they were never ratified into law). This dispute ended
in April 2008 with recognition of the validity of the increase
in the PIS rate starting from the first provisional measure.
In May 2008, the Brazilian tax authorities filed a suit against
Eletropaulo to request payment of taxes corresponding
to the rate increase from March 1996 to December 1998.
Eletropaulo has fought the request at the various levels of
adjudication, arguing that the time limit for the issue of
the notice of assessment had lapsed. In particular, since
more than five years have passed since the taxable event
(December 1995, the date of the first provisional measure)
without issuing any formal instrument, the right of the tax
authorities to request the payment of additional taxes and
the authority to undertake legal action to obtain payment
have been challenged.
In 2017, following the unfavorable decisions issued in pre-
vious rulings, Eletropaulo filed an appeal in defense of its
rights and its actions with the Superior Tribunal de Justiça
(STJ) and the Supremo Tribunal Federal (STF). The proceed-
ings are still pending while the amounts subject to dispute
have been covered by a bank guarantee.
With regard to the request of the Office of the Attorney
General of the Brazilian National Treasury Department to
replace the bank guarantee with a deposit in court, the
court of second instance granted the petition. The com-
pany therefore replaced the bank guarantee with a cash
deposit and filed a clarification motion against the related
decision, which is currently awaiting a decision.
The overall amount involved in the dispute at December
31, 2021 was about €39 million.
FINSOCIAL - Eletropaulo
Following a final ruling issued by the Federal Regional Court
on September 11, 2011, Eletropaulo was recognized the
right to compensation for certain FINSOCIAL credits (so-
cial contributions) relating to sums paid from September
1989 to March 1992.
Notes to the consolidated financial statements
431
431
Despite the expiration of the relative statute of limitations,
the Federal Tax Authority contested the determination of
some credits and rejected the corresponding offsetting,
issuing tax assessments that the company promptly chal-
lenged in the administrative courts, defending the legiti-
macy of its calculations and actions.
After an unfavorable ruling at first instance, the company
filed an appeal before the administrative court of second
instance.
The overall amount involved in the dispute at December
31, 2021 was about €37 million.
Tax litigation in Spain
Income tax - Enel Iberia, Endesa and subsidiaries
In 2018, the Spanish tax authorities completed a general
audit involving the companies of the Group participating
in the Spanish tax consolidation mechanism. This audit,
which began in 2016, involved corporate income tax, value
added tax and withholding taxes (mainly for the years 2012
to 2014).
With reference to the main claims, the companies involved
have challenged the related assessments at the first ad-
ministrative level (Tribunal Económico-Administrativo Cen-
tral - TEAC), defending the correctness of their actions.
With regard to the disputes concerning corporate income
tax, the issues for which an unfavorable outcome is con-
sidered possible amounted to about €155 million at De-
cember 31, 2021:
• Enel Iberia is defending the appropriateness of the cri-
terion adopted for determining the deductibility of cap-
ital losses deriving from stock sales (around €106 mil-
lion) and certain financial expense (around €18 million);
• Endesa and its subsidiaries are mainly defending the
appropriateness of the criteria adopted for the deduct-
ibility of certain financial expense (about €25 million)
and costs for decommissioning nuclear power plants
(about €6 million).
In 2021, the Spanish tax authorities concluded a new gen-
eral audit for the years from 2015 to 2018. The companies
involved challenged the related assessments at the first
level of administrative adjudication (TEAC), arguing that
they had acted correctly.
In relation to the main dispute regarding corporate income
tax, which concerned the deductibility of certain financial
charges, the dispute for which an adverse outcome is con-
sidered possible has a value of about €232 million at De-
cember 31, 2021 (Enel Iberia €219 million and Endesa SA
€13 million).
Income tax - Enel Green Power España SL
On June 7, 2017, the Spanish tax authorities issued a notice
of assessment to Enel Green Power España SL, contesting
the treatment of the merger of Enel Unión Fenosa Renova-
bles SA (“EUFER”) into Enel Green Power España SL in 2011
432
432
Integrated Annual Report 2021
as a tax neutral transaction, asserting that the transaction
had no valid economic reason.
On July 6, 2017, the company appealed the assessment at
the first administrative level (Tribunal Económico-Adminis-
trativo Central - TEAC), defending the appropriateness of
the tax treatment applied to the merger. The company has
provided the supporting documentation demonstrating
the synergies achieved as a result of the merger in order
to prove the existence of a valid economic reason for the
transaction. On December 10, 2019, the TEAC denied the
appeal and the company is continuing to defend its ac-
tions in court (Audiencia Nacional).
The overall amount involved in the dispute at December
31, 2021 was about €98 million.
Tax litigation in Italy
Withholding tax - Enel Servizio Elettrico Nazionale
As a result of a tax audit initiated in March 2018 and fol-
lowing a subsequent investigation conducted with ques-
tionnaires submitted to the banks involved as assignees
in certain transfers of receivables from Servizio Elettrico
Nazionale SpA (SEN) in respect of mass market customers
under a framework agreement, on December 19, 2018, the
Revenue Agency - Regional Directorate of Lazio - Large
Taxpayers Office, notified the company of an assessment
in respect of the alleged violation of withholding tax obli-
gations relating to the amounts paid to the banks as part
of the aforementioned transfers in 2013.
In particular, the dispute arises from an assessment by the
Office that: (i) reclassified, for tax purposes only, the assign-
ment of receivables as a financing transaction; (ii) asserted
an alleged withholding obligation for the company com-
mensurate with the cost of the transaction (as the differ-
ence between the nominal value of the assigned receiva-
bles and the transfer price), reconstructing the subsequent
transactions involving the assigned receivables (further
sales and/or securitizations with non-residents carried out
by the banks), in which the company had no role.
In the first stages of the proceeding, which arose following
SEN’s appeal of the assessment, the company’s objections
concerning the illegitimacy of the Office’s reclassification
of the transaction for tax purposes and, consequently, of
the payment flows were not upheld, despite significant
procedural violations in the assessment activity.
Believing that it has valid legal grounds to continue the
dispute, the company filed an appeal with the Court of
Cassation, asserting the illegitimacy of the tax claim for vi-
olation and false application of the rules that, in the view
of the trial court, permit the classification of the income
generated by the assignment of receivables as “property
income”, which, consequently, would require SEN to apply
withholding tax.
The overall amount involved in the dispute at December
31, 2021 is about €81 million.
56. Future accounting standards
The following provides a list of accounting standards,
amendments and interpretations that will take effect for
the Group after December 31, 2021.
• “Amendments to IAS 1 - Classification of Liabilities as
Current or Non-current”, issued in January 2020. The
amendments regard the provisions of IAS 1 concern-
ing the presentation of liabilities. More specifically, the
changes clarify:
– the criteria to adopt in classifying a liability as current
or non-current, specifying the meaning of right of an
entity to defer settlement and that that right must
exist at the end of the reporting period;
– that the classification is unaffected by the intentions
or expectations of management about when the
entity will exercise its right to defer settlement of a
liability;
– that the right to defer exists if and only if the enti-
ty satisfies 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 coun-
terparty of cash, equity instruments, other assets or
services.
The amendments will take effect, subject to endorse-
ment, for annual periods beginning on or after January
1, 2023, with earlier application permitted.
• “Amendments to IFRS 3 - Reference to the Conceptual
Framework” issued in May 2020. The amendments are
intended to replace a reference to the definitions of as-
sets and liabilities provided by the Revised Conceptual
Framework for Financial Reporting issued in March 2018
(Conceptual Framework) without significantly changing
its provisions.
The amendments also add to IFRS 3 a requirement that,
for transactions and other events within the scope of
“IAS 37 - Provisions, contingent liabilities and contin-
gent assets” or “IFRIC 21 - Levies”, an acquirer applies
IAS 37 or IFRIC 21 (instead of the Conceptual Frame-
work) to identify the liabilities it has assumed in a busi-
ness combination.
Finally, the amendments clarify the existing guidelines
in IFRS 3 for contingent assets acquired in a business
combination, specifying that, if it is not sure that an as-
set exists at the acquisition date, the contingent asset
shall not be recognized.
The amendments will take effect for annual periods be-
ginning on or after January 1, 2022.
• “Amendments to IAS 16 - Property, Plant and Equipment:
Proceeds before Intended Use”, issued in May 2020. The
amendments prohibit a company from deducting from
the cost of property, plant and equipment amounts re-
ceived from selling items produced while the company
is preparing the asset for its intended use. Instead, a
company will recognize such sales proceeds and relat-
ed cost in profit or loss. The amendments will take ef-
fect for annual periods beginning on or after January 1,
2022. Early application is permitted.
• “Amendments to IAS 37 - Onerous Contracts - Costs
of Fulfilling a Contract”, issued in May 2020. The amend-
ments specify which costs an entity includes in deter-
mining the cost of fulfilling a contract for the purpose
of assessing whether the contract is onerous. To this
end, the cost of fulfilling a contract comprises the costs
that relate directly to the contract. These consist of
the incremental costs of fulfilling that contract or the
allotment of other costs that relate directly to fulfilling
contracts. The amendments will take effect for annual
periods beginning on or after January 1, 2022. Early ap-
plication is permitted.
• “Annual improvements to IFRS Standards 2018-2020”,
issued in May 2020. The document mainly comprises
amendments to the following standards:
– “IFRS 1 - First-Time Adoption of International Finan-
cial Reporting Standards”; the amendment simplifies
the application of IFRS 1 by an investee (subsidiary,
associate or joint venture) that becomes a first-time
adopter of IFRS Standards after its parent has al-
ready adopted them. More specifically, if the inves-
tee adopts the IFRSs after its parent and applies IFRS
1.D16 (a), then the investee can elect to measure the
cumulative translation differences for all foreign op-
erations at the amounts that would be included in the
parent’s consolidated financial statements, based on
parent’s date of transition to the IFRSs;
– “IFRS 9 - Financial Instruments”; with regard to fees
included in the “10 per cent“ test for derecognition
of financial liabilities, the amendment clarifies the
fees that an entity includes when assessing whether
the terms of a new or modified financial liability are
substantially different from the terms of the origi-
nal financial liability. In determining those fees paid
net of fees received, the borrower shall include only
fees paid or received between the borrower and the
lender, including fees paid or received by either the
borrower or lender on the other party’s behalf;
– “IFRS 16 - Leases”; the International Accounting
Standards Board amended Illustrative Example 13
accompanying “IFRS 16 - Leases”. Specifically, the
amendment eliminates the potential for confu-
sion in the application of IFRS 16 created by the
way in which Illustrative Example 13 had illustrated
the requirements for lease incentives. The example
had included a reimbursement relating to lease-
hold
improvements without explaining whether
the reimbursement qualified as a lease incentive.
The amendment removes the illustration of a re-
imbursement relating to leasehold improvements
from the example;
Notes to the consolidated financial statements
433
433
57. Events after the reporting period
Enel completes acquisition of 527 MW of
hydro capacity from ERG
On January 3, 2022, Enel Produzione SpA finalized the ac-
quisition of the entire share capital of ERG Hydro Srl from
ERG Power Generation SpA. Enel Produzione paid around
€1,039 million for the company, as well as an initial price
adjustment at closing of around €226 million to reflect
the mark-to-market valuation of certain hedging deriv-
atives of ERG Power Generation concerning part of the
future power to be generated by the ERG Hydro plants.
The agreement also provides for an additional price ad-
justment in the coming months, which will be calculated
mainly on the basis of the changes in ERG Hydro’s net
working capital and net financial position, and the level of
water reserves in certain basins included in the sale. The
plants owned by ERG Hydro, which are located in the Um-
bria, Lazio, and Marche regions, have an installed capacity
of 527 MW and an average annual output of around 1.5
TWh.
Enel places a €2.75 billion “sustainability-
linked bond” in three tranches on the
eurobond market
On January 10, 2022, Enel Finance International NV, the
Dutch-registered finance company controlled by Enel
SpA, placed a €2.75 billion “sustainability-linked bond” in
three tranches, linked to the achievement of Enel’s sus-
tainability objective for the reduction of direct green-
house gas emissions (Scope 1), contributing to the
achievement of the United Nations Sustainable Develop-
ment Goal (SDG) 13 “Climate Action” and in line with the
Group’s Sustainability-Linked Financing Framework.
Fitch revises Enel’s long-term rating to
“BBB+” and makes no change to the short-
term rating of “F-2”. The outlook is stable
On February 4, 2022, Fitch Ratings announced that it has
revised Enel SpA’s long-term rating to “BBB+” from the
previous “A-”. The agency also confirmed Enel’s short-
term rating at “F-2”. The outlook remains stable.
According to the agency, the change in Enel’s rating
mainly reflects the expected increase in financial leverage
in the medium term due to the investment opportunities
that have prompted Enel to gradually expand its capital
expenditure plans in response to the energy transition.
– “IAS 41 - Agriculture”; the amendment removes the
requirement for entities to exclude cash flows for tax-
ation when measuring fair value. Accordingly, entities
shall use pre-tax cash flows and a pre-tax rate to dis-
count those cash flows.
The amendments shall be applied prospectively for an-
nual periods beginning on or after January 1, 2022. Early
application is permitted.
• “Amendments to IAS 1 and IFRS Practice Statement 2
- Disclosure of Accounting Policies”, issued in February
2021. The amendments are intended to support entities
in deciding which accounting policies to disclose in the
financial statements. The amendments to IAS 1 require
companies to disclose their material accounting policy
information rather than their significant accounting pol-
icies. A guide on how to apply the concept of materiality
to disclosures on accounting policies is provided in the
amendments to IFRS Practice Statement 2. The amend-
ments will take effect for annual periods beginning on or
after January 1, 2023. Early application is permitted.
• “Amendments to IAS 8 - Definition of Accounting Esti-
mates”, issued in February 2021. The amendments clarify
how companies should distinguish changes in account-
ing policies from changes in accounting estimates. The
definition of changes in accounting estimates has been
replaced with a definition of accounting estimates as
“monetary amounts in financial statements that are sub-
ject to measurement uncertainty”. The amendments will
take effect for annual periods beginning on or after Jan-
uary 1, 2023. Early application is permitted.
• “Amendments to IAS 12 Income Taxes: Deferred Tax relat-
ed to Assets and Liabilities arising from a Single Transac-
tion”, issued in May 2021. The amendments require enti-
ties to recognize deferred tax on transactions that at in-
itial recognition give rise to equal taxable and deductible
temporary differences. The amendments will take effect,
subject to endorsement, for annual periods beginning on
or after January 1, 2023. Early application is permitted.
• “Amendments to IFRS 10 and IAS 28 - Sale or Contribu-
tion of Assets between an Investor and its Associate or
Joint Venture”, issued in September 2014. The amend-
ments clarify the accounting treatment for sales or con-
tribution of assets between an investor and its associates
or joint ventures. They confirm that the accounting treat-
ment depends on whether the assets sold or contributed
to an associate or joint venture constitute a “business“
(as defined in IFRS 3). The IASB has deferred the effective
date of these amendments indefinitely.
• “IFRS 17 - Insurance Contracts”, issued in May 2017. The
standard will take effect for annual periods beginning on
or after January 1, 2023, with earlier application permit-
ted.
The Group is assessing the potential impact of the future
application of the new provisions.
434
434
Integrated Annual Report 2021
Russia-Ukraine conflict
On February 24, 2022, the Russian President announced
“a special military operation” in Ukrainian territory that led
to the outbreak of conflict between the two countries.
In the previous weeks, various attempts had been made
to achieve a diplomatic solution to the strains between
Russia and Ukraine that, following extensive and pro-
longed military maneuvers by the Russian armed forces
along the Ukrainian border, had persisted for some time.
As the days went by, hostilities escalated, with an intensi-
fication of clashes.
The Russian military intervention in Ukraine triggered
prompt reactions from various countries and interna-
tional organizations. The European Council called on
Russia to immediately cease hostilities and withdraw its
armed forces from Ukraine in compliance with interna-
tional law. The United Nations General Assembly, meet-
ing in an emergency session, also approved a resolution
condemning the Russian military action in Ukraine, asking
Russia to withdraw the army.
At the same time, the European Commission is address-
ing the humanitarian crisis engendered by the conflict
in Ukraine, with the deployment of humanitarian aid and
emergency aid programs, including increased financial
support to Ukraine.
Negotiations are under way between the parties involved
to seek a diplomatic solution that will prevent the situa-
tion from becoming a threat to international peace and
security.
The European Union and other countries (e.g., the United
States, the United Kingdom, Australia, Japan, Switzerland
and others) have imposed severe sanctions on Russia,
which, although of varying effectiveness, have impacted
strategic sectors of the Russian economy and the finan-
cial sector and imposed personal restrictions on the Rus-
sian President and other political and business figures.
The main European sanctions involve:
• freezing Russian assets in the euro area;
• blocking the access of Russian banks to European fi-
nancial markets;
• imposing export control measures (including a ban on
the export of goods to Russia and Belarus in the avia-
tion, maritime, space, technology and “dual-use” sec-
tors);
• freezing commercial transactions with the Ukrainian
regions of Donetsk and Luhansk;
• excluding major Russian banks from the international
SWIFT transaction system;
• blocking current accounts with the Sberbank banking
group;
• closing airspace to Russian flights;
• freezing the personal assets of the Russian President,
oligarchs, politicians and senior executives of the Rus-
sian companies that support him.
These sanctions have had an initial impact on the ex-
change rate of the ruble, which has depreciated sharply
against the euro and the US dollar, on local interest rates
(which were increased to 20% by the Russian Central
Bank) and on the share prices of companies listed on the
Moscow Stock Exchange (with a significant decline being
recorded in March).
Financial difficulties have also been associated with an
increased level of IT risk, to which businesses and gov-
ernments are exposed, making it necessary to adopt ad-
equate defense measures and stringent internal controls
to safeguard their digital infrastructure.
Considering this background, the Enel Group has activat-
ed a task force to carefully monitor the status and evolu-
tion of current developments and manage potential risks.
Today, the Enel Group is present in Russia with a num-
ber of companies in which it holds control or joint con-
trol with other investors. More specifically, the Enel Group
controls:
• Enel Russia PJSC (56.43% owned by Enel SpA), a com-
pany listed on the Moscow Stock Exchange that gen-
erates electricity, mainly with three thermal generation
plants, and holds 100% stakes in three renewable gen-
eration companies;
• Enel Green Power Rus LLC (a 100% indirect subsidiary of
Enel SpA), a company that provides services for the de-
velopment of renewable energy projects and which holds
100% stakes in four renewable generation companies;
• Enel X Rus LLC (a 99% indirect subsidiary of Enel SpA).
Enel SpA also directly holds an investment of 49.5% in a
joint venture (Rusenergosbyt LLC) operating in the End-us-
er Markets Business Line.
At the end of 2021, the three thermal generation plants
operating in Russia had an installed capacity of 5,276 MW,
while renewables installed wind capacity was equal to 228
MW (including 138 MW of partial additional capacity of the
Murmansk Kolskaya Wind Farm plant, which is under con-
struction).
The contribution of the Russian companies to the main
consolidated performance aggregates in 2021 (consider-
ing the average 2021 euro/ruble exchange rate of 87.18) is
not significant and includes revenue of €564 million (0.6%
of the total consolidated revenue of the Enel Group), op-
erating profit of €51 million (0.7% of total Enel Group oper-
ating profit) and profit of €64 million (2.0% of Enel Group
profit).
At December 31, 2021, considering the end-2021 euro/ru-
ble exchange rate of 85.35, the main statement of financial
position items of the Enel Group companies operating in
Russia regarded:
• under assets, €846 million of property, plant and equip-
ment, €47 million in deferred tax assets, €44 million
in trade receivables and €123 million in cash and cash
equivalents;
Notes to the consolidated financial statements
435435
• under liabilities, €428 million in borrowings, €54 million in
deferred tax liabilities and €93 million in trade payables.
The Enel Group is constantly monitoring the impact of the
international crisis on its operations in Russia (with particu-
lar regard to the procurement of materials, services and
labor) and evaluating developments in market variables
(exchange rates, interest rates), first and foremost taking
consideration of the potential effects on performance and
financial position of the depreciation of the ruble against
the euro. Furthermore, the Enel Group is also assessing de-
velopments associated with the counter-sanctions being
deployed by Russia against investments in the country.
The Enel Group is conducting analyses to assess the in-
direct impacts of the war in Ukraine on operations, the
financial situation and performance in the main euro-ar-
ea countries in which it operates, with particular regard
to shortages of raw materials from the areas affected by
the conflict and the generalized increase in commodity
prices.
The Enel Group does not have gas supply contracts
(pipeline and LNG) with Russia, but in Italy measures are
being evaluated at the regulatory level to reduce the de-
mand for gas and to contain price volatility on the mar-
kets. In Spain (where the Group is present with its subsid-
iary Endesa SA), in addition to regulatory developments,
we are analyzing the effects on nuclear fuel orders from
Russia.
Particular attention is also paid to the impacts of the war
on activities in Slovakia, where the Enel Group is present
with the jointly controlled company Slovenské elektrárne
AS (SE), of which Enel SpA indirectly holds 33%. It oper-
ates in the generation of electricity from nuclear, thermal
and hydroelectric sources with an installed capacity of 4
GW. SE’s nuclear plants have links with Russia involving
technical-operational activities (supply of nuclear fuel
and technology), investments (Russian suppliers involved
in the construction of the MO3/4 plant who are currently
not targeted by the sanctions) and loans (SE’s debt expo-
sure to Sberbank).
In this highly fluid situation, characterized by considera-
ble regulatory uncertainty and high and volatile prices, the
Enel Group is carefully monitoring macroeconomic and
business variables in order to develop the most accurate
real-time estimates of impacts connected with regulatory
changes, sanctions and restrictions on assets, as well as
on suppliers and contracts applicable to the Enel Group,
taking due account of the recommendations issued by
national and supranational organizations on this issue.(44)
Enel finalizes renewal of partnership with
Cinven in Ufinet Latam
On March 24, 2022, Enel X International Srl (Enel X Inter-
national), a wholly-owned subsidiary of Enel X Srl (Enel X),
closed the agreement signed on December 21, 2021 with
a holding company controlled by the Sixth Cinven Fund
and a holding company controlled by the Seventh Cin-
ven Fund acquiring indirectly, through a holding compa-
ny, about 79% of the share capital of Ufinet Latam SLU
(“Ufinet” or the “Company”) from the Sixth Cinven Fund
and simultaneously selling 80.5% of the Company’s share
capital to the Seventh Cinven Fund. As a result, Enel X In-
ternational now indirectly retains a stake equal to 19.5%
of Ufinet, renewing the partnership in the Company with
Cinven.
More specifically, Enel X International, which previously
indirectly owned a stake of about 21% in the Company,
exercised the call option to acquire around 79% of the
share capital of Ufinet for €1,320 million. At the same
time, Enel X International received around €207 million as
a distribution of available reserves from Ufinet and simul-
taneously sold 80.5% of the Company’s share capital to
the Seventh Cinven Fund for about €1,186 million.
Under the agreement, Enel X International, in addition to
indirectly retaining 19.5% of the share capital of Ufinet,
keeps representation on the latter and its holding com-
pany’s boards of directors, retaining standard minority
shareholder protection rights.
(44) ESMA no. 71-99-1864 of March 14, 2022; CONSOB warning notice in the weekly bulletin of March 9-14, 2022.
436
436
Integrated Annual Report 2021
Declaration of the Chief Executive Officer and the officer in charge of
financial reporting of the Enel Group at December 31, 2021, 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
3. In addition, we certify that the consolidated financial
statements of the Enel Group at December 31, 2021:
a.
have been prepared in compliance with the Inter-
national 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 oth-
c.
er accounting records;
provide a true and fair representation of the financial
position, financial performance and cash flows of
the issuer and the companies included in the con-
solidation scope.
4. Finally, we certify that the Report on Operations, ac-
companied by the consolidated financial statements of
the Enel Group at December 31, 2021, contains a relia-
ble 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 ex-
posed.
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 provi-
sions of Article 154-bis, paragraphs 3 and 4, of Legisla-
tive Decree 58 of February 24, 1998:
a.
the appropriateness with respect to the character-
istics of the Enel Group and
b. the effective adoption of
the administrative and accounting procedures for
the preparation of the consolidated financial state-
ments of the Enel Group in the period between Jan-
uary 1, 2021 and December 31, 2021.
2. In this regard, we report that:
a.
the appropriateness of the administrative and ac-
counting 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 assess-
ment was carried out on the basis of the guidelines
set out in the “Internal Controls - Integrated Frame-
work” issued by the Committee of Sponsoring Or-
ganizations of the Treadway Commission (COSO);
b. the assessment of the internal control system for fi-
nancial reporting did not identify any material issues.
Rome, March 17, 2022
Francesco Starace
Alberto De Paoli
Chief Executive Officer
of Enel SpA
Officer in charge of financial reporting
of Enel SpA
Declaration of the Chief Executive Officer and the officer in charge
437437
Reports
Report of the Board of Statutory Auditors
438
Integrated Annual Report 2021
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’ MEETING
OF ENEL SpA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2021
(pursuant to Article 153 of Legislative Decree 58/1998 )
Shareholders,
During the year ended December 31, 2021 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 (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 2020
edition of the Italian Corporate Governance Code (hereinafter, the “Corporate
Governance Code”), which the Company adopted during the year;(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 Communication no.
DEM/1025564 of April 6, 2001, as amended, we report the following:
• 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
(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. Until that time, the
Company had adopted the corporate governance rules provided for in the 2018 edition of the
Corporate Governance Code for listed companies.
439439
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 2021 (in the section “Significant events in 2021”);
• 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
2021 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 2021. All transactions with related parties reported in the
notes to the separate financial statements for 2021 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 2021
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 2021, 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 separate
financial statements for 2021 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 2021,
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Integrated Annual Report 2021
which as indicated in the notes did not have a significant impact in the year under
review;
•
the separate financial statements for 2021 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 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 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 2021 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 2021, 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 2021
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 2021, which
did not have a significant impact in the year under review. Note also that, starting
from 2021, in compliance with the provisions of Delegated Regulation (EU) 2019/815
of December 17, 2018 (the “ESEF Regulation”), the Company has (i) drawn up its
entire Annual Financial Report (including the separate financial statements and the
consolidated financial statements, the respective reports on operations and the
associated certifications pursuant to Article 154-bis, paragraph 5, of the Consolidated
Law on Financial Intermediation) in the single electronic reporting format XHTML
(Extensible Hypertext Markup Language), and (ii) marked up (with specific tags) the
schedules of the consolidated financial statements and the related explanatory notes
using the iXBRL markup language (Inline eXtensible Business Reporting Language),
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in accordance with the ESEF taxonomy issued annually by ESMA, in order to facilitate
the accessibility, analysis and comparability of the annual financial reports;
•
the consolidated financial statements for 2021 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 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 2021 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 29, 2021, 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 2022, i.e. prior to the date of approval of the
financial statements for 2021;
• we examined the Board of Directors’ proposal for the allocation of net profit for 2021
and the distribution of available reserves and have no comments in this regard;
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Integrated Annual Report 2021
• 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 2022, that as at the date on which the 2021 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 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 2021 and the early months of 2022, 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: Enel Green Power, and Thermal Generation, Global Energy and Commodity
Management, Global Infrastructure and Networks, Enel X Global Retail and Global E-
Mobility; (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 optimizing the customer portfolio and generation assets,
pursuing the best integrated margin, 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), procurement at the Group level
(Global Procurement) and invoicing, credit and customer care processes (Global
Customer Operations); 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, Personnel 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;
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443
• 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;
• we monitored the independence of the audit firm, having received today from KPMG
specific written confirmation that they met that requirement (pursuant to the
provisions of Article 6, paragraph 2(a), of Regulation (EU) 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 Decree 39/2010 –
the nature and the scale of non-audit services provided to the Company and other
Enel Group companies by KPMG SpA and the entities belonging to its network. 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 KPMG SpA.
We held periodic meetings with the representatives of the audit firm, 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) 537/2014,
KPMG SpA today provided the Board of Statutory Auditors with the “additional report”
for 2021 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 Decree 39/2010.
As at the date of this report, the audit firm also reported that it did not prepare any
management letter for 2021;
• 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 the findings of the examinations
performed by KPMG SpA. The Chief Executive Officer and the officer responsible for
the preparation of the financial reports of Enel issued a statement (regarding the
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Integrated Annual Report 2021
Company’s 2021 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 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 2021
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 2022, the Board of Directors of
the Company expressed an analogous assessment of the situation and also noted,
in November 2021, that the main risks associated with the strategic targets set out
in the 2022-2024 Business Plan were compatible with the management of the
Company in a manner consistent with those targets;
•
in 2021 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,
verifying the compliance of Enel’s corporate governance arrangements with the
recommendations of the Code. Detailed information on the Company’s corporate
7
445
governance system can be found in the report on corporate governance and
ownership structure for 2021.
In June 2021, 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 that must inform the application of the Code’s
recommendations in general, adopting a transparent procedure, the details of which
are discussed in the report on corporate governance and ownership structure for
2021.
With regard to the so-called “self-assessment” of the independence of its members,
the Board of Statutory Auditors - in June 2021 and February 2022 - 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 2021 and during the first two months of 2022, 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 has been done since 2018, 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 approach adopted in
performing the board review for 2021 and the findings of that review are described
in detail in the report on corporate governance and ownership structure for 2021,
revealing the unanimous agreement of the members of the Board of Statutory
Auditors concerning the complete adequacy of its size, membership and functioning.
Compared with 2020, it was confirmed that the oversight body has adopted effective
and efficient operating methods that comply with the reference regulatory
framework.
Note also that, based on the findings of the board review and taking account of the
provisions of the policy on the diversity of its members (approved on January 29,
2018), the Board of Statutory Auditors - in view of the election of a new Board of
Statutory Auditors following the expiry of its term, scheduled for the Shareholders'
Meeting called to approve the separate financial statements of the Company for 2021
– issued specific guidance for the shareholders (available on the company website)
regarding the qualifications that the members of the Board of Statutory Auditors
should possess;
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Integrated Annual Report 2021
• During 2021, the Board of Statutory Auditors also participated in an induction
program, characterized by specific studies to update directors and statutory auditors
on corporate governance and climate change issues, with the aim of further
developing their skills with the support of a qualified external expert;
• 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 2021 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. The
audit firm, KPMG SpA, has 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;
•
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 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
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governance and ownership structure for 2021. The structure that monitors the
operation and compliance with the program and is responsible for updating it is a
collegial body. This body, appointed in July 2020, 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 2021 by that body,
including in meetings with its members. Our examination of those activities found no
facts or situations that would require mention in this report;
•
in 2021, the Board of Statutory Auditors issued a favorable opinion (at the meeting
of February 3, 2021) on the 2021 Audit Plan, in accordance with the provisions of
Article 7.C.1, letter c) of the Corporate Governance Code for listed companies (which
the Company still applied as at that date);
• 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 2021 for their respective positions and any compensation
instruments awarded to them is contained in the second section of the Report on
Remuneration Policy for 2022 and Remuneration Paid in 2021 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 6, 2022, 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 received in
2021 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 2022 – 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) 2017/828 as transposed into Italian law, with
(ii) the recommendations of the Italian Corporate Governance Code, as well as with
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Integrated Annual Report 2021
(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 2022, the Board of Statutory Auditors - taking account
of the recommendations in this regard by the Corporate Governance Code – 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 2021 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 (2). 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, decided 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, 2020, 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 under the peer group median for
the Chairman and in line with the median for the other standing Statutory Auditors.
The analysis also found that in 2020, 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 25 meetings compared with the 27 meetings held by Enel's Board of
Statutory Auditors.
On the basis of the analysis, it therefore emerged that the competitiveness of the
remuneration envisaged for the Chairman and the other standing members of Enel's
Board of Statutory Auditors is similar to the positioning of the non-executive directors
(2) The peer group consists of the following 19 companies: A2A, Atlantia, Assicurazioni Generali,
Banco BPM, BPER Banca, Eni, Hera, Leonardo, Mediobanca, Nexi, Pirelli, Poste Italiane, Prysmian,
Saipem, Snam, Terna, TIM, Unicredit and Unipol.
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449
of Enel with regard to the remuneration paid to them in their capacity as directors.
(net of attendance fees, which at Enel are not envisaged for participation in board
meetings but are paid by some of the peer group companies used for the purpose of
preparing the 2022 policy for directors’ remuneration).
However, the consultant noted that to correctly assess the appropriateness of the
remuneration paid to the members of the Board of Statutory Auditors, it would be
advisable to assess its amount in the light of the overall effort required by the
position, taking due consideration of the fact that the members of the Board of
Statutory Auditors also participate in the meetings of the Board committees (a
practice that enables them to perform their oversight of the effective implementation
of the recommendations of the Corporate Governance Code within Enel) without
receiving any additional remuneration 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 2020.
Accordingly, the analysis noted that companies in the financial services industry offer
higher remuneration on average to the chairman and the standing members of their
boards of statutory auditors, taking account of the greater number of meetings held.
The analysis also found 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 the larger 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 2021 was carried out in 28
meetings and with participation in the 16 meetings of the Board of Directors and
participation in the annual Shareholders’ Meeting, and, through the chairman or one or
more of its members, in the 17 meetings of the Control and Risk Committee (16 of which
held jointly with the Board of Statutory Auditors), in the 12 meetings of the Nomination
and Compensation Committee, in the 7 meetings of the Related Parties Committee and
in the 5 meetings of the Corporate Governance and Sustainability Committee, for a total
of 86 meetings. 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.
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Integrated Annual Report 2021
Finally, the Board of Statutory Auditors notes that in 2021 and until March 31, 2022, the
health emergency associated with the COVID-19 pandemic was still under way in Italy.
Through that date, Italian authorities maintained a number of 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 the light of the measures to contain
the COVID-19 pandemic, held many of its meetings in 2021 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 19, 2022 in a single call, establishing
that – in the light of the uncertain developments in the COVID-19 pandemic and taking
account of the continuing need to reduce travel and the risks associated with in-person
participation at events and considering 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(3) - 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 – as occurred on the occasion
of the Enel Shareholders’ Meetings held using similar procedures on May 14, 2020 and
May 20, 2021 - within the limits permitted by the special procedures envisaged for
holding the Meeting.
The Board of Statutory Auditors will continue to carry out its oversight activity until the
expiry of its term in close coordination with the Board of Directors and the audit firm to
monitor the impact – including economic and financial repercussions - of the COVID-19
pandemic, and more recently the sensitive geopolitical situation, on the Company and
the Enel Group. In this latter regard, in performing its statutory oversight activities the
Board of Statutory Auditors took due account of the recommendations contained in the
joint Bank of Italy - Consob - IVASS - UIF press release of March 7, 2022, as well as
(3) Whose validity was extended until July 31, 2022 by Article 3, paragraph 1, of Decree Law 228
of December 30, 2021, ratified with amendments by Law 15 of February 25, 2022.
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Consob's warning notice of March 18, 2022, regarding the possible impact of the Russia-
Ukraine conflict on the operations of listed companies.
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, 2021 in conformity with the
proposals of the Board of Directors.
Rome, April 14, 2022
The Board of Auditors
[signed]
____________________
Barbara Tadolini - Chairman
[signed]
____________________
Romina Guglielmetti - Auditor
[signed]
____________________
Claudio Sottoriva - Auditor
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Attachments
Subsidiaries, associates and other significant equity
investments of the Enel Group at December 31, 2021
In compliance with Articles 38 and 39 of Legislative Decree
127/1991 and CONSOB Notice no. DEM/6064293 of July
28, 2006, a list of subsidiaries and associates of Enel SpA
at December 31, 2021, pursuant to Article 2359 of the Ita-
lian Civil Code, and of other significant equity investments
is provided below. Enel has full title to all investments.
The following information is included for each company:
name, registered office, share capital, currency in which
share capital is denominated, business segment, method
of consolidation, Group companies that have a stake in the
company and their respective ownership share, and the
Group’s ownership share.
The following provides a key to the icons representing the
business segments.
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
460
460
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Parent
Enel SpA
Rome
IT
10,166,679,946.00
EUR
Holding
100.00%
Subsidiaries
25 Mile Creek
Windfarm LLC
Andover
US
1.00
400 Manley Solar LLC
Boston
US
-
4814 Investments LLC
Andover
US
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
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
ABC Solar 3 SpA
Santiago de
Chile
Santiago de
Chile
CL
1,000,000.00
CLP
CL
1,000,000.00
CLP
Equity
Equity
Abu Renewables India
Private Limited
Aced Renewables
Hidden Valley (RF)
(Pty) Ltd
Gurugram
IN
100,000.00
INR
Line-by-line
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
Agassiz Beach LLC
Minneapolis
US
-
USD
Line-by-line
Agatos Green Power
Trino Srl
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
Rio de Janeiro
BR
16,045,169.00
BRL
Line-by-line
Albany Solar LLC
Wilmington
US
-
USD
Line-by-line
Enel Green Power
Chile SA
100.00%
64.93%
Enel Green Power
Chile SA
Enel Green Power
India Private
Limited
100.00%
64.93%
100.00%
100.00%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
55.00%
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%
Enel Green Power
Italia Srl
100.00%
100.00%
Chi Minnesota
Wind LLC
51.00%
51.00%
Enel Green Power
Solar Energy Srl
100.00%
100.00%
Enel Green Power
España SLU
51.00%
35.76%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
Aurora Distributed
Solar LLC
100.00%
74.13%
Alliance SA
Managua
Alpe Adria Energia Srl
Udine
NI
IT
6,180,150.00
NIO
Equity
Ufinet Latam SLU
49.90%
10.28%
900,000.00
EUR
Equity
Enel Produzione
SpA
50.00%
50.00%
Alta Farms Azure
Ranchland Holdings
LLC
Alta Farms Wind
Project II LLC
Dover
US
100.00
Andover
US
1.00
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
Azure Ranchland
Holdings LLC
100.00%
100.00%
Attachments
461
461
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Alvorada Energia SA
Niterói
BR
22,317,415.92
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Ampla Energia e
Serviços SA
Rio de Janeiro
BR
2,498,230,386.65
BRL
Line-by-line
Enel Brasil SA
99.73%
82.05%
Annandale Solar LLC
Wilmington
US
-
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Apiacás Energia SA
Rio de Janeiro
BR
14,216,846.33
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Aquilla Wind Project
LLC
Aragonesa de
Actividades
Energéticas SA
Andover
US
1.00
USD
Line-by-line
Teruel
ES
60,100.00
EUR
Line-by-line
Aranort Desarrollos SL Madrid
ES
3,010.00
EUR
Line-by-line
Aravalli Surya (Project 1)
Private Limited
Gurugram
IN
8,100,000.00
INR
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SLU
Enel Green Power
India Private
Limited
100.00%
70.11%
100.00%
70.11%
100.00%
100.00%
Arcadia Power Inc.
Washington DC US
-
Arena Power Solar
11 SLU
Arena Power Solar
12 SLU
Arena Power Solar
13 SLU
Arena Power Solar
20 SLU
Arena Power Solar
33 SLU
Arena Power Solar
34 SLU
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Seville
ES
3,000.00
Seville
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Arena Power Solar
35 SLU
Seville
Asociación Nuclear
Ascó-Vandellós II AIE
Tarragona
ES
ES
3,000.00
USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
-
Enel X North
America Inc.
0.14%
0.14%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
19,232,400.00
EUR
Proportional
Endesa
Generación SA
85.41%
59.88%
Ateca Renovables SL
Madrid
ES
3,000.00
EUR
Equity
Athonet France SASU
Paris
FR
50,000.00
Athonet Srl
Trieste
IT
68,927.57
EUR
EUR
Athonet UK Ltd
Battle, East
Sussex
GB
250,001.00
GBP
Athonet USA Inc.
Wilmington
US
1.00
USD
-
-
-
-
462
462
Integrated Annual Report 2021
Baylio Solar SLU
19.72%
Dehesa de los
Guadalupes Solar
SLU
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
14.93%
35.06%
15.35%
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%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Atlántico Photovoltaic
SAS ESP
Barranquilla
CO
2,000,000.00
COP
Line-by-line
Enel Green Power
Colombia SAS ESP
100.00%
82.27%
Atwater Solar LLC
Wilmington
US
-
Aurora Distributed
Solar LLC
Aurora Land Holdings
LLC
Aurora Solar Holdings
LLC
Aurora Wind Holdings
LLC
Aurora Wind Project
LLC
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Andover
US
-
Andover
US
1.00
Autumn Hills LLC
Wilmington
US
-
USD
USD
USD
USD
USD
USD
USD
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%
Line-by-line
Aurora Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Avikiran Energy India
Private Limited
Gurugram
Avikiran Solar India
Private Limited
New Delhi
Avikiran Surya India
Private Limited
Gurugram
Avikiran Vayu India
Private Limited
Gurugram
IN
IN
IN
IN
73,300,000.00
INR
Line-by-line
253,659,580.00
INR
Line-by-line
100,000.00
INR
Line-by-line
100,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Azure Blue Jay Holdings
LLC
Dover
US
100.00
Azure Blue Jay Solar
Holdings LLC
Andover
US
1.00
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
Baikal Enterprise SL
Baleares Energy SL
Andover
US
-
Palma de
Mallorca
Palma de
Mallorca
ES
3,006.00
ES
4,509.00
Barnwell County Solar
Project LLC
Andover
US
-
Baylio Solar SLU
Seville
ES
3,000.00
Beaver Falls Water
Power Company
Wilmington
US
-
Beaver Valley Holdings
LLC
Wilmington
US
-
USD
USD
USD
USD
USD
USD
EUR
EUR
USD
EUR
USD
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
Azure Blue Jay
Solar Holdings LLC
100.00%
100.00%
Line-by-line
Azure Blue Jay
Solar Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
Azure Ranchland
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Beaver Valley
Holdings LLC
67.50%
67.50%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Attachments
463
463
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Belomechetskaya WPS Moscow
RU
3,010,000.00
RUB
Line-by-line
Bijou Hills Wind LLC
Andover
US
1.00
USD
Line-by-line
Bioenergy Casei Gerola
Srl
Rome
IT
100,000.00
EUR
Line-by-line
Enel Green Power
Rus Limited
Liability Company
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Bison Meadows Wind
Project LLC
Andover
US
-
Blair Solar I LLC
Andover
US
1.00
Blue Jay Solar I LLC
Andover
US
1.00
Blue Jay Solar II LLC
Andover
US
1.00
Blue Star Wind Project
LLC
Andover
US
1.00
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Azure Blue Jay
Solar 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%
BluRe MA
San José
LU
7,092,970.00
EUR
-
Bogaris PV1 SLU
Madrid
ES
3,000.00
EUR
Line-by-line
Slovenské
elektrárne AS
5.00%
1.65%
Enel Green Power
España SLU
100.00%
70.11%
Codensa SA ESP
62.99%
Bogotá ZE SAS
Bogotá
CO
503,609,700.00
COP
Line-by-line
39.74%
Boiro Energía SA
Boiro
ES
601,010.00
EUR
Equity
Bondia Energia Ltda
Niterói
BR
2,950,888.00
BRL
Line-by-line
Enel X Colombia
SAS
37.01%
Enel Green Power
España SLU
40.00%
28.04%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
Boone Stephens Solar
I LLC
Andover
US
1.00
Bosa del Ebro SL
Zaragoza
ES
3,010.00
Bottom Grass Solar
Project LLC
Andover
US
-
USD
EUR
USD
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
51.00%
35.75%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Boujdour Wind Farm
Casablanca
MA
300,000.00
MAD
Equity
Nareva Enel Green
Power Morocco
SA
Enel Green Power
Bouldercombe
Trust
Enel Green Power
Bouldercombe
Holding (Pty) Ltd
90.00%
45.00%
100.00%
100.00%
100.00%
100.00%
Enel Green Power
North America Inc.
24.08%
Sydney
AU
10.00
Sydney
AU
100.00
AUD
AUD
Line-by-line
Line-by-line
Bouldercombe Solar
Farm Trust
Bouldercombe Solar
(Pty) Ltd
Bp Hydro Finance
Partnership
Salt Lake City
US
-
USD
Line-by-line
100.00%
Brandonville Solar I LLC Andover
US
1.00
USD
Line-by-line
Enel Kansas LLC
75.92%
Brick Road Solar
Holdings LLC
100.00%
100.00%
464
464
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Bravo Dome Wind
Project LLC
Brazoria West Solar
Project LLC
Brazos Flat Solar
Project LLC
Brick Road Solar
Holdings LLC
Andover
US
1.00
Andover
US
-
Andover
US
-
Andover
US
1.00
Brush County Solar
Project LLC
Andover
US
-
Buckshutem Solar I LLC Andover
US
1.00
Buckshutem Solar
II LLC
Buffalo Dunes Wind
Project LLC
Andover
US
1.00
Topeka
US
-
USD
USD
USD
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
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
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
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%
Buffalo Spirit Wind
Project LLC
Bungala One Finco
(Pty) Ltd
Andover
US
1.00
Sydney
AU
1,000.00
Bungala One Operation
Holding Trust
Sydney
AU
100.00
Sydney
AU
100.00
USD
AUD
AUD
AUD
Enel Green Power
Canada Inc.
99.90%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Bungala One
Property (Pty) Ltd
100.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Sydney
AU
1,000.00
AUD
Line-by-line
Bungala One
Operations Holding
(Pty) Ltd
Bungala One
Operations (Pty) Ltd
Bungala One
Operations Trust
Bungala One Property
Holding (Pty) Ltd
Bungala One Property
Holding Trust
Bungala One Property
(Pty) Ltd
Sydney
AU
-
Sydney
AU
100.00
Sydney
AU
100.00
AUD
AUD
AUD
Sydney
AU
1,000.00
AUD
Line-by-line
Bungala One Property
Trust
Sydney
AU
-
Bungala Two Finco
(Pty) Ltd
Bungala Two
Operations Holding
(Pty) Ltd
Bungala Two
Operations Holding
Trust
Bungala Two
Operations (Pty) Ltd
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
AUD
AUD
AUD
AUD
AUD
Bungala One
Operations
Holding (Pty) Ltd
Bungala One
Operations
Holding (Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Line-by-line
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Bungala One
Property Holding
(Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Line-by-line
Line-by-line
Bungala Two
Property (Pty) Ltd
100.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Line-by-line
Bungala Two
Operations
Holding (Pty) Ltd
100.00%
51.00%
Attachments
465
465
Company name
Headquarters
Country Share capital
Currency
Segment
Bungala Two
Operations Trust
Bungala Two Property
Holding (Pty) Ltd
Bungala Two Property
Holding Trust
Bungala Two Property
(Pty) Ltd
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Sydney
AU
-
Bungala Two Property
Trust
Sydney
AU
1.00
Business Venture
Investments 1468
(Pty) Ltd
Butterfly Meadows
Solar Project LLC
Johannesburg
ZA
100.00
Andover
US
-
AUD
AUD
AUD
AUD
AUD
ZAR
USD
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Bungala Two
Operations
Holding (Pty) Ltd
100.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
51.00%
51.00%
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
50.00%
50.00%
Line-by-line
Line-by-line
Bungala Two
Property Holding
(Pty) Ltd
Bungala Two
Property Holding
(Pty) Ltd
100.00%
51.00%
100.00%
51.00%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
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
-
Castiblanco Solar SL
Madrid
ES
3,000.00
USD
USD
EUR
Line-by-line
Fenner Wind
Holdings LLC
100.00%
100.00%
Equity
Rocky Caney Wind
LLC
100.00%
20.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Enel Alberta Wind
Inc.
0.10%
Enel Green Power
Canada Inc.
99.90%
Endesa Red
SA (Sociedad
Unipersonal)
0.94%
0.66%
Enel Romania SA
9.52%
9.52%
Enel Green Power
Chile SA
6.00%
3.90%
Tradewind Energy
Inc.
100.00%
100.00%
Castle Rock Ridge
Limited Partnership
Alberta
CA
-
CAD
Line-by-line
100.00%
Catalana d’Iniciatives
SCR SA
Barcelona
ES
30,862,800.00
EUR
CCP.RO Bucharest SA
Bucharest
RO
79,800,000.00
RON
Cdec - Sic Ltda
Santiago de
Chile
CL
709,783,206.00
CLP
-
-
-
Andover
US
1.00
USD
Line-by-line
Cedar Run Wind
Project LLC
Celg Distribuição SA -
Celg D
Goiás
BR
5,664,951,979.22
BRL
Line-by-line
Enel Brasil SA
99.96%
82.24%
Central Dock Sud SA
Buenos Aires
AR
1,231,270,567.54
ARS
Line-by-line
33.94%
Enel Argentina SA 0.24%
Central Geradora
Fotovoltaica Bom
Nome Ltda
Salvador
BR
4,979,739.00
BRL
Line-by-line
Inversora Dock
Sud SA
71.78%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
466
466
Integrated Annual Report 2021
Central Geradora
Fotovoltaica São
Francisco Ltda
Central Geradora
Termelétrica Fortaleza
SA
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Niterói
BR
113,749,250.00
BRL
Line-by-line
Enel Brasil SA
0.00%
Enel X Brasil SA
100.00%
Group %
holding
82.27%
Fortaleza
BR
151,935,779.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Central Hidráulica
Güejar-Sierra SL
Central Térmica de
Anllares AIE
Seville
Madrid
ES
ES
364,213.34
EUR
595,000.00
EUR
Equity
Equity
Enel Green Power
España SLU
33.30%
23.35%
Endesa
Generación SA
33.33%
23.37%
Central Vuelta de
Obligado SA
Buenos Aires
AR
500,000.00
ARS
Equity
Central Dock
Sud SA
6.40%
Enel Generación
Costanera SA
1.30%
20.93%
Enel Generación El
Chocón SA
33.20%
Centrales Nucleares
Almaraz-Trillo AIE
Madrid
ES
-
Centrum Pre Vedu A
Vyskum SRO
Kalná Nad
Hronom
SK
6,639.00
EUR
EUR
Equity
Equity
Endesa
Generación SA
Slovenské
elektrárne AS
24.18%
16.95%
100.00%
33.00%
CESI - Centro
Elettrotecnico
Sperimentale Italiano
Giacinto Motta SpA
Champagne Storage
LLC
Milan
IT
8,550,000.00
EUR
Equity
Enel SpA
42.70%
42.70%
Wilmington
US
1.00
USD
Line-by-line
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Cheyenne Ridge II
Wind Project LLC
Andover
US
1.00
Cheyenne Ridge Wind
Project LLC
Andover
US
1.00
Chi Black River LLC
Wilmington
US
-
Chi Minnesota Wind
LLC
Wilmington
US
-
Chi Operations Inc.
Andover
US
100.00
Chi Power Inc.
Naples
US
100.00
Chi Power Marketing
Inc.
Wilmington
US
100.00
Chi West LLC
San Francisco
US
100.00
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
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%
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
Enel Green Power
North America Inc.
100.00%
100.00%
Chinango SAC
San Miguel
PE
295,249,298.00
PEN
Line-by-line
Enel Generación
Perú SAA
80.00%
55.02%
Chisago Solar LLC
Wilmington
US
-
Chisholm View II
Holding LLC
Wilmington
US
-
Chisholm View Wind
Project II LLC
Wilmington
US
-
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%
Attachments
467
467
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Chisholm View Wind
Project LLC
New York
US
-
USD
Equity
EGPNA REP Wind
Holdings LLC
100.00%
20.00%
Cimarron Bend Assets
LLC
Wilmington
US
-
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%
USD
USD
USD
USD
USD
USD
USD
USD
USD
EUR
EUR
Cimarron Bend III
HoldCo LLC
Andover
US
1.00
Cimarron Bend Wind
Holdings I LLC
Wilmington
US
-
Cimarron Bend Wind
Holdings II LLC
Cimarron Bend Wind
Holdings III LLC
Cimarron Bend Wind
Holdings LLC
Cimarron Bend Wind
Project I LLC
Dover
US
100.00
Andover
US
-
Wilmington
US
-
Wilmington
US
-
Cimarron Bend Wind
Project II LLC
Wilmington
US
-
Cimarron Bend Wind
Project III LLC
Cipher Solar Project
LLC
Wilmington
US
-
Andover
US
1.00
CityPoste Payment
Digital Srl
Teramo
CityPoste Payment SpA Teramo
CivDrone
Haifa
IT
IT
IL
10,000.00
-
1,093,350.00
ILS
Clear Sky Wind Project
LLC
Andover
US
1.00
Clinton Farms Wind
Project LLC
Cloudwalker Wind
Project LLC
Andover
US
1.00
Andover
US
1.00
USD
USD
USD
Line-by-line
Line-by-line
Line-by-line
Enel Green Power
Cimarron Bend
Wind Holdings
III LLC
Cimarron Bend
Wind Holdings
II LLC
Cimarron Bend
Wind Holdings
LLC
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
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%
AFS
AFS
-
CityPoste Payment
SpA
100.00%
100.00%
Enel X Srl
100.00%
100.00%
Enel Global
Infrastructure and
Networks Srl
4.27%
4.27%
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%
39.74%
Cogein Sannio Srl
Rome
IT
10,000.00
EUR
Line-by-line
Cogeneración El Salto
SL
Zaragoza
ES
36,060.73
EUR
Equity
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
España SLU
20.00%
14.02%
468
468
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Cogenio Srl
Rome
IT
2,310,000.00
EUR
Equity
Enel X Italia 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
Compañía Eólica
Tierras Altas SA
Sydney
AU
100.00
Sydney
AU
1.00
Andover
US
1.00
AUD
AUD
USD
Cadiz
ES
600,000.00
EUR
Rome
IT
14,730,800.00
EUR
Line-by-line
Enel Green Power
Cohuna Holdings
(Pty) Ltd
100.00%
100.00%
Line-by-line
Enel Green Power
Cohuna Trust
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Equity
Equity
Endesa Red
SA (Sociedad
Unipersonal)
33.50%
23.49%
Enel Produzione
SpA
25.00%
25.00%
Fortaleza
BR
914,346,885.76
BRL
Line-by-line
Enel Brasil SA
74.05%
60.92%
Buenos Aires
AR
2,025,191,313.00
ARS
Line-by-line
Enel CIEN SA
25.85%
82.27%
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%
82.27%
Soria
ES
13,222,000.00
EUR
Equity
26.29%
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
Wilmington
US
-
Wilmington
US
-
USD
USD
USD
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
España SLU
35.63%
Enel Global
Thermal
Generation Srl
100.00%
100.00%
Wilmington
US
550,000.00
USD
Line-by-line
Rome
IT
73,000.00
EUR
Line-by-line
Enel Green Power
North America Inc.
81.83%
81.83%
Enel Green Power
Italia Srl
100.00%
100.00%
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%
Consolidated Hydro
New Hampshire LLC
Consolidated Hydro
Southeast LLC
Consolidated Pumped
Storage Inc.
Conza Green Energy
Srl
Copper Landing Solar
Project LLC
Corporación
Empresarial de
Extremadura SA
Corporación Eólica de
Zaragoza SL
La Puebla de
Alfinden
ES
271,652.00
EUR
Equity
Enel Green Power
España SLU
25.00%
17.53%
Country Roads Solar
Project LLC
Cow Creek Wind
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
Tradewind Energy
Inc.
100.00%
100.00%
Attachments
469
469
Company name
Headquarters
Country Share capital
Currency
Segment
Crockett Solar I LLC
Andover
US
1.00
Cross Trails Energy
Storage Project LLC
Dairy Meadows Wind
Project 1 LLC
Dairy Meadows Wind
Project 2 LLC
Dairy Meadows Wind
Project 3 LLC
Daisy Patch Solar
Project LLC
Andover
US
-
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Andover
US
-
Danax Energy (Pty) Ltd
Sandton
ZA
100.00
USD
USD
USD
USD
USD
USD
ZAR
Consolidation
method
Held by
% holding
Group %
holding
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
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 Green Power
RSA (Pty) Ltd
100.00%
100.00%
Dara Solar Investment
Srl
Bucharest
RO
592,400.00
RON
Line-by-line
Dauphin Solar I LLC
Andover
US
1.00
USD
Line-by-line
Enel Green Power
Romania Srl
100.00%
100.00%
Brick Road Solar
Holdings LLC
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
Seville
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
EUR
EUR
EUR
Enel Green Power
SpA
0.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Depuración Destilación
Reciclaje SL
Boiro
ES
600,000.00
EUR
Equity
Enel Green Power
España SLU
40.00%
28.04%
Derivex SA
Bogotá
CO
715,292,000.00
COP
-
Emgesa SA ESP
5.00%
1.99%
Mexico City
MX
33,101,350.00
MXN
Line-by-line
Rome
IT
436,535.29
EUR
-
Enel Green Power
México S de RL
de Cv
99.99%
Energía Nueva
Energía Limpia
México S de RL
de Cv
0.01%
100.00%
Enel Produzione
SpA
1.76%
1.76%
Wilmington
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
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
470
470
Integrated Annual Report 2021
Endesa Red
SA (Sociedad
Unipersonal)
55.00%
Hidroeléctrica de
Catalunya SL
45.00%
70.11%
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
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 capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Distrilec Inversora SA
Buenos Aires
AR
497,612,021.00
ARS
Line-by-line
Enel Américas SA 51.50%
42.37%
Dmd Holding AS in
liquidation
Trenčín-
Zlatovce
SK
199,543,284.87
EUR
-
Dodge Center
Distributed Solar LLC
Wilmington
US
-
USD
Line-by-line
Dolores Wind SA de Cv Mexico City
MX
200.00
MXN
Line-by-line
Mexico City
MX
2,070,600,646.00
MXN
Equity
Slovenské
elektrárne AS
2.94%
0.97%
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%
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
Enel Green Power
India Private
Limited
100.00%
50.00%
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Enel X MA
Holdings LLC
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
100.00%
100.00%
70.11%
Dominica Energía
Limpia SA de Cv
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
-
Dwarka Vayu 1 Private
Limited
Gurgaon
E.S.CO. Comuni Srl
Bergamo
IN
IT
Eastwood Solar LLC
Wilmington
US
-
Ebenezer Solar I LLC
Andover
US
1.00
USD
USD
USD
USD
USD
USD
USD
USD
100,000.00
INR
Line-by-line
1,000,000.00
EUR
Line-by-line
Enel X Italia Srl
60.00%
60.00%
Edgartown Depot Solar
1 LLC
Edistribución Redes
Digitales SL (Sociedad
Unipersonal)
Boston
US
-
Line-by-line
Madrid
ES
1,204,540,060.00
EUR
Line-by-line
E-Distribuţie Banat SA
Timisoara
RO
382,158,580.00
RON
Line-by-line
Enel SpA
51.00%
51.00%
E-Distribuţie Dobrogea
SA
E-Distribuţie Muntenia
SA
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%
e-distribuzione SpA
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
Enel X Italia Srl
50.00%
50.00%
EGP Australia (Pty) Ltd
Sydney
AU
10,000.00
AUD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Attachments
471
471
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGP Bioenergy Srl
Rome
IT
1,000,000.00
EUR
Line-by-line
Bogotá
CO
8,000,000.00
COP
Line-by-line
EGP Fotovoltaica La
Loma SAS in liquidation
EGP Geronimo Holding
Company Inc.
Wilmington
US
1,000.00
Enel Green Power
Puglia Srl
100.00%
100.00%
Enel Green Power
Colombia SAS ESP
100.00%
82.27%
EGP HoldCo 1 LLC
Andover
US
-
EGP HoldCo 10 LLC
Andover
US
-
EGP HoldCo 11 LLC
Andover
US
-
EGP HoldCo 12 LLC
Andover
US
-
EGP HoldCo 13 LLC
Andover
US
-
EGP HoldCo 14 LLC
Andover
US
-
EGP HoldCo 15 LLC
Andover
US
-
EGP HoldCo 16 LLC
Andover
US
-
EGP HoldCo 17 LLC
Andover
US
-
EGP HoldCo 18 LLC
Andover
US
-
EGP HoldCo 2 LLC
Andover
US
-
EGP HoldCo 3 LLC
Andover
US
-
EGP HoldCo 4 LLC
Andover
US
-
EGP HoldCo 5 LLC
Andover
US
-
EGP HoldCo 6 LLC
Andover
US
-
EGP HoldCo 7 LLC
Andover
US
-
EGP HoldCo 8 LLC
Andover
US
-
EGP HoldCo 9 LLC
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
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%
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%
EGP Magdalena Solar
SA de Cv
EGP Matimba NewCo
1 Srl
Mexico City
MX
691,771,740.00
MXN
Line-by-line
Rome
IT
10,000.00
EUR
Line-by-line
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
472
472
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGP Matimba NewCo
2 Srl
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
EGP Nevada Power LLC Wilmington
US
-
EGP Salt Wells Solar
LLC
EGP San Leandro
Microgrid I LLC
Wilmington
US
-
Wilmington
US
-
EGP Solar Services LLC Andover
US
-
EGP Stillwater Solar
LLC
Wilmington
US
-
EGP Stillwater Solar PV
II LLC
Wilmington
US
1.00
EGP Timber Hills
Project LLC
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
Los Angeles
US
-
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
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
Tradewind Energy
Inc.
100.00%
100.00%
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%
Attachments
473
473
Company name
Headquarters
Country Share capital
Currency
Segment
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
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
EGPNA Development
Holdings LLC
Wilmington
US
-
EGPNA Hydro Holdings
LLC
EGPNA Preferred Wind
Holdings II LLC
EGPNA Preferred Wind
Holdings LLC
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
EGPNA Project HoldCo
1 LLC
Dover
US
100.00
EGPNA Project HoldCo
2 LLC
Dover
US
100.00
EGPNA Project HoldCo
5 LLC
Dover
US
100.00
EGPNA Project HoldCo
6 LLC
Dover
US
100.00
EGPNA Project HoldCo
7 LLC
Dover
US
100.00
EGPNA Renewable
Energy Partners LLC
EGPNA REP Holdings
LLC
Wilmington
US
-
Wilmington
US
-
474
474
Integrated Annual Report 2021
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
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 Green Power
North America
Development LLC
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
Enel Green Power
North America Inc.
100.00%
100.00%
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
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%
Equity
EGPNA REP
Holdings LLC
20.00%
20.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Company name
Headquarters
Country Share capital
Currency
Segment
EGPNA REP Solar
Holdings LLC
EGPNA REP Wind
Holdings LLC
EGPNA Wind Holdings
1 LLC
EGPNA-SP Seven
Cowboy Holdings LLC
Wilmington
US
-
Wilmington
US
-
Wilmington
US
-
Andover
US
1.00
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Equity
Equity
EGPNA Renewable
Energy Partners
LLC
EGPNA REP Wind
Holdings LLC
100.00%
20.00%
100.00%
20.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Endesa
Generación SA
40.99%
Elcogas SA in
liquidation
Puertollano
(Ciudad Real)
ES
809,690.40
EUR
Equity
33.06%
Enel SpA
4.32%
Enel Green Power
Romania Srl
100.00%
Elcomex Solar Energy
Srl
Bucharest
RO
4,590,000.00
RON
Line-by-line
100.00%
Enel Green Power
SpA
0.00%
Endesa
Generación
Portugal SA
50.00%
35.06%
Enel Green Power
RSA (Pty) Ltd
60.00%
60.00%
Endesa Red
SA (Sociedad
Unipersonal)
52.54%
Hidroeléctrica de
Catalunya SL
47.46%
70.11%
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
50.00%
35.06%
100.00%
70.11%
50.00%
35.06%
Slovenské
elektrárne AS
4.00%
1.32%
Livister Guatemala
SA
1.00%
Elecgas SA
Pego
PT
50,000.00
EUR
Equity
Electra Capital (RF)
(Pty) Ltd
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Eléctrica de Jafre SA
Barcelona
ES
165,876.00
EUR
Line-by-line
Eléctrica de Lijar SL
Cadiz
ES
1,081,821.79
EUR
Equity
Barcelona
ES
500,000.00
EUR
Line-by-line
Cadiz
ES
4,960,246.40
EUR
Equity
Eléctrica del Ebro SA
(Sociedad Unipersonal)
Electricidad de Puerto
Real SA
Electrometalúrgica del
Ebro SL
Eletropaulo
Metropolitana
Eletricidade de São
Paulo SA
Barcelona
ES
2,906,862.00
EUR
-
Enel Green Power
España SLU
0.18%
0.12%
São Paulo
BR
3,079,524,934.33
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Elini
Antwerp
BE
76,273,810.00
EUR
-
Emerging Networks El
Salvador SA de Cv
Emerging Networks
Latam Inc.
Emerging Networks
Panama SA
San Salvador
SV
2,000.00
USD
Equity
20.60%
Livister Latam SLU 99.00%
Wilmington
US
100.00
Panama City
PA
300.00
USD
USD
Equity
Ifx Networks Ltd
100.00%
20.60%
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%
39.89%
Attachments
475
475
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Emintegral Cycle SLU
Madrid
Empresa Carbonífera
del Sur SA
Madrid
ES
ES
3,000.00
EUR
Line-by-line
18,030,000.00
EUR
Line-by-line
Empresa de Alumbrado
Eléctrico de Ceuta
Distribución SA
(Sociedad Unipersonal)
Ceuta
ES
9,335,000.00
EUR
Line-by-line
Empresa de Alumbrado
Eléctrico de Ceuta SA
Ceuta
ES
16,562,250.00
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Endesa
Generación SA
Empresa de
Alumbrado
Eléctrico de Ceuta
SA
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
100.00%
67.59%
96.41%
67.59%
Enel Green Power
Perú SAC
100.00%
Empresa de
Generación Eléctrica
Los Pinos SA
Empresa de
Generación Eléctrica
Marcona SAC
Empresa Distribuidora
Sur SA - Edesur
San Miguel
PE
7,928,044.00
PEN
Line-by-line
82.27%
Energética
Monzón SAC
0.00%
Enel Green Power
Perú SAC
100.00%
San Miguel
PE
3,368,424.00
PEN
Line-by-line
82.27%
Energética
Monzón SAC
0.00%
Distrilec Inversora
SA
56.36%
Buenos Aires
AR
898,585,028.00
ARS
Line-by-line
59.33%
Enel Argentina SA 43.10%
Empresa Eléctrica
Pehuenche SA
Santiago de
Chile
CL
175,774,920,733.00
CLP
Line-by-line
Enel Generación
Chile SA
92.65%
56.27%
Empresa Propietaria de
la Red SA
Panama City
PA
58,500,000.00
USD
-
Enel SpA
11.11%
11.11%
Endesa Capital SA
Madrid
ES
60,200.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Endesa
Comercialização de
Energia SA
Endesa Energía
Renovable SL
(Sociedad Unipersonal)
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%
Endesa Energía SA
Madrid
Endesa Financiación
Filiales SA
Madrid
Endesa Generación
II SA
Endesa Generación
Nuclear SA
Seville
Seville
ES
ES
ES
ES
14,445,575.90
EUR
Line-by-line
Endesa SA
100.00%
70.11%
4,621,003,006.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
63,107.00
60,000.00
EUR
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Line-by-line
Endesa
Generación SA
100.00%
70.11%
Endesa Generación
Portugal SA
Lisbon
PT
50,000.00
EUR
Line-by-line
Endesa Energía SA 0.20%
Endesa
Generación SA
99.20%
70.11%
Enel Green Power
España SLU
0.60%
Endesa Generación SA Seville
ES
1,940,379,735.35
EUR
Line-by-line
Endesa SA
100.00%
70.11%
Endesa Ingeniería SLU
Seville
ES
965,305.00
EUR
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
476
476
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Endesa Medios y
Sistemas SL (Sociedad
Unipersonal)
Endesa Operaciones y
Servicios Comerciales
SL
Endesa Red SA
(Sociedad Unipersonal)
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%
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%
Enel Iberia Srl
70.10%
Endesa SA
0.02%
Endesa Soluciones SL Madrid
Endesa X Servicios SLU Madrid
ES
ES
2,874,621.80
EUR
Equity
Endesa X Servicios
SLU
20.00%
14.02%
60,000.00
EUR
Line-by-line
Endesa SA
100.00%
70.11%
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 0.00%
Enel Américas SA
Santiago de
Chile
CL
15,799,498,544.85 USD
Line-by-line
82.27%
Enel and Shikun &
Binui Innovation
Infralab Ltd
Airport City
IL
38,000.00
ILS
Equity
Enel SpA
82.27%
Enel Global
Infrastructure and
Networks Srl
50.00%
50.00%
Enel Américas SA 99.92%
Enel Argentina SA
Buenos Aires
AR
2,297,711,908.00
ARS
Line-by-line
82.25%
Enel Bella Energy
Storage LLC
Wilmington
US
-
USD
Line-by-line
Enel Generación
Chile SA
0.08%
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Enel Brasil Central SA
Rio de Janeiro
BR
10,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Américas SA 99.50%
Enel Brasil SA
Niterói
BR
32,387,634,190.06
BRL
Line-by-line
Enel Brasil SA
0.50%
82.27%
Energía y Servicios
South America
SpA
0.00%
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
Rio de Janeiro
BR
285,044,682.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Colina SA
Santiago de
Chile
CL
82,222,000.00
CLP
Line-by-line
64.34%
Enel Chile SA
0.00%
Enel Distribución
Chile SA
100.00%
Enel Cove Fort II LLC
Wilmington
US
-
Enel Cove Fort LLC
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%
Attachments
477
477
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Distribución Chile
SA
Santiago de
Chile
CL
177,568,664,063.00 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%
68.41%
Enel Energia SpA
Rome
IT
302,039.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Energía SA de Cv Mexico City
MX
25,000,100.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
100.00%
Energía Nueva de
Iguu S de RL de Cv
0.00%
100.00%
Enel Energie Muntenia
SA
Bucharest
RO
37,004,350.00
RON
Line-by-line
Enel SpA
78.00%
78.00%
Enel Energie SA
Bucharest
RO
140,000,000.00
RON
Line-by-line
Enel SpA
51.00%
51.00%
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
Sydney
AU
200,100.00
AUD
Line-by-line
Wilmington
ZA
100.00
ZAR
Line-by-line
Andover
US
100.00
USD
Line-by-line
Wilmington
US
200,000,000.00
USD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Enel X
International Srl
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel North
America Inc.
Enel Holding
Finance Srl
100.00%
100.00%
75.00%
Amsterdam
NL
1,478,810,371.00
EUR
Line-by-line
100.00%
Enel Fortuna SA
Panama City
PA
100,000,000.00
USD
Line-by-line
Enel SpA
25.00%
Enel Green Power
Panamá Srl
50.06%
41.18%
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
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
Andover
US
-
478
478
Integrated Annual Report 2021
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%
Company name
Headquarters
Country Share capital
Currency
Segment
Enel Future Project
2020 #19 LLC
Enel Future Project
2020 #2 LLC
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
-
Andover
US
-
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
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%
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
Buenos Aires
AR
701,988,378.00
ARS
Line-by-line
Enel Argentina SA 75.68%
62.25%
Buenos Aires
AR
18,321,776,559.00
ARS
Line-by-line
54.07%
Hidroinvest SA
59.00%
Enel Argentina SA 8.67%
San Miguel
PE
2,108,101,266.48
PEN
Line-by-line
Enel Perú SAC
83.60%
68.78%
San Miguel
PE
73,982,594.00
PEN
Line-by-line
Enel Perú SAC
96.50%
79.39%
Mexico City
MX
7,100,100.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
100.00%
Energía Nueva de
Iguu S de RL de Cv
0.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Geothermal LLC Wilmington
US
-
USD
Line-by-line
Enel Global
Infrastructure and
Networks Srl
Rome
Enel Global Services Srl Rome
Enel Global Thermal
Generation Srl
Enel Global Trading
SpA
Rome
Rome
IT
IT
IT
IT
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%
1,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
90,885,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Attachments
479
479
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power
Argentina SA
Buenos Aires
AR
463,577,761.00
ARS
Line-by-line
Enel Américas SA 99.86%
Enel Green Power
SpA
0.00%
82.27%
Energía y Servicios
South America
SpA
0.14%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
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
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
Azure Blue Jay Solar
Holdings LLC
Sydney
AU
100.00
Sydney
AU
100.00
Andover
US
1.00
AUD
AUD
USD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
480
480
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power
Azure Ranchland
Holdings LLC
Enel Green Power Boa
Vista 01 Ltda
Enel Green Power Boa
Vista Eólica SA
Enel Green Power
Bouldercombe Holding
(Pty) Ltd
Enel Green Power
Bouldercombe Trust
Enel Green Power
Brejolândia Solar SA
Enel Green Power
Bungala (Pty) Ltd
Enel Green Power
Bungala Trust
Enel Green Power
Cabeça de Boi SA
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Salvador
BR
3,554,607.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
Rio de Janeiro
BR
104,890,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Sydney
AU
100.00
Sydney
AU
10.00
AUD
AUD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Line-by-line
Enel Green Power
Australia Trust
100.00%
100.00%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
Sydney
AU
100.00
Sydney
AU
-
AUD
AUD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Niterói
BR
270,114,539.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power
Cachoeira Dourada SA
Cachoeira
Dourada
BR
64,339,835.85
BRL
Line-by-line
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
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.61%
Enel Green
Power Cachoeira
Dourada SA
0.15%
82.07%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Chile SA
99.99%
82.27%
Enel Green Power
Chile SA
Santiago de
Chile
CL
842,121,530.67
USD
Line-by-line
64.93%
Enel SpA
0.01%
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
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
13,849,425,000.00
COP
Line-by-line
Enel Américas SA
100.00%
82.27%
San José
CR
27,500,000.00
USD
Line-by-line
ESSA2 SpA
100.00%
82.27%
Attachments
481
481
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power Cove
Fort Solar LLC
Enel Green Power
Cremzow GmbH &
Co. Kg
Enel Green Power
Cremzow Verwaltungs
GmbH
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
Enel X Germany
GmbH
90.00%
90.00%
Enel X Germany
GmbH
90.00%
90.00%
Enel Brasil SA
99.17%
Enel Green Power
Cristal Eólica SA
Rio de Janeiro
BR
144,784,899.00
BRL
Line-by-line
Enel Green Power
Cristal Eólica SA
0.00%
82.27%
Enel Green Power
Cumaru 01 SA
Enel Green Power
Cumaru 02 SA
Enel Green Power
Cumaru 03 SA
Enel Green Power
Cumaru 04 SA
Enel Green Power
Cumaru 05 SA
Niterói
BR
204,653,590.90
BRL
Line-by-line
Niterói
BR
210,001,000.00
BRL
Line-by-line
Rio de Janeiro
BR
200,001,000.00
BRL
Line-by-line
Rio de Janeiro
BR
200,001,000.00
BRL
Line-by-line
Rio de Janeiro
BR
180,208,000.90
BRL
Line-by-line
Enel Green Power
Cumaru Participações
SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power
Cumaru Solar 01 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power
Cumaru Solar 02 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
0.83%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
482
482
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power
Damascena Eólica SA
Rio de Janeiro
BR
83,709,003.00
BRL
Line-by-line
Enel Brasil SA
99.16%
Enel Green Power
Desenvolvimento
Ltda
0.84%
Group %
holding
82.27%
Enel Green Power
Delfina A Eólica SA
Enel Green Power
Delfina B Eólica SA
Enel Green Power
Delfina C Eólica SA
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
Enel Green Power
Egypt SAE
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
España SLU
Rio de Janeiro
BR
549,062,483.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
93,068,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
31,105,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
105,864,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Niterói
BR
105,936,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
46,617,590.35
BRL
Line-by-line
Rome
IT
20,000.00
EUR
Line-by-line
Wilmington
US
1.00
USD
Line-by-line
Enel Brasil SA
100.00%
Energía y Servicios
South America
SpA
0.00%
82.27%
Enel Green Power
SpA
100.00%
100.00%
Diamond Vista
Holdings LLC
100.00%
100.00%
Rio de Janeiro
BR
130,354,009.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Cairo
EG
250,000.00
EGP
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
El Salvador
SV
22,860.00
USD
Line-by-line
Enel Green Power
SpA
99.96%
Energía y Servicios
South America
SpA
0.04%
Enel Alberta Wind
Inc.
1.00%
99.99%
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%
Rio de Janeiro
BR
135,191,530.00
BRL
Line-by-line
Seville
ES
11,152.74
EUR
Line-by-line
Enel Green Power
Canada Inc.
99.90%
Enel Brasil SA
98.81%
Enel Green Power
Desenvolvimento
Ltda
1.19%
82.27%
Enel Green Power
Emiliana Eólica SA
0.00%
Endesa
Generación SA
100.00%
70.11%
Attachments
483
483
Group %
holding
82.27%
82.27%
Enel Brasil SA
99.14%
Enel Green Power
Desenvolvimento
Ltda
0.86%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
82.27%
82.27%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power
Esperança Eólica SA
Rio de Janeiro
BR
129,418,174.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Niterói
BR
264,141,174.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power
Esperança Solar SA
Enel Green Power
Fazenda 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
Girgarre Trust
Enel Green Power
Global Investment BV
Enel Green Power
Guatemala SA
Enel Green Power
Hadros Wind Limited
Partnership
-
Enel Green Power
Fontes dos Ventos 2 SA
Rio de Janeiro
BR
283,315,219.00
BRL
Line-by-line
Enel Green Power
Fontes dos Ventos 3 SA
Rio de Janeiro
BR
221,001,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Paris
FR
100,000.00
EUR
Line-by-line
Berlin
DE
25,000.00
EUR
Line-by-line
Sydney
AU
100.00
Sydney
AU
10.00
AUD
AUD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
100.00%
Line-by-line
Enel Green Power
Australia Trust
100.00%
100.00%
Amsterdam
NL
10,000.00
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Enel Américas SA 0.00%
Guatemala City GT
67,208,000.00
GTQ
Line-by-line
82.27%
CA
1,000.00
CAD
Line-by-line
100.00%
ESSA2 SpA
100.00%
Enel Alberta Wind
Inc.
1.00%
Enel Green Power
Hellas SA
Enel Green Power
Hellas Supply Single
Member SA
Maroussi
GR
159,187,850.00
EUR
Line-by-line
Maroussi
GR
600,000.00
EUR
Line-by-line
484
484
Integrated Annual Report 2021
Enel Green Power
Canada Inc.
99.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Hellas SA
100.00%
100.00%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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
Maroussi
GR
141,569,641.00
EUR
Line-by-line
Enel Green Power
Hellas SA
100.00%
100.00%
Dover
US
1.00
USD
Line-by-line
Hilltopper Wind
Holdings LLC
100.00%
100.00%
Rio de Janeiro
BR
431,566,053.00
BRL
Line-by-line
82.27%
Enel Brasil SA
99.99%
Alba Energia Ltda 0.01%
Enel Green Power India
Private Limited
New Delhi
Enel Green Power
Italia Srl
Rome
IN
IT
113,504,823.00
INR
Line-by-line
Enel Green Power
Development Srl
100.00%
100.00%
272,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
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
Enel Green Power
Korea LLC
Enel Green Power
Lagoa do Sol 01 SA
Enel Green Power
Lagoa do Sol 02 SA
Rio de Janeiro
BR
210,706,645.67
BRL
Line-by-line
Enel Brasil SA
99.91%
82.27%
Bondia Energia
Ltda
0.09%
Enel Green
Power Brasil
Participações Ltda
0.00%
Bondia Energia
Ltda
0.00%
Rio de Janeiro
BR
219,235,933.00
BRL
Line-by-line
82.27%
Rio de Janeiro
BR
407,279,143.00
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Bondia Energia
Ltda
0.00%
Rio de Janeiro
BR
130,259,530.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Brasil SA
98.84%
Enel Green Power
Desenvolvimento
Ltda
1.16%
Enel Green Power
RSA (Pty) Ltd
1.00%
82.27%
Nairobi
KE
100,000.00
KES
Line-by-line
100.00%
Seoul
KR
4,350,000,000.00
KRW
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power
SpA
99.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
Attachments
485
485
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
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
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
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
Teresina
BR
1,000,000.00
BRL
Line-by-line
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
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Group %
holding
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Andover
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rio de Janeiro
BR
90,722,530.00
BRL
Line-by-line
Enel Brasil SA
99.20%
Enel Green Power
Desenvolvimento
Ltda
0.80%
82.27%
486
486
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power
Matimba Srl
Rome
IT
10,000.00
EUR
Equity
Enel Green Power
Metehara Solar Private
Limited Company
-
ET
5,600,000.00
ETB
Line-by-line
Enel Green Power
SpA
Enel Green Power
Solar Metehara
SpA
50.00%
50.00%
80.00%
80.00%
Enel Green Power
SpA
100.00%
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)
Enel Green Power
Mourão SA
Enel Green Power
Namibia (Pty) Ltd
Enel Green Power
North America
Development LLC
Enel Green Power
North America Inc.
Mexico City
MX
662,949,966.00
MXN
Line-by-line
100.00%
Enel Rinnovabile
SA de Cv
0.00%
Rio de Janeiro
BR
132,642,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
107,742,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Casablanca
MA
480,000,000.00
MAD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Rio de Janeiro
BR
248,138,287.11
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
206,050,114.05
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
Rio de Janeiro
BR
25,600,100.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Windhoek
NA
10,000.00
NAD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Wilmington
US
-
Andover
US
-
USD
USD
Line-by-line
Enel North
America Inc.
100.00%
100.00%
Line-by-line
Enel North
America Inc.
100.00%
100.00%
Enel Green Power Nova
Olinda 01 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 02 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 03 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 04 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
82.27%
82.27%
Attachments
487
487
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power Nova
Olinda 05 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 06 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 07 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 08 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Nova
Olinda 09 SA
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 01 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 02 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 03 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 04 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 05 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 06 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Group %
holding
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
488
488
Integrated Annual Report 2021
Group %
holding
82.27%
82.27%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Green Power
SpA
100.00%
100.00%
Enel Brasil SA
98.77%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Pau Ferro Eólica
SA
1.23%
82.27%
0.00%
Enel Brasil SA
98.86%
Enel Green Power
Desenvolvimento
Ltda
1.14%
Enel Américas SA
100.00%
Energía y Servicios
South America
SpA
0.00%
Enel Brasil SA
99.00%
Enel Green Power
Desenvolvimento
Ltda
1.00%
82.27%
82.27%
82.27%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
Egypt SAE
100.00%
100.00%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power Novo
Lapa 07 SA
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Green Power Novo
Lapa 08 SA
Enel Green Power O&M
Solar LLC
Enel Green Power
Panamá Srl
Enel Green Power
Paranapanema SA
Enel Green Power
Partecipazioni Speciali
Srl
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Panama City
PA
3,001.00
USD
Line-by-line
82.27%
ESSA2 SpA
99.97%
Enel Américas SA 0.03%
Niterói
BR
162,567,500.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power Pau
Ferro Eólica SA
Rio de Janeiro
BR
125,124,000.00
BRL
Line-by-line
Enel Green Power
Pedra do Gerônimo
Eólica SA
Rio de Janeiro
BR
184,319,527.57
BRL
Line-by-line
Enel Green Power Perú
SAC
San Miguel
PE
973,213,507.00
PEN
Line-by-line
Rio de Janeiro
BR
143,674,900.01
BRL
Line-by-line
Rome
IT
1,000,000.00
EUR
Line-by-line
Cairo
EG
15,000,000.00
EGP
Line-by-line
Enel Green Power
Primavera Eólica SA
Enel Green Power
Puglia Srl
Enel Green Power RA
SAE in liquidation
Enel Green Power
Rattlesnake Creek
Wind Project LLC
(formerly Rattlesnake
Creek Wind Project
LLC)
Enel Green Power
Roadrunner Solar
Project Holdings II LLC
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%
Attachments
489
489
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power
Roadrunner Solar
Project Holdings LLC
Enel Green Power
Roadrunner Solar
Project II LLC
Enel Green Power
Rockhaven Ranchland
Holdings LLC
Enel Green Power
Romania Srl
Enel Green Power
Roseland Solar LLC
Enel Green Power RSA
(Pty) Ltd
Enel Green Power RSA
2 (RF) (Pty) Ltd
Enel Green Power
Rus Limited Liability
Company
Andover
US
-
Dover
US
100.00
Andover
US
1.00
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Roadrunner
Solar Project
Holdings II LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Bucharest
RO
2,430,631,000.00
RON
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Andover
US
1.00
Johannesburg
ZA
1,000.00
Johannesburg
ZA
120.00
USD
ZAR
ZAR
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
EGP Matimba
NewCo 1 Srl
100.00%
100.00%
AFS
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Moscow
RU
60,500,000.00
RUB
Line-by-line
Enel Green Power
Partecipazioni
Speciali Srl
1.00%
Enel Green Power
SpA
99.00%
100.00%
Enel Green Power SpA
Rome
IT
272,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Green Power Salto
Apiacás SA (formerly
Enel Green Power
Damascena Eólica SA)
Enel Green Power
Sannio Srl
Enel Green Power São
Abraão Eólica SA
Enel Green Power
São Gonçalo 01 SA
(formerly Enel Green
Power Projetos 10)
Enel Green Power
São Gonçalo 02 SA
(formerly Enel Green
Power Projetos 11)
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)
Enel Green Power
São Gonçalo 10 SA
(formerly Enel Green
Power Projetos 15)
Rio de Janeiro
BR
274,420,832.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rome
IT
750,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Rio de Janeiro
BR
91,300,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Teresina
BR
105,245,553.82
BRL
Line-by-line
82.27%
Alba Energia Ltda 0.00%
Teresina
BR
129,213,750.53
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Alba Energia Ltda 0.00%
Teresina
BR
142,249,180.00
BRL
Line-by-line
Teresina
BR
77,008,993.34
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Alba Energia Ltda 0.00%
82.27%
82.27%
Teresina
BR
124,817,216.25
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
490
490
Integrated Annual Report 2021
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 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 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)
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Teresina
BR
82,202,330.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Teresina
BR
75,750,090.00
BRL
Line-by-line
Teresina
BR
210,001,000.00
BRL
Line-by-line
Enel Green Power São
Gonçalo 15
Teresina
BR
180,779,180.90
BRL
Line-by-line
Teresina
BR
175,728,754.90
BRL
Line-by-line
Teresina
BR
177,703,455.40
BRL
Line-by-line
Teresina
BR
174,189,501.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Alba Energia Ltda 0.00%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Teresina
BR
139,939,932.22
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Alba Energia Ltda 0.00%
Teresina
BR
138,733,692.21
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Alba Energia Ltda 0.00%
Teresina
BR
216,609,843.02
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Alba Energia Ltda 0.00%
Teresina
BR
124,870,989.57
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Alba Energia Ltda 0.00%
Teresina
BR
123,176,257.11
BRL
Line-by-line
82.27%
Enel Brasil SA
100.00%
Attachments
491
491
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)
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)
Enel Green Power São
Micael 05 SA
Enel Green Power
Services LLC
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Alba Energia Ltda 0.00%
Teresina
BR
180,887,848.28
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Niterói
BR
143,674,900.00
BRL
Line-by-line
Enel Green
Power Brasil
Participações Ltda
0.00%
Enel Brasil SA
99.00%
Enel Green Power
Desenvolvimento
Ltda
1.00%
Alba Energia Ltda 0.10%
82.27%
Teresina
BR
1,000.00
BRL
Line-by-line
82.27%
Enel Brasil SA
99.90%
Alba Energia Ltda 0.10%
Teresina
BR
1,000.00
BRL
Line-by-line
82.27%
Enel Brasil SA
99.90%
Alba Energia Ltda 0.10%
Teresina
BR
1,000.00
BRL
Line-by-line
82.27%
Enel Brasil SA
99.90%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
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%
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Wilmington
US
100.00
USD
Line-by-line
Enel Green Power Shu
SAE in liquidation
Cairo
EG
15,000,000.00
EGP
Line-by-line
Enel Green Power
Singapore Pte Ltd
Singapore
SG
6,100,000.00
SGD
Line-by-line
10,000.00
EUR
Line-by-line
50,000.00
EUR
Line-by-line
Enel Green Power Solar
Energy Srl
Rome
Enel Green Power Solar
Metehara SpA
Rome
Enel Green Power Solar
Ngonye SpA (formerly
Enel Green Power
Africa Srl)
Rome
IT
IT
IT
50,000.00
EUR
AFS
EGP Matimba
NewCo 2 Srl
100.00%
100.00%
Enel Green Power
South Africa (Pty) Ltd
Enel Green Power
South Africa 3 (Pty) Ltd
Johannesburg
ZA
1,000.00
Gauteng
ZA
1,000.00
ZAR
ZAR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
492
492
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power Swift
Wind LP
Calgary
CA
1,000.00
CAD
Line-by-line
Group %
holding
100.00%
82.27%
Enel Alberta Wind
Inc.
0.10%
Enel Green Power
Canada Inc.
99.90%
Enel Brasil SA
98.76%
Enel Green Power
Desenvolvimento
Ltda
1.24%
Enel Green Power
Tacaicó Eólica SA
Enel Green Power
Tefnut SAE in
liquidation
Enel Green Power
Turkey Enerjí
Yatirimlari
Anoním Şírketí
Enel Green Power
UB33 GmbH & Co. Kg
Enel Green Power
Ventos de Santa
Ângela 1 SA
Enel Green Power
Ventos de Santa
Ângela 10 SA (formerly
Enel Green Power
Projetos 21)
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
Rio de Janeiro
BR
86,034,360.00
BRL
Line-by-line
Cairo
EG
15,000,000.00
EGP
Line-by-line
Enel Green Power
Egypt SAE
100.00%
100.00%
Istanbul
TR
65,654,658.00
TRY
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Berlin
DE
75,000.00
EUR
Line-by-line
Enel Green Power
Germany GmbH
100.00%
100.00%
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
171,001,000.00
BRL
Line-by-line
Teresina
BR
185,001,000.00
BRL
Line-by-line
Teresina
BR
241,769,350.00
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
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Attachments
493
493
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
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)
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)
Enel Green Power
Ventos de Santa
Ângela ACL 13 SA
(formerly Enel Green
Power Projetos 17 SA)
Teresina
BR
126,001,000.00
BRL
Line-by-line
Teresina
BR
113,001,000.00
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
132,001,000.00
BRL
Line-by-line
Teresina
BR
106,001,000.00
BRL
Line-by-line
Teresina
BR
132,001,000.00
BRL
Line-by-line
Teresina
BR
185,001,000.00
BRL
Line-by-line
Teresina
BR
125,853,581.00
BRL
Line-by-line
Teresina
BR
115,001,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Esperança
Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Group %
holding
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
494
494
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
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
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)
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)
Teresina
BR
128,700,091.00
BRL
Line-by-line
Teresina
BR
128,279,231.00
BRL
Line-by-line
Rio de Janeiro
BR
110,200,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
147,000,000.00
BRL
Line-by-line
Rio de Janeiro
BR
202,100,000.00
BRL
Line-by-line
Rio de Janeiro
BR
183,700,000.00
BRL
Line-by-line
Rio de Janeiro
BR
183,700,000.00
BRL
Line-by-line
Rio de Janeiro
BR
202,100,000.00
BRL
Line-by-line
Rio de Janeiro
BR
202,100,000.00
BRL
Line-by-line
Rio de Janeiro
BR
110,200,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Group %
holding
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Attachments
495
495
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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
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
Rio de Janeiro
BR
202,100,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Teresina
BR
313,963,791.98
BRL
Line-by-line
Teresina
BR
300,285,891.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
270,507,771.00
BRL
Line-by-line
Enel Brasil SA
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%
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
496
496
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power
Ventos de São Roque
05 SA
Enel Green Power
Ventos de São Roque
06 SA
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
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
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
301,267,691.98
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
283,811,791.98
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
138,001,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Group %
holding
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
82.27%
Attachments
497
497
Group %
holding
82.27%
82.27%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power
Ventos de São Roque
26 SA
Enel Green Power
Ventos de São Roque
29 SA
Enel Green Power
Verwaltungs GmbH
Enel Green Power
Vietnam LLC (Công
ty TNHH Enel Green
Power Viêt Nam)
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
Teresina
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
Berlin
DE
25,000.00
EUR
Line-by-line
Enel Green Power
Germany GmbH
100.00%
100.00%
Ho Chi Minh
City
VN
231,933.00
USD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Rome
IT
1,200,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
51.00%
51.00%
Niterói
BR
565,756,528.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Lusaka
ZM
15,000.00
ZMW
Line-by-line
100.00%
Enel Green Power
RSA (Pty) Ltd
99.00%
Enel Green Power
Development Srl
1.00%
Rio de Janeiro
BR
129,639,980.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
6,986,993.00
BRL
Line-by-line
Rio de Janeiro
BR
1,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
0.10%
82.27%
82.27%
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
Rome
IT
1,100,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Insurance NV
Amsterdam
NL
60,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Investment
Holding BV
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%
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%
498
498
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Land HoldCo LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
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
-
Enel North America Inc. Andover
US
50.00
USD
USD
USD
Line-by-line
EGP Geronimo
Holding Company
Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel SpA
100.00%
100.00%
Enel Operations
Canada Ltd
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%
82.27%
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 Roadrunner Solar
Project Holdings II LLC
Enel Roadrunner Solar
Project Holdings LLC
Mexico City
MX
100.00
MXN
Line-by-line
Andover
US
-
USD
Line-by-line
Dover
US
100.00
USD
Line-by-line
Enel Green Power
Global Investment
BV
Hidroelectricidad
del Pacífico S de
RL de Cv
Enel Green Power
Roadrunner Solar
Project Holdings
II LLC
Enel Green Power
Roadrunner Solar
Project Holdings
LLC
99.00%
1.00%
100.00%
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 Finance LLC
Konakovo
RU
10,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Enel Rus Wind Azov
LLC
Moscow
RU
200,000,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00%
56.43%
Enel Rus Wind Kola LLC 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%
Enel Salt Wells LLC
Fallon
US
-
USD
Line-by-line
Al Khobar
SA
1,000,000.00
SAR
Line-by-line
Enel Saudi Arabia
Limited
Enel Servicii Comune
SA
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%
Attachments
499
499
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Solar Srl
Panama City
PA
10,100.00
USD
Line-by-line
Enel Green Power
Panamá Srl
99.01%
ESSA2 SpA
0.99%
Group %
holding
82.27%
Enel Sole Srl
Rome
IT
4,600,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Soluções
Energéticas Ltda
Rio de Janeiro
BR
42,863,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
Enel Soluções
Energéticas Ltda
0.00%
Enel Stillwater LLC
Wilmington
US
-
Enel Surprise Valley LLC Wilmington
US
-
Enel Texkan Inc.
Wilmington
US
100.00
USD
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%
Line-by-line
Chi Power Inc.
100.00%
100.00%
Enel Trade Energy Srl
Bucharest
RO
2,437,050.00
RON
Line-by-line
Enel Romania SA
100.00%
100.00%
Enel Trade Serbia doo
Belgrade
RS
300,000.00
EUR
Line-by-line
Enel Global
Trading SpA
100.00%
100.00%
Enel Américas SA 55.00%
Enel Trading Argentina
Srl
Buenos Aires
AR
14,011,100.00
ARS
Line-by-line
82.26%
Enel Argentina SA 45.00%
Enel Trading Brasil SA
Rio de Janeiro
BR
5,280,312.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Trading North
America LLC
Wilmington
US
10,000,000.00
USD
Line-by-line
Enel North
America Inc.
100.00%
100.00%
Enel Transmisión Chile
SA
Santiago de
Chile
CL
52,569,315,875.00
CLP
Line-by-line
Enel Chile SA
99.09%
64.34%
Enel Uruguay SA
Montevideo
UY
20,000.00
UYU
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Vayu (Project 2)
Private Limited
Gurugram
Enel Wind Project
(Amberi) Private Limited
New Delhi
IN
IN
45,000,000.00
INR
Line-by-line
5,000,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
100.00%
100.00%
100.00%
100.00%
Enel X AMPCI Ebus
Chile SpA
Santiago de
Chile
CL
18,000,000.00
USD
Equity
Enel X Chile SpA
20.00%
12.99%
Enel X AMPCI L1
Holdings SpA
Santiago de
Chile
CL
18,000,000.00
USD
Enel X AMPCI L1 SpA
Santiago de
Chile
CL
18,000,000.00
USD
Equity
Equity
Enel X AMPCI Ebus
Chile SpA
100.00%
12.99%
Enel X AMPCI L1
Holdings SpA
100.00%
12.99%
Enel X Arecibo LLC
Boston
US
-
USD
Line-by-line
Enel X Argentina SAU
Buenos Aires
AR
127,800,000.00
ARS
Line-by-line
Enel X Pr Holdings
LLC
100.00%
100.00%
Enel X
International Srl
100.00%
100.00%
500
500
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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
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
Enel X Finance
Partner LLC
Enel X
International Srl
100.00%
100.00%
100.00%
100.00%
Energy Response
Holdings (Pty) Ltd
100.00%
100.00%
Enel X Canada
Holding Inc.
0.01%
Oakville
CA
10,000.00
CAD
Line-by-line
100.00%
Sorocaba
BR
5,538,403.00
BRL
Line-by-line
100.00%
EnerNOC UK II
Limited
100.00%
Enel X Canada Ltd 99.99%
Enel X Ireland
Limited
0.00%
Enel X Brasil SA
Niterói
BR
324,725,892.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel X Canada Holding
Inc.
Oakville
CA
1,000.00
Enel X Canada Ltd
Mississauga
CA
1,000.00
CAD
CAD
Line-by-line
Enel X Canada Ltd 100.00%
100.00%
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%
Enel X College Ave.
Project LLC
Boston
US
-
USD
Line-by-line
Enel X MA
Holdings LLC
100.00%
100.00%
Enel X Colombia SAS
Bogotá
CO
5,186,737,000.00
COP
Line-by-line
Codensa SA ESP
100.00%
39.74%
Enel X Energy
(Shanghai) Co. Ltd
Shanghai
CN
3,500,000.00
USD
Line-by-line
Enel X
International Srl
100.00%
100.00%
Enel X Federal LLC
Boston
US
5,000.00
Enel X Finance Partner
LLC
Boston
US
100.00
USD
USD
Line-by-line
Line-by-line
Enel X North
America Inc.
Enel X North
America Inc.
100.00%
100.00%
100.00%
100.00%
Enel X Financial
Services Srl
Rome
IT
1,000,000.00
EUR
AFS
Enel X Srl
100.00%
100.00%
Enel X France SAS
Paris
FR
2,901,000.00
EUR
Line-by-line
Enel X Germany GmbH Berlin
DE
25,000.00
EUR
Line-by-line
Enel X Hayden Rowe St.
Project LLC
Boston
US
100.00
USD
Line-by-line
Enel X
International Srl
Enel X
International Srl
Enel X MA
Holdings LLC
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel X International Srl
Rome
Enel X Ireland Limited
Dublin
Enel X Italia Srl
Rome
Enel X Japan KK
Tokyo
IT
IE
IT
JP
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%
655,000,000.00
JPY
Line-by-line
Enel X
International Srl
100.00%
100.00%
Enel X KOMIPO Solar
Limited
Seoul
KR
8,472,600,000.00
KRW
Line-by-line
Enel X Korea
Limited
80.00%
80.00%
Attachments
501
501
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Korea Limited
Seoul
KR
11,800,000,000.00
KRW
Line-by-line
Enel X
International Srl
100.00%
100.00%
Enel X Las Piedras LLC Boston
US
-
Enel X MA Holdings LLC Boston
US
100.00
Enel X MA PV Portfolio
1 LLC
Enel X MA PV Portfolio
2 LLC
Enel X MA PV Portfolio
3 LLC
Boston
US
-
Boston
US
-
Boston
US
-
USD
USD
USD
USD
USD
Line-by-line
Enel X Pr Holdings
LLC
100.00%
100.00%
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
Line-by-line
Enel X MA
Holdings LLC
100.00%
100.00%
Line-by-line
Enel X North
America Inc.
100.00%
100.00%
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
Enel X Mobility HPC Srl
Rome
IT
1,000,000.00
EUR
Equity
Enel X Srl
50.00%
50.00%
Enel X Mobility
Romania Srl
Bucharest
RO
6,937,800.00
RON
Line-by-line
100.00%
Enel X Srl
0.14%
Enel X
International Srl
99.86%
Enel X Mobility Srl
Rome
IT
100,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel X Morrissey Blvd.
Project LLC
Enel X New Zealand
Limited
Enel X North America
Inc.
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
Enel X Norway AS
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.
Enel X
International Srl
100.00%
100.00%
100.00%
100.00%
Enel X Perú SAC
San Miguel
PE
12,005,000.00
PEN
Line-by-line
Enel Perú SAC
100.00%
82.27%
Enel X Polska Sp. zo.o. Warsaw
PL
12,275,150.00
PLN
Enel X Pr Holdings LLC Boston
US
-
Enel X Project MP
Holdings LLC
Enel X Project MP
Sponsor LLC
Boston
US
-
Boston
US
-
USD
USD
USD
Line-by-line
Enel X Ireland
Limited
100.00%
100.00%
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
Line-by-line
Enel X Project MP
Sponsor LLC
100.00%
100.00%
Line-by-line
Enel X North
America Inc.
100.00%
100.00%
Enel X
International Srl
99.97%
Enel X Romania Srl
Bucharest
RO
7,044,450.00
RON
Line-by-line
100.00%
Enel X Rus LLC
Moscow
RU
8,000,000.00
RUB
Line-by-line
Enel X Srl
0.03%
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
Mumbai City
IN
45,000.00
INR
Line-by-line
100.00%
Enel X
International Srl
100.00%
Enel X North
America Inc.
0.00%
502
502
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Singapore Pte
Ltd
Singapore
SG
1,212,000.00
SGD
Line-by-line
Enel X
International Srl
100.00%
100.00%
Enel X Sweden AB
Stockholm
SE
50,000.00
SEK
Line-by-line
Enel X
International Srl
100.00%
100.00%
Enel X Taiwan Co. Ltd
Taipei City
TW
70,000,000.00
TWD
Line-by-line
Enel X UK Limited
London
GB
32,626.00
GBP
Line-by-line
Enel X Wood St. Project
LLC
Boston
US
-
USD
Line-by-line
Enelco SA
Maroussi
GR
60,108.80
EUR
Line-by-line
Enel X Ireland
Limited
Enel X
International Srl
Enel X Finance
Partner LLC
Enel Investment
Holding BV
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
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%
Rio de Janeiro
BR
5,689,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
Energía y Servicios
South America
SpA
0.00%
82.27%
Enelpower SpA
Milan
IT
2,000,000.00
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Energética Monzón
SAC
Energía Base Natural
SLU
Energía Ceuta XXI
Comercializadora de
Referencia SA
Energía Eólica Ábrego
SLU
Energía Eólica Galerna
SLU
Energía Eólica Gregal
SLU
Energia Eolica Srl -
EN.EO. Srl
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
San Miguel
PE
6,463,000.00
PEN
Line-by-line
Valencia
ES
3,000.00
EUR
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
0.00%
82.27%
Enel Green Power
España SLU
Empresa de
Alumbrado
Eléctrico de Ceuta
SA
100.00%
70.11%
100.00%
67.59%
Valencia
ES
3,576.00
Madrid
ES
3,413.00
Madrid
ES
3,250.00
EUR
EUR
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Rome
IT
4,840,000.00
EUR
Line-by-line
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
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
100.00%
82.27%
60.80%
20.00%
60.80%
20.00%
Attachments
503
503
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Energía Limpia de
Puerto Libertad S de
RL de Cv
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
Energía Nueva de Iguu
S de RL de Cv
Mexico City
MX
51,879,307.00
MXN
Line-by-line
Energía Nueva Energía
Limpia México S de RL
de Cv
Energía XXI
Comercializadora de
Referencia SL
Energía y Naturaleza
SLU
Mexico City
MX
5,339,650.00
MXN
Line-by-line
99.99%
Enel Green Power
SpA
99.96%
Madrid
ES
2,000,000.00
EUR
Line-by-line
Endesa Energía SA 100.00%
70.11%
Valencia
ES
3,000.00
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Energía y Servicios
South America SpA
Santiago de
Chile
Energías Alternativas
del Sur SL
Las Palmas de
Gran Canaria
CL
12,120,575.70
USD
Line-by-line
Enel Américas SA
100.00%
82.27%
ES
546,919.10
EUR
Line-by-line
Energías de Aragón I SL Zaragoza
ES
3,200,000.00
EUR
Line-by-line
Energías de Graus SL
Barcelona
ES
1,298,160.00
EUR
Line-by-line
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
Tanger
MA
510,270,000.00
MAD
Equity
Energo Sonne Srl
Bucharest
RO
31,520.00
RON
Line-by-line
Energotel AS
Bratislava
SK
2,191,200.00
EUR
Equity
504
504
Integrated Annual Report 2021
Group %
holding
100.00%
Enel Green Power
México S de RL
de Cv
0.01%
Enel Rinnovabile
SA de Cv
99.99%
Enel Green Power
Chile SA
25.00%
16.23%
Enel Green Power
España SLU
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
0.01%
Enel Green Power
Guatemala SA
0.04%
99.91%
Enel Green Power
España SLU
54.95%
38.52%
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
Enel Green Power
España SLU
66.67%
46.74%
Enel Green Power
España SLU
77.00%
53.99%
Enel Green Power
España SLU
80.00%
56.09%
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
España SLU
Enel Green Power
México S de RL
de Cv
50.00%
35.06%
99.00%
100.00%
Energía Nueva de
Iguu S de RL de Cv
1.00%
Endesa
Generación SA
32.00%
22.44%
Enel Green Power
Romania Srl
100.00%
100.00%
Slovenské
elektrárne AS
20.00%
6.60%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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 Produzione
SpA
Enel X Australia
Holding (Pty) Ltd
100.00%
100.00%
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
EnerNOC Ireland
Limited
Dublin
IE
10,535.00
EUR
EUR
Line-by-line
Enel X North
America Inc.
100.00%
100.00%
Line-by-line
Enel X Ireland
Limited
100.00%
100.00%
EnerNOC UK II Limited
London
GB
21,000.00
GBP
Line-by-line
Enel X UK Limited
100.00%
100.00%
Entech (China)
Information Technology
Co. Ltd
Entech Utility Service
Bureau Inc.
Envatios Promoción
I SLU
Envatios Promoción
II SLU
Envatios Promoción
III SLU
Envatios Promoción
XX SLU
Shenzhen
CN
140,000.00
USD
Equity
Lutherville
US
1,500.00
USD
Line-by-line
EnerNOC UK II
Limited
Enel X North
America Inc.
50.00%
50.00%
100.00%
100.00%
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
EUR
EUR
EUR
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Eólica Valle del Ebro SA Zaragoza
ES
3,561,342.50
EUR
Line-by-line
Eólica Zopiloapan SA
de Cv
Mexico City
MX
1,877,201.54
MXN
Line-by-line
Eólicas de Agaete SL
Las Palmas de
Gran Canaria
Eólicas de Fuencaliente
SA
Las Palmas de
Gran Canaria
ES
240,400.00
EUR
Line-by-line
ES
216,360.00
EUR
Line-by-line
Eólicas de
Fuerteventura AIE
Puerto del
Rosario
ES
-
EUR
Buenos Aires
AR
480,930.00
ARS
Eólicas de la Patagonia
SA
Eólicas de Lanzarote SL
Eólicas de Tenerife AIE
Eólicas de Tirajana SL
Las Palmas de
Gran Canaria
Santa Cruz de
Tenerife
Las Palmas de
Gran Canaria
ES
1,758,000.00
EUR
ES
420,708.40
EUR
ES
3,000.00
EUR
Line-by-line
Equity
Equity
Equity
Equity
Epresa Energía SA
Cadiz
ES
2,500,000.00
EUR
Equity
E-Solar Srl
Rome
IT
2,500.00
EUR
Line-by-line
Enel Green Power
España SLU
Enel Green Power
México S de RL
de Cv
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
España SLU
50.50%
35.40%
56.98%
39.50%
96.48%
80.00%
56.09%
Enel Green Power
España SLU
55.00%
38.56%
Enel Green Power
España SLU
40.00%
28.04%
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
40.00%
28.04%
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
60.00%
42.07%
Endesa Red
SA (Sociedad
Unipersonal)
50.00%
35.06%
Enel Green Power
Italia Srl
100.00%
100.00%
Attachments
505
505
European Energy
Exchange AG
Expedition Solar
Project LLC
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
ESSA2 SpA
Santiago de
Chile
CL
701,166,335.30
USD
Line-by-line
Enel Américas SA
100.00%
82.27%
Essaouira Wind Farm
Casablanca
MA
300,000.00
MAD
Equity
Leipzig
DE
40,050,000.00
EUR
-
Nareva Enel Green
Power Morocco
SA
Enel Global
Trading SpA
70.00%
35.00%
2.38%
2.38%
Andover
US
1.00
Explorer Wind Project
LLC
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%
Explotaciones Eólicas
de Escucha SA
Explotaciones Eólicas
El Puerto SA
Explotaciones Eólicas
Santo Domingo de
Luna SA
Explotaciones Eólicas
Saso Plano SA
Explotaciones Eólicas
Sierra Costera SA
Explotaciones Eólicas
Sierra La Virgen SA
Zaragoza
ES
3,505,000.00
EUR
Line-by-line
Zaragoza
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
Zaragoza
ES
8,046,800.00
EUR
Line-by-line
Zaragoza
ES
4,200,000.00
EUR
Line-by-line
Fayette Solar I LLC
Andover
US
1.00
USD
Line-by-line
Enel Green Power
España SLU
70.00%
49.08%
Enel Green Power
España SLU
73.60%
51.60%
Enel Green Power
España SLU
51.00%
35.76%
Enel Green Power
España SLU
65.00%
45.57%
Enel Green Power
España SLU
90.00%
63.10%
Enel Green Power
España SLU
90.00%
63.10%
Brick Road Solar
Holdings LLC
100.00%
100.00%
Rio de Janeiro
BR
2,362,045.90
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Fazenda Aroeira
Empreendimento de
Energia Ltda
Fence Post Solar
Project LLC
Andover
US
-
Fenner Wind Holdings
LLC
Dover
US
100.00
Finsec Lab Ltd
Tel Aviv
Flagpay Srl
Milan
IL
IT
100.00
USD
USD
ILS
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Enel X Srl
30.00%
30.00%
10,000.00
EUR
AFS
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
-
Florence Hills LLC
Minneapolis
US
-
Flowing Spring Farms
LLC
Andover
US
1.00
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
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Fontibon ZE SAS
Bogotá
CO
392,420,000.00
COP
Line-by-line
Bogotá ZE SAS
100.00%
39.74%
Fótons de Santo
Anchieta Energias
Renováveis SA
Rio de Janeiro
BR
577,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
506
506
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Fotovoltaica Yunclillos
SLU
Fourmile Wind Project
LLC
Madrid
ES
3,000.00
Andover
US
1.00
Franklintown Farm LLC Andover
US
1.00
Freedom Energy
Storage LLC
Andover
US
-
Front Marítim del
Besòs SL
Frontiersman Solar
Project LLC
Barcelona
ES
9,000.00
Andover
US
1.00
EUR
USD
USD
USD
EUR
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Equity
Endesa
Generación SA
61.37%
43.03%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
FRV Corchitos I SLU
Madrid
ES
75,800.00
EUR
Line-by-line
FRV Corchitos II SOLAR
SLU
FRV Gibalbín - Jerez
SLU
Madrid
ES
22,000.00
EUR
Line-by-line
Madrid
ES
23,000.00
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
España SLU
100.00%
70.11%
FRV Tarifa SLU
Madrid
ES
3,000.00
FRV Villalobillos SLU
Madrid
ES
3,000.00
FRV Zamora Solar 1
SLU
FRV Zamora Solar 3
SLU
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Fundamental
Recognized Systems
SLU
Rivas-
Vaciamadrid
ES
3,000.00
Furatena Solar 1 SLU
Seville
ES
3,000.00
Galaxy Wind Project
LLC
Andover
US
1.00
Ganado Solar LLC
Andover
US
-
Ganado Storage LLC
Andover
US
1.00
Garob Wind Farm (RF)
(Pty) Ltd
Johannesburg
ZA
100.00
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
ZAR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
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%
AFS
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
55.00%
Gas y Electricidad
Generación SAU
Palma de
Mallorca
ES
213,775,700.00
EUR
Line-by-line
Gauley Hydro LLC
Wilmington
US
-
Gauley River
Management LLC
Willison
US
1.00
USD
USD
Endesa
Generación SA
GRPP Holdings
LLC
100.00%
70.11%
100.00%
50.00%
Equity
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
Guatemala SA
1.00%
Generadora de
Occidente Ltda
Guatemala City GT
16,261,697.33
GTQ
Line-by-line
82.27%
ESSA2 SpA
99.00%
Attachments
507
507
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Generadora Eólica Alto
Pacora Srl
Panama City
PA
10,100.00
USD
Line-by-line
Group %
holding
82.27%
Enel Green Power
Panamá Srl
99.01%
ESSA2 SpA
0.99%
Enel Green Power
Guatemala SA
0.00%
Generadora
Montecristo SA
Generadora Solar
Austral SA
Generadora Solar de
Occidente SA
Generadora Solar El
Puerto SA
Generadora Solar
Tolé Srl
Guatemala City GT
3,820,000.00
GTQ
Line-by-line
82.27%
Chiriquí
PA
10,000.00
USD
Line-by-line
Panama City
PA
10,000.00
USD
Line-by-line
Chiriquí
PA
10,000.00
USD
Line-by-line
ESSA2 SpA
100.00%
Enel Green Power
Panamá Srl
100.00%
82.27%
Enel Green Power
Panamá Srl
100.00%
82.27%
Enel Green Power
Panamá Srl
100.00%
82.27%
Enel Green Power
Panamá Srl
99.01%
Panama City
PA
10,100.00
USD
Line-by-line
82.27%
ESSA2 SpA
0.99%
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
Gibson Bay Wind Farm
(RF) (Pty) Ltd
Girgarre Solar Farm
(Pty) Ltd
Girgarre Solar Farm
Trust
Global Commodities
Holdings Limited
Sydney
AU
-
Sydney
AU
10.00
AUD
AUD
London
GB
4,042,375.00
GBP
Globyte SA
San José
CR
900,000.00
CRC
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Girgarre Holdings
(Pty) Ltd
60.00%
60.00%
100.00%
100.00%
Line-by-line
Line-by-line
Enel Green Power
Girgarre Trust
100.00%
100.00%
-
-
Enel Global
Trading SpA
4.68%
4.68%
Enel Green Power
Costa Rica SA
10.00%
8.23%
Gloucester Solar I LLC
Andover
US
1.00
USD
Line-by-line
Gnl Chile SA
Santiago de
Chile
CL
3,026,160.00
USD
Goodwell Wind Project
LLC
Wilmington
US
-
USD
Gorona del Viento El
Hierro SA
Santa Cruz de
Tenerife
ES
30,936,736.00
EUR
Equity
Equity
Equity
Grand Prairie Solar
Project LLC
Andover
US
-
USD
Line-by-line
Brick Road Solar
Holdings LLC
Enel Generación
Chile SA
Origin Goodwell
Holdings LLC
Unión Eléctrica
de Canarias
Generación SAU
100.00%
100.00%
33.33%
20.25%
100.00%
20.00%
23.21%
16.27%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Brasil SA
0.00%
Gridspertise Latam SA
São Paulo
BR
2,010,000.00
BRL
Line-by-line
100.00%
Gridspertise Srl
Rome
IT
7,500,000.00
EUR
Line-by-line
GRPP Holdings LLC
Andover
US
2.00
USD
Equity
Gridspertise Srl
100.00%
Enel Global
Infrastructure and
Networks Srl
EGPNA REP
Holdings LLC
100.00%
100.00%
50.00%
50.00%
508
508
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Guadarranque Solar
4 SLU
Seville
ES
3,006.00
EUR
Line-by-line
Guayepo Solar SAS
Bogotá
CO
1,000,000.00
COP
Line-by-line
Andover
US
1.00
USD
Line-by-line
Gusty Hill Wind Project
LLC
GV Energie Rigenerabili
ITAL-RO Srl
Bucharest
RO
1,145,400.00
RON
Line-by-line
100.00%
Endesa
Generación II SA
100.00%
70.11%
Enel Green Power
Colombia SAS ESP
100.00%
82.27%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Romania Srl
100.00%
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
Brick Road Solar
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
Aurora Distributed
Solar LLC
100.00%
74.13%
Hadley Ridge LLC
Minneapolis
US
-
Hamilton County Solar
Project LLC
Andover
US
1.00
Hansborough Valley
Solar Project LLC
Harmony Plains Solar
I LLC
Harvest Ridge Solar
Project LLC
Harvest Ridge Wind
Project LLC
Andover
US
-
Andover
US
1.00
Andover
US
-
Andover
US
1.00
Hastings Solar LLC
Wilmington
US
-
USD
USD
USD
USD
USD
USD
USD
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
Hidroeléctrica de
Ourol SL
Hidroelectricidad del
Pacífico S de RL de Cv
Barcelona
ES
126,210.00
EUR
Line-by-line
Lugo
ES
1,608,200.00
EUR
Equity
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 SLU
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
79.55%
Enel Argentina SA 54.76%
HIF H2 SpA
Santiago de
Chile
CL
6,303,000.00
USD
Equity
Enel Green Power
Chile SA
50.00%
32.46%
High Chaparral Solar
Project LLC
Andover
US
-
High Lonesome
Storage LLC
Andover
US
1.00
High Lonesome Wind
Holdings LLC
Wilmington
US
100.00
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%
Attachments
509
509
Company name
Headquarters
Country Share capital
Currency
Segment
High Lonesome Wind
Power LLC
Boston
US
100.00
High Noon Solar
Project LLC
High Street
Corporation (Pty) Ltd
Hilltopper Wind
Holdings LLC
Andover
US
-
Melbourne
AU
2.00
Wilmington
US
1,000.00
Hispano Generación de
Energía Solar SL
Jerez de los
Caballeros
ES
3,500.00
Honey Stone Solar
Project LLC
Andover
US
-
Honeybee Solar Project
LLC
Andover
US
-
Hope Creek LLC
Crestview
US
-
Hope Ridge Wind
Project LLC
Andover
US
1.00
Horse Run Solar I LLC
Andover
US
1.00
USD
USD
AUD
USD
EUR
USD
USD
USD
USD
USD
USD
Horse Wrangler Solar
Project LLC
Hubject eRoaming
Technology (Shanghai)
Co. Ltd
Andover
US
1.00
Shanghai
CN
12,668,015.70
CNY
Hubject GmbH
Berlin
DE
65,943.00
EUR
Hubject Inc.
Santa Monica
US
100,000.00
USD
Hydro Energies
Corporation
Willison
US
5,000.00
Idalia Park Solar Project
LLC
Andover
US
-
USD
USD
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
High Lonesome
Wind Holdings
LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Energy Response
Holdings (Pty) Ltd
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
51.00%
35.76%
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%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
-
-
-
Hubject GmbH
100.00%
12.50%
Enel X
International Srl
12.50%
12.50%
Hubject GmbH
100.00%
12.50%
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
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%
20.60%
Idrosicilia SpA
Milan
IT
22,520,000.00
EUR
Equity
Enel SpA
1.00%
1.00%
Ifx Networks Argentina
Srl
Buenos Aires
AR
2,260,551.00
ARS
Equity
20.60%
Ifx/eni - Spc V Inc. 99.85%
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
20.60%
Ifx/eni - Spc III Inc. 41.67%
Ifx Networks LLC
Wilmington
US
80,848,653.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
510
510
Integrated Annual Report 2021
Infraestructuras Puerto
Santa María 220 SL
Infraestructuras San
Serván 220 SL
Inkolan Información
y Coordinación de
obras AIE
Company name
Headquarters
Country Share capital
Currency
Segment
Ifx Networks Ltd
Tortola
VG
50,001.00
Ifx Networks Panama
SA
Panama City
PA
21,000.00
Ifx/eni - Spc III Inc.
Tortola
VG
100.00
Ifx/eni - Spc IV Inc.
Tortola
VG
100.00
Ifx/eni - Spc Panama
Inc.
Tortola
VG
100.00
Ifx/eni - Spc V Inc.
Tortola
VG
100.00
USD
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Equity
Ifx Networks LLC
100.00%
20.60%
Equity
Ifx/eni - Spc
Panama Inc.
100.00%
20.60%
Equity
Ifx Networks Ltd
100.00%
20.60%
Equity
Ifx Networks Ltd
100.00%
20.60%
Equity
Ifx Networks Ltd
100.00%
20.60%
Equity
Ifx Networks Ltd
100.00%
20.60%
Puerto Santa María
Energía I SLU
50.00%
Madrid
ES
3,000.00
EUR
Line-by-line
70.11%
Puerto Santa María
Energía II SLU
50.00%
Castiblanco Solar
SL
10.20%
Madrid
ES
12,000.00
EUR
Equity
Navalvillar Solar SL 10.30%
21.59%
Bilbao
ES
84,141.68
EUR
International
Multimedia University
Srl in bankruptcy
-
IT
24,000.00
EUR
Valdecaballero
Solar SL
10.30%
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
14.29%
10.02%
Enel Italia SpA
13.04%
13.04%
-
-
Inversora Codensa SAS Bogotá
CO
6,500,000.00
COP
Line-by-line
Codensa SA ESP
100.00%
39.74%
Inversora Dock Sud SA Buenos Aires
AR
828,941,660.00
ARS
Line-by-line
Enel Américas SA 57.14%
47.01%
Isamu Ikeda Energia SA Niterói
BR
45,474,475.77
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Italgest Energy (Pty) Ltd Johannesburg
ZA
1,000.00
Jack River LLC
Minneapolis
US
-
ZAR
USD
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Jade Energia Ltda
Rio de Janeiro
BR
4,107,097.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
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
Panamá Srl
100.00%
82.27%
Chi Minnesota
Wind LLC
Enel X
International Srl
51.00%
51.00%
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%
Attachments
511
511
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
36,600,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited
100.00%
100.00%
Juna Renewable Energy
Private Limited
Gurugram
Junia Insurance Srl
Mosciano
Sant’Angelo
(Teramo)
IN
IT
100.00
Keeneys Creek Solar
I LLC
Andover
US
1.00
Kelley’s Falls LLC
Wilmington
US
-
EUR
USD
USD
Line-by-line
Enel X Srl
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Ken Renewables India
Private Limited
Gurugram
Khaba Renewable
Energy Private Limited
Gurugram
Khidrat Renewable
Energy Private Limited
Gurugram
IN
IN
IN
100,000.00
INR
Line-by-line
10,100,000.00
INR
Line-by-line
38,100,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
Enel Green Power
India Private
Limited
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
King Branch Solar I LLC Andover
US
1.00
Kings River Hydro
Company Inc.
Wilmington
US
100.00
Kingston Energy
Storage LLC
Wilmington
US
-
USD
USD
USD
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Kino Contractor SA
de Cv
Mexico City
MX
100.00
MXN
Line-by-line
Kino Facilities Manager
SA de Cv
Mexico City
MX
100.00
MXN
Line-by-line
Kongul Enerjí
Sanayí Ve Tícaret
Anoním Şírketí
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 Seoul
KR
122,132,520,000.00
KRW
-
Kromschroeder SA
Barcelona
ES
627,126.00
EUR
Equity
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
Enel Global
Trading SpA
Endesa Medios
y Sistemas
SL (Sociedad
Unipersonal)
100.00%
100.00%
99.00%
1.00%
99.00%
1.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
0.25%
0.25%
29.26%
20.51%
Lake Emily Solar LLC
Wilmington
US
-
Lake Pulaski Solar LLC Wilmington
US
-
Land Run Wind Project
LLC
Dover
US
100.00
Lantern Trail Solar
Project LLC
Andover
US
1.00
USD
USD
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Sundance Wind
Project LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
512
512
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Latamsolar Fotovoltaica
Fundación SAS
Bogotá
CO
8,000,000.00
COP
Line-by-line
Enel Green Power
Colombia SAS ESP
100.00%
82.27%
Lathrop Solar I LLC
Andover
US
1.00
Lava Solar Project LLC
Andover
US
1.00
Lawrence Creek Solar
LLC
Minneapolis
US
-
Lebanon Solar I LLC
Andover
US
1.00
Lemonade Solar
Project LLC
Andover
US
-
Liberty Energy Storage
LLC
Andover
US
-
USD
USD
USD
USD
USD
USD
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Libyan Italian Joint
Company - Azienda
Libico-Italiana (A.L.I)
Tripoli
LY
1,350,000.00
EUR
-
Enelpower SpA
0.33%
0.33%
Lily Solar Holdings LLC Andover
US
1.00
Lily Solar LLC
Andover
US
-
Lindahl Wind Holdings
LLC
Wilmington
US
-
Lindahl Wind Project
LLC
Wilmington
US
-
Little Elk Wind Holdings
LLC
Wilmington
US
-
Little Elk Wind Project
LLC
Little Salt Solar Project
LLC
Littleville Power
Company Inc.
Wilmington
US
-
Andover
US
-
Boston
US
100.00
Litus Energy Storage
LLC
Andover
US
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Line-by-line
Line-by-line
Enel Green Power
Lily Solar Holdings
LLC
Enel Kansas
Development
Holdings LLC
EGPNA Preferred
Wind Holdings
LLC
100.00%
100.00%
100.00%
100.00%
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%
AFS
Line-by-line
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%
Livister Latam SLU 99.99%
Livister Guatemala SA
Guatemala City GT
742,000.00
GTQ
Equity
20.60%
Ufinet Guatema
SA
0.01%
Livister Latam SLU
Madrid
ES
2,442,066.00
EUR
Equity
Ufinet Latam SLU
100.00%
20.60%
Llano Sánchez Solar
Power One Srl
Panama City
PA
10,020.00
USD
Line-by-line
82.27%
Enel Green Power
Panamá Srl
99.80%
Lone Pine Wind Inc.
Alberta
CA
-
CAD
-
ESSA2 SpA
0.20%
Enel Green Power
Canada Inc.
10.00%
10.00%
Attachments
513
513
Company name
Headquarters
Country Share capital
Currency
Segment
Lone Pine Wind Project
LP
Alberta
CA
-
Lower Valley LLC
Wilmington
US
-
CAD
USD
Consolidation
method
Held by
% holding
Group %
holding
Equity
Enel Green Power
Canada Inc.
10.00%
10.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Lucas Sostenible SL
Madrid
ES
1,099,775.00
EUR
Equity
Enel Green Power
España SLU
35.29%
24.74%
Luminary Highlands
Solar Project LLC
Luz de Angra Energia
SA
Luz de Macapá Energia
SA
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rio de Janeiro
BR
4,062,085.00
BRL
Line-by-line
Enel X Brasil SA
51.00%
41.96%
Rio de Janeiro
BR
1,000.00
BRL
Equity
Enel X Brasil SA
51.00%
41.96%
Maicor Wind Srl
Rome
Malaspina Energy Scarl
in liquidation
Bergamo
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
Enel X Italia Srl
100.00%
100.00%
Maple Canada
Solutions Holdings Ltd
Maple Energy Solutions
LP
-
-
CA
-
CA
-
Marengo Solar LLC
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
Marudhar Wind Energy
Private Limited
Gurugram
IT
IN
6,100,000.00
EUR
Line-by-line
100,000.00
INR
Line-by-line
Más Energía S de
RL de Cv
Mexico City
MX
61,872,926.00
MXN
Line-by-line
Enel Green Power
Italia Srl
Enel Green Power
India Private
Limited
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de
RL de Cv
100.00%
100.00%
100.00%
100.00%
99.99%
0.01%
100.00%
Mason Mountain Wind
Project LLC
Wilmington
US
-
Matrigenix (Pty) Ltd
Johannesburg
ZA
1,000.00
USD
ZAR
Line-by-line
Padoma Wind
Power LLC
100.00%
100.00%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
Maty Energia Srl
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
MC Solar I LLC
Andover
US
-
Wilmington
US
1.00
McBride Wind Project
LLC
Medidas Ambientales
SL
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Burgos
ES
60,100.00
EUR
Equity
Tecnatom SA
50.00%
15.78%
Merit Wind Project LLC 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%
514
514
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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
Nareva Enel Green
Power Morocco
SA
70.00%
35.00%
Energía Base
Natural SLU
Energía Eólica
Ábrego SLU
4.79%
7.98%
Minglanilla Renovables
400 kV AIE
Valencia
ES
-
EUR
Proportional
Energía Eólica
Galerna SLU
9.31%
25.35%
Energía Eólica
Gregal SLU
Energía y
Naturaleza SLU
9.31%
4.79%
Enel Green Power
España SLU
5.39%
3.78%
Enel Green Power
España SLU
15.00%
10.52%
Enel Green Power
España SLU
36.50%
25.59%
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
Tortola
VG
100.00
Mira Energy (Pty) Ltd
Johannesburg
ZA
100.00
USD
ZAR
Equity
Ifx Networks Ltd
100.00%
20.60%
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.
Miranda Plataforma
Logística SA
Moebius Tecnologia
em Informática SA
Monte Reina
Renovables SL
Rio de Janeiro
BR
150,000.00
BRL
Madrid
ES
4,000.00
Montrose Solar LLC
Wilmington
US
-
Moonbeam Solar
Project LLC
Morgan Branch Solar
I LLC
Andover
US
1.00
Andover
US
1.00
Mountrail Wind Project
LLC
Andover
US
1.00
MPG Solar I LLC
Andover
US
1.00
Mucho Viento Wind
Project LLC
Muskegon County
Solar Project LLC
Andover
US
1.00
Andover
US
1.00
Muskegon Green Wind
Project LLC
Andover
US
1.00
Mustang Run Wind
Project LLC
Andover
US
1.00
EUR
USD
USD
USD
USD
USD
USD
USD
USD
USD
Equity
Equity
Ufinet Brasil
Telecomunicação
Ltda
FRV Zamora Solar
1 SLU
70.00%
35.00%
20.58%
14.43%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings 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%
Attachments
515
515
Negocios y Telefonía
Nedetel SA
Net Botanic Internet
Inteligente SA
Nevkan Renewables
LLC
New York Distributed
Storage Projects LLC
Newbury Hydro
Company LLC
Ngonye Power
Company Limited
Nojoli Wind Farm (RF)
(Pty) Ltd
North English Wind
Project LLC
Company name
Headquarters
Country Share capital
Currency
Segment
Nabb Solar I LLC
Andover
US
1.00
Napolean Wind Project
LLC
Andover
US
1.00
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Nareva Enel Green
Power Morocco SA
Casablanca
MA
98,750,000.00
MAD
Equity
Navalvillar Solar SL
Madrid
ES
3,000.00
EUR
Line-by-line
Enel Green Power
Morocco SARLAU
50.00%
50.00%
Enel Green Power
España SLU
100.00%
70.11%
Guayaquil
EC
4,773,525.00
USD
-
Livister Latam SLU 70.00%
14.42%
Rio de Janeiro
BR
450,000.00
BRL
Equity
Ufinet Brasil
Telecomunicação
Ltda
70.00%
35.00%
Wilmington
US
-
Boston
US
-
Andover
US
-
USD
USD
USD
Lusaka
ZM
10.00
ZMW
Line-by-line
Enel Nevkan Inc.
100.00%
100.00%
Line-by-line
Enel X North
America Inc.
100.00%
100.00%
AFS
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
Solar Ngonye
SpA (formerly
Enel Green Power
Africa Srl)
Enel Green Power
RSA (Pty) Ltd
80.00%
80.00%
60.00%
60.00%
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Andover
US
1.00
North Rock Wind LLC
Andover
US
1.00
Northland Wind Project
LLC
Andover
US
1.00
Northstar Wind Project
LLC
Andover
US
-
Northumberland Solar
Project I LLC
Andover
US
-
Northwest Hydro LLC Wilmington
US
-
Notch Butte Hydro
Company Inc.
Wilmington
US
100.00
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
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi West LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Nuclenor SA
Burgos
ES
102,000,000.00
EUR
Equity
Nuove Energie Srl
Porto
Empedocle
IT
5,204,028.73
EUR
Line-by-line
Endesa
Generación SA
Enel Global
Trading SpA
50.00%
35.06%
100.00%
100.00%
Nxuba Wind Farm (RF)
(Pty) Ltd
Nyc Storage (353
Chester) Spe LLC
Johannesburg
ZA
1,000.00
Wilmington
US
1.00
ZAR
USD
AFS
Enel Green Power
RSA 2 (RF) (Pty) Ltd
51.00%
51.00%
Line-by-line
Enel X North
America Inc.
100.00%
100.00%
Ochrana A Bezpecnost
Se SRO
Kalná Nad
Hronom
SK
33,193.92
EUR
Equity
Olathe Solar I LLC
Andover
US
1.00
USD
Line-by-line
Slovenské
elektrárne AS
100.00%
33.00%
Brick Road Solar
Holdings LLC
100.00%
100.00%
516
516
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Olivum PV Farm 01 SLU Madrid
ES
3,000.00
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
OMIP - Operador
do Mercado Ibérico
(Portugal) SGPS SA
Open Range Wind
Project LLC
Operador del Mercado
Ibérico de Energía -
Polo Español SA
Lisbon
PT
2,610,000.00
EUR
-
Endesa SA
5.00%
3.51%
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%
Oravita Power Park Srl
Bucharest
RO
2,000.00
RON
Line-by-line
Enel Green Power
Romania Srl
100.00%
100.00%
Istanbul
TR
11,250,000.00
TRY
Line-by-line
Orchid Acres Solar
Project LLC
Origin Goodwell
Holdings LLC
Origin Wind Energy
LLC
Andover
US
-
Wilmington
US
-
Wilmington
US
-
Osage Wind Holdings
LLC
Wilmington
US
100.00
Osage Wind LLC
Wilmington
US
-
Wilmington
US
100.00
Ottauquechee Hydro
Company Inc.
Ovacik Eolíko
Enerjí Elektrík
Üretím Ve Tícaret
Anoním Şírketí
Oxagesa AIE
Alcañiz
ES
6,010.00
Oyster Bay Wind Farm
(RF) (Pty) Ltd
Johannesburg
ZA
1,000.00
Padoma Wind Power
LLC
Palo Alto Farms Wind
Project LLC
Pampinus PV Farm
01 SLU
Paradise Creek Wind
Project LLC
Elida
US
-
Dallas
US
-
Madrid
ES
3,000.00
Andover
US
1.00
Paravento SL
Lugo
ES
3,006.00
EUR
ZAR
USD
USD
EUR
USD
EUR
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Equity
EGPNA Wind
Holdings 1 LLC
Origin Goodwell
Holdings LLC
100.00%
20.00%
100.00%
20.00%
Line-by-line
Enel Kansas LLC
50.00%
50.00%
Line-by-line
Osage Wind
Holdings LLC
100.00%
50.00%
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
España SLU
100.00%
100.00%
33.33%
23.37%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
55.00%
Equity
AFS
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
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
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power
España SLU
30.00%
21.03%
Enel Green Power
España SLU
30.00%
21.03%
Enel Green Power
Italia Srl
100.00%
100.00%
Attachments
517
517
La Coruña
ES
3,606,072.60
EUR
Line-by-line
52.58%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
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
Parque Eólico de
Belmonte SA
Parque Eólico de San
Andrés SA
Madrid
ES
120,400.00
EUR
Line-by-line
La Coruña
ES
552,920.00
EUR
Line-by-line
Parque Eólico Finca de
Mogán SA
Santa Cruz de
Tenerife
ES
3,810,340.00
EUR
Line-by-line
Parque Eólico Montes
de Las Navas SA
Parque Eólico Muniesa
SL
Parque Eólico Palmas
dos Ventos Ltda
Parque Eólico Pampa
SA
Madrid
ES
6,540,000.00
EUR
Line-by-line
Madrid
ES
3,006.00
EUR
Line-by-line
Salvador
BR
4,096,626.00
BRL
Line-by-line
Buenos Aires
AR
477,139,364.00
ARS
Line-by-line
Parque Eólico Punta de
Teno SA
Santa Cruz de
Tenerife
ES
528,880.00
EUR
Line-by-line
Parque Eólico Sierra del
Madero SA
Madrid
ES
7,193,970.00
EUR
Line-by-line
518
518
Integrated Annual Report 2021
Group %
holding
100.00%
100.00%
100.00%
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
Enel Rinnovabile
SA de Cv
99.00%
Hidroelectricidad
del Pacífico S de
RL de Cv
1.00%
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
México S de RL
de Cv
0.50%
Enel Rinnovabile
SA de Cv
25.00%
25.50%
Enel Green Power
España SLU
80.00%
56.09%
Enel Green Power
España SLU
75.00%
Parque Eólico de
Barbanza SA
0.00%
Enel Green Power
España SLU
50.17%
35.17%
Enel Green Power
España SLU
82.00%
57.49%
Enel Green Power
España SLU
65.67%
Parque Eólico de
Santa Lucía SA
1.00%
Enel Green Power
España SLU
90.00%
63.10%
Enel Green Power
España SLU
75.50%
52.93%
Enel Green Power
España SLU
100.00%
70.11%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
0.00%
82.27%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
España SLU
52.00%
36.46%
Enel Green Power
España SLU
58.00%
40.66%
Parque Eólico de Santa
Lucía SA
Las Palmas de
Gran Canaria
ES
901,500.00
EUR
Line-by-line
46.51%
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Parque Eólico Tico SLU 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
Equity
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 SLU
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
5.00%
82.27%
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
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
78.64%
Enel Green Power
SpA
39.09%
Pastis - Centro
Nazionale per la
ricerca e lo sviluppo
dei materiali SCPA in
liquidation
Brindisi
IT
2,065,000.00
EUR
-
Enel Italia SpA
1.14%
1.14%
Paynesville Solar LLC
Wilmington
US
-
USD
Line-by-line
PayTipper Network Srl
Cascina
PayTipper SpA
Milan
PDP Technologies Ltd
Israel
IT
IT
IL
40,000.00
EUR
3,000,000.00
EUR
1,129,252.00
ILS
AFS
AFS
-
Pegop - Energia
Eléctrica SA
Pego
PT
50,000.00
EUR
Equity
Aurora Distributed
Solar LLC
100.00%
74.13%
PayTipper SpA
100.00%
55.00%
Enel X Srl
55.00%
55.00%
Enel Global
Infrastructure and
Networks Srl
Endesa
Generación
Portugal SA
5.72%
5.72%
0.02%
35.06%
Endesa
Generación SA
49.98%
Enel Green Power
Costa Rica SA
40.31%
PH Chucas SA
San José
CR
100,000.00
CRC
Line-by-line
53.48%
PH Don Pedro SA
San José
CR
100,001.00
CRC
Line-by-line
32.99%
PH Río Volcán SA
San José
CR
100,001.00
CRC
Line-by-line
33.64%
Globyte SA
66.54%
Enel Green Power
Costa Rica SA
34.32%
ESSA2 SpA
24.69%
Enel Green Power
Costa Rica SA
33.44%
Pilesgrove Solar I LLC
Andover
US
1.00
USD
Line-by-line
Globyte SA
65.66%
Brick Road Solar
Holdings LLC
100.00%
100.00%
Attachments
519
519
Pine Island Distributed
Solar LLC
Planta Eólica Europea
SAU
Point Rider Solar
Project LLC
Pomerado Energy
Storage LLC
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Pincher Creek LP
Alberta
CA
-
CAD
Line-by-line
Enel Alberta Wind
Inc.
99.00%
Enel Green Power
Canada Inc.
1.00%
Group %
holding
100.00%
Wilmington
US
-
USD
Line-by-line
Seville
ES
1,198,532.32
EUR
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Enel Green Power
España SLU
100.00%
70.11%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Wilmington
US
1.00
USD
Line-by-line
Potoc Power Park Srl
Bucharest
RO
2,000.00
RON
Line-by-line
PowerCrop
Macchiareddu Srl
Bologna
PowerCrop Russi Srl
Bologna
PowerCrop SpA
(formerly PowerCrop
Srl)
Bologna
IT
IT
IT
100,000.00
EUR
100,000.00
EUR
4,000,000.00
EUR
Prairie Rose
Transmission LLC
Minneapolis
US
-
Prairie Rose Wind LLC
Albany
US
-
USD
USD
AFS
AFS
AFS
Equity
Equity
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
Romania Srl
PowerCrop
SpA (formerly
PowerCrop Srl)
PowerCrop
SpA (formerly
PowerCrop Srl)
100.00%
100.00%
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%
Primavera Energia SA
Niterói
BR
36,965,444.64
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Productive Solar
Systems SLU
Rivas-
Vaciamadrid
ES
3,000.00
Productora de Energías
SA
Barcelona
ES
60,101.22
EUR
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Equity
Enel Green Power
España SLU
30.00%
21.03%
Productora Eléctrica
Urgelense SA
Progreso Solar 20
MW SA
Promociones
Energéticas del Bierzo
SL
Proveedora de
Electricidad de
Occidente S de RL
de Cv
Proyecto Almería
Mediterráneo SA
Proyectos
Universitarios de
Energías Renovables SL
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%
82.27%
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
México S de RL
de Cv
99.99%
99.99%
Madrid
ES
601,000.00
EUR
Equity
Endesa SA
45.00%
31.55%
Alicante
ES
27,000.00
EUR
Equity
Enel Green Power
España SLU
33.33%
23.37%
520
520
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Proyectos y Soluciones
Renovables SAC
San Miguel
PE
1,000.00
PEN
Line-by-line
Enel Green Power
Partecipazioni
Speciali Srl
99.90%
Energía y Servicios
South America
SpA
0.10%
Group %
holding
99.98%
PSG Energy Private
Limited
Hyderabad
PT Enel Green Power
Optima Way Ratai
Jakarta
IN
ID
100,000.00
INR
Line-by-line
10,002,600.00
USD
Line-by-line
Enel Green Power
India Private
Limited
Enel Green Power
SpA
100.00%
100.00%
90.00%
90.00%
Puerto Santa María
Energía I SLU
Puerto Santa María
Energía II SLU
Pulida Energy (RF)
(Pty) Ltd
Pumpkin Vine Wind
Project LLC
Madrid
ES
3,000.00
Madrid
ES
3,000.00
EUR
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Andover
US
-
USD
Line-by-line
Enel Green Power
RSA (Pty) Ltd
52.70%
52.70%
Tradewind Energy
Inc.
100.00%
100.00%
Quatiara Energia SA
Niterói
BR
13,766,118.96
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Queens Energy
Storage LLC
Andover
US
-
Raleigh Solar I LLC
Andover
US
1.00
Ranchland Solar
Project LLC
Ranchland Wind
Holdings LLC
Ranchland Wind
Project II LLC
Ranchland Wind
Project LLC
Ranchland Wind
Storage LLC
Rattlesnake Creek
Holdings LLC
Rausch Creek Wind
Project LLC
Andover
US
1.00
Andover
US
-
Andover
US
1.00
Andover
US
-
Andover
US
-
Delaware
US
1.00
Andover
US
1.00
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings 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
Ranchland Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Rockhaven
Ranchland
Holdings 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
Tradewind Energy
Inc.
100.00%
100.00%
RC Wind Srl
Milan
IT
10,000.00
EUR
-
RE Arroyo LLC
Andover
US
1.00
USD
Line-by-line
Reaktortest SRO
Trnava
SK
66,389.00
EUR
Equity
Enel Green Power
Italia Srl
0.50%
0.50%
Tradewind Energy
Inc.
100.00%
100.00%
Slovenské
elektrárne AS
49.00%
16.17%
Red Centroamericana
de Telecomunicaciones
SA
Panama City
PA
2,700,000.00
USD
-
Enel SpA
11.11%
11.11%
Red Dirt Wind Holdings
I LLC
Dover
US
100.00
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Attachments
521
521
Company name
Headquarters
Country Share capital
Currency
Segment
Red Dirt Wind Holdings
LLC
Wilmington
US
-
Dover
US
1.00
Wilmington
US
1.00
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
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
82,395,000.00
HNL
-
Livister Latam SLU 80.00%
16.48%
Madrid
ES
3,000.00
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
Guatemala SA
0.00%
Guatemala City GT
1,924,465,600.00
GTQ
Line-by-line
82.27%
Red Dirt Wind Project
LLC
Red Fox Wind Project
LLC
Redes y
Telecomunicaciones S
de RL de Cv
Renovables Andorra
SLU
Renovables de
Guatemala SA
Renovables La Pedrera
SLU
Renovables
Manzanares 400 kV SL
Renovables Mediavilla
SLU
Zaragoza
ES
3,000.00
Madrid
ES
5,000.00
Zaragoza
ES
3,000.00
Renovables Teruel SLU Madrid
ES
3,000.00
Riverbend Farms Wind
Project LLC
Andover
US
1.00
EUR
EUR
EUR
EUR
USD
ESSA2 SpA
100.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Equity
Enel Green Power
España SLU
27.86%
19.53%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
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%
Riverview Solar I LLC
Andover
US
1.00
Roadrunner Solar
Project LLC
Andover
US
100.00
Roadrunner Storage
LLC
Andover
US
-
Rochelle Solar LLC
Coral Springs
US
1.00
Rock Creek Wind
Holdings I LLC
Rock Creek Wind
Holdings II LLC
Rock Creek Wind
Holdings LLC
Rock Creek Wind
Project LLC
Dover
US
100.00
Dover
US
100.00
Wilmington
US
-
Clayton
US
1.00
Rockhaven Ranchland
Holdings LLC
Andover
US
1.00
Rockhaven Wind
Project LLC
Andover
US
1.00
522
522
Integrated Annual Report 2021
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Enel Green Power
Canada Inc.
1.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Roadrunner
Solar Project
Holdings 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 Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Rock Creek Wind
Holdings LLC
100.00%
100.00%
Line-by-line
EGPNA Preferred
Wind Holdings
II LLC
100.00%
100.00%
Line-by-line
Rock Creek Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Rockhaven
Ranchland
Holdings LLC
100.00%
100.00%
Consolidation
method
Held by
% holding
Group %
holding
Equity
Enel Kansas LLC
20.00%
20.00%
Company name
Headquarters
Country Share capital
Currency
Segment
Rocky Caney Holdings
LLC
Oklahoma City
US
1.00
Rocky Caney Wind LLC Albany
US
-
Rocky Ridge Wind
Project LLC
Oklahoma City
US
-
USD
USD
USD
Equity
Equity
Rodnikovskaya WPS
Moscow
RU
6,010,000.00
RUB
Line-by-line
Roha Renewables India
Private Limited
Rolling Farms Wind
Project LLC
Gurugram
IN
100,000.00
INR
Line-by-line
Andover
US
1.00
USD
Line-by-line
Rocky Caney
Holdings LLC
100.00%
20.00%
Rocky Caney Wind
LLC
100.00%
20.00%
Enel Green Power
Rus Limited
Liability Company
Enel Green Power
India Private
Limited
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Rusenergosbyt LLC
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
Andover
US
1.00
Ruthton Ridge 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%
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
Empresa
Distribuidora Sur
SA - Edesur
50.00%
29.66%
Saddle House Solar
Project LLC
Andover
US
-
Salmon Falls Hydro LLC Wilmington
US
-
Salt Springs Wind
Project LLC
Andover
US
-
USD
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
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
San Francisco de
Borja SA
San Juan Mesa Wind
Project II LLC
Sanosari Energy Private
Limited
Santo Rostro
Cogeneración SA
Sardhy Green
Hydrogen Srl
Saugus River Energy
Storage LLC
Savanna Power Solar
10 SLU
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
Sarroch
IT
10,000.00
EUR
Equity
Equity
Dover
US
100.00
USD
Line-by-line
Madrid
ES
3,000.00
EUR
Line-by-line
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
66.67%
46.74%
Padoma Wind
Power LLC
Avikiran Energy
India Private
Limited
100.00%
100.00%
100.00%
100.00%
Enel Green Power
España SLU
45.00%
31.55%
Enel Green Power
Italia Srl
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
España SLU
50.00%
50.00%
100.00%
100.00%
100.00%
70.11%
Attachments
523
523
Company name
Headquarters
Country Share capital
Currency
Segment
Savanna Power Solar
12 SLU
Savanna Power Solar
13 SLU
Savanna Power Solar
4 SLU
Savanna Power Solar
5 SLU
Savanna Power Solar
6 SLU
Savanna Power Solar
9 SLU
Seville
ES
3,000.00
Seville
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
Madrid
ES
3,000.00
EUR
EUR
EUR
EUR
EUR
EUR
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Se Služby Inžinierskych
Stavieb SRO
Kalná Nad
Hronom
SK
200,000.00
EUR
Equity
Seguidores Solares
Planta 2 SL (Sociedad
Unipersonal)
Servicio de Operación
y Mantenimiento para
Energías Renovables S
de RL de Cv
Madrid
ES
3,010.00
EUR
Line-by-line
Mexico City
MX
3,000.00
MXN
Line-by-line
Slovenské
elektrárne AS
100.00%
33.00%
Enel Green Power
España SLU
100.00%
70.11%
Enel Green Power
Guatemala SA
0.01%
Energía Nueva
Energía Limpia
México S de RL
de Cv
99.99%
99.99%
Ifx Networks Ltd
0.10%
Servicios de Internet
Eni Chile Ltda
Santiago de
Chile
CL
2,768,688,228.00
CLP
Equity
20.60%
Ifx/eni - Spc IV Inc. 99.90%
Servizio Elettrico
Nazionale SpA
Rome
Setyl Srl
Bergamo
IT
IT
10,000,000.00
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
100,000.00
EUR
Equity
Enel X Italia Srl
27.50%
27.50%
Seven Cowboy Wind
Project Holdings LLC
Seven Cowboy Wind
Project II LLC
Seven Cowboy Wind
Project LLC
Andover
US
1.00
Andover
US
1.00
Andover
US
1.00
Seven Cowboys Solar
Project LLC
Andover
US
-
Shiawassee Wind
Project LLC
Wilmington
US
1.00
Shield Energy Storage
Project LLC
Wilmington
US
-
USD
USD
USD
USD
USD
USD
Shikhar Surya (One)
Private Limited
SIET - Società
Informazioni
Esperienze
Termoidrauliche SpA
Gurugram
IN
10,100,000.00
INR
Line-by-line
Piacenza
IT
697,820.00
EUR
Equity
Silt Solar I LLC
Andover
US
1.00
USD
Line-by-line
524
524
Integrated Annual Report 2021
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Seven Cowboy
Wind Project
Holdings 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 Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
India Private
Limited
100.00%
100.00%
100.00%
100.00%
Enel Innovation
Hubs Srl
41.55%
41.55%
Brick Road Solar
Holdings LLC
100.00%
100.00%
Company name
Headquarters
Country Share capital
Currency
Segment
Silver Dollar Solar
Project LLC
Andover
US
1.00
Sinergia GP6 Srl
Rome
Sinergia GP7 Srl
Rome
IT
IT
10,000.00
10,000.00
USD
EUR
EUR
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Equity
Equity
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
España SLU
28.13%
19.72%
Enel Green Power
España SLU
96.00%
67.31%
Sistema Eléctrico de
Conexión Valcaire SL
Sistemas Energéticos
Mañón Ortigueira SA
Skyview Wind Project
LLC
Sleep Hollow Solar
I LLC
Slovak Power Holding
BV
Slovenské
elektrárne -
Energetické
Služby SRO
Slovenské elektrárne
AS
Slovenské
elektrárne Česká
Republika SRO
Smoky Hill Holdings
II LLC
Madrid
ES
175,200.00
EUR
La Coruña
ES
2,007,750.00
EUR
Line-by-line
Andover
US
1.00
Andover
US
1.00
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Amsterdam
NL
25,010,000.00
EUR
Equity
Bratislava
SK
4,505,000.00
EUR
Equity
Bratislava
SK
1,269,295,724.66
EUR
Moravská
Ostrava
CZ
295,819.00
CZK
Equity
Equity
Enel Produzione
SpA
50.00%
50.00%
Slovenské
elektrárne AS
Slovak Power
Holding BV
Slovenské
elektrárne AS
100.00%
33.00%
66.00%
33.00%
100.00%
33.00%
Wilmington
US
-
Smoky Hills Wind Farm
LLC
Topeka
US
-
Smoky Hills Wind
Project II LLC
Lenexa
US
-
Snyder Wind Farm LLC Hermleigh
US
-
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%
Socibe Energia SA
Niterói
BR
12,969,032.25
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Sociedad Agrícola de
Cameros Ltda
Santiago de
Chile
Sociedad de
Inversiones K Cuatro
SpA
Santiago de
Chile
CL
5,738,046,495.00
CLP
Line-by-line
Enel Chile SA
57.50%
37.33%
CL
316,318,800.00
CLP
-
Enel X Chile SpA
10.00%
6.49%
Sociedad Eólica de
Andalucía SA
Sociedad Eólica El
Puntal SL
Sociedad Eólica Los
Lances SA
Sociedad para el
Desarrollo de Sierra
Morena Cordobesa SA
Sociedad Portuaria
Central Cartagena SA
Seville
ES
4,507,590.78
EUR
Line-by-line
Seville
ES
1,643,000.00
EUR
Equity
Seville
ES
2,404,048.42
EUR
Line-by-line
Cordoba
ES
86,063.20
EUR
-
Enel Green Power
España SLU
64.75%
45.40%
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
60.00%
42.07%
Endesa
Generación SA
1.82%
1.27%
Emgesa SA ESP
94.94%
Bogotá
CO
89,714,600.00
COP
Line-by-line
39.87%
Inversora Codensa
SAS
5.05%
Attachments
525
525
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Trivento
IT
100,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Società Elettrica Trigno
Srl
Soetwater Wind Farm
(RF) (Pty) Ltd
Johannesburg
ZA
1,000.00
Solana Renovables SL Madrid
ES
5,000.00
ZAR
EUR
AFS
Equity
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
55.00%
Enel Green Power
España SLU
49.84%
34.94%
Solas Electricity Srl
Bucharest
RO
740,000.00
RON
Line-by-line
Enel Green Power
Romania Srl
100.00%
100.00%
Soliloquoy Ridge LLC
Minneapolis
US
-
Somersworth Hydro
Company Inc.
Wilmington
US
100.00
USD
USD
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
AFS
Enel Green Power
North America Inc.
100.00%
100.00%
Sona Enerjí
Üretím Anoním
Şírketí
Sonak Solar Project
LLC
Istanbul
TR
50,000.00
TRY
Line-by-line
Andover
US
-
USD
Line-by-line
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Tradewind Energy
Inc.
100.00%
100.00%
100.00%
100.00%
Sotavento Galicia SA
Santiago de
Compostela
ES
601,000.00
EUR
Rome
IT
10,000.00
EUR
South Italy Green
Hydrogen Srl
South Rock Wind
Project LLC
Andover
US
1.00
USD
Line-by-line
South Wind Energy Srl
Bucharest
RO
2,000.00
RON
Line-by-line
Equity
Equity
Enel Green Power
España SLU
36.00%
25.24%
Enel Green Power
Italia Srl
50.00%
50.00%
Tradewind Energy
Inc.
100.00%
100.00%
Enel Green Power
Romania Srl
100.00%
100.00%
Southwest
Transmission LLC
Cedar Bluff
US
-
Spartan Hills LLC
Minneapolis
US
-
USD
USD
Line-by-line
Chi Minnesota
Wind LLC
100.00%
100.00%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
51.00%
Spinazzola SPV Srl
Rome
IT
10,000.00
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Spring Wheat Solar
Project LLC
Stampede Solar
Project LLC
Sterling and Wilson
Enel X e-Mobility
Private Limited
Stillman Valley Solar
LLC
Stillwater Woods Hill
Holdings LLC
Andover
US
1.00
Andover
US
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Mumbai
IN
90,000,000.00
INR
Equity
Enel X
International Srl
50.00%
50.00%
Wilmington
US
-
Wilmington
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%
Stipa Nayaá SA de Cv
Mexico City
MX
1,811,016,348.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
Enel Green Power
Partecipazioni
Speciali Srl
55.21%
40.16%
95.37%
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%
526
526
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Mexico City
MX
1,000.00
MXN
Line-by-line
Enel Green Power
México S de RL
de Cv
0.10%
Enel Rinnovabile
SA de Cv
99.90%
Bryanston
ZA
13,750,000.00
ZAR
Line-by-line
Enel Green Power
RSA (Pty) Ltd
57.00%
57.00%
Andover
US
1.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Group %
holding
100.00%
Paço de Arcos
PT
50,000.00
EUR
Line-by-line
Suministradora de
buses K Cuatro SpA
Santiago de
Chile
CL
14,840,473,200.00
CLP
-
Cadiz
ES
12,020,240.00
EUR
Equity
Endesa
Generación
Portugal SA
Sociedad de
Inversiones K
Cuatro SpA
Endesa Red
SA (Sociedad
Unipersonal)
100.00%
70.11%
99.00%
6.43%
33.50%
23.49%
Barcelona
ES
2,800,000.00
EUR
Line-by-line
Hidroeléctrica de
Catalunya SL
60.00%
42.07%
Suave Energía S de RL
de Cv
Sublunary Trading (RF)
(Pty) Ltd
Sugar Pine Solar
Project LLC
Suggestion Power
(Unipessoal) Ltda
Suministradora
Eléctrica de Cádiz SA
Suministro de Luz y
Fuerza SL
Summit Energy
Storage Inc.
Wilmington
US
1,000.00
Sun River LLC
Bend
US
-
Sundance Wind
Project LLC
Dover
US
100.00
Sunflower Prairie Solar
Project LLC
Andover
US
-
Swather Solar Project
LLC
Sweet Apple Solar
Project LLC
Andover
US
1.00
Andover
US
1.00
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Green Power
North America Inc.
75.00%
75.00%
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%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tae Technologies Inc.
Pauling
US
53,207,936.00
USD
-
Tauste Energía
Distribuida SL
Zaragoza
Tecnatom SA
Madrid
ES
ES
60,508.00
EUR
Line-by-line
4,025,700.00
EUR
Equity
Enel Produzione
SpA
1.12%
Tae Technologies
Inc.
0.00%
1.12%
Enel Green Power
España SLU
51.00%
35.76%
Endesa
Generación SA
45.00%
31.55%
Tecnoguat SA
Guatemala City GT
30,948,000.00
GTQ
Line-by-line
ESSA2 SpA
75.00%
61.70%
Tejo Energia
- Produção e
Distribuição de
Energia Eléctrica
SA
Tenedora de Energía
Renovable Sol y Viento
SAPI de Cv
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%
Teploprogress JSC
Sredneuralsk
RU
128,000,000.00
RUB
Line-by-line
Enel Russia PJSC
60.00%
33.86%
Tera Renewables India
Private Limited
Gurugram
IN
100,000.00
INR
Line-by-line
Enel Green Power
India Private
Limited
100.00%
100.00%
Attachments
527
527
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Termica Colleferro SpA Bologna
IT
6,100,000.00
EUR
Equity
Cogenio Srl
60.00%
12.00%
Termoeléctrica José de
San Martín SA
Buenos Aires
AR
7,078,298.00
ARS
Termoeléctrica Manuel
Belgrano SA
Buenos Aires
AR
7,078,307.00
ARS
-
-
Termotec Energía AIE
in liquidation
La Pobla de
Vallbona
ES
481,000.00
EUR
Equity
Terrer Renovables SL
Madrid
ES
5,000.00
EUR
Equity
Central Dock
Sud SA
0.42%
Enel Generación
Costanera SA
1.68%
4.22%
Enel Generación El
Chocón SA
5.60%
Central Dock
Sud SA
0.47%
Enel Generación
Costanera SA
1.89%
4.71%
Enel Generación El
Chocón SA
6.23%
Enel Green Power
España SLU
45.00%
31.55%
Baylio Solar SLU
11.66%
Dehesa de los
Guadalupes Solar
SLU
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
8.83%
20.73%
9.08%
Testing Stand of
Ivanovskaya GRES JSC
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%
Gurgaon
IN
100,000.00
INR
Line-by-line
Avikiran Surya
India Private
Limited
100.00%
100.00%
Thar Surya 1 Private
Limited
Thunder Ranch Wind
Holdings I LLC
Thunder Ranch Wind
Holdings LLC
Thunder Ranch Wind
Project LLC
Thunderegg Wind
Project LLC
Dover
US
100.00
Wilmington
US
-
Dover
US
1.00
Andover
US
1.00
Tico Solar 1 SLU
Zaragoza
ES
3,000.00
Tico Solar 2 SLU
Zaragoza
ES
3,000.00
USD
USD
USD
USD
EUR
EUR
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
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%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Tobivox (RF) (Pty) Ltd
Johannesburg
ZA
10,000,000.00
ZAR
Line-by-line
Toledo PV AIE
Madrid
ES
26,887.96
EUR
Equity
Toplet Power Park Srl
Bucharest
RO
2,000.00
RON
Line-by-line
Topwind Energy Srl
Bucharest
RO
2,000.00
RON
Line-by-line
Enel Green Power
RSA (Pty) Ltd
60.00%
60.00%
Enel Green Power
España SLU
33.33%
23.37%
Enel Green Power
Romania Srl
100.00%
100.00%
Enel Green Power
Romania Srl
100.00%
100.00%
528
528
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Toro Renovables 400
kV SL
Torrepalma Energy
1 SLU
Madrid
ES
3,000.00
Madrid
ES
3,100.00
EUR
EUR
Consolidation
method
Held by
% holding
Group %
holding
-
FRV Zamora Solar
1 SLU
8.28%
5.81%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Tradewind Energy Inc. Wilmington
US
1,000.00
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Transmisora de Energía
Renovable SA
Guatemala City GT
233,561,800.00
GTQ
Line-by-line
ESSA2 SpA
100.00%
82.27%
Enel Green Power
Guatemala SA
0.00%
Buenos Aires
AR
2,584,473,416.00
ARS
Line-by-line
Enel Brasil SA
60.15%
82.27%
Generadora
Montecristo SA
0.00%
Enel Argentina SA 0.00%
Transportadora de
Energía SA-TESA
Transportes y
Distribuciones
Eléctricas SA in
liquidation
Girona
ES
72,121.45
EUR
Line-by-line
Trévago Renovables SL Madrid
ES
3,000.00
EUR
Equity
Enel CIEN SA
39.85%
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
73.33%
51.42%
Furatena Solar
1 SLU
17.73%
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
Chi Minnesota
Wind LLC
Enel Green Power
Rus Limited
Liability Company
24.89%
17.77%
51.00%
51.00%
100.00%
100.00%
Tsar Nicholas LLC
Minneapolis
US
-
Tula WPS LLC
Tula
RU
-
Line-by-line
Line-by-line
USD
RUB
USD
Tulip Grove Solar
Project LLC
Tunga Renewable
Energy Private Limited
TWE Franklin Solar
Project LLC
Andover
US
-
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Gurugram
IN
19,100,000.00
INR
Line-by-line
Avikiran Energy
India Private
Limited
100.00%
100.00%
Andover
US
-
TWE ROT DA LLC
Andover
US
1.00
Twin Lake Hills LLC
Minneapolis
US
-
Twin Saranac Holdings
LLC
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
Enel X Italia Srl
50.00%
50.00%
Ufinet Argentina SA
Buenos Aires
AR
9,745,583.00
ARS
Equity
20.60%
Ufinet Latam SLU
99.95%
Ufinet Brasil
Participações Ltda
Santo André
BR
120,784,639.00
BRL
Equity
Ufinet Panamá SA 0.05%
Zacapa Topco
II Sàrl
100.00%
50.00%
Attachments
529
529
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Ufinet Brasil SA
Barueri
BR
29,800,000.00
BRL
Equity
Ufinet Brasil
Telecomunicação
Ltda
60.00%
30.00%
Ufinet Brasil
Participações Ltda
100.00%
Ufinet Brasil
Telecomunicação Ltda
Santo André
BR
120,784,638.00
BRL
Equity
50.00%
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
Participaciones SAS
Bogotá
CO
10,001,001,000.00
COP
Equity
Ufinet Latam SLU
100.00%
20.60%
Ufinet Guatemala
SA
0.00%
Ufinet Honduras
SA
0.00%
Ufinet Colombia SA
Bogotá
CO
1,180,000,000.00
COP
Equity
18.54%
Ufinet Latam SLU
90.00%
Ufinet Panamá SA 0.00%
Ufinet Costa Rica SA
San José
CR
25,000.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Ufinet Ecuador Ufiec
SA
Ufinet El Salvador SA
de Cv
Ufinet FTTH Guatemala
Ltda
Quito
EC
9,865,110.00
USD
Equity
20.60%
Ufinet Guatemala
SA
0.00%
San Salvador
SV
10,000.00
USD
Equity
20.60%
Ufinet Latam SLU
99.99%
Guatemala City GT
50,000.00
GTQ
-
Ufinet Latam SLU
51.00%
10.51%
Ufinet Latam SLU
100.00%
Ufinet Guatemala
SA
0.01%
Ufinet Guatemala SA
Guatemala City GT
3,000,000.00
GTQ
Equity
20.60%
Ufinet Latam SLU
99.99%
Ufinet Panamá SA 0.01%
Ufinet Latam SLU
99.99%
Ufinet Honduras SA
Tegucigalpa
HN
194,520.00
HNL
Equity
20.60%
Ufinet Panamá SA 0.01%
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
20.60%
Ufinet Guatemala
SA
1.31%
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%
530
530
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Ufinet Panamá SA
Panama City
PA
1,275,000.00
USD
Equity
Ufinet Latam SLU
100.00%
20.60%
Ufinet Paraguay SA
Asunción
PY
79,488,240,000.00
PYG
Equity
Ufinet Latam SLU
75.00%
15.45%
Ufinet Perú SAC
Lima
PE
2,836,474.00
PEN
Equity
20.60%
Ufinet Latam SLU
100.00%
Ufinet Panamá SA 0.00%
Ufinet US LLC
Wilmington
US
1,000.00
Ukuqala Solar
Proprietary Limited
Johannesburg
ZA
1,000.00
USD
ZAR
Equity
Ufinet Latam SLU
100.00%
20.60%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
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
Endesa
Generación SA
100.00%
70.11%
Enel Green Power
RSA (Pty) Ltd
100.00%
100.00%
USME ZE SAS
Bogotá
CO
104,872,000.00
COP
Line-by-line
Bogotá ZE SAS
100.00%
39.74%
Ustav Jaderného
Výzkumu Rez AS
Řež
CZ
524,139,000.00
CZK
Equity
Valdecaballero Solar SL Madrid
ES
3,000.00
EUR
Line-by-line
Gurugram
IN
30,000,000.00
INR
Line-by-line
Slovenské
elektrárne AS
27.77%
9.17%
Enel Green Power
España SLU
Enel Green Power
India Private
Limited
100.00%
70.11%
100.00%
100.00%
Istanbul
TR
3,500,000.00
TRY
AFS
Enel SpA
100.00%
100.00%
Rio de Janeiro
BR
7,315,000.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
4,727,414.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
1,754,031.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
10,188,722.00
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Mexico City
MX
1,455,854,094.00
MXN
Equity
Mexico City
MX
205,316,027.15
MXN
Equity
Viruleiros SL
Santiago de
Compostela
ES
160,000.00
EUR
Line-by-line
Viva Labs AS
Oslo
NO
104,724.90
NOK
Line-by-line
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Tenedora de
Energía Renovable
Sol y Viento SAPI
de Cv
Enel Green Power
España SLU
60.80%
20.00%
60.80%
20.00%
67.00%
46.97%
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%
Attachments
531
531
Vayu (Project 1) Private
Limited
Vektör Enerjí
Üretím Anoním
Şírketí
Ventos de Santa
Ângela Energias
Renováveis SA
Ventos de Santa
Esperança Energias
Renováveis SA
Ventos de Santo
Orestes Energias
Renováveis SA
Ventos de São Roque
Energias Renováveis SA
Vientos del Altiplano
SA de Cv
Villanueva Solar SA
de Cv
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Waypost Solar Project
LLC
Weber Energy Storage
Project LLC
Andover
US
1.00
USD
Line-by-line
Wilmington
US
-
USD
Line-by-line
Wespire Inc.
Boston
US
1,625,000.00
USD
-
Tradewind Energy
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel X North
America Inc.
100.00%
100.00%
100.00%
100.00%
11.21%
11.21%
West Faribault Solar
LLC
Wilmington
US
-
West Hopkinton Hydro
LLC
Wilmington
US
-
West Waconia Solar
LLC
Western New York
Wind Corporation
Wharton-El Campo
Solar Project LLC
White Cloud Wind
Holdings LLC
White Cloud Wind
Project LLC
White Peaks Wind
Project LLC
Whitetail Trails Solar
Project LLC
Whitney Hill Wind
Power Holdings LLC
Whitney Hill Wind
Power LLC
Whittle’s Ferry Solar
Project LLC
Wilmington
US
-
Albany
US
300.00
Andover
US
1.00
Andover
US
-
Andover
US
1.00
Andover
US
1.00
Andover
US
-
Andover
US
99.00
Andover
US
-
Andover
US
1.00
USD
USD
USD
USD
USD
USD
USD
USD
USD
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%
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
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%
Line-by-line
Enel Kansas 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
Wilderness Range
Solar Project LLC
Andover
US
1.00
Andover
US
-
Wind Belt Transco LLC Andover
US
1.00
USD
USD
USD
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.
100.00%
100.00%
Wind Energy Green
Park Srl
Wind Parks Anatolis -
Prinias Single Member
SA
Bucharest
RO
2,000.00
RON
Line-by-line
Maroussi
GR
15,803,388.00
EUR
Line-by-line
Wind Parks Bolibas SA Maroussi
GR
551,500.00
EUR
Equity
Enel Green Power
Romania Srl
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%
532
532
Integrated Annual Report 2021
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Wind Parks Distomos
SA
Maroussi
GR
556,500.00
EUR
Wind Parks Folia SA
Maroussi
GR
424,000.00
EUR
Wind Parks Gagari SA Maroussi
GR
389,000.00
EUR
Wind Parks Goraki SA Maroussi
GR
551,500.00
EUR
Wind Parks Gourles SA Maroussi
GR
555,000.00
EUR
Wind Parks Kafoutsi SA Maroussi
GR
551,500.00
EUR
Equity
Equity
Equity
Equity
Equity
Equity
Wind Parks Katharas
Single Member SA
Wind Parks Kerasias
Single Member SA
Wind Parks Milias
Single Member SA
Wind Parks Mitikas
Single Member SA
Maroussi
GR
19,932,048.00
EUR
Line-by-line
Maroussi
GR
26,107,790.00
EUR
Line-by-line
Maroussi
GR
19,909,374.00
EUR
Line-by-line
Maroussi
GR
22,268,039.00
EUR
Line-by-line
Wind Parks Petalo SA
Maroussi
GR
575,000.00
EUR
Equity
Wind Parks Platanos
Single Member SA
Maroussi
GR
13,342,867.00
EUR
Line-by-line
Wind Parks Skoubi SA Maroussi
GR
472,000.00
EUR
Equity
Wind Parks Spilias
Single Member SA
Wind Parks
Strouboulas SA
Maroussi
GR
28,267,490.00
EUR
Line-by-line
Maroussi
GR
576,500.00
EUR
Wind Parks Vitalio SA
Maroussi
GR
361,000.00
EUR
Wind Parks Vourlas SA Maroussi
GR
554,000.00
EUR
Equity
Equity
Equity
Winter’s Spawn LLC
Minneapolis
US
-
USD
Line-by-line
Wkn Basilicata
Development PE1 Srl
Rome
IT
10,000.00
EUR
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
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 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%
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%
Enel Green Power
Italia Srl
100.00%
100.00%
Woods Hill Solar LLC
Wilmington
US
-
Xaloc Solar SLU
Valencia
ES
3,000.00
X-bus Italia Srl
Milan
IT
15,000.00
USD
EUR
EUR
Line-by-line
Stillwater Woods
Hill Holdings LLC
100.00%
100.00%
Line-by-line
Enel Green Power
España SLU
100.00%
70.11%
Equity
Enel X Italia Srl
20.00%
20.00%
Attachments
533
533
Company name
Headquarters
Country Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Yacylec SA
Buenos Aires
AR
20,000,000.00
ARS
Equity
Enel Américas SA 33.33%
27.42%
Yedesa-Cogeneración
SA
Almería
ES
234,394.72
EUR
Equity
Enel Green Power
España SLU
40.00%
28.04%
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 Topco Sàrl 100.00%
20.60%
Zacapa Sàrl
Luxembourg
LU
82,866,475.04
USD
Zacapa Topco II Sàrl
Luxembourg
LU
12,000.00
EUR
Zacapa Topco Sàrl
Luxembourg
LU
30,000,000.00
EUR
Equity
Equity
Equity
Zephir 3 Constanta Srl
Bucharest
RO
1,031,260.00
RON
Line-by-line
Zoo Solar Project LLC
Andover
US
-
USD
Line-by-line
Zacapa HoldCo
Sàrl
Enel X
International Srl
Enel X
International Srl
100.00%
20.60%
50.00%
50.00%
20.60%
20.60%
Enel Green Power
Romania Srl
100.00%
100.00%
Tradewind Energy
Inc.
100.00%
100.00%
534
534
Integrated Annual Report 2021
Concept design and realization
Gpt Group
Copy editing
postScriptum di Paola Urbani
Publication not for sale
Edited by
Enel Communications
Disclaimer
This Report issued in Italian has been translated into
English solely for the convenience of international readers
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